STOCK MARKET WATCH, Tuesday April 29

[ozymandius]

Source: du

STOCK MARKET WATCH, Tuesday April 29, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 267
DAYS SINCE DEMOCRACY DIED (12/12/00) 2655 DAYS
WHERE'S OSAMA BIN-LADEN? 2380 DAYS
DAYS SINCE ENRON COLLAPSE = 2671
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 April 28, 2008

Dow... 12,871.75 -20.11 (-0.16%)
Nasdaq... 2,424.40 +1.47 (+0.06%)
S&P 500... 1,396.37 -1.47 (-0.11%)
Gold future... 895.50 +5.80 (+0.65%)
30-Year Bond 4.57% -0.02 (-0.52%)
10-Yr Bond... 3.84% -0.03 (-0.80%)






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. Market WrapUp: Paper Skyscrapers

The long road to fiscal responsibility
BY TONY ALLISON

The numbers thrown around during the ongoing credit crisis are so large; they effectively lose their meaning to most of us. I would like to put the millions, billions and trillions in some perspective by referring back to an article I wrote years ago (The Debt Bomb) about our growing debt problems. Unfortunately our debt has only worsened since 2004, and many of the issues are even more relevant today. The example provides some clarity to how large one trillion is, and how long a road we must still travel to become a fiscally responsible nation again.

.....

While it took 200 years of American history to reach one trillion dollars in national debt, it took only six years to build our debt from five trillion to six trillion dollars. Incredibly, in less than two years the National Debt soared another trillion dollars, reaching seven trillion in January 2004. By September 2007, the National Debt surpassed nine trillion dollars. Do you detect a frightening trend here? The curve is accelerating as new debt is rapidly created and annual interest payments compound, already exceeding $400 billion. At the current rate, each and every day adds $1.5 billion more, or 1 1/2 new paper skyscrapers to the thousands already inhabiting our National Debt skyline. Printing more dollars appears to be the only way in the short to medium term to keep the ship of state afloat. Looming longer term this century, beyond the current National Debt, are unfunded federal mandates for Social Security and Medicare that exceed $70 trillion. These skyscrapers may one day reach the moon.

.....

Debt Compounds on Debt

The debt is not going to magically go away. Debt compounds on debt and just grows faster. And a severe recession will mean less tax revenues, and yes, even more debt. This problem was decades in the making and will not be solved easily, quickly or without pain. Perhaps that’s part of the problem itself. During the credit expansion bubble of the last 25 years the culture seems to have evolved to the point where everyone feels deserving of cars, houses, clothes and travel, right now, without the onerous task of earning or saving the money first.

Politicians, ever diligent to the wind direction, have become terrified of even suggesting belt tightening or self-discipline in any form. They have rapidly expanded government spending without regard to future consequences. “It’s morning in America” they proclaim. We are such a great nation that we no longer have to manufacture anything, or even save for a rainy day. “We are now a consumer economy, so do the patriotic thing and go shopping!” (on borrowed money of course).

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

[ozymandius]

2. Today's Report

10:00 Consumer Confidence Apr
Briefing.com 62.0
Consensus 61.0
Prior 64.5

http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

[UpInArms]

28. U.S. Feb. Case-Shiller home prices down 12.7% in past year

06. Home prices down in 19 of 20 cities vs. year ago: S&P
9:03 AM ET, Apr 29, 2008

07. U.S. Feb. Case-Shiller home prices down 12.7% in past year
9:01 AM ET, Apr 29, 2008

[UpInArms]

35. U.S. April consumer confidence 62.3 vs 65.9 in March

01. U.S. April consumer expectations 50.1 vs 49.4 in March
10:00 AM ET, Apr 29, 2008

02. U.S. April consumer confidence above 61.0 expected
10:00 AM ET, Apr 29, 2008

03. U.S. April consumer confidence 62.3 vs 65.9 in March
10:00 AM ET, Apr 29, 2008

[ozymandius]

3. Oil below $118 a barrel as supply concerns ease

SINGAPORE - Oil prices fell Tuesday amid expectations that a supply disruption in the U.K. would soon be resolved and as the U.S. dollar strengthened further against the euro.

Crude futures the previous day rose to a record $119.93 a barrel as labor actions in Nigeria and Scotland threatened crude supplies. But a pipeline that normally carries 700,000 barrels of crude a day to the U.K. is likely to be back in operation soon.

"The Forties pipeline shutdown in the North Sea is fully priced in and the market may be taking some mild profits on the basis that we'll see a return (of operation) ... in the near term," said Mark Pervan, a senior commodity strategist at the ANZ Bank in Melbourne.

.....

Energy investors will be closely watching the Federal Reserve's decision Wednesday on interest rates; lower rates tend to weaken the dollar. If, as expected, the Fed lowers a key interest rate by another quarter percentage point and signals that it will temporarily hold off on any future rate cuts, the dollar could strengthen, and oil might fall.

Pervan said the oil market has already priced in the expectation that the Fed will lower the interest rate by 25 basis points.

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

[ozymandius]

4. Shell, BP profits jump on record oil price

LONDON (Reuters) - Oil giants Royal Dutch Shell (RDSa.L) and BP (BP.L) beat forecasts to post big rises in first quarter profits on Tuesday, lifting shares across the sector, as investors bet oil prices above $100/barrel would be an even bigger bonanza than expected.

Shell, the world's No. 2 non government-controlled oil company by market capitalization, said net income, excluding unrealized gains from changes in inventory values, rose 12 percent to a record $7.8 billion.

Industry No. 3 BP said profits, calculated on the same basis, rose 48 percent to $6.6 billion.

"It's an eye opener for investors, showing what the high commodity price environment really, really means in terms of earnings for the oil sector," Paul Andriessen, oil analyst at Fortis Bank in Amsterdam.

http://news.yahoo.com/s/nm/20080429/bs_nm/oilmajors_profits_dc_1

It sure is an eye opener for some consumers too. Angry consumers

[ozymandius]

8. Gasoline prices top concerns over jobs, health troubles

WASHINGTON - Paying for gasoline easily tops the list of economic woes facing families in the United States, according to a survey on how changes in the economy have affected people's lives.

About 44 percent of survey participants said paying for gasoline was a "serious problem" for them. Across all income levels, the cost of gas was the most frequently cited economic concern. The price of gas nationally averaged $3.60 a gallon on Monday, according to the Energy Department.

