STOCK MARKET WATCH, Thursday December 28

[ozymandius]

Thursday December 28, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 753 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2193 DAYS
WHERE'S OSAMA BIN-LADEN? 1898 DAYS
DAYS SINCE ENRON COLLAPSE = 1859
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 7
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 December 27, 2006

Dow... 12,510.57 +102.94 (+0.83%)
Nasdaq... 2,431.22 +17.71 (+0.73%)
S&P 500... 1,426.84 +9.94 (+0.70%)
Gold future... 630.30 +3.40 (+0.54%)
30-Year Bond 4.78% +0.05 (+1.06%)
10-Yr Bond... 4.65% +0.05 (+1.11%)






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 Ryan Puplava

HINGING ON HOUSING

The US economy is based largely on the consumer. Consumer confidence is strongly tied to asset valuations, so today’s news releases for the Mortgage Bankers’ Association’s purchase applications index and New Home Sales were fairly important to gauging the possible strength of the US economy. Many investors and homeowners are asking the questions: “Has housing bottomed?" and "Will the market go into a recession?” These two questions reflect the consumers' concern for their two greatest assets: their home and their retirement portfolio. So what are the news releases telling us?

The Mortgage Banker’s Association’s Purchase Index measures applications at mortgage lenders, a leading indicator for housing construction and home sales. The purchase index fell 10.6 percent to 390.2 last week, previously 436.5 the week before and 463.8 in the week ending December 8th. The trend in the last three weeks has been a decline in applications after a quick surge the first week of December from 426.6 to 463. The fall in applications could not have been attributed to a rise in rates because the 30-year fixed mortgage averaged around 6.12 percent, only up 2 basis points last week. Of those applications 48.8 percent were refinancings. The index has been tracking near 400, plus or minus 20 points, for nearly six months. Altogether, it looked like the spike in lending applications the first week of December was short-lived and not the sign of a bottom in housing.

-cut-

The holiday season of consumption is over, and it could have been better. Past new home sales have helped to spark some buying in the market today, but lending applications are falling again and that indicates less buying and more housing inventory in the near future. To see continued strength in housing, we need to see growth in lending applications with a smaller percentage of refinancings. With too much supply and not enough demand, prices should continue to fall, yet a rebalancing may be already underway.

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

[ozymandius]

2. Today's Reports

8:30 AM Initial Claims 12/23
Briefing Forecast 315K
Market Expects 320K
Prior 315K

10:00 AM Consumer Confidence Dec
Briefing Forecast 102.5
Market Expects 102.0
Prior 102.9

10:00 AM Existing Home Sales Nov
Briefing Forecast 6.20M
Market Expects 6.15M
Prior 6.24M

http://biz.yahoo.com/c/e.html

[54anickel]

13. Weekly initial jobless claims rise to 317,000

Continuing U.S. jobless claims at highest level in nearly a year

http://www.marketwatch.com/news/story/us-weekly-initial-jobless-claims/story.aspx?guid=%7BBB838578-0185-4E26-B5D5-FC81AE0D2939%7D

WASHINGTON (MarketWatch) -- The number of U.S. workers filing new applications for state unemployment benefits rose slightly in the latest week, while continuing jobless claims climbed to their highest level in nearly a year, the Labor Department said Thursday.


Initial jobless claims rose by 1,000 in the week ended Dec. 23 to reach 317,000, the Labor Department said in a report.
But in a sign of slackening in the U.S. labor market, continuing claims, or people continuing to collect state unemployment benefits, rose by 16,000, to 2.53 million, in the week ended Dec. 16.

It's the highest level since Jan. 28.

Similarly, the four-week average of continuing claims rose to its highest level since Feb. 18, standing at 2.5 million.

Initial claims represent job destruction, while the level of continuing claims indicates how hard or easy it is for displaced workers to find new jobs.

more...

[54anickel]

14. Buck's not too happy with that

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

Last trade 83.58 Change -0.39 (-0.46%)

[54anickel]

26. Buck gets a 10:00 pump - must love those 10:00 reports

Last trade 83.83 Change -0.14 (-0.17%)

Settle Time 15:00 Open 83.90

Previous Close 83.97 High 84.03

Low 83.53 2006-12-28 10:11:45, 30 min delay

[54anickel]

24. US consumer confidence hits 8-month high in December

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-12-28T150015Z_01_NYA000072_RTRIDST_0_EMBARGOED-USA-ECONOMY-CONFIDENCE-URGENT.XML

NEW YORK, Dec 28 (Reuters) - U.S. consumer confidence rebounded in December, rising to an eight-month high as consumers' view of the labor market improved, a survey showed on Thursday.

The Conference Board said its index of consumer sentiment climbed to 109.0 in December -- its highest reading since April 2006 -- from an upwardly revised 105.3 in November.

Economists polled by Reuters on average had forecast a December reading of 102.0.

But Lynn Franco, director of the Conference Board Consumer Research Center, said there was little to suggest sharp improvement in overall economic activity in the fourth quarter of the year.

"Given the see-saw pattern in recent months, it is too soon to tell if this boost in confidence is a genuine signal that better times are ahead," Franco said.

more...

[54anickel]

25. U.S. existing home sales edge up in November

http://today.reuters.com/news/articleinvesting.aspx?type=economicNews&storyID=2006-12-28T150206Z_01_N28174780_RTRIDST_0_USA-ECONOMY-HOUSING-URGENT.XML

WASHINGTON, Dec 28 (Reuters) - The pace of existing home sales rose slightly in November hitting a 6.28 million-unit annual rate, according to a report from the National Association of Realtors on Thursday that modestly topped economists' expectations.

November saw the second consecutive rise in sales volume but the median home price dropped 3.1 percent, the fourth straight month of year-over-year fall in prices.

The inventory of homes for sale was down 1 percent at the end of November to 3.82 million units.

Analysts expected home resales to slow to 6.20 million-unit pace from the 6.24 million-unit rate in October.

[ozymandius]

3. Oil prices remain above $60 a barrel

LONDON - Oil prices rose Thursday, a day after dropping to the lowest level in a month amid depressed demand for home-heating fuels.

Light sweet crude for February delivery rose 22 cents to $60.56 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. February Brent crude on London's ICE Futures exchange rose 8 cents to $60.60 a barrel.

On Wednesday, crude futures settled below $61 a barrel for the first time since Nov. 28, when prices ended at $60.99. It was the fourth straight day of falling prices.

Natural gas prices also took a dive from lowered demand due to mild U.S. weather, settling Wednesday at $5.838 per 1,000 cubic feet, their lowest level in more than 12 weeks.

http://news.yahoo.com/s/ap/oil_prices

[ozymandius]

4. BP joins renewable power campaign group

BP is to throw its weight behind the renewable power industry by joining its main campaigning body. Its decision to join the BWEA, formerly the British Wind Energy Association, early in the new year is a seen by the alternative energy sector as important because BP always had close links with government.

Britain's biggest company is going to ensure it wields influence inside the BWEA by becoming a "sponsor member", which means it will be given a seat on the board.

-cut-

Neither BWEA nor BP was willing to comment but one BWEA member, who asked not to be named, welcomed the move, saying BP was a "missing part of the jigsaw". Shell has been a member for some years and other big power producers, such as Centrica, owner of British Gas, E.ON of Germany and Scottish Power, have also joined.

BP has no wind farms in Britain and very few such assets outside, apart from a couple of experimental plants in the Netherlands. But it established an alternative energy division last year and has set itself ambitious targets to develop solar and other operations.

http://business.guardian.co.uk/story/0,,1978793,00.html

[hatrack]

21. Will they also throw their weight behind the infrastructure maintenance industry?

Just asking . . .

[54anickel]

38. Oil prices steady despite supply plunge

Crude inventories fall by 8.1 million barrels, but drop not entirely unexpected as last week's fog cut off Gulf shipments.

http://money.cnn.com/2006/12/28/markets/oil_eia/index.htm?source=yahoo_quote

NEW YORK (CNNMoney.com) -- Oil prices held steady Wednesday after a government report showed supplies of crude oil posting a big but not unexpected drop and gasoline stocks making a healthy rebound.

U.S. light crude for January delivery rose 18 cents to $60.52 a barrel on the New York Mercantile Exchange. Oil traded 16 cents higher just prior to the report's release, but has been see-sawing in light trading.

In its weekly inventory report, the Energy Information Administration said crude stocks sank by 8.1 million barrels last week. Analysts were looking for a drop of 1.8 million barrels, according to Reuters.

Distillates, used to make heating oil and diesel fuel, rose by 500,000 barrels, while gasoline supplies gained by 3 million barrels. Analysts were looking for a 400,000 barrel build in distillates supplies and a 700,000 barrel gain in gasoline stockpiles.

