STOCK MARKET WATCH, Monday May 19

[ozymandius]

Source: du

STOCK MARKET WATCH, Monday May 19, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 247
DAYS SINCE DEMOCRACY DIED (12/12/00) 2675 DAYS
WHERE'S OSAMA BIN-LADEN? 2400 DAYS
DAYS SINCE ENRON COLLAPSE = 2691
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 May 16, 2008

Dow... 12,986.80 -5.86 (-0.05%)
Nasdaq... 2,528.85 -4.88 (-0.19%)
S&P 500... 1,425.35 +1.78 (+0.13%)
Gold future... 899.90 +19.90 (+2.21%)
30-Year Bond 4.58% +0.00 (+0.07%)
10-Yr Bond... 3.85% +0.01 (+0.18%)






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: A Toxic Economy and a Witches Brew

Finally - a Tim Wood column with some relative, yet anecdotal, evidence about the economy.

BY TIM W. WOOD

The equity markets continue to advance out of the January/March lows, commodity prices surge, oil continues to hit record highs and the consumer is now pulling back in a big way. History tells us that manipulation ultimately fails and that it typically only serves to make matters worse in the end. Well, when looking at what is physically happening around me, if the technical picture that I now see developing continues to unfold, then the backlash from the attempts to “stimulate the economy” may have now created a witches brew with a not so happy ending.

.....

Another item that is contributing to the toxic American economy is rising commodity prices and the stagnate business environment that rising commodity prices have caused. Let me give you a few examples. This past week I went to my local lube and car wash. The manager and I were talking while I was waiting on my vehicle to be washed. He told me that a year ago they would do anywhere between 80 and 100 oil changes in a typical day. But with the rising fuel prices, business has dropped to an average of somewhere between 50 and 60. As for car washes, he said that they were doing upwards of 400 a day. At present, business has dropped to between 60 and 100 per day.

Another friend of mine is a boat dealer and sells bay boats and pontoon boats. This time last year if you went by his store, you could hardly talk to him because he was so busy. I remember needing something and literally not being able to get to him. He told me this week that June is his peak month and it was absolutely dead at his store. He said that he counts on the summer sales to help carry him through the winter season. He is now worried about making it through the summer. There was also another local business owner present and he too is also now feeling the exact same pain.

In yet another example, I needed a trailer ball so I stopped in at a truck accessory store. It was also dead there and I quizzed the owner. He too was telling me how slow it had gotten. He said that recently he had 13 employees between all of his sales and installation people. He is now down to one sale person, a secretary, one installer and himself. He said that it is now costing him to keep the doors open. He had a beautiful black 4-door F-250. He said that it cost $170 to fill it up and he had it parked in the shop and is no longer driving it.

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

[ozymandius]

2. Today's Report

10:00 Leading Indicators Apr
Briefing.com 0.1%
Consensus 0.0%
Prior 0.1%

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

[UpInArms]

34. U.S. leading index shows weakness, no recession: Economist

10. Six of 10 leading indicators rise in April: Conference Board
10:00 AM ET, May 19, 2008

16. U.S. April coincident indicators flat
10:00 AM ET, May 19, 2008

17. U.S. leading index shows weakness, no recession: Economist
10:00 AM ET, May 19, 2008

18. U.S. April leading indicators up 0.1%, 2nd straight gain
10:00 AM ET, May 19, 2008

[ozymandius]

3. Oil prices drop below $126 a barrel

BANGKOK, Thailand - Oil prices dropped below $126 a barrel Monday in Asia after punching through to another trading record at the end of last week despite an increase in output by Saudi Arabia.

The world's leading oil producer promised an additional 300,000 barrels of crude a day as President Bush wrapped up a meeting Friday with Saudi Arabia's King Abdullah. But that and the U.S. move to temporarily stop filling government stockpiles have done little to change overall sentiment in the market.

.....

Late afternoon in Singapore, light, sweet crude for June delivery was down 34 cents at $125.95 a barrel in electronic trading on the New York Mercantile Exchange.

In Friday trade, the June contract hit a trading record of $127.82 a barrel before settling at $126.29, up $2.17 from the previous close. That record was the eighth in the previous 10 sessions, and the first time oil had topped $127.

.....

Goldman Sachs, one of the most influential investment banks, underscored that sentiment Friday when it hiked its oil price forecast for the second half of the year to $141 a barrel, up from $107 previously. Analysts at the bank argue that the oil market is undergoing a "structural repricing" that will continue to play out for some time to come.

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

[ozymandius]

4. Like father, like son: Bush pleads for Saudi help, but world oil market has changed

WASHINGTON — In April 1986, Vice President George H.W. Bush traveled to Saudi Arabia with a stern warning. Record low oil prices of $10 a barrel threatened the U.S. oil industry and U.S. national security. If prices don't rise, he warned, perhaps a U.S. tariff on imported oil would do the job.

More than 22 years later, his son George W. Bush went on a similar mission, but with the opposite goal in mind. President Bush met Friday with Saudi King Abdullah and was politely rebuffed in his request for help in bringing down world oil prices, which have raced past $125 a barrel.

Then and now, the Saudis are the only oil power with enough unused production capacity to make a difference on price if they increase supply. But the hard fact is that the world oil market has changed, and Saudi Arabia is far from the only producer holding the fate of U.S. consumers in its hands. Even if the Saudis increase production, shortfalls elsewhere, along with rising global demand, can offset their efforts — and are.

.....

Nevertheless, global oil prices are still rising. Why? Because global demand for oil is growing outside the United States, which alone accounts for a quarter of world oil consumption. China and the Middle East each account for about a third of new oil demand, and they are sopping up new production. The Paris-based International Energy Agency this month estimated global oil demand in 2008 at 86.8 million bpd, about 1.2 million bpd above 2007.

http://www.mcclatchydc.com/world/story/37259.html

[ozymandius]

5. This paragraph irritates me in its limited view of Alaska's oil.

The United States has 5 percent of the world's population but uses a quarter of all oil produced. It is the third-largest oil producer, sitting atop plenty of oil in Alaska and along its coastlines that for political reasons it chooses not to tap.

The "coastline" reference is, of course, ANWR. At face value, this statement is correct. However the understated meaning is short-sighted.

Alaska's northern slope is the site of the major oil field currently in production. Nearly 26k barrels of oil are being exported daily from there. (The ban on exporting oil overseas from Alaska was lifted in 1995.) As the U.S. imports nearly ten million barrels of crude per week - any new crude recovery from Alaska would hardly be a drop in the massive bucket representing our demand.

[NMDemDist2]

10. I think the coastlines they are talking about are Florida

There is lots of oil there too, but Florida's Gov's have stopped them from drilling for fear of messing up their tourism industry.