More than a quarter of households earning more than $75,000 a year described paying for gasoline as a serious problem. For those with incomes of less than $30,000, about 63 percent felt that way.

In a distant second and third place among participants' economic concerns were: getting a good-paying job or raise, 29 percent; and paying for health care and health insurance, 28 percent.

http://news.yahoo.com/s/ap/20080429/ap_on_bi_ge/apfn_economic_woes

Paying the monthly note for housing is also a major concern, as if that is any surprise.

[Tansy_Gold]

23. "For those with incomes of less than $30,000. . . . ."

I wonder what the percentage would be if the category were narrowed to "those with incomes of less than $30,000 who own a car." I suspect many in that income bracket -- which presumably would include those with incomes of $25,000, $20,000, $10,000 -- can't afford a car and insurance and everything else that goes along with it. No car, fewer worries about gas prices. If only those who have a car were included, I'll bet the percentage would be closer to 95. Or higher.

[Hugin]

34. This is a puff-piece for McSame's...

Tax holiday scheme.

:puffpiece:

[InkAddict]

45. I only bring home half that amount net...

It costs me 2 days of work to fill the tank to get to work the other 8 days in the pay period and another one to pay the monthly insurance and yearly registration(s); my car is paid off. My spouse is unemployed (again, outsourced to H1Bs)... do the math regarding the rest of our basic needs (like food and shelter) while Jobs and Family Services figure out if "unemployment" overpaid him the last time around. Why is being treated like this more acceptable than just coming to the door and shooting us (for, say, the value of our body parts on the black market)????

Together we earn enough when he actually works a full tax year to be eligible for the maximum rebate (no kids, but subsidize a "senior" college student), so you can figure how much income tax they're losing each pay period at each level, Fed, State, Community. Our inability to stimulate the economy just by purchasing our other basic needs should, when multiplied by their fudged unemployment numbers, at the very least, negate the stimulus of the rebates.

Figuring a budget on my "take home" alone, anyone know any clean, safe rentals for under $175 a month?

Why do they hate America???

[Tansy_Gold]

65. I hear you, all too well

I looked at a job listing the other day and even as desperate as I am, I couldn't make the math work to make this job even remotely worth applying for. Net after taxes and gas -- my vehicle is not fuel efficient (long story; I had little choice) and the job was at a considerable commuting distance in a city/state where public transportation is heresy -- I'd have been left with substantially less than $200/week.

I don't have a mortgage payment, which helps considerably. But basic living expenses (groceries, utilities, taxes & insurance, but no car or house maintenance) require $800/month. And with education loans hanging over my head, even $200 net/week for a 3-hour per day commute and almost 500 miles per week added to my car that already has 150,000 miles on it wasn't enough to dissuade me. I applied for the job. And didn't get it.

[happyslug]

63. I have had several people ask me about my moped

And when I told them the shortfalls, max speed 45mph on the flats, going up a 10-15% grade (most hillside roads around here) 15mph, they are NOT turned off. The 90mpg is to good that the moped shortfalls are viewed as minor. As one 20 something told me, "I can always walk the bike up a hill" when told of 90mpg and the above shortfalls. I should point out this is in the the Southern Mountains of Pennsylvania. We do NOT get the snow of people north of us, but we do get snow that can lay on the ground for weeks. In Bad weather most people will stay with their cars (for now) but I see more and more people looking at Mopeds just for the gasoline savings.

Gasoline is becoming more and more a concern for people. Most people can NOT see how they can cut back their usage. People will look at their options, but most options look bad, the Moped does NOT look as bad, so it will become more and more an option people will take.

[ozymandius]

5. Fed poised to cut rates; may take a break after that

WASHINGTON - The Federal Reserve is poised to deliver another interest rate cut to millions of people and businesses this week, although that could be the last break they get for a while.

.....

The Fed is widely expected to lower its key interest rate by one-quarter percentage point to 2 percent at the end of its session Wednesday.

That would mark a modest rate reduction after a recent string of hefty cuts. The Fed is facing a difficult juggling act of trying to shore up the faltering economy while also trying to keep inflation from taking off.

http://news.yahoo.com/s/ap/20080429/ap_on_bi_ge/fed_interest_rates

[Dr.Phool]

15. "Another rate cut to millions of people"?

:rofl: :rofl: :rofl:

Stop it. You're killing me.

[ozymandius]

6. Deutsche Bank reports 1Q loss on $4.2 billion in write-downs

BERLIN - Deutsche Bank AG said Tuesday that it wrote down $4.2 billion during the first quarter, pushing Germany's biggest bank to its first quarterly loss since 2003 amid trading losses, lower revenue and global market jitters.

Despite the loss, and the write-downs, the figures pale in comparison to other banks, which have seen their write-downs balloon. The largest was reported by Switzerland's UBS AG earlier this month which said it saw losses and write-downs of approximately $19 billion in the first quarter, bringing its tally to $37.4 billion.

Also in April, Deutsche Bank had given fair warning to markets, saying it expected at least 2.5 billion euros in write-downs in the first quarter, slightly less than what it reported. To date, Deutsche Bank has had to write down approximately 5 billion euros ($7.8 billion).

.....

The bank said the write-downs were net of hedges, taxes and fees, and related to the dropping value of "leveraged loans and loan commitments, commercial real estate and residential mortgage-backed securities" of predominantly Alt-A positions — which are less risky than subprime loans.

http://news.yahoo.com/s/ap/20080429/ap_on_bi_ge/earns_germany_deutsche_bank

[ozymandius]

7. Homes facing foreclosure more than doubled in 1Q from 2007

LOS ANGELES - The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier, as weakening property values and tighter lending left many homeowners powerless to prevent homes from being auctioned to the highest bidder, a research firm said Monday.

Among the hardest hit states were Nevada, Florida and, in particular, California, where Stockton led the nation with a foreclosure rate that was 6.6 times the national average, Irvine, Calif.-based RealtyTrac Inc. said.

Nationwide, 649,917 homes received at least one foreclosure-related filing in the first three months of the year, up 112 percent from 306,722 during the same period last year, RealtyTrac said.

The latest tally also represents an increase of 23 percent from the fourth quarter of last year.

http://news.yahoo.com/s/ap/20080429/ap_on_bi_ge/foreclosure_rates

[ozymandius]

10. Mortgage legend says price slump deeper than seems

BEVERLY HILLS, California (Reuters) - The man credited with developing the financing of the modern U.S. mortgage industry says home values have fallen more than their listed prices suggest but they could hold steady with the help of a bill in Congress.
ADVERTISEMENT

"I think the actual price declines are bigger than the indexes are showing, since so little is being sold," Lewis Ranieri, CEO of Ranieri & Co., said in an interview on the sidelines of the Milken Institute Global Conference.

