STOCK MARKET WATCH, Wednesday 7 June

[ozymandius]

Wednesday June 7, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 959 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1992 DAYS
WHERE'S OSAMA BIN-LADEN? 1692 DAYS
DAYS SINCE ENRON COLLAPSE = 1653
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 6
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON June 6, 2006

Dow... 11,002.14 -46.58 (-0.42%)
Nasdaq... 2,162.78 -6.84 (-0.32%)
S&P 500... 1,263.85 -1.44 (-0.11%)
Gold future... 634.70 -14.00 (-2.21%)
30-Year Bond 5.08% -0.04 (-0.72%)
10-Yr Bond... 5.01% -0.02 (-0.40%)






GOLD, EURO, YEN, Loonie and Silver


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Ike Iossif - WEEKLY CHARTS

Summary

Last week we said, "On Wednesday we pointed out that the major indices had formed the type price pattern which 3 out of 4 times results into a sharp rally within 1-2 trading days. Between Thursday and Friday the SP rallied 35 points (2.8%) from its lows, the Dow rallied 250 points (2.3%) from its lows, and NASDAQ rallied 75 points (3.5%) from its lows. The obvious question in everybody's mind is whether last Thursday the indices put in an intermediate term low, and are they on their way to new highs. Everything is possible, however, in this business we base our decisions, not upon what is possible, but upon what is most probable. "V" bottoms are quite rare; 80% of the time the markets--even if they do not violate the lows for the move--go through a "bottoming process" which involves "backing and filling" and also time.

This week, all of the indicators we follow are at the top of their range, and they have stalled. Moreover, price is close to resistance, which explains the pullback of the last two days. The magnitude of the pullback will tell us whether this is the last pullback before a multi-week advance lasting for the better part of summer, or whether last week's advance was the last chance to get out! Also please read: Market Timing.

http://www.financialsense.com/Market/wrapup.htm

[54anickel]

41. Ozy, I caught one of the talking heads this A.M. I think she was on GMA

She said that we normally have a "healthy" correction of about 10% every 200 days or so and it's been over 800 days since the last one. Looking at the 5 year chart on the DOW it's been even longer than that - but who am I to argue. http://finance.yahoo.com/q/bc?s=%5EDJI&t=5y

The last "correction" was in early '03, then it just went up to that 10,000-10,500 range heading into the '04 elections and the 200-day MA was stuck there (until recently as we head into the '06 elections). I'm wondering, are we seeing a pump for the elections or, more probable, a pump so that when the "healthy" correction is finally allowed to hit, they can level out in the 9K range?

Just seems they are juggling too many balls. The dollar is trash and they need to talk interest rates up to attract any buyers (like that's really going to help in the end). P/Es are pretty damned high as are corporate profits, then there's the strange drop in gold just as inflation expectations are growing. Is there some funny business going on with gold or is gold saying the Fed has overshot again? My bet is on the funny business - there's just too much damned liquidity and funny money still sloshing around the globe.

Seems to me one ball is going to have to be sacrificed and my bet is that they will do anything to protect the buck at this point. Perhaps this past quarter's pump in the stocks was to buy them some breathing room. Toss that ball a bit higher in the air so you have more time before you have to catch it again? :shrug:

[ozymandius]

2. Today's Reports

10:30 AM Crude Inventories 06/02
Briefing Forecast NA
Market Expects NA
Prior 1599K

3:00 PM Consumer Credit Apr
Briefing Forecast $4.0B
Market Expects $3.5B
Prior $2.5B

[stop the bleeding]

48. Any word yet on the Crude Inv report due out at 10:30?? n/t

[UpInArms]

51. DOE Petroleum Inventories Report

10:34 AM ET 6/7/06 CRUDE SUPPLIES UP 1.1M BARRELS IN LATEST WEEK: ENERGY DEPT

10:35 AM ET 6/7/06 GASOLINE SUPPLIES UP 1M BARRELS IN LATEST WEEK: ENERGY DEPT

10:35 AM ET 6/7/06 DISTILLATES UP 1.8M BARRELS IN LATEST WEEK: ENERGY DEPT

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD80018C9%2D9A66%2D4E43%2DA8E5%2D401D941CE1D5%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Crude inventories rose by 1.1 million barrels in the week ending June 2, putting them well above the upper end of the average range for this time of year, the Energy Department said Wednesday. Gasoline supplies rose by 1 million barrels and remain in the lower half of the average range. Distillates, which include heating oil and jet fuel, rose by 1.8 million barrels and are now slightly above the upper end of their average range. Oil futures were last down $1.40 at $71.10 a barrel.

[UpInArms]

78. U.S. April consumer credit rises $10.6 billion, or 5.9%

3:00 PM ET 6/7/06 U.S. APRIL NONREVOLVING CREDIT RISES $7.6 BILLION, OR 6.7%

3:00 PM ET 6/7/06 U.S. APRIL REVOLVING CREDIT RISES $3 BILLION, OR 4.5%

3:00 PM ET 6/7/06 U.S. APRIL CONSUMER CREDIT ABOVE EXPECTATIONS

3:00 PM ET 6/7/06 U.S. APRIL CONSUMER CREDIT RISES $10.6 BILLION, OR 5.9%

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B9BC615F2%2D323C%2D4DEB%2D9D55%2D650059B1B672%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- U.S. consumers took on an extra $10.6 billion in debt in April, the most in 10 months, the Federal Reserve reported Wednesday. Total outstanding consumer credit in April rose by 5.9% to $2.170 trillion, the Fed said. Revolving debt like that on credit cards rose by $3 billion, the most in seven months, the Fed said. Nonrevolving debt like automobile loans, meanwhile, rose by $7.6 billion, or 6.7%. The consumer credit figure was far above expectations. Analysts surveyed by MarketWatch were expecting consumer credit to rise by $3.9 billion.

Looks like there was a party - will there be a hangover?

[UpInArms]

83. Watch Out for Falling Revisions: March rev'd lower - to $1.4B vs $2.52B

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B594AC9F0%2D46D4%2D43D3%2D9CA6%2D90C3E2E40DF4%7D&symbol=

excerpt:

March's total consumer credit was revised lower, rising by $1.4 billion versus a previously estimated $2.52 billion.

So, whatathink? April will actually be? :eyes:

[ozymandius]

3. Oil prices fall in response from Iran

SINGAPORE - Oil prices fell Wednesday on signs Iran was responding somewhat positively to a package of incentives by world powers hoping to curb its nuclear program.

But uncertainty over the outlook will keep a floor under oil prices, analysts said.

"These geopolitical concerns are going to drive a lot of the movements on the short-term basis," said Lorraine Tan, director of research at Standard & Poor's Investment Services in Singapore.

Tan estimated that prices still included a risk premium of about $15 per barrel.

more

[ozymandius]

4. Militants attack Nigerian oil facility, kidnap 5

PORT HARCOURT, Nigeria (Reuters) - Militants attacked a Shell-operated oil facility in the Niger Delta on Wednesday, setting a house boat on fire and kidnapping five South Korean contractors, authorities said.

The attack comes on the heels of the abduction of eight foreign oil workers last Friday, who were released on Sunday, and amid rising militancy across Nigeria's southern oil heartland.

A coalition of three militant groups calling itself the Joint Revolutionary Council said in an emailed statement that it had taken five workers hostage, sunk a naval gunboat and destroyed a drilling rig and a naval houseboat.

more

[stop the bleeding]

29. Looks like Greenspan is opening his pie-hole

stress on oil supplies = drag on the economy = my prediction a down market today. ;)

[abelenkpe]

53. really?

'Cause it seems lately that our markets go up or hover at their last postion whenever I see the markets in europe in the green. Is that not always the case? All the big losses seem to coincide with theirs too...

[Ghost Dog]

57. Recovery fades across Europe’s bourses

http://news.ft.com/cms/s/41cff052-f5f2-11da-b09f-0000779e2340.html
Published: June 7 2006 07:53 | Last updated: June 7 2006 10:00

European equity markets went into decline by mid-morning on Wednesday as an early M&A inspired recovery evaporated. Concerns over interest rate moves on both sides of the Atlantic continued to hurt sentiment and following a sharp decline in Eurozone bourses on Tuesday, a clear shift towards defensive sectors was evident with food producers, tobacco, utilities and beverages sectors making small gains while telecoms, engineers and miners declined.

The FTSE Eurofirst 300 fell 2.8 points or 0.2 per cent at 1,277.74 while the Xetra Dax declined 9.1 points or 0.2 per cent lower at 5,502.81 and the French CAC 40 fell 14.4 points or 0.3 per cent at 4,783.48.

On Tuesday, the FTSE Eurofirst 300 index fell 1.9 per cent, to 1,280.55 in a broad based retreat with all sectors falling on the day. Both the German Xetra Dax and the CAC in Paris both dropped more than 2 per cent.

/(recovered some, later(will report))...

[Ghost Dog]

58. IMF warns on risks of big eurozone rate rises

http://news.ft.com/cms/s/94451e96-f57c-11da-bcae-0000779e2340.html

ecb eurozoneEurozone economic conditions are not yet strong enough to justify substantial interest rate rises, the European Central Bank has been warned just hours before it decides how much further to raise borrowing costs.

A limited rise in borrowing costs “appears warranted”, the International Monetary Fund concluded in its latest report on the 12-country eurozone. “However, the conditions for continued and thus more substantial tightening do not seem to be in place.”

The IMF report was presented on Tuesday night to a eurozone finance ministers’ meeting in Luxembourg, and came as the ECB prepared for its monthly interest rate setting meeting tomorrow.

The ECB, which raised rates by a quarter percentage point in December and March, is expected to raise its main rate by a quarter point to 2.75 per cent, but has kept open the option of a larger-than-usual half point rise.

Buoyant economic indicators in the past few weeks, especially strong credit growth, might persuade some ECB governing council members to push for a larger rise in borrowing costs.

However the IMF said headline eurozone inflation was expected to fall in 2008, back below the 2 per cent level where it would be consistent with the ECB’s definition of price stability.

/...

[abelenkpe]

89. Are we teetering near the edge?

perhaps I worry too much, but it seems like markets everywhere are on the road to some serious danger. I'm too young to think this is going to have a lasting effect in my lifetime, but I worry that it will really hurt for those that are a bit further along in life. Or am I from a generation suffering from a doom complex?
I thought the market would end up slightly, but already it's headed down.

I wish I could go back to Europe and work. But there is a much larger chance I'll be sent to India. I don't suppose their market is any better? Anyone know?