[ozymandius]

12. Yes. I didn't think of that.

California is doing the same with the number of oil platforms is allows off the southern coast.

[AnneD]

35. Morning Marketeers.....

:donut: and lurkers. The Texas and Louisiana beaches have never been much to write home about. Beaches have tar balls on them naturally-the product of oil oozing up through the water. No, it's not a place for tourists, at least the human variety....

But if you are a creature....well then the beaches are a cross between the Riviera and Las Vegas. Those ugly muddy marshes have more procreation going on than the law allows and more different varieties of sex than a San Francisco bath house. And the Laguna Madre (the mother lagoon)is one fertile womb. It is no wonder that migratory bird stop in Texas, it's like we have Golden Arches all over our beaches.

We may not have sparkling white beaches or clear blue waters, but you can get a fresh shrimp or oyster poor boy. And those premium soft shell crabs you get on the East Coast probably took the red eye from Texas. When considering placement of rigs and windmills, we have many other neighbors to think of. In addition, we have to consider the whole package, including a serpent in this garden of Eden-hurricanes. It is the natural order of things and everything has a purpose. So I guess the theme for the day should be The Byrds (via Pete Seeger) Turn Turn Turn. And I think it applies to this Economy and Wall Street (except we might call it Churn, Churn, Churn). So from Ecclesiastes .......

To everything (turn, turn, turn)
There is a season (turn, turn, turn)
And a time for every purpose, under heaven

A time to be born, a time to die
A time to plant, a time to reap
A time to kill, a time to heal
A time to laugh, a time to weep

<Snip>

A time to build up,a time to break down
A time to dance, a time to mourn
A time to cast away stones, a time to gather stones together

<snip>

A time to build up,a time to break down
A time to dance, a time to mourn
A time to cast away stones, a time to gather stones together

<snip>

A time to gain, a time to lose
A time to rend, a time to sew
A time to love, a time to hate
A time for peace, I swear its not too late

Happy hunting and watch out for the bears.

[rustydad]

49. California

Actually California bans platforms offshore to 3 miles out. Beyond that is is Federal waters and drilling is allowed. A drilling rig offshore in Federal waters cut a deal with enviros to give them several thousand acres of land if they get permission to drill horizontally from the 30 year old rig into State waters and tap some 220,000,000 barrels of oil in the next ten years. Bob

[ozymandius]

52. My thanks again.

Very interesting the information offered here. I did not know that.

The family and I were in LA a few weeks ago where went whale watching off the Santa Barbara coast. The oil rigs were about four miles offshore and separated what seemed to be two miles apart. Ugly things those rigs. I can understand why the tourism industry lobby hates them.

[ozymandius]

13. Survey shows gas prices up 17 cents in 2 weeks

CAMARILLO, Calif. - A national survey says the average price for regular gasoline rose about 17 cents in the last two weeks.

The average price of self-serve regular gasoline on Friday was $3.79 a gallon. Mid-grade was at $3.91, and premium was $4.02. That's according to the Lundberg Survey of 7,000 stations nationwide released Sunday.

-very brief-

http://news.yahoo.com/s/ap/20080519/ap_on_bi_ge/gas_prices_3

[ozymandius]

26. Oil above $127, OPEC says world has enough oil (34 minutes ago)

LONDON (Reuters) - Oil rose back above $127 a barrel on Monday, after OPEC's president said the producer group will not call an early meeting and even at its September gathering was unlikely to boost supply as the world had enough oil.

U.S. light crude for June delivery was up $1.16 at $127.45 a barrel by 8:24 a.m. EDT.

It closed at $126.29 a barrel on Friday after touching a record peak of $127.82 earlier that day after publication of a bullish price forecast from investment bank Goldman Sachs.

London Brent crude was up 67 cents at $125.66 a barrel.

Chakib Khelil, president of the Organization of the Petroleum Exporting Countries, said oil markets were well supplied and blamed high prices on speculation, a weak dollar and geopolitical problems.

http://news.yahoo.com/s/nm/20080519/bs_nm/markets_oil_dc_3

[ozymandius]

6. Wall Street heads to flat open ahead of data

NEW YORK - Wall Street headed for a flat open Monday ahead of a report expected to show the economy remains sluggish amid the continuing housing slump and credit crisis.

The Conference Board's reading of leading economic indicators is expected to show the economy remained sluggish in April after two quarters of slow growth. The reading is expected to be about on par with March, which showed a 0.1 percent gain. The New York-based research group will issue the report at 10 a.m. EDT.

In corporate news, Microsoft Corp. has renewed talks with Yahoo Inc. about a possible deal to bolster the companies' position in the online search and advertising markets. The Redmond, Wash.-based software maker did not say if the discussions included a takeover of Yahoo.


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

[ozymandius]

9. U.S. stock futures flat; focus on oil, Yahoo bid

LONDON (Reuters) - U.S. stock futures were flat on Monday, as oil prices remained stubbornly high, while the technology sector could get a lift from the latest twist in Microsoft's (MSFT.O) pursuit of Yahoo (YHOO.O).

By 0950 GMT June Dow Jones futures were down 0.1 percent, while Standard & Poor's 500 futures were down 0.04 percent and Nasdaq 100 futures were down 0.1 percent in a light day for both earnings and economic data.

The indicative Dow Jones index (.DJII) was down 0.8 percent.

Microsoft said on Sunday it proposed an alternative deal to Yahoo rather than a full acquisition, but the move was unlikely to win favor with financier Carl Icahn, a person familiar with his thinking said.

http://news.yahoo.com/s/nm/20080519/bs_nm/markets_stocks_dc

[Ghost Dog]

18. GLOBAL MARKETS-Emerging stocks wipe out '08 losses, oil steady

LONDON, May 19 (Reuters) - Emerging market equities recouped all their year's losses on Monday, rising above their end-2007 level in a new bout of investor confidence that generally pushes stocks higher, while oil remained above $126 a barrel.

The dollar weakened slightly and euro zone government bonds firmed. Wall Street looked set for a flat open.

MSCI's benchmark emerging market share index .MSCIEF rose as high as 1,245.93, above the 2007 close of 1,245.59. It remains, however, close to 8 percent below its all-time high of 1345.18 reached on November 1 last year.

"You can make a strong case that emerging markets are well-placed in any scenario going forward -- many of them are enjoying a commodities boom and many of their companies are ridiculously cheap at current valuations," said Matthias Siller, an investment strategist at Barings Asset Management.

Equities in general have been recovering from sharp losses at the beginning of the year, but the MSCI emerging index is one of the first major benchmarks to recover all losses.

