STOCK MARKET WATCH, Wednesday March 21

[ozymandius]

Source: DU

Wednesday March 21, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 670 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2277 DAYS
WHERE'S OSAMA BIN-LADEN? 1981 DAYS
DAYS SINCE ENRON COLLAPSE = 1941
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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

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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 March 20, 2007

Dow... 12,288.10 +61.93 (+0.51%)
Nasdaq... 2,408.21 +13.80 (+0.58%)
S&P 500... 1,410.94 +8.88 (+0.63%)
Gold future... 659.00 +4.70 (+0.71%)
30-Year Bond 4.71% -0.01 (-0.21%)
10-Yr Bond... 4.55% -0.02 (-0.53%)






GOLD, EURO, YEN, Loonie and Silver

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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

---

Read more: DU

[ozymandius]

1. Today's Market WrapUp

Let the Sunshine In...
BY FRANK BARBERA, CMT

What a difference a few days can make. Last week, when we penned these commentaries, the S&P was plunging toward a retest of its lows with strong support clearly pegged in the 1360 zone. We wrote at the time that,

“Against this backdrop, a medium term low of some degree should form with prices rising in coming days to establish a “failing” right shoulder high. The momentary relief of a stock market rally says nothing about larger problems, and is the reflex action of crowd psychology gone a few steps ‘too far’ right out of the gate. In the case of the S&P 500, the 20 week or 100 day lower band closed today at a reading of 1360.50, and that area should be major support if tested tomorrow."

As it happened, the sell off did indeed continue into the next trading session where prices fell to a reading of 1363.98 at which point, they began to reverse sharply higher. Since putting in that important short term low, the stock market has been solidly back in rally mode, with the S&P 500 rising four out of the last five sessions and ending today back above 1400 with a close of 1410.94 (a gain of nearly 50 S&P points since last week's intra-day low). Has our outlook changed? To this point, not one bit. We continue to view this advance with the broad stock market as very likely akin to the ‘eye of the storm,’ wherein the sun can shine brightly for a brief period of time. In our view, the stock market rally now underway should still most likely be viewed as a ‘right shoulder’ rally which would still be targeting prices above 1425 to 1430, and as high as 1450. Thus, for the time being at least, both the US and Global Capital markets have regained their footing. This thesis is also supported by the fact that the Japanese Yen has sold off against the Dollar, representing at least a partial stabilization in the unwinding of the Yen-Carry Trade. With liquidity trends stabilizing, we have also seen a healthy recovery in commodity prices with the Precious Metals stabilizing as seen with Gold back above $650, Silver back above $13.00 and Platinum back above $1200.

-cut-

At present, we have time to judge and make sense of what will come next, and for now we do not want to pre-judge the stock market too harshly. We remain acutely aware of the fact that in recent years the great credit bubble has ballooned to such epic proportions that, if a real unwinding were allowed to take place at this late date, the consequences would most likely be both a capital market crash and an economic crash of epic proportions. Michael Panzner's “Financial Armageddon” (excellent read) springs to life with a speed of frightening proportions. For the “powers that be,” all bears need to remember that every effort will be made to avoid this unwinding, and to prevent the US Humpty-Dumpty from falling off the proverbial wall. In this sense, if a Fed-engineered “re-inflation” has any real chance, then keeping the stock market buoyant amid the Real Estate/Housing Correction is vital, and with the housing slump accelerating, now would be the right time to start pulling out all the stops where the stock market is concerned. Since not one of us can know what lies ahead, the best we can do is watch closely and try to evaluate where things presently stand.

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

[Demeter]

25. I Fail To See How The Stock Market Can Do Anything About the Housing Bubble

other than create a duplicate bubble (again) in stocks!

[ozymandius]

2. Today's Reports

10:30 AM Crude Inventories 03/16
Briefing Forecast NA
Market Expects NA
Prior 1180K

2:15 PM FOMC policy statement

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

[UpInArms]

38. FOMC

36. FOMC says core infation has been "somewhat elevated"
2:16 PM ET, Mar 21, 2007 - 39 minutes ago

40. FOMC vote unanimous to hold rates steady
2:15 PM ET, Mar 21, 2007 - 40 minutes ago

41. FOMC says adjustment in housing is ongoing
2:15 PM ET, Mar 21, 2007 - 40 minutes ago

42. FOMC says recent indicators have been mixed
2:15 PM ET, Mar 21, 2007 - 40 minutes ago

43. FOMC says 'future policy adjustments' will depend on outlook
2:15 PM ET, Mar 21, 2007 - 40 minutes ago

44. FOMC drops reference to any additional firming
2:15 PM ET, Mar 21, 2007 - 40 minutes ago

45. FOMC says inflation remains top concern
2:15 PM ET, Mar 21, 2007 - 40 minutes ago

46. FOMC holds rates steady at 5.25%
2:15 PM ET, Mar 21, 2007 - 40 minutes ago

[Ghost Dog]

42. Fed keeps interest rates at 5.25 percent

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=d2b29445-598b-455f-92f8-419c6cea19c7

WASHINGTON (AP) - The Federal Reserve left a key interest rate unchanged on Wednesday while taking note of the recent weaker economic performance and higher inflation pressures.

The central bank voted to leave the federal funds rate, the interest that banks charge each other, at 5.25 percent. It marked the sixth straight meeting in which the Fed has kept the rate the same.

As it has at previous meetings, the Fed said it was more worried about the risk of inflation than weak economic growth. But this time it dropped language that talked solely about the possibility that interest rates would be increased in the future.

Economists believe it is highly unlikely that the Fed will boost rates in coming months, given troubles in the housing industry and sluggish economic growth.

The market turmoil, which included a 416-point drop in the Dow Jones industrial average on Feb. 27, was triggered in part by troubles in the mortgage lending industry and worries that recession risks were increasing.

The Fed took note of the weaker readings on the economy, saying, "Recent indicators have been mixed and the adjustment of the housing sector is ongoing."

But the Fed retained language it has used in past statements, expressing the belief that the economy will keep growing at a moderate pace in coming months.

The Fed decision had been widely expected, based on recent comments by Fed Chairman Ben Bernanke and other Fed officials who said they had not seen anything to change their expectations that inflation pressures will moderate this year and economic growth will rebound.

...

In its statement, the Fed dropped language it had been using that the "extent and timing of any additional firming" would depend on upcoming data.

In its place, the Fed said that any "future policy adjustments" would depend on the performance of both economic growth and inflation.

That was a more balanced assessment of what the central bank might do in the future, holding out at least the possibility of rate cuts as well as rate increase.

But the Fed continued to maintain that its "predominant policy concern remains the risk that inflation will fail to moderate as expected."

/...

[ozymandius]

3. Oil prices rise in Asian trading

SINGAPORE - Oil prices climbed in Asian trading Wednesday amid expectations that the weekly U.S. oil inventory snapshot will show a drop in domestic supplies of gasoline and distillates such as heating oil.

Gasoline prices have risen lately as traders anticipated an increase in gasoline demand in the approaching U.S. summer driving season, coupled with low stocks amid refinery outages in the United States, the world's largest oil consumer.

"Even though the official start is still two months away, (gasoline) prices hit a seven-month high (Monday). Gasoline inventories have fallen about 6 percent since early February, and are expected to fall further," said John Kilduff of Fimat USA, in an overnight note to clients.

Light, sweet crude for May delivery gained 25 cents to $59.50 a barrel in Asian electronic trading on the New York Mercantile Exchange mid-afternoon in Singapore. Japanese traders were off for a national holiday.

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

[ozymandius]

4. Probe of BP plant blast cites oversight

TEXAS CITY, Texas - Overly lax federal oversight and cost-cutting by BP were factors in a 2005 explosion at the oil giant's Texas City refinery that killed 15 people and injured 170, the worst U.S. industrial accident since 1990, a government report found.

Though companies have plenty of safeguards for individual workers' safety, there is a potentially deadly lack of sound procedures to measure process safety, according to the U.S. Chemical Safety and Hazard Investigation Board, which released the report Tuesday.

-cut-

The report said OSHA made other, unplanned inspections after accidents, complaints or referrals — without saying how many — but that those visits were typically narrower and shorter than planned inspections.

BP said Tuesday it has accepted responsibility for the accident, worked diligently to provide fair compensation to those injured and to families of those who died, and cooperated fully with the CSB.

http://news.yahoo.com/s/ap/20070321/ap_on_bi_ge/bp_plant_explosion

[ozymandius]

14. The BP report findings

The report on the BP blast included the following:

BP problems
•BP used inadequate safety measures, such as personal injury rates, to assess circumstances at its facilities.
•Cost-cutting at the refinery in the 1990s by Amoco and then BP made the facilities' infrastructure vulnerable to an accident.

OSHA problems
•OSHA's focus on inspecting facilities with high injury rates led to a lack of attention on preventing less frequent but catastrophic incidents. Only a limited number of OSHA inspectors have the specialized training and experience to perform the necessary examinations.

