STOCK MARKET WATCH, Monday September 18

[ozymandius]

Monday September 18, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 856 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2091 DAYS
WHERE'S OSAMA BIN-LADEN? 1797 DAYS
DAYS SINCE ENRON COLLAPSE = 1758
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 6
Enron execs conveniently deceased = 3
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 September 15, 2006

Dow... 11,560.77 +33.38 (+0.29%)
Nasdaq... 2,235.59 +6.86 (+0.31%)
S&P 500... 1,319.87 +3.59 (+0.27%)
Gold future... 583.00 -3.00 (-0.51%)
30-Year Bond 4.92% UNCH (UNCH)
10-Yr Bond... 4.80% +0.01 (+0.10%)






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 Tim W. Wood

THE DOW REPORT
I No Longer Trust the Summer Rally

This was not a bad week for the markets. The Industrials were up 168.66 points or 1.48%. The Transports were up 208.64 points or 4.97%. The S&P 500 was up 20.95 points or 1.61%. As a result, many have e-mailed me this week asking if the Dow theory non-confirmation is really still relevant or valid. Others have asked me if it has been corrected with this week’s advance. I also received e-mails this week informing me that lack of confirmation by the underlying internal strength indicators is no longer applicable. Additionally, I’m receiving a number of e-mails on the 4-year cycle. Some are asking me if it was possible that the June/July lows marked the 4-year cycle low, while others are informing me that the June/July lows marked the 4-year cycle lows and that the markets are now off to the races.

The signal that these e-mails send me can be summed up in one word: Complacency. Of course, the non-confirmation is still valid. One-hundred and ten years of market history has not been nullified in the last few days, the last month, the last year or even since 2002. In the first chart below you can see that the dual non-confirmation between the Industrials and the Transports still exists. The first non-confirmation is marked in blue and occurred when the Transports fell below their June low, while the Industrials held above that level. The second non-confirmation is noted in red and came when the Industrials bettered their early July high, but the Transports failed to follow. As a result, both non-confirmations still exist, and to say that they are no longer valid is to say that the Dow theory and its one hundred and ten years of history is no longer applicable.

-see chart-

Thus far, nothing has happened to cause me to change my view on the market. Based on my trend quantification work and my intermediate-term Cycle Turn Indicator, I looked for and called the market top in May. I then looked for the summer low and when it occurred I said, “the Summer Rally has begun.” At present, I no longer trust this advance. I still believe that Dow theory is every bit as relevant today as it has been in the past and we still have a Dow theory non-confirmation in place. Furthermore, I still believe that the underlying internals are relevant. Sure, the market can be manipulated in the short run, but manipulation only serves to make matters worse in the end. This is a time for caution and skepticism rather than complacency.

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

[ozymandius]

2. Today's reports

8:30 AM Current Account Q2
Briefing Forecast -$215.0B
Market Expects -$213.5B
Prior -$208.7B

9:00 AM Net Foreign Purchases Jul
Briefing Forecast NA
Market Expects NA
Prior $75.1

[UpInArms]

16. Reports in: (Ruh-Roh!)

8:30 AM ET 9/18/06 FOREIGNERS BUY $10.1B IN TREASURYS, SELL $1.6B IN STOCKS

8:30 AM ET 9/18/06 U.S. Q2 NET FINANCIAL INFLOWS $154B VS. $171.5B 1Q

8:30 AM ET 9/18/06 U.S. 2Q DEFICIT ON INCOME RISES TO RECORD $4.1 BILLION

8:30 AM ET 9/18/06 U.S. 2Q CURRENT ACCOUNT DEFICIT $218.4B VS. $213.2B Q1

U.S. 2Q current account gap widens to $218.4 billion

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B2DDA042A%2D3AD6%2D4800%2DA296%2D47805A824935%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - The U.S. current account deficit widened to $218.4 billion in the second quarter from a revised $213.2 billion in the first quarter, the Commerce Department estimated Monday. The current account totaled 6.6% of gross domestic product, the same as in the first quarter. The growth in the deficit in the second quarter was largely accounted for by increases in the deficits on goods and income. Economists had expected a current account of about $213 billion, according to a survey conducted by MarketWatch.