/... http://www.reuters.com/article/marketsNews/idINL1964828820080519?rpc=44

[Ghost Dog]

19. Buoyant commodities help Europe stocks higher

LONDON, May 19 (Reuters) - European stocks ticked up by midday on Monday as buoyant commodity stocks made up for losses in financials, while bearish brokerage comment punctured British Airways (BAY.L: Quote, Profile, Research).

At 1104 GMT, the FTSEurofirst 300 index of top European shares was up 0.13 percent at 1,367.04 points, extending a three-day winning run. The index is up 2 percent so far this month, adding to a 6 percent rise in the index in April.

Energy stocks featured prominently among the top weighted gainers, with Total (TOTF.PA: Quote, Profile, Research) rising 0.9 percent, BG Group (BG.L: Quote, Profile, Research) 2.1 percent and BP (BP.L: Quote, Profile, Research) 0.5 percent, as crude traded at $126 a barrel.

Four miners were the top winners among British stocks -- Kazakhmys (KAZ.L: Quote, Profile, Research), Vedanta (VED.L: Quote, Profile, Research), Anglo American (AAL.L: Quote, Profile, Research) and Lonmin (LMI.L: Quote, Profile, Research) gained between 3.3 and 5.7 percent.

"I'm a big believer in the long-term commodity bull run, but we expect a correction at some point as they are very much overbought," Philippe Gijsels, strategist at Fortis in Brussels, said.

/... http://www.reuters.com/article/marketsNews/idCAL1968540720080519?rpc=44

[ozymandius]

28. Futures flat as oil, Lowe's offset Yahoo

NEW YORK (Reuters) - U.S. stock index futures were little changed on Monday as near-record oil prices fueled concerns about inflation and consumer spending, offsetting news that Microsoft Corp (MSFT.O) was resuming talks with Yahoo Inc (YHOO.O).

Lowe's Companies (LOW.N) posted a drop in quarterly profit, evidence of further deterioration in the housing market.

.....

U.S. crude for June delivery was up $1.19, or nearly 1 percent, at $127.48 a barrel in electronic trade after it ended at a fresh record above $126 on Friday on a weakening dollar.

Investors worry higher energy prices would crimp consumer spending and lead to a build-up in price pressures, which could raise the U.S. Federal Reserve's unease about inflation.

.....

S&P 500 futures slipped 0.8 points, and were about even with fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures dipped 12 points, and Nasdaq 100 futures shed 0.5 points.

http://news.yahoo.com/s/nm/20080519/bs_nm/markets_stocks_dc

[ozymandius]

7. Forecasters see weak economy, higher unemployment

WASHINGTON - First the good news: The worst of the painful housing slump and the credit crunch might come to an end this year. Now the bad: The economy will weaken further and unemployment will rise.

That's the latest outlook from forecasters in a survey to be released Monday by the National Association for Business Economics, also known by its acronym NABE. It will take time for any rays of light to poke through the economic clouds, though.

.....

Forecasters downgraded their projections for economic growth. They now predict the economy, which grew by 2.2 percent last year, will slow to 1.4 percent this year. That's lower than the 1.8 percent growth projected in February. If the new figure proves correct, it would mark the weakest growth since the last recession in 2001.

Next year, the economy should grow by 2.3 percent, less than previously forecast and a pace that is still considered subpar.

http://news.yahoo.com/s/ap/20080519/ap_on_bi_ge/wobbly_economy_10

[UpInArms]

20. NBER's Feldstein sees U.S. downturn since Dec-Jan

http://www.reuters.com/article/businessNews/idUSPAB00406220080519?feedType=RSS&feedName=businessNews

PARIS (Reuters) - Martin Feldstein, President of the National Bureau of Economic Research, said in a newspaper interview published on Monday he had seen a clear reversal in U.S. monthly economic indicators since December or January.

The NBER typically declares start and end dates for U.S. recessions, and Feldstein told French daily Les Echos the current crisis was different to the two last U.S. recessions and it was too early to tell if this one would be deep.

Asked where the U.S. recession was, he said: "Everything depends on what you mean by recession. If you look at monthly indicators, the trend has clearly been reversed since December-January.

"Industrial production, real income, employment, retail sales -- on these fronts, February was terrible, March was slightly less bad, and it is not because in April we saw smaller falls than expected that we should celebrate," he said.

[DemReadingDU]

8. National Century trial Columbus Ohio - Where is Rebecca Parrett?

5/18/08 Where is showy fugitive? Her past yields few clues

CAREFREE, Ariz. -- The day after being convicted in Columbus of the nation's largest fraud of a privately held company, Rebecca S. Parrett boarded a plane headed for this Phoenix suburb.

Carefree has a name befitting the life Parrett seemingly tried to create.

She bought a $3 million home perched on a mountain ridge and built it into a $6 million estate. The main quarters, guest house and stable are a mix of the Southwest and the expensive elegance of the corporate world she never completely left behind.

The manor became a centerpiece for Parrett's passions: hosting gatherings of artists, holding upscale fundraisers for animal-rescue groups, and occasionally housing missionaries from the evangelical church she supported.

Her trip to Carefree in mid-March, however, was supposed to be an excursion. Federal Judge Algenon L. Marbley had allowed her to return to her Arizona home only while she was waiting to be sentenced.

Parrett arrived. But she didn't stay long.

Vanishing act
She landed at the Phoenix airport in the early-morning hours of Saturday, March 15 -- less than 48 hours after a jury found her guilty of securities fraud linked to the collapse of the health-care financing company National Century Financial Enterprises.

A day later, she disappeared.

Federal officials think that Parrett, 59, flew the coop to avoid a sentence that could be as much as 75 years -- effectively a life sentence.

Her son, Rob Parrett, wonders if something has happened to her.

"I don't think she would have taken off without saying something," her sole child said. "I want to know she's OK."

He said he has been piecing together events surrounding his mother's disappearance from those who talked to her last. Parrett supported him financially through several failed business ventures, but the 41-year-old son hadn't talked to her much during the 5 1/2 -week trial.

She told Columbus relatives she was planning to use her time in prison to write a book. But, first, she needed a few days to clear her head.

She said she was going to Casa Sedona on March 16, a $319-a-night bed and breakfast in northern Arizona. It's unclear whether she actually went, said Deputy U.S. Marshal Drew Shadwick, the leading investigator in her disappearance.

Rob Parrett said he called Casa Sedona that week to check on his mother and was told she was there under a "do not disturb" request. However, when he called the next day, he was told she had never been there.

Last week, a clerk told The Dispatch there is no record that Parrett was ever there. No single guests checked in March 16, as Parrett supposedly did.

Her sixth husband, Gary Green, is the last person known to have seen her, Shadwick says.