-cut-

•"The Texas City disaster was caused by organizational and safety deficiencies at all levels of the BP Corporation. Warning signs of a possible disaster were present for several years, but company officials did not intervene effectively to prevent it."

http://www.chron.com/disp/story.mpl/business/4648202.html

[AnneD]

21. Morning Marketeers.........

:donut: and lurkers. The local press has been hinting at the outcome of this report all week long. The young daughter that lost her parents in the blast was the last holdout. She held out for these results to be published and for a change in the culture at the BP plant. She also donated some of her money for a scholarship fund to be established in her parents name. She seems like a sweet level headed girl to me. I know she is sad to have lost her parents but happy to be vindicated. It doesn't matter where you move a refinery trial here in Texas-because we take it very serious, esp. after the original Texas City explosion. We know it is dangerous and risky business, but it is no reason to be stupid, callous, or cheap-and that is what the management of the BP refinery chose to do.

Happy hunting and watch out for the bears.

[Robbien]

20. So basically attention to profits and cost cutting caused the breakdown

BP's actions to correct the situation is to pay off the families of the dead/injured and then do business as usual, bottom line profits and cost cutting.

[Roland99]

22. OSHA's hands have been tied for a long time. All Hail King Profit!

[AnneD]

29. BP lesson on cost-cutting and safety came hard

They died for 25 percent. That's how much BP hoped to save through budget cuts in 1999 and again in 2004 at its Texas City refinery, according to a report released Tuesday.

More than a decade of cutbacks in maintenance and training culminated on March 23, 2005, with a tanker-size load of liquid hydrocarbons spewing forth from an aging vent stack.

The liquid ignited in less than two minutes and the ensuing fireball turned a temporary office trailer into a deathtrap.

Fifteen workers died, scores more were injured. BP, which bought the refinery's former owner, Amoco, in 1999, has spent some $1.5 billion cleaning up the mess. That's more than 45 times what it saved in its first round of cuts, according to the Chemical Safety and Hazard Investigation Board's report.

<big snip>
http://www.chron.com/disp/story.mpl/business/4648273.html

This is by one of my fav business reporters- L.Steffy. As per usual, he nails it.

[ozymandius]

5. Treasury prices higher ahead of Fed meet

NEW YORK - U.S. Treasury prices ended higher Tuesday as market participants focused on Wednesday's Federal Reserve monetary policy meeting.

At 5 p.m. EDT, the 10-year Treasury note was up $1.25 per $1,000 in face value, or 4/32 point, from its level at 5 p.m. Monday. Its yield, which moves in the opposite direction, fell to 4.55 percent from 4.57 percent.

-cut-

The Treasurys market also got an additional boost from traders who had sold Treasurys in a bet that bond prices would go lower, and then had to buy the bonds back when the market rallied despite a housing report that came in stronger than expected Tuesday morning.

http://news.yahoo.com/s/ap/20070321/ap_on_bi_ge/bonds_5

[ozymandius]

6. Report: Ex-Reagan aide may be charged

NEW YORK (CNNMoney.com) -- Former Reagan administration budget official David Stockman could be hit with federal criminal charges for incomplete disclosures and improper accounting practices at a now-bankrupt auto parts maker he once headed, according to a published report.

The Washington Post reported that a grand jury indictment sought by U.S. Attorney Michael Garcia in Manhattan and officials at the U.S. Postal Inspection Service could be revealed as early as Monday.

-cut-

The paper says that Stockman co-founded Heartland Industrial Partners in 1999 to invest in the auto industry, and through that firm invested more than $350 million in parts maker Collins & Aikman (Charts). Stockman personally shelled out millions in the firm as well, the report said.

Stockman served as chairman and later CEO of Collins & Aikman from 2002 until his ouster in May 2005, days before the company was forced to file for bankruptcy court protections. The paper reports that he allegedly failed to inform board members about its mounting financial woes.

http://money.cnn.com/2007/03/21/news/newsmakers/stockman/index.htm?postversion=2007032107

[ozymandius]

7. Fannie Mae deals New Century a new blow

NEW YORK (Reuters) -- New Century Financial Corp., a struggling subprime lender that many analysts consider on the brink of bankruptcy, said on Tuesday that it can no longer sell mortgage loans to Fannie Mae or act as the primary servicer of mortgage loans for the mortgage financier.

-cut-

Separately, New Century said it received "cease-and-desist" orders from California, and that some units entered consent agreements with Florida and Washington state regulators. It also said New York's banking department suspended the banking license of its Home123 affiliate for up to 30 days.

http://money.cnn.com/2007/03/20/news/companies/new_century.reut/index.htm?postversion=2007032014

[ozymandius]

8. Banks pick up where Fed left off, restricting access to credit

WASHINGTON: Banks are picking up the baton from the Federal Reserve, restricting access to credit months after chairman Ben S. Bernanke stopped raising interest rates. Fed officials may discuss the tightening in mortgage lending and its impact on the economy, already slowed by a housing recession, at their two-day meeting that starts on Tuesday. Countrywide Financial Corp, the biggest US mortgage provider, last week stopped taking applications for no-money-down loans from risky borrowers without proof of income.

The new constraints on lending may be real-world evidence of the “lags” in monetary policy that policy makers flagged when they ended two years of rate increases in August. The central bank will keep its benchmark rate at 5.25%, economists predict, counting on slower growth and past rate boosts to bring inflation within their tolerance zone.

-cut-

A crackdown on lending may have begun as early as six or nine months ago, said Douglas Duncan, chief economist at the Mortgage Bankers Association in Washington. “They’re probably ahead of the Fed in some ways,” he added. Deteriorating subprime loans fuelled the rush to lift standards. Subprime borrowers, who have little or poor credit, fell behind on mortgages at the highest rate in four years last quarter and foreclosures climbed, the Mortgage Bankers Association reported last week.

General Electric Co’s WMC Mortgage, the fifth-biggest US subprime lender, said March 9 that it would refuse mortgages to borrowers with credit scores below 600. The Burbank, California- based bank also fired 20% of its staff.

http://economictimes.indiatimes.com/News/International__Business/Banks_pick_up_where_Fed_left_off_restricting_access_to_credit/articleshow/1785918.cms

[UpInArms]

9. dollar watch

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

Last trade 83.22 Change +0.15 (+0.18%)

US Fed - Working to Keep Inflation In Check, But At What Cost?

http://www.dailyfx.com/story/strategy_pieces/global_central_bank_comments/US_Fed___Working_to_1174411013589.html

The FOMC continues to maintain an optimistic tightening bias on the economy and monetary policy:

Randall Kroszner, Federal Reserve Bank Governor

“The Fed and the central banks of many other countries have been successful in holding long-run inflation expectations down…However, bad luck or other factors could cause expectations to begin to drift again. If so, the Federal Reserve will need to respond appropriately.” – March 13, 2007

“Inflation expectations have become well-anchored because the public has become confident the Federal Reserve will do the right thing. But this belief will persist only as long as we on the Federal Open Market Committee continue to ratify the public's expectations that inflation will remain low and stable.” – March 13, 2007

However, as dismal stories regarding the subprime sector flood the news, former and current officials seem to just be waiting for the ball to drop:

Alan Greenspan, Former Federal Reserve Chairman

“You can't take 10% out of mortgage originations without some impact. I'd expect it to -- I'm waiting -- but the spillovers are just not there.” – March 16, 2007

Henry Paulson, US Treasury Secretary

“You need to look at the underlying economy. We've got in my judgment a healthy economy. The fundamental question is has that market bottomed out? I'm optimistic that it has, I don't know for sure, I think the next couple of months we'll know a lot more than we know now.” – March 14, 2007

Edward Lazear, US Chairman of the Council of Economic Advisers

“The issue that I would focus on is not so much whether it's going to spread - I don't think many people believe it's going to spread - it's simply too small a part of the total economy for it to spread. The issue is whether it's symptomatic of some more general underlying phenomenon that's showing up first in the subprime market. I think the answer to that is probably not.” – March 20, 2007

...more...

Housing Starts Beat Forecasts, Permits Slump Lend To Dollar Weakness

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Housing_Starts_Beat_Forecasts__Permits_1174427707205.html

US Dollar - The day’s data was overshadowed by a slight lull as markets anticipate the Federal Reserve decision tomorrow. Although the decision is all but priced in, what has to be considered are the subsequent comments following the release. Notably, the market will want to see any suggestions, inferences or answers to the recent mentions of subprime woes. Will Fed policy makers counter or reflect the pessimism that ex-Chairman Greenspan stated late last week of a spillover by subprime concerns? Separately, the day’s economic data couldn’t help the dollar one bit, in light of better than expected February housing starts. Expected to rise by 1.45 million units in the month, housing starts in the US advanced at a 1.525 million rate, helping to alleviate concerns over a slower construction sector slump. Although optimistic, the building permits report helped to curb any enthusiasm. For the month, according to the US Commerce Department, permits fell 2.5 percent to a 1.532 million pace, lower than the 1.55 million set by the consensus. The figure is subsequently even lower by 28.6 percent when considering comparisons to Feburary 2006 estimates. With single family permits down by 3.1 percent, the lowest since December 1997, the overall report confirms the NAHB sentiment survey posted yesterday, that weakness in the construction sector will likely remain in the interim. The notion kept the dollar pressured against the majors in New York as ripple effects will likely be seen in consumer spending and overall growth in the short term.

