STOCK MARKET WATCH, Tuesday June 19

[ozymandius]

Source: DU

Tuesday June 19, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 582 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2356 DAYS
WHERE'S OSAMA BIN-LADEN? 2068 DAYS
DAYS SINCE ENRON COLLAPSE = 2029
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 18, 2007

Dow... 13,612.98 -26.50 (-0.19%)
Nasdaq... 2,626.60 -0.11 (-0.00%)
S&P 500... 1,531.05 -1.86 (-0.12%)
Gold future... 659.90 +1.20 (+0.18%)
30-Year Bond 5.25% -0.01 (-0.21%)
10-Yr Bond... 5.14% -0.03 (-0.56%)






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

[ozymandius]

1. Today's Market WrapUp

Widely Under Reported Last Week
BY ROB KIRBY

Last week, former Federal Reserve Chairman Alan Greenspan chimed in with ‘his take’ on the likelihood of China pulling the plug on their willingness to hold U.S. Treasury Debt.

The good news: “There is little reason to fear a wholesale pullout by China out of U.S. government bonds, former Federal Reserve Chairman Alan Greenspan said on Tuesday.”

The bad news: “Greenspan said the reason such a withdrawal was unlikely was that China would not have anyone to sell the securities to.”

-cut-

Speaking of pulling chains, another tid-bit that snuck in under the radar of the mainstream financial press last week (June 15, 2007) was the introduction of a Bill (H.R. 2755) to the 110th U.S. Congress by none other than – Republican Presidential hopeful, Representative Ron Paul. The title of the proposed legislation:

To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.

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

[ozymandius]

2. Oil prices dip below $69 a barrel

Oil prices edged lower Tuesday after U.S. crude futures closed at a nine-month high, above $69 a barrel in the previous session, but unrest in Nigeria continued to pressure the market.

Light, sweet crude for July delivery lost 12 cents to $68.97 a barrel in electronic trading on the New York Mercantile Exchange midday in Europe.

The contract had risen $1.09 on Monday to $69.09 a barrel after Nigerian oil unions called a strike for this week amid continuing unrest and violence in the country's oil producing regions. A Nymex front-month contract last closed above $69 on Sept. 1.

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

[Roland99]

12. Remember how I said gas prices were down to the low $2.80s here? Well....

Back up to $3.09 everywhere yesterday!

[ozymandius]

16. The law of supply and demand means nada anymore.

It used to take thirty days for crude oil prices to impact the price at the pump. Not anymore. A tanker captain sneeze is all that's necessary to move prices these days.

[Roland99]

36. Ain't that the sad and disgusting truth.

[UpInArms]

3. dollar watch

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

Last trade 82.723 Change +0.016 (+0.02%)

US Dollar Softer On Treasury Yields and Homebuilders Confidence

http://www.dailyfx.com/story/bio1/US_Dollar_Softer_On_Treasury1182202109292.html

The US dollar succumbed to softness in the session as treasury yields continued to move lower in New York. Reaching a five year high of 5.32 percent last week, US fixed income benchmark yields have pared back considerably to trade at 5.14 percent following the release of lower than expected inflation figures on Friday. With consumer price pressures slightly less than expected, considerations of a more stable economy and unchanged interest rates are fueling dollar bearishness at the moment, especially against the Euro and British pound. Incidentally, exacerbating the day’s pullback was lower than expected homebuilding confidence. Hitting the lowest point in almost 16 years, confidence in homebuilding continues to worsen as a result of the previous subprime fallout as mortgages are now harder to come by. The notion has also affected construction with builders cutting back on production as well as slashing prices in order to thin out existing inventory. Ultimately, the momentum from both is likely to reverberate continuously, setting the theme for the week. With the thin schedule of data left for the next four sessions, the dollar is likely due for a bout of selling until a firm base can be established.

...more...

USDJPY Breakout Could Test 128.00 in Coming Weeks

The weekly chart shows how significant a breakout this is. The next level of chart resistance is not until the December 2002 high at 125.73. Three long term Fibonacci measurements are centered around 128.00. A confluence such as this tends to act as a magnet.





...more...

[Ghost Dog]

27. Euro retreats from record peak vs yen, ZEW hurts

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070619:MTFH68432_2007-06-19_10-30-04_L19797974&type=comktNews&rpc=44

LONDON, June 19 (Reuters) - The euro lost momentum on Tuesday after hitting a lifetime peak against the low-yielding Japanese yen, with sentiment hurt after a surprising fall in a measure of German investor confidence.

The ZEW economic sentiment index, a measure of German investor sentiment on the outlook for the euro zone's largest economy, fell in June to 20.3 from May's 24.0, sending the euro to session lows against the dollar and well away from a record peak hit earlier above 166 yen.

Analysts said that although the ZEW index did not materially alter near-term expectations for at least one more European Central Bank rate hike this year, the surprise drop dented sentiment.

"The ZEW spoilt the party. The data wasn't dramatically bad but it was weaker than expected. With euro zone data we've become accustomed to getting stronger readings, so a weak reading is bad news and that's why the euro is back below $1.34," CIBC World Markets economist Audrey Childe-Freeman said.

The yen remained mired near 4-1/2 year troughs versus the dollar, with sentiment still positioned against it as investors continued to favour higher-return currencies.

/...

[Ghost Dog]

29. Japan's Omi tweaks FX speak,watches yen 'carefully'

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070619:MTFH67921_2007-06-19_10-08-03_T360845&type=comktNews&rpc=44

TOKYO, June 19 (Reuters) - Japanese Finance Minister Koji Omi appears to have tweaked his list of regular comments on the yen -- saying he now "watches currency rates carefully."

It's hardly verbal intervention, but with the yen hitting record lows versus the euro and 4-1/2-year troughs against the dollar, any change in official Tokyo comments could be significant.

