STOCK MARKET WATCH, Wednesday June 13

[ozymandius]

Source: DU

Wednesday June 13, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 586 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2352 DAYS
WHERE'S OSAMA BIN-LADEN? 2064 DAYS
DAYS SINCE ENRON COLLAPSE = 2025
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
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 June 12, 2007

Dow... 13,295.01 -129.95 (-0.97%)
Nasdaq... 2,549.77 -22.38 (-0.87%)
S&P 500... 1,493.00 -16.12 (-1.07%)
Gold future... 653.10 -5.90 (-0.90%)
30-Year Bond 5.36% +0.12 (+2.21%)
10-Yr Bond... 5.25% +0.11 (+2.16%)






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

---

Read more: DU

[fasttense]

1. Thanks for posting again and again and again..... Ozy

I sometimes forget to follow the market but with your posts I can easily catch up.

[ozymandius]

3. Thanks!

I typically go for the low-hanging fruit. It's just juicier.

:hi:

[Roland99]

13. Well, here's the 1st Rec of the day for ya, ozy!

:hi:

[ozymandius]

2. Today's Market WrapUp

Technical Update — Key Markets
BY FRANK BARBERA, CMT

Last week, the stock market declined sharply amid rising long-term interest rates and bearish Unit-Labor Cost and Productivity data that suggested that the Federal Reserve may be 'on hold’ longer than most expect. In addition, Central Banks continue to raise short term interest rates around the world, putting equity markets under selling pressure. To readers of this column, the setback in the stock market should have come as no surprise as we were warning of a pull back on the order of 2% to 3% over the last two weeks, both in these pages and in our newsletter. Back on May 22nd, in “Tales of a Rolling Boulder” we stated that,

“The most likely outcome near term is for the S&P to react toward 1500, and likely just a bit below 1500. Following a near term sell off, it is then almost a given that the index will rally back up off that 1485-1500 low, and either make a margin new high, or simply match the recent high at 1525-1530. The key to the next rally will be to note that it will be unfolding against a flattening 200 hour moving average and narrowing Bollinger Bands. Ultimately, any matching price high – two weeks from now – will likely create a truly major set of bearish divergences which will ultimately establish what should be the bull market peak for this cycle. Any near term decline should find initial support in the area of the rising moving average at 1485 to 1500.”

Thoughts on the S&P 500 Index

As can be seen in the S&P hourly chart below, the sell off last week bottomed at an intra-day reading near 1487, with prices quickly recovering back toward 1500. This was a bit near the low end of our target window and probably sends a message that the S&P is becoming somewhat ‘weaker than expected” relative to our original analysis. As a result, while it is still possible that the S&P could make token new highs above 1540, or match 1540, we suggest that at this juncture, the odds of that happening are fading. Instead, we would expect a ‘failing’ counter-trend rally with the S&P moving back up toward the 1525-1530 level.

-see chart-

So where’s the problem, Barbera? Well, take a good look at the chart above. The high point on the SuperTrin was the 1.71 reading seen on July 26, 2006. Since that massively-oversold “bear market” oversold value, the counter-trend rally of the last 9 months has been in effect. More recently, at the late December high of 2006, the SuperTrin tagged a fully overbought reading of .99, below 1.00 the relative ‘overbought’ value for a bear market. Now, most recently, the primary Bear Market downtrend appears to be re-asserting itself with the GST Home Building Index, (our own unweighted gauge of 20 to 30 stocks) and is threatening to break down below the 430 support level, which has held over the last few years.

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

[ozymandius]

4. Today's Reports-a-plenty (Superbowl edition)

8:30 AM Export Prices ex-ag. May
Briefing Forecast NA
Market Expects NA
Prior 0.4%

8:30 AM Import Prices ex-oil May
Briefing Forecast NA
Market Expects NA
Prior 0.2%

8:30 AM Retail Sales May
Briefing Forecast 0.7%
Market Expects 0.6%
Prior -0.2%

8:30 AM Retail Sales ex-auto May
Briefing Forecast 1.0%
Market Expects 0.7%
Prior 0.0%

10:00 AM Business Inventories Apr
Briefing Forecast 0.3%
Market Expects 0.3%
Prior -0.1%

10:30 AM Crude Inventories 06/08
Briefing Forecast NA
Market Expects NA
Prior 112K

2:00 PM Fed's Beige Book

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

[UpInArms]

16. 8:30 reports:

06. U.S. May export prices rise 0.1%
8:30 AM ET, Jun 13, 2007 - 4 minutes ago

07. U.S. May retail sales ex-gas, ex-autos up 1%
8:30 AM ET, Jun 13, 2007 - 4 minutes ago

08. U.S. May import prices ex-petroleum rise 0.5%
8:30 AM ET, Jun 13, 2007 - 4 minutes ago

09. U.S. May retail sales gain largest since Jan. 2006
8:30 AM ET, Jun 13, 2007 - 4 minutes ago

10. U.S. May imported petroleum prices up 2.7%
8:30 AM ET, Jun 13, 2007 - 4 minutes ago

11. U.S. May general merchandise sales up 1%
8:30 AM ET, Jun 13, 2007 - 4 minutes ago

12. U.S. May import prices rise 0.9%
8:30 AM ET, Jun 13, 2007 - 4 minutes ago

13. U.S. May gasoline sales up 3.8%
8:30 AM ET, Jun 13, 2007 - 4 minutes ago

[Roland99]