[UpInArms]

17. U.S. July capital flows fall to $32.9 bln vs $75.1 bln June (More Ruh-Roh)

9:00 AM ET 9/18/06 U.S. JULY CAPITAL FLOWS LOWEST SINCE MAY 2005

9:00 AM ET 9/18/06 U.S. JULY CAPITAL FLOWS FALL TO $32.9 BLN VS $75.1 BLN JUNE

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB19338CB%2D3730%2D4889%2DBDD1%2DD356608508D1%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - Capital flows into the U.S. fell sharply to $32.9 billion in July, the Treasury Department reported Monday. This is the smallest inflow since May 2005. The drop was led by a sell off of Treasury bonds and notes by private investors. Foreign central banks actually increased their purchases of Treasury bonds and notes and government agency bonds in July. Chinese holdings of Treasury securities increased to $332.7 billion in July, the tenth straight monthly increase.

[Roland99]

29. That doesn't smell good

[ozymandius]

3. Oil eking out small gains, OPEC eyes U.S. growth

SINGAPORE (Reuters) - Oil prices nudged higher for a second day on Monday, struggling to end their steepest slump in more than a decade amid robust winter fuel stocks and easing geopolitical and weather risks to oil supplies.

NYMEX crude for October delivery was up 2 cents at $63.35 a barrel in Globex electronic trading by 0529 GMT, building on Friday's 11-cent gain and again attempting to halt a $9 plunge in prices over the past three weeks and a near 20 percent reversal since mid-July's record high of $78.40.

Brent crude rose 14 cents to $63.47.

From peak to trough, oil prices have fallen by more than $16, the steepest retracement since the first Gulf War in 1990/1991, although deep $15 corrections in the autumns of 2004 and 2005 were followed by new peaks within about half a year.

http://news.yahoo.com/s/nm/markets_oil_dc

[ozymandius]

4. OPEC casts a dark eye on the greening of energy

VIENNA (AFP) - Despite forecasts that show no end to rising demand for crude over the coming decades, oil-producing nations are casting an uneasy eye on the growing number of measures being taken to tackle climate change.

"The main long term challenge is definitely the necessity to reconcile oil with environmental demands," Claude Mandil, executive director of the International Energy Agency, told a recent conference organised by OPEC to examine the industry's future.

Mandil also hinted that the 11 Middle Eastern, African and Asian nations in the Organisation of Petroleum Exporting Countries could not afford to ignore concerns about climate change, which are even winning over once sceptical consuming nations.

-cut-

Oil producers are also concerned about new anti-pollution regulations that not only aim to drive down consumption, but also oblige oil companies to supply more costly, highly-refined "cleaner" fuels.

http://news.yahoo.com/s/afp/20060917/sc_afp/opecenergycommodities_060917221757

[ozymandius]

5. Iran, Norway sign oil exploration deal

TEHRAN (AFP) - Iran and Norwegian firm Norsk Hydro have signed a deal for exploration of the major onshore oil block of Khoramabad in western Iran.

The initial investment for the exploration amounts to 49.5 million dollars and can be increased up to 107.5 million dollars in case of additional costs, state television said.

The contract was signed in Tehran between the National Iranian Oil Companys exploration department and Hydro Zagros, the Iranian unit of Norwegian oil and gas firm Norsk Hydro.

The contract is based on a joint package of exploration-development, under which the block will be awarded to the contractors if they find profitable hydrocarbon reserves.

http://news.yahoo.com/s/afp/20060918/bs_afp/irannorwayoilinvestmentcompanynorskhydro_060918073547

[ozymandius]

6. Suicide Attacks Foiled at 2 Oil Sites, Yemen Says

DUBAI, United Arab Emirates, Sept. 15 — Security officials in Yemen said they thwarted two suicide bombings of oil installations in the southern and central regions of the country early Friday. The four attackers and a security guard were killed, Yemen’s Interior Ministry said in a statement.

Yemeni officials said an investigation was under way to determine who was behind the attacks, which came days after one of Al Qaeda’s top leaders, Ayman al-Zawahri, threatened strikes against oil facilities in the Middle East that he blamed for “stealing Muslim oil.” By late Friday, no group had claimed responsibility.