In what may be an intentional signal, Omi, the minister in charge of Japan's currency policy, started using the new phrase last Friday and repeated it on Tuesday.

Omi reiterated that foreign exchange rates should reflect economic fundamentals and that he would not comment on specific currency levels -- two of his tried and trusted phrases.

Then he added: "I would like to watch currency rates carefully from now on," and noted that Japanese economic fundamentals are currently favourable.

Asked if that meant the yen should strengthen rather than weaken, he again said: "I won't comment on specific currency levels, but I will continue watching their moves carefully." Continued...

/...

[Ghost Dog]

38. Euro hit by falling German confidence

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B3e168835%2D19b3%2D4164%2D93ee%2Dc5fbcfcd1b1d%7D

An unexpected fall in German investor confidence turned the euro lower on Tuesday. The ZEW economic expectations index fell to 20.3 in June, from 24.0 in the previous month, and falling well short of the expected rise to 29.0. The monthly decline came after six consecutive increases. Current conditions improved, however, reaching a new high of 88.7. The euro fell 0.2 per cent against the dollar to $1.3386, and by 0.2 per cent against the pound to £0.6743. Strategists, however, thought the euro sell-off was overdone, and that the data would have little impact on the European Central Bank’s monetary policy. ”The ECB will see no need to change market expectations. We forecast another rate hike to 4.25 per cent in September,” said Erik Sonntag at ING Financial Markets. Stuart Bennett at Calyon agreed. He said: ”Although the June index was softer than expected, the three-month average remains firm. The small decline in expectations does not signal any significant risk to the German economic outlook.”

[ozymandius]

4. Today's Reports

8:30 AM Housing Starts May
Briefing Forecast 1490K
Market Expects 1475K
Prior 1528K

8:30 AM Building Permits May
Briefing Forecast 1480K
Market Expects 1470K
Prior 1457K

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

[UpInArms]

18. 8:30 reports - May housing starts down 2.1%

01. U.S. May multi-family housing starts up 3.1%
8:30 AM ET, Jun 19, 2007 - 1 minute ago

02. U.S. May single-family housing starts fall 3.4%
8:30 AM ET, Jun 19, 2007 - 1 minute ago

03. U.S. 5-month average housing starts fall to 1.47 million
8:30 AM ET, Jun 19, 2007 - 1 minute ago

04. U.S. May housing completions fall 0.5% to 1.534 million
8:30 AM ET, Jun 19, 2007 - 1 minute ago

05. Housing starts, building permits stronger than expected
8:30 AM ET, Jun 19, 2007 - 1 minute ago

06. U.S. May building permits up 3% to 1.501 million pace
8:30 AM ET, Jun 19, 2007 - 1 minute ago

07. U.S. May housing starts fall 2.1% to 1.474 million pace
8:30 AM ET, Jun 19, 2007 - 1 minute ago

[ozymandius]

20. Housing construction down sharply in May

WASHINGTON - Construction of new homes fell in May as the nation's homebuilders continued to struggle with a steep housing slump that has been exacerbated by rising problems with mortgage defaults.

The Commerce Department reported Tuesday that construction of new homes and apartments dropped by 2.1 percent last month, the poorest performance since a huge 13.9 percent plunge in January.

The May decline was in line with expectations and reflected weakness in the South and West, which offset construction gains in the Northeast and Midwest. The decline, which followed small gains in April and March, left construction 24.2 percent below the level of a year ago.

Construction of single-family homes was down 3.4 percent last month while construction of apartments rose by 3.1 percent.

The problems in housing reflect the end of a prolonged boom period in which sales of both new and existing homes set records for five consecutive years. When the boom ended in 2006, builders were left scrambling to deal with record levels of unsold homes.

http://news.yahoo.com/s/ap/20070619/ap_on_bi_go_ec_fi/economy

[UpInArms]

5. Queen Elizabeth 2 Sold to Dubai-Owned Company

http://www.nytimes.com/2007/06/19/business/worldbusiness/19QE2.html?ex=1339905600&en=b12ea53089cf841a&ei=5088&partner=rssnyt&emc=rss

DUBAI, United Arab Emirates, June 18 (AP) — The Queen Elizabeth 2, the majestic ocean liner that carried millions of people across the Atlantic during its 40-year history, has been sold to a Dubai-owned company for $100 million, the company said Monday.

The state-owned company, Istithmar, said it planned to turn the giant passenger ship into a first-class floating hotel, retail and entertainment destination, berthed off the artificial Palm Jumeirah island.

The aging vessel, bought from the Cunard Line division of the Carnival Corporation, will end its days as a tourist attraction, opening to the public in the beginning of 2009, Istithmar said in an e-mailed statement. Istithmar is a division of Dubai World, a government-owned holding company that also owns Nakheel, the developer of Palm Jumeirah.

...more...

[ozymandius]

6. Futures dip ahead of data, Yahoo up

NEW YORK (Reuters) - Stock futures slipped on Tuesday, as investors were cautious ahead of key U.S. housing data that may shed light on the troubled housing market.

Shares of Internet media company Yahoo Inc. (Nasdaq:YHOO - news) traded up more than 5 percent in Europe, however, so a bounce in technology could cushion the market.

Data on U.S. housing starts is due before the bell, a day after a survey showed sentiment among U.S. home builders fell in June to the lowest since February 1991.

-cut-

May housing starts are due at 8.30 a.m. (1230 GMT). A Reuters poll of economists estimates them to be at an annualized 1.48 million rate for May, down from a 1.53 million annualized rate in April.

http://news.yahoo.com/s/nm/20070619/bs_nm/markets_stocks_dc

[UpInArms]

7. Big Part of OxyContin Profit Was Consumed by Penalties

http://www.nytimes.com/2007/06/19/business/19drug.html?ex=1339905600&en=1e69a811b69d39f4&ei=5088&partner=rssnyt&emc=rss

The $634.5 million in penalties and fines that the maker of the painkiller OxyContin and some of its executives agreed to pay to resolve a false marketing charge represents 90 percent of the profits it initially made from the drug, according to court documents filed by federal prosecutors.

