STOCK MARKET WATCH, Tuesday November 20

[UpInArms]

Source: du

STOCK MARKET WATCH, Tuesday November 20

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 428 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2499 DAYS
WHERE'S OSAMA BIN-LADEN? 2221 DAYS
DAYS SINCE ENRON COLLAPSE =21820
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 November 19, 2007

Dow... 12,958.44 - 218.35 (1.66%)
Nasdaq... 2,593.38 -43.86 (1.66%)S&P 500... 1,433.27 -25.47 (1.75%)
10-Yr Bond... 4.079% +0.071
Gold future... 778.00 +1.50





GOLD, EURO, YEN, Dollars and Loonie



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


(UIA - just filling in for Ozy!)

Read more: du

[UpInArms]

1. Today's Market WrapUp: Capitalism: Derailed, Dumbed-Down or Deceased?

When the Berlin Wall fell back in November 1989, many in the west looked upon the event as being symbolic of the triumph of Capitalism over Communism. Remember the warm and fuzzy feeling?

Our collective attention, albeit for a brief moment, was redirected toward the great debate of how the peace dividend would be spent.

The peace dividend is a political slogan popularized by US President George H.W. Bush and UK Prime Minister Margaret Thatcher in the early 1990s, purporting to describe the economic benefit of a decrease in defense spending.

<snip>

...a significant chunk of Federal spending is so far "Off Balance Sheet" that it would make the CFO of Enron blush. Its not just the war in Iraq funded via special legislation; The other major expense is FEMA. This "Emergency" spending on an ad hoc basis makes the deficit appear smaller than it really is.

...more...

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

[Dr.Phool]

2. Slept in today, huh?

:evilgrin:

[Dr.Phool]

3. Now I see why.

Good morning!

[UpInArms]

4. Ozy's connection went down again last night

so you'll have to make do with who you have!

[burf]

5. Good morning UpInArms

Thank you for standing in for Ozy. You work is most appreciated.

[Dr.Phool]

12. Glad you're filling in.

I didn't know what to do with my morning coffee for a while.

[Ghost Dog]

15. Thanx UiA.

I was looking at doing it myself again today, but I seem to have misplaced the basic layout & links Ozy had sent me (had to migrate to a new machine recently) - so I had just started to look at reformatting the html from yesterday's page...

So this is a relief. :hi:

[Warpy]

54. Thank you

It's a rotten job, and I'm glad somebody's doing it.

How else would a rank amateur like me have avoided getting fleeced over the last couple of years?

Much appreciated, both of you!

[Nictuku]

6. Thank You!

I'm a lurker. I just want to pipe in here to say how much I appreciate this thread daily as I'm just learning about the world of finance. And I hate math.

'Thank You' to all contributors to this daily thread.

[UpInArms]

7. dollar watch

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

Last trade 75.378 Change -0.408 (-0.54%)

US Fed: Futures Price In A 96% Chance Of A Rate Cut - Are The Markets Wrong?

http://www.dailyfx.com/story/topheadline/US_Fed__Futures_Price_In_1195557763232.html

Many FOMC members have made a point of signaling no intention of cutting rates again in the near-term, as record high oil prices significantly raise inflation risks in the economy. However, the markets appear to be trying to force the bank’s hand as federal fund futures currently price in a 96 percent chance of a 25bp rate cut in December. With less than a month until Bernanke & Co. convene again, they are working the press overtime to convince investors that they don’t have to make policy more accommodative. Will the markets buy it and cut back speculation of a rate cut? Furthermore, can it revive the beleaguered US dollar? After Tuesday’s release of the October FOMC minutes, we may finally get our answer:

Ben Bernanke, Federal Reserve Chairman (Voting Member)

“The goal is for Fed officials to provide the public with greater and more timely insight into the Federal Open Market Committee's views of the economic outlook and the risks to that outlook.” – November 14, 2007

Randall Kroszner, Federal Reserve Governor (Voting Member)

“In sum, in September and again in October, I believed that achieving the FOMC's statutory mandate to promote price stability and maximum employment would best be accomplished by lowering the target federal funds rate. With those actions, however, the downside risks to economic growth now appear to be roughly balanced by the upside risks to inflation. I would add that the limited data and information received since the October FOMC meeting have not changed my thinking in this regard.” – November 16, 2007

Richard Fisher, Federal Reserve Bank of Dallas President (Alternate Voting Member)

“Too many people think we are preoccupied with economic growth at the expense of doing our job on the inflation rate. We are not. There is as yet no indicator that the economy is falling off the table.” – November 14, 2007

“I find that there is greater symmetry of risk between growth and inflation than is commonly surmised. Our concern about inflation at the Dallas Fed stems from two more pervasive sources -- food and energy, where we foresee a risk of a more pernicious pass-through effect than we saw in the recent price increases of underlying commodities…A spread of the current magnitude between food price inflation and the core index occurred on several occasions between 1957 and 1980. But we have not seen it in a quarter century.” – November 14, 2007

Thomas Hoenig, Federal Reserve Bank of Kansas City President (Voting Member)

“I am not at all opposed to necessary actions either way for the future…Right now I am in a wait-and-see mode, at least until the December meeting…If the data comes forward in a weaker form…then I think it would require an action on the Federal Reserve to offset that. On the other hand, if these strong factors carry forward, and they have in past financial crisis, we have to be mindful of that as well.” – November 15, 2007

“While we in no way want the economy to slip into a slower-growth environment, we also want to be careful that we follow the dual mandate and watch our inflation numbers as well…Inflation doesn't increase in big jumps. It increases in little steps…Food and energy are increasing and they are an important part of every consumer's budget, and I think that's a factor that we can't lose sight of.” – November 15, 2007

...more...

Dow Drops 200 Points, Dollar Strengthens and Carry Trades Resume Weakness

http://www.dailyfx.com/story/bio1/Dow_Drops_200_Points__Dollar_1195512794972.html

The US dollar is up across the board but that strength is more of a reflection of rising risk aversion than a rosier outlook for the US economy. Stocks are down over 200 points, bond yields have plummeted, carry trades resumed their weakness and gold prices are off one percent. This cohesive price action reflects a market that believes the Federal Reserve will lower interest rates by another 25bp next month. In fact, rate cut expectations have increased to 100 percent today from 90 percent on Friday. Investors continue to be worried about the housing market and the banking sector after Goldman Sachs downgraded Citigroup stock to sell. The 2 year US swap spread also jumped to levels last seen in 1989, leading us to wonder if the latest rise in risk aversion will be as bad the one in August. The rise in the swap spread indicates that concerns about credit and funding have returned. Although we still have over 3 weeks before the next FOMC meeting, if rate cut expectations stay at present levels, the Federal Reserve may have no choice but to bow to market pressures by lowering interest rates once again. They may actually need to do so if the holiday shopping season proves to be as tough as some analysts expect. The NAHB housing market index remained unchanged for the month of November which is the first time in 9 months that the index did not deteriorate. It is still premature to assume that the housing market has bottomed. Housing starts and building permits are due for release tomorrow, unless we have a big rebound, the sector remains vulnerable to further losses. Meanwhile we are also expecting the minutes from the October 31st monetary policy meeting. It will be interesting to see if the Fed’s decision to lower rates was a reluctant one. Given Bernanke’s greater concern about growth than inflation last week, hawkish minutes may actually not be market moving.

...more...

[Ghost Dog]

13. FOREX-Dollar hits record lows vs euro, Swiss franc

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=urn:newsml:reuters.com:20071120:MTFH05822_2007-11-20_09-08-32_L20710910&pageNumber=1&imageid=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage1

The dollar fell below 1.1100 Swiss francs to a record low <CHF=>. It was down half a percent against a basket of six major currencies by 0823 GMT at 75.435 <.DXY>.

"Adding to the short squeeze (in stocks and higher-yielding currencies) were unsubstantiated rumours of an inter-meeting/emergency Fed rate cut today," RBC Capital Markets said in a research note. The U.S. central bank has already lowered its fed funds rate by a total of 75 basis points at its last two meetings to 4.50 percent. Investors had been braced for another cut in December and more to come in 2008 as the Fed tries to prevent troubles in the housing and financial sector from slowing the wider economy.

/...

Watch on Swiss Franc (CHF), Pound Sterling (GBP)

[Ghost Dog]

41. Gulf fears, housing send dlr to record low vs euro

http://www.reuters.com/article/marketsNews/idINN2058527120071120?rpc=44
Tue Nov 20, 2007 9:53am EST

NEW YORK, Nov 20 (Reuters) - The dollar fell to record lows against the euro and Swiss franc on Tuesday, hit by weak U.S. housing data and speculation that Middle East oil exporters may ditch or revalue their dollar pegs to combat rising inflation.

The low-yielding yen also fell as a rebound in global stocks perked up demand for higher-yielding currencies, while the euro pushed above $1.48 and was on track for its biggest daily gain against the greenback in year.

Earlier market talk of an emergency Federal Reserve interest rate cut also weakened the already battered dollar.

The Fed's next scheduled policy meeting is on Dec. 11 and markets widely expect a quarter percentage point cut to the 4.50 percent benchmark federal funds rate.

The dollar, already under pressure heading into the data release, slipped to a record low against the euro after a government report showed construction permits for new homes fell by 6.6 percent in October to the lowest in 14 years.

"The housing market in the United States is still weak and nothing in these numbers is encouraging people to think otherwise," said Firas Askari, head currency trader at BMO Capital Markets in Toronto.

The euro rose to a record high of $1.4813 <EUR=>, according to Reuters data, up nearly 1 percent on the day. If that gain holds, it would be its best since Nov. 23, 2006. It last traded up 0.9 percent at $1.4799.

/...

[Ghost Dog]

19. U.S. Dollar Could Plunge 90 Percent

http://www.hispanicbusiness.com/news/newsbyid.asp?id=82693&cat=Business+News&more=%2Fnews%2Fmore%2Dbusiness%2Dnews%2Easp

RHINEBECK, N.Y. -- A financial crisis will likely send the U.S. dollar into a free fall of as much as 90 percent and gold soaring to $2,000 an ounce, a trends researcher said.