Green, however, told Rob Parrett that he was in a motorcycle accident that day, the 16th, and can't remember things from that weekend, Parrett said.

Green did not return calls from The Dispatch for comment. He recently moved out of the couple's Carefree home and could not be located.

Two months of drugs
It's possible that Parrett fled the country, her son acknowledges. After being indicted in 2006, Parrett hinted that she might leave.

"She said she 'wasn't going to jail for something she didn't do,' " Rob Parrett said.

His mother, who was convicted of bilking investors out of more than $2 billion, thought the U.S. government was corrupt.

Although prosecutors have described an alleged plot for executives to escape to Aruba since their convictions, Parrett said in 2006 that she would head for Costa Rica, her son said.

Parrett picked up a two-month supply of medication at her Arizona pharmacy before disappearing. Rob Parrett said her medical condition was life-threatening, although he said he doesn't know what it is.

Since National Century collapsed in 2002, Parrett was fearful, friends and family members said. She had received death threats and slept with a machine gun, her husband told neighbor Howard Keim.

Parrett met Green when she hired him as a bodyguard and security consultant. The two married in 2005.

If she was going to flee, she would have at least quietly made arrangements for things important to her, her son said.

She was, by all accounts, consumed with small details.

But if she fled, the woman who raised money for animal rescues abandoned "her babies" -- three Alaskan Malamute dogs and four cats -- at her desert home.

The artwork and jewelry she treasured was left, too.

A lavish life
Defense Attorney Greg Peterson argued for Parrett's release pending sentencing, saying she wasn't a flight risk: She had surrendered her passport and "was practically indigent."

Since then, Peterson has raised the possibility that Parrett is dead and said that he had been worried about her health. Peterson said he didn't know what was wrong with her.

How much money Parrett has now is unclear.

Born in West Virginia to parents who had not graduated from high school, Parrett made more than $7 million at National Century, prosecutors noted in her trial. She spent that lavishly on herself and others.

A fan of the Rev. Robert Schuller, she once flew herself and some relatives to California for his Easter service and dinner before returning that day, neighbor Dave Wilson said.

And when she bought the home in Carefree, Parrett had "truck after truck" of cement delivered to the home for renovations, Wilson said. She added an indoor pool, high-tech equipment for intercoms and sound and security systems, friends and neighbors said.

Showcased artwork hung throughout the home above marble floors. And it wasn't the only home she owned.

She purchased an $89,000 home her mother lives in on the West Side of Columbus. And she bought a $700,000 Fountain Hills, Ariz., home that her son used for many years. She also set up a trust fund in his name that helps him pay bills, he said.

For a few years in the mid-2000s, she had an art gallery in Carefree. Before that, she was an investor in an art gallery in Vail, Colo., she told a Carefree reporter when her gallery opened.

She ran a nonprofit agency called Be Our Best Inc. that catered to children and animals. She also donated to the West Valley Children's Crisis Center, in Glendale, Ariz., which cares for children in protective custody, Rob Parrett said.

Punishment pending
The last time Parrett said he saw his mother was March 9, his birthday. He described that Sunday morning:

She knocked on the guest house at her ranch estate, where he had been living, about 7:30 a.m.

She was flying back to Columbus that morning for the last week of the trial. She handed him a card and spoke for about two minutes. The card, he remembers, was a serious one, talking about life's changes and how they could be overcome.

He talked to his mother once more, briefly by phone, before her conviction, Rob Parrett said. Calls since then have gone straight to voice mail, he said.

Since her disappearance, neighbors say vehicles with dark windows ride by the house daily. They think federal officials are watching to see if she comes back.

Shadwick, the marshal, will say little about the search for Parrett except that the investigation is continuing. Her disappearance has been featured on the Web site for the television show America's Most Wanted. Those involved with the case say that if Parrett left hoping to avoid sentencing, she will be disappointed. Even her attorney has said that Judge Marbley can sentence her without her being present.

And the prison time will be waiting for her when she is found.

http://dispatch.com/live/content/local_news/stories/2008/05/18/rparrett.ART_ART_05-18-08_A1_B9A7VMH.html?sid=101



link backwards to previous articles...
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3296693&mesg_id=3296730

[ozymandius]

11. It sounds like Agatha Christie wrote this drama. n/t

[ozymandius]

14. Lowe's 1Q profit falls nearly 18 pct

.....
The Mooresville, North Carolina-based company said Monday it earned $607 million, or 41 cents per share, in the three months ended May 2. That is down from $739 million, or 48 per share, in the first quarter of 2007.

.....

but earnings beat forecast - for what that's worth

http://news.yahoo.com/s/ap/20080519/ap_on_bi_ge/earns_lowe_s

[ozymandius]

15. Nissan, NEC to Start Producing Lithium-Ion Batteries by 2009

TOKYO -- As the race to produce green cars heats up, Nissan Motor Co. and tech giant NEC Corp. announced Monday that by 2009 they will begin mass-producing lithium-ion batteries, a key technology needed for eco-friendly cars.

Nissan is aiming to be an industry leader in producing zero-emission vehicles, starting with an all-electric vehicle that will be launched in the U.S. and Japan by 2010 and made available globally in 2012.

.....

Lithium-ion batteries -- the type of batteries used in laptop computers and cellphones -- are considered the most promising battery for electric cars because they pack twice the power of conventional nickel-metal hydride batteries and can be charged again and again. But safety remains a big concern. Laptops and cellphones that use lithium-ion batteries have overheated and caught fire, raising fears of similar problems in electric cars.

Nissan and NEC insist that their laminated cell batteries using a stable crystal structure called spinel manganese will eliminate the risk of overheating. The batteries have proven safe in field tests, they say. In a sign of their confidence, the two companies are planning to offer the batteries to other car companies.

http://online.wsj.com/article/SB121118630484603191.html?mod=googlenews_wsj

[ozymandius]

16. GM plant in Mich. ratifies contract, ends strike

DETROIT (Reuters) - Workers at a General Motors Corp plant near Lansing, Michigan ratified a new local contract on Friday, ending a month-long strike that shut down production of popular GM crossover vehicles.

Workers at United Auto Workers Local 602 voted to ratify a new local agreement with GM, clearing the way for production to resume Monday, the union said in a posting on its website.

A GM spokesman was not immediately available for comment.