The big decline in crude stocks, while far more than analyst estimates, was not entirely unexpected.

Last week a thick bank of fog settled over Houston shipping channels, preventing oil delivery to some of the country's biggest refiners.

more...

[ozymandius]

5. Stock futures down after 2 days of gains

LONDON - U.S. stock futures edged lower on Thursday, with traders expecting profit taking after two days of strong post-Christmas gains and with Apple Computer likely in for another volatile session on concerns over its stock-option granting practices.

Dow Jones futures recently fell 14 points, S&P 500 futures edged 2.3 points lower, and Nasdaq futures slipped 3.8 points.

Unexpectedly strong housing data and year-end buying helped propel U.S. stocks on Wednesday. The Dow industrials hit another new record after a 102 point advance, the S&P 500 rose 9.9 points and the Nasdaq Composite rose 17.7 points in a light day of trading.

After the surprise on the new-home sales figures, traders will be eyeing existing home sales during November, which probably fell to 6.15 million from 6.24 million. That data, as well as a Chicago-area manufacturing gauge, are due out at 10 a.m. EST.

http://news.yahoo.com/s/ap/20061228/ap_on_bi_st_ma_re/wall_street

[ozymandius]

7. Stocks search for stamina

NEW YORK (CNNMoney.com) -- Stocks looked set to give back some gains Thursday after the Dow hit a record high Wednesday - closing above 12,500 for the first time ever.

Stock futures, which predict the direction of U.S. markets at the open, were lower in early trading.

Weighing on futures, Apple (Charts) fell about 3 percent in pre-market trade Thursday after the Financial Times reported that the company's board didn't approve stock options given to Apple's iconic founder and chief executive Steve Jobs and then falsified documents to show that a board meeting to approve those options had taken place.

-cut-

Apple stock sold off early Wednesday after company executives were accused of falsifying stock option documents, although the exact nature of the alleged misdeeds was not known. The stock rebounded in late-day trade as analysts said the legal risks were small and the fuss wouldn't hinder the company's financial performance.

http://money.cnn.com/2006/12/28/markets/stockswatch/index.htm?postversion=2006122807

[ozymandius]

6. Analysts: Toyota, Ford Unlikely to Merge

TOKYO (AP) - Stock in Japan's Toyota Motor Corp. and Ford Motor Co. jumped overnight on news that their chief executives met recently, but analysts Thursday said ties between the two were likely to be limited to Toyota passing green technology on to Ford.

Reports that Toyota Chairman Fujio Cho had recently met in Tokyo with Ford Motor Co. President and Chief Executive Officer Alan Mulally at the latter's request sparked investor hopes about a potential alliance between the two rivals and sent their shares sharply higher Wednesday.

Ford's share price rose 10 cents to $7.59 Wednesday on Wall Street, while Toyota shares spiked $2.39 to $134. Toyota also gained ground on the Tokyo Stock Exchange, adding 1.9 percent to finish Wednesday at 7,920 yen ($66.68).

Neither company offered any details about what the two executives had discussed, though several media reports said the talks appear to have focused on Toyota's environmental technology.

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&Date=20061228&ID=6303845

[ozymandius]

8. Ex-U.S. interior secretary joins Shell

NEW YORK (Reuters) -- Royal Dutch Shell said on Wednesday that it had hired former U.S. Interior Secretary Gale Norton as general counsel for the Anglo-Dutch oil company's unconventional resources division.

Norton would provide and coordinate legal services for Shell, the company said in a statement.

http://money.cnn.com/2006/12/28/news/international/rds.reut/index.htm?postversion=2006122807

very short

[ozymandius]

9. Goldman raises $6.5 bln for infrastructure fund

NEW YORK (Reuters) - Goldman Sachs Group Inc. (GS.N: Quote, Profile , Research) said on Thursday it has raised more than $6.5 billion for a global infrastructure fund for investments in toll roads, airports and electric utilities.

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyID=2006-12-28T121711Z_01_WEN1627_RTRUKOC_0_US-GOLDMANSACHS-INFRASTRUCTURE.xml

..short blurb..

[texpatriot2004]

10. K & R nm

[54anickel]

11. Investors too complacent on world economy: IMF

http://today.reuters.com/news/articlebusiness.aspx?type=ousiv&storyID=2006-12-27T204412Z_01_N27456032_RTRIDST_0_BUSINESSPRO-ECONOMY-IMF-OUTLOOK-DC.XML&from=business

WASHINGTON (Reuters) - Global economic growth is on a solid track but still faces risks, the IMF said on Wednesday, cautioning that the apparent complacency of many investors could trigger a market upset if something caused them to take fright.

"Market sentiment has gravitated toward a central scenario for a benign slowdown which keeps inflationary pressures contained," the International Monetary Fund said in an update to its bi-annual Global Financial Stability Report.

"But downside risks remain and there have been changes in underlying financial conditions that warrant continued vigilance," the IMF said. It noted debt leverage levels have grown at private equity funds, while hedge funds that sold financial options may be exposed to sudden market swings.

By and large, though, the outlook was encouraging. U.S. growth has slowed as the housing market has cooled, but there appears to have been little spillover from this to the rest of the economy, while activity abroad has gathered pace.

On the other hand, a sharp fall in volatility levels in financial markets, as well as a concentration of risk as investors adopt similar trading strategies, could be storing up trouble for the future.

more...

[Ghost Dog]

33. China fears disasters, grain cut from global warming

http://today.reuters.com/news/articlenews.aspx?type=scienceNews&storyid=2006-12-27T054458Z_01_PEK78904_RTRUKOC_0_US-CHINA-CLIMATE.xml&src=rss&rpc=22

BEIJING (Reuters) - Global warming threatens to intensify natural disasters and water shortages across China, driving down the country's food output, the Chinese government has warned, even as its seeks to tame energy consumption.

A forthcoming official assessment of the effects of global climate change on China will warn of worsening drought in northern China and increasing "extreme weather events", according to the Ministry of Science and Technology's Web site (www.most.gov.cn) on Wednesday.

A deputy director of the National Climate Center, Luo Yong, was blunt about the risks for China's food production.

"The most direct impact of climate change will be on China's grain production," he said on Tuesday, according to the Science Times newspaper. "Climate change will bring intensified pressure on our country's agriculture and grain production."

The official report promises to stir debate about whether and how China can balance its ambitious goals for economic growth with steps to rein in rising greenhouse gas emissions from industry and cars, which keep heat in the atmosphere and threaten to dramatically increase the planet's average temperatures.

/...

[Ghost Dog]

34. President Hu calls for more efforts in energy saving

http://news.xinhuanet.com/english/2006-12/26/content_5534895.htm

BEIJING, Dec. 26 (Xinhua) -- Chinese President Hu Jintao has called for more efforts in building an energy-efficient and environmentally friendly society.

At a meeting of the Political Bureau of the Central Committee of the Communist Party of China, Hu said the Party and society must realize the importance and urgency of energy efficiency, which is the foundation of the survival and development of human society.

Saving resources and energy was crucial for China in pursuit of sustainable development and economic and national security. It required more attention and effort for the sake of the nation and future generations, he said.

During the 11th Five-Year Plan (2006-2010), energy efficiency should be realized in all sectors and through production, distribution and consumption. Progress should be made in a short period.

Production that seriously polluted the environment and consumed resources must be eliminated, and public awareness of energy saving and environmental protection should be raised, he said.

/..

[Ghost Dog]

36. China to use foreign reserves to build up strategic resource base, vice premier says

http://www.iht.com/articles/ap/2006/12/27/business/AS_FIN_China_Strategic_Resources.php

SHANGHAI, China: China will take advantage of its massive foreign exchange reserves to expand its stock of strategic resources such as oil and minerals, state media reported Wednesday, citing a top economic official.

Vice Premier Zeng Peiyan told leaders of the national legislature that the government plans to step up exploration for key resources such as oil, gas and coal. It also intends to use the opportunity afforded by the country's more than US$1 trillion in foreign reserves to improve strategic resource bases, the state-run newspaper China Business News and other reports said.

The reports did not provide details on exactly how the government would use funds backed by the foreign exchange reserves, which cannot directly be used for such purposes because they belong to the central bank.

/...

[Ghost Dog]

37. Japan's output rises in November but pace disappoints

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/249509/1/.html

TOKYO: Japanese industrial output in November grew at a slower than expected pace, raising concerns that exports are losing steam although autos and especially electronics offer a glimmer of hope.

Analysts said the data put back in focus worries about the health of the global economy, whose appetite for Japanese products is still growing but not as fast as previous predictions.

Industrial output rose 0.7 percent in November compared with October, the trade ministry said, below the market forecast of a 1.1 percent gain and far lower than the government's earlier projection of a 2.7 percent rise.