[UpInArms]

80. Crude closes @ $70.82 bbl

2:55 PM ET 6/7/06 CRUDE-OIL FUTURES CLOSE DOWN $1.68 AT $70.82 A BARREL

[ozymandius]

5. Japan stocks fall to lowest in 6 months

TOKYO - Japanese stocks dropped to their lowest level in six months Wednesday amid anxiety over declines on Wall Street and the arrest this week of a high profile fund manager accused of insider trading.

The benchmark Nikkei 225 index shed 288.85 points, or 1.88 percent, to finish at 15,096.01 points on the Tokyo Stock Exchange — the index's lowest close since Nov. 30. The index has fallen 4.4 percent over the last three days.

The overnight drop in U.S. stocks and worries that possible hikes in U.S. interest rates might slow global growth dampened sentiment in Tokyo, where investors were still jittery over Monday's arrest of Yoshiaki Murakami, head of investment fund MAC Asset Management.

"We have apprehension over the U.S. economy and the arrest of Mr. Murakami combining to make fund managers wary about when to call a bottom to this fall," said Hitoshi Yamamoto president of Commerz International Capital Management.

more

[Ghost Dog]

39. Japan tightens investment laws after scandals

http://asia.news.yahoo.com/060607/afp/060607062727business.html

TOKYO (AFP) - Reeling from a string of financial scandals, Japan has enacted new laws aimed at tightening regulation of investment funds and financial markets.

The new rules call for harsher penalties for insider trading, accounting fraud and other financial misdeeds.

The move comes amid growing concerns about the conduct of a new breed of aggressive investors.

Prosecutors arrested Japan's best-known fund manager this week for alleged insider trading while executives at the scandal-tainted Livedoor Internet firm have been indicted for financial fraud.

Under the new rules, which will replace the existing securities and exchange law, the maximum penalty for market manipulation and accounting fraud will be doubled to 10 years in prison or a fine of 10 million yen (88,385 dollars).

/more...

[Ghost Dog]

40. JGBs bounce back as share prices take a beating

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060607:MTFH06166_2006-06-07_07-26-04_T217438&type=comktNews&rpc=44

TOKYO, June 7 (Reuters) - Key 10-year Japanese government bond futures rose sharply on Wednesday and recouped much of the previous session's big losses, buoyed by a slide in share prices that raised some doubts about the economy's outlook.

JGB futures, which have been whipped around by moves in U.S. Treasuries in recent sessions, were also helped by firmness in longer-term U.S. Treasuries overnight as well as buy-backs ahead of a looming shift in the lead contract, traders said.

A focal point in coming sessions will be whether share prices can claw back from recent falls, or if their weakness will persist -- a development that may prompt market players to scale back expectations for interest rate rises by the Bank of Japan.

Kenro Kawano, a fixed income strategist at Credit Suisse, said while expectations are still strong that the Bank of Japan will lift interest rates from around zero as early as July, the weakness in share prices may cause a change in the market's view on the possible pace of subsequent interest rate rises.

"Up to now there have been expectations the BOJ may raise interest rates again (after July) later this year, and possibly once more by the end of the fiscal year. But I think such perceptions may be starting to change," Kawano said.

June 10-year JGB futures <2JGBv1> rose to as high as 133.49 during the session and ended up 0.57 point at 133.41, a day after posting a 0.67-point fall.

The benchmark 10-year yield <JP10YTN=JBTC> fell to 1.875 percent, down from 1.920 percent late on Tuesday.

/more...

[Ghost Dog]

42. HK shares track Nikkei fall, properties hit

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060607:MTFH07090_2006-06-07_08-11-59_HFB077419&type=comktNews&rpc=44

HONG KONG, June 7 (Reuters) - Hong Kong stocks fell 0.98 percent on Wednesday after Tokyo's Nikkei index <.N225> sank to its lowest close since last November and as rate fears weighed on property shares like Hang Lung Properties Ltd. (0101.HK: Quote, Profile, Research).

The benchmark Hang Seng index <.HSI> ended at 15,816.55.

/some more...

[Ghost Dog]

52. HK forex reserves at US$126.5 bln at end-May - HKMA

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060607:MTFH07509_2006-06-07_08-33-30_HKU000530&type=comktNews&rpc=44

HONG KONG, June 7 (Reuters) - Hong Kong's official foreign currency reserve assets stood at US$126.5 billion at end-May, the Hong Kong Monetary Authority said on Wednesday, down 0.39 percent from US$127.0 billion at the end of April.

Hong Kong, whose currency is linked to the U.S. dollar, ranks as the world's eighth largest holder of foreign currency reserves after mainland China, Japan, Taiwan, Russia, Korea, India and Singapore.

/that's all, folks...

[Ghost Dog]

44. Taiwan dollar declines on rate outlook, stocks

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060607:MTFH07093_2006-06-07_08-12-14_TP198607&type=comktNews&rpc=44

TAIPEI, June 7 (Reuters) - The Taiwan dollar <TWD=TP> fell on Wednesday on increased expectations of a U.S. interest rate rise this month, which boosted the U.S. dollar against major currencies, and foreign fund outflows, dealers said.

Taiwan's currency ended weaker at T$32.220 to the U.S. dollar from Tuesday's close of T$32.062, as a fall in the stock market also hurt sentiment. Volume rose to US$1.155 billion from US$798 million a day earlier.

<snip>

Taiwan's stocks <.TWII> fell 1.75 percent as fears of more U.S. interest rate rises and a political crisis involving President Chen Shui-bian's family members hurt tech shares.

"Foreign fund outflows are also pressuring the local currency," said another dealer in Taipei.

On Wednesday, foreign institutions sold a net T$7.82 billion (US$243 million) of Taiwan's shares.

On the smaller Cosmos exchange, the Taiwan dollar weakened to T$32.220 to the U.S. dollar from Tuesday's close of T$32.064.

/...

[Ghost Dog]

46. Emerging Asia FX-Extend declines as Fed seen raising rates

http://asia.news.yahoo.com/060607/3/2ll7n.html

SINGAPORE, June 7 (Reuters) - Asian currencies fell for the second straight day on Wednesday as traders factored in a higher chance for a U.S. rate increase this month following hawkish comments by Federal Reserve officials.

Analysts said Fed Chairman Ben Bernanke's speech on Monday, when he cautioned against relaxing the central bank's vigil against inflationary pressures despite slowing U.S. growth, pointed to another rate increase, bolstering the dollar.

U.S. interest rate futures have indicated a stronger case for a rate rise this week, while stocks on Wall Street and Asia have plunged following comments by Bernanke and by other Fed officials on Tuesday as investors worried that higher rates could crimp growth in coming quarters.

"We got a bit more clarity on the Fed front after Bernanke's speech. That's why the dollar has strengthened," said Thomas Lam, treasury economist at United Overseas Bank in Singapore.

"The risks are definitely skewed towards a 25 basis point increase in June."

The South Korean won lost as much as three-quarters of a percent to 950.0 per dollar after local financial markets reopened following a holiday on Tuesday.

The Singapore dollar fell as much as half a percent to 1.5856 per dollar and the Malaysian ringgit fell to a six-week low of 3.6590 per dollar.

The Philippine peso traded as low as 52.95 per dollar, close to last week's four-month low of 52.98 while the Indonesian rupiah fell to a two-week low of 9,400 per dollar.

Rising benchmark U.S. rates -- 16 quarter-point rises since 2004 to 5.0 percent -- have been one of the key factors behind the dollar's revival against Asian currencies since 2005.

Higher U.S. rates made U.S. short-term deposits more attractive compared with riskier emerging market assets at a time when many of these markets started looking frothy to investors.

Morgan Stanley economist Andy Xie said in a note financial markets may be entering a bear phase as central banks are likely to raise rates higher than expected because inflation is likely to surprise on the upside in the United States and OECD nations.

/more...

[Ghost Dog]

47. Thailand raises rates 25 bps to 5.0 pct

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060607:MTFH07284_2006-06-07_08-23-09_BKK42024&type=comktNews&rpc=44

BANGKOK, June 7 (Reuters) - Thailand's central bank raised its policy rate by 25 basis points to 5.0 percent on Wednesday, the highest in more than seven years, but suggested it would be the last if inflation did not exceed expectations later in 2006.

It was the 13th time the Bank of Thailand (BOT) had raised rates since embarking on a tightening campaign in August 2004, largely to combat the impact on inflation of rising global oil prices, a factor it cited again.

Seven of 11 analysts in a Reuters poll last week had expected the BOT to raise rates following stronger-than-expected headline inflation in May. Four had predicted rates would be put on hold.

The annual headline inflation rate rose to 6.2 percent in May, matching a seven-year high hit in October and topping expectations of 6.0 percent.

But core inflation, which excludes energy and fresh food prices, eased to an annual 2.7 percent rate in May from 2.9 percent in April, keeping it under the central bank's target of 3.5 percent.

"With the oil prices surging more than expected and causing inflation to clearly accelerate beyond the MPC's previous projections, there continued to be a need to maintain the tightening policy stance at this time," the central bank said.

/more...

[Ghost Dog]

49. Turkish markets firm, rate rise anticipated

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060607:MTFH07434_2006-06-07_08-30-20_L07607489&type=comktNews&rpc=44

ISTANBUL, June 7 (Reuters) - The Turkish lira extended its recent recovery on Wednesday, while bonds and shares were also firmer as investors expected the central bank to raise interest rates at an extraordinary meeting later in the day.

The bank's monetary policy committee (MPC) meets later on Wednesday and is scheduled to announce its rates decision between 5 pm and 7 pm (1400-1600 GMT) along with a statement on the MPC's findings.

The decision to hold the meeting was triggered by two months of inflation data sharply higher than expected and a resulting slide in Turkish financial markets. Economists now expect a firm message on inflation and a rate hike of some 50 basis points.

The lira <IYIX=> strengthened to 1.5480 against the dollar in the interbank market by 0810 GMT after firming 1.1 percent on Tuesday to close at 1.5585.

Dealers said the lira, which has lost some 15 percent of its value since the end of April, was supported by dollar sales by state banking fund TMSF after the sale of assets which it held.

"The TMSF foreign currency sales and the expectation that these sales will continue has reined the dollar in somewhat but there will be limited moves in bond rates ahead of the MPC meeting," said a bond dealer at one foreign bank.

May consumer price inflation (CPI) data on Friday came in at almost 10 percent, triggering a slide in the Turkish currency as far as 1.6220 against the dollar, its weakest in three years.

/...