-cut-

The attacks occurred just days before voters are to cast ballots in a hotly contested election pitting President Ali Abdullah Saleh against four challengers. Political analysts accused the government on Friday evening of capitalizing on the incidents to help Mr. Saleh’s standing.

http://www.nytimes.com/2006/09/16/world/middleeast/16yemen.html?_r=1&oref=slogin

[AnneD]

23. Morning Marketeers....

:donut: and lurkers. The suicide bombing attempt reminds me of a scene in the Godfather. Michael and Fredo were in Havana to look at opening up casinos in Cuba. While driving around, they were attacked by a suicide attacker. The government bureaucrat bragged that this rebellion was nothing. Michael later told his folks that the family was not investing in Cuba because of Castro and the uprising. As he said any cause in which folks were willing to die for has a chance of succeeding. And of course, they were on a plane out of Cuba after midnight-just as Castro's coup began.

We had better be filling up our strategic reserves and consumers had better make the changes ASAP. This is a dwindling resource and we need to make permanent changes NOW (like we should have after the oil embargo).

If the Muslim Fundamentalists states lose their oil leverage...they have bum kiss. How much quieter would the world.

Happy hunting and watch out for the bears.

[ozymandius]

7. Oil consolidation talk boosts FTSE

Bid speculation in the oil sector provided early interest in London on Monday.

BG Group was the stock in focus, rising 2.1 per cent to 653½p on talk it had received a 720p a share bid from Royal Dutch Shell, up 0.1 per cent at £17.85.

This is not the first time the UK's new number one and number three oil and gas companies have been linked.

Analysts believe a deal is possible - if perhaps premature this time.

http://news.yahoo.com/s/ft/20060918/bs_ft/fto091820060621457537

[AnneD]

24. Small Houston oil company at the center of global drama

WASHINGTON - Initially, theirs was a tale to rival that of any legendary Texas wildcatter.

A little-known Houston oil company lands a potential blockbuster deal in the crude-rich waters off West Africa and appears poised for a big payoff.

Negotiating the rocky shoals of West African politics and threats of arrest for sedition, ERHC Energy, a tiny company with no experience in offshore drilling, secures the rights from the government of Sao Tome and Principe to explore a stretch of the Gulf of Guinea thought to hold up to 14 billion barrels of crude.

Then the FBI barges in.

And suddenly, this obscure company's story becomes oddly interwoven with one of Washington's biggest scandals, a bribery probe targeting a Louisiana congressman.

http://www.chron.com/disp/story.mpl/business/4194125.html

This is one thing about the oil biz I miss. There was always a juicy story, scandal, or skeleton waiting to be discovered.:rofl:

[ozymandius]

8. Corporates to become top tax payer in Japan

The amount of corporate tax paid by Japanese companies is for the first time in 18 years likely to exceed the amount of income tax paid by individuals, highlighting the role corporate profits have had in underpinning Japan's lengthy recovery.

According to data compiled by the Nikkei newspaper, companies should pay comfortably more than the Y13,100bn ($111bn) budgeted by the finance ministry in the year to April 2007. In the three months to July, corporate tax collection is already running 50 per cent ahead of last year, as corporate earnings improve and deferred tax assets - or previous losses carried forward - decline, it says.

Last year, corporations paid Y11,500bn in tax compared with Y13,200bn collected from income tax. Total tax and stamp duty came to Y44,000bn, leaving the government needing to issue Y34,400bn in bonds.

The figures highlight the strong return to profitability of Japanese companies, which have managed to retain most of their gains without passing them on to workers in the form of higher wages. Although the labour market has become tight, with more jobs than job-seekers, wages have hardly risen, although bonuses have improved.

http://news.yahoo.com/s/ft/20060918/bs_ft/fto091820060210297522

[ozymandius]

9. US Treasury chief backs strong dollar

SINGAPORE (XFN-ASIA) - US Treasury Secretary Henry Paulson Monday backed a strong dollar and said the nation's massive current account deficit reflected its appeal for investors.

'A strong dollar is clearly in our nation's interest,' he told reporters following annual talks of the Group of Seven countries and the International Monetary Fund here.

The deficit was due to numerous factors such as 'global imbalances' that include slow growth in Europe and Japan, and a low US savings rate, Paulson said.