21. Markets go bi-polar in reaction to Retail Sales Jump

Headlines so far today on Marketwatch:

U.S. stock futures turn lower as markets digest data
Retail sales jump highest in 16 months


and then later:

Stocks rise as yields drop after upbeat retail


:freak:

[ozymandius]

25. Oil rises on inventory report

NEW YORK (CNNMoney.com) -- Oil prices turned higher Wednesday, shrugging off rising oil supplies and instead focusing on a drop in refinery activity and unchanged gas stocks.

U.S. light crude for July delivery rose 42 cents to $65.77 a barrel on the New York Mercantile Exchange. Oil prices were lower before the government reported no change in gasoline stocks.

In its weekly inventory report, the Energy Information Administration said gasoline supplies, closely watched in the summer driving season and running low all year, were unchanged last week.

-cut-

Crude stocks rose by 100,000 barrels, while distillates, used to make heating oil and diesel fuel, increased by 300,000 barrels. Analysts were looking for a decline of 500,000 barrels of crude and an 1.5 million-barrel rise in distillates.

http://money.cnn.com/2007/06/13/markets/oil_eia/index.htm?postversion=2007061311

[UpInArms]

44. Fed's Beige Book

09. Beige Book: No sign of recovery in housing
2:01 PM ET, Jun 13, 2007 - 1 hour ago

10. Beige Book: Retail, factories gaining in May
2:01 PM ET, Jun 13, 2007 - 1 hour ago

11. Beige Book reports no increase in price pressures
2:01 PM ET, Jun 13, 2007 - 1 hour ago

12. Beige Book reports moderate economic growth
2:01 PM ET, Jun 13, 2007 - 1 hour ago

[UpInArms]

45. Business and Crude Inventory Reports:

48. U.S. April inventories up 0.4%
10:03 AM ET, Jun 13, 2007 - 5 hours ago

49. U.S. April inventories-sales ratio 1.27%, least since August
10:02 AM ET, Jun 13, 2007 - 5 hours ago

37. U.S. crude supply up 100,000 brls last week: Energy Dept.
10:31 AM ET, Jun 13, 2007 - 4 hours ago

38. U.S. distillate supply up 300,000 brls: Energy Dept.
10:31 AM ET, Jun 13, 2007 - 4 hours ago

39. U.S. gasoline supply unchanged at 201.5 mln: Energy Dept.
10:31 AM ET, Jun 13, 2007 - 4 hours ago

[ozymandius]

5. Oil slips ahead of inventory report

Oil prices slipped Wednesday as traders anticipated that fresh U.S. energy inventory data would show gasoline stockpiles rose last week.

Light, sweet crude for July delivery on the New York Mercantile Exchange dropped 15 cents to $65.20 a barrel in electronic trading by midday in Europe.

-cut-

The inventory report from the U.S. Energy Department's Energy Information Administration, due later Wednesday, is expected to show gasoline inventories rose by an average of 2 million barrels last week, boosted by rising refinery output and higher imports, according to a Dow Jones Newswires survey of energy analysts.

Refinery utilization is expected to increase by 0.8 percent.

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

[UpInArms]

6. dollar watch

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

Last trade 83.171 Change +0.190 (+0.23%)

Forex Update: Which Central Banks are Still Raising Interest Rates?

Forex Update: Which Central Banks are Still Raising Interest Rates?

Interest rates have a huge impact on forex trading, and currently, central banks appear anxious to enact rate hikes as inflation pressures persist globally. This is perhaps most clear in New Zealand, where the RBNZ unexpectedly raised rates to a record high just a few days ago. This is also evident in Canada, as the BOC has signaled policy tightening in July, the result of a major economic turnaround that has been in the works over the past three months. At a time when high yielding currencies run a high risk of being liquidated if the stock market continues to tumble, knowing which central banks are still on track to raise interest rates and which are not will be key in determining which currencies under or outperform.

The chart below highlights which central banks we consider to have the most severe tightening bias and more importantly, which are the most likely to increase interest rates in the near term. While all of them have demonstrated a more hawkish stance, certain factors pertinent to their respective economies leave banks, such as the Bank of Canada, prone to earlier action.




...more...

