STOCK MARKET WATCH, Thursday January 10

[ozymandius]

Source: du

STOCK MARKET WATCH, Thursday January 10, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 376 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2549 DAYS
WHERE'S OSAMA BIN-LADEN? 2271 DAYS
DAYS SINCE ENRON COLLAPSE = 2232
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 January 9, 2008

Dow... 12,735.31 +146.24 (+1.16%)
Nasdaq... 2,474.55 +34.04 (+1.39%)
S&P 500... 1,409.13 +18.94 (+1.36%)
Gold future... 881.70 +1.40 (+0.16%)
30-Year Bond 4.32% -0.03 (-0.78%)
10-Yr Bond... 3.79% -0.05 (-1.28%)






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. Yay! They fixed the hairpins, glue and spit that hold my internet connection together!

My deep gratitude is reserved for UpInArms. Thank you for your efforts to continue this little enterprise of ours while my internet connection was incompatible with rain, sun, wind direction/speed, etc.

:hug:

:yourock:

[JNelson6563]

4. Glad you're back and many thanks to UIA!

:toast:

[UpInArms]

6. Hurrah! Hurrah! Hurrah! You're BACK!!!

:bounce: :bounce: :bounce:

:grouphug:

I thought the alligators were coming after me a few times :D

So very happy to see you my friend!

and no - :yourock:

[ozymandius]

13. Thanks to all.

Good to be back online -- moreso for the company I keep here.

:grouphug:

[bahrbearian]

36. You did a great job UIA.

[Roland99]

7. Got your tubes cleaned out, eh?

:hi:

[Hugin]

28. Hmpf... I might as well join in this OFF TOPIC greet fest.

Welcome back OZY! :hi:

[bahrbearian]

37. Good to see you back..

[ozymandius]

2. Market WrapUp: Health Care Macro Investment Theme

BY CHRIS PUPLAVA

Last January I penned a piece supporting the out-performance (click for link) of the health care sector starting out with the bright long term fundamental picture for the sector with the retirement of the baby boom generation, with the following comments:

The above figures show a major shift in the population demographic of the world with many countries moving into the 30%+ category of their population aged 60 years or more. This forecasted shift to an older population will put a major strain on the health care systems of the world and require vast sums of capital investment into hospitals, drug manufacturing facilities, health care equipment manufacturing facilities, and managed care facilities and so on. This backdrop does not necessarily make health care an attractive investment now, as the aging baby boom generation has been discussed for years and the health care sector has underperformed the broad market since late 2002.

However, there are several industry developments that point to strength within the health care sector that may translate into relative out-performance in share prices in the months and years to come, which are discussed below.

So, did the sector outperform the broad market (S&P 500) last year? Yes, but only by 2.34% as energy again stole the spotlight as the best performing sector. This year, though, health care may take center stage as it is vaulting out of the starting gates in 2008.

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

[ozymandius]

3. Today's Reports

8:30 AM Initial Claims 01/05
Briefing Forecast 345K
Market Expects 340K
Prior 336K

10:00 AM Wholesale Inventories Nov
Briefing Forecast 0.4%
Market Expects 0.4%
Prior 0.0%

10:30 AM Crude Inventories 01/05
Briefing Forecast NA
Market Expects NA
Prior -4056K

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

[UpInArms]

12. Initial Claims @ 322,000 - last wk rev'd up 1,000

04. U.S. smoothed continuing claims rise to 2-year high
8:31 AM ET, Jan 10, 2008 - 3 minutes ago

05. U.S. initial jobless claims fall to 2-month low
8:31 AM ET, Jan 10, 2008 - 3 minutes ago

06. U.S. weekly initial jobless claims fall 15,000 to 322,000
8:31 AM ET, Jan 10, 2008 - 3 minutes ago

[UpInArms]

35. U.S. Nov. wholesale inventories up 0.6% - price of oil inflates sales

04. Higher oil, commodity prices inflate Nov. wholesale sales
10:00 AM ET, Jan 10, 2008 - 2 minutes ago

05. U.S. Nov. wholesale sales up 2.2%, most in 2 years
10:00 AM ET, Jan 10, 2008 - 2 minutes ago

06. U.S. Nov. wholesale inventories up 0.6%
10:00 AM ET, Jan 10, 2008 - 2 minutes ago

07. U.S. Nov. wholesale inventory-sales ratio falls to 1.07
10:00 AM ET, Jan 10, 2008 - 2 minutes ago

[annabanana]

5. Good Morning!

I don't post on this thread often, but I read it with the interest of someone who knows nothing of the movement of money (not watching mine go anywhere but out)

BUT, I got this link in my email this morning and thought I'd pass it on to those who might understand it.

http://agonist.org/stirling_newberry/20080108/the_coming_double_dip_recession

[Roland99]

8. Good read. Thanks, annabanana!

Oil certainly is acting as a replacement currency at the moment. And the only reason the markets are holding up, somewhat (and other than PPT intervention), is from int'l sales. When the global slowdown hits, the markets will *really* feel the hurt.

[TalkingDog]

16. Hi annabanana (damn not enough caffine to type your name)

Thanks for posting this.

This question isn't directed at you, just putting it out there....

Back to back recessions equal a long recession. And as I understand it a long recession is one of the hallmarks of a depression. The other is the "depth" or intensity, correct?

Interesting, but the prose was dense (and chewy). Or maybe that's the lack of caffine molecule in my blood.


My Favorite Master Artist: Karen Parker GhostWoman Studios

[ozymandius]

19. Correct in your view of recession v. depression.

Though America has only experienced two depressions during the modern era, we understand quite a bit about their nature. (Both beginning twenty years apart: 1909 and 1929) The length and intensity of the Great Depression makes recessions seem quite small. Because the 1929 depression was handled so mind-numbingly-stupidly there quite a few maxims reminding us of what not to do.

1909 and 1929 showed us that market liquidity, as an inoculation against bank insolvency, can either delay or blunt the worst effects of a recession/depression. In 1909, J.P. Morgan engineered an injection of liquidity from the big banks to the small banks (basically doing what the Fed does before it existed) to stave off massive bank failures that would have pulled the medium and large banks to the brink of failure. To the contrary - the Federal Reserve in 1929 did just the opposite: cutting off the liquidity taps and evidencing panic at the Federal level and providing a catalyst for broad failure among the small and medium sized banks. We know how that story ended.

What the Fed does today rhymes with those dynamics eighty years ago. Certainly there are more financial mechanisms in place to keep us sliding into a prolonged recession/depression. But my worry comes from the concern that the Federal Reserve and the massive financial institutions have become too reliant on those financial tools designed to guard against failures. My concern speaks of an inherent overconfidence that big banks have in the system to guard against dumb speculation.

[ozymandius]

18. I greatly appreciate this.

The point echoes over and over again: Iraq and the military/industrial complex are ludicrous drains on our economy. I would also add one more point: the strains of commoditized medical and energy costs deserve to receive thier own hefty share of blame for burdening the average consumer with speculative costs. To me - these are areas of national security, part of the "general welfare" benefit that the Constitution mentions. Energy and healthcare should not be traded like widgets in the commodity markets.