"We are going to see economic times the likes of which no living person has seen," Trends Research Institute Director Gerald Celente said, forecasting a "Panic of 2008."

"The bigger they are, the harder they'll fall," he said in an interview with New York's Hudson Valley Business Journal.

Celente -- who forecast the subprime mortgage financial crisis and the dollar's decline a year ago and gold's current rise in May -- told the newspaper the subprime mortgage meltdown was just the first "small, high-risk segment of the market" to collapse.

Derivative dealers, hedge funds, buyout firms and other market players will also unravel, he said.

Massive corporate losses, such as those recently posted by Citigroup Inc. and General Motors Corp., will also be fairly common "for some time to come," he said.

He said he would not "be surprised if giants tumble to their deaths," Celente said.

The Panic of 2008 will lead to a lower U.S. standard of living, he said.

A result will be a drop in holiday spending a year from now, followed by a permanent end of the "retail holiday frenzy" that has driven the U.S. economy since the 1940s, he said.

/.

[Demeter]

51. Well, That's Certainly The Worst Possible Scenario

How hard are people going to work to see that it isn't the most likely scenario?


Uh-huh. Okay, gold it is!

[Ghost Dog]

20. Chavez says "empire of dollar is crashing"

http://investing.reuters.co.uk/news/articlenews.aspx?rpc=401&type=worldNews&storyID=2007-11-19T151546Z_01_DAH947994_RTRUKOC_0_UK-IRAN-CHAVEZ-DOLLAR.xml
Mon Nov 19, 2007 3:15 PM GMT

TEHRAN (Reuters) - Venezuelan President Hugo Chavez said on Monday the "empire of the dollar is crashing", a day after his country and anti-U.S. ally Iran advocated action over the weakening U.S. currency during an OPEC summit in Riyadh.

Chavez, who on Saturday said oil prices could double to $200 per (97 pounds) barrel if the United States attacks Iran over its disputed atomic ambitions, spoke to reporters after talks with his Iranian counterpart Mahmoud Ahmadinejad in Tehran.

The two leaders agreed to set up a joint Iranian-Venezuelan bank and also signed deals to boost cooperation in the oil, petrochemical and industry sectors, Iranian media reported without giving details about the accords.

Ahmadinejad -- whose country is under banking and other international sanctions over its nuclear programme -- on Sunday called the U.S. dollar a "worthless piece of paper" and Chavez took a similar line on Monday.

"Soon we will not talk about dollars because the dollar is falling in value and the empire of the dollar is crashing," Chavez said in comments translated into Farsi from Spanish.

"Naturally, by the crash of the dollar, America's empire will crash," Chavez said at a joint news conference with Ahmadinejad. The two presidents share the same viewpoint in denouncing U.S. influence in the world.

The final statement of the oil cartel's November 17-18 summit did not include any reference to the falling dollar, in an apparent victory for U.S.-allied moderates led by Saudi Arabia.

/...

[Ghost Dog]

21. Iran virtually free of dollar in oil revenues

http://www.tradearabia.com/news/newsdetails.asp?Sn=INTBIZ&artid=134256

Iran has effectively cut all ties with the dollar when it comes to oil revenues, a top Iranian oil official said.

For nearly two years, Opec's second biggest producer has been reducing its exposure to the dollar, saying the weak US currency is eroding its purchasing power. Tehran is now fetching roughly $87 a barrel on daily crude sales of 2.4 million.

'This is an economic decision and we've been proven right. Over time the dollar has got weaker and weaker,' Hojjatollah Ghanimifard, international affairs director of the state owned National Iranian Oil Company (NIOC) said.

'On a macro-economic level, nearly all of Iran's crude oil sales are now being paid for in non US currencies.'

Ghanimifard said less than 20 per cent of Iran's oil export earnings are in yen and the rest in euros.

He explained that NIOC is receiving more than 80 percent of its payment for crude in currencies other than the dollar.

The remainder is settled in euros through a long-standing clearing arrangement between Iran's Central Bank and various Asian governments.

Iran presented its economic case against the dollar at an Opec heads-of-state summit in Riyadh at the weekend.

The Islamic Republic and Venezuela made clear before and after the summit they would press for action, which could include pricing oil in a basket of currencies.

'If there is a decision to do that, it would be a very easy procedure between the buyer's and seller's banks,' said Ghanimifard.

About 60 per cent of Iran's overall crude sales are destined for Asia, with the remainder moving mostly into Europe and Africa. The US has banned imports of Iranian crude since 1995. Reuters

/.

[Ghost Dog]

22. Saudi eyeing first revaluation in 21 years

http://www.arabianbusiness.com/504429-saudi-eyeing-first-revaluation-in-21-years

Saudi Arabia may be reluctantly considering its first riyal revaluation since 1986 to address concern among Gulf Arab neighbours about the region's peg to the tumbling dollar, al-Riyadh newspaper quoted an official of the regional economic bloc as saying.

"Saudi Arabia might have started a study to change the riyal's exchange rate but it probably does not want to officially announce these studies to avoid creating concern in markets until a final decision is made," the paper said, citing Abdul-Aziz al-Uwaisheg, head of studies and economic integration at the Gulf Cooperation Council General Secretariat.

"There is a clear divergence over this issue, but on the other hand there is a common desire from everybody to revalue and shift to a currency basket," Uwaisheg said, according to the paper.

/...

[Ghost Dog]

23. UAE council chief piles on dollar-peg pressure

http://www.arabianbusiness.com/504341-uae-council-chief-calls-for-dollar-peg-review?ln=en

The United Arab Emirates and other Gulf oil producers need to reconsider their pegs to the dollar now, the head of the UAE's Federal National Council, which advises the government on laws, said.

"Now is the time to reconsider whether it's viable to continue to peg the local currency to the dollar," Abdul-Aziz al-Ghurair told reporters on the sideline of a conference in Dubai.

"There should be an agreement on the level of the Gulf countries to reconsider the peg collectively and not individually."

/...

[Ghost Dog]

24. Eurogroup watching currency markets closely-Juncker

http://www.reuters.com/article/bondsNews/idUSL20391720071120?rpc=401&

BRUSSELS, Nov 20 (Reuters) - Euro zone finance ministers deplore sudden currency movements and are watching foreign exchange markets closely, Eurogroup chairman Jean-Claude Juncker said on Tuesday.

"We are adding something to our credo and that is that now we want to say that we deplore sudden changes in exchange rates, and we will be keeping a very watchful eye on the situation," he told a European Parliament committee.

Juncker, who is Luxembourg prime minister as well as chairman of the group of euro zone finance ministers, was speaking on a day when the euro rose to a record high of $1.4766 <EUR=>.

Juncker said the European Central Bank was responsible for monetary policy and did not work on the basis of an exchange rate target. "That does not mean we should not think hard about current exchange rates," he told the committee.

The Eurogroup chairman praised what he called a change in tone by U.S. Treasury Secretary Henry Paulson, who had twice said this week that a strong dollar was in the interests of the whole United States economy.

"In the past, he would usually say that financial markets dictate how to go about things. But now he's changed his tune and he says that the financial markets will take into account the basic economic data, and I would say that this is a change in rhetoric which is noteworthy and praiseworthy," Juncker said.

Juncker will lead an unprecedented euro zone delegation to China next week with ECB President Jean-Claude Trichet and EU Economic and Monetary Affairs Commissioner Joaquin Almunia to urge Beijing to revalue its currency.

/..

[UpInArms]

45. In Europe, weak dollar wrecks Americans' dreams

http://www.reuters.com/article/newsOne/idUSL1262142820071119?sp=true

BERLIN (Reuters) - Andrew Curry once loved going out for dinner and drinks in Berlin, feeling far wealthier in the German capital than he did at home in the United States.

With the dollar now worth about 20 percent less than when he first arrived in 2005, the 30-year-old freelance journalist has a leaner lifestyle.

"I used to be able to brag that Berlin was really affordable but now my rent actually works out on par with Washington and New York. It's pretty terrible," said Curry, whose income is almost exclusively in the devaluing currency.

"I do everything to try to spend fewer euros now."

The weak dollar and recent tax laws are hurting many of the 350,000 or so Americans who live in the European Union, especially those who are paid in dollars.

It is being felt by students, professionals and pensioners in Berlin, Paris and London -- where the dollar is at a 26-year low against sterling and, according to a Reuters poll, expected to stay above $2 to the pound for the next six months.

...more...

[TalkingDog]

8. Adding a Thanks and a Rec. n/t

My Favorite Master Artist: Karen Parker GhostWoman Studios

[AnneD]

52. Morning Marketeers......

:donut: and all you long time lurkers that are popping in now. Today is the last day (and a 1/2 day at that) and we go on break. So before we scatter to the four winds I wish to say.....

I am thankful for the efforts of everyone to keep this thread going. It takes a lot of positive energy, and at times it is hard-but the benefits far out weigh the inconveniences. It is a joy to start my morning with a cup of my favourite joe and this thread. I learn so much and have personally and fiscally profited from the words of wisdom that are freely given.

I am thankful for my wonderfully crazy, sometimes dysfunctional family. Sometimes they are a pain in the butt...yet when the chips are down-I know they are the first to lend a hand. What I sometimes see as meddling is really caring, concern, and above all, love.

I am thankful for what I have and what I have been blessed with. I have a great husband that at times may drive me crazy-always makes my life interesting and loves me warts and all.

I am blessed with a beautiful, sweet, smart, funny, daughter. No one can keep me in stitches like she can. I like to see the world through her new eyes. It makes me feel young again and gives me hope.

I am blessed with more friends than I have a right to expect. And these are the good kind of friends...the kind that would post bail in the middle of the night (or be sitting next to me in the same cell):evilgrin:

I have been generously blessed with plenty of food, clean sweet water, and shelter. It may not seem like much to some, but I sleep well at night-free from the burdens that most people bear.