'I very strongly believe that the economic policies that we have had in our country, that maintain and enhance confidence in the US and our securities, are the right ones,' he said.

http://www.forbes.com/markets/feeds/afx/2006/09/18/afx3023557.html

[burf]

11. Excuse me but

just what world is our esteemed Treasury Secretary living in? I agree a "strong dollar" is in the nations best interest, but how does deficit spending, massive trade imbalances, the outsourcing of jobs and other economic policies of this bunch contribute to a strong dollar? I guess the answer is to once again fire up the printing presses.

To quote Merle Haggard, "We'll all be drinkin' that free Bubble Up and eatin' that Rainbow Stew" !

[specimenfred1984]

21. Paulson got to Keep $500 Million Tax-Free for taking his job

as treasury sec.. Paulson's Goldman portfolio was worth 1/2 billion which he had to liquidate to become treasury sec. However, because he took a gov't job, he DOES NOT have to pay any tax on it.

That's what world he lives in.

[AnneD]

27. Burf...

:hi: that seems to be the Market theme song lately.
Artist/Band: Haggard Merle
Lyrics for Song: Rainbow Stew


<snip>

An' the price of life is too high to give up,
Gotta come down again.
When the world wide war is over and done,
And the dream of peace comes true.
<snip>
When they find out how to burn water,
And the gasoline car is gone.
When an airplane flies without any fuel,
And the satellite heats our home.
One of these days when the air clears up,
And the sun comes shinin' through.
<snip>

Eatin' rainbow stew in a silver spoon,
Underneath that sky of blue.
All be drinkin' free bubble-ubb,
An' eatin' that rainbow stew.
<snip>

When a President goes through the White House door,
An' does what he says he'll do.
We'll all be drinkin' free bubble-ubb,
Eatin' that rainbow stew.

<snip>

[OrangeCountyDemocrat]

22. Is This The Same Dollar They're Letting Decline?

By keeping interest rates low, the value of the dollar will slowly decline versus other currencies, especially as those currencies raise their own interest rates.

But they're content to pump out dollars, which decreases their value over time.

[ozymandius]

10. Good morning everyone!

:donut: :donut: :donut:

It's time to get moving. Onward to the salt mine.

Have a great day!

Ozy :hi:

[UpInArms]

12. daily dollar watch

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

Last trade 86.06 Change +0.08 (+0.09%)

Dollar Advance Not Data Dependant

http://www.dailyfx.com/story/dailyfx_financial_markets_headlines/Dollar_Advance_Not_Data_Dependant_1158343459665.html

Though the dollar was on the move across the board through Friday’s multi-regional sessions, the real action came long before the US data hit the news wires. In fact, today’s fundamental numbers produced little immediate action at all, with a number of market movers printing in line with expectations.

In spot the EURUSD was finally picking up the pace from its consolidation in the wake of the long-awaited 1.2750 break. From the high set in the European hours, the EURUSD worked its way 110 points down to 1.2630. Against the British pound, the dollar rally measured a slightly larger 130 points with an eventual break in the run coming on yesterday’s lows at 1.8755. Amongst the four majors, the best come back was being made by the franc; which, after giving up 115 points to the dollar to 1.2625, worked its way back toward the 1.2550 level that was until today resistance. Finally, the yen had anchored the dollar for over 48 hours between 117.30 and 117.75, however a break by mid-day in New York finally opened the door for dollar bids.

