STOCK MARKET WATCH, Thursday February 1

[ozymandius]

Thursday February 1, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 718 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2228 DAYS
WHERE'S OSAMA BIN-LADEN? 1933 DAYS
DAYS SINCE ENRON COLLAPSE = 1893
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 January 31, 2007

Dow... 12,621.69 +98.38 (+0.79%)
Nasdaq... 2,463.93 +15.29 (+0.62%)
S&P 500... 1,438.24 +9.42 (+0.66%)
Gold future... 657.90 +7.70 (+1.17%)
30-Year Bond 4.93% -0.06 (-1.12%)
10-Yr Bond... 4.83% -0.05 (-1.01%)






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. Today's Market WrapUp

Sector Valuation Analysis
BY CHRISTOPHER M. PUPLAVA

Sector analysis was done by looking at relative twelve month performance of each sector to the S&P 500 (a measure of overbought or oversold) and sector valuations. Twelve month relative performance for each sector relative to the S&P 500 is shown below. Values greater than zero represent twelve month periods of excess returns over the S&P 500 and values less than zero indicate periods of underperformance. The red lines indicate two standard deviations (SDs) above and below the mean (relative average performance since 1990), with values falling within the two redlines approximately 95% of the time (assuming performance is normally distributed). Values near or beyond the solid red lines indicate statistical extremes of value, either undervalued (lower red line) or overvalued (upper red line), where values should fall outside these limits only 5% of the time.

The twelve month relative performance shown was smoothed (red line, scale on left side of the chart) with the relative strength ratio of the sector shown in black with values corresponding to the right side of the chart. The relative twelve month performance serves as a type of momentum gauge in terms of price performance while the relative strength ratio indicates how the sector is performing relative to the S&P 500.

-cut-

The star performer last year was the telecommunications service sector with a 2006 excess return over the S&P 500 of 18.51%. Reviewing the sector’s twelve month relative performance since 1990 shows the sector underperforming coming out of the 1990 recession with it outperforming from 1992 to the middle of 1993. From the middle of 1993 the sector continued to underperform the S&P 500 until 1997 and continued to advance before peaking in 1999 when it reached a roughly 25% excess return over S&P 500. That year represented a statistical extreme as its twelve month relative performance was just barely two SDs above its mean relative performance. The sector then lost performance momentum relative to the S&P 500 (market) and then began a period of underperformance from the middle of 1999 to early 2004. Late 2005 marked another turning point for the sector as it once again outperformed the market with its twelve month outperformance continuing to trend higher. Looking at Table 1 above shows the sector’s three year performance of 38.97% with the bulk of the performance coming from 2006.

-cut-

Coming in second place behind the telecommunication service sector in 2006 was energy. Energy continues to be a strong sector performer as it is the number one ranked sector for the past three year performance, up 104% which corresponds to a 35% annual return over the past three years. Figure 3 below makes it clear why the energy sector has outperformed the market by a wide margin as its twelve month relative performance has remained above 0% since 2000 except for several months in 2003, a very different picture than what was seen in the 1990s with the sector predominantly underperforming the market.

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

[ozymandius]

2. Today's Reports

8:30 AM Personal Income Dec
Briefing Forecast 0.5%
Market Expects 0.5%
Prior 0.3%

8:30 AM Personal Spending Dec
Briefing Forecast 0.7%
Market Expects 0.7%
Prior 0.5%

8:30 AM Initial Claims 01/27
Briefing Forecast 315K
Market Expects 315K
Prior 325K

10:00 AM ISM Index Jan
Briefing Forecast 52.0
Market Expects 51.5
Prior 51.4

5:00 PM Auto Sales Jan
Briefing Forecast 5.4M
Market Expects 5.4M
Prior 5.6M

5:00 PM Truck Sales Jan
Briefing Forecast 7.3M
Market Expects 7.4M
Prior 7.2M

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

[UpInArms]

13. 8:30 reports:

01. U.S. core PCE price index up 2.2% year-on-year
8:30 AM ET, Feb 01, 2007 - 49 seconds ago

02. U.S. Dec. real disposable incomes up 0.2%
8:30 AM ET, Feb 01, 2007 - 49 seconds ago

03. U.S. Dec. real consumer spending up 0.3%
8:30 AM ET, Feb 01, 2007 - 49 seconds ago

04. U.S. Dec. personal savings rate falls to -1.2%
8:30 AM ET, Feb 01, 2007 - 49 seconds ago

05. U.S. Dec. nominal consumer spending up 0.7% vs 0.8% expected
8:30 AM ET, Feb 01, 2007 - 49 seconds ago

06. U.S. Dec. nominal incomes up 0.5% as expected
8:30 AM ET, Feb 01, 2007 - 49 seconds ago

07. U.S. 4-wk. avg. continuing claims up 30,500 to 2.48 mln
8:30 AM ET, Feb 01, 2007 - 49 seconds ago

08. U.S. Dec. core PCE price index up 0.1% vs. 0.2% expected
8:30 AM ET, Feb 01, 2007 - 49 seconds ago

09. U.S. continuing jobless claims rise 71,000 to 2.55 million
8:30 AM ET, Feb 01, 2007 - 49 seconds ago

10. U.S. 4-wk. avg. initial jobless claims fall 4,500 to 304,750
8:30 AM ET, Feb 01, 2007 - 49 seconds ago

11. U.S. weekly initial jobless claims fall 20,000 to 307,000
8:30 AM ET, Feb 01, 2007 - 49 seconds ago

[ozymandius]

3. Oil dips below $58 a barrel in Asia

SINGAPORE - Oil prices dipped in Asian trading Thursday as market participants took profits after crude gained more than $1 a barrel in the previous session.

Light, sweet crude for March delivery fell 16 cents to $57.98 a barrel in electronic trading on the New York Mercantile Exchange midafternoon in Singapore.

The contract rose $1.17 to settle at $58.14 a barrel on Wednesday as the market focused on a drop in U.S. heating oil stockpiles and the Federal Reserve's suggestion economic growth is firmer than many anticipated.

-cut-

"When the market surges ahead with no big changes in fundamentals, it's not surprising that some market participants view this as a profit-taking opportunity," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

The U.S. Energy Information Administration's weekly inventory report was close to what most traders were expecting, and reaffirmed the belief that U.S. supplies of crude and gasoline remain abundant, but recent cold weather has been eating into heating fuel supplies.

more

[ozymandius]

4. Turkey sends warships to Cyprus amid row over oil deals: report

ANKARA (AFP) - Turkey has sent warships to international waters off Cyprus amid a growing row over oil and gas exploration deals the island's internationally recognised government signed with Egypt and Lebanon, the NTV news channel reported.

Turkish officials were not immediately available for comment.

NTV did not say how many ships had been sent to the Eastern Mediterranean, but added that they would stay there for a while.

The move follows a harsh warning by Ankara for Egypt and Lebanon to delay the deals which it said infringed the rights of the breakaway Turkish Cypriot statelet on the divided island.

more

[ozymandius]

5. EU pressures oil companies to fight climate change

BRUSSELS (Reuters) - The European Commission has proposed forcing oil companies to cut greenhouse gas emissions from drilling, refining, transporting and burning fuel in new rules aimed at fighting global warming.

The plan, which seeks to cut emissions from oil's "life cycle" from the ground to a car's exhaust by 10 percent from 2011-2020, drew criticism from a European refining industry body, which said some of the targets were unachievable.

Confirming a Reuters report, the European Union executive said on Wednesday the move would reduce emissions by 500 million metric tons of carbon dioxide (CO2) by 2020.

It also proposed stricter environmental standards for diesel and gas oil, or heating oil, sold in the 27-nation bloc with an eye to boosting the use of biofuels and reducing air pollution.

more

[ozymandius]

6. Shell Profit Unexpectedly Rises as Production Climbs

Feb. 1 (Bloomberg) -- Royal Dutch Shell Plc, Europe's biggest oil company, posted an unexpected increase in fourth-quarter profit as production rose, sending the shares to their biggest gain in more than eight months.

Net income climbed 21 percent to $5.28 billion from $4.37 billion in the year-earlier period, Shell, based in The Hague, said today. Profit excluding one-time items and changes in inventory values was $5.5 billion, beating analyst estimates.

Chief Executive Officer Jeroen van der Veer boosted output from the Mars platform in the Gulf of Mexico, which had been flattened by hurricanes in 2005, and increased pumping at fields offshore Nigeria. Shell added to reserves for the first time in four years, after telling investors in 2004 that it had overstated the size of its oil and gas fields.