I am grateful that in my life time, I have seen a large portion of the world, met with people in other cultures in the most intimate of places-their homes. Because I have done this-I am thankful for the understanding this has given me.

So, I wish all of you a wonderful Thanksgiving and hope that you too are so blessed. Never lose sight of what is really important in life.

Happy hunting and watch out for the bears.

[UpInArms]

67. hear! hear!

:grouphug:

[Hugin]

79. Thirded!

:grouphug:

[Ghost Dog]

9. GLOBAL MARKETS-Fed in focus as credit fears spread

http://www.reuters.com/article/marketsNews/idINL2069817220071120?rpc=44

LONDON, Nov 20 (Reuters) - World stocks put in modest gains on Tuesday and the dollar fell sharply, hitting new record lows against the euro and Swiss franc, as speculation swirled that the U.S. Federal Reserve would meet to cut interest rates.

But fears of further fallout from the credit crisis rocked European shares when trading in investment bank UBS (UBSN.VX: Quote, Profile, Research) was briefly suspended as the stock fell on concerns over its exposure to subpime loans.

Trading in Insurer Swiss Re (RUKNVX: Quote, Profile, Research) was also suspended. It announced a $1.07 billion write down on Monday.

Credit fears have come back with a vengeance this week, dragging stocks sharply lower on Monday after Goldman Sachs told clients to expect $15 billion or more in write-offs from Citigroup (C.N: Quote, Profile, Research) as a result of mortgage losses.

This led to speculation on Tuesday that the Fed would hold an emergency meeting to cut rates. Although unsubstantiated, it gained momentum in markets and was cited in broker reports.

One result was to lift global stocks. MSCI's main world index (.MIWD00000PUS: Quote, Profile, Research) was up 0.3 percent after losing around 1.7 percent a day earlier. Emerging market stocks (.MSCIEF: Quote, Profile, Research), however, fell.

European shares opened higher, fell sharply after the UBS news, then recovered slightly despite general anxiety about banks.

/...

[Ghost Dog]

16. Japan Stocks Rise on Speculation Declines Weren't Justified

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

Nov. 20 (Bloomberg) -- Japanese shares rose, reversing earlier losses, on speculation this month's 10 percent declines for the Nikkei 225 Stock Average and Topix index didn't reflect future earnings prospects.

Mitsui & Co., which lost a fifth of its value in November, led a rebound by trading companies.

Japanese shares are the cheapest in 33 years, Goldman, Sachs & Co. said in a report last week. Indexes have fallen even further since then, partly on concern losses on subprime mortgage investments and tighter credit will hurt the overall U.S. economy.

``Japan won't be able to escape the U.S. slowdown, but there's very little chance earnings will be as bad as current prices indicate, so shares are cheap,'' said Masanori Ikunaga, who helps manage $4.1 billion at Sumitomo Mitsui Asset Management Co. in Tokyo.

The Nikkei 225 Stock Average climbed 168.96, or 1.1 percent, to 15,211.52 at the close of trading in Tokyo. The Topix index rose 12.66, or 0.9 percent, to 1,469.27, paring a drop of as much as 2.5 percent.

/...

[Ghost Dog]

17. Hong Kong's Stock Index Rises; China Mobile, Cnooc Lead Gains

http://www.bloomberg.com/apps/news?pid=20601089&sid=aoYkbXsIUC9I&refer=china

Nov. 20 (Bloomberg) -- Hong Kong's Hang Seng Index rose, halting a three-day decline. China Mobile Ltd. led gains after announcing it added record new subscribers in October.

Cnooc Ltd. led oil producers higher after crude prices climbed. Shares earlier fell on renewed concern losses tied to the U.S. subprime market will increase, slowing growth in the world's largest economy, after Goldman, Sachs & Co. recommended investors sell shares of Citigroup Inc.

The Hang Seng Index added 311.04, or 1.1 percent, to 27,771.21, halting a three-day, 5.9 percent decline. The measure earlier dropped as much as 3.9 percent.

``Is subprime going to drag the U.S. economy into recession? I don't think so,'' said Mona Chung, who helps manage $2.5 billion at Daiwa Asset Management Ltd. in Hong Kong. ``Every time China Mobile's subscription numbers come out, the stock responds in a positive way. Besides some shares have already dropped to very attractive levels.''

The Hang Seng China Enterprises Index, which tracks 43 so- called H shares of Chinese companies listed in Hong Kong, rose 2 percent to 16,867.38.

``Hong Kong stocks were oversold in the morning, triggering a rebound after lunchtime,'' said Steven Leung, a Hong Kong-based director of institutional sales at UOB-Kay Hian Ltd. ``Investors expect liquidity in the market will remain strong.''

/...

[Ghost Dog]

18. Indian shares provisionally end 1.7 percent down

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20071120:MTFH06890_2007-11-20_10-04-47_BMA000260&type=comktNews&rpc=44

MUMBAI, Nov 20 (Reuters) - India's benchmark share index provisionally closed 1.7 percent down on Tuesday, led by losses in Reliance Industries Ltd (RELI.BO: Quote, Profile , Research) and Infosys Technologies Ltd (INFY.BO: Quote, Profile , Research).

The 30-share BSE index <.BSESN> provisionally fell 340.05 points to 19,293.31, with 25 components in the red.

The broader NSE index <.NSEI> provisionally ended 2 percent down at 5,789.30.

/.

[UpInArms]

10. Today's Reports a-plenty:

Nov 20 8:30 AM
Building Permits Oct
-
briefing.com predicts NA
market expects NA
last 1226K
revised -

Nov 20 8:30 AM
Housing Starts Oct
-
briefing.com predicts 1200K
market expects 1175K
last 1191K
revised -

Nov 20 8:30 AM
Building Permits Oct
-
briefing.com predicts 1210K
market expects 1200K
last 1261K
revised -

Nov 20 2:00 PM
FOMC Minutes Oct 31

[UpInArms]

11. U.S. Oct. housing starts down 16.4% year-on-year

04. U.S. Oct. housing starts down 16.4% year-on-year
8:30 AM ET, Nov 20, 2007 - 1 minute ago

05. U.S. Oct. housing starts rise as multifamily sector rebounds
8:30 AM ET, Nov 20, 2007 - 1 minute ago

06. U.S. Oct. housing starts stronger than 1.17 mln expected
8:30 AM ET, Nov 20, 2007 - 1 minute ago

07. U.S. Oct housing starts up 3.0% to 1.23 mln
8:30 AM ET, Nov 20, 2007 - 1 minute ago

[JNelson6563]

14. Thank you UIA

Much appreciate you filling in dear. Great toon, soooo true!

Well it looks like the casinos are ready for a wonderful day. If I were to see yields on Treasuries increase dramatically I would then believe it's for real. Until then I will consider it a clever illusion.

Julie

[Buttercup McToots]

25. Rumors abound around the net of an emergency Fed meeting

They are really worried about this mornings reports...
Don't know if it's true, but everyone is wondering if there may be
an emergency rate cut...

Thanks UIA's ...This is my first start of the day...:)

[Hugin]

28. What emergency?

:shrug:

Things are going swimmingly! :sarcasm:

[kineneb]

57. maybe the article you posted was right

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3070771
post#17
(I printed it out to save.)

Nov.19, 2007...hmmmmm.
Next question: Is it all downhill from here?

[Buttercup McToots]

26. USD $75.30...@ 9:09 am to start the day...

:donut:

[Buttercup McToots]

30. USD $75.26...@ 9:39 am

:popcorn:

[Buttercup McToots]

27. 'Spectacular Trial' Is Seen in Case of Liberty Dollar"

November 19, 2007 Edition > Section: National

'Spectacular Trial' Is Seen in Case of Liberty Dollar
BY JOSEPH GOLDSTEIN - Staff Reporter of the Sun
November 19, 2007
URL: http://www.nysun.com/article/66642

The monetary gadfly behind the Liberty Dollar, Bernard von NotHaus, declared over the weekend that he expects to be criminally charged over his currency and is vowing "a spectacular trial" that will "put this country's monetary system on trial."

Mr. von NotHaus was interviewed by The New York Sun via telephone on Saturday following disclosures that the Liberty Dollar, a gold- and silver-based currency marketed by anti-government activists as an alternative to the greenback, drew the federal government's scrutiny because the coins resembled official currency produced by the U.S. Mint.

After a two-year undercover investigation of the currency, federal agents last week raided the Idaho mint where the Liberty Dollar was produced and the Indiana offices that served as its marketing headquarters. Tens of thousands of gold, silver, and copper coins were seized, including a special edition bearing the image of a Republican presidential candidate, Rep. Ron Paul, a supporter of the gold standard. It is the standard edition of the Liberty Dollar, which features a profile of a crowned Lady Liberty as well as the lettering USA and "Trust In God," which federal authorities say is illegal.

These symbols and language are similar enough to coinage from the U.S. Mint that the Liberty Dollars "are easily confused with legitimate United States Currency," a purported affidavit apparently filed last week in support of the search warrant claims.

The apparent affidavit was posted on the Internet on Friday by the libertarian think tank, the Reason Foundation. A spokeswoman for the U.S. attorney's office in Charlotte, N.C., told the Washington Post that a court clerk had mistakenly made court documents in the case public.

Signed by an FBI special agent, Andrew Romagnuolo, the affidavit says the Liberty Dollar operation was in essence a counterfeiting operation motivated by an ideological desire to undermine American currency and to make a profit. The affidavit claims there is probable cause to believe Mr. von NotHaus, along with his office manager and a North Carolina retailer of the coins, had conspired to pass off the Liberty Dollar as government currency.

Mr. von NotHaus, a critic of the Federal Reserve who retired from a career at a private mint in Hawaii, denied introducing the Liberty Dollar for personal gain. He said the Federal Reserve is pursuing a ruinous and unconstitutional monetary policy, and is recommending his currency as being inflation-resistant.

"I never took a penny during the first five years and got only a small amount of gratuity over the past five years," he said.