[Ghost Dog]

55. S.Korea bonds fall on caution ahead of rate meeting

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060607:MTFH07626_2006-06-07_08-40-27_SEO140433&type=comktNews&rpc=44

SEOUL, June 7 (Reuters) - South Korean government bond prices fell on Wednesday, as caution prevailed after comments from Federal Reserve members raised prospects of more U.S. interest hikes and before the Bank of Korea's rate review on Thursday.

A sharp fall in domestic stock markets failed to boost bond investor sentiment, traders said.

A research arm of the Bank of Korea said on Wednesday it was desirable for authorities to control liquidity to stabilise the real estate market, as well as enforce tough administrative regulations. See

Six out of 10 economists surveyed by Reuters early this week forecast the central bank was unlikely to raise the policy rate target of 4 percent at its meeting on Thursday. Four predicted a rise.

"A rate hike cannot be ruled out yet, so some investors sold bonds to book profits," said a trader at a local futures company.

The yield on five-year treasury bonds <KR5YT=RR> <0#KRBMK=> rose three basis points to close at 4.93 percent. The three-year treasury bond yield <KR3YT=RR> also climbed three basis points to end at 4.77 percent.

/...

[Ghost Dog]

56. China shares suffer biggest loss in four years

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060607:MTFH07689_2006-06-07_08-43-52_SHA259309&type=comktNews&rpc=44
Wed Jun 7, 2006 4:44am ET

.

© Reuters 2006. All Rights Reserved.

No text... :eyes:

[ozymandius]

6. Bernanke comments, oil pressure metals

NEW YORK - Comments on inflation from Federal Reserve Chief Ben Bernanke and a more conciliatory tone from Iran on its nuclear program combined to send gold and other precious metals sharply lower in New York Tuesday, traders and analysts said.

August gold lost $14 to $634.70 an ounce on the New York Mercantile Exchange. July silver lost 45 cents to $11.845 an ounce.

"The market is finally listening to what the Fed governors are saying — that interest rates are going to go higher," said Leonard Kaplan, president of Prospector Asset Management.

Much of the selling came in the form of long liquidation by large funds, said Kaplan.

more

[ozymandius]

7. Recovery fades across Europe's bourses

European equity markets went into decline by mid-morning on Wednesday as an early M&A inspired recovery evaporated. Concerns over interest rate moves on both sides of the Atlantic continued to hurt sentiment and following a sharp decline in Eurozone bourses on Tuesday, a clear shift towards defensive sectors was evident with food producers, tobacco, utilities and beverages sectors making small gains while telecoms, engineers and miners declined.

The FTSE Eurofirst 300 fell 2.8 points or 0.2 per cent at 1,277.74 while the Xetra Dax declined 9.1 points or 0.2 per cent lower at 5,502.81 and the French CAC 40 fell 14.4 points or 0.3 per cent at 4,783.48.

On Tuesday, the FTSE Eurofirst 300 index fell 1.9 per cent, to 1,280.55 in a broad based retreat with all sectors falling on the day. Both the German Xetra Dax and the CAC in Paris both dropped more than 2 per cent.

more

[ozymandius]

8. Fed comes under fresh rates pressure

Susan Bies, Federal Reserve board governor, on Tuesday joined a chorus of central bank officials expressing concern over rising inflationary pressures.

"We're in a period of transition, and transition means we don't exactly know where we are going to stop," the governor said. She added that a rise above 2 per cent in the core rate of inflation - excluding food and energy - made her "uncomfortable".

Financial markets, meanwhile, appeared to give a vote of confidence to Ben Bernanke's inflation-fighting credentials a day after the Fed chairman issued a stern warning over the recent rise in price pressures.

The dollar and bond yields both rose and equities fell as traders digested Mr Bernanke's comment on Monday that the inflation rate was now at the upper end of the range consistent with price stability.

more

[ozymandius]

9. Chirac wades into the battle for Euronext

Jacques Chirac waded into the battle for Euronext on Tuesday by saying a "Franco-German solution" with Deutsche Börse would be better than the recently agreed merger between the Paris-based stock exchange operator and the New York Stock Exchange.

The French president's comments come amid growing anxiety about the $10bn takeover among Euronext's large shareholders and users in Paris, and could encourage Deutsche Börse, the NYSE's German rival, to counter-bid. Some Euronext shareholders have already criticised the "sudden rush" to cement the deal with NYSE.

France has no veto over a merger by Euronext, a Netherlands-based company operating the Paris, Amsterdam, Brussels and Lisbon bourses and London's Liffe futures market. However, political opposition could create headaches for the heavily regulated stock exchange operator.

-cut-

The NYSE-Euronext deal is conditional on the AMF, France's market watchdog, signing an agreement with other European regulators and the US Securities and Exchange Commission, outlining the rules for regulating the new group.

http://msnbc.msn.com/id/13169647/

[ozymandius]

10. Mellody Hobson: Is the Economy Still Strong?

June 7, 2006 — After a period of robust (and unsustainable) growth during the past three years, the economy appears to be slowing. The question: Is the economy still strong or are we entering a period of slowed growth?

Both the Consumer Confidence and the Expectations indexes were down in May, according to the Conference Board. Another indicator of a slowdown was the May jobs report. Nonfarm payrolls rose only 75,000 during the month, as opposed to a predicted 180,000 gain. Additionally, consumer spending, which represents two-thirds of all spending, has slowed in reaction to higher oil prices. Lastly, the housing market, which has helped to fuel economic growth over the past few years, is cooling, partially in reaction to rising mortgage rates.

The bottom line is that we are at a tipping point. Our economic environment is shifting right before our eyes.

http://abcnews.go.com/GMA/MellodyHobson/story?id=2046329

[Roland99]

12. M$M is clueless as to the state of the economy

Focusing on one month's job numbers?


:eyes:

[abelenkpe]

45. My mum sent be this note last nite

enumerating all the good things about our society. Of course my parents are avid limbaugh fans and watch nothing but fox news but its sometimes nice to see what the far right believes:

---------------------------------------------------------------------------------------------------------------------
And Now For Some Good News

By Peter Wehner Monday, June 5, 2006; Page A15

(snip)

The Economy :

The American economy is the strongest in the world and growing faster
than that of any other major industrialized country. It grew at an
annual rate of 5.3 percent in the first quarter -- the fastest growth in
2 1/2 years. It has added more than 5.3 million jobs since the summer of
2003, and employment is near an all-time high. The unemployment rate
(4.6 percent) is well below the average for each of the past four
decades. Mortgage rates remain near historical lows, homeownership
remains near a record high, and sales of new and existing homes reached
record levels in 2005. Real disposable personal income has risen almost
13 percent since President Bush took office; and core inflation rose
just 2.3 percent over the past 12 months. The Dow Jones industrial
average has risen from under 7300 in 2002 to above 11,000 for most of
this year. Tax revenues are at an all-time high -- and so is total
household net worth.

whole article: http://www.washingtonpost.com/wp-dyn/content/article/2006/06/04/AR2006060400
781.html


---------------------------------------------------------------------------------------------------------------------

Now is it just me, or has the stock market shed about 600 points recently? Haven't gold prices risen a sign investors are wary of the market? And the dollar.....isn't it worth much less than say five years ago?
I don't know how this guy can say real disposable income has risen. Is he on crack? How should one respond to such a statement, other than rolling their eyes?

[Ghost Dog]

61. Gold reasserts role as financial asset: Goldcorp

It's not just you, I reckon, abelenkpe, (as viewed from over the water here in mainland (meditrerranean) Europe). You are not alone.
http://yahoo.reuters.com/business/newsArticle.aspx?type=ousiv&storyid=2006-06-06T223617Z_01_L06305779_RTRIDST_0_BUSINESSPRO-MINERALS-SUMMIT-GOLDCORP-ETF-DC.XML&WTmodLoc=HybArt-R3-MostViewedBiz-3
Tue Jun 6, 2006 6:36pm ET
By Camila Reed

NEW YORK (Reuters) - Gold is changing back into a financial asset, with growth in Exchange Traded Funds (ETFs) for gold set to grow, the president and CEO of America's third-largest gold miner Goldcorp Inc. (G.TO: Quote, Profile, Research) said on Tuesday.

"People are looking for something to store value in. They are not just doing it for inflation. It is financially driven," Goldcorp CEO Ian Telfer told the Reuters Global Mining and Steel Summit in New York.

Bullion-backed securities have rocketed. Four listed ETFs in gold, developed by industry group the World Gold Council, have soared in volume by 50 percent over the past half year.

Gold securities allow investors direct exposure to the precious metal without having to worry about storing and insuring it.

"ETFs are getting very little outflow when the price of gold backs off," said Telfer, defying some predictions that people would take their money and run when gold tumbled recently.

Investors in gold-backed securities have not panicked during the recent drop in gold prices <XAU=>, which touched a 26-year peak of $730 per ounce on May 11.

Since then gold has lost around $100, or 14 percent, but the volume in the gold ETFs has fallen by only 3.5 percent to 14.5 million ounces of gold worth $9.3 billion.

/more...

[54anickel]

59. That's the one I was referring to in post #41 - that "bubbly chick" on

GMA.

I still agree with Puplava, the US buck is the key to the Perfect Storm. Stagflation, recession, depression, hyperinflation or deflation? Step right up and spin the wheel!

[ozymandius]

11. Stockholders rise up, push GM changes

WILMINGTON, Del. -- In a historic show of investors' wishes for change at General Motors Corp., GM shareholders approved two proposals Tuesday to change how board members are elected.

The votes came against the recommendation of the board of directors and marked the first time in the nearly 100-year history of GM that investor proposals had passed.

The nonbinding resolutions showed shareholders' frustrations following GM's $10.6 billion in losses in 2005 and its weakened stock price. And they came amid growing calls for change in corporate governance after scandals at Enron Corp. and other companies.