-cut-

The company made oil and gas discoveries at 13 of its 28 biggest exploration prospects last year, Van der Veer said during a press conference in The Hague, adding that much of the company's production growth this decade will come from oil sands and liquefied natural gas projects.

http://www.bloomberg.com/apps/news?pid=20601102&sid=aHWX.ZahdIDw&refer=uk

[ozymandius]

7. Gasoline prices have likely hit bottom, feds say

WASHINGTON - U.S. retail gasoline prices appear to have bottomed out now that crude oil costs are rising again, and pump prices are expected to start climbing, the government’s top energy forecasting agency said on Wednesday.

“With the near-month crude oil futures price rising from a level close to $50 per barrel recently to nearly $57 per barrel (on Tuesday), retail gasoline prices have seemingly bottomed,” the federal Energy Information agency said in its weekly review of the oil market.

The national price for regular unleaded gasoline remained at $2.17 a gallon for the second week in a row after falling some 14 cents during the prior two-week period.

-cut-

However, oil prices jumped last week following Bush’s call in his State of the Union speech for Congress to increase the size of the country’s emergency petroleum stockpile and for the government to buy about 11 million barrels of oil this spring.

With crude accounting for about half the cost of making gasoline, the energy agency said the savings at the pump for drivers is likely over.

http://www.msnbc.msn.com/id/16907539/

[ozymandius]

8. Google Stock Drops Despite 4Q Earnings

SAN FRANCISCO Feb 1, 2007 (AP)— Google Inc.'s fourth-quarter profit nearly tripled as the online search engine leader once again sprinted past analyst expectations, but the breathtaking growth still wasn't enough to propel its high-flying stock to new heights.

The Mountain View-based company said Wednesday that it earned $1.03 billion, or $3.29 per share, during the final three months of 2006. That compared with net income of $372.2 million, or $1.22 per share, at the same time in 2005.

After stripping out gains from tax benefits that were partially offset by expenses for employee stock compensation, Google said it would have earned $3.18 per share. That figure easily exceeded the average analyst estimate of $2.92 per share among analysts surveyed by Thomson Financial.

-cut-

What's more, Google's revenue after paying ad commissions was just $40 million higher than the average estimate. Given Google's commanding lead in Internet search, many investors might have been anticipating bigger things.

http://abcnews.go.com/Technology/wireStory?id=2840375

[ozymandius]

9. Dell founder back in charge of ailing computer firm

The founder of the troubled Dell computer company, Michael Dell, took back day-to-day control of the American manufacturer last night following the abrupt resignation of its chief executive, Kevin Rollins.

Mr Rollins quit with immediate effect as the Texas-based company issued a profit warning admitting that its earnings would be below Wall Street forecasts for the three months to January.

The change followed months of rumours about trouble at the top of Dell, which has suffered a series of blows culminating in the loss of its title as the world's biggest computer maker to Hewlett-Packard.

-cut-

Mr Dell, who established the company in his college dormitory room with $1,000 in 1984, hand-picked Mr Rollins to be his successor when he stood back to become chairman in 2004.

http://business.guardian.co.uk/story/0,,2003374,00.html

[ozymandius]

10. N.Y.S.E. Makes Alliance With Tokyo Exchange

In a deal that allies the two biggest stock markets in the world, the NYSE Group, parent of the New York Stock Exchange, confirmed yesterday that it had signed a letter of intent to form a strategic alliance with the Tokyo Stock Exchange.

The alliance calls for cooperation on joint listings, trading technology and marketing, with the possibility of investing in each other in the future.

“I strongly believe this agreement will be a good starting point for a much stronger tie-up,” Taizo Nishimuro, chief executive of the Tokyo Stock Exchange, said at a news conference at the New York Exchange.

Its is the third international deal that the NYSE Group has announced in the last 12 months. Last spring, it merged with Euronext, the Paris-based European exchange, creating the first trans-Atlantic exchange. More recently it bought a 5 percent stake in the National Stock Exchange, India’s largest marketplace.

http://www.nytimes.com/2007/02/01/business/worldbusiness/01exchange.html

[ozymandius]

11. Marsh to sell Putnam for $3.9 billion

NEW YORK (Reuters) -- Insurance broker Marsh & McLennan Companies Inc. said Thursday that it would sell Putnam Investments to Great-West Lifeco Inc. for $3.9 billion.

Great-West Lifeco Inc., a financial services holding company, is controlled by Canada-based Power Financial Corp. Both boards have approved the transaction, and they expect it to close in the middle of this year.

http://money.cnn.com/2007/02/01/news/companies/bc.putnam.reut/index.htm?postversion=2007020106

[ozymandius]

12. Go green. Get rich.

Think humanity's problems are too big to be tackled by business? Think again. Here are nine companies showing how we can make millions saving us from ourselves.

SAN FRANCISCO (Business 2.0 Magazine) -- If you've read the news lately, you know the scale of the problem. Catastrophes that once seemed far away are creeping uncomfortably close to our lifetimes. The permanent polar ice cap will disappear by 2040. The seas could be practically devoid of fish by 2048. Manhattan and Miami will be flooded by 2050. Add in widespread disease and famine, and you have a script for the apocalypse.

But before you get too depressed, consider that business - until now part of the problem - is scrambling for answers. Clean-technology investments soared by more than 50 percent in the first three quarters of 2006. And venture capital giant Kleiner Perkins Caufield & Byers has announced a doubling of its renewable-energy fund to $200 million. Kleiner partner Ray Lane told the Wall Street Journal that clean tech will be "bigger than the Internet, by an order of magnitude."

For the following stories, we identified the most intractable problems facing the human race. Beyond climate change, there are the pollution troubles: mountains of trash, haze-choked skies, and dirty water. Disease includes not just viral epidemics but also new strains of ultraresistant bacteria. And our global food problem isn't just about Third World famine; it's also about conditions that could wipe out the $158 billion fishing industry.

http://money.cnn.com/magazines/business2/business2_archive/2007/02/01/8398986/index.htm?postversion=2007012614

[citizen snips]

14. Exxon Mobil reports $39.5B annual profit

NEW YORK - Oil giant Exxon Mobil Corp. on Thursday posted the largest annual profit by a U.S. company — $39.5 billion — even as earnings for the last quarter of 2006 declined 4 percent.

The 2006 profit topped the previous record of $36.13 billion which Exxon set in 2005.

Revenue at the world's largest publicly traded oil company rose to $377.64 billion for the year, surpassing the record $370.68 billion that Exxon posted in 2005.

Exxon Mobil's record annual earnings followed a year of extraordinarily high energy prices as crude oil topped $78 a barrel in the summer — driving up average gasoline prices in the United States to more than $3 a gallon. Prices retreated later in the year.

The fourth-quarter decline reflects lower profits from Exxon's refining and marketing segment and a sharp dropoff in natural gas prices.

more...
http://news.yahoo.com/s/ap/20070201/ap_on_bi_ge/earns_exxon_mobil

[UpInArms]

15. dollar watch

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

Last trade 84.57 Change -0.03 (-0.04%)

Dollar Set to Weaken Near Term

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/Dollar_Set_to_Weaken_Near_1170332720498.html

EURUSD – It looks as if the 5th of 1 wave down is indeed truncated (meaning that it failed to break below the wave 3 low). We mentioned yesterday that “The bullish evidence that indicates a potential turn higher is the 5 small waves from 1.2876 to 1.2982. Price has retraced in 3 waves from 1.2982 to 1.2925.” A rally above 1.3047 would confirm a turn higher and give scope to the 161.8% extension of 1.2876-1.2982/1.2925 at 1.3098. A short term bullish bias is warranted on a push above 1.3047 and barring a break below 1.2982.

<snip>

USDJPY – Our analysis that “The rally above 121.78 makes it possible to count 5 waves up from 117.97 so the USDJPY may be close to a short term top” is confirmed and a decline below 120.19. The pair is just above this level. A decline below 120.19 exposes the 38.2% of the 114.42-122.21 5 wave advance at 119.24. Our long term focus remains higher (towards a measured objective just above 128) but the near term picture is bearish as price has declined below the support line drawn off of the 12/5/2006 and 1/5 lows.

...more...