.....

The inventory of homes for sale swelled by 40,000 to 4.06 million homes in March, or a 9.9 months' supply at the current sales pace from 9.6 months in February, according to the National Association of Realtors . Meanwhile, the median national home price declined 7.7 percent from a year ago to $200,700.

http://news.yahoo.com/s/nm/20080429/bs_nm/usa_economy_housing_dc_1

[UpInArms]

17. Foreclosures jump for seventh straight quarter

http://www.reuters.com/article/bondsNews/idUSN2848824620080429?sp=true

NEW YORK (Reuters) - Home foreclosure filings jumped 23 percent in the first quarter from the prior quarter, and more than doubled from a year earlier, as more overextended borrowers failed to make timely payments, real estate data firm RealtyTrac said on Tuesday.

One of every 194 households received a notice of default, auction sale or bank repossession between January and March, for the seventh straight quarter of rising foreclosure activity, RealtyTrac said.

Foreclosure filings were far-reaching, rising on an annual basis in 46 states and in 90 of the 100 largest metropolitan areas, to a total of 649,917 properties. The first quarter filings surged 112 percent from the same period last year.

"In most of the states with the highest levels of foreclosure activity, we're still seeing the fallout from overheated home prices and people overextending themselves with risky loans to try to buy those properties," Rick Sharga, vice president of marketing at RealtyTrac, in Irvine, California, said in an interview.

"I'm more convinced that we haven't seen the peak of foreclosure activity yet, and the wave probably won't crest until late third or fourth quarter of 2008," he added.

Nevada, California, Arizona and Florida had the highest foreclosure rates among states during the quarter.

...more...

[DemReadingDU]

24. Website to find homes in foreclosure by zipcode

Snarkoleptic posted this in the Economy forum...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x38249

[Hugin]

57. Yow!

:scared:

[DemReadingDU]

60. I just found a house in my neighborhood

We live in a small village in Ohio. Yet there are 12 houses listed in foreclosure, and 1 is in the next street from our house. Yikes!

[ozymandius]

9. Buffett says recession may be worse than feared

NEW YORK (Reuters) - Warren Buffett, the world's richest person, said on Monday the U.S. economy is in a recession that will be more severe than most people expect.

Buffett made his comments on CNBC television after his Berkshire Hathaway Inc (BRKa.N) (BRKb.N) agreed to invest $6.5 billion in the takeover of chewing gum maker Wm Wrigley Jr Co (WWY.N) by Mars Inc in a $23 billion transaction.

"This is not a field of specialty for me, but my general feeling is that the recession will be longer and deeper than most people think," Buffett said. "This will not be short and shallow.

.....

On Wednesday, the U.S. Commerce Department is expected to say how fast the economy grew in the first quarter. Economists on average have projected that gross domestic product grew at an annualized 0.2 percent rate in the quarter.

http://news.yahoo.com/s/nm/20080428/bs_nm/buffett_recession_dc

[Hugin]

49. Would somebody PLEASE get this man gum..

I swear. What does someone have to do to get a stick of gum, now days? :silly:

[TalkingDog]

62. Heck, I'll buy him a pack of Bazooka Joe just because

he's got the stones to edge up on the truth.

[ozymandius]

11. American Airlines loses $3.3 million a day

(Fortune Magazine) -- Just as the Boeing 737 started its initial approach into Washington's Reagan National Airport, Gerard Arpey asked for my pen and pad. Arpey, the polished chief executive of American Airlines, was on his way from Dallas to brief FAA administrators about the maintenance issues that had recently grounded nearly half his fleet. But as the seatbelt sign went on, his mind turned to the industry's recent merger mania.

.....

Of course, red ink in the airline industry is about as novel as weather delays or lost luggage. What has changed for executives like Arpey is that there is not much left to cut. Thanks to bankruptcies or restructuring, airlines like American long ago chopped the low-hanging fruit and added extra fees wherever they could: Pilots make less, planes fly more, and passengers now routinely shell out for once-complimentary items like onboard food and checked luggage. The problem is that no airplane was ever designed to make a profit with jet fuel at these prices, and no carrier has figured out a way to charge enough to make up the difference.

Pity the airline CEO. He can't control his biggest costs. He can't really control the prices he charges. Already this year, record fuel prices have forced five carriers to file for bankruptcy. Analysts say more may be on the way - and some believe American is in danger. That's because as the only so-called legacy carrier to have avoided Chapter 11, American has significantly higher labor costs than many of its competitors and operates a largely aging fleet of gas-guzzling aircraft - two problems without easy fixes.

.....

So what's an airline executive to do? As in any industry that's in trouble, some think consolidation is the answer. Take the proposed merger of Delta Air Lines and Northwest Airlines. Richard Anderson, Delta's chief, says the new carrier can better withstand high fuel costs by exploiting the combination of two complementary route networks. Northwest has a large Asian presence, and Delta has a large European one.

http://money.cnn.com/2008/04/28/magazines/fortune/gimbel_american.fortune/index.htm?postversion=2008042904

[Tansy_Gold]

25. "Pity the airline CEO."

You gotta be kidding me!

:rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:

If he's making more than $100,000 a year, I have no tears.

:nopity:


sheesh

[kineneb]

53. break forth the quartet

:nopity: :nopity: :nopity: :nopity:

I want them to try and live on my budget for a while.

[ozymandius]

12. Tax rebates: A clue to co-workers' salaries (caddy title, solid math)

(Fortune) -- This week, a few days ahead of schedule, tax rebates from the Treasury Department will start arriving in Americans' bank accounts. About 130 million U.S. households -- including anybody and everybody who earned more than $3,000 in 2007 and filed a tax return by April 15 -- will get something back from Uncle Sam.

The purpose of this bonanza is, of course, to stimulate the sluggish economy by putting some extra spending money in people's pockets. But for the attentive (or, snoopy), it's also a chance to figure out roughly what co-workers make -- that is, if they happen to reveal the amount of their rebate, and you also know their personal situation (for instance, married with two teenaged kids, or single with no children)

.....