He declined to say exactly how much money he had made from the Liberty Dollar.

Financial statements from the operation were not immediately available. But in 2001, when Mr. von NotHaus put an ad in the Liberty Dollar's newsletter for an executive director to take over his duties, he promised a salary of "well over $5000 cash per month, no withholding."

The Liberty Dollar, which has been produced since 1998, has more than $20 million in circulation across the country. Coin enthusiasts and libertarians who support the venture have convinced a variety of retailers to accept the medallions, sometimes by offering it to them at slightly less than face value.

One longtime Liberty Dollar supporter says the venture is largely a failure.

"It never did do what the organization really wanted it to do — become widely accepted as a medium of exchange," a Liberty Dollar distributor in Michigan who is mentioned in the affidavit, Ron Goodger, said by telephone. "It's a tremendous amount of work to get the public to accept something it wasn't familiar with."

Liberty Dollars are circulated across the country through regional agents such as Mr. Goodger, who get to purchase the coinage at a slightly discounted rate. According to the affidavit, the FBI has managed to sign three undercover employees to sign up as Liberty Dollar agents. The investigation began in July 2005 and lasted until this month, according to the affidavit.

The affidavit includes details such as how at informational sessions intended to drum up interest in the currency — called Liberty Dollar University — attendees could buy shirts with the wording "The US Mint can bite me."

Based on the up-close view of how Liberty Dollars are distributed, the FBI alleges that "a multi-level marketing scheme" was in place whose main purpose is to enrich those involved in distributing the coins.

The heart of that charge is that Liberty Dollars are sold for slightly more than the value of the silver and gold inside of the coin. Until recently, the silver ounce Liberty Dollar was marketed at $20, several dollars above silver's spot price. And Mr. von NotHaus was in the process of revaluing it at $50 a piece, according to the affidavit.

What the affidavit describes as a "scheme," Mr. von NotHaus defends as sound economic policy.

"It's the only way the Liberty Dollar could perform. Doesn't it make sense that as the underlying commodity appreciates in value, the purchasing power should appreciate in value?" Mr. von NotHaus said. "They're really just opposed to my economic theory. Where's the fraud?"

A 1999 report by the Southern Poverty Law Center said that many of the participating merchants "are run by men and women connected to the radical right."

Mr. Goodger described the supporters of the currency as "concerned people who believe our government is out of control."

Mr. Goodger said that as far as he knew no one connected to distributing the currency advocated armed resistance against the federal government.

"In the end all the organization is doing is getting precious metals out there in the hands of the people, and that's something that's got to be done," he said.

"It's a peaceful operation," the office manager for currency operation, Sarah Bledsoe, said by telephone. "We just want the government to give us a better currency, because what we have is not working. We don't want another Depression."

Ms. Bledsoe, who was present at the raid in Evansville, Ind., is named in the affidavit as part of the alleged conspiracy.

November 19, 2007 Edition > Section: National

http://www.nysun.com/article/66642?access=134021

[Demeter]

64. Thanks for Tracking This Fascinating Story!

It's VERY interesting!

[Viva_La_Revolution]

29. I think if the my Boss offers a Costco trip for XMas bonuses this year, I'll take him up on it.

Having several cases of canned food put by will make me feel a little better about all this news. :( a little anyway.

[Ghost Dog]

31. Oil rises above $95, US rate cut talk supports

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20071120:MTFH12977_2007-11-20_14-09-54_SP254531&type=comktNews&rpc=44
Tue Nov 20, 2007 9:10am ET

LONDON, Nov 20 (Reuters) - Oil rebounded from early lows to trade above $95 a barrel on Tuesday, boosted by recovering stock markets after talk of another cut in U.S. interest rates to help economies navigate the credit crisis.

The dollar fell to fresh record lows against the euro as talk of an emergency U.S. rate cut by the Federal Reserve, possibly as early as Tuesday, swirled in financial markets, boosting oil whose inverse relationship with the U.S. currency has become more pronounced in recent weeks.

U.S. light crude for January delivery <CLc1> stood $1.10 higher at $95.74 a barrel by 1317 GMT after rising as high as $95.89, recovering from lows of $93.99 earlier in the session. Oil is still within sight of the record $98.62 record on Nov. 7.

London Brent crude <LCOc1> rose $1.20 to $93.45 a barrel.

"The critical question now is whether weaker global demand will cause the oil price to retreat or whether supply shortages mean that the oil price remains high despite softer demand," said Sebastian MacKay, senior economist at Scottish Widows Investment Partnership.

/...

(edited for emphasis).

[Hugin]

33. Gee, I thought this was all about those sub-prime deadbeats...

Why does everyone keep bringing up OIL? :eyes:

[UpInArms]

47. U.S. Energy Sec: not worried by OPEC dollar debate

http://www.reuters.com/article/businessNews/idUSL2027169620071120?feedType=RSS&feedName=businessNews

LONDON (Reuters) - U.S. Energy Secretary Sam Bodman said on Tuesday the United States was not concerned about the debate within OPEC on whether it should seek an alternative to the dollar in pricing oil.

Bodman also told reporters that OPEC should increase output at its next meeting in Abu Dhabi in December.

The slump in the U.S. currency to record lows on global markets this month has hit export revenues of oil exporters because oil is priced in dollars.

This has prompted calls from Iran and Venezuela at an OPEC heads of state summit in Riyadh at the weekend that the oil exporting group drop the dollar and price oil against a basket of currencies instead.

Asked whether this discussion in the Organization of the Petroleum Exporting Countries was giving the United States cause for concern, Bodman said: "No."

...more...

[AnneD]

75. I call....

Bull Shit. I bet they are washing out their underware as we speak.:smoke:

[Ghost Dog]

32. N.Y. gold jumps 2 pct above $790/oz on dollar, oil

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20071120:MTFH12841_2007-11-20_14-05-09_N20574236&type=comktNews&rpc=44
Tue Nov 20, 2007 9:05am ET

NEW YORK, Nov 20 (Reuters) - Gold futures in New York rebounded 2 percent early Tuesday as the dollar tumbled to an all-time low against the euro and crude oil climbed.

At 8:59 a.m. EST (1359 GMT), most-active gold for December delivery <GCZ7> on the COMEX division of the New York Mercantile Exchange rallied $16 or 2.1 percent to $794.00 an ounce.

COMEX December silver contract <SIZ7> tracked gold to rise 41 cents or 2.9 percent to $14.57 an ounce.

/.

[Ghost Dog]

34. Goldman paints bleak picture for housing, financials

http://yahoo.reuters.com/news/articlebusiness.aspx?type=ousiv&storyid=47232%2020-Nov-2007%20RTRS&WTmodLoc=HybArt-R3-MostViewedBiz-1&from=business

NEW YORK, Nov 20 (Reuters) - Goldman Sachs issued a gloomy report on the U.S. financial services sector, saying housing prices are likely to fall a lot further, write-downs will mount and some mortgage insurers and guarantors will be forced to raise capital just to survive.

Falling house prices and a worsening economy will drive down securities based on residential mortgages, especially those given to borrowers with the riskiest credit, Goldman Sachs financial analysts Lori Appelbaum, Thomas Cholnoky, James Fotheringham and William Tanona, wrote in a lengthy report released on Monday.

Meanwhile, the value of collateralized debt obligations -- bonds based on pools mortgages -- related to those subprime mortgages, could fall another $150 billion across the industry, the bank said.

That's on top of the $18 billion financial firms globally wrote down in the third quarter and the $22 billion that some companies have indicated they expect in the fourth quarter.

...

Inevitability, certain financial guarantors and mortgage insurers will need to raise capital to shore up their balance sheets. The Goldman analysts said these companies will fall into two groups, the desperate -- those which will face the risk of going out of business if they don't raise capital -- and the needy -- those that could employ other means to do so, such as cutting dividends.

Goldman lists financial guarantors MBIA Inc (MBI.N: Quote, Profile , Research), Ambac Financial Group Inc, Security Capital Assurance Ltd (SCA.N: Quote, Profile , Research) and Assured Guaranty Ltd (AGO.N: Quote, Profile , Research) as the desperate. It lists Citigroup Inc, Washington Mutual Inc (WM.N: Quote, Profile , Research), First Horizon National Corp (FHN.N: Quote, Profile , Research) and National City Corp (NCC.N: Quote, Profile , Research) in the "needy" column.

/...

[UpInArms]

35. Freddie Mac loses $2B, seeks new capital

http://news.yahoo.com/s/ap/20071120/ap_on_bi_ge/earns_freddie_mac

WASHINGTON - Freddie Mac set aside $1.2 billion in the third quarter to account for bad home loans and posted a $2 billion loss Tuesday, prompting the nation's second largest guarantor of home mortgages to seek additional sources of capital.

Losses widened from $715 million last year during the same period, sending shares tumbling nearly 13 percent, or $4.70 to $32.80 in pre-market trading.

Freddie Mac said it made the provision for credit losses in the July-September period because of defaults on home loans, which "reflects the significant deterioration of mortgage credit."

The $2 billion loss for McLean, Va.-based Freddie Mac worked out to $3.29 a share, compared with $1.17 a share, in the third quarter of 2006.

Losses far exceeded Wall Street analysts expectations of a 22 cent per share loss, according to a poll by Thomson Financial.

...more...

[DemReadingDU]

36. Roubini: Global Recoupling Rather than Decoupling

11/20/07 Global Recoupling Rather than Decoupling as the US Heads towards a Recession Nouriel Roubini

Now that the risk of a US hard landing – recession – has become very high the debate on whether the rest of the world can decouple from this US hard landing is returning.