"This shows that people are displeased with the corporate leadership of the company," said John Lauve, a 65-year-old retired GM manager from Holly who coauthored one of the shareholder resolutions.

http://www.freep.com/apps/pbcs.dll/article?AID=/20060607/BUSINESS01/606070339/1014

[stop the bleeding]

28. Morning everyone- Looks like Greenspan is opening his pie-hole

stress on oil supplies = drag on the economy = my prediction a down market today. ;)

on edit: I wanted to put this as answer for the OP :)

[UpInArms]

13. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DX&v=i

Last trade 84.88 Change +0.15 (+0.18%)

Fed Speak, The Dollar Driver

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Fed_Speak__The_Dollar_Driver_1149635494942.html

US Dollar

Continuing momentum from yesterday’s hawkish bias infiltrated the FX markets throughout the North American session, boosting the greenback against most of the majors on the day. With no economic data to garner major moves, traders took to comments by two Federal Reserve members that hinted further at higher inflationary figures and resultant hikes in benchmark rates. According to Governor Susan Bies, inflationary pressures continue to remain at levels “higher than I’d like to see” as she now joins the general consensus following Chairman Bernanke’s statements from Monday. Comparatively, comments by Kansas City Fed President Tom Hoenig seemed slightly more dovish, but still remained at the crux of the overriding speculation. Expressing the price increases overall should abate as growth tapers off slowly in the near future, Hoenig mentioned that core inflationary figures continue to be at the high end of the president’s comfort zone. Bullish comments like this have underpinned dollar strength in the past 48 hours and look to do so in the near term. The only trump card that pundits hold will be the anticipated trade balance data set for release on Friday. Granted, the momentum has shifted in favor of dollar bulls as further hikes are expected at the end of the month. However, with core prices only hovering 0.1 percent above the 2 percent benchmark target, the trade data could very well shift things back to pre-comment levels and reverse greenback favoritism.

...more...

[UpInArms]

15. How low will the dollar go?

http://www.inform.kz/showarticle.php?lang=eng&id=142475

MOSCOW. June 6, 2006. KAZINFORM - Many analysts suggest that Saddam Hussein’s switch from the dollar to the euro for oil trading was one of the core reasons for the 2003 U.S.-led invasion. Now Iran, the 2nd largest OPEC producer, is getting ready to open a new oil bourse that will trade in euros. And Venezuela is said to be actively discussing the same move.

<snip>

“What we are witnessing is a battle for oil currency supremacy. If Iran’s oil bourse becomes a successful alternative for international oil trades, it would challenge the hegemony currently enjoyed by the financial centers in both London (IPE) and New York (NYMEX),” according to an article by William Clark on the Energy Bulletin.

At the same time, some Middle Eastern countries have been switching percentages of their dollar reserves for other currencies. In March, the UAE Central Bank said it was mulling converting 10% of its dollar reserves to euros following the Dubai Ports World debacle. Kuwait and Qatar also hinted they might do the same.

Moreover, the Commercial Bank of Syria has already switched all the country’s foreign currency transactions from dollars to euros after Washington demanded all U.S. financial institutions to end correspondent accounts with Syria.

And last month, Sweden cut its $21 billion foreign reserves, from 37% to 20%, with the euros share rising to 50%, causing the dollar to tumble almost 2% in one week. Announcing its decision, Sweden’s central bank said the move was aimed at stabilizing its foreign currency reserves and reducing volatile currencies.

...more...

[54anickel]

63. The disappearing US dollar (May 18)

http://www.jamaica-gleaner.com/gleaner/20060518/cleisure/cleisure3.html

AFTER A brief rebound earlier this year, the U.S. dollar has resumed sliding against its major trading partners' currencies. America's persistent deficits, low saving and the shift of foreign reserves out of dollars and into euros seem to be driving the process.

So far, the decline has been more or less orderly. But if it were to gain speed, the consequences for the U.S. economy could be grave. Rising import prices would fuel inflation, which in turn would drive up interest rates. This could then provoke a recession, with painful effects for the world economy.

Moreover, there may be more to this story than a mere decline in the U.S. dollar. While the yen and euro are strengthening against the greenback, the real story appears to be that virtually all currencies are weakening against 'real assets,' and especially commodities. Oil is surging, metals have gone off the charts: all over the world, investors appear to be abandoning 'paper' assets for what is tangible, and thus apparently more secure.

snip>

The new Fed chairman, Ben Bernanke, has been sending confusing and seemingly mixed signals. However, in recent weeks, the Fed seemed to suggest it would land on the side of liberality, restraining further interest rate rises until it was confident the economy would not slide into recession.

Commodity prices began soaring and the dollar began sinking. It would appear that investors, judging the Fed was not going to defend the dollar, began to abandon it and park their money in something that could not be printed: either more 'conservative' currencies, or commodities.

CONFIDENCE LOST

If it is the case that the Fed has lost the confidence of the markets, it will need to overshoot to use Wall Street parlance - in order to restore it. That is to say, like the Fed of two decades ago, it will need to drive interest rates much higher than it normally would just to persuade investors to come back into dollar assets. The pain to the economy would be great.

more...



Central Banks' Tight Fit
http://www.thestreet.com/_tsccom/comment/investing/10290170.html

The simultaneous global meltdown in stock and bond markets from Bombay to New York is a vote of no confidence in the world's central bankers. Central banks everywhere are facing huge challenges. By selling shares and bonds for most of May, investors and traders said loudly and clearly that they don't think bankers are up to the job.

don't think the current correction turns into a meltdown unless one of these banks stumbles really badly. But I don't think the nervousness goes away until these banks, especially the big three -- the Federal Reserve, the Bank of Japan and the European Union -- prove that they aren't about to kill economic growth.

The details vary from country to country, but the problem is the same: Over the last decade or more, the world's central banks have made a bad bargain with governments that collect taxes and then spend the tax receipts, plus borrowed funds. Rather than letting the irresponsible fiscal policies of governments from Beijing to Washington damage national economies, the central banks decided to use their control of the money supply to postpone the consequences of fiscal folly.

Now the bill is coming due, and although the central banks still think they can put off paying the bill for past behavior, investors are less and less certain. Some days, in fact, they get positively panicky.

The Fed Gets the Bill
Let's start with a look at the U.S. Federal Reserve because it's most familiar and closest to home. The Fed decided to fight the effects of the stock market bubble burst of 2000 by taking interest rates down to 1%. That created a real estate boom, which drove up housing prices, making us feel better in the U.S. about all the money we'd lost in the stock market crash.

more...

[54anickel]

65. Today's Pfenning (YIKES!)

http://www.kitcocasey.com/displayArticle.php?id=764

snip>

Did you see this little ditty yesterday? Standard & Poors (S&P) SAYS THE UNITED STATES' 'AAA' CREDIT RATING COULD BE HURT BY PRESSURE ON BUDGET FROM AGING POPULATION. S&P WENT FURTHER TO SAY... ABSENT FISCAL REFORMS, THE UNITED STATES' CREDIT RATING WOULD FALL TO 'A' AFTER 2015, and 'BBB' BY 2020.

Now... That's what I call a "negative outlook," wouldn't you? Of course the "Deficits Don't Matter" crowd don't want to see this news... Nor would they even give it any credence! But I do! But you didn't see this on the TV news, did you? No, you didn't... I wonder why? (Don't worry, I know why!)

more...

[Ghost Dog]

66. Who's the 'rest of the world', anyway,

to rate the USA?

(but this is auto-rating): we expect nothing less of you...

[Tace]

14. MOGAMBO GURU: Watch For The Last Contango In Silver

Richard Daughty, the angriest guy in economics -- World News Trust

snip

-- In The Last Contango in Washington, Antal E. Fekete writes, "People from around the world keep asking me what advance warning for the collapse of our international monetary system, based as it is on irredeemable promises to pay, they should be looking for. My answer invariably is: 'Watch for the last contango in silver.'"

"It takes a little bit of explaining what this cryptic message means. Contango is that condition whereby more distant futures prices are at a premium over the nearby." I interrupt to add that contango is the usual spread for futures contracts. Instead of thanking me for clarifying that important point, he breezily went on, "The opposite is called backwardation which obtains when the nearby futures sell at a premium and the more distant futures are at a discount."

What the hell does this have to do with making money with silver? I raise my hand to ask, and I know that he sees me, but instead of calling on me, he elects to flip to the last page of his notes and hurriedly concludes, "When contango gives way to backwardation in all contract spreads, never again to return, it is a foolproof indication that no deliverable monetary silver exists. People with inside information have snapped it up in anticipation of an imminent monetary crisis."

-- If you were wondering why we Americans seem so intent on picking fights, perhaps the essay "The System in Crisis" by Peter Montague on Counterpunch.com will answer that question. "Defense is the only national industrial policy that almost everyone will agree to, or at least acquiesce to, perhaps for fear of being labeled unpatriotic. Foreign enemies are the ultimate consumers of our military preparations, so in the face of flagging demand for toasters and SUVs our economy now arguably requires a growing supply of foreign enemies."

more

http://worldnewstrust.org/modules/AMS/article.php?storyid=3678

[Buttercup McToots]

25. It's early...

Huh?
Reading that made my head hurt...
Can anyone interprete this?
:think:

[54anickel]

37. In the long run --- we're screwed. eom

[Tace]

70. It Seems That It's Still Early For Silver Backwardization

A glance at the silver futures shows a state of contango at present. I'll keep an eye on it in the months and years ahead.

I tried to wrap my head around this concept, and under the circumstances the writer describes, backwardization, it seems that it's not so much that back months (far-future months) are discounted or show less value, but that front months (near-future months) reflect a premium because of delivery problems due to a shortage of actual silver available to be delivered.

Mogambo has gone on in the past about there being something like 50 times more paper in silver than actual silver above ground. He described a crunch occuring if people start taking physical delivery of the metal, because, he says, they'll find out that most of the silver paper is worthless.

I dunno

[54anickel]

38. The System in Crisis (repeat post from Monday)

http://www.counterpunch.org/montague06032006.html

big snip>

** The political party that controls the White House, the Congress, and much of the judiciary now owes its electoral success to a large group of people who believe the world is going to end soon, which may make earthly problems seem unimportant to many of them. For the first time in American history, a religious party now controls the government.<1>

snip>

Unfortunately, we are already getting a preview of how "the system" will respond to slowing growth. The rate of economic growth (measured by <http://en.wikipedia.org/wiki/Gdp >GDP) has been slowing for the past 35 years,<2,3,4,5,6> and the system's response has not been pretty. Without going into a lot of detail, I believe much of what passes for "the news" each day can best be explained as "system responses" to slowed growth.

snip>

The system has responded to these realities in the following ways:

System response No. 1: Easing Credit

snip>

System response No. 11: Expanding and Discrediting Government

Given the need to distribute the economic pie in new ways, discrediting government has become a necessary political goal because government has occasionally intervened on behalf of "the little people" against "the big people."

Traditionally, government has made modest attempts to level the playing field for everyone, in keeping with the slogan, "With liberty and justice for all." Without basic economic security for families and individuals, neither liberty nor justice is possible.