...more...

[Ghost Dog]

17. (Yesterday) Dollar falls, Chinese reserve comments boost yen

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=usDollarRpt&storyID=2007-03-20T202842Z_01_N20389879_RTRIDST_0_MARKETS-FOREX-UPDATE-12.XML&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=InvArt-C1-ArticlePage2

NEW YORK, March 20 (Reuters) - The dollar fell against the yen on Tuesday after a magazine reported that China would stop stockpiling foreign exchange reserves and slipped against other major currencies as investors remained wary of risky trades.

But analysts said People's Bank of China Governor Zhou Xiaochuan might have been misquoted, since China's $1 trillion stash of reserves will keep growing as long as the central bank buys dollars to prevent the yuan from strengthening, a practice it has shown no sign of abandoning any time soon.

Zhou was quoted by the Emerging Markets magazine, a Euromoney publication, as saying "many people say that foreign exchange reserves in China are (already) large enough. We do not intend to go further and accumulate reserves."

"Most people in the market assumed he was misquoted and the intention wasn't that they were going to stop accumulating reserves, but more that they would stop accumulating reserves in the same way as they are now," said Camilla Sutton, foreign exchange strategist at Scotia Capital in Toronto.

/...

But, something's changing, that seems for sure. Could Beijing be deciding to go now for a stronger yuan, thus slowing, deepening their domestic economy, cutting their import costs (especially oil/gas), and, um, let's say 'upsetting the macroeconomic balance of the international economy'?

[Roland99]

24. We'd better start learning to speak/read Chinese.

[Ghost Dog]

18. (This morning) Dollar rises, focus on FOMC statement

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-03-21T123718Z_01_L21461602_RTRIDST_0_MARKETS-FOREX-UPDATE-5.XML

LONDON, March 21 (Reuters) - The dollar rose against the yen and the Swiss franc on Wednesday as investors focused on the U.S. Federal Reserve's interest rate decision and policy statement due later in the day.

The U.S. central bank is expected to leave rates at 5.25 percent in its first meeting since equity market turmoil earlier this month. Investors are keen to hear what the Fed has to say given growing concern about the U.S. subprime mortgage sector and expectations of interest rate cuts this year.

"We think the Fed may have to adjust their language slightly given the deterioration in the subprime market. Previously they had talked about some stabilisation in the housing market," BNP Paribas senior currency strategist Ian Stannard said.

"We also think they will make some small steps towards a more neutral stance. In previous statements the language has been slowly adjusted to a more neutral outlook and that process should continue -- I wouldn't expect too many surprises," he said.

By 1230 GMT, the dollar was up 0.4 percent at 117.70 yen <JPY=>. The euro was down 0.1 percent at $1.3294 per euro <EUR=>. The dollar was up 0.2 percent at 1.2140 Swiss francs <CHF=>.

The euro was up 0.3 percent at 156.61 yen <EURJPY=>, while sterling erased earlier gains against the dollar <GBP=> and euro <EURGBP=> after dovish minutes from the Bank of England's last rate setting meeting poured cold water on expectations of a near-term rate rise from 5.25 percent.

/...

[Ghost Dog]

43. Canada's Dollar Reaches Three-Month High as Rate Gap May Shrink

http://www.bloomberg.com/apps/news?pid=20601083&sid=a0DWWRlvLgQw&refer=currency

March 21 (Bloomberg) -- Canada's dollar climbed to a three- month high after the U.S. Federal Reserve unexpectedly abandoned its tilt toward higher borrowing costs, raising speculation the rate difference between the two countries will narrow.

Traders bought the currency as the yield advantage on U.S. two-year notes over Canadian bonds shrank to the smallest in 14 months. The currency gained the most in nine months yesterday as a report of quicker inflation damped speculation the Bank of Canada will lower its 4.25 percent benchmark interest rate. The U.S. key rate is 5.25 percent.

``The market has started to price in a rate cut by the Fed later this year, and that's helping the Canadian dollar,'' said Marc Levesque, chief strategist at TD Securities in Canada.

Canada's dollar rose to 86.62 U.S. cents at 2:51.m. in Toronto from 86.08 U.S. cents yesterday, and reached the highest since Dec. 22.

Fed policy makers said recent economic indicators have been ``mixed'' and the ``adjustment'' in housing is ongoing. While inflation is the ``predominant'' concern, the statement dropped a reference to ``additional firming,'' language used since June.

In contrast, the Canadian economy may be strengthening this quarter after slowing last quarter. The economy added 14,200 jobs last month after creating 88,900 positions in January, Statistics Canada said this month. A separate report showed Canada's trade surplus unexpectedly widened in January to the largest since 2005, as exports rose to a record.

/...

[UpInArms]

36. 30 minute delay - buck at 82.91 and dropping like a rock

Last trade 82.91 Change -0.16 (-0.19%)

[Ghost Dog]

41. Dollar drops to 2-yr low vs euro after Fed

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=usDollarRpt&storyID=2007-03-21T185119Z_01_N21221674_RTRIDST_0_MARKETS-FOREX-UPDATE-9.XML

NEW YORK, March 21 (Reuters) - The dollar tumbled to a two-year low against the euro on Wednesday after the Federal Reserve held rates steady but removed references in its statement to the possibility of more interest rate increases.

While reiterating that inflation remains a concern, the Fed dropped a bias toward tightening credit conditions that's been a feature of previous statements. That suggested an interest rate cut may be near.

The central bank, which concluded a two-day policy meeting on Wednesday, has kept the benchmark fed funds rate at 5.25 percent since August.

"It's altogether a bearish statement for the dollar," said David Watt, senior currency strategist at RBC Capital Markets in Toronto.

"To begin with, the Fed changed the statement and that's the main highlight. They just said future policy adjustments will depend on the evolution of inflation and growth, which may very well mean the next move is a rate cut," he said.

The euro <EUR=> rose to $1.3381, its highest since March 2005, from around $1.3300 before the statement's release.

The dollar fell to 117.35 yen <JPY=>, near levels reached late Tuesday, after trading around 117.85 yen before the statement. It has since rebounded to 117.50 yen, up 0.2 percent.

/...

[kineneb]

61. can remember when it was 1:1...2002

we were in Belgium, and came to the conclusion that the Euro was the currency of the future. Whatever their political issues, the Europeans have their financial act more together than the US does.

Wish we could have bought some Euros back then. Better rates than most investments. Damn.

[Ghost Dog]

57. Gold gains in electronic trade as Fed stands pat

http://www.marketwatch.com/news/story/gold-up-electronic-trade-fed/story.aspx?guid=%7B258421CA%2D9FFA%2D407A%2DBCA5%2DC44DEC864B69%7D&dist=news
Last Update: 2:40 PM ET Mar 21, 2007

SAN FRANCISCO (MarketWatch) -- Gold futures gained a dollar Wednesday to end near their highest level in three weeks, then climbed some more in electronic trading after the U.S. Federal Reserve left interest rates unchanged at 5.25% for the sixth time in a row.

...

Gold for April delivery rose $1 to close out the regular trading session at $660 an ounce on the New York Mercantile Exchange. It was the contract's strongest closing level since March 1. It had gained $17.50, or 2.7%, during a five-session winning streak.

In electronic trading on CME Globex, the April contract was quoted at $662.30 an ounce, shortly after the Fed decision.

/...

[UpInArms]

10. Judge delays trial on $40 billion Enron investor lawsuit

http://news.yahoo.com/s/nm/20070320/bs_nm/enron_trial_dc

HOUSTON (Reuters) - A federal judge on Tuesday postponed the trial of a $40 billion lawsuit filed by Enron Corp. investors, a day after an appeals court ruled the complaint could not proceed as a class-action claim.

U.S. District Judge Melinda Harmon in Houston signed an order delaying the trial, scheduled to start on April 16, pending the plaintiffs' appeal to the
U.S. Supreme Court.

On Monday, investment banks Merrill Lynch and Co. Inc. (NYSE:MER - news) and Credit Suisse Group (CSGN.VX) and Barclays Plc (BARC.L) won a huge victory when a federal appeals panel in New Orleans said Judge Harmon had erred when certifying the lawsuit as a class-action complaint.

The banks, which had advised Enron on certain financial transactions, had argued Judge Harmon wrongly allowed investors to allege they were primary participants in the fraud that eventually led to Enron's collapse.

...more...