The company, Purdue Pharma, agreed to the penalty, one of the largest ever paid by a drug company in such a case, after an affiliate, Purdue Frederick, and three current and former executives pleaded guilty last month to criminal charges that it had misled doctors and patients when it claimed the drug was less likely to be abused than traditional narcotics.

In another aspect of the case, the lead prosecutor said in a recent interview that former Mayor Rudolph W. Giuliani of New York, who is now seeking the Republican presidential nomination, played the central role on behalf of the company in the negotiations that led to its felony plea.

It was already known that Mr. Giuliani had participated in those talks on behalf of Purdue Pharma, which is a client of Bracewell & Giuliani, a law firm in Houston in which Mr. Giuliani is a principal.

...more...

How fitting - Ghouliani is big pharma's attorney.

[ozymandius]

8. GE, Pearson in talks to buy Dow Jones: report

WASHINGTON (AFP) - US manufacturing giant General Electric and Financial Times publisher Pearson PLC are in talks about making a joint bid for Dow Jones, The Wall Street Journal reported Monday.

Citing unnamed people familiar with the matter, the newspaper said the two companies have discussed a scenario in which GE's CNBC business channel, the FT and Dow Jones would be combined into a privately held joint venture.

The venture would be owned equally by GE and Pearson, with the Bancrofts holding a minority stake, the report said.

The GE-Pearson talks signal that an alternative may be emerging to News Corp.'s five-billion-dollar bid for Dow Jones, publisher of The Wall Street Journal, the paper said.

http://news.yahoo.com/s/afp/20070618/bs_afp/uscompanymergergepearson_070618055016

[KoKo]

44. Interesting...GE Mini-Media against Murdoch's mega media...

Hard to know which is the worst deal for American Public given what MSNBC/NBC and CNBC have become under GE. But then, we know what Murdoch has wrought.

Hard call...

[UpInArms]

9. Best Buy adjusts full-year profit range as results fall shy of expectations

http://www.marketwatch.com/quotes/bby

3 minutes ago Best Buy sees 2008 profit of $2.95 to $3.15 vs. $3.15 view - MarketWatch
10 minutes ago Best Buy Q1 net 39c vs. 47c - MarketWatch
10 minutes ago Best Buy Q1 revenue $7.93 bln vs. $6.96 bln - MarketWatch
10 minutes ago Best Buy Q1 Thomson Financial target 50c - MarketWatch
10 minutes ago Best Buy says results fall short of expectations - MarketWatch

[ozymandius]

10. Yahoo co-founder replaces Semel as CEO

SAN FRANCISCO - After exasperating investors for most of the past 18 months, Yahoo Inc. (Nasdaq:YHOO - news) Chairman Terry Semel finally found a way to please Wall Street by stepping aside as chief executive.

Semel's capitulation, announced late Monday, came less than a week after he faced off with shareholders disillusioned with the company's lackluster performance as Internet search leader Google Inc. pulled further ahead in the lucrative online advertising market.

The malaise had contributed to a nearly 30 percent drop in Yahoo's stock price since the end of 2005.

http://news.yahoo.com/s/ap/20070619/ap_on_hi_te/yahoo_semel

[ozymandius]

11. Expedia Buying Back As Much As 42 Pct

Travel Web site operator Expedia Inc. said Tuesday it plans to buy back up to 42 percent of its common stock for $3.5 billion.

Expedia (nasdaq: EXPE - news - people ) will buy back up to 116.7 million shares for no less than $27.50 per share and no more than $30 per share. The stock closed at $25.50 on Monday.

http://www.forbes.com/feeds/ap/2007/06/19/ap3834403.html

[ozymandius]

13. Asian markets subdued

HONG KONG, China (Reuters) -- Asian energy stocks such as Japan's INPEX Holdings rose on Tuesday following gains in oil prices but markets were generally subdued after a lackluster finish on Wall Street.

Oil surged above $72 a barrel to a 10-month high on Monday amid worries about supply from Nigeria, the world's eighth largest exporter, and at a time of peak summer demand in the United States.

At 0030 GMT, Tokyo's Nikkei average had slipped 0.1 percent, taking a breather after Monday's near 1 percent rise, as recent gainers such as chip tester maker Advantest and electronics components maker TDK lost ground. But INPEX climbed 1.7 percent.

-cut-

After briefly touching a fresh all-time high, South Korea's benchmark KOSPI reversed direction to be little changed as steel maker POSCO and flat screen maker LG.Philips LCD pared recent solid gains.

Both stocks were down more than 1 percent.

http://www.cnn.com/2007/BUSINESS/06/18/asiastox.tuesday.reut/index.html

[Ghost Dog]

30. Asian Exporter Stocks Fall, Led by Nissan; Woodside Advances

http://www.bloomberg.com/apps/news?pid=20601080&sid=a7wtadp1Cckc&refer=asia

June 19 (Bloomberg) -- Asian exporter stocks fell after a report showed confidence in the U.S. homebuilding industry slipped to a 16-year low and oil prices traded near the highest in nine months.

Nissan Motor Co. and James Hardie Industries NV led a drop among companies that rely on U.S. sales on concern growth in the world's largest economy will slow. Tokyo Electric Power Co. and Hanjin Shipping Co. fell on speculation rising fuel costs will erode profits, while Woodside Petroleum Ltd. gained.