To his credit, George W. Bush has provided real innovation here. Previous Republican theorists wanted to shrink government so small you could drown it in a bathtub. Mr. Bush recognized that a large inept government was far more useful that a small government, from the viewpoint of those aiming as a matter of high principle and national necessity to transfer a larger portion of the pie from working people and the middle class to the super rich.

lots more....

[UpInArms]

16. SEC sues hedge fund mgr (Russo Asso/Eliot Ptr) for Siphoning Investor Fnds

http://today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-06-06T200213Z_01_N06425335_RTRUKOC_0_US-FINANCIAL-FUND-SEC.xml&src=rss

BOSTON (Reuters) - U.S. financial regulators on Tuesday sued a hedge fund manager for allegedly siphoning off $11.5 million of his clients' money and sending out fake statements showing that investors earned double-digit returns.

The Securities and Exchange Commission charged that Frank Russo convinced at least 160 investors to send him roughly $15 million after promising returns of at least 10 percent with "safe and conservative" securities like bonds.

Russo, who lives in Wakefield, Massachusetts, runs FJR Corporation and two hedge funds, Russo Associates Limited Partnership and Eliot Partners.

But instead of investing all of the money he raised, federal regulators said they found that Russo sent at least $11.5 million of his clients' assets to a California corporation he co-founded.

The SEC's complaint also alleges that Russo sent out phony statements that showed fictional returns in excess of 10 percent. Russo paid dividends and investor redemptions with money he raised from new clients, the SEC said.

...more...

[UpInArms]

17. Herley says it and its chairman have been indicted by US attorney's office

http://news.yahoo.com/s/nm/20060606/bs_nm/arms_herleyindustries_dc

(Reuters) - Herley Industries Inc. (Nasdaq:HRLY - news) on Tuesday said the U.S. Attorney's office has indicted the company and its chairman on charges of making excessive profits on three contracts with the Department of Defense.

The three contracts aggregated about $3.9 million in total revenues over three fiscal years, the maker of microwave equipment for aerospace and defense industries said in a statement.

Herley said the company and its chairman, Lee Blatt, believed that no criminal conduct had occurred and that they would contest the charges and prove their innocence at trial.

Herley said no other officer, director or employee had been named in the indictment by the attorney's office for the Eastern District in Pennsylvania.

...more...

[UpInArms]

18. U.S. mortgage applications decrease last week-MBA

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-06-07T105948Z_01_NAT002112_RTRIDST_0_ECONOMY-MORTGAGES-URGENT.XML

NEW YORK, June 7 (Reuters) - U.S. mortgage applications fell last week as demand for home refinancing loans dropped to its lowest this year, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended June 2 decreased 1.4 percent to 534.4 from the previous week's 541.9.

<snip>

The MBA's seasonally adjusted purchase mortgage index was nearly unchanged at 395.6. The index, however, was substantially below its year-ago level of 479.3.

<snip>

The group's seasonally adjusted index of refinancing applications decreased 3.8 percent to 1,356.0, its lowest level since the week ended Dec. 30, 2005 when its reached 1,363.2.

Outside of a brief dip in December, refinancing applications were at their lowest since April 2002, the MBA said.

...more at link...

[UpInArms]

19. Google founder lobbies for net neutrality

http://today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-06-07T073708Z_01_N06440734_RTRUKOC_0_US-GOOGLE-CONGRESS.xml&src=rss

WASHINGTON (Reuters) - Google Inc. co-founder and President Sergey Brin met with U.S. lawmakers on Tuesday to press for legislation that would prevent Internet access providers from charging Web sites more for faster content delivery.

"The only way you can have a fast lane that is useful -- that people will pay a premium for -- is if there are slow lanes," Brin told reporters after meeting with Republican John McCain, a member of the Senate committee that oversees telecommunications issues.

Google, Microsoft Corp. and other major Internet site operators have joined with small Web site owners to oppose broadband providers such as AT&T Inc. and Verizon Communications that want to offer faster network performance to companies that pay more. The issue has been dubbed "net neutrality" by those who oppose a two-tier system of access and pricing.

Brin acknowledged large companies such as Google would be able to cut deals with the network owners to get their content through. But he added that Google searches are only valuable if consumers can then quickly access the sites listed in the results.

<snip>

The U.S House of Representatives may vote as early as this week on a telecommunications reform bill that does not include the net neutrality protection sought by Google.

...more...

[UpInArms]

20. China: 60 pct of recent land deals illegal

http://news.yahoo.com/s/ap/20060607/ap_on_bi_ge/china_real_estate

SHANGHAI, China - More than 60 percent of recent land acquisitions for construction in China are illegal, with the figure rising to 90 percent in some cities, the government said in a report demanding investigations of such deals.

The increase in violations comes despite repeated calls by the central government for local officials to stop selling land use rights for unauthorized construction, often for industrial parks, luxury housing and showcase projects such as convention centers.

In a warning posted on its Web site Wednesday, the Ministry of Land and Resources said any land deals lacking its formal approval are invalid.

The ministry, which oversees all land use, reported that more than 60 percent of new land deals since September 2004 were illegal, the official Xinhua News Agency and other state media reported Wednesday.

An investigation conducted in 2005 found that the number of illegal land use cases accounted for 64 percent of all such deals, with the total area accounting for 53 percent of total land involved. The survey covered new construction projects in 15 major cities.

...more...

[Tace]

101. Backwardation -- Not Backwardization

There you have it. : )

[UpInArms]

21. South Korea delays resumption of US beef imports

http://news.yahoo.com/s/afp/20060607/bs_afp/skoreaustradebeef

SEOUL (AFP) - South Korea is to prolong its ban on US beef imports, citing problems at US meat processing facilities, officials said.

South Korea banned imports of US beef in December 2003 following a case of bovine spongiform encephalopathy (BSE) or mad cow disease in Washington state.

Seoul had suggested it would reopen its market this week to the import of boneless US beef from cattle aged 30 months and under.

But the Ministry of Agriculture and Forestry said the ban should be maintained for a while because some US processing facilities failed to meet standards required by South Korea.

"The ban will be kept for a while. We will resume the import of US beef soon after the United States solves the problems," a ministry official said, adding the decision followed an inspection of 37 US processing facilities.

...more...

[UpInArms]

22. Fort Lewis considers layoffs to help Army cover $530 million deficit

http://seattlepi.nwsource.com/local/6420AP_WA_Army_Layoffs.html

FORT LEWIS, Wash. -- Temporary and short-term employees at Fort Lewis and other Army installations are being cut to help the Army cover a $530 million budget shortfall, officials said.

"Just about anything that doesn't apply to life, health, safety and the global war on terrorism is on the block," said Ned Christensen, a spokesman for the Army's Installation Management Agency in Arlington, Va., which manages the day-to-day operations at more than 119 installations around the world.

A spokesman at Fort Lewis said the garrison was studying how many employees will be laid off. But at smaller installations, officials have said they'd lay off more than 100. The post employs more than 5,800 federal government workers, although not all work in departments subject to the IMA's directive.

The agency also ordered garrison commanders to immediately freeze hiring, reduce the use of cell phones and vehicles and come up with other cost-cutting measures, such as canceling or postponing contracts.

...more...

[UpInArms]

31. Layoffs stun workers at Fort Greely (Alaska)

http://www.news-miner.com/Stories/0,1413,113~7244~3326072,00.html

More than 100 civilian contract workers at Fort Greely lost their jobs Friday in a round of layoffs that many workers said caught them by surprise.

<snip>

At a Department of Labor workshop held Tuesday in Delta for the laid-off workers, former employees said the job cuts happened with almost no notice.

Bruce Grossmann, who worked as the education counselor on Fort Greely, said he was told at 1:15 p.m. Friday to attend a meeting at 1:30. At that meeting, he was laid off and told to turn in his keys and badge.

"It was very short notice," he said. "It was 15 minutes for some of us."

<snip>

Maxwell, the heavy truck driver, said the layoffs would be a challenge.

His wife also worked at Fort Greely and was laid off during the first cuts. Maxwell said they were about to take out a construction loan to build a house so they could move out of the 12-by-60-foot trailer they share with their two children. He said he figured Fort Greely would stay open and Chugach Alutiiq would keep its contract.

After the cuts, he said it will be a challenge just to pay the bills.

"We're going to be hurting for a little while," he said. His wife traveled to Fairbanks for a temporary job.

...more...

[UpInArms]

23. Steve Case's luxury travel club growing

http://news.yahoo.com/s/ap/20060606/ap_on_bi_ge/case_luxury_travel

WASHINGTON - One might not necessarily imagine that multimillionaires confront limited options in planning their vacations.

But a company chaired by former America Online co-founder Steve Case is growing rapidly by offering a menu of luxury vacation options as part of a club that requires members to pony up $200,000 or more to access its $750 million portfolio of vacation properties throughout North America, the Caribbean and Europe.

On Wednesday the club, Exclusive Resorts, will announce that it has added its 2,000th member, which makes it by far the largest company in the fledgling destination club industry.

<snip>

Here's how it works: Members pay a one-time upfront free ranging from $195,000 to $395,000, which gets them between 15 and 45 days at any of the club's destinations, including the Virgin Islands, Costa Rica, Lake Tahoe, the French Alps and Tuscany. They also pay annual dues ranging from $9,500 to $25,000, again depending on how many vacation days they want.

<snip>

Exclusive Resorts counters that by trying to offer some consistency at all of its sites. For instance, every home has the same model of plasma screen TV and the same remote control. The company keeps a list of its members' preferred groceries and makes sure the refrigerator and pantry are stocked with the right variety of wine for the grown-ups and the right breakfast cereal for the kids.

...more...

[UpInArms]

24. Ports row may have hit Arab investment in US: IMF

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=businessNews&storyID=2006-06-06T192535Z_01_L06573865_RTRUKOC_0_US-ECONOMY-USA-INVESTMENT.xml

ABU DHABI (Reuters) - The International Monetary Fund warned on Tuesday that the Dubai Ports row may have had an impact on investment flows to the United States from Arab countries, an increasingly important source of financing for the U.S. trade deficit.

Dubai Ports World, a state-owned company in the United Arab Emirates, agreed to relinquish control of facilities at six major U.S. ports earlier this year after American politicians viewed it as a threat to U.S. national security.

Since the September 11, 2001 attacks on the United States, Arab investors have feared that their assets in the West could be targeted for security reasons. The row sparked by Dubai Ports takeover of British firm P&O, which operated the ports in the United States, reinforced those fears.

<snip>

With crude oil at more than $70 a barrel, Khan said the six Gulf Arab countries, Libya, Iran and Algeria would earn about $500 billion this year.