The ministry kept its assessment that production would rise again in December but it predicted a fall in January due to an expected slowdown in the transport, machinery and metal products sectors. "The data is maintaining a relatively solid pace," said Chief Cabinet Secretary Yasuhisa Shiozaki.

...

But manufacturers wound up with bigger inventories than expected as they had kept strong production levels expecting higher foreign demand, said Tatsushi Shikano, an analyst at Mitsubishi UFJ Research and Consulting.

Industrial shipments rose 1.6 percent from October, just outpacing inventories which gained 1.4 percent.

"The data show the world economy is slowing down with Japan's exports losing momentum," Shikano said.

/...

[Ghost Dog]

39. Nikkei ends flat; steel stocks up as recent gainers dip

http://today.reuters.com/news/articleinvesting.aspx?type=hotStocksNews&storyID=2006-12-28T075633Z_01_T34271_RTRUKOC_0_US-MARKETS-JAPAN-STOCKS.xml

TOKYO (Reuters) - The Nikkei share average ended flat on Thursday as Nippon Steel Corp. (5401.T: Quote, NEWS , Research) and its peers drew buyers, while Canon Inc. (7751.T: Quote, NEWS , Research) and other recent gainers fell on concern that their prices may have advanced too quickly.

Investors unloaded some stockholdings after slightly weaker-than-expected industrial output data and ahead of the New Year holiday. The Tokyo market will be open for a half-day on Friday and resume trading on January 4 for a half-day.

The Nikkei <.N225> was up 0.01 percent, or 1.66 points, at 17,224.81. The broader TOPIX index <.TOPX> was up 0.12 percent at 1,678.91.
Photo

The top news, photos, and videos of 2006. Full Coverage

Steel stocks advanced. The steel subindex (.ISTEL.T: Quote, NEWS , Research) has so far been the best performing sector for 2006, up 31 percent.

"Investors are looking for stocks that have cheap valuations and high dividends. Mergers and acquisitions are also another factor, and steel stocks fit all the descriptions," said Yasuo Yabe, a director of sales at Meiwa Securities.

/...

[Ghost Dog]

50. European stocks end flat

http://www.ft.com/cms/s/a7151032-965b-11db-8ba1-0000779e2340.html

There was some much-needed good news for Siemens shareholders on Thursday.

The industrial conglomerate, whose shares have come under pressure recently from a corruption scandal, announced it had won a €7.1bn contract, along with IBM of the US, to modernise the non-military IT systems of Germany’s armed forces.

Siemens will receive a 60 per cent share of the deal, the biggest contract ever won by the company, with IBM taking the rest.

...

The FTSE Eurofirst 300 index edged 0.34 points higher to 1,488.23, within a whisker of the 5½-year closing high of 1,489.09 recorded a fortnight ago. In Frankfurt, the Xetra Dax index touched its highest level since January 2001 before trimming its advance to end the session barely changed.

European investors shrugged off strong reports on US consumer confidence and existing home sales.

/...

[Ghost Dog]

52. Euro hits record high against yen

http://www.ft.com/cms/s/b80d3818-965d-11db-8ba1-0000779e2340.html

The euro hit a fresh record high against the yen and advanced against the dollar on Thursday after a European Central Bank policymaker struck a hawkish tone on interest rates.

Yves Mersch, ECB governing council member, heightened expectations that the central bank would move to raise eurozone interest rates next year, saying that rates remained low in historical terms and that monetary policy remained accommodative.

The comments helped the euro rise 0.2 per cent to $1.3140 against the dollar by mid-afternoon in New York. Meanwhile the single currency gained 0.4 per cent to Y156.40 against the yen, having hit an all-time high of Y156.76 earlier in the session.

The yen came under pressure against the dollar early in the session after data revealed that Japanese industrial production rose by less than forecast in November.

However, the yen recouped some of its losses amid continuing speculation in the Japanese press that the Bank of Japan was set to discuss the possibility of raising rates by 25 basis points to 0.5 per cent at its January policy meeting.

/...

[Ghost Dog]

53. French Fin Min Breton Upbeat On French Economy -Report

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20061228\ACQDJON200612281351DOWJONESDJONLINE000616.htm&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD&chk=unchecked&lang=&link=&headlinereturnpage=http://www.international.na

PARIS -(Dow Jones)- Nearly all France's economic indicators are moving in the right direction, French Finance Minister Thierry Breton is quoted as saying Thursday.

"All the indicators are improving, whether they be growth and its main engines (consumption and investment), employment or purchasing power," Breton is quoted as saying in an interview published on the Web site of Challenges, a weekly magazine.

Breton reaffirmed his belief that the French economy will grow somewhere between 2% and 2.5% in 2006, most likely at the lower end of the range.

He noted that the French jobless rate has ebbed by a full percentage point so far this year and observed that the national statistics institute expects it to reach 8.6% by the end of this year, the lowest level since 1983. French unemployment data for November are expected to be released later Thursday.

Breton also noted that the purchasing power of French citizens rose by 2.5% according to latest published data, and said he thinks the trend will gather momentum in 2007.

/...

[Ghost Dog]

54. Britain to repay final World War II loan instalments

http://www.radionz.co.nz/news/latest/200612290750/britain_to_repay_final_world_war_ii_loan_instalments

Britain said it will on Friday repay the final instalments of loans taken out at the end of World War II to finance reconstruction.

The payments of $US83.25 million to the United States and $US22.7m to Canada will close the final chapter of the war and mean that in total the country has paid close to twice what it borrowed in 1945 and 1946.

Britain borrowed a total of $US4.3 billion from the United States in 1945, followed in 1946 by a loan of $US1.2b from Canada - both at an interest rate of 2%.

During World War II, the United States effectively gave Britain billions of dollars worth of goods under the lend-lease programme. But that abruptly ended in September 1945 despite the fact Britain was on its knees economically after six years of warfare.

Despite the heavily discounted rate of interest on the loans, in the intervening years Britain failed to make any payments on six occasions because of balance of payments problems - in 1956, 1957, 1964, 1965, 1968 and 1976.
Total payments

To date the country has paid a total of $US7.5 billion to the United States and $US2b to Canada.

The Treasury noted that there were still World War I debts owed to and by Britain; but no action had been taken on either count since President Herbert Hoover declared a moratorium in 1931 during the Great Depression.

/.

[54anickel]

12. Housing Bears May Just Have It Right for 2007

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_sperling&sid=aEMGTIycjgH4

Dec. 28 (Bloomberg) -- For economic forecasters divided over the strength of the economy in 2007, the elephant in the room remains the house, or more precisely, housing.

While very few forecasters predict growth of more than 3 percent for next year, and most agree that the cooling of the housing boom may hurt consumers, one major question remains: Is the worst over?

Housing played an outsized role in the most recent recovery. Beyond the surge in residential investment -- which accounts for 5 percent to 6 percent of the economy -- rising home prices and billions of dollars in home-equity extraction fueled household spending at a time of stagnant wages and low private saving.

Few dispute that a slumping housing market will have a depressive effect on consumer spending. What is less clear is whether we can now officially declare a soft landing, or whether we should expect more turbulence from the unraveling of the housing boom.

Some of the smartest economists in the U.S. now say the worst of the housing cycle is over. Indeed, two-thirds of economists in a recent Wall Street Journal survey answered affirmatively that ``the worst of the housing bust is behind us.'' Their case is that even after a 17 percent fall in new-home prices and a significant decline in home-equity withdrawal in the third quarter, consumer spending defied gravity and remained at 3.1 percent.

more...

[Systematic Chaos]

15. And this after reading on DU yesterday that subprime foreclosures...

...could end up exceeding half of all such morgages taken out over the last couple of years.

No, something like that wouldn't hurt the economy one bit! :eyes:

[54anickel]

30. Lehman Sub-Prime Mortgage Bonds May Be Downgraded (Update1)

http://www.bloomberg.com/apps/news?pid=20601009&sid=aFypypTBULf0&refer=bond

Dec. 27 (Bloomberg) -- Low-rated bonds created by Lehman Brothers Holdings Inc. this year through four securitizations of mortgages and home-equity loans to the riskiest U.S. consumers may be cut by Moody's Investors Service.

The potential for losses has ``rapidly increased'' as consumers face financial difficulties, New York-based Moody's said in a Dec. 21 statement. Ratings on Lehman bonds from three securitizations of ``sub-prime'' home loans made last year also were put on Moody's list of possible downgrades. A total of 30 bond issues with $416 million in balances were affected.

Moody's and Standard & Poor's said last month they might cut their initial ratings on bonds from 2006 securitizations of sub-prime mortgages made by Fremont Investment & Loan. The speed with which they acted reflects how large an impact a housing slump and aggressive lending may have on such bonds.