``While we're seeing that U.S. growth isn't as weak as we had feared, the problems with housing have always been a risk,'' said Teo Chon Kiat, who helps manage about $8 billion at DBS Asset Management Ltd. in Singapore. ``Rising crude-oil prices will also have an impact on investors' sentiment, even though we're not seeing this filter into inflation yet.''

Declines were limited as brokerages including Merrill Lynch & Co. raised their ratings on Daiichi Sankyo Co., Japan's second- largest drugmaker, to ``buy.'' South Korea's Hyundai Engineering & Construction Co. jumped after Daewoo Securities Co. said the building industry was entering a period of ``long-term growth.''

The Morgan Stanley Capital International Asia-Pacific Index was little changed at 153.28 as of 8:31 p.m. in Tokyo. The measure rose to a record yesterday. Japan's Nikkei 225 Stock Average climbed 0.1 percent to 18,163.61, while the broader Topix index dropped 0.4 percent.

India's Sensitive Index jumped 1.5 percent, the biggest advance in the region, led by ICICI Bank Ltd. after stock in a domestic share sale was snapped up. Measures rose elsewhere, except in Thailand, the Philippines and Pakistan. Markets in Hong Kong and Taiwan were closed for holidays.

/...

[Ghost Dog]

31. China Cuts Export Tariffs to Close Record Trade Gap

http://www.bloomberg.com/apps/news?pid=20601080&sid=aca4tss_uFJ4&refer=asia

June 19 (Bloomberg) -- China said it will reduce export rebates on 2,831 products to curb the country's record trade surplus, ease friction with other countries and spur industries to use less energy.

From July 1, rebates will be removed on 553 types of goods that require a lot of energy to produce and are polluting, including fertilizers, cement, salt and leather, the Ministry of Finance said today on its Web site. Rebates will be pared for 2,268 other exports while 10 products will be made tax-free.

The world's fourth-largest economy may export more than any other nation next year, boosting its 2008 trade surplus by 45 percent to a record $257 billion, according to an April estimate by the Asian Development Bank. The U.S. Congress, labor unions and some manufacturers have accused China of spurring exports by keeping its currency weak against the dollar and giving rebates.

``The trade surplus is not merely an economic issue, it's also a political problem,'' said Wang Yuanhong, an economist at the State Information Center in Beijing, a unit of the government's top planning agency. ``China must adjust its cost of production, including the cost of labor, resources and the environmental impact, to rein in the trade gap.''

/...

[Ghost Dog]

39. Japan manufacturers' confidence up -Reuters Tankan

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070619:MTFH67594_2007-06-19_09-54-59_T243610&type=comktNews&rpc=44

TOKYO, June 19 (Reuters) - Japanese manufacturers' business sentiment nudged up to a five-month high in June, a Reuters survey showed on Tuesday, signaling that manufacturers remain the drivers behind the country's economic growth.

Sentiment of services firms such as retailers worsened for a second month to a 15-month low, however, a sign that the country's growth is still uneven and possibly hinting that household consumption is slowing.

"The weakness among retailers and the information service industry is a bit worrying," said Hiroshi Miyazaki, an economist at Shinkin Asset Management.

The Reuters Tankan, a monthly survey of leading Japanese companies, produced a diffusion index (DI) of plus 31 for manufacturing firms in June, the highest level in five months. It was up 2 points from May and up 3 points from March.

The figure augured well for the the Bank of Japan's quarterly tankan sentiment survey due on July 2, one of the most closely watched indicators in financial markets.

A separate Reuters poll of 10 economists showed a median forecast for the BOJ tankan stood at plus 23 for large manufacturers' DI, while the number for large non-manufacturers was forecast at plus 22, both unchanged from the BOJ tankan for March. Continued...

/...

[UpInArms]

14. Mortgages Give Wall St. New Worries - sounds worse than the 80s Daisy Chains

http://www.nytimes.com/2007/06/19/business/19mortgage.html?ex=1339905600&en=6178f7686ff85799&ei=5088&partner=rssnyt&emc=rss

After the first cracks in the subprime mortgage business appeared late last year, several large lenders were forced into bankruptcy.

Now, the stress is sending tremors down Wall Street, as investment funds that bought a stake in those loans are starting to wobble.

Industry officials say they expect this second act to be longer and slower, unwinding over the next 12 to 18 months. The fallout could further constrict consumers with weak, or subprime, credit while helping to prolong the housing downturn.

On Wall Street, the impact could be far more significant: It could force banks, hedge funds and pension funds to acknowledge substantial losses, which had been tucked away in complex investment vehicles that are hard to evaluate. In turn, that could limit the money available for mortgage lending.

Yesterday, two hedge funds operated by a division of Bear Stearns, an investment bank that is a dominant player in mortgage bonds, fought for their survival as three lenders — Merrill Lynch, Citigroup and JPMorgan Chase — asked Bear Stearns to put up more capital.



...more...

[Eugene]

49. Bear Stearns hedge funds near shutting down: report

Source: Reuters

Bear Stearns hedge funds near shutting down: report

Wed Jun 20, 1:03 AM ET

NEW YORK (Reuters) - Two Bear Stearns Cos. (NYSE:BSC) hedge funds
that invested heavily in securities backed by subprime mortgage loans
are close to being shut down as a rescue plan is falling apart, The
Wall Street Journal Online reported on Wednesday.

Merrill Lynch & Co. (NYSE:MER - news), one of the hedge funds' lenders,
will move to seize collateral from the two funds and sell it, the Journal
reported, citing unspecified documents.

Neither Merrill nor Bear Stearns were immediately available to comment
on the report.