He said major Gulf Arab investments in the future would target the Middle East and South Asian regions, not the United States, long the main destination for petrodollars which Gulf states were once content to park exclusively in banks and bonds.

...more...

[Ghost Dog]

62. Dubai to launch first Mideast FX futures June 12

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060607:MTFH07276_2006-06-07_08-22-44_L0716803&type=comktNews&rpc=44

DUBAI, June 7 (Reuters) - Dubai will launch the Middle East's first currency futures on June 12 to tap growing demand for currency hedging in the region's trading hub, the chief executive of the emirate's futures exchange said on Wednesday.

The deliverable euro-dollar, yen-dollar and sterling-dollar contracts will be listed on the Dubai Gold and Commodities Exchange (DGCX), which may introduce more contracts later, Framroze Pochara told Reuters.

"Currently a lot of spot trading for currency takes place in Dubai," he said. "Based on how the market takes to these three contracts, we will think about introducing more currency pairs."

Contracts will mature in September, December, March and June with more than 100 broker members of the DGCX eligible for trading, he said.

The contracts will trade in 5 million yen lots for the yen-dollar, 50,000 euros for the euro-dollar and 50,000 pounds for the sterling-dollar.

The Chicago Mercantile Exchange euro-dollar futures contract trades in 125,000 euro lots.

Pochara said Dubai decided on smaller lots to help create liquidity.

Settlement dates will be T+1 with National Bank of Dubai and HSBC acting as delivery banks.

/more info...

[UpInArms]

26. Commentary: When the wall of worry becomes too high

http://www.marketwatch.com/News/Story/6kT4NbQz1LFhBmr3cMNHmdL?siteid=mktw&dist=TNMostMailed

NEW YORK (MarketWatch) -- Whether it is the amount of risk one takes or how much the market rises or falls, for investors the difference can mean the difference between profit and loss. For those trying to take the pulse of the market, the size of the proverbial "wall of worry" can mean the difference between a correction and a change in trend.

For contrarian investors just itching to buy stocks when everyone else is running for the hills, the past two weeks have presented a market that seems to be just what the doctor ordered. Fear is running rampant, or so the indicators say.

For example, the "fear index," more commonly know as the Chicago Board Options Exchange volatility index (VIX : 17.34, +0.69, +4.1% ) spiked higher in May on at least three occasions. All of the sudden, investors were scared, culminating in the May 30 decline where the Dow Jones Industrial Average shed 184 points.

Savvy chart watchers noted that such big jumps in the VIX are more indicative of bottoms than tops and the market responded with a nice three-day rally to erase the entire loss. Why is that? "Everyone" was interested in selling and we all know the market likes to do the opposite of what "everyone" wants. Indeed, combining fear, oversold conditions and surprisingly low volume that day set the stage for the rebound.

<snip>

Selling intensity has been picking according to an indicator called "90% downside days" originated by Lowry's Reports, a technical advisory in Florida. When 90% of the volume and 90% of the point change occurs to the downside, we know things are getting rocky. This has happened several times over the past weeks.

...more...

[UpInArms]

27. Treasurys lower ahead of Fed speeches

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B9B5C172C%2D7FB0%2D4811%2D84A0%2D00839E00F791%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Treasury prices remained under pressure early Wednesday, sending yields higher, with investors awaiting comments from Fed officials for clues about the outlook for inflation and U.S. interest rates. The benchmark 10-year note last was down 5/32 at 100-25/32 with a yield of 5.026%. Atlanta Fed bank president Jack Guynn will discuss the economic outlook and the housing sector at 12:30 p.m. Eastern. Former Fed Chairman Alan Greenspan and Fed Governor Mark Olson Jack Guynn also are slated to speak Wednesday. On the data front, the Fed will release consumer credit data for April.

[UpInArms]

67. Another voice at Fed raises inflation alarm

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B9C2B40D9%2DCAAF%2D452E%2D99B2%2DC11184E35DFF%7D&symbol=

WASHINGTON (MarketWatch) -- Inflation risks are now elevated, even though there are fresh signs that the U.S. economy is slowing, said Jack Guynn, the president of the Atlanta Fed bank on Wednesday.

"Headline measures of inflation of late have been bothersome, with higher oil prices contributing too much of the run-up in those broad readings," Guynn said in remarks prepared for delivery to a business group in Atlanta.

"Core inflation, which excluded volatile food and energy costs, has moved into the upper end of -- or beyond -- the range I consider acceptable over time," he said.
Guynn said three factors have raised his concern about inflation.

He said the Fed still hasn't seen the expected impact of high energy prices on core inflation. Secondly, some key components of core inflation such as services "have been moving at rates that warrant continued concern" and some measures of inflation expectations have moved higher.

...more...

They didn't "see" high energy costs impacting core inflation?????

These people obviously never got past the kindergarten level of education!

:banghead:

[UpInArms]

81. Fed's Guynn-weak stock market not a policy factor

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-06-07T181613Z_01_N07219784_RTRIDST_0_ECONOMY-FED-GUYNN-STOCKS.XML

DULUTH, Ga., June 7 (Reuters) - Federal Reserve Bank of Atlanta President Jack Guynn said on Wednesday that recent steep losses in U.S. stock markets were not a factor influencing his thinking about interest rates.

"Obviously we watch it and look for signals. But I don't take any important policy decisions from the recent movements in equity markets ... I don't take away from what I've seen in the last few weeks any major implications for policy," he told reporters after delivering a speech here.

The S&P 500 index <.SPX> of major U.S. companies is down 4.7 percent from 5-year peaks set on May 8, troubled by fears the Fed will keep raising rates to keep inflation at bay.

...more...

[UpInArms]

68. Flat curve yields riskier investments -Fed's Olson

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-06-07T165938Z_01_N07415102_RTRIDST_0_ECONOMY-FED-OLSON-URGENT.XML

CHICAGO, June 7 (Reuters) - The flat U.S. Treasury yield curve may have increased risky investments by pushing some investors to seek out returns in other ways, Federal Reserve Governor Mark Olson said on Wednesday.

"Investors that have typically played the yield curve in one form or other are now substituting a risk premium for a term premium," Olson said at a Federal Reserve Board public hearing on the home lending market.

"That has moved them away from other investments to certain kinds of mortgage-backed securities (products) that have a high premium and perhaps without the same valuation of risk exposure," he said.

[UpInArms]

30. WUHBPH Flaps Blubbery Lips - Senility Becomes Obvious

9:10 AM ET 6/7/06 GREENSPAN: U.S. MAY FINALLY BE FEELING IMPACT FROM OIL COSTS

9:09 AM ET 6/7/06 GREENSPAN: PROTECTIONISM WOULD INCREASE RISK FROM OIL PRICES

9:09 AM ET 6/7/06 GREENSPAN: U.S. HAS SEEN LITTLE IMPACT FROM HIGH OIL PRICES

[UpInArms]

33. WUHBPH: Loose Lips Sink Ships

Greenspan: U.S. may finally be feeling impact of oil costs

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BDB627BBE%2D61D3%2D458E%2DBB7A%2D90A028A8D58A%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- Sharply higher oil prices have yet to seriously erode global economic activity, but recent data indicates the United States "may finally be experiencing some impact," former Federal Reserve chairman Alan Greenspan told the Senate Foreign Relations panel on Wednesday. "The U.S. economy has been able to absorb the huge impact of rising oil prices with little consequence to date because it has become far more flexible over the past three decades, owing to deregulation and globalization," Greenspan said in prepared testimony. He warned, however, that "growing protectionism" could undermine flexibility and make the U.S. more vulnerable to swings in the oil market.

[UpInArms]

36. WUHBPH flapping lips continues

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-06-07T134214Z_01_N07183197_RTRIDST_0_ECONOMY-GREENSPAN-ENERGY-UPDATE-1.XML

excerpt:

"Current oil prices over time should lower to some extent our worrisome dependence on petroleum," said Greenspan, who now runs a private consultancy.

"Still higher oil prices will inevitably move vehicle transportation to hybrids, and despite the inconvenience, plug-in hybrids," he added.

Greenspan warned that the buffer between supply and demand was extraordinarily thin and price spikes remain a risk.

"The balance of world oil supply and demand has become so precarious that even small acts of sabotage or local insurrection have a significant impact on oil prices," he said, adding that global refining capacity was still too limited.

Demand for oil from investors and speculators was "hastening the adjustment process" and had driven up oil prices faster than they would have risen otherwise, which in turn was spurring production and curbing consumption, he said.

...more...

[UpInArms]

54. WUHSPH says Bodman (Energy Dept) is Liar

10:40 AM ET 6/7/06 GREENSPAN: MIDDLE EAST OIL SHUTDOWN WOULD HURT U.S. ECONOMY

[Ghost Dog]

64. Oy vey. n/t

[UpInArms]

32. pre-opening blather

09:15 am : S&P futures vs fair value: +2.6. Nasdaq futures vs fair value: +3.0.

09:00 am : S&P futures vs fair value: +2.3. Nasdaq futures vs fair value: +3.0. Stage remains set for the indices to open slightly higher but futures indications are off their best levels ahead of testimony from Greenspan which will be watched closely for his take on the current economic situation. To wit, bonds are now at session lows, lifting the yield on the 10-yr note to 5.02%.

08:30 am : S&P futures vs fair value: +3.5. Nasdaq futures vs fair value: +5.2. Still shaping up for stocks to rebound following another market decline spurred by interest rate uncertainty. Helping the Dow bounce back from its lowest close since March and offset an analyst downgrade on DuPont (DD) is another a pullback in oil prices easing concerns of slowing economic growth, prompting a rebound in the index's best performers (e.g. BA, CAT, UTX). The S.I.A. boosting its projection of chip sales growth in 2006 to 9.8% from 7.9% is providing a floor of early support for the tech-heavy Nasdaq.

08:00 am : S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +6.0. Futures versus fair value suggests that late-day recovery efforts, amid a sense that the market has been oversold on a short-term basis, could carry over this morning and open the cash market on a modestly upbeat note. However, the continued absence of notable economic and earnings data to garner investors' interest will keep another batch of Fed speak front and center. Former Fed Chairman Greenspan testifying on oil and the economy before a Senate committee at 9:00 ET will draw the most attention.