Or, maybe they didn't get much of a rebate at all, because they're just too darn highly compensated? In that case, keep in mind that individual filers with no dependent children who earned more than $75,000 last year begin to see a "phase-out reduction" (a reduction of 5% of every dollar earned above $75,000) in their rebates. For married couples filing jointly, the phase-outs start at $150,000; at $165,000 in household income (with no dependent children), poof, the rebate all but disappears. Uncle Sam evidently figures that people in those income brackets can well afford to provide a bit of economic stimulus without any undue help from Washington.

http://money.cnn.com/2008/04/28/news/economy/tax.rebates.fortune/index.htm?postversion=2008042904

[ozymandius]

13. GM to lay off 3,550 at 4 pickup truck and SUV factories (repost)

DETROIT (AP) -- The dwindling U.S. auto market and an accelerating shift from trucks to cars has brought grim layoff news to four General Motors Corp. factories.

The company announced Monday that it plans to cut one shift each at pickup truck and large sport utility vehicle plants in Flint and Pontiac, Mich.; Janesville, Wis.; and Oshawa, Ontario, resulting in about 3,550 layoffs.

The world's largest automaker by sales said the cuts, to take effect this summer, were brought on by weak demand due to high gasoline prices and an economic downturn.

GM said it will make about 88,000 fewer pickups and 50,000 fewer big SUVs this calendar year because of the cuts. The layoffs represent just over 4 percent of GM's hourly manufacturing work force of about 80,000 in North America.

The announcement came after stock markets closed. GM shares rose 56 cents, or 2.6 percent, to $21.94 Monday, then lost 3 cents in after-hours trading.

http://biz.yahoo.com/ap/080429/gm_cuts.html

[ozymandius]

14. early futures

06:17 am : S&P futures vs fair value: -3.7.
Nasdaq futures vs fair value: -9.5.

[UpInArms]

16. dollar watch

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

Last trade 72.845 Change +0.341 (+0.47%)

3 Reasons Why the EUR/USD May Continue to Fall

http://www.dailyfx.com/story/bio1/3_Reasons_Why_the_EUR_USD_1209419645305.html

After hitting a record high above 1.60, the EUR/USD has fallen over 400 pips. The failure to extend far beyond 1.60 should not be incredibly surprising if you have been following the Daily Fundamentals. Last Tuesday, when the Euro broke the psychological level, we pointed out that the lack of major option barriers above 1.60 suggested “the power of the move above 1.60 will not be as strong as the move above 1.50. In fact, 1.60 could even be a near term top.” On April 22, our Technical Analyst Jamie Saettele said that EUR/JPY was ready for a top. Since then EUR/JPY has fallen over 150 pips and now looks prime for further losses. Looking forward, there are 3 primary reasons why I think this could be a temporary bottom for the US dollar and the beginning of further losses for the Euro. The first is the upcoming Federal Reserve interest rate decision. Not only is the market growing increasingly confident that the Federal Reserve will only cut interest rates by 25bp on Wednesday, but they also believe that the Fed will pause. Although no comments have been made over the past few weeks by Fed officials to specifically suggest this, the continual rise in oil, steel and rice prices has everyone guessing that inflationary pressures may force Bernanke to start taking tips from former Fed Chairman Volcker fought double digit inflation rates with interest rates as high as 20 percent. Although I think that 25bp is all that we will get from the Federal Reserve, their decision may not be an easy one as non-farm payrolls are expected to fall for the fourth month in a row. The second reason is the recent flip in the FXCM Speculative Sentiment Index. Speculators have been net short the EUR/USD since 2006 and during that time, the currency pair rallied from 1.25 to 1.60. For the first time since 2006, the index has flipped into positive territory, which gives us a strong sell signal. The third reason is the technical outlook for the EUR/USD. According to our Daily Technicals report, the EUR/USD is in the process of undergoing its 4th wave correction and support does not begin until 1.4667.

...more...

U.K. Housing And Retail Data Weigh on Pound, Will The BoE Cut Again?

http://www.dailyfx.com/story/bio2/U_K__Housing_And_Retail_Data_1209464148545.html

The U.K. CBI distributive trades report crossed the wires at -26, sending the pound over 50 points lower. The reading was over eight times lower than the -3 that was expected. The pound was weighed lower throughout the overnight session as U.K. mortgagee approvals fell to 64,000-the lowest level in at least nine years. The tight credit markets remain an obstacle for borrowers and will continue to suppress house prices going forward. Central Bank Governor Mervyn King said today that the “ratio of house prices to earnings will fall” when speaking to the U.K treasury select committee. He would go on to say that although retail sales have been “surprisingly strong” consumer spending will fall, possibly quite sharply. The MPC leader would also reiterate the committee focus on keeping inflation near their target, but if consumer consumption continues to falter, another rate cut may be needed to cushion the fall of the economy.

The Euro fell to as low as 1.5539 during the overnight session, despite light trading due to a Japanese holiday, on a four year low in retail sales. The Eurozone retail PMI index fell to a seasonally adjusted 41.8 in April from 48.2 the month prior, as rising food and energy costs saw consumer’s buy 40% less food and drinks. Rising inflation has kept the ECB frozen in its tracks as its mandate is to maintain price stability. The central bank has continued to maintain its hawkish stance, despite mounting evidence that the regions economy is starting to realize the affects of the U.S. slowdown and the credit crisis. As long as the current interest rate differential is expected to hold between Europe and the U.S., the Eur/Usd will find support and prevent any significant reversal from the dollar.

The New Zealand Dollar came under heavy selling pressure when its annual trade deficit widened NZ$50 million in March, against expectations of a surplus of NZ$395. The shortfall was a result of an eight month low in exports, bringing the 12 months ended March 31 total deficit to NZ$4.42 billion. New Zealand exporters saw a decline in demand from China, shipping nearly 40 million less goods. The Kiwi fell as low as 0.7762 before consolidating around 0.7780. Economic growth is expected to slow to its lowest levels in over ten years, as record interest rates have dulled growth faster than officials had hoped.

U.S. consumer confidence and the S&P/ Case Schiller home price index will serve as the appetizer for tomorrow’s Fed Rate decision. The two indicators will give investors insight into the most troubling areas of the economy. Expectations are that the housing industry will continue to deteriorate and in turn drag consumer confidence with it. Until the housing sector establishes a bottom, the downside risks to the U.S. economy will remain, which will continue to weigh on the dollar. However, a rebound in these numbers combined with the expectation that the central bank will signal a pause to their current easing cycle may have Dollar bulls looking to test support at 1.54.

...more...