US Dollar Sells Off as Contractionary Chicago PMI Signals Potential Weakness in ISM

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar_Sells_Off_as_1170282732529.html

US Dollar

The US dollar is weaker today after the Federal Reserve failed to deliver the degree of hawkishness that the market was anticipating. After a series of upside surprises in US data, many traders had begun to price in the possibility of an interest rate hike by the Federal Reserve later this year. However, what the Fed chose to tell us instead is that even though there are signs of recovery, they need to see at least two more months of data before pulling the trigger. Their concern is that the recent strength may be as much of a fluke as the weather patterns that we have seen so far this year, which is why for the time being, they feel that the housing market is only showing “tentative signs of stabilization.” Since the last quarter point rate hike in June, interest rates have remained steady at 5.25 percent. This morning’s economic numbers were mixed. Fourth quarter GDP was very strong, printing at 3.50 percent compared to the market’s 3.0 percent forecast. ADP employment also rose to 152K compared to a 140K forecast, signaling that we could see strong payroll growth on Friday. However Chicago PMI dropped to 48.8 from 51.6, which is the first time that the index has dipped into contractionary territory since April 2003. With the ISM report on tap tomorrow, we could be looking forward to a weaker number. A dip into contractionary territory is unlikely though since manufacturing in the Philadelphia region accelerated in the month of January. The mixed reports this morning and the Fed’s moderately disappointing FOMC statement have dealt a blow to the dollar’s momentum. We will need a strong ISM number to erase that sentiment. Rate hike expectations have dropped from about 14 percent in December to close to zero.

...more...

[54anickel]

26. Yuan Rises Most in Two Weeks; Paulson Defends Currency Policy

http://www.bloomberg.com/apps/news?pid=20601080&sid=a7cpKS_nYbXA&refer=asia

Feb. 1 (Bloomberg) -- The yuan rose the most in two weeks after U.S. Treasury Secretary Henry Paulson defended China's policy of allowing gradual appreciation and called for greater exchange-rate flexibility.

The People's Bank of China set the highest daily reference rate since the government ended a fixed exchange rate to the dollar in 2005, a day after Paulson told the Senate Banking Committee he supported ``progressively'' easing currency controls. China's trade surplus swelled 74 percent last year to a record $177.5 billion, sending foreign-exchange reserves to $1.07 trillion.

``Yuan gains could be China's way of reciprocating the lack of pressure from Paulson,'' said Nizam Idris, a currency strategist at UBS AG. ``China doesn't like to appreciate the yuan under what is perceived as foreign pressure. They prefer to do it on their own accord.''

The yuan rose 0.20 percent to 7.7585 against the dollar as of 5:30 p.m. in Shanghai, its biggest advance since Jan. 17, according to the China Foreign Exchange Trade System. The currency has advanced 6.5 percent since the dollar link of 8.30 was dropped. It may reach 7.35 by the year's end, Nizam said.

China may implement ``big changes'' to foreign-exchange policy this year because of its trade surplus and excess cash in the banking system, China Securities Journal said, citing unnamed sources.

more...

[54anickel]

28. IMF advised to sell $6.6bn of gold

http://www.ft.com/cms/s/9cbae8f4-b155-11db-b901-0000779e2340.html

The International Monetary Fund should sell gold worth $6.6bn (£3.4bn) and invest the proceeds in higher-yielding assets as part of a strategy to put its finances on a sound, long-term footing, an expert panel recommended on Wednesday.

snip>

The panel included Alan Greenspan, former chairman of the US Federal Reserve, and Jean-Claude Trichet, president of the European Central Bank. It estimated that the sale of 400 tonnes of gold would create an endowment fund that would earn the IMF $195m a year in additional revenues after inflation.

The IMF holds 3,217 tonnes of gold in total. The panel recommended that the world’s central banks reduce their planned gold sales – set out in an international accord – by an equivalent amount so as to offset the effect of the IMF sale on the world gold market.

The IMF faces long-term financial problems because its traditional source of revenue – profits on lending – has dried up as countries have paid back giant loans extended during financial crises.

snip>

The panel recommends that the IMF put some of the quota money subscribed by IMF shareholder governments to work in capital markets.

This could involve very large sums, with the panel floating the idea of investing $30bn. It estimates that this could earn the IMF about $300m a year after paying interest on the quota money to the governments providing it.

snip>

Andrew Crockett, president of JPMorgan Chase International and chairman of the panel, said it was no longer appropriate for the IMF to rely on profits from crisis lending to fund all its activities and said the proposed new financing model was better suited to what the IMF actually did today.

more....

I'm sure it's just me, but doesn't it sound like they are becoming desperate for more money to pour into the capital markets? :freak:

[Demeter]

41. Whatever Alan Wants Can't Be Good

Bubbles, tiny bubbles....

[citizen snips]

16. Futures Point to Higher Open for Stocks

U.S. stock futures were pointing to a modest extension of the last session's Fed-inspired rally, with Dell Inc. set to climb on the news that Michael Dell will take day-to-day responsibilities again. Traders also will be eyeing results from oil giants Exxon Mobil and Royal Dutch Shell and monthly U.S. car sales.

S&P 500 futures rose 2.1 points at 1,445.10 and Nasdaq 100 futures added 3.5 points at 1,806.00. Dow industrial futures rose 18 points.

U.S. stocks leaped Wednesday, with the Dow Jones Industrial Average posting its best day of the year after the Federal Reserve left interest rates unchanged and indicated that inflation remains under control, easing concerns the central bank might have to raise interest rates. The Dow industrials rose 98 points, the S&P 500 ended 9.4 points higher and the Nasdaq Composite added 15 points.

The economic calendar is fairly busy for Thursday, though traders may be putting more emphasis on the nonfarm payrolls data that's one day away. Personal income, consumer spending and the PCE core inflation figures for December are all due at 8:30 a.m., with December pending home sales and January ISM manufacturing due at 10 a.m.

more...
http://biz.yahoo.com/ap/070201/wall_street.html?.v=2

[citizen snips]

17. Shell Earnings Up 21 Percent in 4Q

AMSTERDAM, Netherlands (AP) -- Royal Dutch Shell PLC reported a 21 percent increase in fourth-quarter earnings Thursday, buoyed in part by high energy prices and its sale of some operations.

The company also said it had taken important steps to bulk up its proven reserves, damaged in a 2004 accounting scandal.

But without the divestments and other one-time items, Shell's earnings from oil production fell 3 percent and overall quarterly sales were flat.

Net profit came to $5.28 billion, up from $4.37 billion, while sales were unchanged at $75.5 billion.

more...
http://biz.yahoo.com/ap/070201/netherlands_shell.html?.v=3

[citizen snips]

18. Under Armour 4Q Profit Misses Estimate

BALTIMORE (AP) -- Sports apparel maker Under Armour Inc. on Thursday reported fourth-quarter profit rose 69 percent on record sales of its clothing line, but it still missed Wall Street expectations.

Quarterly profit rose to $11.9 million, or 24 cents per share, compared with $7 million, or 8 cents per share, a year earlier. Revenue rose 55 percent to $135.3 million from $87.3 million in the year-ago period.

Wall Street expected earnings of 25 cents per share on $125 million of sales, according to analysts polled by Thomson Financial.

"The 55 percent growth in the top line for the quarter was matched with significant improvements in gross margin, and the strength of our business reflects our continued ability to connect with the athlete and to create innovative products that drive demand," said Chairman and Chief Executive Kevin A. Plank in a statement.

more...
http://biz.yahoo.com/ap/070201/earns_under_armour.html?.v=1

[citizen snips]

19. 2006 Personal Savings Drop to 74-Yr. Low

Personal Savings Rate for 2006 Drops to Negative 1 Percent, the Lowest Level in 74 Years

WASHINGTON (AP) -- People once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago.

The Commerce Department reported Thursday that the savings rate for all of 2006 was a negative 1 percent, meaning that not only did people spend all the money they earned but they also dipped into savings or increased borrowing to finance purchases. The 2006 figure was lower than a negative 0.4 percent in 2005 and was the poorest showing since a negative 1.5 percent savings rate in 1933 during the Great Depression.

For December, consumer spending rose a solid 0.7 percent, the best showing in five months, while incomes rose by 0.5 percent, both figures matching Wall Street expectations.

In other news, the Labor Department reported that the number of newly laid off workers filing claims for unemployment benefits dropped by 20,000 last week to 307,000. That improvement pushed the four-week average for claims to the lowest level in a year, indicating that the labor market remains healthy.

more...
http://biz.yahoo.com/ap/070201/economy.html?.v=5

[Nimrod2005]

20. Breaking: Exxon makes more profits than GOD!!! About $40 billion!

[citizen snips]

21. Tokyo, Chicago Exchanges Talk Alliance

TOKYO (AP) -- The Tokyo Stock Exchange is in talks about forming a possible alliance with the Chicago Mercantile Exchange, an exchange official said Thursday, one day after the Asia's biggest bourse announced a cooperative agreement with the New York Stock Exchange.