[donkeyotay]

62. Way to pare it down to what really matters. I can't bear to watch another election

in which the problems are misdiagnsosed and false solutions are promoted:

Iraq and the military/industrial complex are ludicrous drains on our economy. I would also add one more point: the strains of commoditized medical and energy costs deserve to receive thier own hefty share of blame for burdening the average consumer with speculative costs. To me - these are areas of national security, part of the "general welfare" benefit that the Constitution mentions. Energy and healthcare should not be traded like widgets in the commodity markets.

The wealth of this nation is being bled away to special interests instead of being invested to create more wealth - allegedly the thing we all believe in.

[UpInArms]

9. dollar watch

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

Last trade 76.382 Change -0.080 (-0.10%)

Could US Interest Rates be at 2.50% by Year End?

http://www.dailyfx.com/story/bio1/Could_US_Interest_Rates_be_1199917750551.html

The lack of economic data has given traders and economists the opportunity to think about how bad the US economy will fare in 2008. Since the disturbingly weak non-farm payrolls number released on Friday, there has no been economic data to confirm or deny that the US economy is headed for a recession. As a result, most traders have braced for the worst as rate cut expectations continued to edge higher. According to Fed fund futures, the probability that the Federal Reserve will lower interest rates by 50bp at the end of the month is now 74 percent compared to 68 percent yesterday and 24 percent a week ago. The current debate in the market is 25 versus 50, but lets take a look at what economists are expecting beyond the January meeting. Assuming the Fed cuts by only 25bp, we could see as much as 150bp of further easing. Goldman Sachs and BNP Paribas expect interest rates to be at 2.50 percent by the end of the year, while Merrill Lynch is calling for rates to hit 2 percent in early 2009. On the other side of the spectrum, RBS Greenwich and Bear Stearns only believe that another 25bp is needed before the easing cycle comes to an end. At DailyFX, expect another 75 to 100bp of further easing before the cycle is over and we believe that it is still premature to call for 50bp of easing without seeing how consumer spending and consumer prices fared in the month of December. These numbers are expected next week. Recent comments from Federal Reserve Presidents confirm our belief that the members of the US central bank have not made up their minds. This morning, Poole said that even though the economic outlook is uncertain, it is too soon to tell if housing troubles will push the US economy into recession. Jobless claims, wholesale inventories and chain store sales are due for release tomorrow – these numbers should not be market moving.

...more...

BoE Leaves Rates Unchanged, Pound Bounces--Bottom In?

http://www.dailyfx.com/story/bio2/BoE_Leaves_Rates_Unchanged__Pound_1199969230033.html

Bank of England left the overnight lending rate unchanged at 5.50% for at least another month ending rampant speculation that UK central bankers would act preemptively to ease monetary policy in attempt to prevent a slowdown in the economy. Cable which has been battered for the better part of the past few weeks rebounded from 6 month lows at 1.9539 to trade 1.9640 in the aftermath of the news.

As we stated in yesterday’s report “Given the generally hawkish posture of BoE Governor Mervyn King, UK central bankers may choose to wait another month for further confirmation of economic weakness before enacting any changes.” Indeed that is exactly what happened as the MPC decided to err on the side of caution given the elevated readings in inflation and money stock gauges.

Still whether this is a definitive bottom or simply a reflex rally in the pound remains an open question. The majority of the market continues to believe that when it come lowering UK interest rates it is no longer a matter of if but simply a question of when. If UK data, especially consumer related measures begins to show further deterioration then the BoE will be forced to cut rates in February. In the meantime, cable received a temporary reprieve and should stabilize for the time being.

...more...

[UpInArms]

27. ECB, Fed, SNB to offer further dollar liquidity

http://www.reuters.com/article/bondsNews/idUSL1086841320080110

FRANKFURT, Jan 10 (Reuters) - The European Central Bank has decided with the U.S. Federal Reserve to offer further dollar liquidity this month to help normalise conditions on money markets, ECB President Jean-Claude Trichet said on Thursday.

Trichet told a news conference that the moves were "to contribute to satisfying the exceptional need for further normalisation of conditions".

The ECB, Fed and a number of other leading central banks said last month they would inject extra funds into the money market to bring down interbank lending rates and pre-empt the threat of a credit market squeeze over the turn of the year.

"The (January) operations will have the same size and will be conducted according to the same procedures as those carried out in December, 2007," said Trichet. "They will be settled on Jan. 17 and 31, with maturity of 28 days for $10 billion, as has been the case in December."

The Swiss National Bank also said on Thursday that it would offer U.S. dollar liquidity up to a maximum $4 billion in a repo auction to be held on Jan. 14.

...more...

[ozymandius]

31. So now the Fed has printing presses over there?

Just asking....

:shrug:

[UpInArms]

34. and here go those multi-nationals to sponge up some of that cash

Citigroup and Merrill in talks for foreign capital: report

NEW YORK (Reuters) - Citigroup Inc. (C.N) and Merrill Lynch & Co Inc. (MER.N) are in discussions to receive more capital from investors, primarily foreign governments, The Wall Street Journal reported on Thursday.

Citigroup could get as much as $10 billion, likely all from foreign governments, while Merrill is expected to get $3 billion to $4 billion, much of it from a Middle Eastern government investment fund, the report said.

The report also said Citigroup's board is expected to discuss cutting the firm's dividend in half, a move that could save it more than $5 billion a year.

Representatives were not immediately available for comment at either bank.

U.S. banks have been wrestling with huge subprime mortgage losses, prompting some to seek cash from sovereign wealth funds.

In December, Merrill Lynch shored up its capital base by as much as $7.5 billion after selling a stake to a Singapore government investment fund and an asset manager. Morgan Stanley (MS.N) has said it would receive $5 billion from China after recording $9.4 billion of writedowns.

...more...

Sounds like Guido and the gang are overseas putting the squeeze on those other wiseguys :eyes:

[wordpix]

65. wonder what the banks are giving in return --- high interest?

[UpInArms]

38. ECB Q&A: We made money from Dec. tender operation

12. ECB Q&A: Governing council agreed on decision, statement
9:04 AM ET, Jan 10, 2008 - 59 minutes ago

13. ECB Q&A: We made money from Dec. tender operation
9:01 AM ET, Jan 10, 2008 - 1 hour ago

14. ECB Q&A: Rate decision reached by consensus
8:57 AM ET, Jan 10, 2008 - 1 hour ago

15. ECB Q&A: Don't let oil, food rises spill over into wages
8:53 AM ET, Jan 10, 2008 - 1 hour ago

17. ECB: Bank loans to private sector 'robust'
8:48 AM ET, Jan 10, 2008 - 1 hour ago

18. ECB: Wages shouldn't be linked to price gauges
8:45 AM ET, Jan 10, 2008 - 1 hour ago

19. ECB: Staff inflation forecasts assume commodity price falls
8:43 AM ET, Jan 10, 2008 - 1 hour ago

[AnneD]

48. Yet another....

example of outsourcing....:evilgrin: Imagine, take American jobs from Americans.