-snip-

http://news.yahoo.com/s/nm/20070620/bs_nm/subprime_bearstearns_dc

[Roland99]

50. I thought the housing bust wasn't going to affect anything? Oh, Be-en!!

;)

[UpInArms]

15. As More Toys Are Recalled, the Trail Ends in China

http://www.nytimes.com/2007/06/19/business/worldbusiness/19toys.html?ex=1339905600&en=b4bb199d45640f71&ei=5088&partner=rssnyt&emc=rss

WASHINGTON, June 18 — China manufactured every one of the 24 kinds of toys recalled for safety reasons in the United States so far this year, including the enormously popular Thomas & Friends wooden train sets, a record that is causing alarm among consumer advocates, parents and regulators.

The latest recall, announced last week, involves 1.5 million Thomas & Friends trains and rail components — about 4 percent of all those sold in the United States over the last two years by RC2 Corporation of Oak Brook, Ill. The toys were coated at a factory in China with lead paint, which can damage brain cells, especially in children.

Just in the last month, a ghoulish fake eyeball toy made in China was recalled after it was found to be filled with kerosene. Sets of toy drums and a toy bear were also recalled because of lead paint, and an infant wrist rattle was recalled because of a choking hazard.

Over all, the number of products made in China that are being recalled in the United States by the federal Consumer Product Safety Commission has doubled in the last five years, driving the total number of recalls in the country to 467 last year, an annual record.

It also means that China today is responsible for about 60 percent of all product recalls, compared with 36 percent in 2000.

...more...

[ozymandius]

17. Add this to the high cost of low price.

As a father of a five year-old boy - I fell personally affronted that companies marketing these toys would put price points over safety. These come from China because they're cheap to make and import. Child safety is clearly secondary.

[Hugin]

23. "The high cost of low price."

Nice quote... Mind if I use it? :)

[ozymandius]

26. It's been used.

That's the title of an anti Wal-Mart documentary.

http://www.walmartmovie.com/

[AnneD]

40. Morning Marketeers......

:donut: and lurkers. One of the ways we measure the health of a society or culture is by how they treat those that cannot defend themselves. China is not looking too good right now.

And speaking of how society treats the defensless....did any of you see the CBS story of the orphanage for the mentally handicapped that some GI's found while on patrol in Iraq. It was worse than those Romanian orphanages in the 80's.

It seems the boy's legs were tied to the rails of the beds and cribs. Some were laying out in a walled courtyard. They were naked and so malnourished you could see all their bones. Those that were out side were covered with flies and sat in temps of over 120. They have the 2 guards in custody but the women caretakers and the manager cannot be found. But this is the kicker-there was plenty of food and clothing, but it was being sold on the market. One Capitan said it took all he could to keep from thrashing the manager. The mayor of the town was on patrol with them was weeping so much he couldn't be interviewed.

The boys were taken to the American clinic for treatment and most survived. What melted your heart was that these kids had been so deprived of human touch they grab the soldiers hands and caress their faces with them. One of the Reservist there said his wife worked with special kids (and I think he did too) and said saving these kids made this tour worth it for him. And of course all the GI's drop by when they can and help take care of the boys. The boys look so happy now.
Just when you think you have seen it all.

Happy hunting and watch out for the bears....

[ozymandius]

19. Wendy's cuts EPS; could be on block

PHILADELPHIA (Reuters) -- Hamburger chain Wendy's International slashed its 2007 earnings forecast Monday and said it would explore a possible sale of the company instead of other restructuring options.

Wendy's had said in April it would weigh options to boost strategic value, including a possible sale. The latest announcement shows that the fast-food chain sees a sale as a more likely option.

-cut-

Shares of Wendy's (down $1.47 to $38.26, Charts), which has a market capitalization of about $3.5 billion, fell more than 3.5 percent on the New York Stock Exchange Monday. Wendy's stock had surged in April after the fast-food chain first said it was exploring a sale. Since then, the stock has risen about 20 percent.

http://money.cnn.com/2007/06/18/news/companies/wendy.reut/index.htm?postversion=2007061815

[ozymandius]

21. pre-open blather

08:48 am : S&P futures vs fair value: -3.1. Nasdaq futures vs fair value: -9.5.

08:34 am : S&P futures vs fair value: -3.1. Nasdaq futures vs fair value: -10.0. The Housing Starts and Building Permits data were both stronger than expected. Specifically, starts were down only 2.1% to an annualized rate of 1.474 million units versus an expected 3.5% decline while permits rose 3.0% to 1.501 million versus an expected increase of 1.0%. The data have not had any meaningful impact on the futures market which continues to presage a negative start for stocks after the disappointing earnings report from Best Buy.

08:08 am : S&P futures vs fair value: -2.6. Nasdaq futures vs fair value: -9.0. The futures market is pointing to a lower open for stocks with a disappointing earnings report and outlook from Best Buy (BBY) serving as the primary catalyst for the negative disposition. As a reminder, the Housing Starts and Building Permits data for May will be released at 08:30 ET and they carry the potential to affect the trading tone. Economists are expecting a 3.5% decline in starts from April.

[ozymandius]

22. bidness being dealt

9:40
Dow 13,600.63 Down 12.35 (0.09%)
Nasdaq 2,620.55 Down 6.05 (0.23%)
S&P 500 1,528.07 Down 2.98 (0.19%)
10-Yr Bond 5.123% Down 0.019
NYSE Volume 156,257,000
Nasdaq Volume 107,782,000

[DemReadingDU]

24. CrisisPapers - Market Failure: The Back of the Invisible Hand

Market Failure: The Back of the Invisible Hand

Ernest Partridge, Co-Editor
The Crisis Papers.
June 19, 2007

The concept of "the invisible hand," cherished by self-designated "conservatives," has its origin in Adam Smith’s Wealth of Nations.

'The individual' neither intends to promote the public interest, nor knows how much he is promoting it... 'He' intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.

An unyielding faith in the infallible beneficence of "the invisible hand," leads to "market absolutism" – the doctrine that whatever government attempts, privatization and the free-market can do better.