Investors are bracing for more warnings from rating firms about sub-prime bonds less than a year old, which is ``quite a departure relative to their past practice,'' said Dean T. Smith, a portfolio manager at Highland Financial Holdings Group LLC, a New York-based company with about $1 billion under management that specializes in mortgage-related bonds.

The Lehman bonds ``caught our attention'' because of the high levels of late payments and foreclosures piling up early in the loans' lives relative to the protection for bondholders they carry, according to Nicolas Weill, a managing director at Moody's. ``Every time there is a new reporting period we sweep through the results and see what needs to be done.''

more...

[ozymandius]

16. Bonds' Carefree Days Get a Bit Cloudy

The bond market's vault doors were flung wide open to U.S. corporations in 2006, but look for Wall Street banks to be a little more stingy in 2007.

U.S. companies sold more than $813 billion in bonds in 2006, the biggest year ever for corporate borrowing, says Thomson Financial. The market for junk bonds was particularly hot, with the dollar value of high-yield bonds sold to investors rising 53% from the prior year to $127 billion.

-cut-

In 2006, Wall Street bankers were all too eager to please their corporate customers and feed the borrowing frenzy, which also went to pay for stock buybacks and special dividends. Banks and brokers raked in $4.97 billion in bond underwriting fees, a 46% gain over 2005 -- a revenue bonanza that helped fuel a record year of earnings on Wall Street, reports Dealogic, a market data service.

http://www.thestreet.com/_tsclsii/newsanalysis/businessinsurance/10329598.html

[ozymandius]

17. Gone for the day.

I thought that I would have the week off. But work calls. See you this evening and have a great day!

Ozy :hi:

[54anickel]

18. Bye Ozy, have a good day. I'll be floating in and out today as well.

We'll have to see if they can hold the 12,500 marker until the big dogs return to their desks.

[54anickel]

19. The Biggest Private Equity Firms Are Turning Their Focus to Asia

http://www.nytimes.com/2006/12/27/business/worldbusiness/27texas.html?_r=1&adxnnl=1&oref=slogin&ref=business&adxnnlx=1167315798-lRcZUSIbF8Rka7lZwo49fA

HONG KONG, Dec. 26 — After the extraordinary growth in private equity deals in the United States and Europe, Asia is emerging as the next frontier. The top firms are already poised to take advantage.

That, at least, is the view of David Bonderman, a co-founder of the Texas Pacific Group, who at a recent conference here referred to an “explosion” in the size of deals in Asia. Despite a surge in the number of homegrown private equity firms, he predicted that just 10 global firms, Texas Pacific among them, would end up leading the Asian market.

“It’s going to be a global market dominated by the same global players who dominate the marts in America and Europe,” he said.

For such firms, Asia offers a rich bounty. This year, private equity firms committed $28.9 billion through the first nine months of the year to investments in Asian companies outside Japan — a 78 percent increase from a year earlier, according to Dealogic, a financial data provider.

snip>
The concept of private equity is not always an easy sell in Asia, where companies are often conservatively managed and where some governments see businesses primarily as vehicles for nation building. Moreover, many Asian companies are family firms committed to providing wealth for future generations.

But private equity firms and their investors — typically pensions, endowments and other institutions — usually are not looking to hold on to companies for long. They buy a minority stake in a company and borrow enough to gain control, with the idea of either selling the company or taking it public in 3 to 10 years.

more...

[54anickel]

20. Bank Loans Lure KKR, Carlyle With Junk-Bond Returns

http://www.bloomberg.com/apps/news?pid=20601109&sid=aNaTCOk5rayw&refer=exclusive

Dec. 27 (Bloomberg) -- Investors are finding junk bond yields with about half the risk in an unlikely place: the U.S. loan market.

Borrowers with non-investment-grade ratings such as photography company Eastman Kodak Co. and tissue maker Georgia Pacific Corp. pay interest of 7.80 percent on average for loans, a quarter of a percentage point below yields on bonds with similar ratings. The gap is the narrowest in eight years, according to data compiled by Lehman Brothers Holdings Inc.

What makes loans more attractive than bonds to many investors is that they are secured by company assets. Creditors have recovered 71 percent of their principal in a default with loans, compared with 38 percent for speculative-grade, or junk, bonds, Moody's Investors Service says. Unlike bonds, the only way for most individuals to buy loans is through a mutual fund.

``The risk-return of high-yield bonds versus bank debt is out of whack,'' said Tyler Chan, a director of research for San Mateo, California-based mutual fund firm Franklin Resources Inc., who started his career in the lending department at Citibank 30 years ago. ``We are telling our clients to diversify and put some of their investments in bank debt.''

Over the past 10 years loan rates have averaged 2.30 percentage points less than junk bond yields, according to Lehman. The difference was 1.47 percentage points in January.

Pension funds, insurers and individual investors are joining New York-based JPMorgan Chase & Co. and Bank of America Corp. of Charlotte, North Carolina, to provide so-called leveraged loans, which swelled 62 percent to $480 billion this year.

more...

[54anickel]

22. Will the dam break in 2007?

http://commentisfree.guardian.co.uk/joseph_stiglitz/2006/12/will_the_dam_break_in_2007.html

snip>

Perhaps most importantly for the world, voters in the United States gave a vote of no confidence to President George W Bush, who will now be held in check by a Democratic Congress.

When Bush assumed the presidency in 2001, many hoped that he would govern competently from the centre. More pessimistic critics consoled themselves by questioning how much harm a president can do in a few years. We now know the answer: a great deal.

Never has America's standing in the world's eyes been lower. Basic values that Americans regard as central to their identity have been subverted. The unthinkable has occurred: an American president defending the use of torture, using technicalities in interpreting the Geneva Conventions and ignoring the Convention on Torture, which forbids it under any circumstances. Likewise, whereas Bush was hailed as the first "MBA president," corruption and incompetence have reigned under his administration, from the botched response to Hurricane Katrina to its conduct of the wars in Afghanistan and Iraq.

In fact, we should be careful not to read too much into the 2006 vote: Americans do not like being on the losing side of any war. It was this failure, and the quagmire into which America had once again so confidently stepped, that led voters to reject Bush. But the Middle East chaos wrought by the Bush years also represents a central risk to the global economy. Since the Iraq war began in the 2003, oil output from the Middle East, the world's lowest-cost producer, has not grown as expected to meet rising world demand. Although most forecasts suggest that oil prices will remain at or slightly below their current level, this is largely due to a perceived moderation of growth in demand, led by a slowing US economy.

Of course, a slowing US economy constitutes another major global risk. At the root of America's economic problem are measures adopted early in Bush's first term. In particular, the administration pushed through a tax cut that largely failed to stimulate the economy, because it was designed to benefit mainly the wealthiest taxpayers. The burden of stimulation was placed on the Federal Reserve Board, which lowered interest rates to unprecedented levels. While cheap money had little impact on business investment, it fuelled a real estate bubble, which is now bursting, jeopardising households that borrowed against rising home values to sustain consumption.

more...

[Ghost Dog]

42. Yes. There are some interesting comments in the thread on this Stiglitz piece.

I particularly enjoyed this one (think about it, bearing in mind the term 'working-class' should these days include the so-called 'middle-class' in advanced capitalist societies - ie. all people who, whether they have a little capital or quite a lot, simply must be in employment (or self-employed) to make a living (as opposed to that small minority that acquires so much power and pulls so many strings by living off large amounts of invested capital).

Commodities, money, gold - all of them only reflect with various explainable distortions the social labour of human beings. Holding gold will be of no use if some bandit blows your head off to take it from you. If the dollar capsizes, some other currency or gold will take over till the bandits do. But all that is beside the point. The labour that gives value to all these measurers of value is in the hands of the working class - and as soon as they realize this and take control of their own labour to produce for their own needs and priorities, it's bye-bye capitalist system and capitalist priorities (barbaric wars, obscene poverty and criminally ostentatious riches).

Capitalism doesn't work. Neither by itself (neo-liberalism, unfettered imperialism, fascist dictatorship) or with bourgeois-sanctioned crutches (Keynesianism, welfare-state controls and union-company deals).

Time to try a society based on working-class ownership and working-class priorities, rid of the private ownership of social production and the land.

Doesn't anybody react to the incredible shrinking horizons of "our" bourgeois politicians and pundits??? None of them has anything coherent to say about the future. They don't even dare think ten months in advance, let alone ten years or ten decades.