In my view this debate on decoupling (this writer argued against the decoupling hypothesis already in mid 2006) is partly semantic: those who argued for a decoupling always did so conditional on the view that the US would experience a soft landing; and I would myself agree that, conditional on the US having a soft landing (i.e. growth below potential and ranging 1.5%-2.5% for a few quarters), there was enough growth momentum in Europe, Asia, BRICs and other emerging markets that such US slowdown would not lead to much of a slowdown in the rest of the world. But, conditional on a US hard landing, almost no one believes that the rest of the world would decouple from such a hard landing: this does not mean that the rest of the world would experience, like the US, a recession; it rather means that a US recession will lead to a significant and serious slowdown of growth in the rest of the world.

more...
http://www.rgemonitor.com/blog/roubini/227885

[UpInArms]

37. H&R Block CEO Ernst resigns (tied to subprime mortgage losses)

http://news.yahoo.com/s/nm/20071120/bs_nm/hrblock_ceo_dc

NEW YORK (Reuters) - H&R Block Inc (HRB.N), the largest U.S. tax preparer, said on Tuesday that Chairman and Chief Executive Mark Ernst had resigned, following mounting losses tied to subprime mortgages.

Richard Breeden, 57, a former U.S. Securities and Exchange Commission chairman, was named chairman.

Alan Bennett, 57, who retired this year as chief financial officer of health insurer Aetna Inc (AET.N), was named interim chief executive.

Now an activist investor and principal at Breeden Capital Management LLC in Greenwich, Connecticut, Breeden won three seats on H&R Block's board in September, after a proxy fight in which he argued that the company should focus on tax preparation, and quit banking and subprime mortgage lending.

"This validates Breeden's strategy of focusing H&R Block on tax-related businesses," said David Roberts, a principal at Harvest Investment Advisors LLC in Tallahassee, Florida, which owns the company's shares. "This calls into question whether H&R Block should remain in banking. It's a distinct possibility that H&R Block will be broken up."

...more...

[Ghost Dog]

38. UBS shares wobble on fresh subprime concerns

http://yahoo.reuters.com/news/articlebusiness.aspx?type=bankingFinancial&storyid=nL20454639&WTmodLoc=BizArt-R1-IndustryNews-3&from=business

ZURICH, Nov 20 (Reuters) - Shares in Swiss-based bank UBS AG (UBSN.VX: Quote, Profile, Research) fell to a near 2-1/2 year low on Tuesday on renewed fears the group may have to make more hefty writedowns for exposure to assets hit by the subprime crisis.

Speculation also swirled in Zurich that UBS, which ranks eighth in the FTSE Global Banks index by market value, might be forced to cut its dividend, or even resort to a capital increase to protect its Tier 1 capital as a result of any writedown.

UBS shares fell as much 3.6 percent in morning trade to 48.70 Swiss francs, a level not seen since June of 2005, but by 1200 GMT they had recovered and were trading 0.2 percent up at 50.70 francs.

"Although UBS confirmed again last week that it would have a profitable fourth quarter, rumours are growing today again about a further writedown worth $9 billion," said analysts at Vontobel in a note.

At the height of the morning selloff, trading in UBS stock was briefly stopped by the automatic trading system after it suffered a sharp price fall, though a Swiss stock exchange spokesman played down the significance of the interruption.

"It's a safety valve ... it occurs automatically when the difference between the last transaction and the next one would be more than 2 percent," said the spokesman. "It's a mechanism which allows traders to reconsider their positions in the order book."

/...

[UpInArms]

39. US STOCKS-Wall St rises on Exxon, tech optimism

http://www.reuters.com/article/bondsNews/idUSN2053709420071120

NEW YORK, Nov 20 (Reuters) - U.S. stocks opened higher on Tuesday, led by Exxon Mobil Corp (XOM.N: Quote, Profile, Research) after a broker upgrade, while optimism over computer maker Hewlett-Packard Co's (HPQ.N: Quote, Profile, Research) solid profit helped offset news pointing to more trouble in the housing sector.

...more with the numbers...

Isn't it interesting that 2 corps - one of the an oil corp - can "drive" the market up when everything else sucks? :eyes:

[Hugin]

42. No mention of Target's 'surprise' fall in profits?

Due to 'soft sales' of high margin items?

No?

*tsk*

They must've gotten the repo pumps cleared early this morning.

[UpInArms]

40. 10:01 EST and Dow up 100+

Dow 13,072.90 114.46 (0.88%)
Nasdaq 2,623.19 29.81 (1.15%)
S&P 500 1,447.65 14.38 (1.00%)
10-Yr Bond 4.069% 0.01

NYSE Volume 520,594,406.25
Nasdaq Volume 241,724,953.125

09:40 am : The stock market opens modestly higher following a number of mixed headlines.

On the upside, Dow component Hewlett-Packard (HPQ) topped earnings expectations, and provided first quarter and fiscal 2008 guidance that was above consensus estimates. HP also said its board approved an $8 billion buyback. Likewise, retailer Nordstrom (JWN) reported earnings that topped expectations, and issued FY08 guidance above the current consensus estimate.

On the downside, Freddie Mac (FRE) reported a larger-than-expected third quarter loss of $3.29 per share. In addition, the company announced it has hired Goldman Sachs and Lehman Brothers as financial advisors to help it consider very near term capital raising alternatives, and said it is seriously considering reducing its fourth quarter common stock dividend by 50%. Futures were pointing to a noticeably higher start but dropped following Freddie Mac's earnings report.

Retailer Target (TGT) missed its earnings estimate, but mitigated some disappointment after announcing its board has approved a new $10 billion share repurchase program.

On the economic front, October housing starts were slightly better-than-expected, while building permits were slightly worse-than-expected. It is too early to call a bottom in the housing market and it would be premature to place much value on this one month of data.DJ30 +69.75 NASDAQ +16.32 SP500 +6.42

[UpInArms]

43. Credit, economy woes sink investor confidence-State St

http://www.reuters.com/article/bondsNews/idUSL2016706220071120?sp=true

LONDON, Nov 20 (Reuters) - Investor confidence sank to its second lowest level in at least nine years in November as fears about the credit crisis combined with worries over a deteriorating world economy, State Street said on Tuesday.

It said the fall mainly reflected U.S. investors shedding their exposure to stocks, particularly in emerging markets.

The U.S. financial services firm said its global State Street Investor Confidence index sank to 74.3 from a downwardly revised 82.0, previously 82.6.

It was the second lowest reading for the index since it was first compiled in September 1998. The lowest was a brief dip to 72.1 in February 2006.

"This month's decline in investor confidence takes place against a backdrop of deteriorating fundamentals, including a diminished outlook for consumer spending and global growth, and some acute credit pressures on the financial sector," said Harvard Professor Ken Froot, a co-developer of the index.

"While institutional investors were happy to provide liquidity to other market participants during the market turmoil of August, they have now decided that the risks to the underlying economy are much greater than before, and have reduced their allocations to risky assets with purpose.

...more...

[Ghost Dog]

44. Pressure grows on French president as state workers join strike

http://news.yahoo.com/s/afp/20071120/bs_afp/francepoliticsstrike_071120130333;_ylt=Aj7pMR762OgsFGGVfIuUhF6mOrgF

PARIS (AFP) - Pressure from the street against French President Nicolas Sarkozy's programme of reforms intensified Tuesday as hundreds of thousands of state employees went on strike, joining a week-long stoppage by rail-workers.

Teachers, postal staff, nurses, air-traffic controllers, tax officials and other civil servants staged a one day protest to demand pay rises and an end to government plans to trim the state pay-roll.

The stoppage left many schools closed, hospitals proving a minumum service and newsagents without newspapers, adding to the popular exasperation after seven days of severe transport problems.

Demonstrations drew tens of thousands in Rouen, Marseille, Grenoble, Lyon and other cities. According to government figures, some 30 percent of civil servants were on strike.

In addition protesting students disrupted classes in half of the country's 85 universities, in a campaign agianst a law giving faculties the right to raise money from private companies.

Rail traffic remained disrupted, with around half of TGV fast trains running. In Paris one metro train in three was in service, and once again massive traffic jams built up on roads into the city. The capital's two airports reported average flight delays of around 40 minutes.

Rail unions, who are protesting against plans to change their "special" pension system, want maximum pressure on the government ahead of round-table talks Wednesday which could offer a way-out.

The government has dropped its demand that the strike end before the talks get underway and instead now says there should be simply a "back-to-work dynamic".

...

Polls show that most French people support the pensions reform, but they are also increasingly worried over the cost of living and a majority sympathises with the civil servants' strike.

Unions representing 5.2 million state employees -- around a quarter of the entire workforce -- say their spending power has fallen by six percent since 2000, though the figure is disputed by the government. They also oppose plans to cut 23,000 jobs in 2008, half in education.

"In brandishing the theme of the cost of living, the civil servants are pushing where it hurts," said the pro-government newspaper Le Figaro in an editorial.

Budget Minister Eric Woerth conceded that "civil servants are not well paid", but he said that "in order to earn more they must accept more responsibilities, do more overtime and also accept there will be fewer civil servants."

Sarkozy, who has kept an unusually low profile over the last week, was expected to speak publicly in the coming days, possibly spelling out new measures to boost family budgets. A recent poll showed confidence in the president falling to 51 percent.

According to Finance Minister Christine Lagarde, the strike is costing the country between 300 and 400 million euros a day (between 440 and 586 million dollars). SNCF says it has already lost 100 million euros and the metro operator RATP 24 million euros.

[Ghost Dog]

46. Banks, oils help Europe shares up in choppy trade

http://today.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-11-20T122848Z_01_L20403961_RTRIDST_0_MARKETS-EUROPE-STOCKS-UPDATE-2.XML
Tue Nov 20, 2007 12:28 PM GMT

LONDON, Nov 20 (Reuters) - European shares rose in volatile trade by midday on Tuesday, helped by banks that gained on rate cut hopes and energy shares that benefited from a higher oil price. At 1202 GMT the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.66 percent at 1,472.40 points, having fluctuated in a wide 1.5 percent range, its most volatile day since Aug. 31.

Banks were the top positive weight on the index, with Barclays (BARC.L: Quote, Profile , Research) jumping 6.5 percent and Royal Bank of Scotland 4.5 percent as traders cited vague talk of a cut in the Bank of England's emergency rate.