Dollar Rallies, Bond Yields Hit 5 Year High, Stock Market Plummets: What Does It Mean for US Data?

http://www.dailyfx.com/story/bio1/Dollar_Rallies__Bond_Yields_Hit_1181685111187.html

Even though there was no major US economic data released today, we had very volatile price action in the financial markets. The Dow Jones was down 90 points in the first hour of trading then rebounded back to flat before selling off once again to end the day down almost 130 points. Ten year bond yields also hit a 5 year high driving the US dollar up against the Euro and Japanese Yen. In fact, the yield curve is now pricing a slim chance of a rate hike over the next year. The price action in the three markets suggests that the bias is certainly skewed towards stronger numbers tomorrow morning as the US data calendar heats up significantly. We are expecting May retail sales and import prices, April business inventories, the Treasury’s report on FX manipulation as well as the Beige Book report. Record gasoline prices in late April, early May could boost gasoline receipts which are reflected in the overall value of retail sales. The weaker dollar on the other hand should drive import prices higher. Inventories are expected to rebound after a drop in March while China will mostly likely avoid being branded a currency manipulator given recent changes to monetary policy. Stronger economic data will only validate the Federal Reserve’s need to leave interest rate unchanged which is why the stock market is falling instead of rising. Stocks will need to fall much further before the Fed will consider lowering interest rates however.

...more...

[ozymandius]

15. I just don't see how the Fed cannot raise interest rates.

So much money has been printed. The world is soaked in liquidity. Subprime mortgages are due to reset. The savings rate is at an historical low.

Ami I missing something? Maybe I'm being too idealistic?

[UpInArms]

17. at some point the Fed will

have to pick - the stock market or the dollar -

feels like a roulette wheel - round and round she goes - where she stops ...

:crazy:

[mojavekid]

26. Daily Pfennig 6/13/07: Greenspan Is at it Again...

http://www.kitcocasey.com/displayArticle.php?id=1436

Good day... The dollar broke out of its range overnight and moved higher vs. just about all of the currencies. The dollar was helped by some comments by former Fed Chairman Alan Greenspan and expectations the economic data due to be released will show the U.S. economy has turned the corner.

The former Fed head was at it again. Greenspan, speaking at an event in NY, said the historically low yield premiums on emerging market debt "ain't going to continue that way. And indeed, all the spreads you are looking at, including mortgage spreads relative to the 10-year, are going to start to open up and the 10-year is going to be moving as well." His comments were interpreted as a projection of still higher yields in the U.S., which caused some currency traders to buy the dollar.

snip...

If interest rates do continue to increase, which I believe will happen, mortgage loan defaults will undoubtedly increase. As Chuck has pointed out numerous times, there are a record number of Adjustable Rate Mortgages ready to reset in the next few years. Rising yields will have a dramatic impact on U.S. consumers who are currently spending just about all they make. When you add an increase of a couple hundred dollars to their mortgage, something is going to have to give. The news media have moved this story off the front page, but the subprime mortgage meltdown is still happening. The scenario which is shaping up here in the U.S. doesn't give me confidence in the US$.

more...

[citizen snips]

32. Dollar Up Against Euro on Rising Yields

NEW YORK (AP) -- The dollar traded higher against the euro Wednesday after climbing to two-month highs against the 13-nation currency on soaring U.S. bond yields.

The euro dropped to $1.3261 versus the dollar before recovering in afternoon trading to $1.3294 on improved European employment figures.

A report by Eurostat, the EU statistical agency, that showed more than half a million people found work in the 13 countries that use the euro in the first quarter.

Climbing bond yields have boosted the dollar. Yields hit a five-year high on Tuesday.

more...
http://biz.yahoo.com/ap/070613/dollar.html?.v=2

[ozymandius]

7. 4 international banks indicted in Milan

MILAN, Italy - Four international banks were indicted in Milan Wednesday on charges related to the 2003 failure of the Parmalat dairy empire, Europe's largest corporate bankruptcy.

Judge Cesare Tacconi issued the indictments against Citigroup Inc., UBS AG, Deutsche Bank AG and Morgan Stanley — along with 13 managers of those lenders — for failure to take measures that would have prevented the crimes that led to the company's failure.

The case is one of several trying to assign responsibility for the stunning collapse of the dairy company under $18 billion of debt.

In the dairy company's hometown of Parma, a court has been hearing preliminary evidence for nearly a year in proceedings to decide charges against more than 60 former executives, financial advisers and bankers.

http://news.yahoo.com/s/ap/20070613/ap_on_bi_ge/italy_parmalat

[ozymandius]

8. U.S. Stocks Head Toward Flat Open

NEW YORK - Stocks headed for a flat open Wednesday following another pullback the previous session and ahead of economic reports on retail sales and business inventories.

The quiet move in stock futures, which had been lower earlier Wednesday, comes as bond yields retreated from five-year highs. A rise in bond yields amid inflation concerns has pummeled stocks since last week.

The economic findings due Wednesday come after a relative lull in data that left Wall Street wanting for fresh indicators about the strength of the economy.

Investors are looking for the Commerce Department to report before the opening bell that retail sales rose 0.7 percent in May, compared with a 0.2 percent loss in April, and that business inventories increased 0.4 percent in April. In March, inventories declined 0.1 percent.

http://news.yahoo.com/s/ap/20070613/ap_on_bi_st_ma_re/wall_street

[UpInArms]

9. Greenberg Rebuttal (AIG Fraudster)

http://www.nytimes.com/2007/06/13/business/13aig.html?ex=1339387200&en=d5ef99f751d5f54d&ei=5088&partner=rssnyt&emc=rss

Maurice R. Greenberg, the former chief executive of the American International Group, tried to turn the tables on his accusers yesterday.