The present setup is simply a "permanent catastrophe" being played out in frenzied slow-motion.

http://commentisfree.guardian.co.uk/joseph_stiglitz/2006/12/will_the_dam_break_in_2007.html#comment-353584

[Ghost Dog]

43. Or, say, this one:

(Hah hah, what a thread! But must click off now. :bye:

What people don't understand is that the US economy isn't liberal or capitalist. It's a one-of-a-kind creature, a national socialist economy fueled by free money.

Let me start by explaining "free money." When the US was bankrupted by the North Vietnamese resistance to its neocolonial war, it unilaterally ditched the US greenback's gold convertibility - one of many casual unilateral violations of solemn treaties by the US - and floated the dollar. What currencies "float" on is mainly the issuing country's economic power and financial attractiveness. The US had at that time just lost the position of top exporter to Japan and its trade balance had just started its inexorable trip southwards.

However the US dollar did not become worthless, the US did not go begging to the IMF, and no belt-tightening measures were imposed on Americans. That's because by promising to the rest of the world, in 1945, to maintain the dollar's 1 to 1 convertibility to gold, the US had made it into the world's reserve currency. When the US reneged on its commitment, the world had no other reserve currency to turn to. So in effect Richard Nixon gave to America the right to print Monopoly money and use it as real money.

To see how the US economy runs you have to follow this fake money. One enormous stream runs through state-owned banks called Fannie Mae and Freddie Mac and ends up in homeowners' pockets. In effect, the Fed prints money and distributes it free of interest through these gigantic state banks.

Another enormous stream goes out of the federal budget and disappears into the Pentagon. Much of this is pocketed by corrupt bureaucrats and politicans: The GAO says the total amount of money "lost" by the Pentagon is over $3 trillion.

The lions' share goes into propping up uncompetitive US industries with pork-barrel "defense" procurements. When Boeing is in danger of being wiped out by Airbus, the Pentagon comes to the rescue. When the dot coms bomb, the techies get hired by the Pentagon to dream up star wars systems. Who cares if they don't work what counts is to keep the money flowing.

This is more or less exactly how Nazi Germany used to run its economy. The main difference is that the nazis actually had to earn or steal their money; they couldn't just print some whenever they needed it like the Yanks do.

http://commentisfree.guardian.co.uk/joseph_stiglitz/2006/12/will_the_dam_break_in_2007.html#comment-353592

[54anickel]

23. 9:47 - opening numbers for the casino

Dow 12,500.56 10.01 (0.08%)
Nasdaq 2,425.58 5.64 (0.23%)
S&P 500 1,424.86 1.98 (0.14%)
10-yr Bond 4.6460% 0.0080
30-yr Bond 4.7700% 0.0130
NYSE Volume 120,048,000
Nasdaq Volume 87,533,000

09:40 am : Market is off to a sluggish start with the major indices showing little change. After yesterday's rally, some early profit taking can be expected, but with a batch of economic data on the near horizon that includes Existing Home Sales, Consumer Confidence, and the Chicago Purchasing Manager's Index at 10:00ET, participants are in more of a wait-and-see mode at this point before they make any concerted moves.DJ30 +2.65 NASDAQ -1.88 SP500 -0.71

09:14 am : S&P futures vs fair value: -1.5. Nasdaq futures vs fair value: -5.0.

09:05 am : S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: -5.0. Market remains poised for a slightly lower open, but there has been a bit of improvement in the wake of the weekly initial claims report. Although claims rose 1K to 317K, the 4-week moving average dipped to 315,750 from 326,000 which continues to reflect a tight labor market.

08:30 am : S&P futures vs fair value: -2.3. Nasdaq futures vs fair value: -6.8.

08:00 am : S&P futures vs fair value: -2.3. Nasdaq futures vs fair value: -6.8.

06:18 am : S&P futures vs fair value: -2.9. Nasdaq futures vs fair value: -6.5.

[54anickel]

27. Cloned Cows and Pigs Safe to Eat, U.S. Agency Says (Update1)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJiXgyrkaQ9k&refer=home

Dec. 28 (Bloomberg) -- Meat and milk from cloned pigs, cows and goats may soon be cleared for sale in the U.S. after regulators determined that eating genetically duplicated farm animals doesn't pose safety risks for consumers.

The Food and Drug Administration proposed today that cloned animal products be sold without separate safeguards based on studies showing they pose no more risks than natural-born goods. Dairy producers urged the agency to delay a final decision for further study, citing polls suggesting Americans disapprove of cloning and won't buy food that comes from a lab.

``People need to trust their milk products,'' said Susan Ruland, spokeswoman for the Washington-based International Dairy Foods Association, in a Dec. 26 telephone interview. ``There's no indication that farmers are rushing to use this technology.''

U.S. consumers spend $90 billion a year on dairy products and $71.2 billion on beef, according to industry estimates. The FDA asked producers to keep adhering to a voluntary agreement to keep cloned animals and their offspring out of the food supply while regulators seek public comment on its proposal.

Consumers, producers and other interested parties will have 90 days to comment after the FDA publishes a draft risk assessment, a proposed risk management plan and draft guidance to the industry in the Federal Register on Jan. 2. The documents were place on advance display today.

more...

[54anickel]

28. 10:46 and it appears a range has been settled upon. Could put your

eye out on those charts during the first couple of hours.

Dow 12,495.67 14.90 (0.12%)
Nasdaq 2,425.38 5.84 (0.24%)
S&P 500 1,424.41 2.43 (0.17%)
10-yr Bond 4.7040% 0.0500
30-yr Bond 4.8290% 0.0460
NYSE Volume 398,989,000
Nasdaq Volume 344,691,000


Blatherers are still speechless :shrug:

[54anickel]

29. Treasuries Fall After Unexpectedly Strong U.S. Economic Reports

http://www.bloomberg.com/apps/news?pid=20601009&sid=aTLyRlW9YBsI&refer=bond

Dec. 28 (Bloomberg) -- U.S. Treasuries fell, pushing the benchmark 10-year note's yield to a seven-week high, after industry reports on consumer confidence, existing home sales and Midwest manufacturing were stronger than economists expected.

The reports curbed speculation a slowing economy will prompt the Federal Reserve to cut interest rates in the next three months. Yields also rose as dealers prepared to bid on the government's monthly auction of five-year notes at 1 p.m.

``This removes the probability of a Fed ease in the first quarter,'' said Joseph Di Censo, a fixed-income strategist at Lehman Brothers Inc. in New York. ``We disagree with the bond market,'' which continues to price in some chance of a rate cut before April.

The 10-year note's yield, which moves inversely to its price, rose 5 basis points, or 0.05 percentage point, to 4.70 percent at 10:32 a.m. in New York, reaching the highest since Nov. 6, according to Cantor Fitzgerald LP. The price of the 4 5/8 percent security maturing in November 2016 fell about 3/8, or $3.75 per $1,000 face amount, to 99 11/32.

The $13 billion of five-year notes to be sold at 1 p.m. New York time today also yielded 4.70 percent in pre-auction trading. The government yesterday sold $20 billion of two-year notes at yields higher than traders anticipated, indicating demand was weaker than they expected.

Home Sales Rise

more...

[citizen snips]

44. U.S. Stocks Fall for 1st Time in Three Days; Banks, Apple Drop

Dec. 28 (Bloomberg) -- U.S. stocks fell for the first time in three days as stronger-than-expected reports on consumer confidence and home sales reduced speculation that the Federal Reserve will cut interest rates next year.

``The economy's going to exhibit strength above everyone's expectations,'' said Keith Wirtz, who helps manage $21 billion as chief investment officer at Fifth Third Asset Management in Cincinnati. ``That's the news the market is trying to digest right now and maybe the reason why it's selling off.''

Citigroup Inc. led banks lower on expectations that lower rates, which would support their profits, aren't imminent. Apple Computer Inc. paced a drop by technology shares as the Financial Times reported that its Chief Executive Officer Steve Jobs was given stock options in 2001 without board authorization.

The Standard & Poor's 500 Index lost 3.92, or 0.3 percent, to 1422.92 as of 12 p.m. in New York. The Dow Jones Industrial Average slipped 24.83, or 0.2 percent, to 12,485.74. The Nasdaq Composite Index decreased 8.91, or 0.4 percent, to 2422.31.

more...
http://www.bloomberg.com/apps/news?pid=20601084&sid=ai_xK60jE89g&refer=stocks

[citizen snips]

31. After rally, a retreat

Major gauges slip day after Dow closed at highest point ever; Apple slips on options woes; trio of economic reports raises concerns about Fed rate policy.

NEW YORK (CNNMoney.com) -- Stocks slipped Thursday morning, retreating one session after the Dow industrials index hit its highest close ever, as investors mulled Apple's options woes, rising Treasury bond yields and a trio of upbeat economic reports.

The Dow Jones industrial average (down 16.98 to 12,493.59, Charts) lost a few points over an hour into the session, after ending the previous session at its highest point ever, above 12,500.