[UpInArms]

18. GM CEO's compensation jumps 64 percent in 2007

http://www.reuters.com/article/businessNews/idUSN2534738420080425?feedType=RSS&feedName=businessNews?sp=true

DETROIT (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research) Chief Executive Rick Wagoner's salary and other compensation rose 64 percent in 2007 to about $15.7 million, mainly due to option grants, according to a proxy filed on Friday.

The GM compensation committee cited significant progress over the past few years in reducing the automaker's health care cost burden, increasing growth internationally and improvements in its cars and trucks in the 2007 awards to executives.

Wagoner's compensation rose from about $9.57 million in 2006. The figure was arrived at based on Wagoner's salary, all other compensation and the basis of annual grants.

GM paid Wagoner a salary of $1.6 million in 2007, along with $1.8 million in non-equity incentive compensation and nearly $700,000 for other compensation that includes insurance benefits, security, aircraft expenses and other factors.

GM, which reported a record $39 billion net loss in 2007, released the figures in a proxy statement on Friday afternoon that was filed with the U.S. Securities and Exchange Commission.

...more...

[UpInArms]

19. GM to lay off 3,550 at 4 pickup truck and SUV factories

http://news.yahoo.com/s/ap/20080429/ap_on_bi_ge/gm_cuts

DETROIT - The dwindling U.S. auto market and an accelerating shift from trucks to cars has brought grim layoff news to four General Motors Corp. factories.

The company announced Monday that it plans to cut one shift each at pickup truck and large sport utility vehicle plants in Flint and Pontiac, Mich.; Janesville, Wis.; and Oshawa, Ontario, resulting in about 3,550 layoffs.

The world's largest automaker by sales said the cuts, to take effect this summer, were brought on by weak demand due to high gasoline prices and an economic downturn.

GM said it will make about 88,000 fewer pickups and 50,000 fewer big SUVs this calendar year because of the cuts. The layoffs represent just over 4 percent of GM's hourly manufacturing work force of about 80,000 in North America.

The announcement came after stock markets closed. GM shares rose 56 cents, or 2.6 percent, to $21.94 Monday, then lost 3 cents in after-hours trading.

"With rising fuel prices, a softening economy and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities," GM North America President Troy Clarke said in a statement.

For about the past three years, the U.S. auto market has been shifting from pickup trucks and SUVs to cars and crossover vehicles, but the trend picked up in recent months due to gas prices that have reached $3.60 per gallon, on average.

...more...

[Tansy_Gold]

61. GM laid-off workers' compensation drops 100% in 2008. . .

Open letter to Mr. Rick Wagoner, CEO of General Motors:


Dear Mr. Wagoner:

How does it feel to take home $15.7 million dollars when 3,500 of the workers who generated the profit that put that $15.7 million dollars in your bank account are going to take home NOTHING?

How does it feel to take home $15.7 million dollars when families of those workers may be losing their homes, their cars, their children's college education?

I'm sure, Mr. Wagoner, that you think because your compensation is "legal" that it is also moral and ethical. Well, Mr. Wagoner, I'm here to tell you that morality and ethics often have absolutely nothing to do with legality.

I'm sure, Mr. Wagoner, that you go to bed every night -- maybe on silk sheets -- and you never give a thought to the homeless people in Flint who may once have been GM workers. I'm sure, Mr. Wagoner, that you have no concerns about them or about any other workers, whether they're GM assembly line workers or the people who work in the factories that make the parts that go into GM products.

I'm sure, Mr. Wagoner, that you don't spend any time thinking about the workers in the U.S. who have lost good union-wage jobs because you worried more about the profits and stockholder dividends and shipped those high-paying jobs to India or China or Bangladesh, where workers are paid a tiny fraction of what the U.S. workers were paid.

I'm sure, Mr. Wagoner, that you don't hold dinner table conversations with your family about the impact gas-guzzling SUVs have on the environment. I'm sure, Mr. Wagoner, that you don't have staff meetings on how to make GM's fleet of cars, light trucks, SUVs, crossovers, and other vehicles more fuel efficient.

I'm sure, Mr. Wagoner, that you are more worried about declining sales and a shrinking bottom line than you are about rising gasoline prices and the attendant rises in the price of bread, milk, eggs, sugar, cereal, chicken, rice, coffee, tea, cotton, laundry detergent, paper, sneakers, crayons, baby formula, cheese, or any of the other thousands of commodities that American families have come to depend on.

I'm sure, Mr. Wagoner, that you don't have to worry about paying a mortgage on your primary residence, or even on your first, second, third, or fourth vacation home. I'm sure, Mr. Wagoner, that you don't hesitate for a single second before booking that first-class flight to Paris for your wife to do a little shopping or take a week-end art class at the Louvre.

I'm sure, Mr. Wagoner, that if there's a family emergency a thousand miles away, you have access to a private plane to whisk you and immediate family members wherever you need to go, and you don't need to wait until you can find an economy fare to get you to your dying father's bedside.

I'm sure, Mr. Wagoner, that you consider yourself an honest man, a hard-working man who deserves every penny of those $15.7 million dollars.

I'm sure, Mr. Wagoner, that you and all your ilk disgust me. I'm sure, Mr. Wagoner, that if I were ever to meet you in person I would call you to your face a living parasite, a cancer, a blood-sucking leech.


Most sincerely,

Tansy Gold, who had better go take her blood pressure medicine while she still has some

[UpInArms]

20. Ex-Fed official criticizes Bear Stearns rescue: report

http://news.yahoo.com/s/nm/bearstearns_fed_dc

NEW YORK (Reuters) - A former top Federal Reserve official has said that the Fed's bailout of Bear Stearns Cos (BSC.N) will come to be viewed as the "worst policy mistake in a generation," the Wall Street Journal reported on Tuesday.

Vincent Reinhart, who used to be the Fed's director of monetary affairs and the secretary of its policy making panel, said the event would be compared to "the great contraction" of the 1930s and "the great inflation" of the 1970s, the Journal reported.

The Fed, which is working to stabilize the markets, had offered $30 billion of financing for Bear's assets to JPMorgan Chase & Co (JPM.N), which offered to buy the ailing bank, and helped it sidestep a bankruptcy filing.

But the rescue "eliminated forever the possibility the Fed could serve as an honest broker," Reinhart told the Journal, pointing to other options like looking for other suitors and removing some assets from Bear's portfolio, which he said were possible but not pursued by the Federal Reserve.

...very little left...