[UpInArms]

10. Ruby Tuesday swings to loss, warns of default

http://news.yahoo.com/s/nm/20080109/bs_nm/rubytuesday_results_dc

NEW YORK (Reuters) - Restaurant chain Ruby Tuesday Inc (RT.N) posted a quarterly net loss, versus a year-ago profit, and said it could default on its debt, sending the company's stock down more than 3 percent in after-hours trade.

Ruby Tuesday recorded a net loss of $10.4 million, or 20 cents per share, in its fiscal second quarter ended December 4 as the company faced falling same-restaurant sales and remodeling costs. In the year-ago period, it had a net profit of $16.7 million, or 28 cents per share.

The company said on Wednesday its remodeling initiative cost it 7 cents per share in the latest quarter.

Quarterly revenue fell to $320.9 million from $336.8 million a year ago, as same-restaurant sales fell 10.8 percent at company-owned locations and 8.7 percent at franchise locations.

Based on "the uncertainty of sales," Ruby Tuesday said it may become in violation of its debt covenants over the next year.

...more...

[burf]

23. First off,

Welcome back OZY! Second, thanks a bunch to UIA for the tremendous job he has done in your absence.

It seems to me that the news of Ruby Tuesday and of a buffet chain in Minnesota bankruptcy filing are indicators of what is to come in the near future for our economy. I read some news in a agricultural publication I get that restaurant business is down. The author was concerned how this would affect the beef business. But I think there is more to it.

If you look at the jobs numbers, a significant number are in the service sector, particularly bartenders and waitstaff. We are "trading" manufacturing jobs, with their good pay and benefits for less paying service positions. According to Paul Craig Roberts: Waitresses and bartenders accounted for 304,200, or 21% of the new service jobs last year and 29% of the net new jobs.

http://www.informationclearinghouse.info/article19019.htm
No Jobs for the New Economy or the Old

My question is where do the former manufacturing workers, now service workers, soon to be former service workers go? What is the next stop? We are far from out of the woods by any stretch of the imagination. No matter what the talking heads on CNBC and in Washington DC tell us.

The PCR article is a good read. He makes a lot of sense.

[ozymandius]

29. Thanks burf!

Anecdotal evidence means more when you, me and everybody deliver their observations from around the country. From my past as a wood artisan, dependent on small retailers and galleries to sell my products, I know that January is characterized by closures and announcements of closures. Much the same now, as then, I have been witness to more artisan galleries announcing their closure in traditionally upper middle class neighborhoods. There is also evidence of contraction in service sector spending beyond casual observation: I personally know the entrepreneurs who have decided not to open new businesses because the climate is all wrong. Their hiring at current businesses is down too.

This level of caution among businesses that primarily sell alcoholic beverages (typically known as a recession-proof industry) coupled with the closure of businesses that thrive on household discretionary spending speak in very dour terms about the state of the economy in my locale.

[DemReadingDU]

33. I like Paul Craig Roberts

I have wondered about the kind of jobs replacing manufacturing and computer programming jobs. There has been nothing except cheap service-type jobs. They do not pay well, thus they do not pay much in taxes either to support their community's police and fire departments. Then when service jobs are gone, what's left?

We need nurses, people are always going to be sick. We need police officers, there is always going to be crime. But not everyone wants or can afford to go to college to be able receive good paying jobs.

I don't know where the jobs will come from for the remainder of middle-class America to be able to live the 'American Dream'.

[Roland99]

40. Many muushroom-swiss burgers and Bud Lights in frosty glasses have I had there.

But, that was a while ago, a few jobs back. Used to leave one client site about 2hrs away and stop in one and eat before heading home.

[AnneD]

46. Morning Marketeers...

:donut:and lurkers.A special :hi: to our posting lurkers. I always love to here from you guys-it is a good barometer for the SWT. The article was very interesting AnnaB.
And Ozy-welcome back-but blaming it on the weather....:eyes: really. No ponies for you, you're starting to sound like an eCONomist.

The report from Ruby Tuesday and the sales reports back up what I have been noticing for the last year-folks have very little disposable income these days. From August on-it has really been marked. During the weekday, if we go out-there might be 3-8 other tables besides us. There is just no traffic. And I can't believe the markdowns in the stores. While in AZ. I bought hubby polo type shirts for $3-5 and paid $1-5 for shirts for me and the kiddo. My underwear was more but it was 1/2 to 3/4 off. But even at those prices-I didn't but much-but it sure was lonely in the stores.

I was worried that this rotten egg would hatch during a DEM presidency, but I am amazed at the rate of acceleration so I am feeling more confident that this disaster will be one more of Bush's legacy:evilgrin:They won't be able to pin the tail on this donkey-but they'll try.

Well, I have heads to check. Some folks look a head lice and see a nuisance-I look at head lice and see job security:cool:

Happy hunting and watch out for the bears.

[TalkingDog]

11. I welcome you back with a 5th rec. Did you bring us presents?

UIA made us all cookies. And let us stay up late and everything....



My Favorite Master Artist: Karen Parker GhostWoman Studios

[ozymandius]

14. sure do

:beer: :beer: :beer: :beer: :beer: :beer:

[TalkingDog]

17. Ha! I hope that's Guinness. n/t

My Favorite Master Artist: Karen Parker GhostWoman Studios

[AnneD]

49. Say...

you're the designated driver!

[ozymandius]

15. Oil slips further after overnight drop

VIENNA, Austria - Oil prices dipped Thursday, broadening an overnight decline on a U.S. government report that the country's stockpiles of gasoline grew last week.

That development — along with continued fears of a U.S. recession — outweighed bullish separate statistics from the U.S. Energy Department's Energy Information Administration showing that the nation's crude oil inventories fell to their lowest level in more than three years.

U.S. gasoline stocks rose 5.3 million barrels, or 2.6 percent, to 213.1 million barrels during the week ended Jan. 4. Analysts had forecast the report would show they had climbed only 1.6 million barrels.

Crude inventories, on the other hand, fell 6.8 million barrels, or 2.3 percent, to 282.8 million barrels. The drop was more than 8 times the 800,000 barrels that analysts surveyed by Dow Jones Newswires had forecast.

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

[ozymandius]

20. Retailers had weak sales in December

NEW YORK - An already weak holiday shopping season turned out to be even worse than expected for many of the nation's retailers, who reported Thursday they had disappointing sales results for December. The poor performance raised more concerns about consumer spending, and in turn, the health of the economy.

The weak results came from across all retail categories, and prompted many stores to lower their fourth-quarter earnings forecasts. Particularly hard hit were apparel sellers including Limited Brands Inc. and AnnTaylor Stores Corp., as well as department stores including Macy's Inc. Among the few bright spots was Wal-Mart Stores Inc., which posted results that exceeded Wall Street expectations, as it benefited from shoppers trading down to cheaper stores amid higher gas prices and a slumping housing market.

....

According to a preliminary sales tally by Thomson Financial, 19 retailers missed December projections, while nine beat forecasts and one met expectations. The tally is based on same-store sales, or sales at stores open at least a year, considered a key indicator of a retailer's health.

....