Some 2,300 workers at GM's Lansing Delta Township assembly plant had been on strike since mid-April, shutting down production of crossover vehicles that GM sees as crucial to keep customers from defecting from heavier, less fuel efficient sport utility vehicles.

http://uk.reuters.com/article/basicIndustries/idUKN1644356120080519

[UpInArms]

17. dollar watch

dollar chart



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

Last trade 72.736 Change -0.094 (-0.13%)

Euro Gains as Horrid US Consumer Data Weighs - Back to Dollar Dumping?

http://www.dailyfx.com/story/bio2/Euro_Gains_as_Horrid_US_1211190052981.html

The EURUSD broke through the 1.5600 level in early European trade today as anti-dollar sentiment continued to dominate in the wake of Friday’s horrid U of Michigan consumer confidence data which printed at 59.5 – the lowest reading in more than 28 years. Currency traders are once again concerned that US is in danger of slipping into a full blown recession rather than a mere slowdown and fear that the Fed easing cycle may have to resume.

As we noted in our weekly, “The key question going forward for currency market however is whether dour sentiment will translate into negative action causing US consumer spending to contract sharply. Certainly, stubbornly high oil prices offer no relief in sight. However, we believe that it is the job market that could deliver the knock out punch to the US consumer. Up until now consumer spending has been relatively resilient despite the challenging economic climate, in part due to soft, but not debilitating labor market conditions. However, if jobs losses skyrocket at the same time as gasoline remains above $4/gallon – that deadly combination will likely destroy whatever consumer demand is left, pushing US into a clear cut recession while driving the dollar back to its lows.”

For its part, the euro received little help from the fundamental data tonight as Construction output contracted –2.2% hitting an 18 month low. For the time being the market continues to ignore strong evidence slowdown in EZ economic demand, but in our opinion much to its own peril. If this week’s IFO survey produces yet another downward surprise, the euro will have a hard time sustaining the latest rally as EZ monetary officials will have to reassess their uncompromisingly hawkish positions.

Presently however, control of the market lies with the euro bulls as US data has turned decidedly dour shifting the focus back to dollar selling. Furthermore, there is little event risk on the US calendar this week to bolster a dollar bullish view as all three major releases from today’s LEI to Tuesday’s PPI to Friday’s Existing home sales are all expected to show further deterioration in demand.

If the dollar is to find much reprieve this week it will be from disappointing news from the EZ. However, if that scenario does not occur, EURUSD could break out of this 1.5400-1.5700 grinding consolidation range and try to make another run at the all time highs. For now the 1.5500 figure still represents the level of equilibrium but the momentum has shifted in the direction of the euro bulls.



...more...

Dollar: Another Test of 1.60?

http://www.dailyfx.com/story/topheadline/Dollar__Another_Test_of_1_60__1211144176386.html

For most of the week the EURUSD traded in a tight consolidation moving 50 points either side of 1.5500. In fact early Friday morning we noted that, “ the pair was trading at 1.5481 and as write this now five days later it is trading at the exact same spot. The currency markets are at standstill with 1.5500 representing the line of balance between the bulls and the bears. Neither camp has enough ammunition to push price away from that level. In EZ the data this week has shown surprising buoyancy in the GDP numbers forestalling any consideration of monetary easing for the time being, while in US the bounce in Retail Sales suggested that the consumer may be wounded but is still alive. Thus prices remain in equilibrium.”

The equilibrium was quickly broken by the horrid U of M consumer confidence numbers which dipped below 60 for the first time in 28 years as $4/gallon gasoline depressed consumer attitudes to levels not seen since the early days of Reagan administration. The key question going forward for currency market however is whether dour sentiment will translate into negative action causing US consumer spending to contract sharply. Certainly, stubbornly high oil prices offer no relief in sight. However, we believe that it is the job market that could deliver the knock out punch to the US consumer. Up until now consumer spending has been relatively resilient despite the challenging economic climate, in part due to soft, but not debilitating labor market conditions. However, if jobs losses skyrocket at the same time as gasoline remains above $4/gallon – that deadly combination will likely destroy whatever consumer demand is left, pushing US into a clear cut recession while driving the dollar back to its lows.

Next week the US data calendar is relatively sparse, so some of these macro economic questions may have to wait to be resolved until the month over. Aside from PPI which most market analysts expect to decline sharply, the one report that is likely to garner interest will be the Existing Housing release due on Friday. Although the housing sector is in a severe contraction with annual run rate now consistently below the important 5M unit mark, traders will once again look for any sign of stabilization and if they find it the greenback may get a small boost from the results. – BS



...more...

[UpInArms]

24. U.S. inflation, growth worries keep dollar under pressure

http://www.reuters.com/article/hotStocksNews/idUSN1638788520080519?sp=true

LONDON (Reuters) - The dollar slipped to a 2-1/2 week low against a basket of major currencies on Monday, as the worst U.S. consumer confidence reading in nearly three decades raised concerns about stagflation.

The May Reuters/University of Michigan index of U.S. consumer confidence dropped to 59.5 on Friday, the lowest level since June 1980, while short-term inflation expectations surged to their highest in a quarter of a century.

In contrast, analysts said that there was scope for relatively robust readings from key German sentiment surveys this week to support the euro by reinforcing the case for the European Central Bank to leave rates on hold a while longer rather than cutting them.

"For now it looks as though markets are going to continue to press the (euro's) top up towards $1.5650... but I don't think we are really going to have the momentum to break out of the current ranges," said Jeremy Stretch, strategist at Rabobank.

"Investors might be buying into the idea that the German data -- ZEW and Ifo later this week -- might be a little bit on the firmer side of expectations," Stretch said.

"And at the same time there's increasing nervousness about the inflation picture in the U.S. ... if growth remains weak and inflation is elevated then that's not a particularly comfortable place to be," he added.

...more...

[ozymandius]

25. "Horrid US Consumer Data"

Those charts are dizzying in their net-negative showings. I am thinking of the term 'recession' in various related qualities. The one at hand being a recession in the dollar's strength. If this is a "slowdown" - as the Bush administration calls it - then a full-blown recession is truly a bizarre and rare creature that defies standard academic definition.

[UpInArms]

29. and that is just the tip of the data that

TPTB let go to print

I find it somewhat interesting that USA Today (a right-wing shill rag during the Clinton years) now questions the veracity of the reports

from the Daily Reckoning:

Consumer Confidence is at its Lowest Point Since 1980

By Bill Bonner • May 19th, 2008 • Related Articles • Filed Under

The Dow rose more than 90 points yesterday. Oil, gold, the dollar – all held steady.

But here’s some good news:

Last month, the price of gasoline went down 2%, says the Labor Department.

Wait a minute. Do you remember gasoline prices going down in April? We don’t. As we recall, oil prices were soaring...and so was the price of gasoline.

We’re beginning to sniff something funny in the air...a rat.

It was largely thanks to this reported drop in prices at the pump that the Consumer Price Index registered a scant 0.2% increase for the month of April. And it was largely because of this low inflation reading that the yield on the 10-year note stayed below 4%, says Gary Dorsch.