[UpInArms]

21. Countrywide swings to loss

http://www.reuters.com/article/businessNews/idUSWNAS031620080429

NEW YORK (Reuters) - Countrywide Financial Corp (CFC.N: Quote, Profile, Research), the mortgage lender being acquired by Bank of America Corp (BAC.N: Quote, Profile, Research), on Tuesday posted an $893 million first-quarter loss, hurt by deteriorating mortgage market conditions.

The loss was equal to $1.60 per share, and compared with a profit of $434 million, or 72 cents, a year earlier.

no surprise on this one :eyes:

[UpInArms]

29. Countrywide posts $893 mln loss as bad loans soar

http://www.reuters.com/article/bondsNews/idUSN2930122420080429

NEW YORK, April 29 (Reuters) - Countrywide Financial Corp (CFC.N: Quote, Profile, Research), the mortgage lender being acquired by Bank of America Corp (BAC.N: Quote, Profile, Research), on Tuesday posted a surprisingly large $893.1 million first-quarter loss, as it took more than $3 billion of charges for write-downs and bad loans.

The loss equaled $1.60 per share, and compared with a profit of $434 million, or 72 cents, a year earlier.

Analysts on average expected a loss of 12 cents per share, according to Reuters Estimates. Countrywide has lost more than $2.5 billion in the nine months ending March 31.

Countrywide, the nation's largest mortgage lender, set aside $1.5 billion for bad loans in the quarter, 10 times as much as a year earlier. It also wrote down an additional $1.5 billion for other securities and claims.

Calabasas, California-based Countrywide said about one in 11 borrowers has fallen behind on home loan payments, nearly twice as many as a year earlier. It also said more than one in three subprime borrowers is delinquent.

...more...

9% behind and a 33% delinquency rate!!!!!

[UpInArms]

22. Commentary: The SEC's chairman is obstructing credit-crisis reforms

http://www.marketwatch.com/news/story/coxs-sec-watched-wall-street/story.aspx?guid=%7BBB0F3DA2%2DB41E%2D42D4%2DA426%2DD820D36AC7C0%7D

NEW YORK (MarketWatch) -- For a while, Christopher Cox seemed like he might be a pleasant surprise as chairman of the Securities and Exchange Commission.

Cox, a Republican congressman from Orange County, Calif., took the helm of the SEC in 2005, when it was struggling to change its reputation as the cop who was always a step behind then-New York State Attorney General Eliot Spitzer.

Some observers feared that Cox, with his prom-king looks and conservative pedigree, would be a pro-Wall Street patsy, and they had reason for such doubt. In the 1990s, Cox championed laws that made it harder for investors to sue corporations and bankers.

<snip>

But let's be honest here. You don't have to be a securities law professor to recognize that Cox and the SEC have been caught flat-footed in the greatest market crisis since the 1929 crash. The SEC's decision to allow brokerages to essentially set their own capital requirements and value their own assets was a critical mistake that led to the industry meltdown.

As Greenlight Capital's David Einhorn spelled out in a speech earlier this month (an address recounted by Ben Stein in the New York Times this weekend), "It seems the SEC made concession after concession to the large broker-dealers." Read Einhorn's speech about the SEC.

Now Cox is playing cover-up with Congress, trying to hide potentially embarrassing SEC missteps that may have led to the credit debacle.

...more...

[Demeter]

26. Looking for Miracles

I'm going through the tunnel of Life these days. One cat is in surgery today; the co-op, having taken leave of its senses is going condo, and 300+ people are going to be looking for mortgages (they are nuts), and final session of guardianship hearing is May 9th.

My sanity hasn't been in such short supply in 10 years, when my mother was dying in Virginia, while my daughter was nearly killed by the hospital quacks...

Do send a good thought my way.

[Tansy_Gold]

31. Short supply of sanity

I'll gladly share with you what little of my own I have left.

:hugs:



Tansy Gold

[MilesColtrane]

32. For what it's worth, we've got your back.

Take it from me, sanity is overrated. The storm will pass.

[Hugin]

33. Hang in there, Demeter.

:thumbsup:

[UpInArms]

36. ...

:grouphug:

:loveya:

[Dr.Phool]

37. I could send you a virtual pizza in a PM.

[AnneD]

44. Costco has a limit....

2 bags of sanity per customer. I gave up sanity years ago, you can have mine.....
:hug: Just work your plan and have your evil sister with you if possible.

[DemReadingDU]

55. Hugs

Thinking of you Demeter


:hug:

[Demeter]

58. Kitty is Home Minus 3 Rotten Teeth and In Good Shape for an Old Lady

Thanks for the kind thoughts and words. If it's all right with you, I'd like to decline the pizza, Doc.

Gratitude to all.

Demeter

[TalkingDog]

64. I've had that done with oldster kitties before

They do just fine.

And in case there is medication involved, here's a brief primer on how to pill a cat:

http://www.xs4all.nl/~josvg/pets/cat-pill.html

PS: I do love my cats. I promise

[DemReadingDU]

68. Too funny!

But first, wrap kitty tightly in a towel so that only its head is uncovered. Then proceed as above

:)

[Birthmark]

67. Tunnels are all finite in length, Demeter.

They only *seem* to go on forever. Hang in there. You'll come out the other side. :)

[JCMach1]

27. Should be good day for oil stocks on Shell news

[UpInArms]

30. GMAC posts $589 mln loss, may not have 2008 profit

http://www.reuters.com/article/bondsNews/idUSN2930256620080429

NEW YORK, April 29 (Reuters) - Finance company GMAC said on Tuesday its first-quarter loss nearly doubled as more customers fell behind on mortgage payments, and that it may not turn a profit this year.

The loss increased to $589 million from $305 million a year earlier. Results included an $859 million loss at Residential Capital LLC, the mortgage unit's sixth straight quarterly loss, weighed down by what GMAC called "significant deterioration" in international operations.

GMAC also said ResCap has significant near-term liquidity issues, with $17 billion of debt coming due this year. GMAC said it may provide more funding, sell some ResCap assets, or try to refinance the debt. ResCap has already reduced riskier lending and announcing 5,000 job cuts.

General Motors Corp (GM.N: Quote, Profile, Research) owns 49 percent of GMAC. Private equity firm Cerberus Capital Management LP led a group that bought 51 percent of GMAC from the automaker in 2006.

GMAC said tough market conditions "have not shown signs of moderation," and that it may not return to profitability before 2009, later than expected, if the conditions persist.