A big worry is the weakening of the job market,which had helped prop up spending for most of 2007. On Friday, the Labor Department's jobs report showed that hiring practically stalled in December, driving the nation's unemployment rate up to a two-year high of 5 percent.

Macy's posted a 7.9 percent drop in same-store sales, worse than the 6.5 percent decline anticipated. For the November-December period combined, Macy's same-store sales were down 1.1 percent.

http://news.yahoo.com/s/ap/20080110/ap_on_bi_ge/retail_sales

[girl gone mad]

30. Looks like..

that's going to leave a mark!

[UpInArms]

21. 9:34 EST and opening deeply in the red

Dow 12,645.16 90.15 (0.71%)
Nasdaq 2,447.92 26.63 (1.08%)
S&P 500 1,396.67 12.46 (0.88%)
10-Yr Bond 3.808% 0.017

NYSE Volume 92,778,054.688
Nasdaq Volume 65,233,359.375

[ozymandius]

22. ka-boom

9:33
Dow 12,643.53 Down 91.78 (0.72%)
Nasdaq 2,448.31 Down 26.24 (1.06%)
S&P 500 1,396.37 Down 12.76 (0.91%)
10-Yr Bond 3.8060% Up 0.0150
NYSE Volume 83,894,910
Nasdaq Volume 61,188,000

09:00 am : S&P futures vs fair value: -10.5. Nasdaq futures vs fair value: -19.8. The market is poised for a weak start. Overall, December same-store sales have been worse than expected, although the largest retailers posted better than expected numbers. There positive surprises include sales that topped estimates at Wal-Mart (WMT) and Costco (COST). Retailers are down 8.5% in 2008.

08:34 am : S&P futures vs fair value: -9.4. Nasdaq futures vs fair value: -17.3. Futures drift lower despite a better than expected initial claims report. Initial jobless claims for the week ended Jan 5 came in at 322K, lower than the expected reading of 340K. The market will be paying close attention to Ben Bernanke’s speech on the economic outlook at 13:00 ET. Market participants are hoping to get some clues about future Fed policy. Fed funds futures suggest a 26% chance of a 50 basis point rate cut with the rest of the bets on a 25 basis point cut.

[UpInArms]

25. Stocks open lower amid credit worries (Capital One warning)

http://news.yahoo.com/s/ap/20080110/ap_on_bi_st_ma_re/wall_street

NEW YORK - Wall Street slid in early trading Thursday after a profit warning from Capital One Financial Corp. raised concerns about a spread of the turmoil in the credit markets.

The credit card issuer warned that its 2007 profit will fall short of previous expectations because of increased loan delinquencies and additions to its legal reserves in the fourth quarter. Capital One said it is taking a $1.9 billion provision for loan losses in the fourth quarter, including about $1.3 billion in charge-offs.

The announcement confirmed fears of some analysts that the erosion of the subprime mortgage market has hurt other credit classes. It also renewed jitters that slowing economic growth could hurt upcoming corporate earnings reports more than previously thought.

Federal Reserve Chairman Ben Bernanke might give a clue about interest rates in the U.S. during a speech on monetary policy scheduled for 1 p.m. EST. His speech comes one day after Goldman Sachs rattled some investors by forecasting a recession for 2008.

...more...

[UpInArms]

26. Capital One cuts 2007 earnings forecast

http://news.yahoo.com/s/ap/20080110/ap_on_bi_ge/capital_one_outlook?_ylt=AlNJX5iq8Zt827SbAy7CiWlv24cA

CHARLOTTE, N.C. - Capital One Financial Corp. said Thursday that its 2007 earnings will fall short of its previous expectations because of increased loan delinquencies and additional legal reserves in the fourth quarter.

The news from the McLean, Va.-based credit card company is the latest sign of turmoil in the nation's credit markets, and confirmed fears by some analysts that the collapse of the subprime mortgage market has hurt other credit classes.

It also renewed jitters that slowing economic growth may hurt upcoming corporate earnings reports more than previously thought.

It also drove Capital One shares down almost 8 percent in premarket trading, where they fell $3.45 to $39.90 which would be below their previous 52-week low of $41.23.

Capital One, a credit card issuer that continues to expand into retail banking, issued a statement just after midnight saying it expects to report fourth-quarter profit of 60 cents per share and full-year earnings of about $3.97 per share, below its prior forecast of "about $5 per share."

The company said it is taking a $1.9 billion provision for loan losses in the fourth quarter, including about $1.3 billion in charge-offs. It is also adding about $650 million to its charge-off allowance because of recent delinquencies in its consumer lending businesses and "continued deterioration" of approximately $700 million of home equity lines of credit originated by its GreenPoint Mortgage unit, which shut down in August.

The company said it now expects charge-offs of about $5.9 billion in 2008 amid expectations that the U.S. economy will be weaker. That's up from the $4.9 billion to $5.5 billion Capital One predicted in November.

...more...

[Deny and Shred]

24. Not to cast doubt or whatnot, but your DOW figures

12,735
- 10,578
----------
2,157

I think you used 10,735 not 12,735 in your calculation. Using your figures DOW is up over 20%.
DOW only measures the biggest 30 corps. Given the deregulation, 'free trade' agreements, tax breaks, etc. all slanted in favor of their success by BushCo, this isn't all that impressive. Nothing like the jump from roughly 3,500 to 11,000 from Jan 93 - Jan 2001 under Clinton.

[ozymandius]

32. 9:57 numbers

Dow 12,686.45 Down 48.86 (0.38%)
Nasdaq 2,455.81 Down 18.74 (0.76%)
S&P 500 1,400.11 Down 9.02 (0.64%)
10-Yr Bond 3.801% Up 0.01
NYSE Volume 404,642,062.5
Nasdaq Volume 208,470,937.5

[UpInArms]

39. 10:07 EST and almost all better now!

Dow 12,730.51 4.80 (0.04%)
Nasdaq 2,464.44 10.11 (0.41%)
S&P 500 1,406.21 2.92 (0.21%)
10-Yr Bond 3.814% 0.023

NYSE Volume 564,561,000
Nasdaq Volume 311,840,406.25

10:00 am : Stocks bounce off their lows, with defensive sectors outperforming on a relative basis. Strikingly, the S&P 500 Retailing Index has rebounded into positive territory (+0.3%).

Of the eight sectors trading lower, Energy (-1.6%) is the main laggard as it slides in conjunction with crude oil. Crude is down 2.1% to $93.70 per barrel. Once again, financials (-1.0%) are under selling pressure.

Just hitting the wires, November wholesale inventory levels rose 0.6%, compared to the expected 0.4% rise. Growth was flat in October.DJ30 -44.71 NASDAQ -17.05 SP500 -7.59 NASDAQ Dec/Adv/Vol 1729/630/134 mln

[Roland99]

41. Hallelujah!

[Hugin]

42. Those pumps have to overcome tons of head pressure on cold days...

*tsk*


Man, I can hardly wait for my FIVE.HUNDRED.DOLLARS!

:drool:



(Seriously, I'll probably donate it to some worthy charity... Just like I did the last one.)

[Roland99]

47. 10:45:am - Back to paper cuts...