What market absolutists (unlike Smith) fail to notice, is that not all workings of "the invisible hand" are beneficial. Some unintended consequences of market activity are harmful -- "the back of the invisible hand." Economists call these "market failures."

One cannot enroll in an Introduction to Economics class, without encountering the concept of “market failure” – the acknowledgment that a totally unconstrained and unregulated free market can, at times, have socially undesirable consequences (as I will exemplify below). It is one of the most obvious and incontrovertible facts of economics. Almost all of us are aware of market failures, whether or not we have ever studied economics.


full article...
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x289389
http://www.crisispapers.org/essays7p/invisible.htm



edit: I had to replace brackets with 'tic' marks

[AnneD]

41. And these days the failure are even more spectacular.....

these folks don't even work for their stockholders anymore...they work for themselves. This is a sure fire formula for failure.

[mojavekid]

25. Daily Pfennig 6/19/07: Homebuilder Confidence Sinks...

http://www.kitcocasey.com/displayArticle.php?id=1448

Good day... The dollar was able to hold on to the gains it had made over the weekend, but it looks set to resume falling this morning as we will get data on U.S. housing starts, building permits, and ABC Consumer confidence. I spent a little too much time on the U.S. housing story yesterday, so I will be quick with my thoughts on today's data.

The housing starts number is expected to show a drop from April's 1,528k to 1,472k in May. Building permits are actually predicted to show a slight increase from April's revised 1,457k to 1,473k. As I wrote about yesterday, the housing market continues to be in a funk, and even though we are in the middle of the prime months for construction, I wouldn't be surprised to see these numbers disappoint. I am pretty confident these numbers won't come in any higher than expected because yesterday's NAHB Housing Market Index fell to the lowest since February 1991. U.S. homebuilder's confidence declined as interest rates climbed and delinquencies surged. The index fell to 28, pretty miserable since any reading below 50 signals respondents view conditions as poor. Builders have scaled back projects to work off bloated inventories, a sign housing construction will weigh on growth for the rest of this year. But I said I wouldn't dwell on the housing numbers, so I will move on to currency markets.

Any move down by the U.S. dollar vs. the euro will probably be restrained today after a report in Germany showed investor confidence unexpectedly fell in June as borrowing costs climbed. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations declined to 20.3 from 24 in May. Economists were expecting it to climb to 29. This decline in confidence is being blamed on the correction on the bond market and expectations the ECB will continue to raise rates going forward. While this latest ZEW data may keep the euro from trading rising further today, I expect the euro to continue its ascent vs. the US$ later this week. The European economy continues to grow at a good clip, and the ECB will keep raising rates to combat inflation.

more...

[kineneb]

28. US's Asia trade could fall into a pothole

http://www.atimes.com/atimes/Global_Economy/IF19Dj01.html

18 June 2007
US's Asia trade could fall into a pothole
By Scott B MacDonald

Trade between the United States and Asia has grown substantially in recent years, a trend that shows few signs of abating. Yet there is a shadow being cast over that development: the aging nature of US infrastructure.

-snip-

Last month, the Urban Institute and Ernst & Young LLP released a report, "Infrastructure 2007: A Global Perspective", stressing that the US has an emerging crisis in mobility that unless addressed will undermine the country's ability to compete internationally. In particular, there is a broad disrepair of transit, power and water systems. The study echoes an earlier American Society of Civil Engineers report in 2005 that graded as "poor" the condition of the United States' transit infrastructure as well as power grids, dams and systems for drinking water and wastewater.

-snip-

The US has room to spend more on infrastructure, especially as it represents an investment on the future. China spends 9% of its gross domestic product on infrastructure and India spends 3.5% - compared with 0.93% by the United States. Both China and India expect to spend more on infrastructure in the years ahead as there is a recognition of the central importance of good roads, rails and power plants to national economic development.

-snip-

[Egnever]

32. Best Buy quarterly profit disappoints; shares drop

By Franklin Paul

NEW YORK, June 19 (Reuters) - Best Buy Co. Inc. (BBY.N: Quote, Profile, Research) on Tuesday reported quarterly earnings that missed analysts' estimates by 28 percent and gave a disappointing full-year forecast as lower-margin products like notebook computers and video game consoles made up a greater percentage of sales.

The outlook sent shares of the top U.S. consumer electronics retailer down nearly 6 percent. It also cast new doubts on U.S. consumer spending trends, weighing on U.S. stocks.

"The margin numbers were terrible and we've known from the data we've seen that consumer spending has moderated," said Peter Boockvar, equity strategist at Miller Tabak & Co. in New York.



http://yahoo.reuters.com/news/articlebusiness.aspx?type=consumerProducts&storyid=nN19457395&WTmodLoc=HybArt-R2-IndustryNews-3&from=business

[mojavekid]

33. Prudent Squirrel: INTEREST RATES, CURRENCIES AND GOLD

http://www.financialsense.com/fsu/editorials/laird/2007/0619.html



INTEREST RATES, CURRENCIES AND GOLD
by Christopher Laird
PrudentSquirrel.com
JUne 19, 2007


In this article, we discuss what rising interest rates will do to world financial markets, currencies, commodities, and gold.

Leveraged markets do not like rising interest rates

With rising interest rates, financial markets are in the beginning of a major trend change. I like to call it a major sea change. For the last 5 years (further back actually considering Japan) world interest rates have been way below historical averages. During this time, unprecedented leverage has found its way into asset and financial markets such as stocks.

Historical average interest rates run about 6%, going centuries back.

When interest rates are abnormally low for extended periods of time, asset and financial markets end up in big bubbles. Eventually, when everyone who wants to borrow money is maxed out, and invested in everything they can, the bubbles collapse. For this reason, it is my strong suspicion that our unprecedented world asset and financial bubbles will be harmed severely by a new sea change of rising interest rates that is beginning.