<snip>

Mr. Greenberg, who was sued in 2005 by the attorney general of New York and accused of misleading investors, said in legal papers that shareholders were hurt when A.I.G. restated earnings as $3.4 billion less after his departure.

According to yesterday’s filings, the attorney general’s office said false information from Mr. Greenberg distorted the market price of A.I.G. stock. Mr. Greenberg said testimony would show that any price drop was a result of the restatement.

...more at link...

[ozymandius]

10. Asia stocks fall, haunted by rate fears

SINGAPORE (Reuters) -- Asian stock markets fell on Wednesday, with rate-sensitive property shares among the worst hit, as U.S. Treasury yields hovered near five-year highs, stoking fears a rise in global interest rates may curb spending.

Although many investors were nervous that Treasury yields might head higher still, some players tiptoed back into the bond market during Asian trading hours.

"An extremely pessimistic outlook on the U.S. economy has given way to views that U.S. fundamentals are solid and are reflected in the sharp rise in yields," said a chief dealer at a U.S. securities firm in Tokyo. U.S. Treasuries recovered slightly from an early slide on Wednesday and yields dipped.

-cut-

Although the BOJ is expected to keep rates on hold at a two-day policy meeting that ends on Friday, investors fretted that jumps in overseas yields could fuel speculation that BOJ rates might go up more rapidly than expected.

http://www.cnn.com/2007/BUSINESS/06/13/asiastox.wednesday.reut/index.html

[UpInArms]

11. Defense Rests in Black Trial Without Taking Stand

http://www.nytimes.com/2007/06/13/business/13black.html?ex=1339387200&en=b3d1a88dd42e5094&ei=5088&partner=rssnyt&emc=rss

CHICAGO, June 12 (Bloomberg News) — Conrad M. Black, the former chairman of Hollinger International, and three other former company executives rested their defense on federal fraud charges Tuesday without taking the stand. Closing arguments are set for Monday.

Prosecutors say the men stole $60 million from Hollinger, once the third-largest publisher of English-language newspapers, characterizing the money as payments made not to compete with former Hollinger papers. From 1998 to 2001, Hollinger sold $3 billion in mostly newspaper assets.

<snip>

The former executives are charged with mail, wire and tax fraud. Mr. Black is also charged with racketeering and obstruction of justice.

The final defense witness, a Salt Lake City accountant and fraud examiner, Alan V. Funk, told jurors that a company’s top managers were in the best position to perpetrate a fraud because they were the most able to override internal and external auditing and controls.

“Those are the best frauds,” Mr. Funk told a prosecutor, Jeffrey Cramer, during cross-examination testing his court-certified expertise.

...more...

[Roland99]

14. They are *so* going to get off easy.

:mad:

[UpInArms]

12. Commerce Bancorp to End Deals With Officers&#8217; Kin (something smelly there)

http://www.nytimes.com/2007/06/13/business/13bank.html?ex=1339387200&en=325d6eea148d3696&ei=5088&partner=rssnyt&emc=rss

Commerce Bancorp, based in Cherry Hill, N.J., says it will end contracts with companies owned by executives and their relatives by the end of the year, halting a practice that has drawn the attention of regulators.

The bank’s statement, in a regulatory filing on Monday, also said the Federal Reserve Bank of Philadelphia expects the bank, which has branches in the mid-Atlantic region and Florida, to enter an agreement over the issue.

For years, Commerce leased land from limited partnerships that included Vernon W. Hill II — the bank’s founder and chief executive. The bank stopped making those leases in 2002. They begin to come up for renewal next year. Under the new arrangement, the company can renew those leases, but not enter into any more.

Other parts of the business will change, though. For more than 30 years, a firm run by Mr. Hill’s wife, Shirley Hill, has designed the bank’s branch offices. Last year, the bank paid the design firm, InterArch, more than $9 million, according to a filing. Commerce said it would bring InterArch into the company.

...more...

[DemReadingDU]

18. Foreclosures in Ohio up 150 percent compared to May '06

DAYTON — Ohio's foreclosures filings jumped 150 percent in May compared to the same period a year ago, according RealtyTrac.

With 13,214 foreclosure filings reported in May, Ohio documented the nation's third-highest state total for the third month in a row, the Irvine, Calif.-based real estate services firm reported.

The state's foreclosure activity increased 16 percent from the previous month, resulting in a foreclosure rate of one foreclosure filing for every 362 households — the fifth highest among the states and 1.8 times the national average, RealtyTrac reported.

RealtyTrac publishes a national database of pre-foreclosure and foreclosure properties, with more than 900,000 properties from nearly 2,500 counties across the country. RealtyTrac is the foreclosure data provider for MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal's Real Estate Journal.

http://www.daytondailynews.com/n/content/oh/story/news/business/2007/06/13/ddn061307foreclosures.html

[mojavekid]

41. Asia Times: Expectations alchemy

http://www.atimes.com/atimes/Global_Economy/IF09Dj01.html


Over the past six months the fundamental foundation under the United States' MacMansion of equity-market hope has started to heave and buckle. One by one the supports show signs of aging.