[UpInArms]

11. Court: Enron shareholders can't proceed

http://news.yahoo.com/s/ap/20070319/ap_on_bi_ge/states_enron

NEW ORLEANS - A federal appeals court ruled Monday that Enron Corp. shareholders cannot proceed with a class-action lawsuit against investment banks for their alleged role in the accounting fraud that led to Enron's collapse.

<snip>

The three-judge panel said it's appropriate for the court to intervene "before settlement may be coerced by an erroneous class certification decision."

Shareholders' attorneys argue that Merrill Lynch & Co., Credit Suisse Group and other investment banks that did business with Enron should be held liable for billions of dollars in damages.

William Lerach, an attorney for the policyholders, expressed disappointment in the 5th Circuit's ruling.

"We think it is unfair and wrong under the law," he said. "The basic holding of the court is that even if the banks participated knowingly in a scheme to defraud investors in Enron's collapse, you cannot have a class action against the banks."

...more...

[Robbien]

23. "banks participated knowingly in a scheme to defraud"

Federally appointed appeals judges overrules in favor of elite bankers.

Now knowing how badly the courts are stacked, one questions whether the law was actually used in this ruling.

[UpInArms]

31. Morgan Stanley earnings jump 60 pct to record

http://www.reuters.com/article/bondsNews/idUSN2123384420070321

NEW YORK, March 21 (Reuters) - Morgan Stanley (MS.N: Quote, Profile, Research) posted a 60 percent jump in quarterly earnings on Wednesday, setting new records and exceeding expectations on improved trading and banking results.

The No. 2 investment bank by market value said income from continuing operations rose to a record $2.56 billion, or $2.40 a share, in the first quarter ended Feb. 28, from $1.60 billion, or $1.51 a share, a year earlier. Net revenue rose 29 percent to a record $11.0 billion.

Net income, which includes all special gains or losses, was a record $2.67 billion, or $2.51 a share.

The average analyst earnings forecast was $1.88 a share, excluding special items, on revenue of $9.4 billion, according to Reuters Estimates. Morgan Stanley shares jumped 2.87 percent to $78.30 in electronic trade before the opening bell.

Like rival investment bank Goldman Sachs Group (GS.N: Quote, Profile, Research) last week, Morgan Stanley turned in a strong first quarter despite worries among investors that stock market turbulence in late February and a meltdown in the subprime mortgage sector would hurt banking and trading results.

Revenue from Morgan Stanley's investment banking and trading division soared 37 percent to $7.6 billion, boosted by a 30 percent increase in debt trading. The company's brokerage arm, which in recent years had struggled, boosted revenue by 18 percent to $1.5 billion.

...more...

[cosmicdot]

69. if I found the correct decision link

m 06-20856
_______________
REGENTS OF THE UNIVERSITY OF CALIFORNIA; WASHINGTON STATE INVESTMENT BOARD; SAN FRANCISCO CITY AND COUNTY EMPLOYEES’ RETIREMENT SYSTEM; EMPLOYER-TEAMSTERS LOCAL NUMBERS 175 AND 505 PENSION TRUST FUND;
HAWAII LABORERS PENSION PLAN; STARO ASSET MANAGEMENT LLC; AMALGAMATED BANK, AS TRUSTEE FOR THE LONGVIEW COLLECTIVE INVESTMENT FUND; ROBERT V. FLINT; JOHN ZEGARSKI;MERVIN SCHWARTZ, JR.;
STEVEN SMITH; ARCHDIOCESE OF MILWAUKEE; GREENVILLE PLUMBERS PENSION PLAN; NATHANIEL PULSIFER,
AS TRUSTEE OF THE SHOOTERS HILL REVOCABLE TRUST, Plaintiffs-Appellees,

VERSUS

CREDIT SUISSE FIRST BOSTON (USA), INC.; CREDIT SUISSE FIRST BOSTON LLC; PERSHING LLC;
MERRILL LYNCH & COMPANY, INC.; MERRILL LYNCH PIERCE FENNER & SMITH, INC.;
Defendants-Appellants,

BARCLAYS PLC; BARCLAYS BANK PLC; BARCLAYS CAPITAL, INC.,
Appellants.


http://www.ca5.uscourts.gov/opinions%5Cpub%5C06/06-20856-CV0.wpd.pdf

---->>> the 3 judges making up the panel were Jolly, Smith and Dennis
http://www.lb5.uscourts.gov/judgebio/FifthCircuit/

Jerry Smith was appointed by Reagan
James Dennis was appointed by Clinton
E. Grady Jolly was appointed by Reagan

just like Faux News - fair and balanced

[UpInArms]

12. Halliburton Says Profit Will Slide

http://www.nytimes.com/2007/03/21/business/21halliburton.html?ex=1332129600&en=f19dc6f90a77afc2&ei=5088&partner=rssnyt&emc=rss

HOUSTON, March 20 (Reuters) — The oil field services company Halliburton said on Tuesday that its first-quarter profit would fall below Wall Street estimates because of decreased drilling in parts of North America, sending its shares down sharply.

Halliburton estimated first-quarter earnings, excluding items, of about 49 cents to 54 cents a share. Analysts, on average, had expected profit of 59 cents a share, according to Reuters Estimates.

The company’s shares fell $1.90, or 6 percent, to $30.50.

Halliburton, which last week said it was moving its chief executive to Dubai to capture more overseas business, said the bulk of the shortfall was the result of a drop in drilling and completion activity in Canada and the northern United States. Completion is the use of technology to bring a well into production.

The company said the downturn was felt most acutely in its production optimization business, which contributed about 40 percent of the revenue for its energy services group in 2006. Its North American operations accounted for more than half of its operating profit for the energy services group in 2006.

...more...

[wordpix]

30. sounds like Cheneyburton is crying the blues b/c it can't secure drilling rights all over US &

Canada---could the execs be deliberately manipulating prices downward to cause shareholders to scream about drilling off US continental shelf everywhere, Front Range, Alaska NWRs and other sensitive locations?

snip: Halliburton, which last week said it was moving its chief executive to Dubai to capture more overseas business, said the bulk of the shortfall was the result of a drop in drilling and completion activity in Canada and the northern United States.

[UpInArms]

13. Beacon Rock Capital - Hedge Fund Is Charged Over Trades

http://www.nytimes.com/2007/03/21/business/21hedge.html?ex=1332129600&en=ef814587c6f5d11c&ei=5088&partner=rssnyt&emc=rss

Beacon Rock Capital has been charged with defrauding mutual funds of $2.4 million, the first hedge fund to be criminally accused of deceptive market timing, the United States attorney in Philadelphia said.

Thomas J. Gerbasio, 36, the former vice president of mutual funds at Fiserv Securities in Philadelphia, was also charged in the case, the United States attorney, Patrick L. Meehan, said yesterday. Market timing involves short-term trading that tries to take advantage of perceived inaccuracies in mutual fund share prices, Mr. Meehan said.

Mr. Gerbasio and Beacon Rock, which is based in Portland, Ore., executed trades using that strategy, knowing that it was potentially harmful to investors in the funds, Mr. Meehan said. Beacon Rock made more than 26,000 market-timed trades and Mr. Gerbasio earned about $215,000, Mr. Meehan said.

“Gerbasio and Beacon Rock were aware of and received numerous potential warnings from mutual fund companies that market timing was unwanted and potentially harmful to their shareholders,” Mr. Meehan said. “The defendants simply found a way around the obstacles by cheating.”

Beacon Rock deceived the mutual funds, none of them identified by Mr. Meehan, by using multiple account numbers, trading in amounts that were just under the thresholds that would have activated fund surveillance and misrepresenting trading strategy when questioned by the funds, Mr. Meehan said.

...more...

[texpatriot2004]

15. K & R nm

[Ghost Dog]

16. European stocks extend gains, banks take lead

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070321:MTFH20840_2007-03-21_12-08-09_L21011448&type=comktNews&rpc=44

LONDON, March 21 (Reuters) - European shares added to gains on Wednesday, with financials taking pole position on bid talk as UK bank Barclays (BARC.L: Quote, Profile , Research) moved closer to agreeing an $80 billion takeover of Dutch target ABN AMRO (AAH.AS: Quote, Profile , Research).

Barclays was up 1.5 percent and ABN AMRO was steady, while Societe Generale (SOGN.PA: Quote, Profile , Research), Royal Bank of Scotland (RBS.L: Quote, Profile , Research) and BNP Paribas (BNPP.PA: Quote, Profile , Research) rose between 1.6 and 2.7 percent.

By 1150 GMT, the pan-European FTSEurofirst 300 index <.FTEU3> was 0.3 percent stronger at 1,492, near the day's high of 1,493.1 and up for the third day in a row.

The DJ Stoxx European financial sector index <.SXFP> rose 0.8 percent, up for the fifth day in a row. Barclays and ABN late on Tuesday outlined details of their planned merger.

The benchmark added to Tuesday's 0.8 percent rise as markets edged further away from lows hit earlier this month as part of a slide in global stocks on waning risk appetite.

/...