Dow 12,732.62 -2.69
Nasdaq 2,462.10 -12.45
S&P 500 1,406.64 -2.49
10 YR 3.84% 0.05
Oil $93.95 $-1.72
Gold $885.70 $4.00

[UpInArms]

43. More synthetic CLOs seen after Carlyle deal debut

http://www.reuters.com/article/bondsNews/idUSL1066751020080110?sp=true

LONDON, Jan 10 (Reuters) - Bankers expect the recent 300 million euro ($440 million) debut of a managed synthetic CLO in Europe to be followed by similar deals in the first quarter, even while demand is dormant for most complex credit products.

After Carlyle Group closed its synthetic collateralized loan obligation (CLO), managed by Goldman Sachs (GS.N: Quote, Profile, Research), at the end of December, more banks and investors are considering putting together synthetic CLOs.

Among others, Morgan Stanley (MS.N: Quote, Profile, Research), a leader in the loan credit default swaps (LCDS) market, is working on a deal, and Carlyle and Goldman may extend the first transaction by another 600 million to 900 million euros, bankers said.

Synthetic CLOs are portfolios of LCDS, which are bets on whether companies will default on bank loans that were used mostly to finance leveraged buyouts.

These portfolios are divided into slices by degree of risk. The riskiest tranche is exposed to the first few percent of losses from any LCDS in the pool, and the safest AAA-rated tranche at the top loses only after the lower tranches go under.

<snip>

Carlyle took advantage of a seller's market in protection in the credit crisis. Many European banks have sought to buy protection to hedge their holdings of leveraged loans.

...more...

[Hugin]

44. More hoodoo voodoo economics from Carlyle?

Why am I not surprised? :yawn:

[Robbien]

45. Now they are slicing and dicing bets?

No underlying collateral, just bets. Bets being sliced and diced and lumped together and then the package is slathered with a little lipstick and sold.

How does one decide if a sliver of a bet is good or not and decide what it is worth. Credit rating agencies should hang their heads in shame.

[AnneD]

52. I don't know if you remember Robbien....

but some months ago, I figured out that Carlyle was flipping companies via IPO just like investors did homes. They strip all assets and borrow against these businesses. The companies look good on paper but the now have more debt than they did (Carlyle takes a profit up front and pays themselves). Then they offer and IPO and Wall Street with their money-buy hook line and stinker at an outrageous price (again, another profit for Carlyle).

What I don't think they saw coming was the credit crisis. I don't think they want to hold these properties too long. I don't think they will go under, but I think they will squirm a while. Carlyle likes to take these companies off the market (make them private) because they like to do their dirty business 'in the dark alleys and trusted woods' as it were-far from public scrutiny and government rules. After they have laundered the books, they offer it as an IPO. And those WS schmucks are so stupid to fall for this.

[Robbien]

59. I do remember that interesting discussion AnneD

but if I am reading this right, this new investment vehicle involves bets on whether the value of those raped and pillaged companies will go down. And not just bets, but taking those bets, slicing and dicing them and turning the bets into an investment vehicle of its own.

Synthetic CLOs are portfolios of LCDS, which are bets on whether companies will default on bank loans that were used mostly to finance leveraged buyouts

So Carlyle raped and pillaged, then repackaged into investment vehicles and sold, then placed bets on the companies bad condition and are now selling off their bets in a fancy new packaging. If I am reading this right.

[AnneD]

61. I'm going to have to...

'cogitate' on this one.

Several things are not adding up. Why is it to their advantage-they are the ones usually buying and they have a chunk of change? That would be like a player betting against himself with a bookie-:think: BUT, then if they bet against the folks that bought Carlyl IPO's....they are getting some double dutch door action.

They are flipping the companies and then taking out like a 'dead employee' insurance policy against the new 'homeowner'. When the new stupid homeowner chokes on the 'ARM' loan, they get even more money on the backend of the deal. Damn, that is pretty clever. And WS is loaded with suckers that are greedy, much like those 'real estate investors' that are in foreclosure now. I guess the moral is-when dealing with Carlyle....don't. Be sure to count your finger, toes, wallet, and crotch after the meeting.

Thanks Robbien......

[antigop]

50. (Tony) Blair joines JP Morgan as $1m a year adviser

http://www.guardian.co.uk/business/2008/jan/10/blairjpmorgan

The US investment bank JP Morgan has signed up Tony Blair as a part-time senior adviser, on a salary said to exceed $1m (£500,000) a year.

The former prime minister would provide "strategic advice and insight on global political issues and emerging trends", the company said last night.

Blair, whose contacts book could prove very valuable in the private sector, has indicated this could be just the first in a series of private-sector roles. "I have always been interested in commerce and the impact of globalisation. Nowadays, the intersection between politics and the economy in different parts of the world, including the emerging markets, is very strong," he told the Financial Times.

[Roland99]

51. 11:42am - That paper cut has worsened...

Dow 12,694.09 -41.22
Nasdaq 2,453.94 -20.61
S&P 500 1,399.14 -9.99
10 YR 3.82% 0.03
Oil $93.25 $-2.42
Gold $885.40 $3.70

[specimenfred1984]

53. Today's fraud/prop/intervention or "bargain hunters"? You decide

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

[UpInArms]

54. Yee Freakin' Haw!!! 1:04 Bernanke casts pearls before the swine (and they gobble it up)

Dow 12,834.80 99.49 (0.78%)
Nasdaq 2,485.10 10.55 (0.43%)
S&P 500 1,415.82 6.69 (0.47%)
10-Yr Bond 3.82% 0.029

NYSE Volume 2,447,990,000
Nasdaq Volume 1,357,585,125

12:35 pm : The stock market spikes into positive territory after Bernanke statements come across Bloomberg. Currently, the major indices are off their highs, but remain in the green.

Bernanke said additional policy easing may well be necessary, and that the Fed stands ready to take "substantive additional action." These headlines hit before Bernanke's scheduled speech at 1:00 ET. The comments are likely from a prepared text, pre-released to Bloomberg.

The Bernanke statements suggest further Fed easing is very likely, causing the dollar to slide. Meanwhile, gold made a fresh intraday high of $893.60 per ounce.