The golden opportunities of the past few years have started to lose some of their shine. The solutions have been either to ignore unpleasant facts or to assume they are short-lived and of moderate import. All bad news is exciting as it suggests that the US Federal Reserve will cut interest rates. All good news is proof of America's resilient economy in which stocks, growth, opportunity and optimism spring eternal. Risk premiums are small, speculative play massive, and triumphalism is the air we breathe.

snip...

Housing
In the one-year period between the first quarter of 2006 and the first quarter of 2007, the US managed a fall in the rate of home ownership. How is that for a market entering a rough patch?

While you are to be immediately comforted that the decline was not statistically significant, we humbly imagine this to be a dramatic indicator of trouble. Housing and associated industries have played the roles of employer, lender and wealth-effect sentiment booster to American consumers. It is unclear if, when, what and from where a replacement sector will emerge.

New housing sales and starts in the US have been below their mid-2006 peaks for nearly a year. Total construction expenditure is down. Inventories are rising toward the 1-million-unit level. The US National Association of Realtors announced a 10.8% decline in existing-home sales in April, with a 0.8% drop in year-over-year average price.

The US Census Bureau's April New Housing Report showed a 10.6% year-over-year sales decline and a 6.5-month inventory backlog. Using its data, we find a 4% year-over-year average house-price decline and an 11% decline in median home price.


more...

[DemReadingDU]

19. Ohioans suffer worse economically than most Americans

Ohioans have suffered worse economic times than most Americans since the decade began, according to a report released Monday by an association of Ohio anti-poverty organizations.

The Ohio Association of Community Action Agencies is recommending a series of state government actions to improve conditions for the poor in Ohio.

Phil Cole, executive director of the association, acknowledged that the proposals would cost money at a time when state budgets are pinched. "But what should be a higher priority in the state than its people, especially the people who are struggling to make it?" Cole said.

The Ohio Association of Community Action Agencies in Columbus is an association of anti-poverty groups across the state and includes the Community Action Partnership of Greater Dayton. The Association partnered with the Community Solutions, a Cleveland-based research and advocacy group, to study changes in economic conditions in the state since 2000.

full article (might need to register first, it is free)
http://www.daytondailynews.com/n/content/oh/story/news/local/2007/06/12/ddn061207poverty.html

[DemReadingDU]

20. Antioch College announces it will close in July 2008

Antioch College will shutter its campus in July 2008 because of a lack of money and declining enrollment, the private, liberal arts college said Tuesday.

The school will regroup for four years and hopes to find the financial resources to reopen an overhauled campus in 2012.

About 160 faculty and staff will lose their jobs when the campus goes dark, said Mary Lou LaPierre, vice chancellor for university advancement.

The undergraduate college, which has a rich history in social activism, has watched enrollment drop from its 1960s heyday of about 2,000 students to 400 today, LaPierre said.

full article (might need to register first, it is free)
http://www.daytondailynews.com/n/content/oh/story/news/local/2007/06/12/ddn061207antiochweb.html


edit for these links...
photos
http://www.daytondailynews.com/p/content/gen/sharedoh/photos_galleries/news/local/061207antioch.html

Antioch cites inability to compete for 'new millennium student' in closing
http://www.daytondailynews.com/n/content/oh/story/news/local/2007/06/13/ddn061307antiochinside.html

Statement from Antioch College board of trustees
http://www.daytondailynews.com/n/content/oh/story/news/local/2007/06/12/ddn061207antiochstatementweb.html

Noteworthy Antioch College graduates
http://www.daytondailynews.com/n/content/oh/story/news/local/2007/06/13/ddn061307antiochgrads.html

Shock, sadness among reactions to Antioch news
http://www.daytondailynews.com/n/content/oh/story/news/local/2007/06/12/ddn061307antiochreax.html

[Roland99]

22. 10:33am - Markets off to a roaring start

Dow 13,382.45 87.44
Nasdaq 2,563.85 14.08
S&P 500 1,503.83 10.83
10 YR 5.22% -0.03
Oil $65.17 $-0.18
Gold $652.00 $-1.10

DJIA was up about 100 just a few moments ago.

[ozymandius]

23. all good roars must come to an end

11:45
Dow 13,362.29 Up 67.28 (0.51%)
Nasdaq 2,562.02 Up 12.25 (0.48%)
S&P 500 1,501.87 Up 8.87 (0.59%)
10-Yr Bond 5.229% Down 0.019
NYSE Volume 1,101,260,000
Nasdaq Volume 764,307,000

11:30 am : The indices are still turning in a respectable performance but continue to slide from their morning highs. As has been the case for the last week or so, the stock market continues to look to action in the Treasury market for direction.