Now, world interest rates have already been rising for about a year, and the US had already raised from 1% to the present 5+ % range. The EU and China are also raising now for a time.

snip...

But, the real story is one of rising interest rates, and the resultant threat of unwinding in all markets that the super cheap borrowed money found its way into.

My observation is that not near enough attention is being given to the effect that rising interest rates would have on all markets, naturally causing some unwinding of leverage.

The world is the well into the greatest across the board asset and financial bubble in history. A primary reason for these asset and financial bubbles is the cheap credit regimes that have been with us since around 1995 (Japan) and the rest of the world for the last 5 years.

Now, another very important point is to consider that we are not merely observing a 1% or so rise in world interest rates in the last year. (Japan excepted). The important issue is that we are just now emerging into a trend change to a rising interest rate environment, and what that would portend for highly leveraged markets.

The logic follows then, that if asset and financial markets react to rising interest rates, they will naturally start unwinding, and if rising interest rates stay with us, will unwind with increasing magnitude.

more...

[TrogL]

43. A curse on all gold bugs

[KoKo]

45. ahhh....but so many of us had so much hope for so long that rationality

would take hold and what they wrote might just come true. That something in our financial markets would once again be based on a "tangible" asset.. :-(

[TrogL]

46. It would make sense if it was a zero-sum game

But some people dig the stuff out of the ground and others keep wearing it as jewellery, even into the grave.

[mojavekid]

47. Ted Butler: The Raptors Rule

http://www.investmentrarities.com/06-19-07.html

Less than one month ago, I started writing about the Raptors, which I defined as those smaller silver (and gold) traders in the large reporting commercial category of the Commitments of Traders Report (COT), other than the 8 largest traders. I advanced a theory that suggested these smaller commercial traders were now calling the shots in the COMEX gold and silver markets and were, quite literally, eating the big traders’ lunch. Subsequent COT reports have confirmed this theory.

The most recent COT, for positions as of June 12, indicated that the raptors were active in silver, but especially so in gold. In silver, the raptors bought 3800 futures contracts on the big price decline, or almost two-thirds of the 6000 contracts they had sold at the previous price highs of the prior two weeks. The raptors booked a profit of roughly $20 million on their previous sales and bought back the majority of those sold silver contracts. In the latest COT, the raptors are long 11,500 futures contracts. These are not insignificant maneuvers.

snip...

The net result of the unusual raptor buying in gold is that the raptors now hold the highest net long position (over 42,000 contracts) in memory, while the big 4 hold a net short position greater than 100% of the total net commercial short position. The 8 largest gold traders now hold a net short position that is more than 144% of the total commercial net short position. These figures are near record levels.

more...

[Ghost Dog]

34. Investors worry but keep on buying risk

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-06-19T153245Z_01_L19818036_RTRIDST_0_MARKETS-INVESTORS-WRAPUP-1.XML

LONDON, June 19 (Reuters) - Rising global bond yields have done little to deter institutional investors from taking on risk this month but may have made them more concerned about the future, investor confidence indexes suggested on Tuesday.

A monthly gauge of moves by large investors from U.S. financial services firm State Street showed risk appetite to be alive and well despite worries about higher interest rates and inflation driving bond yields to around 6-1/2 year highs.

At the same time, however, a survey of German investor and analyst morale by think tank ZEW showed economic sentiment in the euro zone's biggest economy fell in June after rising for six months.

Specifically, the State Street Investor Confidence Index for June rose to 97.2 in the month from 92.1 in May, which was itself upwardly revised from 91.2.

The June reading was the second highest in more than three years, eclipsed only by March's 99.3 reading.

A rising index implies that investors have been moving into riskier assets such as stocks, extrapolated from the $12.3 trillion in institutional money that State Street looks after as custodian.

The ZEW report surprised markets and led to an easing of European equities and a slip in the euro versus the yen -- albeit from a 6-1/2 year peak in the former case and a lifetime high in the latter. Continued...

/...

[Ghost Dog]

35. European stocks hit by weak retailers

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7Bff6a9fe9%2Deeee%2D4921%2Dbd70%2Da5838ee53d87%7D

European stocks markets retreated on Tuesday amid weakness in the retail sector. Tesco shares were down 4.9 per cent to 434¾p as the UK’s largest grocer sales the sales rose at the slowest pace for 12 months. Llike-for-like sales were up 4.7 per cent (excluding petrol) in the first-quarter, which was short of the 5.2 per cent rise expected by the market. The news dragged other retail stock lower including Carrefour, the French supermarket, down 1.4 per cent to €52.18. Celesio, the German pharmaceutical chain, eased 2.1 per cent to €47.54, Hermes International, the luxury goods group, was 2.1 per cent lower at €85.86 and Marks and Spencer, the UK retailer, slipped 2.6 per cent to 670½p. Thyssenkrupp was off 1.4 per cent to €45.20 on talk that the German engineering group was eyeing a move for either US Steel and Russia’s Severstal. However, Thales advanced 2.2 per cent to €45.58 despite confusion over the award a multi-billion dollar order to supply radios to the US navy. The French defence group insisted that it only a “potential supplier” to the US navy and the contract was “not a definitive contractual phase at this stage”. The FTSE Eurofirst 300 closed down 0.2 per cent, at 1,616.65 while the CAC 40 fell 0.3 per cent to 6,071.67 and the Xetra Dax ended flat at 8,033.52.