[Ghost Dog]

39. European stocks end at 3-week high on M&A, Fed eyed

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-03-21T180512Z_01_L21638683_RTRIDST_0_MARKETS-EUROPE-STOCKS-UPDATE-4.XML

PARIS, March 21 (Reuters) - European shares closed at a three-week high on Wednesday as takeover speculation and positive earnings helped offset concern that the Federal Reserve may be in no hurry to cut interest rates anytime soon.

Barclays (BARC.L: Quote, Profile , Research) was among the region's top gainers as Britain's third biggest bank moved further towards an $80 billion takeover of ABN AMRO (AAH.AS: Quote, Profile , Research), while Dutch food group Nutreco (NUTR.AS: Quote, Profile , Research) rose 3.8 percent as analysts cited takeover interest from private equity firms pushing up the stock.

The pan-European FTSEurofirst 300 index <.FTEU3> added 0.3 percent to close unofficially at 1,492.61 points, up for a third day in a row and signing its highest close since Feb. 27.

Holding the key to market sentiment was a Fed policy-setting decision at 1815 GMT, with investors concerned that stubbornly elevated U.S. inflation may force U.S. central bank to keep borrowing costs steady despite signs of weaker economic growth.

/...

[Tace]

19. The Mogambo Approach: "If I Kill All Of You Parasite Trash, That Will Mean More For Me!"

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

March 20, 2007 -- Watching the economic idiocy all around me, and the impending collapse of the housing bubble which has been dubbed by some as The Biggest Speculative Bubble In Freaking History, my days are now spent almost exclusively in fear and frenzied activity, mostly in angrily stockpiling gold, silver, oil, ammo, and these terrific little frozen pizzas that score a bulls-eye with those of us whose tastes run to yummy pork products.

snip

The Mogambo household is, like Congress, divided into two opposing factions. On the one hand, we have the Leftist approach: "Have the government give money to the people!" On the other side of the aisle, we have The Mogambo approach: "If I kill all of you parasite trash, that will mean more for me!"

snip

Being natural Leftists, they are ecstatic! Getting free money from an authority figure without lifting a finger? This is EXACTLY what they want! To explain how this is done, I got out my PowerPoint presentation, and I started off saying, "We are sitting on a gold mine here! It turns out that we can make some cash -- a lot of cash, mind you! -- by selling some of the kids' internal organs to rich, sick people! I read the other day that the going rate for a fresh, young, healthy kidney is, for instance..." and the place erupted in bedlam.

more

http://www.worldnewstrust.com/index.php?option=com_content&task=view&id=1667&Itemid=10029

[Roland99]

26. Ah...and a John Williams Shadow Goverment citation, too!

But soon the levity evaporated, and it was solidly back to downtown Panic-ville, as the latest bunch of Consumer Price Index stuff from the Labor Department came out, and the February Consumer Price index rose 0.4 percent, which was "stronger-than-expected." The food index rose 0.8 percent in February, which follows a 0.7 percent increase in January. This is horrifying! This is beyond horrifying!

From the John Williams' Shadow Government Statistics site we read that even these terrible inflation numbers are far too low, as "Net of methodological gimmicks that have been used in recent decades to dampen the reporting of inflation, February's Pre-Clinton CPI annual inflation (based on 1990 methodology) was 5.7 percent, while the SGS Alternate Consumer Price Measure (based on 1980 methodology) was 10.0 percent." Yow!

[fasttense]

27. Mogambo is a very sick man. n/t

:)

[UpInArms]

28. Fremont to sell $4B in subprime loans

http://www.businessweek.com/ap/financialnews/D8O0JGS00.htm

Fremont General Corp. said Wednesday it will sell some $4 billion in subprime residential real estate loans at a discount amid a sharp downturn in the sector. The lender, which is trying to divest its subprime mortgage unit, expects to book a $140 million pre-tax loss on the sale.

Subprime loans are funds made available to people with poor credit. Lenders industrywide have been selling their subprime assets amid a surge in mortgage defaults in the sector.

Fremont said it received about $950 million in cash from the first sale to an undisclosed buyer. The remaining sales under the agreements are expected to be completed over the next several weeks.

Fremont said it continues to operate its profitable commercial real estate lending and residential loan servicing businesses, as well as its retail banking division.

...more...

[nitpicker]

32. Federal Reserve Abandons Tightening Bias

5.25 percent, but the radio stated that the guidance has changed.

[loudsue]

33. Can someone please tell us what the Market is doing? Up? Down? Sideways?

:shrug: I keep checking back here, but I haven't seen any numbers!

Or can I get a link to somewhere that keeps me updated on how it's going?

:hi: Thanks, Marketeers! I don't mean to be a pain in the butt! :loveya:

:kick::kick:

[xdk999]

34. dow 12411 +123.7

here you go:

dow 12411 +123.7
nas 2411 +33.3
s&p 1429 +18.60

(from marketwatch, sorry)

In one small hint that the FOMC may be moving closer to cutting rates, the committee dropped a phrase from previous statements about the "additional firming that may be needed." But the committee also heightened its concern about inflation, suggesting that it is still leaning toward higher rates if inflation does not moderate.

[UpInArms]

35. 2:50 EST Fed sacrifices the dollar to goose the stock market

Dow 12,413.72 125.62 (1.02%)
Nasdaq 2,441.24 33.03 (1.37%)
S&P 500 1,429.39 18.45 (1.31%)
10-Yr Bond 4.528% 0.019

NYSE Volume 2,121,345,000
Nasdaq Volume 1,456,526,000

2:30 pm : Onward and upward is now the market's new mantra as investors rally around the unexpected removal of the Fed's tilt toward more tightening. Fed funds futures now price in a nearly 50% chance of the Fed cutting rates at the June meeting, up from a roughly 25% likelihood before the report. The actual text of the statement reads: "Recent indicators have been mixed and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters.

Recent readings on core inflation have been somewhat elevated. Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.

In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information." DJ30 +89.59 NASDAQ +23.69 SP500 +14.28 NASDAQ Dec/Adv/Vol 1360/1576/1.18 bln NYSE Dec/Adv/Vol 1291/1900/796 mln

2:15 pm : As expected, the Federal Reserve left the fed funds rate unchanged at 5.25% for a sixth straight time. With respect to the accompanying policy directive, the Fed has asserted that "recent indicators have been mixed and the adjustment in the housing sector is ongoing." The Fed also noted that there's a risk that "inflation will fail to moderate as expected;" but investors appear to be focusing more on the fact that "additional firming" is no longer part of their language.

Initial responses in both the stock and bond markets have been positive, but market action is expected to be volatile throughout the rest of the session. The 10-year note, which was down 11 ticks to yield 4.59%; it's now up 2 ticks to yield 4.54%.DJ30 +44.32 NASDAQ +9.15 SP500 +6.85 NASDAQ Dec/Adv/Vol 1317/1602/1.13 bln NYSE Dec/Adv/Vol 1263/1921/764 mln

2:00 pm : In the 15 minutes ahead of the FOMC announcement, the market is trying to regain some upward momentum. Be that as it may, the lack of conviction on the part of buyers continues to underscore a sense of caution should policy makers not soften their bias against inflation.

We believe the statement is not likely to show any major changes since recent data provide no reason for such an adjustment, which will likely sideline expectations of a potential easing that the stock market has been pricing in over the last several sessions. DJ30 +3.44 NASDAQ +6.24 SP500 +3.39 NASDAQ Dec/Adv/Vol 1316/1609/1.06 bln NYSE Dec/Adv/Vol 1312/1869/720 mln

1:30 pm : The indices continue to improve ever so slightly, but only enough to briefly lift the Dow into the green. Treasury Secretary Henry Paulson within the last 30 minutes saying he believes the U.S. economy is still healthy has given stocks a modest boost.

It hasn't been overly surprising, though, to see the recent bounce almost as quickly run out of steam since the Fed remains the day's focal point, not a meeting between Paulson and Peruvian President Garcia in Lima. DJ30 -4.41 NASDAQ +5.23 SP500 +2.66 NASDAQ Dec/Adv/Vol 1359/1542/984 mln NYSE Dec/Adv/Vol 1354/1810/660 mln

[Ghost Dog]

37. 14:52 Onward & Upward! (Dollar down)

Dow 12,411.23 Up 123.13 (1.00%)
Nasdaq 2,440.74 Up 32.53 (1.35%)
S&P 500 1,429.77 Up 18.83 (1.33%)
10-Yr Bond 4.5260% Down 0.0210
NYSE Volume 2,147,500,000
Nasdaq Volume 1,471,852,000

3:00 pm : The indices are extending their reach to the upside as evidence of the Fed possibly easing sooner than initially anticipated continues to light a fire under equities, especially the S&P 500's most heavily weighted sector -- Financials.