"We are in negotiations for a possible alliance with the CME, especially in the area of futures trading of Japan government bonds," said Toru Onoda, spokesman for the Tokyo exchange.

TSE President Taizo Nishimuro was to visit Chicago soon for talks with CME officials about a possible tie-up, Onoda said, adding that he could not speculate on how soon the two exchanges would finalize negotiations.

Onoda said both the TSE and CME agreed in 2000 to kick off a "strategic tie-up" consultations between them. He did not elaborate on how often both sides have held talks so far.

more...
http://biz.yahoo.com/ap/070201/japan_chicago_merc.html?.v=4

[citizen snips]

22. Ahead of the Bell: Apparel Retailers

NEW YORK (AP) -- Several apparel retailers were in the spotlight during premarket trading on Thursday, after Thomas Weisel Partners initiated coverage of Abercrombie & Fitch Co., American Eagle Outfitters Inc., Pacific Sunwear of California Inc. and Urban Outfitters Inc.

Shares of Abercrombie edged higher when Thomas Weisel analyst Liz Dunn began coverage with an "Overweight" rating, saying the company has dramatically improved its product over the past three years after a period of sagging sales and a strategic review. Dunn said the company took pricing and inventories back up to original levels while trying to create a differentiated product.

"The strategy worked and comparisons turned positive in 2004 and grew rapidly in 2005," Dunn wrote in a client note.

Abercrombie stock rose 54 cents to $80.08 in the premarket session, after closing at $79.54 Wednesday on the New York Stock Exchange.

more...
http://biz.yahoo.com/ap/070201/apparel_retailers_ahead_of_the_bell.html?.v=1

[citizen snips]

23. Ahead of the Bell: Time Warner

NEW YORK (AP) -- Analysts were mixed Thursday on media conglomerate Time Warner Inc.'s future after a quarterly earnings report, but said the cable, AOL and film segments could provide growth.

Time Warner on Wednesday said quarterly profit rose 34 percent to $1.75 billion, or 44 cents per share, on $12.5 billion in sales, while adjusted results were inline with analyst estimates, according to a Thomson Financial poll.

JPMorgan Securities Inc. analyst Imran Khan in a client note reiterated a "Neutral" rating, saying sales came in below his expectations, though the quarterly take of $12.5 billion slightly topped consensus estimates. The analyst said a weakness in filmed entertainment and publishing hurt sales, though the company slightly topped consensus analyst estimates.

Morgan Stanley analyst Benjamin Swinburne in a client note kept a positive opinion on the company, and reiterated an "Overweight" rating and $27 target price. He said he expects the company's film and cable segments to perform well. He also said shares are priced low, considering the company's potential.

more...
http://biz.yahoo.com/ap/070201/time_warner_ahead_of_the_bell.html?.v=1

[citizen snips]

24. Stocks in focus for Thursday's session

AirTran Holdings (NYSE:AAI - News) said it's going to extend its hostile takeover for Midwest Air Group (AMEX:MEH - News) to March 8, from an earlier deadline of Feb. 8, so that Midwest shareholders can receive all the information they need. AirTran also proposed adding three directors -- Jeff Erickson, Charles Kalmbach and John Albertine -- to Midwest's board. AirTran is offering about $345 million in cash and stock for Midwest.

Alliance Data Systems Corp. (NYSE:ADS - News) said fourth-quarter net income rose, as revenue gained, to $39.6 million, or 48 cents a share, from $31.3 million, or 38 cents a share, during the same period in the prior year.

Alliant Techsystems (NYSE:ATK - News) reported third-quarter earnings rose 8.8% on 17% higher revenue. Earnings reached $51.2 million, or $1.53 a share, from $47.1 million, or $1.26, in the year-earlier period. Revenue rose to $900.3 million from $770 million. A survey of analysts by Thomson Financial produced consensus estimates of $1.32 a share on revenue of $844 million. ATK lifted its estimate of earnings for fiscal 2007 to $5.10 to $5.15 a share, from its previous estimate of $4.95 to $5.05. And it now estimates sales at $3.5 billion, up from an earlier estimate of more than $3.45 billion. Thomson Financial estimates fiscal 2007 earnings of $5.08 a share on $3.46 billion of revenue. For fiscal 2008, Alliant expects to earn $5.80 to $6 a share, up from its previous estimate of $5.65 to $5.80. The company expects sales of $3.7 billion to $3.8 billion. Thomson estimates $5.86 a share and $3.67 billion.

American Standard Cos. Inc. (NYSE:ASD - News) reported fourth-quarter earnings of $114.3 million, or 56 cents a share, up from a year-ago profit of $64.4 million, or 30 cents a share. On an adjusted basis, excluding certain items, the company earned $104.5 million, or 51 cents a share, in the latest quarter. Sales at the Piscataway, N.J., maker of air conditioning systems as well as bath and kitchen products rose to $2.7 billion in the three months ended Dec. 31 from $2.55 billion in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 51 cents a share in the December period. Looking ahead, the company forecast adjusted earnings of $3.15 to $3.25 a share for fiscal 2007 on sales growth of about 8%. For the first quarter, it sees adjusted earnings of 48 to 52 cents a share with sales rising about 6%. Wall Street's current consensus estimate is for a profit of $3.08 a share for the year and 48 cents a share in the March period. Shares of American Standard, which also announced a restructuring plan calling for the separation of its three businesses, closed Wednesday at $49.39, up 2.1%.

more...
http://biz.yahoo.com/cbsm/070201/46a76e7374324badbbbf041f56b0c1fe.html?.v=1

[citizen snips]

25. Premarket Movers: Gilead Sciences Rises

NEW YORK (AP) -- Earnings reports and profit predictions dominated Thursday's premarket trading session as the fourth-quarter earnings season continued.

Gilead Sciences Inc.'s adjusted quarterly profit beat Wall Street expectations, sending shares up $5.48, or 8.5 percent, to $69.80, in premarket electronic trading. The biopharmaceutical company also reported a 48 percent rise in sales for the fourth quarter.

CIBC World Markets analyst Bret Holley upgraded the shares to "Sector Outperform" from "Sector Perform," encouraged by the quarterly results, strong 2007 guidance, and expectations for substantial revenue from late-stage products.

"Gilead's execution has historically been strong, and we see no reason why this should not continue in 2007," Holley wrote in a client note.

more...
http://biz.yahoo.com/ap/070201/premarket_movers.html?.v=2

[54anickel]

27. Bush 'spoiling for a fight' with Iran

Interesting reader comments following the article

http://www.guardian.co.uk/worldbriefing/story/0,,2002232,00.html

US officials in Baghdad and Washington are expected to unveil a secret intelligence "dossier" this week detailing evidence of Iran's alleged complicity in attacks on American troops in Iraq. The move, uncomfortably echoing Downing Street's dossier debacle in the run-up to the 2003 Iraq invasion, is one more sign that the Bush administration is building a case for war.

Nicholas Burns, the senior US diplomat in charge of Iran policy, says Washington "is not looking for a fight" with Tehran. The official line is that Washington has made a conscious decision to "push back" against Iran on a range of fronts where the two countries' interests clash. Primarily that means Tehran's perceived meddling in Iraq, where its influence with the Shia-led government and Shia majority population appears to be increasing as Washington's weakens.

State department spokesman Sean McCormack claimed this week the administration has a body of evidence implicating Iran in sectarian attacks against Iraq's Sunni minority. "There is a high degree of confidence in the information that we already have and we are constantly accumulating more," he told the New York Times.
CIA and Pentagon officials are also touting intelligence that "Iranians are smuggling into Iraq sophisticated explosive devices, mortars, and detailed plans to wipe out Sunni Arab neighbourhoods," the paper said. Officials would make a "comprehensive case" this week. But President George Bush has already acted on information received. He confirmed yesterday that he has ordered US forces in effect to kill or capture Iranian "agents" targeting Americans in Iraq - as happened earlier this month when five Iranian officials were detained in Irbil.

Hassan Kazemi Qumi, Iran's ambassador to Iraq, ridiculed "sectarian maps" and evidence the US military said it had obtained during a raid on a Shia compound in Baghdad. He repeated Tehran's contention that Iranians were in Iraq to help with "security problems". Barham Saleh, Iraq's deputy prime minister, complains that the US and Iran are turning his country into a "zone of conflict and competition" and suggests they take their fight elsewhere.