As per its normal practice, the Bank of England declined to comment on market rumours.

Heavyweight oil and gas shares tracked the oil price <CLc1>, which rose by around $1 to $95.60 a barrel, boosted by talk of a cut in U.S. interest rates to help ease a credit crunch. Royal Dutch Shell (RDSa.L: Quote, Profile , Research) and Total (TOTF.PA: Quote, Profile , Research) both gained more than 1 percent and BP (BP.L: Quote, Profile , Research) ticked up 0.2 percent. But the FTSEurofirst 300 was still down nearly 1 percent on the year compared to a 15 percent rise at this time in 2006, punctured by worries that a credit crunch stemming from a crisis in risky U.S. mortgages would spread to the wider economy.

"There's been unrelenting pressure on financials for the past few weeks. It's a function of the tight availability of liquidity feeding through to stockholder nerves," said Andrew Bell, European strategist at Rensbury Sheppard Investment Management.

"Investors have had their toes bitten off at the knee whenever they've tried to dip their feet into the water, and confidence is low that they'll find a base from which to recover," he added.

/...

[Ghost Dog]

59. European stocks end up 1.2 pct, pare sharp losses

http://today.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-11-20T164546Z_01_L2046258_RTRIDST_0_MARKETS-EUROPE-STOCKS-CLOSE-URGENT.XML

LONDON, Nov 20 (Reuters) - Gains in energy shares helped European equities end more than 1 percent higher on Tuesday, paring the previous session's 2 percent fall.

Total (TOTF.PA: Quote, Profile , Research) advanced 1.7 percent and Royal Dutch Shell (RDSa.L: Quote, Profile , Research) gained 2.3 percent as U.S. crude oil prices jumped nearly 2 percent to $96.4 a barrel.

Miners were also higher, with bid target Rio Tinto (RIO.L: Quote, Profile , Research) up 2.2 percent and Anglo American (AAL.L: Quote, Profile , Research) 3.6 percent higher, while some beaten-down banks including Barclays (BARC.L: Quote, Profile , Research) and Royal Bank of Scotland (RBS.L: Quote, Profile , Research) also rose.

The pan-European FTSEurofirst 300 index <.FTEU3> closed 1.2 percent stronger at an unofficial 1,479.7, near the day's high of 1,481.9 and up sharply from the session's low of 1,453.8. U.S. markets also traded higher.

"The reasons for having a positive stance on equities is that global growth is all right and the outlook for growth in 2008 is good," said Rob van de Wijngaert, acting head of investment strategy at ABN AMRO Asset Management.

Ericsson (ERICb.ST: Quote, Profile , Research) was a standout loser, down 11 percent after the telecom equipment maker said its planning assumptions were now at the lower end of a forecast range for fourth quarter sales.

/.

[Ghost Dog]

60. European Stocks Advance; BASF, Peugeot, ICAP Pace the Gains

http://www.bloomberg.com/apps/news?pid=20601085&sid=aZtdmCC6fdJw&refer=europe

Nov. 20 (Bloomberg) -- European stocks rebounded from a three-month low, led by chemical producers and carmakers, as investors speculated the sell-off was overdone given the prospects for corporate profits.

BASF AG, the region's biggest chemical company, and PSA Peugeot Citroen advanced. ICAP Plc, the world's largest broker of transactions between banks, led financial-services stocks higher after reporting a jump in profit.

The Dow Jones Stoxx 600 Index added 1.1 percent to 358.65. The index has retreated 7.7 percent this month on increasing concern that losses tied to U.S. subprime mortgages will spill over to the broader economy.

``The recent sell-off was a bit exaggerated,'' said Carlo Luoni, who manages the equivalent of $180 million at 8A+ Sgr SpA in Varese, Italy. ``Valuations are interesting.''

The relative strength index on the Stoxx 600 closed yesterday at 26.5. A reading below 30 may indicate the index is poised to rise, according to technical analysts.

The Stoxx 600 was valued at 12.8 times earnings last week, the cheapest in at least five years, according to weekly data compiled by Bloomberg.

Analysts expect profit growth for Stoxx 600 companies will accelerate to 10.4 percent next year from 9.1 percent in 2007, Bloomberg data based on analysts' estimates shows.

European government notes snapped a three-day rally, while the dollar fell to a record low against the euro.

National Markets

National benchmarks rose in 14 of the 18 western European markets. The U.K.'s FTSE 100 gained 1.7 percent, and Germany's DAX climbed 1.6 percent. France's CAC 40 added 1.4 percent. The Stoxx 50 advanced 1 percent, while the Euro Stoxx 50, a measure for the euro region, rose 1.2 percent.

BASF advanced 3.7 percent to 90.71 euros, after closing yesterday at the lowest since June 8. Peugeot, Europe's second- biggest carmaker, increased 2.8 percent to 53.25 euros.

ASML Holding NV, Europe's largest maker of semiconductor equipment, gained 1.9 percent to 22.48 euros. The stock lost 11 percent in the month through yesterday.

ICAP jumped 13 percent to 645 pence, the best performance in the Stoxx 600. The London-based company said first-half profit increased 34 percent 80.1 million pounds ($164.4 million) after the slump in credit markets spurred record trading in currencies, bonds and their derivatives. Earnings topped the 72.8 million- pound estimate in a Bloomberg survey.

/...

[Joanne98]

48. Jane Hamsher asks naomi Klein her thoughts on the sub-prime crisis and she saz

http://www.firedoglake.com/2007/11/18/fdl-book-salon-welcomes-naomi-klein/
58
Naomi Klein says:

November 18th, 2007 at 2:40 pm
Jane Hamsher @ 23

Ian @ 20

Hi Naomi,
Thanks for another great book. Wondering what you think about the current sub prime debacle? Is this a shock that they will somehow be able to turn to their advantage? If so, how - and where should we be looking for the signs?

I was wondering the same thing.

You bet they can - and will - use it. In wealthy countries, economic crises have been the primary catalysts for The Shock Doctrine, most notably the “debt crisis” hysteria of the early to mid nineties. As sub-prime turns into a sustained downturn, it will be used as further “proof” that the U.S. can’t afford Social Security and that its public school system is hampering U.S. competition and needs to be privatized.

Predicting how the next shock will be used isn’t rocket science — just read the latest policy papers from the American Enterprise Institute and the Heritage Foundation - or save time and just read comment 19, where Profesor Foland does us a service by previewing the policy package planned to accompany an attack on Iran.

[Ghost Dog]

53. Nice. In another comment::

Bentley Stanforth III @ 13

…the question that’s been preoccupying my mind is if FDR’s New Deal, and equivalent redistributive socio-economic policies, were galvanised by the threat of communist revolution, what in today’s world, with the collapse of communism, can provide a similar counterweight?

A very good question. But it’s also worth remembering that FDR’s New Deal was itself a response to crisis - the crisis of the stock market crash of 1929, that led so many to question wild west capitalism.

The so-called “free market” is in crisis today - we see it with sub-prime, as well as with the massive disillusionment with the Bush Administration. Even Greenspan warns in his book that people are losing faith in market fundamentalism.

This is a moment for the left/progressives to propose our vision with real confidence and without apologies. We shouldn’t be afraid to be angry at grotesque injustice, and we need to stop being apologetic about believing in universal human rights and universal health care. The right is in crisis, but I worry that the response from too many of us is simply kicking them while they are down. That doesn’t inspire.

[Joanne98]

56. I totally agree! I think people are ready.

[Ghost Dog]

61. Clinton Talks Economy, Fields "Don't Ask" Question in Iowa

http://www.advocate.com/news_detail_ektid50574.asp

The economy needs help and fast, Hillary Rodham Clinton declared Monday in Knoxville, Iowa, claiming the experience for the job and saying the nation can't afford to break in a newcomer.

In speech that kicked off a two-day campaign swing through the first caucus state, the New York senator painted a bleak picture of a U.S. economy battered by home foreclosures, rising oil prices and lack of good jobs for middle class workers.

The former first lady compared the situation to 1992, when her husband ran against the first President Bush.

''There seems to be a pattern here. It takes a Clinton to clean up after a Bush,'' she said to applause.

...

In Iowa, Obama was asked about Clinton's comments and offered a sharp response.

''My understanding is she wasn't Treasury secretary in the Clinton administration. I don't know exactly what experience she's claiming,'' he said. ''Rather than just assert experience, if she has specific differences with me in regard to economic policy then let's have that debate.''

Clinton, speaking in a community gymnasium, outlined steps she said she would take to stem the housing crisis and help consumers in cold-weather states pay to heat their homes. Among other things, she said she would create a $1 billion fund for states to help homeowners who risk foreclosure.

She also addressed global challenges to the economy, including funds controlled by foreign governments to invest in U.S. stocks, real estate and businesses. She called for greater transparency for such funds, which are currently not required to disclose their assets or investment returns.

/...

[Joanne98]

49. Volatility Lifts Hedging Costs and Dims Carry Trade

http://www.bloomberg.com/apps/news?pid=20601086&sid=aeG_62Dr_nMs&refer=news

By Liz Capo McCormick

Nov. 20 (Bloomberg) -- The rising cost of using currency options to protect returns on carry trades is helping push traders to exit the strategy, which involves borrowing in countries such as Japan where interest rates are low.

Volatility implied on options for major exchange rates reached a three-month high last week, according to data compiled by JPMorgan Chase & Co. Traders use implied volatility as part of setting options prices. The yen surged against all 16 major currencies yesterday as traders dumped carry-trade bets amid concern that losses in credit markets will increase and trigger a U.S. recession.

``With the move to recent highs in option prices, the only thing people could do was to just get out of their currency positions,'' said Simon Smollett, senior options strategist at Calyon in London. ``If you are managing currency profits, you have to look at the gains you can make relative to the risk. If people can't hedge cheaply they will reduce their positions.''