The stock options investigation shines a bright light on Apple. CNN's Ali Velshi is 'Minding Your Business'. (December 28)

The broader S&P 500 (down 2.38 to 1,424.46, Charts) index lost 0.2 percent.

The Nasdaq (down 5.57 to 2,425.65, Charts) composite lost 0.3 percent, pressured by Apple Computer.

more...
http://money.cnn.com/2006/12/28/markets/markets_1030/index.htm?postversion=2006122810

[citizen snips]

32. Treasurys topple on home sales data

Bond prices fall big after home sales come in stronger than expected; dollar gains.


NEW YORK (CNNMoney.com) -- Treasury prices fell Thursday after home sales data showed signs of a more resilient housing market.

The dollar rose against the euro and the yen.

The benchmark 10-year note fell 16/32, or $5.00 on a $1,000 note, to yield 4.72 percent, up from 4.65 percent the day before. Bond prices and yields move in opposite directions.

The 30-year bond fell 29/32, or $9.06 on a $1,000 note, yielding 4.84 percent, up from 4.75 percent in the previous session.

more...
http://money.cnn.com/2006/12/28/markets/bondcenter/bonds/index.htm?postversion=2006122810

[54anickel]

35. Argentine banks to repay savings

http://news.bbc.co.uk/2/hi/americas/6213367.stm

The Supreme Court in Argentina has ordered the country's banks to repay in full savings that were frozen during the economic crisis of 2001-02.

The government had frozen US dollar accounts held by some 50,000 depositors then forcibly converted them to devalued pesos.

The court upheld the government's right to issue that decree.

Its ruling gives savers the same amount in pesos their savings had been worth in dollars when the crisis ensued.

Social peace

With this ruling, the Supreme Court hopes to help lay to rest the years of anger and financial hardship caused by the economic crisis.

At that time, investors were caught up in a series of government decisions.

more....

Hmmmm, I might have to rethink holding foreign CDs :freak:

[54anickel]

48. Euro notes cash in to overtake dollar

http://www.ft.com/cms/s/18338034-95ec-11db-9976-0000779e2340.html

The US dollar bill’s standing as the world’s favourite form of cash is being usurped by the five-year-old euro.

The value of euro notes in circulation is this month likely to exceed the value of circulating dollar notes, according to calculations by the Financial Times. Converted at Wednesday’s exchange rates, the euro took the lead in October.

snip>

News that euro notes are challenging the dollar may cheer eurozone politicians – even if it partly reflects the currency’s strength – but it may have a dark side too. Fast growth in the highest denomination notes, especially the €500 note, has raised suspicions that they are popular among criminals, although the ECB plays down this factor.

By the end of October the $759bn-worth of US dollar notes in circulation was only a fraction ahead of the value of euro notes, converted at exchange rates at that time.

more...

[54anickel]

49. Central Bank's decision hailed

http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=data/business/2006/December/business_December763.xml§ion=business

ABU DHABI — Bankers and businessmen have welcomed the UAE Central Bank's decision to convert a total of eight per cent of $24.9 billion US dollar dominated foreign currency reserves to euro, in its bid to diversify its reserve base. Khaleej Times spoke to different stakeholders in the economy to know how they see the Central Bank's move and its likely impact on economy.


"This move is timely, as US the dollar has continued loosing its value which has impacted several currencies pegged to it like the UAE dirham," said Faizan Mitha, Regional Treasurer, Middle East and North Africa at Barclays.

Giving his views on the landmark decision, Mitha said the move would check spiralling inflation, as the country's significant amount of consumer goods are imported from Europe, where euro is gaining against the US dollar. With the continued strengthening of the euro, prices of imported consumer goods particularly foodstuff continued to rise, contributing to the current level of inflation estimated at 10 per cent.

"Now, in the course of nine months, the Central Bank of the UAE will build up its euro currency reserves to eight per cent from the present level of two per cent, a level which is perfect for the time being," Faizan Mitha said.

snip>

In answer to a question whether a small conversion of US dollar reserves into euro will cause any ripples in the international currency markets, Faizan ruled out the $2 billion conversion over a period of eight to nine months would cause any impact, but it would certainly set a precedence for nations in the GCC who face similar set of economic issues like the UAE. USA's $12-13 trillion economy, would certainly not be effected by this strategic move.

more...

[54anickel]

40. NYSE Awaits Ford Funeral Details on Closure Decision (Update1)

Still waiting....

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a94Tlzj4ArJk

Dec. 27 (Bloomberg) -- The New York Stock Exchange is awaiting White House confirmation of former U.S. President Gerald R. Ford's funeral arrangements before announcing whether it will suspend trading in observance of his death.

Ford, the 38th U.S. president, died yesterday at 93. The exchange has been closed for at least part of the day during every presidential funeral since William McKinley's in 1901, according to information on the NYSE Web site.

Ford's funeral will take place at 10:30 a.m. on Jan. 2 at the National Cathedral, according to family spokesman Gregory Willard.

The NYSE will wait for ``an official announcement from the U.S. government'' regarding a day of mourning before announcing its plans, spokesman Christiaan Brakman said.

more...

[54anickel]

41. 11:40 not much change

http://finance.yahoo.com/?u

Dow 12,495.75 14.82 (0.12%)
Nasdaq 2,423.65 7.57 (0.31%)
S&P 500 1,424.20 2.64 (0.19%)
10-yr Bond 4.7080% 0.0540
30-yr Bond 4.8300% 0.0470
NYSE Volume 575,791,000
Nasdaq Volume 481,598,000

Had to get the blather directly from: http://www.briefing.com/Investor/Public/MarketAnalysis/StockMarketUpdate.htm

11:25 ET Dow -18.50 at 12491.10, Nasdaq -7.98 at 2423.24, S&P -2.69 at 1424.15 The major indices continue to reside in negative territory, held back by a lack of sponsorship. Of the ten economic sectors, only two - Energy and Utilities - are in positive territory and their gains are negligible.

Although the existing home sales data backed up yesterday's new home sales report in suggesting there is some stabilzation in the housing market, the homebuilding stocks have pivoted from an early leadership group to one of today's biggest losers (down 1.09%). The jump in yield on the benchmark 10-year note to 4.70% is a deterrent of sorts for the stocks as investors recognize it can put upward pressure on mortgage rates that, in turn, can slow housing demand.

11:00 ET Dow -12.18 at 12498.55, Nasdaq -6.80 at 2424.37, S&P -2.74 at 1424.10 The major indices continue to be little changed despite a batch of better than expected economic data. Additionally, the government's weekly oil inventory report at the bottom of the hour was on the bearish side, as crude stockpiles fell by 8.1 million barrels versus an expected drawdown of 2.5 million barrels, but that news hasn't had much impact on the market either.

There is a bit of exhaustion, perhaps, after the S&P tacked on 1.1% in the prior two sessions. Whatever the case may be, neither buyers nor sellers are demonstrating much conviction. That point is evident in the fact that there isn't a single S&P industry group at this juncture that is up, or deon, more than 1.0%.

10:30 ET Dow -21.47 at 12489.42, Nasdaq -7.13 at 2423.96, S&P -3.02 at 1423.88 The triumvirate of economic releases at the top of the hour - Existing Home Sales, Consumer Confidence, and Chicago PMI - all checked in stronger than expected. The prevailing message is that economic activity is holding up fine and that the economy is not running toward a hard landing.

That should be treated as good news, but the stock market has been slow to respond today as it is considering the possibility that reports such as these will delay the timing of any rate cut from the Fed. We have seen the latter concern register in the Treasury market, which weakened on the reports. The fed funds-sensitive 2-year note has seen it yield bump up to 4.82% from yesterday's close of 4.78%. The 10-year note, meanwhile, is off nearly a half point and its yield has risen to 4.70%.

Gotta run! :hi:

[citizen snips]

45. Stock, Bond Mutual Funds in U.S. Post Biggest Gains Since 2003

Dec. 28 (Bloomberg) -- Stock mutual funds in the U.S. returned 15 percent in 2006, the most in three years, driven by higher corporate profits and the Federal Reserve's decision to stop raising interest rates.

The advance was led by funds that invest in real estate and Asia, according to Chicago-based research company Morningstar Inc. Fixed-income funds rose 4.6 percent for their biggest gain since 2003, data compiled by Bloomberg as of Dec. 26 show.

``It wasn't a straight line going up, although in the end, it turned out good,'' said Linda Duessel, chief equity strategist at Federated Investors Inc. in Pittsburgh, where she helps manage $218 billion. ``The market went up, then declined and then went sideways before going back up again.''