But as was also the case in the days before Saddam Hussein fell, powerful external forces, ranging from exiled Iranian opposition groups to leading Israeli politicians, appear intent on stoking the fire - and winding up the White House.

more...

[54anickel]

29. Distressed debt warning as supply dwindes

http://www.ft.com/cms/s/053fe178-b15a-11db-b901-0000779e2340.html

An imbalance between supply and demand is nudging up prices of distressed and “stressed” debt to inflated levels, bankers have warned.

Distressed debt typically trades at a discount to its par value, reflecting the increased credit risk of the underlying company. Investors in such securities are betting on being bought out at par, or having their debt converted into equity, in a subsequent restructuring.

However, bankers have questioned whether discounts are too narrow in the present market.

Gareth Noonan, managing director of European high-yield capital markets at Merrill Lynch, said stressed bank and mezzanine debt were trading at levels which might not reflect credit quality since a relatively big number of investors was chasing a limited number of distressed opportunities.

“There are more than 20 dedicated distressed investors and fewer than 10 distressed opportunities,” he said. “As a result, most stressed or distressed debt, especially senior debt, is trading at inflated levels.”

Dennis Buckley, managing director of Bright Asset, the London-based debt advisory boutique, said: “We think the pricing of distressed credits is inflated due to the . . . liquidity in the market.”

more...

[54anickel]

30. Why private equity firms are jittery

http://money.cnn.com/2007/01/30/markets/benner_PEconf.fortune/index.htm?postversion=2007013014

snip>

As noted at the Dow Jones private equity analyst outlook conference Tuesday, "It's as if the industry had the markets in a trance."

But if there is a chink in the private equity armor, it may be the people who ultimately write the checks. The "limited partners," those who let private equity firms invest their money, may balk at some of the most attractive deals in the future, said Sheryl Schwartz, managing director of alternative investments at retirement fund powerhouse TIAA-CREF.

Schwartz told attendees that there are simply too many potential deals out there, and that the big megabuyouts still need to prove that they can generate returns as well as headlines. Her group is nervous about the high multiples being paid and the growing debt, so it has limited its commitments to the huge buyouts to 30%. "The top five deals accounted for 35% of the capital raised," referring to the fact that a few megadeals dominated the M&A landscape. She adds that these firms are coming back to the market for more funding, but that she doubts they've deployed all the capital they've already raised.

snip>

Participants noted that in the world of limited partners, there aren't enough people to do the due diligence necessary to look at all the possible deals, and that this could mean that opportunities are getting away. And there may be other disincentives to further huge deals. Jeffrey Walker, chairman and CEO of CCCMP Capital Advisors, said that megadeals are risky because it's hard to know who, in a 6-firm consortium of private equity players, will really be in charge. "Building that consensus is a hard thing, even if we're all the best of friends," said Walker.

snip>

"Until something goes really bad, you'll be surprised at how 'big' big really is in the short term," said Lawrence Schloss, chairman and chief executive at Diamond Castle Holdings. If this sounds bubble-like, then maybe the markets will be glad the limited partners slowed the train.

more...



Private equity wary about debt drought
Industry experts contend that firms need to focus on how to add and create value in case debt markets dry up.

http://money.cnn.com/2007/01/30/markets/debt_equity/index.htm

snip>

Private equity firms need to look beyond leveraging a company and focus on how they're adding and creating value otherwise they'll be caught off guard when debt markets dry up, said Jeffrey Walker, chairman and CEO of CCMP Capital Advisors, a private equity firm formed by the former buyout professionals of J.P. Morgan Partners.

Aided by one of the most favorable debt environments in years, private equity firms raised some $215 billion last year, up from $161 billion in 2005. With so much cash on hand, firms went on a buying spree, scooping up one target after another.

The robust activity level has raised wariness among some investors. Sheryl Schwartz, managing director of alternative investments for TIAA-CREF, said she limits her commitments to large buyouts to 30 percent because of the higher multiples being paid and the ever larger debt levels seen in transactions.

While higher valuations and increased competition face private equity firms this year, enthusiasm for buyouts should keep the deals flowing, conference participants agreed.

It's a mega world for private equity - as long as the debt markets remain favorable, they said.

more...


What is distressed debt these days?
http://vcexperts.com/vce/library/encyclopedia/glossary_view.asp?glossary_id=287

Corporate bonds of companies that have either filed for bankruptcy or appear likely to do so in the near future. The strategy of distressed debt firms involves first becoming a major creditor of the target company by snapping up the company's bonds at pennies on the dollar. This gives them the leverage they need to call most of the shots during either the reorganization, or the liquidation, of the company. In the event of a liquidation, distressed debt firms, by standing ahead of the equity holders in the line to be repaid, often recover all of their money, if not a healthy return on their investment. Usually, however, the more desirable outcome is a reorganization, which allows the company to emerge from bankruptcy protection. As part of these reorganizations, distressed debt firms often forgive the debt obligations of the company, in return for enough equity in the company to compensate them. (This strategy explains why distressed debt firms are considered to be private equity firms.)

[54anickel]

31. Goldman's McGoldrick, Debt Specialist, Will Retire (Gettin while the gettin's good?)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aOQKgDCBtUM0&refer=home

Jan. 23 (Bloomberg) -- Goldman Sachs Group Inc.'s Mark McGoldrick, a distressed-debt specialist whose bet on failed Japanese golf courses made the securities firm about $500 million in the fourth quarter, plans to retire.

McGoldrick, who's 47 and based in London, is leaving as co- head of Goldman's Special Situations Group for personal reasons, said Lucas van Praag, a company spokesman. His partner, New York- based Stephen McGuinness, will take sole charge of the unit, van Praag said.

Goldman, the world's largest securities firm by market value, is losing McGoldrick as analysts doubt its chances of matching last year's earnings of $9.5 billion, the highest in Wall Street history. The departure will test Goldman's record of developing replacements for star traders like McGoldrick, who earned more than Chief Executive Officer Lloyd Blankfein in 2005.

snip>

McGoldrick, a former college football lineman, led a team in Asia that focused on buying the debt of companies near default, lending to business in financial crisis and trading in shares of post-bankruptcy stocks. His investments ranged from a South Korean liquor company to repossessed cars in Thailand. A stake in Accordia Golf Co., a Japanese golf-course operator that went public last year, produced a gain of about $500 million for Goldman in the fourth quarter.

$50 Million

``Mark and his colleagues have built a very strong team and a very broad business,'' van Praag said. ``He is retiring for personal reasons and we wish him all the best.'' McGoldrick wasn't available to comment.

McGoldrick's bets were so successful he made $50 million in 2005, according to Trader Monthly magazine, more than the $38 million Goldman paid Blankfein, who was its president at the time. Van Praag declined to comment on McGoldrick's compensation. McGoldrick moved to London from Tokyo at the end of 2005.

more...

[citizen snips]

32. Treasuries Fall on Surprise Rise in Pending Existing-Home Sales

Feb. 1 (Bloomberg) -- Treasuries declined after private reports showed a bigger-than-expected December rise in pending sales of existing homes and a surprise January increase in prices manufacturers pay for raw materials.

Signs the slump in the housing market may be reaching bottom have led traders to eliminate bets the Federal Reserve will cut interest rates in the first half of the year. The Fed yesterday kept borrowing costs steady, citing economic stability.

``You're seeing signs the economy still looks fairly strong,'' said Andy Richman, who oversees $10 billion in fixed- income assets as a strategist in West Palm Beach, Florida, for SunTrust Bank's personal asset management division. ``Given that, there's no reason why the 10-year couldn't move up'' in yield.

The yield on the benchmark 10-year note rose 3 basis points, or 0.03 percentage point, to 4.84 percent at 12:40 p.m. in New York, according to New York based bond broker Cantor Fitzgerald LP. The price of the 4 5/8 percent security due November 2016 fell 6/32, or $1.88 per $1,000 face value, to 98 3/8.

more...
http://www.bloomberg.com/apps/news?pid=20601009&sid=a_2o0kgVyWvI&refer=bond

[citizen snips]

33. Dollar Is Little Changed Versus Yen, Euro Before Payroll Data

Feb. 1 (Bloomberg) -- The dollar was little changed against the yen and euro before a report tomorrow that is forecast to show U.S. employers hired the fewest workers in three months.

The yen gained against the dollar earlier after reports showed a U.S. manufacturing index contracted and a measure of inflation was less than forecast. The Japanese currency has rebounded from a four-year low versus the dollar on Jan. 29.

``People are waiting for a clearer signal of which way the U.S. economy is heading,'' said Brian Dolan, research director at Forex.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey, which has about $250 million worth of funds under management. ``They don't want to put big positions before the payroll report.''