[UpInArms]

34. 9:37 EST WUHBPH Effect

Dow 10,996.70 -5.44 (-0.05%)
Nasdaq 2,160.62 -2.17 (-0.10%)
S&P 500 1,263.57 -0.28 (-0.02%)
10-Yr Bond 5.038 +0.32 (+0.64%)

NYSE Volume 96,654,000
Nasdaq Volume 78,952,000

[UpInArms]

35. 9:47 EST numbers and blather

Dow 10,978.04 -24.10 (-0.22%)
Nasdaq 2,155.88 -6.90 (-0.32%)
S&P 500 1,261.05 -2.80 (-0.22%)
10-Yr Bond 5.040 +0.34 (+0.68%)

NYSE Volume 181,814,000
Nasdaq Volume 144,981,000

09:40 am : Market opens slightly higher as yesterday's last-ditch effort to get stocks back on the buying track, based on the idea that recent selling is overdone, follows through to the opening bell. However, early equity gains are short-lived as the bond market showing a sign of nervousness, amid ongoing analysis of former Fed Chairman Greenspan's first testimony before Congress since he retired from the Federal Reserve, carries over into equities. So far Greenspan has steered clear of comments on current policy, but by saying that world refining capacity has become worrisome and could become the binding constraint on growth, the cautious tone in Treasuries has sent the yield on the 10-yr note (-09/32) to 5.03%. DJ30 -14.17 NASDAQ -3.41 SP500 -1.24 NASDAQ Vol 84 mln NYSE Vol 80 mln

[Roland99]

43. 10:42am - All's Well Now

DJIA 11,023.18 +21.04 +0.19%
Nasdaq 2,173.31 +10.53 +0.49%
S&P 500 1,267.33 +3.48 +0.28%
Dow Util 412.36 +1.50 +0.37%
NYSE 8,107.89 +7.18 +0.09%
AMEX 1,925.24 +0.75 +0.04%
Russell 2000 717.03 +6.07 +0.85%
Semcond 457.72 -0.64 -0.14%
Gold future 624.50 -10.20 -1.61%
30-Year Bond 5.11% +0.03 +0.63%
10-Year Bond 5.04% +0.03 +0.60%

[stop the bleeding]

50. the DOW just broke through it's opening high of 11018-11020

lets see if it continues down and passes through the 11k mark again today.

[stop the bleeding]

60. it is fighting back up now at 11030 n/t

[UpInArms]

69. 1:17 EST numbers and blather

Dow 11,050.32 +48.18 (+0.44%)
Nasdaq 2,176.74 +13.96 (+0.65%)
S&P 500 1,269.42 +5.57 (+0.44%)
10-Yr Bond 5.022 +0.16 (+0.32%)

NYSE Volume 1,380,327,000
Nasdaq Volume 1,059,442,000

1:00 pm : Indices back off their best levels as investors digest more hawkish commentary from today's last scheduled Fed speaker. Although Atlanta Fed President Guynn recently said that the economy is on solid footing, global forces and productivity may help ease inflation and that, if forecasts are correct, then Fed policy is close to correct, Guynn still echoed Bernanke's remarks saying that inflation levels remain bothersome.DJ30 +37.78 NASDAQ +12.15 SP500 +4.66 NASDAQ Dec/Adv/Vol 978/1921/1.00 bln NYSE Dec/Adv/Vol 1104/2025/916 mln

12:30 pm : Market is holding onto the bulk of the day's gains as bargain hunters continue to scoop up underperforming stocks. To wit, Education Services (+4.8%), the year's eighth worst performing SnP industry group, is atop today's leader board. Home Entertainment Software (+3.0%), ranking fifth worst out of 147 industries, is turning in the second best performance. Tires / Rubber (+2.6%) and Internet Retail (+2.3%), this afternoon's fourth and fifth best performers, respectively, are paring some of their 30.7% and 26.8% year-to-date declines as the second and third worst performing industry groups behind Homebuilding.DJ30 +58.48 NASDAQ +17.95 SP500 +7.18 NASDAQ Dec/Adv/Vol 937/1921/920 mln NYSE Dec/Adv/Vol 1088/2026/830 mln

[UpInArms]

71. Commentary: Recession redux

http://www.shns.com/shns/g_index2.cfm?action=detail&pk=ERBE-06-05-06

I do not claim to be prescient, but every once in a while even Chicken Little has just cause to worry. And that economic slowdown I've seen coming and been fearing for more than a year (and first wrote about in this space last October) seems decidedly upon us.

<snip>

"U.S. investors this week will watch the latest employment numbers to see if they temper inflation expectations, without sharply dimming the outlook for corporate profit growth, giving stocks a chance to bounce back from May's sharp sell-off. For stocks to rally, analysts say the economy needs to slow enough to calm the Federal Reserve's worries about inflation so it can end a two-year campaign of hiking interest rates."

The question no longer is when we're going to crash, but how hard.

The latest report from the Commerce Department last week informed us U.S. factory orders fell in April, their biggest setback in three months and another sign of slowing economic activity in the spring, down almost 2 percent from March. And March marked the largest decline since a 2.7 percent fall in factory orders in January. And so it goes.

If only that were the end of it. Consumer confidence is teetering on the brink of downright shaky. We all know high gas prices are forcing middle- and lower-class Americans to spend unacceptably high portions of their disposable income on fuel. The one economic sunspot is retail sales.

...more...

[UpInArms]

72. Anthrax in the UK House of Commons?

1:37 PM ET 6/7/06 POLICE INVESTIGATING U.K. HOUSE OF COMMONS INCIDENT: SKY

1:37 PM ET 6/7/06 MAN TELLS POLICE POWDER AT U.K. HOUSE IS ANTHRAX: SKY

1:38 PM ET 6/7/06 DOORS TO HOUSE OF COMMONS CHAMBER ARE LOCKED: SKY

[UpInArms]

73. "All Clear" declared (fastest testers in the known universe!)

1:51 PM ET 6/7/06 ALL CLEAR DECLARED BY POLICE, U.K. PARLIAMENT RE-OPENS: SKY

1:49 PM ET 6/7/06 MAN WHO TELLS POLICE POWDER IS ANTHRAX IS SUSPECT: SKY

1:50 PM ET 6/7/06 EXPERTS ARE AT PARLIAMENT TESTING IF ANTHRAX: SKY

[UpInArms]

74. 2:08 EST numbers and blather

Dow 11,000.38 -1.76 (-0.02%)
Nasdaq 2,164.79 +2.01 (+0.09%)
S&P 500 1,264.19 +0.34 (+0.03%)
10-Yr Bond 5.024 +0.18 (+0.36%)

NYSE Volume 1,629,280,000
Nasdaq Volume 1,239,713,000

2:00 pm : Sellers show some resolve within the last 30 minutes, more than halving recent gains. Reports that the U.K. House of Commons has been locked down after Anthrax was found has taken some steam out of today's modest recovery efforts. Even though it has since been reported that the U.K. Parliament has reopened, the fact that oil prices slipping through $71 a barrel and are now down 2.4% continue to prevent the Energy sector from supporting a sustainable bounce. DJ30 +14.89 NASDAQ +7.25 SP500 +2.29 NASDAQ Dec/Adv/Vol 1113/1805/1.18 bln NYSE Dec/Adv/Vol 1296/1866/1.09 bln

1:30 pm : More of the same for stocks as positive market internals continue to support today's modest recovery efforts. As reflected in the A/D line, advancers outpace decliners on both the NYSE and Nasdaq by almost 2 to 1. Even though New Low's hold a slight edge over New High's, a 2-to-1 margin in favor of up volumes also suggests a much improved stance following two down days for the broader market.DJ30 +40.52 NASDAQ +14.23 SP500 +5.17 NASDAQ Dec/Adv/Vol 1026/1894/1.09 bln NYSE Dec/Adv/Vol 1179/1968/994 mln

[AnneD]

75. Morning Marketeers,

:donut: Again I post late...just wrapping up a few lose ends. I love working in the summer. I get so much done at school and it makes for an easier school year. Ever day working in the summer nets me that same amount of time saved in the school year.

I like that the price of gold is going down-I want to round out my portfolio. Buying for investment is ok, but I want it as hedge. All it had to do for me is keep up with inflation (which it does). I want to buy it at a good price.

I got money out of my vacation savings fund today. It was great. Topped off my emergency savings fund account, added some to my Christmas fund and the rest went to the checking account for the upcoming vacation and a few bills will disappear. The teller said they had been joking about having a gas savings account club. I suggested a pawn shop/ebay business. If you have never tried these kind of accounts-I recommend them. They are a great way to save and not rely on the plastic so much for planned expenses like Christmas and vacations. I put any extra I get into these accounts. When they open-I have a nice chunk of money that can make a dent in the bills. They get a little more in interest than a regular savings account so that makes it good. Our Credit Union has a drawing and will match up to $1000 of your savings (a nice incentive)

Happy hunting and watch out for the bears. Remember, you are not the only one looking for those juicy berries.

[stop the bleeding]

76. good advice - good morning and

ROOOOAAAAARRRR - I am bearing it up today, I have done well on one symbol by playing a Put option(bear strategy), I have 3 more that look like they will finish in the black as well. ROOOAAAAARRR

I love it when the markert goes down, hell I love it when it goes up, just as long as it is moving one way or the other.

;)

[NC_Nurse]

77. Sold mosst of my stocks last week

Boy, am I glad! :-)

Now I can just watch without worrying! I'm working on eliminating my debt now. Yeah!

[UpInArms]

79. 3:08 EST numbers and blather

Dow 10,996.21 -5.93 (-0.05%)
Nasdaq 2,163.35 +0.57 (+0.03%)
S&P 500 1,263.77 -0.08 (-0.01%)
10-Yr Bond 5.028 +0.22 (+0.44%)

NYSE Volume 1,983,769,000
Nasdaq Volume 1,498,934,000

3:00 pm : Equities bounce off their lows but the blue chip indices, which recently slipped below the flat line for the first time this afternoon, are still struggling to stay positive. The Nasdaq isn't faring much better, as gains in Biotech (e.g. BIIB +2.2%, CELG +2.1%), Trucking (e.g. CHRW +3.6%) and Retail (e.g. SHLD +2.2%) are barely enough to offset weakness in the semiconductor group.DJ30 +8.23 NASDAQ +3.31 SOX -1.4% SP500 +1.12 NASDAQ Dec/Adv/Vol 1269/1688/1.47 bln NYSE Dec/Adv/Vol 1401/1800/1.37 bln

2:30 pm : Market continues to weaken, spearheaded by the absence of leadership from the influential Industrials and Technology sectors. The latter sector has extended its reach into negative territory for the year amid further deterioration in chip stocks as Intel Corp (INTC 17.39 -0.40) plunges 2.3% to another 52-week low. Despite the S.I.A. boosting its projection of chip sales growth in 2006 to 9.8% from 7.9%, all 19 of the components in the PHLX Semiconductor Sector Index are trading lower. DJ30 -1.92 NASDAQ +4.22 SOX -1.2% SP500 +1.22 NASDAQ Dec/Adv/Vol 1363/1577/1.33 bln NYSE Dec/Adv/Vol 1614/1567/1.22 bln

[Roland99]

82. Whoa. What happened to vibrant bounce?

[UpInArms]

84. maybe the buyers noticed that all those positive reports keep being rev'd

lower?