Like yesterday, Friday’s calendar was packed with important indicators for traders, economists and monetary policy officials to look over. However, unlike yesterday, the numbers fell flat as some of the most market moving gauges printed almost exactly in line with expectations. The first set of numbers, covering consumer inflation for the month of August, were perhaps the most highly anticipated when trading began this week. With a FOMC meeting just over the hill, the market was tuning into today’s Consumer Price Index numbers to see if the hawks would find the necessary fuel needed to make a case for reinitiating the steady rate policy that had moved rates 425 basis points in two years. The results were lackluster. August’s headline measurements printed in accordance with the market’s 0.2 percent monthly and 3.8 percent annual predictions. While inflation in the 12 months through August is still well above the Fed’s comfort zone, its dip this month gives brings it to a four-month low and has many saying the top come and gone. However, the Fed’s cautionary tone over inflation is likely to last through at least the end of this year given the pace in core numbers. Inflation stripped of volatile components like energy accelerate to a 2.8 percent gait, the fastest its been since March 1996. Going forward, price pressure will likely depend on a balance of slower consumer spending and the unpredictable path of energy prices; but as of now, both are leading speculators to project a 5.25 percent overnight lending rate until at least the first quarter of 2007. Another indicator that was released concurrently with CPI was the New York Fed’s survey of regional manufacturing health in September. According to their results, activity rose to a 13.8 net positive read following the previous 11.0 print. From the questions used in the survey, a drop in new orders raised concerns over growth, though a marked rise in employment and drop in prices paid figures offset such worries. Keeping the data flowing, the industrial production read yielded the only surprising read for the entire day. Against expectations of a 0.2 percent increase, activity actually fell 0.1 percent last month. The first contraction since the beginning of the year came on a drop in production of business supplies and energy products. Rounding out the disappointing numbers was the preliminary read of the University of Michigan’s confidence survey. Printing at 84.4, just 0.4 points above what had been expected, the increase in optimism tracked a drop in gasoline prices and the improving relations in the Middle East. Though this is the first rise in three months, it is far from a trend. Looking ahead, sizable event risk looms over the market in the illiquid weekend hours while the G7 meets in Singapore. Should any topic spark international interest, the reaction could be dramatic when trading opens once again.

...more...

Dollar Doesn’t Move

http://www.dailyfx.com/story/strategy_pieces/trade_or_fade/Dollar_Doesn_t_Move_1158555780781.html

Another week full of range bound listless price action as implied volatility contracted to near record lows with EUR/USD carving out a whopping 100 point range for all five days of trade. On the economic front, the news was generally dollar bullish with Advance Retail Sales rising 0.2% versus 0.0% expected and U of M sentiment bouncing to 84.0 as price of crude declined by more than $15/bbl off the top and consumers saw some relief at the gasoline pump. With impending doom and gloom failing to materialize despite the sharply contracting housing market, the market began to warm up to the greenback on the assumption that the US economy will merely decelerate modestly rather than tip into a recession.

Next week, the FOMC meets to render its decision on rates but almost no one expects the US monetary authorities to tighten. Yet while the FOMC may be a non event – the TICS report which precedes it on Monday could have a meaningful impact on trade if the number exceeds estimates either way. Last week, the record Trade deficit hardly moved the pair, but that’s because the US economy is far more dependent on capital flows rather than trade flows. If TICS print significantly lower than the $70 Billion expected, it will once again spark fears about the structural condition of the United States. As long as foreign capital continues to flow into dollar denominated assets the greenback will likely remain buoyant, but if the financing is withdrawn, the market will have very little patience with the buck.



...more...

[UpInArms]

13. Fed likely to hold rates in Sept - OECD economist

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-09-18T100134Z_01_DEL200942_RTRIDST_0_ECONOMY-OECD-US.XML

NEW DELHI, Sept 18 (Reuters) - The U.S. Federal Reserve is likely to keep interest rates steady this week, but may need to raise them again if inflation pressures do not subside quickly, OECD chief economist Jean-Philippe Cotis said on Monday.

Cotis, on a trip to India, said there was still an "upward bias" on U.S. interest rates.

"If inflationary pressure does not recede fast enough, there is need for tightening. But not this time," Cotis told reporters, reiterating comments he made earlier this month.

The U.S. central bank's policy-setting committee meets on Wednesday, and is widely expected to keep its benchmark interest rates unchanged at 5.25 percent. The Fed did not raise rates in August, breaking a two-year long tightening campaign.

...more...

[UpInArms]

14. Ford, GM have discussed merger, alliance-report

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-09-18T121642Z_01_N18255214_RTRIDST_0_AUTOS-GM-FORD-UPDATE-1.XML

CHICAGO, Sept 18 (Reuters) - Senior executives at General Motors Corp. (GM.N: Quote, Profile, Research) and Ford Motor Co. (F.N: Quote, Profile, Research) have discussed a merger or alliance, industry newspaper Automotive News reported on Monday.

Citing several sources familiar with the talks, the paper said it was not clear whether the negotiations will bear fruit.

As of now, the two companies, both struggling with shrinking market shares while restructuring operations, are not holding talks, and one source said there is a slim chance that anything will come of the situation, Automotive News said.

GM and Ford declined to confirm any talks.