Our view is that higher consumer price inflation is in the pipes and will soon be backing up in the bathtub drains. Dorsch says the U.S. money supply is now increasing at a 16% rate; higher inflation can’t be far behind.

Generally, we don’t trust numbers. Who can trust a 5 after all – with a bottom like a communist sickle and its top nicked from a swastika? Who can trust an eight – wandering back and forth and never getting anywhere? And what about the zero? What does it mean? You put it in front of a number and it means nothing. You put it behind...and all of a sudden you’ve got 10 times as many. So, let’s look a little more at those numbers – that is, at the crooked 4s, the slick 6s, and the empty 0s – put out by the feds.

<snip>

“Inflation may be worse than the consumer price index shows,” suspicions USA Today .

“Food costs jump most in 18 years,” notices the Washington Post .

...more...

[ozymandius]

31. I'm glad to see Mr. Dorsch's assessment reviewed by his peers.

Because he was the first in a long while to articulate the fudginess of the Fed numbers. And to do so with such blatantly manipulated data.

I can appreciate a news outlet's reticence to avoid calling government sources outright liars. That can spoil a relationship when the journalist needs information during critical times. However - the motive and the actions of the Labor Department's arrival at such a tame inflation rate looks like, sounds like and acts like Soviet style manipulation of the numbers. It is the "official" story.

And therein is rests the rub: how can one trust the office of official information to provide quality data under any administration?

[specimenfred1984]

41. I guess reuters didn't hear the news: all that hate will eat them up!

They should join the happy-joy propaganda chorus of everything is cheap and beautiful! How dare they even vaguely express any negative sentiment.

[UpInArms]

21. Gold above $900, platinum hits 2-mth high ahead of JM

http://www.reuters.com/article/hotStocksNews/idUSL1964431820080519?sp=true

LONDON (Reuters) - Gold extended gains to hit its highest level in nearly a month above $900 an ounce on Monday on the back of speculative buying as oil held near record high, raising fears of inflation.

Platinum tracked gold's gains and jumped to its highest level in more than months. Speculation that precious metals refiner Johnson Matthey (JMAT.L: Quote, Profile, Research) would release bullish supply and demand outlook report for 2008 also spurred buying.

Spot gold <XAU=> hit a high of $911.60 an ounce, its highest level since April 23, up from $899.55/900.95 late in New York on Friday but remained below a lifetime high of $1,130.80 hit on March 17.

Previous attempts to revisit the record high have been meet by heavy profit taking, which saw gold fall to a four-month low at $845 an ounce in early May.

"Whether gold will hold above $900 is a difficult question. Around about $920 should be the psychological resistance for the metal," said Walter De Wet, analyst at Standard Bank.

"If the dollar can appreciate again to around $1.54 (against the euro), we should see gold becoming down again. Platinum of course remains very well supported from the physical side."

...more...

[UpInArms]

22. BAE chief subpoenaed in U.S. over Saudi arms deal - Bandar Bush alert

http://www.reuters.com/article/businessNews/idUSL1822134020080519?feedType=RSS&feedName=businessNews&sp=true

WASHINGTON (Reuters) - U.S. officials investigating alleged bribes in a Saudi arms deal subpoenaed the chief executive of BAE Systems (BAES.L: Quote, Profile, Research), Britain's biggest military contractor, on his arrival in the United States last week, BAE officials said on Sunday.

A subpoena was served on Mike Turner, the CEO, at George Bush International Airport in Houston, Texas, on May 12, said Greg Caires, a BAE spokesman in Washington.

<snip>

The British government's Serious Fraud Office dropped an inquiry into the deal in December 2006 after then-Prime Minister Tony Blair said the probe threatened national security.

<snip>

A BAE shareholder has charged past and present BAE board members breached their duties by allegedly allowing more than $2 billion in kickbacks, illegal bribes and other payments to Prince Bandar bin Sultan and others.

Bandar, the former ambassador to the United States who is now the head of Saudi Arabia's national security council, has strongly denied the charges, as has BAE.

The lawsuit was brought by the Michigan city of Harper Woods' employee pension fund. It is before a U.S. federal judge in Washington, Rosemary Collyer, who earlier this year temporarily barred Bandar from removing real estate proceeds from the United States.

...more...

[DemReadingDU]

23. Credit Crisis Timeline

From Ed's forum. I discovered this blog over the weekend. The timeline is very extensive. Here is the introduction from Ed...

There have been a tremendous number of economic dislocations during the present financial crisis. Initially written off as a sub-prime crisis, leading policy makers said the crisis was contained. It has since spilled over into Jumbo mortgage rates, Collateralized Debt Obligations (CDOs), all asset backed securities, High Yield bonds, SIVs, the inter-bank market, commercial paper, money market funds, the auction rate market hedge fund losses, and a massive housing bust and the real economy. Financial Institutions from around the world are writing down billions of dollars of losses. Housing markets are falling in the US, the UK, Spain and Ireland. This crisis is truly global.

I decided to take a look to get a comprehensive view of what this is doing to our financial system. Below is a partial list of major announcements of asset writedowns, bank failures, CEO firings, trading losses, capital raising and job losses at major global lending institutions as a direct result of the credit crisis of 2007-2008.

In addition, I have included a number of pre-crisis merger announcements that served as prelude to an increased risk taking after the deals closed and leading up to the crisis. You can consider it a credit crisis timeline by financial institution as well as a traditional timeline.

The list reaches far and wide and should give one pause as to the ability of the global financial system to recover from this calamity without significant recessionary effects in the real economy in the US and elsewhere. The losses and needed capital continually rise, with investors willing to infuse these institutions with capital time and again.

I will update and backfill this list as more information becomes available and as time permits. This crisis has been consistently underestimated as it gathers steam. It is far from a subprime crisis, but rather a debt crisis because of the debt and leverage threatening global financial stability.

Click and page forward to see the timeline of events and comprehensive list of banks, financial institutions, and countries involved...
http://edsforum.blogspot.com/2008/05/credit-crisis-timeline.html


Edit: This is a long list! I am sending this link to my family and friends who are not as aware of the financial crisis as we are on this SMW forum.

[InkAddict]

32. That's quite a compilation of releases outlining the disappearance

of "mystery monies," amd what happens when "black-hatted bankers" lay-off or pay-off auditors combined with the consequences of itchy-fingered nuclear football-holding, government-seated Neocon deregulation that dismantled oversight - astounding suspension of principle and greed above; massive hardship and pain beneath.

[Warpy]

33. Good information is in the first comment on the article

with links to copy and paste about how it all came about.