JPMorgan's index of implied volatility on three-month options for the major currencies reached 11.72 percent on Nov. 12, the highest since Aug. 17, when it set an eight-year high of 13.4 percent. It traded at 10.16 percent yesterday. Traders use implied volatility to gauge expectations for currency swings.

Japan's currency gained 2.1 percent to 97.09 per Australian dollar yesterday, for an advance of 11.1 percent since Oct 31. It last traded at 97.57 from 97.04. The Federal Reserve cut its benchmark interest rate a quarter-percentage point that day to 4.5 percent, after a half-point rate reduction in September.

High-Yielding Assets

In carry trades, investors buy high-yielding currencies like the Australian dollar with funds borrowed in countries such as Japan or Switzerland. Australia's benchmark lending rate is 6.75 percent, compared with 0.5 percent in Japan and 2.75 percent in Switzerland. The risk in the carry trade is that swings in foreign-exchange rates erode profits from interest- rate differentials.

A trader who bought the Australian dollar on Aug. 17 with funds borrowed in Japan made a return of 19 percent by Oct. 31. That investor has given back about half the return this month, according to Bloomberg data.

The yen climbed yesterday as Goldman Sachs Group Inc. said in a report that Citigroup Inc., the largest U.S. bank, may write down $15 billion in collateralized debt obligations over the next two quarters.

`More Risk Premium'

Three-month Libor, a key indicator of banks' willingness to lend, rose to 4.982 percent yesterday, from 4.949 percent on Nov. 16, reaching the highest since Oct. 26, according to the British Bankers' Association. The rate peaked at a seven-year high of 5.725 percent on Sept. 7.

``There is much more risk premium priced into option prices,'' said Nicolas Vilar, head of currency structured products at JPMorgan Chase in London. ``Nobody knows the extent of how bad news may be. We expect this environment to last until year-end.''

Implied volatility on one-month options for the Australian dollar-yen exchange rate reached 28 percent on Nov. 12, the highest since Aug. 20. The rate was 24.13 percent today. Implied volatility peaked this year on the exchange rate at 36.33 percent on Aug. 17, the highest since at least December 1995, as far back as Bloomberg compiles data.

The JPMorgan major currency volatility index includes options on the yen, euro, pound, Swiss franc, Australian dollar and Canadian dollar versus the U.S. dollar.

To contact the reporter on this story: Liz Capo McCormick in New York at [e-mail] .

Last Updated: November 20, 2007 01:10 EST
http://www.bloomberg.com/apps/news?pid=20601086&sid=aeG_62Dr_nMs&refer=news

[Ghost Dog]

50. Swiss exports turn in a record performance

http://www.swissinfo.org/eng/business/detail/Exports_turn_in_a_record_performance.html?siteSect=161&sid=8443659&cKey=1195568496000&ty=st
Foreign trade is booming and so is the watch industry

Swiss exports hit a new high in October, rising by 10.5 per cent to SFr18.75 billion ($16.8 billion), the Federal Customs Office reported on Tuesday.

With imports for the month at SFr17.2 million, Switzerland ran a trade surplus of SFr1.56 billion, slightly narrower than the September surplus.

The Swiss watch industry has also reported a "sharp upturn" in the number of watches and movements exported for the month, valued at SFr1.69 billion. It expects a record for the year as a whole.

...

Analyst Fabian Heller at Credit Suisse (CS) said the October figure was still above what he had expected.

"Exports have benefited from very strong demand... Despite current uncertainties demand from abroad is staying on a high level. We are not seeing any signs of a slowdown," he commented.

Heller added that CS remained "very positive" on trade, which was supporting economic growth in 2007 and slowing to a more moderate extent in 2008.

"The luxury sector is performing strongly as are food products, machinery, electronic goods and precision goods. Watches are very good."

In a related development, the Federation of the Swiss Watch Industry said on Tuesday that the October monthly export result "exceeded by far the best months achieved previously by Swiss watch manufacturers".

The federation's president, Jean-Daniel Pasche, confirmed that the branch was confident for both this year and next, expecting exports topping the SFr14 billion mark in 2007 – a record.

Over the first ten months of the year, the value stands at SFr12.7 billion, an increase of 16.3 per cent over the comparable period last year.

"We are certain that 2008 will be even better," he said.

Pasche added there was no end in sight to trends favouring luxury goods like jewellery and handcrafted timepieces.

/..

Super-rich spending on luxuries increases, ding ding!

[Joanne98]

55. Freddie Mac's getting hammered. Down 27%

That's kinda oversold isn't it? This is just about dividends?

http://finance.yahoo.com/q?s=FRE

[Roland99]

58. 12:30pm - Where did the good go?

Dow 12,997.63 +39.19
Nasdaq 2,608.31 +14.93
S&P 500 1,439.99 +6.72
10 YR 4.10% 0.02
Oil $97.00 $2.36
Gold $795.00 $17.00

[burf]

62. 1:30 PM EST

Looks like it left the building with Elvis!

12,896.18 -62.26 -0.48%

[Roland99]

63. 12,850 in sight?

A bit of a bump up in the last few min. And gold is up $20 today.

[UpInArms]

66. within fingers' reach at 2:35 EST

Dow 12,862.52 95.92 (0.74%)
Nasdaq 2,560.60 32.78 (1.26%)
S&P 500 1,421.96 11.31 (0.79%)
10-Yr Bond 4.069% 0.01

NYSE Volume 3,310,798,000
Nasdaq Volume 1,811,015,250

2:30 pm : The release of the minutes from the October 31 FOMC meeting prompted some mixed interpretations - as most Fed releases do - and has led to choppy trading action. The latest move is to the downside and has carried the indices to new session lows. Oil prices, meanwhile, have moved to a new session high above $98 per barrel.

By and large, the minutes haven't helped the mood today as they were accompanied by a downgrade of the Fed's GDP forecast for 2008 to 1.8%-2.5% from 2.5%-2.75%. On the bright side, the 2008 forecast for core-PCE was also dialed down to 1.7%-1.9% from 1.75%-2.0%. That is understandable as slower than expected GDP growth should help curtail inflation pressures.

The minutes noted that the risks to inflation balance the risks to the economy and discussed the possibility of leaving rates unchanged.DJ30 -95.67 NASDAQ -29.99 SP500 -10.91 NASDAQ Dec/Adv/Vol 1944/990/1.68 bln NYSE Dec/Adv/Vol 2008/1264/1.12 bln

1:55 pm : The major indices are off their lows, but remain in the red. The weakness in equities has spurred buying interest in the Treasury market, which is now flat after paring its intraday losses.

Meanwhile crude oil continues to rally, as it is currently up 2.8% to $97.30. Prices, however, remain lower than crude oil’s recently reached all-time high of $98.62.

The market awaits the Oct. 31 FOMC minutes release in five minutes. Briefing.com will provide an analysis of the minutes, as well as market reactions at the bottom of the hour.
DJ30 -30.97 NASDAQ -9.36 SP500 -3.29 NASDAQ Dec/Adv/Vol 1995/924/1.44 mln NYSE Dec/Adv/Vol 2090/1165/959 mln

[Joanne98]

65. Freddie Mac down 31%

http://finance.yahoo.com/q?s=FRE

[UpInArms]

68. Bear Stearns sued over mortgage losses

http://www.reuters.com/article/bondsNews/idUSN2061329020071120?sp=true

Stearns Cos (BSC.N: Quote, Profile, Research), which expects a fourth-quarter loss after writing down $1.2 billion linked to mortgages, has been sued by a shareholder who claims the Wall Street investment bank should have known it was overexposed to subprime lending.

The lawsuit, filed late Monday in the U.S. District Court in Manhattan, accuses Chairman and Chief Executive James Cayne and other officials of being "well aware of the impending crisis" in mortgages before credit markets deteriorated in July.

It said Bear Stearns developed a scheme to conceal a "tremendously risky subprime mortgage portfolio," while at the same time overstating its financial condition and assuring investors the company had sound risk management.

Bear Stearns shares have lost about two-fifths of their value this year, with most of the decline in the last five months. Its market value has fallen about $10 billion since mid-January.

The plaintiff, Samuel Cohen, said he lives in Baltimore and owns 115 Bear Stearns shares, and filed his derivative complaint on behalf of the bank and other shareholders.

...more...

[Roland99]

69. Crude cracks $98/bbl

[CatholicEdHead]

78. Yep, ouch, so $100/barrel by Thanksgiving?

Amazing what a open mic at OPEC does.

http://www.marketwatch.com/news/story/crude-near-record-high-weaker/story.aspx?guid=%7B1A6627DB-55E0-4614-9519-5CBB15DD061E%7D

SAN FRANCISCO (MarketWatch) -- Crude-oil futures ended Tuesday's session at the strongest closing level of $98.03 a barrel after the dollar reached a new low against the euro, increasing demand for dollar-denominated oil from holders of other currencies.
Crude for January delivery gained for a third straight session and closed up $3.39, or 3.6%, at $98.03 a barrel on the New York Mercantile Exchange. After the market closed, oil touched the previous intraday high of $98.62 in electronic trading.
In the foreign-exchange market, the euro hit a new record high of $1.4819 shortly after the U.S. Federal Reserve predicted the U.S. economy will slow by more than previously thought in 2008 and inflation will remain tame. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, dropped 0.5% at 75.24. See Currencies.
Chart of $XOI
A sliding dollar makes oil cheaper for buyers holding other currencies. These buyers are likely to increase demand and bid up oil prices.

[Joanne98]

70. Next Dow Jones support level...Support: 12890.41

http://finance.yahoo.com/q?s=%5EDJI

http://stock.helpisland.com/quote.php?symbol=dji

[Buttercup McToots]

71. USD $75.20...@ 2:50 am

just sayin`...:eyes:

[Joanne98]

72. Fed minutes show Oct rate cut was "close call"

WASHINGTON (Reuters) - The Federal Reserve was unsure last month whether lower borrowing costs were needed to cushion the U.S. economy from a housing slump and credit market woes but, in a "close call," decided to cut interest rates as an insurance policy, minutes of the meeting released on Tuesday show.