The U.S. currency traded at 120.69 yen at 1:06 p.m. in New York, from 120.70 yesterday. The dollar traded at $1.3022 per euro from $1.3032. The yen gained to 157.16 per euro, from 157.29.

more...
http://www.bloomberg.com/apps/news?pid=20601083&sid=aYEk0afsyxMs&refer=

[citizen snips]

34. Earnings Preview: THQ Inc.

NEW YORK (AP) -- THQ Inc. reports earnings for its fiscal third quarter, which ended in December, on Friday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: The quarter ending in December is the most important (and lucrative) one for video game publishers, as most consumers buy games ahead of the holidays. This past quarter also saw the launch of long awaited next-generation gaming consoles: Sony Corp.'s PlayStation 3 -- released amid widespread shortages -- and Nintendo's Wii, which has also been selling out in stores across the country. The two join Microsoft's Xbox 360 in the new cycle of gaming systems.

THQ already preannounced a strong third quarter, citing better than expected sales of its "WWE SmackDown vs. Raw 2007," "Cars" and "Avatar: The Last Airbender" games.

The company said in January an independent investigation into its stock option granting practices found no evidence of fraud or misconduct. Nonetheless, THQ restated some of its finances, trimming its full-year profit going back to 2004.

more...
http://biz.yahoo.com/ap/070201/earns_preview_thq.html?.v=2

[citizen snips]

35. Sector Snap: Gold Shares Gain

NEW YORK (AP) -- Shares of gold producers pulled ahead on Thursday, as gold prices dug up a second day of gains.

Gold for April delivery picked up $5.30 to $663.20 an ounce in late trading on the New York Mercantile Exchange, after Wednesday's rally on the back of dollar weakness against the euro.

The price of gold tends to rise when the dollar is weak against foreign currencies, as investors seek a so-called safer haven for their funds.

Miners' shares followed the gold price higher.

more...
http://biz.yahoo.com/ap/070201/metals_sector_snap.html?.v=1

[citizen snips]

36. Midday Leaders & Laggards: DJIA

NEW YORK (AP) -- Boeing Co. pulled up the Dow Jones Industrial Average in midday trading Thursday, the second trading day after the airplane maker booked more than doubled fourth-quarter profit, trouncing analyst expectations.

Shares were up $1.46 to $91.02 at midday on the New York Stock Exchange, after earlier hitting a new all-time high of $92.24.

The Dow climbed 17.62 points to 12,639.31.

DuPont Co. climbed 89 cents to $50.45 on the Big Board after the chemicals maker said it raised prices on copolymer resins, said it stepped up plans for biofuels production and announced plans to build a research and development center in India.

more...
http://biz.yahoo.com/ap/070201/midday_leaders_laggards_djia.html?.v=1

[citizen snips]

37. Midday Leaders & Laggards: Nasdaq 100

NEW YORK (AP) -- Gilead Sciences Inc. reported fourth-quarter results that topped the expectations of analysts, and the biopharmaceutical company's stock became the top gainer Thursday on the Nasdaq 100.

The index declined 4.87 to 1,787.41 at midday. The broader Nasdaq composite index was down 3.42 to 2,460.51.

Two analysts upgraded the Foster City, Calif.-based company on the results, and shares hit a new all time high of $71.84 earlier in the session. At midday, Gilead was up $6.97, or 10.8 percent, to $71.29.

A Stifel Nicolaus & Co. upgrade of VeriSign Inc., following a partial release of its fourth-quarter results and a restatement announced, sent shares of the Internet service provider up $1.60, or 6.7 percent, to $25.50. Analyst Todd C. Weller said he expects the company to expand its margins and see earnings accelerate in 2008.

more...
http://biz.yahoo.com/ap/070201/nasdaq_leaders.html?.v=1

[citizen snips]

38. Euro Trades Lower Against U.S. Dollar

BERLIN (AP) -- The euro traded a little lower against the dollar on Thursday, despite a report showing that the United States' manufacturing sector contracted in January.

The euro bought US$1.3017 in late European trading, down from US$1.3028 in New York late Wednesday. The British pound rose to US$1.9679 from US$1.9647, while the dollar slipped to 120.64 Japanese yen from 120.71 yen.

The dollar briefly lost ground, with the euro rising to around the US$1.3050 level, after the Institute for Supply Management said its manufacturing index registered 49.3 in January, compared with 51.4 in December. A reading below 50 indicates a contraction in U.S. manufacturing.

However, the impact was limited ahead of closely watched data on U.S. payrolls, expected on Friday.

more...
http://biz.yahoo.com/ap/070201/euro_dollar.html?.v=2

[citizen snips]

39. Toyota, DaimlerChrysler Sales in U.S. Up

DETROIT (AP) -- Toyota Motor Corp. said Thursday its January U.S. sales rose 9.5 percent to again surpass the monthly sales of Ford Motor Co., which saw its sales drop 19 percent.

DaimlerChrysler AG's sales rose 3.2 percent compared with January 2006, also topping Ford's sales for the month.

This year, Toyota is expected to take Ford's No. 2 spot in U.S. sales after its sales surpassed Ford's in two months last year. The Japanese automaker sold 175,850 vehicles last month, including 100,256 cars and 75,594 trucks.

On Wednesday, Ford warned that it expected to post a 20 percent drop compared with January 2006 amid fewer sales to rental-car companies. General Motors Corp. said last week that it expected its January sales to be down, also because of lower rental fleet sales.

more...
http://biz.yahoo.com/ap/070201/auto_sales.html?.v=8

[citizen snips]

40. Sector Snap: Harry Potter Selling Starts

NEW YORK (AP) -- Major book sellers on Thursday began offering pre-orders of the seventh book in the best-selling "Harry Potter" fantasy series, after the announcement of a July 21 publication date for the highly anticipated book.

Scholastic Corp. is the American publisher for "Harry Potter and the Deathly Hollows," the culmination of the series following Harry, his friends and enemies.

Citigroup analyst William Bird in a client note kept a "Hold" rating on shares of Scholastic, saying the stock already prices in much of the Harry Potter momentum. He has a $36 target price on shares.

He anticipates the book will generate $210 million in sales in 2008, a contribution of as much as 62 cents per share to earnings.

more...
http://biz.yahoo.com/ap/070201/harry_potter_sector_snap.html?.v=1

[citizen snips]

42. January Auto Sales: Ford Motor Co.

DEARBORN, Mich. (AP) -- Ford Motor Co. said Thursday its January U.S. sales fell, mainly as a result of a planned 65 percent drop in sales to daily rental companies.

Ford's sales fell 19 percent to 165,877 vehicles in January, down from 204,707 vehicles in January 2005.

Car sales fell 32.5 percent to 55,842 units from 82,710, while truck sales dropped 9.8 percent to 100,035 from 121,997 in the year-ago period.

Sales of Ford brand vehicles fell 22 percent to 131,021 vehicles from 168,448 in the 2005 month.

more...
http://biz.yahoo.com/ap/070201/ford_sales.html?.v=4

[citizen snips]

43. January Auto Sales: GM

DETROIT (AP) -- General Motors Corp. on Thursday posted a steep decline in January domestic auto sales due to weaker demand for most of its major brands.

January 2006 sales totaled 247,464 vehicles, down 16.4 percent from 296,003 vehicles in the same month a year ago.

Overall sales of cars declined 22.5 percent to 104,156, while truck sales fell 11.3 percent 143,308. The recent month was marked by sharply lower volumes of Buick, Cadillac and Chevrolet models, as well as weaker sales of Hummer sport utility vehicles.

Adjusted for one extra selling day last month, total monthly sales slid 19.7 percent.

http://biz.yahoo.com/ap/070201/gm_sales.html?.v=1

[citizen snips]

44. Stocks Mixed Following Data, Google

NEW YORK (AP) -- Stocks were narrowly mixed Thursday as Wall Street balanced enthusiasm about robust consumer spending figures with disappointment in Google Inc.'s profit report, which dragged on technology stocks.

The muted performance followed Wall Street's best day of the year on Wednesday, when it advanced sharply after the Federal Reserve signaled the economy remained solid and that inflation was largely in check. The central bank's comments, which followed its decision to leave short-term interest rates unchanged, injected a bit of confidence into an uncertain Wall Street. The first month of the year had revealed investor uneasiness about whether stocks were poised to climb higher from sharp gains seen in 2006 or whether the Fed and a drop corporate profits would bring an unceremonious end to the party.