[Roland99]

37. 12:05pm - Lunchtime laziness

Dow 13,624.69 +11.71
Nasdaq 2,625.62 -0.98
S&P 500 1,531.52 -1.39
10 YR 5.12% -0.06
Oil $68.80 $-0.29
Gold $661.00 $1.10

[TrogL]

42. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2007-05-18 Friday, May 18 0.918864 USD
2007-05-21 Monday, May 21 0.921319 USD
2007-05-22 Tuesday, May 22 0.921319 USD
2007-05-23 Wednesday, May 23 0.924556 USD
2007-05-24 Thursday, May 24 0.922424 USD
2007-05-25 Friday, May 25 0.926441 USD
2007-05-28 Monday, May 28 0.926441 USD
2007-05-29 Tuesday, May 29 0.932923 USD
2007-05-30 Wednesday, May 30 0.929973 USD
2007-05-31 Thursday, May 31 0.934492 USD
2007-06-01 Friday, June 1 0.943218 USD
2007-06-04 Monday, June 4 0.945269 USD
2007-06-05 Tuesday, June 5 0.942951 USD
2007-06-06 Wednesday, June 6 0.944644 USD
2007-06-07 Thursday, June 7 0.942418 USD
2007-06-08 Friday, June 8 0.941442 USD
2007-06-11 Monday, June 11 0.942152 USD
2007-06-12 Tuesday, June 12 0.940203 USD
2007-06-13 Wednesday, June 13 0.937383 USD
2007-06-14 Thursday, June 14 0.935979 USD
2007-06-15 Friday, June 15 0.936505 USD
2007-06-18 Monday, June 18 0.932836 USD


Current values

Loonie:

Last trade 0.9362 Change +0.0039 (+0.42%)
Previous Close 0.9324 Open 0.9360
Low 0.9360 High 0.9360


Other combinations:

AS.M07 AUSTRALIAN $/CANADIAN $ Jun (NYBOT) 0.9035 +0.0047
AU.M07 AUSTRALIAN $/US$ Jun (NYBOT) 0.84140 +0.00155
RA.M07 EURO/AUSTRALIAN $ Jun (NYBOT) 1.59300 +0.00295
HY.M07 CANADIAN $/JAPANESE YEN Jun (NYBOT) 114.180 -0.285
RP.M07.E EURO/BRITISH POUND Jun (CME) 0.67655 -0.00085
EP.U07 EURO/CANADIAN $ Sep (NYBOT) 1.43945 +0.00920
EJ.U07 EURO/JAPANESE YEN Sep (NYBOT) 163.970 -0.355
EU.M07 EURO/US$ (LARGE) Jun (NYBOT) 1.34020 +0.00175


Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The September Canadian Dollar was slightly higher overnight due to short covering as it consolidates some of Monday's decline but remains below the 20-day moving average crossing at .9379. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Multiple closes below the 20-day moving average crossing at .9372 are needed to confirm that a top has been posted. If September renews the rally off February's low, weekly resistance crossing at .9525 is the next upside target. Overnight action sets the stage for a steady to higher opening in early-day session trading.

Analysis

Fine. I'll fess up. I usually only post when the loonie's going up, not down. Here I was hoping that it would rise straight up to par and we could get out the fireworks or something but then it started to slide and I got all depressed and then got busy at work, but I noticed it jumped a cent in the last hour so somethin' must be going on so I figured I'd post just to see the numbers for myself.

I sorted out why the blather jumped to September. I'm looking at a consolidated monthly chart and June's almost up so they've started averaging to September.

[ozymandius]

48. Last call for alcohol.

:beer: The invisible hand strikes again.

Dow 13,635.42 Up 22.44 (0.16%)
Nasdaq 2,626.76 Up 0.16 (0.01%)
S&P 500 1,533.70 Up 2.65 (0.17%)
10-Yr Bond 5.086% Down 0.056
NYSE Volume 2,873,592,000
Nasdaq Volume 1,954,338,000

4:25 pm : Tracking the major indices was a painstaking affair for most of the session as they followed summer form and traded in tight ranges. At the end of the day, though, the bulls were able to declare a victory in Tuesday's battle as the broader market squeaked out a modest gain.

General Electric (GE 39.29, +1.22) played a key role in the victory as it broke out to a 5-year high on more than twice its average daily volume. While we like GE's fundamental standing, the Dow component didn't share any specific news that would explain its positive showing. Accordingly, market observers were left to conclude that its strength was predicated on technical factors.

Whatever the reason, GE's mega-cap weighting helped lift the broader market; and it stood as a positive focal point that kept selling efforts in check.

The same can be said for the Treasury market which continued to recoup the losses it suffered that sent the yield on the 10-year note as high as 5.31% a week ago. Today the yield on the benchmark note hit 5.07%.

Setting aside those positive developments, there were some casualties in today's battle. Best Buy (BBY 45.18, -2.83) was the most prominent one following what can only be described as a disappointing second quarter earnings report.

The consumer electronics retailer fell 11 cents shy of the consensus EPS estimate of $0.50 and then issued guidance for the full year that was below the market's expectation.

Other fallen stocks included Leggett & Platt (LEG 22.08, -1.49) and Microchip Technology (MCHP 37.91, -3.74). Both companies issued disappointing guidance and paid the price as a result.

Yahoo! (YHOO 27.63, -0.49), meanwhile, was another notable laggard as investors expressed concerns about the company's competitive position following a management change that included the resignation of Terry Semel as CEO.

Led by GE and the airline stocks, the industrials sector (+0.97%) was the best-performing sector today. Conversely, consumer staples (-0.54%) was the worst-performing.

The May Housing Starts report came and went without causing much of a stir. The good news was that starts were down only 2.1% versus an expectation for a 3.5% decline. The bad news is that the data continue to point to a weak environment for starts. Separately, building permits increased 3.0% while the market was expecting a jump of 1.0%.

(Disclosure: Briefing.com has a business relationship with Yahoo!)DJ30 +22.44 NASDAQ +0.16 SP500 +2.65 NASDAQ Dec/Adv/Vol 1398/1621/1.92 bln NYSE Dec/Adv/Vol 1348/1923/1.43 bln