"As we've often said, GM officials routinely discuss issues of mutual interest with other automakers," GM spokesman Brian Akre said. "As a policy, we do not confirm or comment publicly on those private discussions, which in many cases never lead anywhere."

Ford spokesman Tom Hoyt said the automaker does not comment on speculation.

On Friday, Ford said it would slash $5 billion in costs and one-third of its work force as it warned its auto business would not make a profit in North America for another three years. It also suspended its dividend and pledged to revamp a vehicle line-up seen as weak by analysts.

...more...

[UpInArms]

15. Jump ship or pink slip for some U.S. realtors

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-09-18T070559Z_01_N15464298_RTRIDST_0_ECONOMY-BROKERS-BUSINESS-FEATURE.XML

NEW YORK, Sept 18 (Reuters) - They are jumping ship or receiving the pink slip. America's real estate agents and mortgage lenders, that is.

Now that the glory days of the most recent U.S. housing market are over, its deterioration is taking a toll on employees who profited from its record-breaking five-year run.

With home sales slumping and loan demand diminishing, layoff announcements and resignations have become increasingly common, evidence that the sector's slump is broad.

<snip>

Real estate industry job cut announcements totaled 3,033 year-to-date through August, a nearly 96 percent surge over the same period in 2005, according to Challenger, Gray & Christmas, Inc., an employment consulting firm based in Chicago.

The mortgage lending industry has not fared much better, with layoff announcements totaling 8,513 during the same period, a rise of over 70 percent year-over-year, according to data provided by the company.

...more...

[UpInArms]

18. Wal-Mart offers Chinese Credit Card

http://www.marketwatch.com/News/Story/4LlSWTJmnVG4x1Kk06cN9p3?dist=RNPullDown&symbol=&siteid=mktw

HONG KONG (MarketWatch) -- Wal-Mart Stores Inc. has partnered with China's Bank of Communications to offer the country's first credit card issued by a foreign retailer, according to a media report Monday.

The card signals an attempt by Wal-Mart (WMT : 48.22, -0.15, -0.3% ) , the world's largest retailer, to tap into China's small but growing credit card market, The Wall Street Journal reported in its Asian online edition. See Wall Street Journal Asian edition story (subscription required).

After its initial launch in six stores in Shanghai, Nanjing and Fuzhou, the card will be offered at Wal-Mart stores throughout China, The Journal reported.

The dual-currency card is usable anywhere, including outside of China.

There are currently 60 Wal-Mart stores in China, according to the company's Web site.

While fewer than 5% of Chinese consumers currently own credit cards, the market's size could reach $3.4 billion by 2010, according to research cited in the story.

...more...

[UpInArms]

19. pre-opening blather

08:58 am : S&P futures vs fair value: -0.2. Nasdaq futures vs fair value: -1.2. The market is poised for a flattish open, as today's headlines lack market-moving punch. The Current Account report, which showed a deficit of $218.4 billion versus $213.2 billion in the prior month, came and went with scant attention paid to it as the focal point this week remains Wednesday's FOMC meeting.

08:40 am : S&P futures vs fair value: -0.2. Nasdaq futures vs fair value: -0.5.

08:00 am : S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: +0.2. Futures versus fair value are signaling a relatively flat open for the cash market. While there isn't much in the way of market-moving news for investors to get excited about, a private equity consortium led by The Blackstone Group announced late Friday that it will acquire Freescale for $17.6 bln, which will keep investment banks in focus again this week.

[UpInArms]

20. 9:36 EST markets are open

Dow 11,544.20 16.57 (0.14%)
Nasdaq 2,232.60 2.99 (0.13%)
S&P 500 1,319.41 0.46 (0.03%)
10-Yr Bond 4.836% 0.038

NYSE Volume 92,240,000
Nasdaq Volume 226,500,000

gotta run!

:hi:

[spinbaby]

25. What happened at 1:00 to drop the markets?

Did the piehole open?