Economic data continued to play a big role in trading, as it has all week. As expected, consumer spending in December showed its biggest increase in five months, rising 0.7 percent.

"It seems to me the Fed is on hold for the foreseeable future and stocks are taking solace in that," said Brian Levitt, corporate economist for OppenheimerFunds Inc. While he expects the Fed is most likely to leave rates unchanged in 2007, he said that if it did make a move the central bank would be more likely to raise rates than lower them.

more...
http://biz.yahoo.com/ap/070201/wall_street.html?.v=24

[citizen snips]

45. Venezuela Complies With OPEC Output Cuts

CARACAS, Venezuela (AP) -- Oil Minister Rafael Ramirez said Thursday Venezuela is strictly complying with the production quota set for it by the Organization of Petroleum Exporting Countries.

"The 57,000 barrel a day cut is starting now," said Ramirez, adding that most of the oil that Venezuela is cutting comes from the Orinoco River basin.

OPEC in recent months has committed to a total cut in output of 1.7 million barrels per day, including a 500,000 barrel-a-day reduction set to begin Feb. 1.

A founding member of OPEC along with Saudi Arabia, Venezuela has consistently been one of the cartel's strongest price hawks.

more...
http://biz.yahoo.com/ap/070201/venezuela_opec.html?.v=2

[citizen snips]

46. U.S. Stocks Rise on Spending, Inflation Data; Retailers Advance

Feb. 1 (Bloomberg) -- A rally in U.S. stocks sent the Dow Jones Industrial Average to a record after the government said consumers spent more without fueling inflation.

Retailers gained, paced by Circuit City Stores Inc. and J.C. Penney Co. Energy shares climbed the most among 10 industry groups in the Standard & Poor's 500 Index after profit at Exxon Mobil Corp. and Valero Energy Corp. surpassed analysts' estimates. Google Inc. pushed the Nasdaq Composite Index lower after the company posted revenue that failed to top projections.

Personal spending increased in December by the most in five months and an inflation measure rose less than forecast. The data reinforced comments yesterday from the Federal Reserve that economic growth is picking up without accelerating consumer-price increases. The central bank also left interest rates unchanged.

``We have an ideal environment for stocks, with a benign interest rate and the consumer doing a bit better,'' said Dan Veru, who helps manage $2.8 billion at Palisade Capital Management in Fort Lee, New Jersey. Also, ``we have very solid earnings for companies that are more economically sensitive. That's what's driving the market right now.''

more...
http://www.bloomberg.com/apps/news?pid=20601084&sid=aUP1gDsyGHUA&refer=stocks

[citizen snips]

47. Chips Snap: on Semi Hits New Year High

NEW YORK (AP) -- Semiconductor stocks edged up in Thursday's trading, led by On Semiconductor Corp., which handily beat Wall Street's fourth-quarter earnings expectations.

On Semiconductor on Thursday reported fourth-quarter income more than quadrupled to $87.4 million, or 27 cents per share. Analysts polled by Thomson Financial had anticipated earnings of 17 cents per share.

Shares of On Semiconductor, which have traded between $5.12 and $8.74 over the last year, were up $1.29, or 15.4 percent, at $9.65 in afternoon trading on the Nasdaq. Earlier in the session shares set a new 52-week high of $9.75.

In a note to investors, Friedman Billings Ramsey analyst Chris Caso said he thinks On Semiconductor, a maker of power management and data storage semiconductors, could deliver further upside as new foundry customers are added.

more...
http://biz.yahoo.com/ap/070201/semiconductors_sector_snap.html?.v=1

[ozymandius]

48. the three-ish update

3:09
Dow 12,671.68 Up 49.99 (0.40%)
Nasdaq 2,469.38 Up 5.45 (0.22%)
S&P 500 1,445.85 Up 7.61 (0.53%)
10-Yr Bond 4.835% Up 0.009
NYSE Volume 2,234,765,000
Nasdaq Volume 1,744,968,000

2:30 pm : So much for renewed enthusiasm in the disappointment that has been Dell (DELL 23.97 -0.25) for so long (nearly seven years) providing any support for the market. Within the last 30 minutes, the stock has relinquished its entire "return-of-the-founder" related gain and then some, as it is now down 1.0%. Evidence of the shift in sentiment is further reflected on the Nasdaq, which is again back in the red as Technology remains the day's worst performing sector.DJ30 +24.91 NASDAQ -1.01 SP500 +4.69 NASDAQ Dec/Adv/Vol 1252/1729/1.53 bln NYSE Dec/Adv/Vol 952/2274/1.12 bln

[citizen snips]

49. Market Spotlight: Airlines

NEW YORK (AP) -- It's been a bumpy few weeks for airline stocks, but analysts urge investors to keep focused on the industry's still-bright fudamentals.

Within the first two weeks of trading in 2007, the Amex Airline Index of 11 industry stocks surged nearly 15 percent and cruised to a new 52-week high on Jan. 16. But just as quick as the rise, the index has since fallen back close to where it began the year.

All the volatility could scare investors away from airlines, which only recently won back the market's favor. The industry has been fighting the effects of the 2001 terrorist attacks, Chapter 11 bankruptcy filings and billions of dollars in losses between 2001 and 2005.

But analysts say the recent climb and fall of airline shares have been more about hopes for industry consolidation and other secondary factors than about fundamentals. The industry's outlook, they say, remains bright.

more...
http://biz.yahoo.com/ap/070201/airlines_market_spotlight.html?.v=1

[citizen snips]

50. Anheuser-Busch 4Q Earnings Up 31 Percent

ST. LOUIS (AP) -- Anheuser-Busch Cos. Inc., the nation's biggest brewer, said its profit rose 31 percent in the fourth quarter on renewed growth in domestic beer sales.

The maker of top-selling Budweiser and Bud Light beers earned $190.7 million, or 25 cents per share, in the three months ended Dec. 31 compared to $145.6 million, or 19 cents per share, in the fourth quarter of 2005.

Net revenue after excise taxes rose to $3.42 billion from $3.37 billion a year ago.

The projections matched expectations of analysts surveyed by Thomson Financial.

more...
http://biz.yahoo.com/ap/070201/earns_anheuser_busch.html?.v=2

[citizen snips]

51. Boeing Shares Hit a New High

Boeing Co. shares reached a new 52-week high Thursday, as Banc of America Securities and other firms lifted their earnings estimates and target prices, citing robust fourth-quarter results and a bullish outlook for the company's 787 next-generation aircraft.

Shares of the Chicago-based company hit a high of $92.24 before moving back to $91.25, up $1.69, in afternoon trading.

On Wednesday, Boeing reported fourth-quarter profit more than doubled to $989 million or $1.29 per share. The company also boosted its 2007 earnings outlook.

Analyst Robert Stallard kept his "Buy" rating on Boeing and raised his price target by $2 to $110, pointing to the company's projected growth for 2008 and strong cash flows. He noted Boeing maintained spending levels on its 787 aircraft, signaling progress on the program.

more...
http://biz.yahoo.com/ap/070201/boeing_mover.html?.v=1

[citizen snips]

52. delete

[citizen snips]

53. Thursday's biggest stock gainers and decliners

AGL Resources (NYSE:ATG - News) reported fourth-quarter earnings of $47 million, or 60 cents a share, and said it expects a profit of $2.75 to $2.85 a share for fiscal 2007. The Atlanta-based energy services provider also said its board has approved an 11% hike in its annual dividend rate to $1.64 a share.

Alliant Techsystems (NYSE:ATK - News) reported third-quarter earnings rose 8.8% on 17% higher revenue. Earnings reached $51.2 million, or $1.53 a share, from $47.1 million, or $1.26, in the year-earlier period. Revenue rose to $900.3 million from $770 million. A survey of analysts by Thomson Financial produced consensus estimates of $1.32 a share on revenue of $844 million. ATK lifted its estimate of earnings for fiscal 2007 to $5.10 to $5.15 a share, from its previous estimate of $4.95 to $5.05. And it now estimates sales at $3.5 billion, up from an earlier estimate of more than $3.45 billion.

American Standard Cos. Inc. (NYSE:ASD - News) shares roared to a record high on Thursday after the company reported a 77% surge in fourth-quarter profit and announced it will split into three different businesses.