I was too poor to pay much attention during the S&L crisis except to wonder just why S&L banks were writing huge loans to developers for commercial projects instead of to Mom and Pop for houses. I had no idea Milken was laundering debt into CDOs and shopping them around.

Deregulation, aint it great!

[UpInArms]

27. As homes foreclose in U.S., squatters move in

http://www.reuters.com/article/newsOne/idUSN2849018120080519?sp=true

BROCKTON, Massachusetts (Reuters) - They enter through a broken first-floor window each night to sleep on a moldy bed in the abandoned four-family house at 827 Main Street, part of a new generation of squatters emboldened by America's housing foreclosure crisis.

"For squatters, foreclosed homes like this are like a camp-ground with free camping," says real-estate broker Marc Charney, a foreclosure specialist, as he enters the home in Brockton, Massachusetts, and shines a flash-light at a mattress where homeless people have been sleeping each night.

Squatting is on the rise across the United States as foreclosures surge, eviction notices mount and homes go unsold for months, complicating the worst U.S. housing slump in a quarter century and forcing real-estate brokers to enlist the help of law enforcement and courts to sell empty houses.

In some regions, squatting is taking on new twists to include real-estate scams in which thieves "rent out" abandoned homes they don't own. Others involve "professional squatters" who move from one abandoned home to another posing as tenants who seek cash from banks as a condition to leave the premises -- a process known by real-estate brokers as "cash for key."

<snip>

"And they have caught wind that what most of these banks are doing is giving cash for keys, so cash for eviction -- anywhere from $1,000 to $1,500. So here you have a squatter who goes into a property, takes up residence, tells you that he is a tenant, goes to court and says that he is a tenant.

<snip>

The problem is compounded in some states by the weakening economy and its effects on America's homeless, who number about 744,000 each night according to the National Alliance to End Homelessness, an advocacy organization in Washington.

...more...

[AnneD]

36. Foreclosures mean opportunity for Habitat charity

MINNEAPOLIS — The foreclosure crisis that has forced thousands of families from their homes has given something good to the nation's best-known housing charity: Cheap properties for sale in communities around the country.

Some Habitat for Humanity chapters have seized buying opportunities in neighborhoods affected by the mortgage meltdown, snapping up scores of empty lots and unoccupied homes — some for as little as half price.

"The down real estate market is a wonderful opportunity for all Habitats," said Gage Yager, executive director of Trinity Habitat for Humanity in Fort Worth, Texas. "As prices drop, we have the opportunity to acquire at prices that just weren't available a few years ago."

In the Minneapolis area and elsewhere, the charity that offers affordable housing to low-income families is buying foreclosed homes and using volunteers to renovate them. If that's not practical, the houses are torn down to make way for new dwellings. In some cities, Habitat is even buying parts of subdivisions that developers couldn't afford to finish.

Habitat officials don't see themselves as capitalizing on the misfortune of others. They say putting families into affordable Habitat homes is much better than allowing properties to remain vacant or letting slumlords grab them.

http://www.chron.com/disp/story.mpl/ap/business/5789597.html

Something good coming out of this mess....

[kineneb]

42. as I thought would happen

I mentioned this some time back (somewhere here); empty houses are an open invitation to squatters.

[AnneD]

46. You forgot to mention other uses....

safe houses for illegals-big in AZ., drug and narcotic houses....honestly a decent squatter is the least of their problems and can protect the premises.

[kineneb]

47. "squatters" of all kinds

indeed.

There is a serious problem with people stripping out the copper wiring to sell it on the metals market, and stealing the plumbing, which really destroys the houses.

[ozymandius]

30. 8am blather and numbers

S&P futures vs fair value: -0.8. Nasdaq futures vs fair value: +0.2. Futures point to a muted start to the trading day. The top story this morning is news that Microsoft (MSFT) announced it is in talks to make a transaction with Yahoo! (YHOO), but the transaction does not involve acquiring all of Yahoo. In earnings news, retailer Lowe's (LOW) topped its earnings estimate by a penny, but reported revenue that fell short of expectations. Meanwhile, crude oil is trading up 0.9% to $127.40 per barrel, $0.42 cents shy of its all-time high that was reached last Friday.

[AnneD]

37. Buying in bulk goes the way of $2 gas

NEW YORK — Shoppers have been lugging ever-larger products to their ever-bigger cars for years. Now, more of them are feeling so pinched by the sagging economy that they are embracing a new behavior: buying a little at a time.

From meat to mustard, consumers are trying to control their food bills by buying smaller-size items as they grapple with soaring prices. Companies have taken note, experimenting with different measures like 3/4 -gallon milk jugs and pies that have shrunk to 6 inches.

"I don't stockpile any more," said Lorraine Woodcheke, a publicist from San Francisco, who in January started buying smaller containers of food to control her budget. "I don't have a pantry that is overflowing. I can't justify letting food go bad the way I used to."

Data from research by the Nielsen Co. and retailers that sell fuel show that downsizing is even occurring at the pump, with drivers limiting how much they fill their tank to avoid getting hit with a hefty payment at one time.

While plenty of shoppers are still buying in bulk, helping boost sales at warehouse club operators like Costco Wholesale Corp., the growing trend of buying in bits is the latest sign of how cash-strapped people are.

http://www.chron.com/disp/story.mpl/business/5786442.html

I can't decide to finally be honest about this or what.... actual volumn in the packaging has been decreasing for the last 4+ years and the price has remained the same.:wtf: Actually I prefer to buy in volumn on lots of things that can't expire or that we use alot of (tuna, pb&j, paper towels, and tp).

[kineneb]

43. buying in volume is only good for non-perishables

As a now-single person, I really don't need large quantities of anything. It makes little sense for me to buy bulk unless it indeed something like t.p. or canned goods.

[AnneD]

38. YesterdayÂ’s must-have is today's luxury

MORGANTOWN, W.Va. — At The Wine Rack, where sales from the $10-and-under shelves are booming, Jocelyn Vorbach says aloud what most of her customers won’t: Friendships now have price tags, and dinner guests are gauged.

“There are friends who get the $300 Caymus and there are friends who get the $10 bottle,� Vorbach says. “They’re saying, ‘I like them, but I don’t like them that much.’�

Even wealthier customers are stocking up on bargain bottles, though they tend to purchase by the case.

“Before, they wouldn’t be caught dead with a $9.99 bottle in their presence,� she says. “But now they will. As long as I tell them it’s a good one.�
more...

http://www.chron.com/disp/story.mpl/business/5786440.html

I don't know what happened to the font but it is still a good read.

[AnneD]

39. Another blow for ex-Enron employees

In the back of his mind, Richard Barrett knew this might happen. Something told him to spend the money fast. It was too good to be true.