Aside from getting a lift from a relief rally in Treasuries, the rate-sensitive sector is now up 2.4% as investors race to pick up beaten-down brokers and banks. In fact, gains of 3.4% and 2.2% on the AMEX Securities Broker/Dealer Index and KBW Bank Index, respectively, have almost completely erased their year-to-date declines. Investment Banks (+4.5%) now ranks as today's best performing S&P industry group; Thrifts & Mortgages (+3.8%), Asset Managers (+3.5%), and Other Diversified Financial Services (+3.1%) have also broken into today's Top Ten.DJ30 +144.02 NASDAQ +38.41 SP500 +21.71 NASDAQ Dec/Adv/Vol 867/2112/1.44 bln NYSE Dec/Adv/Vol 709/2527/980 mln

(Ed. to replace with 15:00 blather). :eyes:

[Ghost Dog]

50. Morgan Stanley earnings jump 60 pct to record

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=hotStocksNews&storyID=2007-03-21T191619Z_01_N21233844_RTRIDST_0_MORGANSTANLEY-RESULTS-UPDATE-4.XML

NEW YORK, March 21 (Reuters) - Morgan Stanley (MS.N: Quote, Profile , Research) posted a 60 percent jump in quarterly earnings on Wednesday, beating expectations with record results boosted by strong debt and equity trading, and its shares gained 7 percent.

On the same day it won a major victory in a Florida lawsuit, the investment bank was the latest Wall Street company to defy investor worries over stock market turbulence last month and problems in subprime mortgages.

"This was an astounding trading quarter. They must have been beautifully positioned for the subprime meltdown and long volatility when equity markets tumbled," said Sanford Bernstein analyst Brad Hintz.

Income from continuing operations rose to a record $2.56 billion, or $2.40 a share, in the first quarter ended Feb. 28, from $1.60 billion, or $1.51 a share, a year earlier. Net revenue rose 29 percent to a record $11 billion.

The results exceeded the average analyst forecast of $1.88 a share by about 28 percent. Morgan shares rose 7.4 percent to $81.71 in afternoon New York Stock Exchange trade.

Also on Wednesday, a Florida state appeals court threw out a $1.58 billion award to billionaire financier Ronald Perelman over his 1998 sale of Coleman Co. to Sunbeam Corp. Perelman accused Morgan of fraud for helping Sunbeam, which went bankrupt in 2001, hide its shaky finances. Continued...

/'nuff said... :smoke:

[loudsue]

40. Thanks, Marketeers!

:hi: I appreciate that! :loveya:

:kick::kick::kick:

[Ghost Dog]

44. World stocks to shake off U.S. worries

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=stocksNews&storyid=2007-03-21T144606Z_01_NOA153099_RTRUKOC_0_MARKETS-STOCKS-POLL.xml&WTmodLoc=InvArt-R5-QuotesBox-2
Wed Mar 21, 2007 14:45 GMT (before FOMC)

BANGALORE (Reuters) - Fears of an extended stock market downturn and a blow-out stemming from difficulties at slack U.S. mortgage lenders have faded and world stock markets look to be on the up again, Reuters polls showed on Wednesday.

While equity market strategists and fund managers have in some cases downgraded their optimism for year-end levels, for the U.S. markets and many others they are looking for even bigger 2007 rises than they expected in December.

Since then, world stock markets have gone through a few bouts of risk aversion after a 9 percent one-day fall in Chinese shares in late February. Then concerns that U.S. high-risk mortgage lenders are in bad enough shape to trigger a deeper economic slowdown than expected rattled sentiment again.

The poll of more than 150 strategists conducted March 14-21 in the U.S., Japan, Britain, Germany, France, Canada, Australia, China and Taiwan put Asian bourses in the lead, up 9-10 percent from current levels, with the U.S., France and Germany not far behind. London and Sydney trailed, seen up some 5-6 percent while Toronto was seen down a sliver by year-end.

Markets have stabilised in recent sessions and the major U.S. indexes have clawed back most of their losses for the year, in part on optimism that the world economy remains strong and mergers and acquisitions activity is continuing unabated.

That probably means that while stock markets aren't likely to chalk up the explosive double-digit annual gains they have seen in the recent past, they are not likely to be down for long, equity strategists, who as ever lean toward optimism, say.

"We don't think it's the start of a bear market, but the market will be somewhat lower in the first half of the year," said Bert Jansen, strategist at Exane BNP Paribas. "There should be some support from lower interest rates in the U.S. -- we expect some policy easing by the Fed in July or August." Continued...

/...

[citizen snips]

45. Morgan Stanley 1Q Profit Up 69 Percent

NEW YORK (AP) -- Morgan Stanley Inc., the second-biggest investment bank on Wall Street, said Wednesday its fiscal first-quarter profit soared 69 percent on robust trading and strong advisory fees from stock and bond underwriting.

Its shares rose nearly 3 percent in morning trading.

Profit after paying preferred dividends rose to $2.66 billion, or $2.51 per share, in the three months ended Feb. 28 from $1.57 billion, or $1.48 per share, in the year-ago period. Excluding a gain on the sale of Quilter Holdings, the company posted profit from continuing operations of $2.56 billion, or $2.40 per share, in the latest period.

Revenue rose 29 percent to $11 billion from $8.55 billion a year earlier.

more...
http://biz.yahoo.com/ap/070321/earns_morgan_stanley.html?.v=8

[citizen snips]

46. FedEx 3Q Earns Slip 2 Percent

MEMPHIS, Tenn. (AP) -- FedEx Corp. said Wednesday a slowing economy, severe winter storms and lower fuel surcharges contributed to a 2 percent decline in the package shipper's third-quarter profit.

For the quarter ended Feb. 28, earnings slipped to $420 million, or $1.35 per share, from $428 million, or $1.38 per share, a year earlier. Costs for dealing with bad weather cut into profit by 6 cents per share, but that was offset by a gain of 8 cents a share related to a lower tax rate, the company said.

"The U.S. economy grew at a slower rate than expected in the third quarter, and we saw continued adjustments in the automobile and housing markets," said Frederick W. Smith, FedEx president and chief executive.

But Smith said he expected the economy to pick up, and "FedEx is in excellent position to take full advantage of global economic growth trends."

more...
http://biz.yahoo.com/ap/070321/earns_fedex.html?.v=12

[citizen snips]

47. Sirius Promises Lower Prices in XM Combo

NEW YORK (AP) -- Sirius Satellite Radio Inc. is promising more programming choices and lower pricing options as part of an effort to convince federal regulators to approve its proposed acquisition of rival XM Satellite Radio Holdings Inc.

The deal still faces opposition from several consumer groups, however, and what's certain to be a tough regulatory review in Washington by antitrust authorities and the Federal Communications Commission.

In an application submitted to the FCC on Tuesday and disclosed in a regulatory filing on Wednesday, Sirius said that the combined company would allow subscribers greater flexibility in choosing programming options, including a lower price if they elect to receive fewer channels.

Customers of both Sirius and XM already can block out adult-themed channels such as Playboy, adult humor and urban music, but they don't receive any discount for doing so.

more...
http://biz.yahoo.com/ap/070321/xm_radio_sirius.html?.v=8

[citizen snips]

48. Biofuels Spark Biotech Rally

SAN FRANCISCO (AP) -- Biotechnology was first applied in medicine, then farming. Today, dozens of lifesaving drugs are on the market, while many crops are genetically engineered to withstand weed killers.

Now, a 2-year-old push to develop alternative fuels is driving biotechnology's growth into the industrial sector.

Thousands of corporate executives and scientists gather this weekend in Orlando, Fla. for an industry trade show specifically aimed at touting biotechnology's so-called third wave, industrial applications. The word on everyone's lips: ethanol.

After decades of unfulfilled promise and billions in government corn subsidies, energy companies may finally be able to produce ethanol easily and inexpensively thanks to breakthroughs in biotechnology.

Most of the 5 billion gallons of ethanol produced annually in the United States is still made by

more...
http://biz.yahoo.com/ap/070321/biotech_s_third_wave.html?.v=2

[citizen snips]

49. Starbucks Chairman Talks to Shareholders

SEATTLE (AP) -- Starbucks Corp. doesn't plan to slow its ambitious growth, despite recently publicized worries about weakening the coffeehouse titan's brand, Chairman Howard Schultz told investors Wednesday.

At Starbucks' annual meeting, Schultz also lamented a slide in the company's stock price and assured shareholders Starbucks would strive to uphold its efforts at corporate responsibility.

"I'm here to tell you that I believe that there's never been a better time to be a Starbucks shareholder," Schultz told the crowd. "We are building Starbucks for the long term, and I would hope that after 15 years ... you would give us the same trust that you have in the past."

Schultz's comments came as some negative headlines, questions about brand strategy, and investor concerns about operating numbers have knocked about 20 percent off the stock's price since a 52-week high in November.

more...
http://biz.yahoo.com/ap/070321/starbucks_shareholders.html?.v=1

[citizen snips]

51. Sector Snap: Airline Stocks Mixed

NEW YORK (AP) -- Airline stocks were mixed Wednesday, as rising crude prices weighed on the sector but AirTran Holdings Inc. shares took off on a JP Morgan upgrade.