:evilgrin:

[UpInArms]

85. Speculation brewing over possible Intel layoffs - 10-17% -announce in July

http://www.katu.com/business/story.asp?ID=86615

HILLSBORO, Ore. - One of the state's largest employers may be considering big layoffs, reducing its workforce by more than 10 percent, a move that could affect workers in Oregon.

Intel employs more than 17,000 people in Oregon and concern is spreading.

<snip>

The company's CEO announced that the company wants to restructure every part of the company. Top executives have held strategy sessions that lasted several weeks. Some industry insiders say Intel could lay off 10 to 17 percent of its workers.

A spokesperson for Intel says the company will not comment on speculation, but he said they do not plan on announcing any restructuring changes until sometime next month.

...a bit more...

[UpInArms]

87. Intel shares fall again to three-year lows: Investors say growth propects

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BE2181F95%2D8FCF%2D473E%2D8EB5%2DCFD3D76C31A3%7D&symbol=

SAN FRANCISCO (MarketWatch) - Intel Corp. shares fell 2% Wednesday, scraping three-year lows, as investors said the chip giant's plan to spin off its communications-related businesses won't change its heavy reliance on personal computer sales and other mature markets that are slowing.

Intel (INTC : 17.34, -0.45, -2.5% ) fell for the third staight day to touch a low of $17.37, a price not seen on Intel shares since April 2003. The drop comes as the company is in talks with private investors and other chip firms to sell Intel's communication-chip assets. See full story on Intel talks.

Shares of the world's largest chipmaker have fallen about 30% this year as more investors grow skeptical the Santa Clara, Calif.-based firm can jump-start sales growth.

Intel has lost market share to smaller rival Advanced Micro Devices Inc. (AMD : 28.23, -0.72, -2.5% ) in the market for chips that run corporate servers. Its intention to exit the communications-chip markets, absent any other new initiatives, leaves it at the mercy of the mature market for PC chips, according to investors.

"We don't own Intel," said Richard Hunter, director of research for Lighthouse Capital Management, a Houston investment firm that manages $400 million. "Intel is a really big company and it's hard to get good growth, especially when they're chained at the hip to personal computers," Hunter said.

Intel Chief Executive Paul Otellini in April ordered a sweeping review of operations to "restructure and resize" the Santa Clara, Calif.-based company in response to a changed marketplace. The sales of the communications-chip assets, either in one sale or a series of transactions, is part of that plan.

...more...

[UpInArms]

86. 3:38 EST heading for the close

Dow 10,964.12 -38.02 (-0.35%)
Nasdaq 2,157.36 -5.43 (-0.25%)
S&P 500 1,259.84 -4.01 (-0.32%)
10-Yr Bond 5.026 +0.20 (+0.40%)

NYSE Volume 2,230,827,000
Nasdaq Volume 1,690,673,000

3:30 pm : So much for a modest attempt by the bulls to use yesterday's three-month low of 10,890 on the Dow as a market bottom. To wit, the blue chip index was up as much as 75 points earlier but now paces the way lower among the majors going into the close. Even though Financials and Health Care continue to post respectable gains, they have not been enough to overshadow a 1.0% decline in Technology as well as further profit-taking in Energy and Materials to the tune of -3.3% and -2.1%, respectively.DJ30 -43.16 NASDAQ -6.92 SOX -2.1% SP500 -4.62 NASDAQ Dec/Adv/Vol 1512/1474/1.63 bln NYSE Dec/Adv/Vol 1646/1583/1.53 bln

[stop the bleeding]

88. I had a feeling that today was gonna be a down day, unless the

sprites make a late day run to bring the DOW back to 11k like they did yesterday.


ROOOOAAAAARRR - the Bears are here to stay ;)

[stop the bleeding]

90. Welcome to the other side of 11k

DOW finishes at approx 10930

[Roland99]

91. Closing numbers: First Dow close Under 11,000 since March

DJIA 10,930.90 -71.24 -0.65%
Nasdaq 2,151.80 -10.98 -0.51%
S&P 500 1,256.15 -7.70 -0.61%
Dow Util 408.51 -2.35 -0.57%
NYSE 8,037.06 -63.65 -0.79%
AMEX 1,910.34 -14.15 -0.74%
Russell 2000 706.78 -4.18 -0.59%
Semcond 447.55 -10.81 -2.36%
Gold future 632.60 -2.10 -0.33%
30-Year Bond 5.10% +0.02 +0.31%
10-Year Bond 5.03% +0.02 +0.40%


Surprised NASDAQ wasn't worse given INTC hitting a 3-yr low.

[markam]

92. Sunday night

I was predicting DOW 10,000 by Friday. I am still predicting it. 8,000 by the end of summer.

[abelenkpe]

93. Wow. Pure Drama.

I love this thread...
I wish I could post more often, but I can't figure out how to do it from work.
Keep up the good work everyone. You're fabulous!

(going back to lurking mode.....)

[OrangeCountyDemocrat]

94. 10,000 By Friday?

You're predicting that it's going to drop another 1,000 points in the next 2 days?

[stop the bleeding]

95. I don't think that is possible, doesn't the market put "curbs" in place

when the DOW makes sudden drops??

just asking.

maybe 10k by the end of the summer - time will tell

[markam]

97. The circuit breakers won't stop a big drop

I believe that you can have 550 points in drop before trading stops for the day. Granted, getting to 10,000 by friday would be stretch, but I bet tomorrow will be ugly.

On further checking, it is now requires a 3,350 point drop to halt trading. The first halt doesn't even occur until a 1,100 point decline.

http://www.nyse.com/Frameset.html?nyseref=http%3A//search.yahoo.com/search%3Fp%3Dcircuit+breakers+on+stock+market%26fr%3DFP-tab-web-t403%26toggle%3D1%26cop%3D%26ei%3DUTF-8&displayPage=/press/circuit_breakers.html

[OrangeCountyDemocrat]

98. What Will Trigger This?

If you're predicting a 10% drop in a matter of days, what is going to trigger this? I haven't seen a decline of more than 200 points in any day, so obviously you expect a trigger of some sort.

[markam]

99. Here is one trigger

The Russian Trading System, Russia's premier stock market, announced Monday that it would start trading in gold, oil and oil products on June 8.

http://en.rian.ru/russia/20060522/48434383.html

If russia actually switches over to only trading oil in rubles, it will be very bad for the U.S.

Also, it looks like gold and silver may have bottomed out today. If they start climbing rapidly, bad for confidence in dollar.

[UpInArms]

96. blather

After what was shaping up to be a respectable bounce following a few more days of consolidation, early recovery efforts came up short, as buying interest faded throughout the afternoon and ongoing interest rate uncertainty plagued equities again, closing the major indices at session lows.

The market opened slightly higher as Tuesday's last-ditch effort to get stocks back on the buying track, based on the idea that recent selling was overdone, renewed hopes that yesterday's three-month low on the Dow (10,890) was in fact the bottom so many have been waiting for. Prices across the commodity complex, from the likes of oil prices falling 2.3% below $71 a barrel and gold prices hitting a six-week low, provided some early relief while investors sifted through another batch of Fed speak.

Even though former Fed Chairman Greenspan's remarks were fairly balanced and in the end had little impact on trading, commenting on the American consumers' struggles with rising gas prices initially helped bolster the case of pundits arguing for a pause at the June FOMC meeting. Be that as it may, more hawkish commentary, this time from Atlanta Fed President Guynn, coupled with an early-afternoon Anthrax scare in the U.K., provided the perfect excuses to get back to doing what a nervous market fearful of the Fed going too far with its tightening efforts has done for several weeks -- sell.

Despite oil prices slipping for a second straight day, following an unexpected build in weekly crude supplies and eased concerns about Iran's nuclear ambitions, Energy shaving more than one-third of its year-to-date leading 9.2% performance was the biggest drag on the market. The Materials sector was another sore spot, shedding more than 2.0%. A rebound in the greenback prompted more profit-taking in dollar-denominated commodities while concerns over a slowing economy, which led to analyst downgrades on DuPont (DD 41.13 -1.04) and Dow Chemical (DOW 39.09 -0.49), were felt by the entire market.

Technology extending its reach into negative territory for the year, amid further deterioration in semiconductors, also played havoc with bargain hunters' modest attempts to scoop up underperforming stocks. Intel Corp (INTC 17.39 -0.40) flirting with three-year lows, amid ongoing growth concerns, more than overshadowed the Semiconductor Industry Association raising its forecasts for chip sales by 9.8% (from 7.9%) to $249.6 bln for 2006. EMC Corp (EMC 12.10 -0.25) saying that full-year revenues will be toward the low end of previous guidance didn't help much either. Yesterday, we lowered our rating on Technology to Market Weight due to the palpable concerns that the Fed may go too far in its tightening efforts.

Despite weakness throughout the Treasury market, after Guynn became the fourth Fed official to echo Bernanke's firm stance on fighting inflation with more rate hikes, the rate-sensitive Financials sector turned in a respectable performance. Nonetheless, until the Fed policy outlook becomes more clear, perhaps when PPI and CPI data are released next week, the market is not likely to make a major move upward. BTK +0.2% DJ30 -71.24 DJTA -0.9% DJUA -0.6% DOT -0.5% NASDAQ -10.98 NQ100 -0.6% R2K -0.6% SOX -2.4% SP400 -0.8% SP500 -7.70 XOI -2.9% NASDAQ Dec/Adv/Vol 1659/1356/1.96 bln NYSE Dec/Adv/Vol 1944/1287/1.83 bln

[54anickel]

100. Wow, I step out for the afternoon to try and make a buck or two and

come back to this mess!

Hmmmm, tomorrow is "Maeve Day" (UE reports) we'll have to see what the morning brings. Futures are looking a bit down in the mouth at this hour, and I missed the UK anthrax scare completely. Will it be a bad weekend to hold stocks? So many questions these days - I'm thinking we'll be fortunate if we simply go back to being range-bound between 10,000 and 10,500 again. At least it held on for two years. Got a funny feeling we won't be that lucky this year.