As a result, the yield on the benchmark 10-year yield recently climbing back to 5.22% leaves buyers a bit skeptical about the sustainability of today's bounce, especially with key inflation data hitting the wires over the next two sessions. DJ30 +55.49 NASDAQ +9.97 SP500 +7.16 NASDAQ Dec/Adv/Vol 1064/1746/650 mln NYSE Dec/Adv/Vol 770/2379/454 mln

11:00 am : Buyers remain in complete control of the action, but a recent turnaround in oil prices has stalled some of this morning's momentum. After being down about 0.7% ahead of today's weekly inventories report, crude for July delivery is up 0.9% at $65.95/bbl. Gasoline supplies, which were expected to rise for a sixth week, surprisingly checked in unchanged while the refinery utilization rate unexpectedly falling to 89.2% has also renewed enthusiasm for oil.

Fortunately for the bulls, subsequent leadership in the Energy sector (+1.3%), which now leads the way among the 10 sectors catching a bid, has helped to offset crude's latest uptick. DJ30 +88.41 NASDAQ +14.44 SP500 +10.95 XOI +1.5% NASDAQ Dec/Adv/Vol 1018/1754/514 mln NYSE Dec/Adv/Vol 520/2353/348 mln

[Roland99]

28. A rare strong day for the ADVs

[Roland99]

47. .

[ozymandius]

24. Intel Tells Customers It Will Slash Chip Prices 50% (Update6)

June 12 (Bloomberg) -- Intel Corp., the world's largest chipmaker, plans to slash the price of some processors over the next three months to regain market share from Advanced Micro Devices Inc.

The company will cut prices of its Core 2 Quad processor by 50 percent on July 22, according to an Intel document given to clients. The chips, introduced in November to run servers and the most expensive personal computers, sell for $530 each, according to Santa Clara, California-based Intel's Web site.

The move puts pressure on Advanced Micro to follow suit as the company prepares to introduce its own quad-core processors, called Barcelona and Phenom, in the second half. Last year, a price war led to a 42 percent decline in annual profit at Intel and a $166 million loss at Advanced Micro.

``Intel had lost its way,'' said Brian Piccioni, a Toronto- based analyst for BMO Capital Markets. ``But there is a problem when you wake up a giant, which is they can become fierce competitors.''

http://www.bloomberg.com/apps/news?pid=20601109&sid=aQH1c8bM6ohM&refer=home

[Egnever]

29. interesting

From the buzz I have been reading supposedly the new AMD chips are going to blow the intel ones out of the water.

This is an attempt to grab market share before the AMD chips hit the streets and there is no longer a market to grab for Intel I believe. We will see how it pans out but this move leads me to believe they know they are about to get stomped and are trying to make the best of it while they still can.

[Delphinus]

43. Really?!

I'll have to research this - thanks!

[Egnever]

46. Heres a short blurb on it

AMD also recently bought out ATI which makes Video cards. I think they are getting ready to make a big splash here in the next few months/year..s. It will be interesting to watch it pan out.

http://www.eweek.com/article2/0,1895,2128849,00.asp

Advanced Micro Devices believes its next generation quad-core desktop processors are a true phenomenon in the IT industry.

With those high expectations in mind, AMD is preparing to launch its quad-core desktop processors, which will go by the name "Phenom," later this year and just after the company unveils its quad-core Opteron processor "Barcelona" for servers.

In addition to preparing its own line of quad-core products to compete against Intel's quad-core Xeon processors, AMD is also unveiling a new platform May 14 that will offer eight-core technology for PC enthusiasts.

This octo-core platform, called "FASN8" and pronounced "fascinate," will be one of AMD's first attempts at delivering its own PC platforms since it bought ATI in October. The platform will contain two quad-core Phenom processors, an ATI Radeon HD 2900 XT graphics card and a new chip set. It is also expected to launch later this year.

[mojavekid]

27. Bonner: THE MILLION-EYED MARKET

http://www.financialsense.com/editorials/daily/2007/0612a.html

snip...

"There is record brokerage margin money out. There is record insider selling in the U.S. since 2000. There is record corporate buyout activity and mergers. Half of all corporate buyouts are for companies that are not profitable! Did you know that?" asks one commentator.

For confirmation, we turn to today's International Herald Tribune, where we get more details on the sale of Blackstone shares to the public. The article notes that the private equity firm's founders, Stephen Schwarzman and Peter Peterson, will walk away with $2.3 billion of the $4.7 billion IPO. Peterson is retiring. He earned $213 million last year. So, the $1.88 billion he will get from selling his stake in Blackstone will help supplement his Social Security payments. Even at $213 million in last year's pay envelope, he must have felt a little light in the wallet. The average pay of 25 top hedge fund managers was more than twice that much last year - $570 million.

But now Schwarzman and Peterson have hit pay dirt…along with the rest of the Blackstone team. The insiders are being taken out by the outsiders.

Let us pause a second to draw breath. We turn our heads upwards to marvel at the monumental vanity…the outrageous arrogance…of these poor outsiders…the retail investors who are buying Blackstone's shares.

more...