American Funds' $11 billion New World Fund rose 31 percent to rank first among those with more than $10 billion of assets. The top-performing diversified U.S. equity fund with more than $50 million was the Pacific Advisors Small Cap Fund managed by George Henning, whose holdings include tank-barge operator Kirby Corp. The fund rose 39 percent, according to Morningstar.

more...
http://www.bloomberg.com/apps/news?pid=20601014&sid=aQ1j54jYaUII&refer=funds

[citizen snips]

46. Oil Is Steady After Report of Fifth Straight U.S. Supply Drop

Dec. 28 (Bloomberg) -- Crude oil was little changed after a government report showed that U.S. inventories fell for a fifth week as refineries increased fuel production.

Stockpiles plunged 8.1 million barrels to 321 million barrels in the week ended Dec. 22, according to the Energy Department report. Refineries operated at 90.9 percent of capacity last week, the highest since the week ended Sept. 22, the report showed.

``Total petroleum inventories have fallen 67 million barrels since Oct. 6,'' said Tim Evans, an energy analyst at Citigroup Global Markets Inc. in New York. ``The drop appears to be due to inventory management, stronger worldwide demand and falling OPEC output. This leaves us with much less of a cushion in case of a disruption.''

Crude oil for February delivery fell 2 cents to $60.32 a barrel at 1:09 p.m. on the New York Mercantile Exchange. Prices settled at $60.34 yesterday, the lowest close since Nov. 27.

more...
http://www.bloomberg.com/apps/news?pid=20601072&sid=aKur6LOLDLuA&refer=energy

[citizen snips]

47. Stocks Fall in Early Afternoon Trading

NEW YORK (AP) -- Wall Street stepped back from a two-day rally on Thursday as investors waded through a battery of reports that indicated the economy's unexpected expansion might force the Federal Reserve to be more aggressive next year.

There has been speculation policymakers might be ready to cut interest rates on signs the economy was moderating on course. However, better-than-expected reports that measure existing home sales, consumer sentiment, and manufacturing in the Midwest lessened the possibility of a cut.

Instead, the trio of reports suggest central bankers -- who have left interest rates unchanged during their last four meetings -- might even have to implement a rate hike on further signs the economy is growing too fast. This caused a sell-off in the bond market, and stifled a stock market surge that pushed the Dow Jones industrials past the 12,500 mark for the first time on Wednesday.

The fact there wasn't a big drop in stock prices could be a sign that investors are still pretty positive, analysts said. With thin volume typical for the week between Christmas and New Year, the real response could come next week when most of Wall Street gets back from vacation.

more...
http://biz.yahoo.com/ap/061228/wall_street.html?.v=27

[54anickel]

51. 2:23 and here come the fairies

Dow 12,521.71 11.14 (0.09%)
Nasdaq 2,430.14 1.08 (0.04%)
S&P 500 1,426.18 0.66 (0.05%)
10-yr Bond 4.7160% 0.0620
30-yr Bond 4.8390% 0.0560
NYSE Volume 1,024,553,000
Nasdaq Volume 848,830,000

14:00 ET Dow -11.37 at 12499.20, Nasdaq -6.03 at 2425.13, S&P -2.43 at 1424.39 Given the pace of things at the moment, it makes a person tracking the market shutter at the thought of how tomorrow is likely to play out. Today at least there were some noteworthy economic reports. Tomorrow the only item on the economic calendar is the Help Wanted Index, which nobody will care about. The earnings calendar won't play any role either in shaping the trading action since it is devoid of any reporters.

There is always potential for volatility in thinly-traded markets, but tomorrow's session looks like it could be as exciting as watching paint dry.

13:30 ET Dow -22.19 at 12488.38, Nasdaq -7.11 at 2424.11, S&P -3.43 at 1423.41 The indices continue on in their narrow trading ranges, much like Briefing.com suggested would happen today in our Page One column. There just hasn't been a lot of trading interest as many participants remain on vacation.

The small- and mid-cap stocks are seeing a little more selling pressure than their large-cap brethren, but nothing serious by any means. Although this is a popular time for tax-loss selling activity, as investors try to offset capital gains for the current tax year, it doesn't appear as if that activity has had much influence this week.

12:55 ET Dow -14.26 at 12496.63, Nasdaq -5.31 at 2425.91, S&P -2.67 at 1424.22 Less than five points separates the S&P 500 from its best and worst levels today, which is a roundabout way of saying the market has been stuck in a narrow trading range. In light of the strong advance to start the week, bulls have reason to be encouraged by the action thus far as the indices have held up well in the face of early selling efforts.

The resilience isn't owed to any particular sector (all ten are in negative territory right now), but rather, it's a case of there just not being a great deal of concerted selling interest. The way the week started, participants may be fearful of missing out on any subsequent rally effort that is associated with the "Santa Calus Rally." The latter encompasses the last five trading days of the year and the first two trading days of the new year. According to the Stock Trader's Almanac, that period has been good for an average 1.5% gain since 1950.

12:25 ET Dow -28.12 at 12482.85, Nasdaq -7.55 at 2423.67, S&P -4.06 at 1422.82 There has been no change in the overall action as the major indices have been unable to gain any upside traction. Although there are several industry groups trading higher at the moment, none are up as much as 1.0%. The biggest gainer for the day, in fact, is the health care facilities group which is up 0.71%.

The banking stocks and large-cap technology issues are today's loss leaders. To that end, the Bank Index (BKX) is down 0.55% while the Nasdaq 100 is of 0.43%.

11:55 ET Dow -24.67 at 12485.58, Nasdaq -8.19 at 2422.98, S&P -3.55 at 1423.26 With the S&P 500 gaining 1.1% in the prior two sessions, it is understandable that buyers have shown some reserve today. However, they haven't been short-changed with good news as there was a batch of economic data that indicated the economy isn't headed for a hard landing.

Specifically, the weekly initial claims, existing home sales, consumer confidence, and Chicago PMI reports all checked in stronger than expected. That is encouraging information as it relates to near-term earnings prospects, but the main drawback for participants today is that the data suggest the Fed won't be cutting interest rates anytime soon.

The market's concerns on the latter point have been most apparent in the Treasury market, which backtracked on the good economic news. The front of the yield curve, which is most sensitive to the Fed's interest rate actions, is bearing the brunt of the selling interest, but losses have been registered across the curve. The benchmark 10-year note is down 14 ticks and its yield is up to 4.71%.

The jump in market rates has been a deterrent for buyers, along with the recognition that the market seems due to take a breather after the strong start to the week.

A lack of leadership has also kept the major indices stuck in red figures for nearly the entirety of today's session. At the moment, Energy (+0.04%) is the only economic sector sporting a gain and it's a negligible one at that. The government's report of a larger than expected drawdown in crude stockpiles has been a contributing factor to the sector's outperformance.

Overall selling interest, though, has been contained. The Financial sector (-0.44%) has been the biggest laggard to this point.

There hasn't been much in the way of noteworthy corporate headlines, which isn't unusual for this time of year. Apple (AAPL 79.81, -1.71), however, has been thrust into the spotlight following a Financial Times article in which it was alleged CEO Steve Jobs received 7.5 million unauthorized stock options.

[54anickel]

55. Today's Pfennig

http://www.kitcocasey.com/displayArticle.php?id=1137

New Home Sales Rebound...

Good day... Well... Only two more trading days in 2006... So far, 2006 has been a year of recovery for the currencies, except Japanese yen, so it just shows to go you that you can't get everything you want... I ran across something yesterday that I thought I would share with you regarding looking into 2007... Not that I follow this kind of stuff, but it's interesting... Here goes...

SAN FRANCISCO (MarketWatch) -- "Those who follow the prophecies of 16th century astrologer Nostradamus will note that 2007 is the beginning of the period he predicted will be the 'Time of Troubles,' where an antichrist will rise up and World War III will begin."

Ok... On that uplifting note... I'll tell you that the dollar saw a little love yesterday after the report on November New Home Sales printed. Apparently, with the leveling off of interest rates, and bond yields back on the rally tracks, New Homes are once again appealing to consumers, as New Home Sales ticked up 3.4% in November! WOW! It's no wonder this has happened, as any radio station I choose to tune in to plays tons of commercials from mortgage brokers that are touting lower and lower mortgage rates... Hmmm...

snip>

"The value of euro notes in circulation is, this month, likely to exceed the value of circulating dollar notes, according to calculations by the Financial Times. Converted at Wednesday’s exchange rates, the euro took the lead in October."

Notice the report didn't say that the "number of euro notes in circulation outnumbered the dollar notes in circulation"... NO! It says the "VALUE" of the notes in circulation... There's a BIG difference there, my friends!