After all, the check came from Enron, where nothing is what it seems.

"Anything and everything that's ever come my way from them, I viewed it as I better do something with it quick," the Orlando, Fla., resident said. "I had this disbelief that I'd ever be getting something from them."

I first wrote about Barrett and some of his fellow workers at Enron's former pipeline business, Florida Gas Transmission Co., almost four years ago. At the time, they were worried that Enron would abandon its pension obligations, as many bankrupt companies do.

MUCH more....

http://www.chron.com/disp/story.mpl/business/steffy/5787011.html

New ways to get screwed by corp Amerika....

[Ghost Dog]

40. Oil stocks push Europe shares to 4-mo closing high

FRANKFURT, May 19 (Reuters) - European shares rose to a four-month closing high on Monday as buoyant oil and commodity stocks offset weaker financials, while gains on Wall Street lent further support.

The FTSEurofirst 300 index of top European shares unofficially closed 0.9 percent higher at 1,377.45 points, extending a three-day winning run and hitting its highest close since Jan. 16.

U.S. stocks rose during European stock market trading hours after a key economic forecasting gauge suggested that even though the economy was weak, it has averted recession, easing worries about the profit outlook.

"Many market participants are preparing for rising inflation. They are looking for companies with strong pricing power, which can easily pass on higher prices. Commodity companies in the oil and mining business can and that's one way of protecting your portfolio from a higher inflation," said Markus Steinbeis, head of European equities at Pioneer Investments in Munich.

Energy stocks featured prominently among the top weighted gainers, with Total (TOTF.PA: Quote, Profile, Research) rising 3.1 percent and BP (BP.L: Quote, Profile, Research) up 1.3 percent, as crude traded above $126 a barrel, while mining stocks also rose, with Anglo American (AAL.L: Quote, Profile, Research) gaining 4 percent and Rio Tinto (RIO.L: Quote, Profile, Research) advancing 1.6 percent.

/. http://www.reuters.com/article/marketsNews/idCAWEA758420080519?rpc=44

"...companies with strong pricing power, which can easily pass on higher prices..." - Ah, but just how easily and for how long?

[Ghost Dog]

44. See "The Sucker Rally" from DU's Daveparts:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x360357

[antigop]

45. Banks keep $35 billion off income statements

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

Banks and securities firms, reeling from record losses resulting from the collapse of the mortgage securities market, are failing to acknowledge in their income statements at least $35 billion of additional writedowns included in their balance sheets, regulatory filings show.

Citigroup Inc. subtracted $2 billion from equity for the declining value of home-loan bonds in its quarterly report to the Securities and Exchange Commission on May 2 without mentioning the deduction in the earnings statement or conference call with investors that followed. ING Groep NV placed 3.6 billion euros ($5.6 billion) of negative valuations in its capital account, while disclosing only an 80 million-euro depletion to income.

The balance-sheet adjustments are in addition to $344 billion of writedowns and credit losses already reported on the income statements of more than 100 banks. These companies have raised $263 billion from sovereign wealth funds, their own governments and public investors to shore up capital. The balance-sheet writedowns also reduce equity, which needs to be replenished. Adding the $35 billion leaves the banks with a $116 billion mountain of losses to climb.

``The smart people are the ones who've identified the problems, put them out there in full transparency, and addressed them by raising more capital,'' said Michael Holland, who oversees more than $4 billion as chairman of Holland & Co. in New York. ``There is still billions of dollars of crap out there that hasn't worked itself through the system. Banks need more capital to work that all out.''

[AnneD]

48. A few billion here

a few billion there and pretty soon it adds up to some real money.....I think it was Tip O'Neal that said that once.

[Robbien]

50. A sneaky way of making sure they don't effect CEO bonuses

If they stay on the balance sheet as a direct hit to RE, they don't effect bottom line income statement, the basis for CEO bonuses.

Sneaky bastards.

[ozymandius]

51. Here's the closing numbers jumble.

Dow 13,028.16 Up 41.36 (0.32%)
Nasdaq 2,516.09 Down 12.76 (0.50%)
S&P 500 1,426.63 Up 1.28 (0.09%)
10-Yr Bond 3.839% Down 0.011
NYSE Volume 3,683,976,500
Nasdaq Volume 2,278,015,500

16:15 ET
Tech, Financials Spur Late Retreat
Dow +41.36 at 13028.16, Nasdaq -12.76 at 2516.09, S&P +1.28 at 1426.63

(BRIEFING.COM) On Monday, the stock market rose as much as 1%, but ended the day nearly unchanged following a late-day sell-off. Some negative news out of the tech sector prompted traders to lock in some profits following the S&P 500's strong 2.7% gain in the prior week.

At a JPMorgan tech conference, flash memory maker SanDisk (SNDK 30.02, -2.42) noted it continues to see soft U.S. retail sales, similar to levels it saw in the first quarter. This caused a notable drop in SanDisk's stock, as well as the tech sector (-0.5%), which ended the session as a laggard.

Shares of Microsoft (MSFT 29.46, -0.53) also weighed on the market after traders were disappointed that the company is in talks with Yahoo! (YHOO 27.68, +0.02) about a possible business "transaction" that does not involve acquiring all of Yahoo. Reuters reported Microsoft's proposal involves purchasing Yahoo's search business.

In earnings news, home improvement retailer Lowe's (LOW 24.25, -0.64) reported better-than-expected first quarter earnings, but its revenue fell short of estimates and the company lowered its full year outlook. Competitor Home Depot (HD 28.87, -0.23) -- which reports earnings tomorrow -- fell in conjunction with Lowe's. Separately, shares of Campbell Soup (CPB 33.70, -2.25) posted a hefty 6.3% decline -- the largest in more than eight years -- after the company missed its earnings estimate.

Five of the ten economic sectors posted a loss, led by weakness in financials (-0.5%) and tech. Goldman Sachs (GS 184.40, -2.74), Morgan Stanley (MS 46.20, -1.01) and Lehman Brothers (LEH 42.79, -0.85) were laggards after having their second quarter earnings estimates cut at Citigroup. Meanwhile, the energy sector (+1.0%) provided leadership as crude prices advanced.

With regard to crude oil, the commodity settled with a gain of $0.77 at $127.06 per barrel, marking a new all-time closing high. The current contract for June delivery expires tomorrow.

The session's sole economic release topped expectations. The April leading indicators index -- a basket of economic indicators -- rose 0.1%, marking its second straight increase after five consecutive declines. This was better than the flat reading economists expected, and matched the Briefing.com forecast. Looking ahead, early indications in stock prices, M2 (money supply), yield curve and other indicators suggest an even larger gain in May, reflecting improved prospects for the economy.