...more...

[Tansy_Gold]

38. Kevin Phillips on "liquidity issues" (I can't resist these quotes!)

From Phillips' "Wealth and Democracy: A political history of the American rich," (c) 2002:

p. 354

Avarice, Luxury, Arrogance, and Debt: The Four Horsemen of U.S. Speculative Implosions

By many yardsticks, the speculative, wealth-driven, and debt-related vulnerability of the United States of 2000 matched the Gilded Age and Roaring Twenties. But along with the skills of financial mercantilism, some other new characteristics -- there are always new ones -- nurtured the insistence in the nineties that things were different.

Like kindred excitements from Renaissance Italy to Edwardian Britain, speculative eras in the United States have been carried along by the increasing pace -- or perhaps more aptly, the loosened reins -- of the erstwhile sins teamed to drive the great wagons of economic expansion. As what had been investment begins to bubble, pride, hubris, and arrogance strain at their harnesses. Greed and avarice toss their heads. Debt steps even higher. Prodigality, luxury, and gluttony champ at their bits.

Journalists would be more likely to say that crowds begin to infect each other, behavior gets more manic, and asset prices grow more extreme. This is the boom before the bust, which comes when the rush for liquidity -- and sanity -- takes over.

<end snip>

A friend has just purchased "Bad Money" and promised to lend it to me when he's finished. Yippee! Just what I need! More books to read!


Tansy Gold, who is slowly but with great delight and relish progressing through W&D and made the mistake of picking up Atlas Shrugged last night but in doing so discovered more very interesting tidbits and potential insights into the mind of Ayn Rand



(edited to fix typos, ugh)

[Dr.Phool]

39. Is there anyone smarter than Kevin Phillips?

He's the most insightful observer I've ever seen. He's a guy who takes his lessons from history seriously. I think "Bad Money is my next purchase. Just as soon as I finish reading my last 5.

[bain_sidhe]

52. Dunno, but I sure love his books!

I bought Bad Money with a coupon a week ago, but the preface says that it "builds on themes covered in American Theocracy, which I have, but haven't read. (I bought it when it came out, but it got "cleaned away" with other books in my TBR pile when I was expecting houseguests and I... um... forgot about it.)

So I'm reading that right now. It looks to me like Bad Money is a little more confined to "current events" than his other books, so I suspect there's a lot of historical "pattern matching" that I won't get if I don't read the other one first.

The historical pattern matching is what I love best about his books. I read many politically themed books about current events, some history books too, but what seems unique about Phillips' books is that he points out the *patterns* in these things over long sweeps of time, rather than just noting the historical events.

Anyway. As to your original question. I don't know if anyone's smarter than Kevin Phillips. Probably so, but none are better (IMHO) at sharing their "smarts" with us non-professionals.

[Tansy_Gold]

66. Me, too!

I have American Dynasty and American Theocracy, which I will read when finished with Wealth and Democracy. Guess I'd better get off DU and start reading!

[AnneD]

40. Morning Marketeers......

:donut: and lurkers. We learned a very important lesson in our household. Hubby is your typical absent minded musician. I love him but I am forever having to remind him of things like to lock the door, don't leave electrical appliances outside (don't even use them outside, etc. I was taking the dogs out early in the morning yesterday when my foot slipped out from under me on the outside steps and I fell to the cement driveway. I landed on my right side and the slide was enough to move the rubber mat 4 inches on the cement surface. Luckily my hair was still wrapped in the bath towel and protected my head when it hit the cement-otherwise I would have had a head injury. My right under arm is one mass bruise and I have scrapes all up the side. My shoulder blade is sore and hurts when I move it, as my ribs, neck, arm, and tail bone. Fortunately I don't think anything is broken and tylenol extra strength is my new best friend.

When I can home yesterday, the porch steps were fixed and secure and Hubby was working on the faucet. He told me that he noticed several days ago the steps had dropped from the normal 45 degree angle to a 30 degree (I hadn't noticed). He thought about repairing it before some one fell but just forgot. He said he use to be a little bit peeved that I would point these things out to him, but since this happened-he would never gripe or procrastinate again. He felt awful that I got hurt and he now understands why I bring this stuff up. I'm in pretty good shape, heal well, and am grateful that this was not as serious as it could have been. He is a diabetic so I really do worry when he gets injured. It was one of those nice eye opening moments of a marriage.

So I guess the moral of the story is to take care of the small stuff so you can avoid paying for the larger things. Toothpaste is cheap compared to the cost of dentures.

Happy hunting and seriously, watch out for the bears.

[Hugin]

48. Good Morning AnneD...

:hangover:


OW! :/

Sorry to hear about your spill. Please, be careful. ;)

[AnneD]

51. All I could think about going down was....

landing so I wouldn't break anything. I just look like a Deep Purple psychedelic concert poster that's all-and pretty funny one at that. I have Nurse friend that did the same thing but broke her ankle-ended her ER career.

[DemReadingDU]

54. Falling can be dangerous. Thankfully, you weren't seriously hurt.

I took a fall last December. I was out walking my dog, pre-dawn. She must have speed-ed up, and I must have been in loose gravel. I went down. I checked myself, and didn't seem to be any problems.

But then, my cell phone rang. My husband wanted to know why I called him at 5:45am, if there was any problems. But I didn't call him. We think what happened, my cell phone was in my pocket and the force of me hitting the ground must have hit the send button twice to re-send the last call I had made. I was thankful that he was the last person I had called, and not someone else who would have been waken up so early in the morning!

Within a week, I found out that an acquaintance had fallen and broke her leg, another acquaintance had fallen and broken an elbow, and yet a third had fallen and had a very serious head injury. This last person is still in the hospital learning to walk and talk and eat.

So thankfully, we were just bruised and we will heal. It could have been so much worse.

:hi:

[Demeter]

59. Heal well and Quickly, AnneD

[ozymandius]

69. Oh my goodness AnneD. I am so sorry.

How horrific! I am glad you heal well. So my next concern is that you heal quickly.

Gods' speed.

:hug:

[bdamomma]

41. bush is talking now is the market plunging.

[UpInArms]

42. dimson spew:

01. Bush says he'll look at 'any idea' on energy
10:41 AM ET, Apr 29, 2008

02. Congress must allow more U.S. energy production, Bush says
10:36 AM ET, Apr 29, 2008

03. Bush says U.S. economy in 'tough time'
10:36 AM ET, Apr 29, 2008

[bdamomma]

43. economy in "tough time"

no thanks to this stupid arrogant man.