[stop the bleeding]

26. quick 4pm update

4:01<$COMPQ> Nasdaq Composite prelim close: 2,236, up 0.19 points
4:01<$RUT> Russell 2000 prelim close: 729, down 1 point
4:01<$INDU> Dow industrials prelim close: 11,556, down 5 points
4:00<$SPX> S&P 500 prelim close: 1321, up 2 points

flat day

[UpInArms]

28. back for the closing numbers and yada

Dow 11,555.00 5.77 (0.05%)
Nasdaq 2,235.75 0.16 (0.01%)
S&P 500 1,321.18 1.31 (0.10%)
10-Yr Bond 4.81% 0.012

NYSE Volume 2,389,541,000
Nasdaq Volume 1,979,823,000

If your life was in need of some excitement, Wall Street wasn't the place to look today. The major averages traded in tight ranges, making modest moves on either side of the unchanged mark that reflected a wait-and-see attitude on the part of traders ahead of a batch of economic data tomorrow, and more importantly, the FOMC meeting on Wednesday.

The energy sector generated the day's most compelling action as stock and commodity prices alike rebounded from what many participants saw as an oversold condition. At one juncture, the October crude futures contract hit a low of $62.85 per barrel, but then did an about-face on reports of supply concerns related to Iran's tangling with the U.N. and BP's indication that its Thunder Horse production platform won't be ready to start production after last year's hurricanes until the middle of 2008. October crude futures hit a subsequent high of $64.45 before ending the day at $63.76.

Energy stocks were in demand all session and paced the sector's 2.60% gain, which qualified it as the best-performing of the 10 economic sectors. The broader market, though, was unable to make much headway since there were only two other sectors -- Materials (+1.10%) and Industrials (+0.21%) -- that registered gains of any consequence.

In other developments, the day's most intriguing news item involved hedge fund Amaranth Advisors and the report that it suffered huge losses with its bets on the natural gas market. Fortunately, its problems don't appear to be systemic as the hedge fund, which was up nearly 30% entering the month and is now down 35% year-to-date, said in a letter to its investors that it has been able to meet all margin calls.

Technology (+0.02%) had been a pocket of strength earlier in the session on the back of reports that The Blackstone Group was leading a private equity consortium in a $17.6 billion acquisition of Freescale Semiconductor (FSL 39.26, +2.10) and news from Applied Materials (AMAT 17.78, +0.58) that it was accelerating its current stock buyback plan and initiating a new $5 billion repurchase program. The sector lost its early swagger in the afternoon session, succumbing to profit taking efforts on no news.

The Treasury market didn't have much swagger throughout the day as it too succumbed to profit taking. Catalysts for the selling interest included a weaker than expected net foreign purchases report for July and a comment from Treasury Secretary Paulson at the G-7 meeting downplaying the risk to the economy of a housing slowdown. Treasuries did manage to pare larger losses following a report on homebuilder confidence from the NAHB that checked in at a 15-year low.

On Tuesday the housing sector will again be a focal point when the Housing Starts data for August are released at 08:30 ET. Economists are expecting a decline to a 1.75 million annual rate from 1.795 million in the prior month. In addition, the market will be digesting the August Producer Price Index. Its effect on trading is likely to be diminished, however, by the realization that traders have already caught a glimpse of a friendly consumer price index and knowing that oil prices have continued to slide following the survey period.

ExxonMobil (XOM 66.30, +1.65) and Caterpillar (CAT 66.99, +1.56) were the only Dow components to move more than a point in a losing effort that saw IBM (IBM 82.24, -0.70) and Home Depot (HD 36.58, -0.64) sit atop the list of laggards. The latter component suffered in the wake of a Credit Suisse downgrade from Outperform to Neutral. DJ30 -5.77 NASDAQ +0.16 SP500 +1.31 NASDAQ Dec/Adv/Vol 1596/1406/1.98 bln NYSE Dec/Adv/Vol 1748/1520/2.08 bln

3:30 pm : With a half hour to go, the indices remain stuck in their narrow trading ranges. Generally speaking, the overall tone of today's session has been one of indecision, but that is not surprising with Wednesday's FOMC meeting on the horizon and the lack of any real market-moving news. One news item of added interest today has been the report about the huge losses suffered by hedge fund Amaranth Advisors due to its bad bets on the natural gas market. Up nearly 30% entering the month, the hedge fund is now reportedly down 35% year-to-date. DJ30 -3.77 NASDAQ -1.11 SP500 +1.44 NASDAQ Dec/Adv/Vol 1614/1369/1.69 bln NYSE Dec/Adv/Vol 1735/1508/1.80 bln