Archer Daniels Midland (NYSE:ADM - News) said higher ethanol and sweetener prices outpaced a run-up in corn costs during the last quarter, as the agricultural processor and No. 1 U.S. ethanol producer posted a 20% gain in quarterly profit.

more...
http://biz.yahoo.com/cbsm/070201/46a76e7374324badbbbf041f56b0c1fe.html?.v=4

[54anickel]

54. Senate Ups Wage to $7.25 Over Two Years

Senate Raises Minimum Wage to $7.25 Over Two Years; Lawmakers Add Business Breaks in Hike

http://biz.yahoo.com/ap/070201/minimum_wage.html?.v=12

WASHINGTON (AP) -- The Senate voted overwhelmingly Thursday to boost the federal minimum wage by $2.10 to $7.25 an hour over two years, but packaged the increase with controversial tax cuts for small businesses and higher taxes for many $1 million-plus executives.

The increase in the minimum, the first in a decade, was approved by a 94-3 vote, capping a nine-day debate over how to balance the wage hike with the needs of businesses that employ low-wage workers.

A top priority of Democrats, the wage hike has both real and symbolic consequences. It would be one of the first major legislative successes of the new Democratic-controlled Congress.

"Passing this wage hike represents a small but necessary step to help lift America's working poor out of the ditches of poverty and onto the road toward economic prosperity," said Sen. Edward Kennedy, D-Mass.

President Bush urged the House to support the measure, including the tax help for small business. He said, "The Senate has taken a step toward helping maintain a strong and dynamic labor market and promoting continued economic growth."

The bill must now be reconciled with the House version passed Jan. 10 that contained no tax provisions. House Democrats have insisted they want a minimum wage bill with no strings attached, though some have conceded the difficulty of passing the legislation in the Senate without tax breaks.

more...

[54anickel]

55. Fly by closing post

Dow 12,673.68 51.99 (0.41%)
Nasdaq 2,468.38 4.45 (0.18%)
S&P 500 1,445.94 7.70 (0.54%)
10-yr Bond 4.8370% 0.0110
30-yr Bond 4.9330% 0.0070
NYSE Volume 2,957,717,000
Nasdaq Volume 2,282,561,000

4:20 pm : The Stock Trader's Almanac states that, "as the S&P goes in January, so goes the year." Well, with the S&P 500 briefly slipping into negative territory for 2007 last Friday but rallying into the end of the month to finish up 1.4%, that momentum carried over into Thursday's session, jumpstarting what is historically a flat month for equities.

Strong leadership from several key sectors, especially Industrials, contributed to the bullish disposition that left the Dow at a new record high. Raytheon (RTN 52.55 +0.65) becoming the second defense contractor in as many days to post strong Q4 results prompted follow-through buying in Boeing (BA 91.05 +1.49). The Dow component surged 1.7% to a new all-time high.

More notable was the economically-sensitive sector's ability to look past a discouraging update about manufacturing conditions. The January ISM index unexpectedly fell to 49.3%, indicating contraction, which ran counter to a Fed directive that showed firming economic growth a day earlier. The disappointment initially left investors questioning the validity of Wednesday's rally that we still believe was overdone considering the Fed's continued talk about tightening.

Be that as it may, investors eventually rallied around an earlier report that reinforced the Fed's view of moderating inflation pressures. Before the bell, the Commerce Dept. reported only a 0.1% rise in the core PCE deflator -- the Fed's favored inflation measure. While the January data left the year/year increase steady at 2.2%, still probably above where the Fed would like to see it, the rate of increase slowing over the last three months offered some added relief on the market's current focus -- inflation.

The Industrials sector's best performer, though, was American Standard (ASD 53.14 +3.75), which soared more than 7% to a record high after posting a 77% rise in Q4 earnings and saying it will split into three different businesses. The Dow Jones Transportation Average eclipsing the 5,000 mark for the first time since May, getting a boost from falling oil prices, provided additional support Industrials.

With regard to crude, the Energy sector's resilience in the face of a 1.4% pullback in oil was also noteworthy. After surging nearly 8% over the last two days, crude for March delivery closed lower at $57.30/bbl in sympathy with a decline in natural gas futures following bearish supply data. Exxon Mobil (XOM 75.08 +0.98) said that it earned $39.5 bln in 2006, the largest profit ever for a U.S. company. Valero Energy (VLO 56.03 +1.75), which also handily topped Wall Street expectations, got an additional lift as it weighed the possible sale of an Ohio refinery.

The Financials sector also showed its buoyancy, as an increase in borrowing costs was overshadowed by Lehman Brothers' (LEH 85.04 +2.80) plan to buy back nearly 20% of its stock.

Of the two sectors trading lower, the absence of leadership from Technology was the only reason the indices didn't turn in an even better performance. Google (GOOG 481.75 -19.75) failed to impress shareholders with a report that still showed Q4 profits nearly tripled. A change in sentiment as to what Michael Dell's return as CEO to the company that bears his name -- Dell (DELL 23.80 -0.42) -- also weighed on the influential sector. BTK +1.3% DJ30 +51.99 DJTA +1.7% DJUA 0.8% DOT +0.6% NASDAQ +4.45 NQ100 -0.1% R2K +0.9% SOX +0.8% SP400 +0.9% SP500 +7.70 XOI +1.3% NASDAQ Dec/Adv/Vol 1086/1952/2.15 bln NYSE Dec/Adv/Vol 881/2405/1.66 bln

3:30 pm : Buyers remain an active bunch going into the close as all three major indices hit their best levels of the afternoon. The Dow is currently 53 points above its record close while the S&P 500 and even the Nasdaq now are also kicking off what is typically a flat month for stocks on an upbeat note. According to the Stock Trader’s Almanac, February is the worst month during what it deems as the “Best Six Months.” DJ30 +53.43 NASDAQ +5.28 SP500 +7.04 NASDAQ Dec/Adv/Vol 1101/1914/1.83 bln NYSE Dec/Adv/Vol 918/2335/1.34 bln

3:00 pm : The Dow and S&P 500 are extending their reach into positive territory, with oil prices spiking lower into the close of trading on the NYMEX providing a buying catalyst. More notably has been Energy's resilience in the face of falling oil, as it still paces the way (+1.1%) among the eight sectors trading higher. In fact, Exxon Mobil (XOM 75.14 +1.07) now up 1.4% better positions the Dow to do what it has successfully done in six of the last seven years on the first trading day in February, according to the Stock Trader's Almanac, close to the upside. DJ30 +47.17 NASDAQ +3.65 SP500 +7.60 NASDAQ Dec/Adv/Vol 1222/1776/1.64 bln NYSE Dec/Adv/Vol 940/2284/1.20 bln

2:30 pm : So much for renewed enthusiasm in the disappointment that has been Dell (DELL 23.97 -0.25) for so long (nearly seven years) providing any support for the market. Within the last 30 minutes, the stock has relinquished its entire "return-of-the-founder" related gain and then some, as it is now down 1.0%. Evidence of the shift in sentiment is further reflected on the Nasdaq, which is again back in the red as Technology remains the day's worst performing sector.DJ30 +24.91 NASDAQ -1.01 SP500 +4.69 NASDAQ Dec/Adv/Vol 1252/1729/1.53 bln NYSE Dec/Adv/Vol 952/2274/1.12 bln

2:00 pm : The blue-chip indices continue to sport modest gains while the Nasdaq still languishes near the flat line. The S&P 500 is retracing morning highs and is at its best level of the afternoon as Energy continues to chip away at its lackluster performance so far in 2007. On the Dow, DuPont (DD 50.55 +0.99) still leads the way (+2.0%) among the 19 components trading higher, as investors applaud news that it will raise polymer prices. Other notables posting gains of at least 1% include AA, BA, CAT, PFE and XOM; losses of more than 1% are being seen in MSFT, HPQ, and VZ.DJ30 +26.27 NASDAQ +0.73 SP500 +5.39 NASDAQ Dec/Adv/Vol 1228/1749/1.43 bln NYSE Dec/Adv/Vol 937/2257/1.03 bln

1:30 pm : The major averages are back to trading in split fashion, but advancers on the Nasdaq still holding a 4-to-3 edge over decliners lends little conviction behind the recent move on the part of sellers. While another reversal in chip stocks is contributing to the tech-heavy Composite's latest downturn, lost leadership from the Consumer Discretionary's most influential name is acting as an even larger obstacle for the bulls. Broadcasting & Cable TV (-2.8%) ranks as today's worst performing S&P industry group as Comcast (CMCSA 42.29 +2.05) slips to session lows on the heels of its Q4 earnings shortfall.DJ30 +17.06 NASDAQ -3.30 SOX -0.1% SP500 +3.90 NASDAQ Dec/Adv/Vol 1289/1656/1.30 bln NYSE Dec/Adv/Vol 961/2237/946 mln

http://finance.yahoo.com/marketupdate/update