[citizen snips]

30. Retail Sales Surge 1.4 Percent in May

WASHINGTON (AP) -- Consumers brushed off rising gasoline prices and slumping home sales to storm the malls in May, pushing retail sales up by the largest amount in 16 months.

The Commerce Department reported that retail sales surged by 1.4 percent last month, compared to April, double the increase that analysts had been expecting. Retail sales had fallen by 0.1 percent in April.

The May strength was widespread with auto dealers, department stores, specialty clothing stores and hardware stores enjoying an especially good month.

Sales would have been strong even without last month's big jump in gasoline prices, which saw prices top $3.20 per gallon. Excluding sales at gasoline stations, overall retail sales would still have been up 1.2 percent.

more...
http://biz.yahoo.com/ap/070613/economy.html?.v=15

[citizen snips]

31. Sector Snap: Semiconductor Stocks Rise

NEW YORK (AP) -- Chip stocks mostly edged up in midday trading Wednesday, despite a sales forecast reduction by industry trade group the Semiconductor Industry Association.

On Wednesday, the SIA cut its 2007 semiconductor sales growth outlook to 1.8 percent from 10 percent. The SIA cited deteriorating prices for NAND flash memory, Dynamic Random Access Memory (DRAM) and microprocessors.

The Philadelphia Semiconductor Sector Index, which is comprised of 19 semiconductor related stocks, climbed 5.41 points, or 1.1 percent, to 487.21.

Although weak flash memory prices would presumably hurt SanDisk Corp., the stock slipped only 20 cents to $43.85.

more...
http://biz.yahoo.com/ap/070613/semiconductors_sector_snap.html?.v=1

[citizen snips]

33. Large-Cap Stocks May Outperform in 2007

NEW YORK (AP) -- Investors could see significant growth in large-cap stocks in 2007 as increasing volatility in financial markets pressures smaller companies, according to a recent report from Merrill Lynch.

Large-cap stocks represent companies with market capitalization of $5 billion or more, while small-cap companies generally have market capitalization of $2 billion or less.

Richard Bernstein, chief investment strategist at Merrill Lynch, wrote in a recent report that he expects financial market volatility to increase in 2007.

"With that in mind, it's important to note that large cap growth stocks tend to perform well during periods of rising volatility," wrote Bernstein.

more...
http://biz.yahoo.com/ap/070613/large_cap_performance.html?.v=1

[citizen snips]

34. Sector Snap: Airline Stocks Down

NEW YORK (AP) -- Airline stocks slipped Wednesday, as crude oil prices rose and Northwest Airlines Corp. became the latest carrier to warn of weakening domestic trends.

Northwest said in a regulatory filing it sees second-quarter softness for domestic unit revenue -- an important industry gauge that divides revenue by capacity -- for the overall industry. Several carriers said recently that a slowing economy and rising supply of airplane seats are sapping strength from the domestic market.

The industry, though, continues to say the international market is performing well.

Northwest shares fell 54 cents, or 2.4 percent, to $22.26 in midday trading. Earlier in the session, they fell as low as $21, their lowest point since they began trading at the end of May.

more...
http://biz.yahoo.com/ap/070613/airlines_sector_snap.html?.v=1

[citizen snips]

35. Sector Snap: Retailers Edge Higher

NEW YORK (AP) -- Retail stocks rose modestly in midday trading Wednesday, after the Commerce Department released a strong May retail sales report.

The Commerce Department said retail sales jumped 1.4 percent in May, double the increase analysts expected and a sharp rebound from a 0.1 percent decline in April.

According to the National Retail Federation, a retail trade group, sales by clothing and clothing accessories stores sales grew 9.1 percent year over year. Health and personal care stores sales rose 6.5 percent over last year.

Retail company shares edged higher.

Shares of Wal-Mart Stores Inc., the world's largest retailer, rose 22 cents to $49.13.

more...
http://biz.yahoo.com/ap/070613/retailers_sector_snap.html?.v=1

[citizen snips]

36. Sector Snap: Heavy Equipment

NEW YORK (AP) -- Shares of heavy equipment companies got a boost Wednesday on positive analyst comments and a credit rating upgrade.

Shares of Illinois Tool Works Inc. posted some of the sector's largest gains after Merrill Lynch upgraded the company to "Buy" from "Neutral" and Goldman Sachs reiterated its "Buy" for the company's stock.

In midday trading, Illinois Tool shares rose $1.63, or 3.1 percent, to $54.48, after peaking at $54.87 earlier in the day and flirting with its 52-week high of $55.14.

Deane M. Dray of Goldman Sachs said the Institute for Supply Management report released last week and other economic data points to a stable U.S. industrial environment.

more...
http://biz.yahoo.com/ap/070613/sector_snap_heavy_equipment.html?.v=1

[mojavekid]

37. Ted Butler: JIM COOK INTERVIEWS (MegaSilver Bull)THEODORE BUTLER

http://www.investmentrarities.com/06-12-07.html

(Mr. Cook is an Asshat, His Co. Investment Rarities charges obscene prices for Bullion, but Mr. Butler knows his Silver market...)