I don't know if that highlights the strong move in just 6 years by the euro, or if it highlights just how badly the dollar has fallen since being taken from the gold standard and bounced out of the Bretton Woods Agreement... Well... The combination of the two really makes things bad for the dollar... But if the dollar had just held any ground since 1971, this would be a different story... But it's not... And that's what I'm always harping on... It takes years for these moves to really show their overall affect, but when they do... Watch out below!

more...

[54anickel]

56. Farewell to Lords of the rings as Welsh gold goes down the pan

http://www.timesonline.co.uk/article/0,,2-2519824,00.html

Pure Welsh gold, the metal of choice for the wedding rings of royalty and the rich and famous, is expected to run out in the new year.

The last remaining regular producer of the gold, described as the world’s most valuable precious metal”, is due to close early next year.

Welsh gold has been prized for use in jewellery for centuries, and dates back to the days of the Celtic kingdoms, when nobles wore gold torcs as a badge of rank and power. More recently it has been used to create wedding rings for Diana, Princess of Wales, and Camilla Parker Bowles.

snip>

Roland Phelps, the managing director of Welsh Gold plc, said that the current supply came from reworking old surface tips at Gwynfynydd Mines Royal, in Dolgellau, North Wales.

He said: “We haven’t got a date for it yet as it’s produced in a haphazard way and one can never forecast sales, but we expect to be very close to running out within the early part of next year.

“We’ve looked elsewhere to see if there’s anywhere we might possibly go, but there isn’t anywhere we consider economical.

more...

[54anickel]

57. Bolivia Threatens Chile's Copper Output With Water Dispute

http://www.bloomberg.com/apps/news?pid=20601086&sid=a2QijAYECNtM&refer=news

Dec. 27 (Bloomberg) -- Bolivia plans to ``industrialize'' a river that supplies water to Chile's Atacama Desert, threatening the world's largest copper mining district.

Bolivia placed a 20-man military post on the banks of the river, about 4 kilometers away from Chile's border, as a first step to tapping the water resource, Bolivia's government state information agency ABI said today.

The Silala River flows from 4,000 meters above sea level in the Andes cordillera to Chile's Antofagasta region, which produces most of the nation's copper. Mining companies need water to extract metal from bare rock.

Bolivia President Evo Morales urged plans to industrialize the water resource which is now being ``diverted illegally into Chile,'' ABI reported. Morales, who formerly campaigned for coca- leaf growers, plans to bottle the water and sell it with the slogan, ``Drink Silala water for sovereignty,'' ABI said.

more...

[54anickel]

58. Closing time - DOW still hangin' just above 12,500

Dow 12,501.52 9.05 (0.07%)
Nasdaq 2,425.57 5.65 (0.23%)
S&P 500 1,424.73 2.11 (0.15%)
10-yr Bond 4.6900% 0.0360
30-yr Bond 4.8130% 0.0300
NYSE Volume 1,469,306,000
Nasdaq Volume 1,207,642,000

16:05 ET Dow -8.49 at 12502.08, Nasdaq -5.65 at 2425.57, S&P -2.11 at 1424.73 The stock market partied on Tuesday and Wednesday, but today, it looked as if it was suffering from a hangover as the major indices meandered through the session with neither buyers nor sellers showing much conviction.

The end result is that the market closed the day little changed despite a batch of encouraging economic data that dispatched any hard-landing concerns. In particular, the weekly initial claims, existing home sales, consumer confidence, and Chicago PMI all checked in stronger than expected.

One of the biggest surprises was the Chicago PMI. The regional manufacturing report moved back above the 50 level which is the line of demarcation between contraction and expansion. Specifically, the December report showed a jump to 52.4 from 49.9.

Separately, the Consumer Confidence level rose to 109.0 from 105.3 while existing home sales edged up 0.6% to an annual rate of 6.28 million units. The latter report reinforced the message in yesterday's new home sales data that the housing market is stabilizing.

The encouraging economic news, however, sparked concerns that the Fed won't be cutting interest rates anytime soon. That consideration, coupled with a lack of convincing sector leadership and the recognition that the market was due for a breather after its strong start to the week, kept the indices in check throughout the session.

From a sector standpoint, the Telecom Services sector (+0.34%) was the biggest gainer while the Industrials sector (-0.38%) was the biggest loser. There wasn't a single sector that moved more than 1.0%. That reflected the lack of commitment in today's session, as did the light volume at the NYSE and Nasdaq.

The corporate headlines were lacking punch today, but one item that commanded added attention was a Financial Times article that indicated Apple's (AAPL 80.87, -0.65) CEO Steve Jobs received as many as 7.5 million unauthorized stock options.

In other developments, the Treasury market struggled in the wake of the good economic news, but a decent 5-year note auction helped stem some of the losses. The benchmark 10-year note dropped 10 ticks and saw its yield move up to 4.69%.

15:30 ET Dow +0.40 at 12511.21, Nasdaq -2.95 at 2428.27, S&P -1.38 at 1425.45 The market is now in the home stretch and it really doesn't have much to show for itself in terms of today's activity. The indices are little changed and their current standing won't prompt the use of any superlatives.

Nonetheless, their relatively flat standing reflects the underlying sense of bullishness that has driven the market since July, as it is noteworthy that there hasn't been any concerted profit-taking activity following a two-day sprint that has seen the S&P 500 gain 1.1% and stretch its year-to-date gain past 14.0%.

14:55 ET Dow +9.29 at 12520.67, Nasdaq -1.02 at 2430.20, S&P -0.53 at 1426.33 The market enters the final hour relatively flat on the day. It is a fitting disposition considering neither buyers nor sellers have shown much conviction since the opening bell. The lack of participation is evident in the light volume at the NYSE and Nasdaq which is closer to volume registered on a half day under normal market conditions.

The sector stance is representative of the market's seeming sense of indecision as five sectors are up and five sectors are down. None have moved more than 1.0% and the range falls between a loss of 0.26% (Industrials) and a gain of 0.50% (Telecom Services).

14:25 ET Dow +13.70 at 12523.79, Nasdaq -0.52 at 2430.70, S&P -0.51 at 1426.33 On a day like today, it is easy to get excited by a move of any kind, so we'll try to contain our enthusiasm over the latest action which saw the indices "spike" on a burst of buying interest. There was no news catalyst for the upward push, so it can be attributed to the mannerisms of a thinly-traded market where it is easier to move stocks on light volume.

Whatever the case may be, the Dow has tipped its head back into positive territory and the other major indices are on the verge of doing the same.

14:00 ET Dow -11.37 at 12499.20, Nasdaq -6.03 at 2425.13, S&P -2.43 at 1424.39 Given the pace of things at the moment, it makes a person tracking the market shutter at the thought of how tomorrow is likely to play out. Today at least there were some noteworthy economic reports. Tomorrow the only item on the economic calendar is the Help Wanted Index, which nobody will care about. The earnings calendar won't play any role either in shaping the trading action since it is devoid of any reporters.

There is always potential for volatility in thinly-traded markets, but tomorrow's session looks like it could be as exciting as watching paint dry.

[citizen snips]

59. Bad day for Financial stocks

NEW YORK (MarketWatch) - Financial stocks dipped Thursday as shares of Citigroup and AIG weighed on the Dow Jones Industrial Average.

Citigroup(C:55.88 -.053,-.09)
AIG(AIG: 71.88, -0.41,-0.6)

more...
http://www.marketwatch.com/news/story/financial-stocks-weak-rally-fizzles/story.aspx?guid=%7BE95C54C6%2DF903%2D4E5A%2D9A8C%2D8EF0F87FAACF%7D&siteid=yhoo&dist=yhoo

[citizen snips]

60. Dow Falls 9, Nasdaq Drops 6 on Reports

Dow, Nasdaq End Lower on Battery of Reports Indicating That Economy Is Stronger Than Expected

NEW YORK (AP) -- Wall Street stalled Thursday after a battery of reports indicated the economy is stronger than expected and raised concerns that the Federal Reserve might be more aggressive about interest rates next year.

There has been speculation in the market that Fed policymakers might be ready to cut interest rates because the economy appeared to be moderating on course. However, investors believed that better-than-expected reports that measured existing home sales, consumer sentiment, and manufacturing in the Midwest lessened the possibility of a cut.

Moreover, the trio of reports suggested to some that central bankers -- who have left interest rates unchanged during their last four meetings -- might even have to implement a rate hike on further signs the economy is growing too fast. This caused a sell-off in bonds, and stifled a stock market surge that pushed the Dow Jones industrials past the 12,500 mark for the first time on Wednesday.

Even with the prospect that a rate cut isn't in the offing, investors remain positive, analysts said. Still, volume was thin, typical for the week between Christmas and New Year, which means price swings can be exaggerated. The market's real response could come next week when most of Wall Street gets back from vacation.