Separately, National Bureau of Economic Research President Martin Feldstein said a U.S. recession is “not a sure thing,” but the odds are now over 50%, according to Reuters.DJ30 +88.52 NASDAQ +5.91 SP500 +5.87 NASDAQ Dec/Adv/Vol 1668/1200/981 mln NYSE Dec/Adv/Vol 1802/1253/660 mln

[UpInArms]

56. Barf Alert - line items regarding Chopper Ben

03. Bernanke: Banks have become more restrictive in lending
12:31 PM ET, Jan 10, 2008 - 37 minutes ago

04. Bernanke says banking system remains sound
12:30 PM ET, Jan 10, 2008 - 38 minutes ago

05. Bernanke says market strains pose risk to broader economy
12:30 PM ET, Jan 10, 2008 - 38 minutes ago

07. Bernanke says financial market woes dampening growth
12:29 PM ET, Jan 10, 2008 - 39 minutes ago

08. Dollar falls vs euro, yen as Bernanke hints at rate cuts
12:29 PM ET, Jan 10, 2008 - 39 minutes ago

09. Bernanke says econ outlook has worsened in recent days
12:28 PM ET, Jan 10, 2008 - 40 minutes ago

10. Bernanke: FOMC alert for signs weak housing spilling over
12:27 PM ET, Jan 10, 2008 - 41 minutes ago

11. <$INDU> Dow industrials up more than 100 pts after Bernanke comments
12:27 PM ET, Jan 10, 2008 - 41 minutes ago

12. Bernanke says economy growing at moderate pace at moment
12:27 PM ET, Jan 10, 2008 - 41 minutes ago

13. CORRECT: FCC commissioners sign off on Clear Channel buy:WSJ
12:25 PM ET, Jan 10, 2008 - 43 minutes ago

14. Bernanke says inflation expectations anchored
12:25 PM ET, Jan 10, 2008 - 43 minutes ago

15. Bernanke says financial situation remains fragile
12:24 PM ET, Jan 10, 2008 - 44 minutes ago

16. Bernanke says Dec. job report was disappointing
12:24 PM ET, Jan 10, 2008 - 44 minutes ago

17. Bernanke says FOMC must be 'exceptionally alert'
12:23 PM ET, Jan 10, 2008 - 45 minutes ago

18. Bernanke says 'substantive' rate cuts may be needed
12:22 PM ET, Jan 10, 2008 - 46 minutes ago

19. Bernanke says rate cuts would be insurance on downside risks
12:22 PM ET, Jan 10, 2008 - 46 minutes ago

[AnneD]

57. Oh no.....

my ass is twitching as I read this. That is not a good sign.

Edited to add that Chopper Ben's one trick pony is looking awfully tired.

[Robbien]

60. I listened carefully to Bernanke and it really didn't seem very positive

He kept going on and on about all the bad stuff and saying everything so far really hasn't turned the situation around.

The lasting impression I got is that Bernanke was saying the banks need to get off the dime and start working out the situation themselves and stop relying on the Fed.

[UpInArms]

64. Bernanke's bluntness seems to assure a big cut

http://www.reuters.com/article/bondsNews/idUSN1018778720080110

CHICAGO (Reuters) - Weeks ahead of a key policy-setting meeting, Federal Reserve Chairman Ben Bernanke on Thursday left little doubt the central bank will slash interest rates to bolster the sagging economy,

Speaking in Washington, Bernanke was unexpectedly blunt about the U.S. economy's worsening outlook, while adding that the Fed is "not currently" forecasting a recession.

He assured markets that the Fed stands ready to take "substantive additional action as needed" to support growth and would "act in a decisive and timely manner."

"Bernanke's comments will be regarded as unequivocally dovish," said Marc Chandler, senior currency strategist at Brown Brothers Harriman in New York.

So much for the poker face that some pundits had expected from Bernanke ahead of scheduled testimony on the economy to the House of Representatives Budget Committee next Thursday and with a series of key economic numbers set for release.

Traders responded decisively, as indicated by the short-term interest rate futures that measure market expectations on Fed policy.

...more...

See! That "bad" news is really GOOD news!

[ozymandius]

80. Maybe if I gained 6,000 pounds, it would mean good news for the tent makers.

Just saying. Sure it's morbidly unhealthy. But then Chopper Ben could then have the chance to say something nice about my new physique and, maybe, how we should all be so ambitiously huge. (For the sake of tent stocks...)

[Roland99]

55. 1:06pm - Bernanke says "rate cuts". Markets JUMP FOR JOY!!

Dow 12,822.45 +87.14
Nasdaq 2,484.11 +9.56
S&P 500 1,414.78 +5.65
10 YR 3.85% +0.06
Oil $94.45 $-1.22
Gold $892.80 $11.10


Chopper Ben has signaled the Fed may make further aggressive rate cuts. The markets LOVE that news.

Uh, what happened after the last two rate cuts? That's right. Sucker rallies that fizzled out after a day or two. So, what will another rate cut get us? Short-term euphoria and a further depressed dollar, further sending American consumers into the crapper.

But, hey, as long as global conglomerates are making money in the international markets and the stock indexes keep going up that must mean the economy is strong, right?!?!?!



:banghead:

[Demeter]

58. Juicy Bits from Naked Capitalism

http://by142w.bay142.mail.live.com/mail/ReadMessageLight.aspx?Aux=4%7c0%7c8CA21B0431FE360%7c&FolderID=91e6feb2-0c7a-423f-a591-4ded57a0da19&InboxSortAscending=False&InboxSortBy=Date&ReadMessageId=240896f3-85cf-4aa0-92ca-29144417ce2e&n=1991874581


"I had too much to drink with someone who is terribly plugged in (security clearances AND knows tons of people in academia and the officialdom personally, both here and overseas).

Unfortunately, I can't use many of the specifics he conveyed, but he is a very upbeat sort by temperament but also has been studying the banking/credit mess. He sees us going down the Japan path. Banks will not be technically bankrupt, but will have so many bad assets on their balance sheets, and will have taken hits to their equity bases, that 18 months from now they will be unable to make new loans. They will be quasi nationalized. BTW he said this in a completely evenhanded fashion, as if he was giving a weather report.

This, mind you, comes from someone who has written frequently for the American Enterprise Institute and tells me the Treasury and the Fes are working on this scenario now. This is far more dire than any forecast either yours truly, a constitutional skeptic, or even uberbears like Nouriel Roubini, have been putting forward."


Housing Futures Suggest Recovery Won’t Be Seen Until 2011 Housing Wire. This shouldn't be a surprise; housing recessions generally last 15 quarters.


Blair takes advisory position at JPMorgan Financial Times. I am sorry, I am an old fart, but this is reprehensible. Isn't making speeches for hundreds of thousands of pounds and book deals (bad) enough? Formal private sector jobs, even advisory roles, by top government officials, should be prohibited for at least two years (four would be better). Any shorter timeframe creates conflicts of interests.

[UpInArms]

63. 3:37 EST and heading for that 13k sucker number one more time

Dow 12,902.84 167.53 (1.32%)
Nasdaq 2,498.31 23.76 (0.96%)
S&P 500 1,426.52 17.39 (1.23%)
10-Yr Bond 3.887% 0.096

NYSE Volume 4,391,101,500
Nasdaq Volume 2,267,153,750

3:00 pm : The major indices are trading at or near their best levels of the session with eight of the ten sectors back in positive territory. Only utilities (-0.6%) and energy (-0.9%) remain in the red. Financials have soared 3.0% on the Countrywide (CFC 32.55, +6.52) merger reports. The sector was down 2% at its session lows.

The Dow Jones Transportation Average (+3.5%) is handily outperforming the broader market. UPS (UPS 70.33, +3.62) is providing leadership after being upgraded to Outperform from Peer Perform at Bear Stearns. The firm also set a price target of $85, citing it believes UPS is well positioned to firm up rates once the freight economy improves. UPS also announced its Board authorized an immediate increase in the funds available for stock repurchases from $2 billion to $10 billion.