Cook: You’ve been consistently bullish on silver from close to $4 an ounce. How bullish are you these days?

Butler: As bullish as I’ve ever been. Which, incidentally, surprises me.


Cook: Why?

Butler: Well, I always thought that after silver doubled or tripled, I would tone down. I never imagined that the market structure would remain so bullish and that new factors would be impacting the silver market.


Cook: What’s making the market structure look so bullish?

snip...

Cook: You claim this short selling is a manipulation. If that’s true, why couldn’t the big dealers keep things under control for years to come?

Butler: It is becoming more and more obvious the level of concentration they hold in the market.


Cook: What level is that?

Butler: A recent COT report showed the big four or less traders were net short more than the entire total commercial net short position. There’s no rigid number that translates into concentration equaling manipulation, but if 100% doesn’t set off warning alarms, I don’t know what would.


Cook: Where do you get that information?

Butler: It comes straight from the government. They are the ones who acknowledge that concentration is a requisite for manipulation, and that’s why they publish the data.

Butler: The level of the concentrated short position at this late stage of the game. It’s the one thing that tells me we have a long way to go before this move is over. I’ve talked many times about the big short position in silver. Others are beginning to take notice.

More...

[mojavekid]

38. The Mogambo Guru: The High Price of Low Intelligence

http://www.dailyreckoning.com/Writers/Mogambo/DREssays/MG061307.html


I was drunk, as usual, when I saw that Federal Reserve Credit, as usual, expanded by the usual $4.1 billion last week, taking it to $858 billion. Like a caboose being pulled by a train, my bleary, bloodshot eyes see Bank Credit dutifully coming down the track, which bumped up $34 billion, taking us to a record $8.575 trillion.

The big news that originally got me into my cups was the news that the long, bizarre era of insanely-low interest rates, generated by enormous creation of money by the central banks of the world, is now over: Bonds are dramatically falling in price and rising in yield. This is Big, Big, Bad, Bad, Big Bad News (BBBBBBN).

And the reason that the bond boom is over is because the easily-predictable inflation in consumer prices that comes from constant inflation in the money supply - which the Austrian school of economics warns us about - is here big time, and the price inflation is finally being grudgingly recognized, although not fully reflected in official government statistics.

Plenty more...

[citizen snips]

39. Federal Reserve Sees Moderate Growth

WASHINGTON (AP) -- The economy headed into the summer with strong momentum, propelled by a manufacturing rebound and consumers who eagerly went shopping and sightseeing despite high gas prices.

This picture of the economy, released Wednesday by the Federal Reserve, seemed brighter in terms of prospects for overall economic growth. Factory production was up in a majority of districts, an improvement from the previous survey that found manufacturing was slow in most Fed districts.

Consumer spending and retail sales across the country generally were up too, with luxury goods selling better than lower-end merchandise in some areas. Travel and tourism remained healthy but there was little change in auto sales.

Information from the survey will figure into discussions at the central bank's next meeting on June 27-28. Economists predict the Fed will again hold a key interest rate at 5.25 percent, where it has stood for a year. As the economy has recently flashed signs of emerging from a nearly yearlong sluggish spell, the chances of Wall Street's hoped-for rate cut have faded.

more...
http://biz.yahoo.com/ap/070613/fed_economy.html?.v=14

[citizen snips]

40. Sector Snap: Online Video Stocks Mixed

NEW YORK (AP) -- Shares of online video providers traded mixed Wednesday, as shares of Blockbuster Inc. rose after a Citigroup analyst upgraded the stock to "Buy."

Shares of the company, which lets consumers rent DVDs online and in stores, added 33 cents, or 8.5 percent, to $4.28 in afternoon trading.

On Tuesday, Blockbuster said it would charge consumers $1 less a month if they order videos online only instead of at stores as well, letting them rent three DVDs at a time for $16.99 a month. Through the program, which is called "Blockbuster by Mail," consumers also get a free in-store DVD rental each month. Under Blockbuster's similar $17.99-a-month "Total Access" program, consumers can exchange DVDs that were mailed to them for in-store rentals.

The $16.99 deal comes in a dollar below a similar Netflix plan, and Blockbuster also said it will charge $4.99 per month for customers to rent two movies in the period, which essentially matches another Netflix option.

more...
http://biz.yahoo.com/ap/070613/sector_snap_internet.html?.v=1

[Roland99]

42. 2:45pm - Back to a triple-digit day!!

Dow 13,405.37 +110.36
Nasdaq 2,573.34 +23.57
S&P 500 1,508.33 +15.33
10 YR 5.20% -0.04
Oil $66.40 +$1.05
Gold $652.70 $-0.40

[Roland99]

48. Closing Numbers - Dow's best since July 2006

Dow 13,482.35 +187.34
Nasdaq 2,582.31 +32.54
S&P 500 1,515.67 +22.67
10 YR 5.20% -0.05
Oil $66.26 +$0.91
Gold $652.70 $-0.40



WHEEEEE!!!!!!!!!!!