"Many members noted that this policy decision was a close call," the minutes said.

The Fed projected U.S. economic growth to slow in 2008 to between 1.8 and 2.5 percent, sharply down from the 2.5 to 2.75 percent forecast in June. Policy-makers lowered their forecast because of the tightened terms and reduced availability of non-standard mortgages, weakness in housing and rising oil prices, a summary of the forecast said.

In a new step toward greater central bank transparency, the Fed released a summary of its economic projections through 2010 with the minutes of the policy meeting.

The U.S. central bank trimmed benchmark rates by 0.25 percentage point to 4.5 percent at its October 30-31 meeting, making for a total of 0.75 point in rate reductions at the last two meetings. Policy-makers opted for the October rate reduction because tighter credit had made the stance of monetary policy somewhat restrictive, the minutes said.

Fed members worried about financial markets that were still showing stress from concerns about bad credit.

"Participants generally viewed financial markets as still fragile and were concerned an adverse shock ... could further dent investor confidence and significantly increase the downside risks to the economy," the Fed said.

The Fed was more sanguine on inflation, expressing some confidence that recent moderation on core inflation, which strips out energy and food prices, could be sustained.

At the same time, policy-makers saw factors including soaring oil prices and the weakening dollar as having the potential to put upward pressures on core prices in the near term.

Moreover, Fed officials worried that persistently higher readings for overall inflation could unhinge inflation expectations, which have to date remained well contained.

They have said since the October meeting they believe the two rate reductions should be sufficient to buffer the economy as it enters a rough patch that may last into next year.

That stance is at odds with financial markets, which generally expect the Fed to lower rates to 4.25 percent at its next policy meeting on December 11. Implied prospects for a December Fed ease were as high as 96 percent late Monday but dipped to 84 percent before the minutes as housing construction data offered a glimmer of hope for the battered sector.

Stocks (DJI:^DJI - News) fell and bonds turned positive in choppy trade as the minutes chilled hopes for a December rate cut.

(Reporting by Mark Felsenthal and David Lawder; Editing by James Dalgleish)

[Joanne98]

73. Fannie Mae down 25%

http://finance.yahoo.com/q?s=FNM

[Joanne98]

74. Haliburton up 1.38%. natch. Check out the message board! LOL

http://messages.finance.yahoo.com/mb/HAL

Looks like there's a war on!

[Hugin]

80. Hahaha!

A classic.

Thanks for pointing it out. :)

[specimenfred1984]

76. Amazing end of day recovery or manipulation: you decide

http://finance.yahoo.com/q/bc?s=%5EGSPC&t=1d

[Hugin]

77. Notice how the indexes all fell into perfect synchronization at around 1:00?

http://finance.yahoo.com/q/bc?t=1d&s=%5EGSPC&l=on&z=m&q=l&c=&c=%5EIXIC&c=%5EDJI

It's a big conincidence! I swear! :eyes:

[Ghost Dog]

81. At the close:

Dow 13,010.14 Up 51.70 (0.40%)
Nasdaq 2,596.81 Up 3.43 (0.13%)
S&P 500 1,439.70 Up 6.43 (0.45%)
10-Yr Bond 4.0540% Down 0.0250
NYSE Volume 4,806,186,000
Nasdaq Volume 2,641,764,750

4:30 pm : Anyone who claimed the trading action leading up to the Thanksgiving Day holiday would be boring has had to quickly change their tune as it has been anything but boring. Tuesday's session made that point abundantly clear.

The major indices opened on an upbeat note thanks to a stellar fourth quarter earnings report and upbeat guidance from Dow component Hewlett-Packard (HPQ 49.56, +0.12), leadership from fellow Dow component ExxonMobil (XOM 87.82, +3.71), which was upgraded from Neutral to Buy at UBS and, believe it or not, a report that housing starts increased 3.0% in October to an annualized rate of 1.229 million units (consensus 1.175 million).

There were some tethers on the rally, though. Specifically, the good news on housing starts was offset by the indication that building permits declined 6.6% to an annualized rate of 1.178 million. Oil prices spiked in conjunction with a weakening dollar and, in the most striking development, Freddie Mac (FRE 26.74, -10.76) plummeted 29% in the wake of a horrendous third quarter earnings report that also dragged down Fannie Mae (FNM 28.25, -9.33).

The Freddie Mac situation ended up weighing heavily on the market as the mortgage company posted a net loss of $2.02 billion, or $3.29 per share, for the third quarter after writing-down the value of its assets and increasing its provision for loan losses. The added worry for the market was the company's indication that it is seriously considering cutting its fourth quarter dividend by 50% and that it has hired advisors to discuss near-term capital raising needs.

The concern that Freddie Mac won't be purchasing as many mortgages as it has in the past from other lenders sent Countrywide (CFC 10.28, -0.29) into a tailspin that saw its stock scrape below $9.00 per share. Countrywide was eventually compelled to come out and shoot down bankruptcy rumors as being absolutely false.

The release of the minutes from the Oct. 31 FOMC meeting at 2:00 pm ET didn't help matters much when they showed officials discussing the October rate cut as "a close call." In light of the stock market's behavior since then, participants were somewhat taken aback that the officials weren't more resolute in thinking a rate cut was necessary at that time.

This understanding, combined with the update from the Fed that it has lowered its 2008 GDP growth forecast to 1.8%-2.5% from 2.5%-2.75%, drove the market to new lows for the session about 30 minutes after the release. Around the same time, crude futures for January delivery moved to their best levels of the day before closing at $98.03.

The 3.6% gain in oil prices underpinned a 3.2% gain in the energy sector (+3.2%) which was already riding ExxonMobil's coattails.

The market looked headed for another woeful finish, but that fate was averted when the market managed to hold above the day's prior low, an encouraging happening that brought buyers back and forced a short-covering rally that produced a positive finish.

The financials partook in the late rally and ended the day down 1.3% after being down as much as 3.6%.

Everything was caught up in the late move as 9 out of the 10 economic sectors recorded a gain, including the consumer discretionary sector (+0.02%) which was down 1.4% with roughly 40 minutes to go in the day. A disappointing earnings report from Target (TGT 51.69, -2.21) contributed to the sector's early losses.

As stocks recovered the lost ground, the Treasury market gave back its gains. The 10-year note closed down 5 ticks, leaving its yield at 4.09%.
DJ30 +51.70 NASDAQ +3.43 SP500 +6.43 NASDAQ Dec/Adv/Vol 1764/1257/2.63 bln NYSE Dec/Adv/Vol 1674/1632/1.87 bln

3:35 pm : The major indices rebound following a surge in broad-based buying interest. The financial sector (-1.8%), in particular, has shaved a large portion of its losses. There is not a specific news item to account for the pop.

Friedman Billings has downgraded Freddie Mac (FRE 27.06, -10.44) to Underperform from Market Perform, and is reducing its price target to $20 from $55, after Freddie reported a third quarter loss of $3.29 per share.
DJ30 +21.38 NASDAQ -9.44 SP500 +1.67 NASDAQ Dec/Adv/Vol 2170/817/2.10 bln NYSE Dec/Adv/Vol 2187/1100/1.40 bln

3:00 pm : The major indices are off their lows, but remain near their worst levels of the session. The stock market has traded in choppy fashion following the release of the October 31 FOMC meeting minutes at 14:00 ET.

The Nasdaq composite has been hit especially hard by the recent selling pressure. Qualcomm (QCOM 40.41, -1.34), Cisco (CSCO 28.65, -0.78) and Echostar Communications (DISH 42.15, -5.34) are the main laggards. DISH rallied yesterday on speculation of an AT&T (T 38.00, +0.20) takeover.

Google (GOOG 642.71, +16.86) is bucking the negative trend, as it provides leadership to the Nasdaq. Credit Suisse raised its price target on shares of Google to $900 from $800. Credit Suisse cited long-term opportunities in areas like display, local, and mobile as reasons for the increase.
DJ30 -73.24 NASDAQ -28.23 SP500 -7.94 NASDAQ Dec/Adv/Vol 2128/840/1.88 bln NYSE Dec/Adv/Vol 2193/1093/1.25 bln

2:30 pm : The release of the minutes from the October 31 FOMC meeting prompted some mixed interpretations - as most Fed releases do - and has led to choppy trading action. The latest move is to the downside and has carried the indices to new session lows. Oil prices, meanwhile, have moved to a new session high above $98 per barrel.

By and large, the minutes haven't helped the mood today as they were accompanied by a downgrade of the Fed's GDP forecast for 2008 to 1.8%-2.5% from 2.5%-2.75%. On the bright side, the 2008 forecast for core-PCE was also dialed down to 1.7%-1.9% from 1.75%-2.0%. That is understandable as slower than expected GDP growth should help curtail inflation pressures.

The minutes noted that the risks to inflation balance the risks to the economy and discussed the possibility of leaving rates unchanged.DJ30 -95.67 NASDAQ -29.99 SP500 -10.91 NASDAQ Dec/Adv/Vol 1944/990/1.68 bln NYSE Dec/Adv/Vol 2008/1264/1.12 bln

1:55 pm : The major indices are off their lows, but remain in the red. The weakness in equities has spurred buying interest in the Treasury market, which is now flat after paring its intraday losses.

Meanwhile crude oil continues to rally, as it is currently up 2.8% to $97.30. Prices, however, remain lower than crude oil’s recently reached all-time high of $98.62.

The market awaits the Oct. 31 FOMC minutes release in five minutes. Briefing.com will provide an analysis of the minutes, as well as market reactions at the bottom of the hour.
DJ30 -30.97 NASDAQ -9.36 SP500 -3.29 NASDAQ Dec/Adv/Vol 1995/924/1.44 mln NYSE Dec/Adv/Vol 2090/1165/959 mln

1:30 pm : The major indices fall into negative territory for the first time this session. Disappointment in the weakness of the financial (-2.8%), and consumer discretionary (-0.9%) sectors has caused tech (-0.3%) and industrials (-0.3%) to fall into the red.