Airlines are also providing support, as the Amex Airline Index soars 13%. The strength is due to a Wall Street Journal report that states Delta Air Lines (DAL) is going to pursue formal merger discussions with both Northwest Airlines (NWA 15.00, +2.99) and UAL (UAUA 32.55, +6.52).DJ30 +157.52 NASDAQ +17.35 SP500 +14.60 NASDAQ Dec/Adv/Vol 1240/1720/1.94 bln NYSE Dec/Adv/Vol 1227/1898/1.33 bln

[citizen snips]

66. Sector Snap: Airline Shares Head Higher

NEW YORK (AP) -- Airline shares rallied Thursday following a string of heavy losses, after oil futures fell and a prominent industry analyst predicted share prices will bounce back.

The Amex Airline Index, which had been wallowing at its lowest level in years, surged 8 percent to 31.56 in morning trading. Broader indexes fell. The Dow Jones industrial average declined 0.2 percent to 12,708.07.

Oil prices tumbled amid growing concerns over economic weakness in the U.S. Light, sweet crude for February delivery fell $1.52 to $94.15 a barrel on the New York Mercantile Exchange. Prices dipped as low as $93.30 earlier in the session.

Airline stocks often move inversely to oil prices because of the industry's heavy exposure to fuel costs. Investors have also been worried that a weaker economy could hurt demand for air travel.

more...
http://biz.yahoo.com/ap/080110/apfn_airlines_sector_snap.html

[citizen snips]

67. American Express Warns on 2008

NEW YORK (AP) -- American Express Co. expects slower spending and more missed payments on credit card bills to hamper its profit throughout 2008, the company said Thursday.

While rich people are still doing fine, American Express said the slumping housing market has begun to take its toll on the American consumer. Charges on the company's roughly 84.7 million cards began to tail off in December, American Express said, and more clients failed to repay their debts.

The company plans to reserve $440 million for the fourth quarter, preparing for loans that are currently overdue.

American Express believes it earned 70 cents per share to 72 cents per share in the fourth quarter, which represents a decline from the fourth quarter of 2006.

more...
http://biz.yahoo.com/ap/080110/american_express_outlook.html

[citizen snips]

68. Gold Prices Soar to New All-Time High

NEW YORK (AP) -- Gold eased from a new record Thursday to end higher after Federal Reserve Chairman Ben Bernanke pledged to cut interest rates, further undermining the dollar and boosting demand for the metal as a safe investment.

Other precious metals ended mixed, and agricultural futures fell.

Bernanke said the central bank was ready to act aggressively to prevent the economy, weakened by turmoil in the housing and credit markets, from sliding into a recession.

Some economists predict the Fed will slash its key interest rate by a half percentage point it meets Jan. 29-30. Others expect a more modest quarter percentage point cut, in light of high energy prices and inflation worries.

more...
http://biz.yahoo.com/ap/080110/commodities_review.html?.v=4

[citizen snips]

69. Wal-Mart Among Market Movers Thursday

NEW YORK (AP) -- Stocks that were moving substantially or trading heavily Thursday on the New York Stock Exchange and Nasdaq Stock Market:

NYSE

Wal-Mart Stores Inc., up $1.50 at $48.40

Sales at established stores rose 2.7 percent in December, above Wall Street expectations, boosted by strong sales of food and electronics.

Alcoa Inc., up 19 cents at $31.44

more...
http://biz.yahoo.com/ap/080110/wall_street_stocks.html?.v=4

[citizen snips]

70. DJIA Leaders & Laggards: GM INTC

NEW YORK (AP) -- Shares of General Motors Corp. rose on Thursday and helped pull the Dow Jones industrial average to a higher close, after the auto maker said sales in China rose 19 percent from a year ago.

The blue chip index rose 117.78 points to 12,853.09.

GM shares rose 90 cents, or 4 percent, to close at $23.68.

Wal-Mart Stores Inc. reported stronger December same-store sales than analysts anticipated, and the retailer's stock gained $1.50, or 3.2 percent, to $48.40.

more...
http://biz.yahoo.com/ap/080110/djia_laggards.html?.v=1

[citizen snips]

71. Sector Glance: Telecom

NEW YORK (AP) -- Shares of most telecommunications companies climbed Thursday along with the broader market, with Verizon Communications Inc. up nearly 3 percent after saying its business is in good shape -- despite the economic slowdown.

Two days after AT&T Inc. said it is seeing some weakness in its broadband and wireline segments from the slowing economy, Verizon's president and chief operating officer, Dennis Strigl, said his company is doing fine.

Speaking at a conference in Phoenix, Strigl said its access line business is in good shape, and on the broadband side Verizon is feeling more heat from competition than from the economy.

AT&T's shares also climbed, and shares of Sprint Nextel Corp. jumped more than 4 percent.

more...
http://biz.yahoo.com/ap/080110/sector_glance_telecom.html?.v=1

[citizen snips]

72. Sector Glance: Giant Interactive Rises

NEW YORK (AP) -- Chinese online gaming stocks mostly rose Thursday, with Giant Interactive Group Inc.'s shares gaining ground after the company said it obtained an exclusive license to run the new multiplayer game "Empire of Sports" in China, Hong Kong, Taiwan and Macau.

Giant said Thursday that it received the license from Switzerland-based Empire of Sports Ltd. The license expires in September 2011; financial terms of the agreement were not disclosed.

"Empire of Sports" lets players compete against each other in a variety of virtual international sports events. Sports games available in "Empire of Sports" will include basketball, tennis and skiing, Giant said.

The sports gaming genre is mostly an untapped market in China, Giant president Wei Liu said in a statement.

more...
http://biz.yahoo.com/ap/080110/sector_glance_internet.html?.v=1

[citizen snips]

73. Sector Wrap: Mortgage Lenders

NEW YORK (AP) -- Shares of mortgage lenders spiked Thursday following a report that Bank of America Corp. is negotiating to buy Countrywide Financial Corp.

The Wall Street Journal, citing two people familiar with the matter, reported Bank of America is in advanced talks to buy the Calabasas, Calif.-based lender, whose market value has plummeted from more than $25 billion less than a year ago to around $3 billion earlier this week.

The report fueled hope that buyers may begin sifting through distressed mortgage stocks looking to scoop up bargains.

Countrywide's stock kited $2.63, or 51.4 percent, to end trading at $7.75, after earlier climbing as high as $8.91. The stock is still down for 2008, and even after Thursday's spike trades at a fifth of its price from a year ago.

more...
http://biz.yahoo.com/ap/080110/mortgage_lenders_sector_wrap.html?.v=1

[citizen snips]

74. Treasurys Sell Off As Stocks Get a Bid

NEW YORK (AP) -- Treasury prices fell sharply Thursday after stocks advanced on news that Bank of America Corp. might buy struggling mortgage lender Countrywide Financial Corp.

The news was viewed as a sign that troubles in the hard-hit mortgage and housing sectors may be contained soon. The sense that economic relief may be imminent was furthered when Federal Reserve Chairman Ben Bernanke indicated the Fed is very likely to cut rates again.

The Fed chief said the central bank was prepared to act aggressively to rescue a weakening economy. "We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks," he said.