The Amex Airline Index rose nearly 1 percent, with six of 11 component stocks gaining. Most percentage swings were slight, less than 1 percent.

Hurting shares was a barrel of oil gaining 23 cents to $59.48 on the New York Mercantile Exchange, as jet fuel is one of the industry's top costs.

Shares of AirTran, though, jumped 66 cents, or 6.6 percent, to $10.70 on the New York Stock Exchange.

more...
http://biz.yahoo.com/ap/070321/airlines_sector_snap.html?.v=1

[citizen snips]

52. Sector Snap: Newspaper Publishers

NEW YORK (AP) -- Shares of newspaper publishers traded lower Wednesday as several companies posted disappointing February revenue results and Media General Inc. warned it is likely to see a first-quarter loss.

The bad news began late Tuesday, when New York Times Co. and McClatchy Co. came out with their February numbers. McClatchy said its revenue dropped 5.1 percent for the month on a decline in advertising revenue, while New York Times saw its February revenue slip 3.6 percent.

Goldman Sachs analyst Peter Appert said in a client note that New York Times' weak showing supports his caution on the sector. He lowered his first-quarter earnings estimate by a penny to 24 cents per share and full-year forecast by a penny to $1.23 per share. Analysts surveyed by Thomson Financial forecast, on average, earnings per share of 21 cents in the first quarter and $1.15 for the year.

Craig Huber of Lehman Brothers is concerned that the Knight Ridder acquisition will continue to weigh on McClatchy, which publishes The Miami Herald and The Sacramento Bee.

more...
http://biz.yahoo.com/ap/070321/newspapers_sector_snap.html?.v=1

[loudsue]

62. When newspapers quit cheerleading for the repervlikins, they

might start selling some papers and making some money! It's DEMOCRATS that know how to read, after all, and Democrats know better than to believe all the rightwing hype that comes off the pages of the newspapers. :popcorn:

:kick::kick::kick:

[DemReadingDU]

75. Right on!

Spouse and I have noticed that Repubs listen to Rush Limbaugh & watch Sean Hannity.

The Dems read books and the Internets and research for FACTS!

[citizen snips]

53. Sector Snap: Transports Trade Lower

NEW YORK (AP) -- Shares of some key names in the transportation sector traded lower on Wednesday after express package and freight delivery company FedEx Corp. said a slowing economy and severe winter storms contributed to a quarterly earnings decline.

Since it reports on a fiscal calendar, FedEx results and its outlook provide a mid-quarter glimpse of freight demand and general economic health. The Memphis-based company said third-quarter earnings fell 2 percent to $420 million, or $1.35 per share, from $428 million, or $1.38 per share, a year ago. Revenue rose 7 percent to $8.59 billion from $8 billion a year earlier.

FedEx Chief Executive Frederick W. Smith said the U.S. economy grew at a slower rate than expected in the quarter, and the company witnessed continued adjustments in the automobile and housing markets. It reported particularly sluggish revenue growth in its express and freight divisions. FedEx also warned that affects from the economic slowdown could continue and it may not meet its earnings per share growth projection this year of 10 to 15 percent.

FedEx shares traded lower on the news, falling $2.29, or 2 percent, to $110 in midday trading. Shares of rival United Parcel Service Inc. fell 51 cents to $69.74. Both trade on the New York Stock Exchange.

more...
http://biz.yahoo.com/ap/070321/transportation_sector_snap.html?.v=1

[citizen snips]

54. Crude Prices Rise Slightly

NEW YORK (AP) -- Crude oil prices edged higher Wednesday after the U.S. government said gasoline inventories dropped for the sixth straight week, keeping worries alive that supplies will be tight going into the peak driving season.

Gasoline prices slipped, though, as the government report showed that U.S. refineries ramped up production last week and that crude imports rose -- indicating that it's possible for supplies to catch up before summer demand is in full swing.

Though crude prices have been fairly stable in recent months, gasoline prices have been surging amid low inventories and refinery outages. At the retail level, U.S. pump prices have risen about 19 percent over the past two months.

"We've gone awfully far awfully fast, and it does look like refineries are coming back," said Peter Beutel of Cameron Hanover. "I don't think that strength in gasoline (prices) is over, but the reasons for it are showing a glimmer of hope that they're dissipating."

more...
http://biz.yahoo.com/ap/070321/oil_prices.html?.v=16

[citizen snips]

55. Soybeans, Grains Rise

CHICAGO (AP) -- Soybean and grain futures advanced Wednesday on the Chicago Board of Trade.

Wheat for May delivery rose 2 3/4 cents to $4.65 1/2 a bushel; May corn rose 4 1/2 cents to $4.09 3/4 a bushel; May oats rose 1/4 cent to $2.83 3/4 a bushel; May soybeans rose 1 3/4 cent to $7.66 1/2 a bushel.

Beef futures ended mixed while pork decreased on the Chicago Mercantile Exchange.

April live cattle rose .12 cent to 97.72 cents a pound; April feeder cattle fell .43 cent to $1.0512 a pound; April lean hogs fell .70 cent to 63.37 cents a pound; May pork bellies fell .68 cent to $1.0287 a pound.

http://biz.yahoo.com/ap/070321/board_of_trade.html?.v=4

[citizen snips]

56. Sector Wrap: Alternative Energy Edges Up

NEW YORK (AP) -- Shares of alternative energy companies climbed Wednesday, as former Vice President Al Gore advocated immediate action by legislators to reduce greenhouse gases.

In an address to Congress, Gore warned of a "true planetary emergency" if the U.S. government doesn't assume a lead role to stop global warming. He proposed Congress move to cut carbon dioxide and other warming gases 90 percent by 2050.

On Wall Street, shares of ethanol producers, solar cell manufacturers and companies behind other alternative energy technologies moved higher.

Ethanol maker VeraSun Energy Corp. shares jumped 63 cents, or 3.5 percent, to $18.60 in afternoon trading on the New York Stock Exchange. Aventine Renewable Energy Holdings Inc. saw its stock advance $1.04, or 6.4 percent, to $17.28.

more...
http://biz.yahoo.com/ap/070321/ethanol_wrap.html?.v=1

[citizen snips]

58. Treasuries Gain as Fed Drops Bias Toward Boosting Interest Rate

March 21 (Bloomberg) -- U.S. Treasury notes maturing in two years rose the most in more than a week after the Federal Reserve left borrowing costs unchanged at 5.25 percent and unexpectedly dropped its bias toward higher borrowing costs.

The yield on two-year notes, more sensitive to changes in interest-rate policy than longer-maturity debt, fell below 10- year note yields for the first time since August as speculation increased the central bank is more willing to cut interest rates as housing slows economic growth.

``It's a little surprising,'' said Don Alexander, director of fixed income in New York at Citigroup Global Wealth Management, which oversees about $1.3 trillion in assets. ``We'll see a little bit of a rally.''

The yield on the two-year note decreased 9 basis points, or 0.09 percentage point, to 4.52 percent at 3:32 p.m. in New York, according to bond broker Cantor Fitzgerald LP. It was the greatest decline since a 13-basis-point drop on March 13. The price of the 4 3/4 percent security maturing in February 2009 rose 1/8, or $1.25 per $1,000 face amount, to 100 13/32.

more...
http://www.bloomberg.com/apps/news?pid=20601009&sid=alM6s388.UmQ&refer=bond

[citizen snips]

59. Gold Rises as Higher Oil Lifts Demand for Inflation Hedge

March 21 (Bloomberg) -- Gold prices in New York rose to the highest in two weeks as rebounding energy costs boosted the metal's appeal as a hedge against inflation.

Gold often moves in tandem with crude oil, which climbed for the second straight day after shedding 4.9 percent last week. Gold and oil prices have more than doubled in the past five years.

``The strength in crude oil is definitely supportive for gold,'' said Frank Lesh, a trader at FuturePath Trading LLC in Chicago.

Gold futures for April delivery rose $1 or 0.2 percent, to $660 an ounce on the Comex division of the New York Mercantile Exchange, the highest close since March 1. Prices have gained 3.5 percent this year.

more...
http://www.bloomberg.com/apps/news?pid=20601012&sid=a2uc_AAK55sU&refer=commodities

[citizen snips]

60. AirTran, Charming Shoppes, Diversa, Pride: U.S. Equity Movers

March 21 (Bloomberg) -- The following is a list of companies whose shares are having unusual price changes in U.S. exchanges. Stock symbols are in parentheses after company names. Share prices are as of 2:40 p.m. New York time.

Accredited Home Lenders Holding Co. (LEND US) rose 86 cents, or 8 percent, to $11.63 and traded as high as $11.91. Hedge-fund manager Citadel Investment Group LLC reported in a regulatory filing that it owns a 4.5 percent stake in the money- losing subprime mortgage company.

Adobe Systems Inc. (ADBE US) rose $2.33, or 5.7 percent, to $43.07 and traded as high as $43.14. The world's biggest maker of design software forecast second-quarter sales of as much as $740 million. That topped the average $717.3 million estimate of analysts polled by Bloomberg.