[Nickster]

46. I wonder what they expected when they embraced the Pinochet Economy?

This economy is a corporatist's wet dream and a regular person's nightmare. How do they keep getting away with it?

[AnneD]

47. Bush says Congress blocking his economic proposals

WASHINGTON — President Bush said today that Congress is blocking his proposals to deal with high gas prices and dragging its feet on other issues to address the nation's sagging economy. He said he was open to any idea in terms of energy, including a proposal backed by John McCain and Hillary Clinton to suspend gas and diesel taxes this summer.


<snipped Bush's quote cause we know they are bull shit anyway>

Bush was asked about a proposal by Republican presidential contender John McCain, later endorsed by Democrat Hillary Rodham Clinton, to suspend taxes on gasoline and diesel fuel for the summer travel season. The tax is 18.4 cents per gallon of gasoline and 24.4 cents on diesel fuel.

<snip>

Bush renewed his objection to calls that the government discontinue keeping up the nation's Strategic Petroleum Reserve supply while oil prices are so high. "If I thought it would affect the price of oil significantly, I would seriously consider it," he said of an idea embraced by many Democrats and some Republicans.

Bush also said that it was important to keep filling the reserve, in underground salt domes in Texas and Louisiana, in case there is a terror attack on the nation's oil supplies. He also once again called for Congress to permit drilling in the Arctic National Wildlife Refuge, a proposal he has made repeatedly since he first took office in 2001, and to pave the way for the building of new refineries.

<snip>

As he has in the past, Bush declined to call the current economic slowdown a recession, even though many economists say the nation is already in one.

more if you can stomach it...

http://www.chron.com/disp/story.mpl/business/5738784.html

Thank God Congress is finally doing something.......

[AnneD]

50. ADM 3Q profit jumps 42 pct in volatile commodities markets

CHAMPAIGN, Ill. — Archer Daniels Midland says its fiscal third-quarter profits rose 42 percent as the agricultural processor took advantage of a volatile commodities market.

ADM says earnings grew to $517 million, or 80 cents per share, from year-ago profit of $363 million, or 56 cents per share.

Revenue surged to $18.71 billion from $11.38 billion.

The results beat estimates of analysts surveyed by Thomson Financial, who expected earnings of 70 cents per share on revenue of $13.45 billion. ADM shares rose 91 cents to $46.51 at the open of trade.

The quarter's results were driven by an almost sevenfold increase in profits in ADM's Agricultural Services division, from $46 million to $366 million. The division includes the company's grain-trading, -transporting and -handling businesses.

more....

http://www.chron.com/disp/story.mpl/ap/business/5738675.html

wow, just wow.

[Tansy_Gold]

56. Starvation can be profitable ---

-- as long as you're not the ones starving.


:puke:

(oh, wait, only those who have something to eat will have something to puke. . ...)


Tansy Gold, losing it

[ozymandius]

70. The Finale

Dow 12,831.94 Down 39.81 (0.31%)
Nasdaq 2,426.10 Up 1.70 (0.07%)
S&P 500 1,390.94 Down 5.43 (0.39%)
10-Yr Bond 3.825% Down 0.01
NYSE Volume 3,753,276,250
Nasdaq Volume 1,776,482,375

4:25 pm : On Tuesday, market participants were hesitant to make any concerted moves ahead of Wednesday's first quarter GDP reading and FOMC policy announcement. As a result, the stock market posted a slight loss, in relatively light trading volume. Better than expected earnings helped offset some disappointment over dismal housing data, and a sharp drop in a Dow component's stock.

More than 100 companies reported their quarterly earnings after Monday's close and before Tuesday's opening bell.

Credit card processors Visa (V 80.88, +5.25) and MasterCard (MA 273.98, +31.48) both reported earnings results that topped their respective estimates. Visa topped its estimate by 17%, while MasterCard beat by 30%. Shares of Visa were sharply lower in premarket trading on its report, but rebounded into the green as traders embraced MasterCard's large beat. Shares of Visa are now up 84% since the company's March 19 IPO, while shares of MasterCard are up 30% during that same period.

Other notable names that topped estimates include, Archer-Daniels Midland (ADM 45.58, -1.84), Avon Products (AVP 40.26, +0.18), Burlington Northern (BNI 102.72, +1.60), Corning (GLW 26.53, +0.85) and MedcoHealth Solutions (MHS 49.12, -2.19).

Yet the worst performing stock within the S&P 500, Merck (MRK 37.14, -4.30), had nothing to do with an earnings report. Traders sold off the Dow component's stock after the company issued a press release stating its cholesterol drug Cordaptive was not approved by the FDA. This came as shock to analysts, who generally thought it would get approved. Merck reaffirmed its full year 2008 earnings outlook despite not getting approval for the drug, yet that did little to ease fears. Traders drove the stock down more than 10%, sending it near its 52-week low.

Economic news was not good, although consumer sentiment did decline less than expected.

The Conference Board said April consumer confidence fell to 62.3 from 65.9, marking the lowest consumer confidence in roughly five years. The number, however, is better than expected as economists projected the reading to slip to 61.0. This is just a survey, and does not have that strong of correlation to actual consumer spending.

The housing market remains in a rut. The S&P/Case-Shiller Home Price Index posted a record 12.7% year-over-year decline in its 20-city composite. Las Vegas had the steepest drop, with a 22.8% slip in home prices, while Charlotte was the sole city to post a gain, up 1.5%. In a separate report, first quarter foreclosures increased by 23% from the previous quarter, and spiked 112% from one year ago, according to RealtyTrac.

Separately, commodities posted a steep 1.9% decline, with oil retreating 2.9% and gold sliding 2.6%. A portion of the selling interest was fueled by a 0.52% gain in the Dollar Index.

The slide in commodities and oil prices prompted traders to lock in some profits in materials (-3.1%) and energy (-1.5%) stocks, which were the two worst-performing sectors on Tuesday. Despite this session's decline, the sectors are still the best-performing this year, with energy up 1.6% and materials up 0.9%.

Four of the ten sectors posted a gain, led by telecom (+0.9%) and tech (+0.6%).DJ30 -39.81 NASDAQ +1.70 NQ100 +0.5% R2K -0.7% SP400 -0.9% SP500 -5.43 NASDAQ Dec/Adv/Vol 1662/1171/1.75 bln NYSE Dec/Adv/Vol 1798/1314/1.23 bln