Initially, both the Treasury and stock markets rallied on the news, but the Treasury gains evaporated as investors decided to concentrate their buying in equities. Although investors are eager to see cheaper money, the fact that the economy needs a great deal of stimulation from the Fed is a concern.

more...
http://biz.yahoo.com/ap/080110/bonds.html?.v=6

[citizen snips]

75. Toyota in Tight Race for No. 1 With GM

TOKYO (AP) -- Toyota said Thursday that it sold 9.37 million vehicles worldwide in 2007, which may have been enough to put it ahead of General Motors in the race for the "world's biggest automaker," a title GM has held for 76 years.

Toyota Motor Corp.'s group companies sold 7.1 million vehicles overseas last year, a 10 percent jump from the previous year, offsetting a 4 percent decline in sales in Japan at 2.26 million vehicles, the automaker said in a statement.

GM has not yet given its annual sales tally but earlier estimated 2007 sales would come to 9.3 million vehicles.

General Motors Corp. spokesman John McDonald would not comment on Toyota's announcement. The company said it will release preliminary global sales numbers on Jan. 23.

more...
http://biz.yahoo.com/ap/080110/japan_toyota.html?.v=6

[citizen snips]

76. Sector Snap: Gold Producers Rise

NEW YORK (AP) -- Shares of most gold producers rose Thursday afternoon after Federal Reserve Chairman Ben Bernanke pledged to cut interest rates, further undermining the weak U.S. dollar and sending the price of the precious metal to a record high.

An ounce of gold for February delivery on the New York Mercantile Exchange jumped to $897.30, an all-time high, before settling back to $893.60, up $11.90.

After the chairman's comments, the 15-nation euro rose to $1.4796 in afternoon trading, further eroding the dollar. The dollar and the price of gold usually move inversely, as each is considered a hedge against the other.

Gold prices do not appear to be easing their meteoric rise. While its price has not hit an inflation-adjusted high of $2,231.86 an ounce to surpass the 1980 record, several analysts are already predicting the price could breach the $1,000 mark soon.

more...
http://biz.yahoo.com/ap/080110/gold_sector_snap.html?.v=1

[citizen snips]

77. Nasdaq 100 Leaders & Laggards: UAUA TEVA

NEW YORK (AP) -- Shares of United Airlines operator UAL Corp. rose and helped lift the Nasdaq 100 index to a higher close on Thursday, after a JPMorgan analyst upgraded the stock on a recent sell-off.

UAL soared $6.16, or 23.7 percent, to $32.19.

The index, which includes 100 of the largest nonfinancial securities listed on the Nasdaq Stock Market, advanced 4.44 points to 1,953.64. The broader Nasdaq composite rose 13.97 to 2,488.52.

Telecommunications equipment provider Tellabs Inc. rose 64 cents, or 12.3 percent, to $5.84.

more...
http://biz.yahoo.com/ap/080110/nasdaq_100_laggards.html?.v=1

[citizen snips]

78. Sector Glance: Chip Stocks Down

NEW YORK (AP) -- Shares of major semiconductor companies fell Thursday, as New York Attorney General Andrew Cuomo launched an investigation into the business practices of the world's largest chip maker.

Cuomo said he is investigating the company for possible violations of state and federal antitrust laws. Cuomo issued subpoenas seeking information on whether Intel coerced customers into not buying data processing products from competitor Advanced Micro Devices Inc.

The investigation was good news for AMD, which has declined 72.4 percent in the last 52 weeks.

Meanwhile, American Technology Research analyst Doug Freedman said the analog market will likely be subdued and cautious in the first quarter as economic difficulties continue and "customers process the mixed holiday shopping season."

more...
http://biz.yahoo.com/ap/080110/chips_sector_glance.html?.v=1

[ozymandius]

79. Call it a day. Jeebus at the volumes!

Dow 12,853.09 Up 117.78 (0.92%)
Nasdaq 2,488.52 Up 13.97 (0.56%)
S&P 500 1,420.33 Up 11.20 (0.79%)
10-Yr Bond 3.8870% Up 0.0960
NYSE Volume 5,181,643,000
Nasdaq Volume 2,656,324,250

4:20 pm : Thursday was another wild session on Wall Street. Stocks opened on a low note on warnings from a major credit card lender and weak retail sales, but managed to finish with strong gains after a report suggested a major financial deal was in the works. A speech by Fed Chairman Ben Bernanke added to the volatility.

The Dow, Nasdaq and S&P ended up 0.9%, 0.8%, and 0.6%, respectively. The gains are more impressive when considering the Dow, Nasdaq and S&P were down 0.8%, 1.1% and 1.0% respectively, at their lows of the day.

Stocks were in the red in late trade and then soared at 14:30 ET on a Wall Street Journal report that Bank of America (BAC 39.30, +0.56) is in advanced talks to acquire Countrywide (CFC 7.75, +2.63). The report said it is not clear how fast a deal will be struck, and it is possible that an agreement may be delayed or fall apart, according to the Journal's sources. A CNBC reporter said she expected the deal to happen very shortly, with an announcement probably by the end of the week. Neither company has commented on the reports.

Countrywide's stock spiked 51% on the news, and the financial sector (+2.3%) finished as the leader. The 2.3% gain is even more striking, considering financials were down 2% at their lows of the day. The thrifts & mortgages group gained 8.2%.

The Countrywide report overshadowed Fed Chairman's Bernanke's speech on the economy at 13:00 ET, which most thought was going to be Thursday's headliner. Bernanke said additional policy easing may be necessary, and that the Fed stands ready to take "substantive additional action." Stocks spiked as the prepared text hit the wires, but fell back into negative territory by the time the Countrywide news broke.

Fed funds futures indicate an 88% chance of a 50 basis point rate cut, up from the pre-Bernanke speech level of 74%. The increased bets of a rate cut, along with the Bank of England and the European Central Bank standing pat on their rates, caused the dollar to slide 0.67%.

Weighing on early sentiment, Capital One (COF 42.92, -0.43) reduced its profit outlook due to increased loan delinquencies and additional legal reserves established in the fourth quarter. Its stock traded down as much as 10.4%, but managed to pare much of its losses as it rose in conjunction with other financials.

The majority of retailers reported disappointing same-store sales, although a few of the larger companies reported better than expected numbers. Some names that topped expectations include Wal-Mart (WMT 48.32, +1.42), Target (TGT 51.55, +1.63) and Costco (COST 69.86, +2.59). The S&P 500 Retailing Index finished 0.8% higher.

On the economic front, jobless claims for the week ended Jan. 5 unexpectedly slid to 322,000 from 337,000. This data are from a shortened holiday week so some may dismiss it as aberrant. However, it does indicate companies are not laying people off at a rate that is consistent with recessions.

Eight sectors traded higher, led by financials (+2.3%) and telecom (+1.7%). Energy (-0.5%) was a laggard as oil prices fell 1.5% to $94.25 per barrel.DJ30 +117.78 NASDAQ +13.97 NQ100 +0.2% R2K +1.1% SP400 +0.9% SP500 +11.20 NASDAQ Dec/Adv/Vol 1172/1815/2.55 bln NYSE Dec/Adv/Vol 1032/2128/1.82 bln