Agilysys Inc. (AGYS US) fell $1.16, or 5.1 percent, to $21.51 and traded as low as $21. The world's third-largest wholesaler of electronics was downgraded to ``market perform'' from ``outperform'' by Raymond James analyst Brian Alexander, who said the shares are ``fully valued'' after the company's sale of its KeyLink Systems Group unit, a distributor of International Business Machines Corp. and Hewlett-Packard Co. products.

more...
http://www.bloomberg.com/apps/news?pid=20601084&sid=aQnJ1OXaybEc&refer=stocks

[citizen snips]

63. Sector Wrap: Aluminum Producers

NEW YORK (AP) -- Prudential Equity Group said Wednesday increased Chinese output and a high cost structure for aluminum producers Alcoa Inc. and Alcan Inc. could hurt the companies' stock performance in 2007.

Shares of Alcoa gave up 22 cents to close at $33.85 on the New York Stock Exchange, while Canadian rival Alcan rose 8 cents to finish at $53.20. Century Aluminum Co. added 46 cents to end at $45.97 on the Nasdaq Stock Market.

Analyst John C. Tumazos cut his rating on the industry to "Unfavorable" from "Favorable." On Tuesday, the International Aluminum Institute said China output rose 39 percent in January, up from 35 percent as previously thought, and February output grew more than 40 percent.

Tumazos slashed his rating on Alcan to "Underweight" from "Overweight" and trimmed his target price to $48 from $50. He also cut Alcoa to "Neutral Weight" from "Overweight" and lowered his target price to $38 from 441.

more...
http://biz.yahoo.com/ap/070321/aluminum_producers_sector_wrap.html?.v=1

[citizen snips]

64. Chips Wrap: AMD Up Despite Pricing Woes

NEW YORK (AP) -- Semiconductor stocks gained in Wednesday's trading, with even Advanced Micro Devices Inc. getting a boost, despite a bearish analyst note.

Thomas Weisel analyst Eric Gomberg said he expected more price cuts out of AMD, and noted that they are likely coming just three weeks after a previous round of price cuts.

"While the price cuts may stimulate some demand, we believe that product mix and stale inventory ultimately remain major headwinds likely to persist through the second quarter and possibly later," Gomberg wrote in a note to investors.

Gomberg also said he believes the company will need to raise cash by the fourth quarter unless capital spending is reduced. He thinks AMD may be planning a $1 billion convertible note offering during the second quarter.

more...
http://biz.yahoo.com/ap/070321/sector_wrap_semiconductors.html?.v=1

[citizen snips]

65. DJIA Leaders & Laggards: JPMorgan, Aloca

NEW YORK (AP) -- Financial services companies JP Morgan Chase & Co. and Citigroup Inc. helped boost the Dow Jones Industrial Average Wednesday, after the Federal Reserve said the economy seems likely to keep growing at its current pace.

The Dow rose 159.42 points to wind up at 12,447.52.

Shares of JP Morgan spiked in afternoon trading following the Fed announcement it would hold a key interest rate steady, rising $1.30, or 2.7 percent, to end at $49.05 on the New York Stock Exchange.

Citigroup jumped $1.39, or 2.7 percent, to finish at $52.03 on the NYSE.

more...
http://biz.yahoo.com/ap/070321/djia_leaders_laggards.html?.v=1

[citizen snips]

66. Internet Wrap: GSI Soars on Upgrade

NEW YORK (AP) -- GSI Commerce Inc. helped lift the Internet sector on Wednesday, after an analyst upgraded the e-commerce Web site operator, seeing 25 percent upside to its share price.

GSI's shares jumped $2.91, or nearly 15 percent, to close at $22.65 on the Nasdaq Stock Market -- having earlier hit $22.75, its highest point since the beginning of 2002. The stock previously traded in a 52-week range of $10.67 and $20.34.

Goldman Sachs analyst Anthony Noto upgraded King of Prussia, Pa.-based GSI to "Buy" from "Neutral," citing solid 2006 results and a strong 2007 outlook.

Shares of online search leader Google Inc. climbed $11.27, or 2.5 percent, to finish at $456.55 on the Nasdaq Stock Market. Analysts said the company plans to expand its beta test for a cost-per-action advertising model. This means advertisers would pay Google each time an action -- such as a purchase or page view -- was completed on their Web sites. Advertisers currently pay every time their ad is clicked on, even if it was by mistake.

more...
http://biz.yahoo.com/ap/070321/sector_wrap_internet.html?.v=1

[loudsue]

67. OK. I guess we never get closing numbers anymore, huh?.

They're just not important to the Market watch thread.

loudsue -- pita (pain in the ass)

:kick::kick::kick:

[Roland99]

68. Here they are -I've been curtailing surfing at work lately...been busy :-)

DJIA 12,447.52 +159.42 +1.30%
Nasdaq 2,455.92 +47.71 +1.98%
S&P 500 1,435.04 +24.10 +1.71%
Dow Util 496.77 +5.70 +1.16%
NYSE 9,317.73 +159.46 +1.74%
AMEX 2,164.50 +24.38 +1.14%
Russell 2000 807.47 +13.87 +1.75%
Semcond 482.45 +8.79 +1.86%
Gold future 660.00 +1.00 +0.15%
30-Year Bond 4.70% -0.01 -0.23%
10-Year Bond 4.52% -0.03 -0.64%

[loudsue]

70. Thanks, Ro!

I appreciate that! :loveya: Looks like a positive day in the market, huh?

:hi: Have fun at work!? :)

:kick:

[Roland99]

71. Actually did have fun at work (well, as much as one could possibly have)

;)

[UpInArms]

73. throwing in the yada for laughs

4:20 pm : Stocks rallied across the board Wednesday as investors embraced further evidence that the Fed continues to do a remarkably good job of engineering the so-called soft landing that has been priced into stocks since last July. The S&P 500 and Nasdaq soared 1.7 % and 2.0%, respectively, climbing back into positive territory for the year.

Per usual, all eyes were fixed on the culmination of a two-day FOMC meeting and, as expected, policy makers left rates unchanged at 5.25% for a sixth straight time. What was not a foregone conclusion, though, was what the accompanying policy directive would imply about future rate decisions.

Then, at 2:15 ET, the bulls got what they were hoping for -- some softening in the Fed's long-standing tightening bias. Even though the Fed's predominant concern remains the "risk that inflation will fail to moderate as expected," which we believe does not amount to signs of a rate cut anytime soon, the surprise removal of "additional firming" in the directive was enough of a change to trigger a relief rally that vaulted every sector. Acknowledgement by the Fed of ongoing "adjustments" in the housing sector also sent the shorts running for cover, especially among beaten-down Homebuilders -- one of today's best performers (+3.5%). In fact, 144 of the 147 S&P industry groups posted gains.

Not surprisingly, growing evidence of a more neutral stance lit a fire under an influential Financials sector that was already embracing record results from Morgan Stanley (MS 80.77 +4.66). The investment bank handily topped Wall Street expectations with a 70% surge in quarterly earnings. Management also saying its mortgage business was a "significant contributor" to its record Q1 results also helped silence overblown concerns about the subprime mortgage misfortunes potentially spilling over into the broader economy. DJ30 +159.42 NASDAQ +47.71 SP500 +24.10 NASDAQ Dec/Adv/Vol 796/2252/2.10 bln NYSE Dec/Adv/Vol 598/2693/1.48 bln

3:30 pm : The major averages are off their best levels but buyers remain in complete control of the action going into the close. Gains of 1.5% on the S&P 500 and Nasdaq have lifted both indices back into positive territory for the year. The Dow, led by gains in 29 of its 30 components, is also benefiting from the Fed-induced relief rally but is currently still languishing in the red for 2007.

Further underscoring the overwhelming bullish sentiment has been a decline of 13% on the VIX (CBOE Volatility Index), which suggests investors are aggressively buying call options in anticipation of further upside. DJ30 +140.44 NASDAQ +36.07 SP500 +20.68 NASDAQ Dec/Adv/Vol 801/2207/1.71 bln NYSE Dec/Adv/Vol 568/2695/1.19 bln

[Roland99]

74. Short-term memory disease is rampant these days, eh?

Meaning the only thing investors seem to pay attention to are the current headlines.

[Ghost Dog]

72. Nikkei up 1.3 pct as Canon, exporters gain on yen

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070322:MTFH39483_2007-03-22_00-07-25_T9695&type=comktNews&rpc=44
Wed Mar 21, 2007 8:07pm ET

(Updates to opening)

TOKYO, March 22 (Reuters) - The Nikkei share average rose 1.28 percent on Thursday as investors picked up shares in exporters such as Canon Inc. (7751.T: Quote, NEWS , Research) encouraged by a softer yen.

The Nikkei <.N225> was up 220.42 points at 17,383.62 as of 0001 GMT. The broad TOPIX index <.TOPX> gained 1.20 percent to 1,728.85.