STOCK MARKET WATCH, Thursday 17 November

[ozymandius]

Thursday November 17, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 66 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1792 DAYS
WHERE'S OSAMA BIN-LADEN? 1491 DAYS
DAYS SINCE ENRON COLLAPSE = 1453
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON November 16, 2005

Dow... 10,674.76 -11.68 (-0.11%)
Nasdaq... 2,187.93 +1.19 (+0.05%)
S&P 500... 1,231.21 +2.20 (+0.18%)
10-Yr Bond... 4.48% -0.07 (-1.60%)
Gold future... 479.10 +10.10 (+2.11%)






GOLD, EURO, YEN, Dollars and Loonie


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [email protected]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Martin Goldberg

S&P Forecasts Blue Skies
Sales and Earnings Growth of “7-11” Respectively!

Will the next big move in the stock market be a rise or a fall? Technicians focused on the long term tend to suggest that the next big move will be down, while rationalizing that the rally off of the October 2002 bottom was a cyclical move within a secular bear market. It is relevant to examine long term valuation parameters as well as sales and earnings projections to see where we now are with respect to stock market valuations. An objective examination of these historic relationships suggests that the next big move will be a downward one.

The chart below depicts on a semi-log scale, the long term relationship between price and earnings of the S&P 500 from 1880 to the present. The data to compose this chart was from work done by Professor Robert J. Shiller, author of the book, Irrational Exuberance, and used with permission. Note that except for 1929 and the millennium boom, price to earnings ratios ranged within the green box depicted in the chart. At present, the price to earnings ratio of the S&P 500 is at the top end of the range defined by the green box. Unless this time is different, the odds would favor the price to earnings ratio moving back toward the center of the green box.


-cut-

Today’s Market

While the aggressive sales and profit estimates by S&P are a bit hard to believe, as with any analysts, you sometimes have to give them their due. S&P’s 2004 edition of the “500 Guide” warned investors about the now bankrupt Delphi Corp:

”The shares offer an above average dividend yield, but we believe total return will be sufficiently negative to justify selling the stock.”

The stock market finished neutral today having churned on high volume. The bond market rallied, while economic data showed benign inflation. That pop in the gold and silver market said otherwise in no uncertain terms! The game is to tell the public that inflation is benign while attempting to keep interest rates down. The assumption is that the public is too dense to question what they are being told by the presentation of economic data. With gold and silver rallying into new high ground, this strategy won’t necessarily work.

more...

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

[ozymandius]

2. Senate Panel Backs Bernanke for Fed Post

WASHINGTON - Ben Bernanke moved a step closer on Wednesday to becoming the next chairman of the Federal Reserve, a job where he'll wield much power over the financial fortunes of investors big and small.

The Senate Banking, Housing and Urban Affairs Committee, by voice vote, favorably recommended his confirmation to the full Senate. Considered one of the country's leading economic thinkers, Bernanke is expected to get a positive vote there as well.

The timing of a Senate vote was unclear. A spokeswoman for Senate Majority Leader Bill Frist, R-Tenn., said nothing was scheduled but that a would come before Fed Chairman Alan Greenspan steps down in late January.

During the committee's consideration of the nomination, Sen. Jim Bunning (news, bio, voting record), R-Ky., was the only senator present voicing opposition to Bernanke. Bunning cited concerns that the nominee would be too much in the mold of Greenspan and not a sufficiently independent thinker.

more

[UpInArms]

73. Fed Nominee Bernanke Was Molded By Upbringing in Small-town South

http://www.forward.com/articles/6896

When Ben Shalom Bernanke, President Bush's nominee to be the new Federal Reserve chairman, was a teenager in the small town of Dillon, S.C., in the 1960s, he helped lead services and roll the Torah scrolls in the town's synagogue.

Judaism remains a part of Bernanke's life, but the Princeton University economist does not wear his religion on his sleeve, associates say. According to friend and collaborator Mark Gertler, chairman of New York University's economics department, Bernanke, 51, "keeps his feelings and beliefs private... but it's really embedded in who he is."

Bernanke's policy views, however, were on full display this week as he faced questions Tuesday from the Senate Banking Committee, which probed him on his convictions about inflation targeting and the government's budget deficit. Democratic senators, in particular, sought assurances that Bernanke, presently chairman of Bush's Council of Economic Advisers, would be independent of the White House.

"I assure this committee that, if I am confirmed, I will be strictly independent of all political influences and will be guided solely by the Federal Reserve's mandate from Congress and by the public interest," Bernanke told the lawmakers.

...more...

I don't think you can separate "political influence" from someone who is not well balanced. :eyes:

[ozymandius]

3. Crude Oil Prices Slip

VIENNA, Austria - Crude oil prices slipped Thursday as traders weighed the effects of a cold front descending on the United States against a build in U.S. heating oil inventory figures.

Analysts said the length and severity of the cold snap could determine where prices are headed, with long-term chilly weather sure to drive markets upward.

Light, sweet crude for December was down 9 cents to $57.79 a barrel by late morning in Europe on the New York Mercantile Exchange. Prices had risen 90 cents to close at $57.88 Wednesday, a day after hitting its lowest closing price in four months. Still, crude is over 20 percent higher than a year ago.

-cut-

Oil prices have been dictated recently by the weather in the northern United States, the world's biggest heating oil market. Warmer than normal temperatures have depressed prices, while colder weather lifted prices Wednesday.

more

[UpInArms]

22. OPEC oil price falls below $50 (to call for a cut in production?)

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-11-17T113952Z_01_RID741960_RTRUKOC_0_US-ENERGY-OPEC-BASKET.xml

LONDON (Reuters) - OPEC's own oil price fell below $50 a barrel for the first time since the start of June on Thursday, touching a level that may trigger calls from some producers for the cartel to cut output.

The value of OPEC's basket of crudes fell to $49.73 on Wednesday, the group said on Thursday, down from $50.01 the previous day.

A mild northern hemisphere autumn has wiped a fifth off the cost of oil since late August when hurricane damage to the U.S. industry sent prices to record highs.

OPEC-member Venezuela, typically hawkish on prices, has already said the organization might need to consider cutting its 30 million barrels per day (bpd) output to offset recovering U.S. production from the Gulf of Mexico.

The decline in the basket price may pull other OPEC ministers round to Caracas' view.

Oil producers have grown accustomed to prices well in excess of $50 after a two-year rally fueled by strong demand from top consumer the United States and the rapidly expanding economies of China and India.

...more...

[UpInArms]

40. Dec NatGas @ $12.25 mln btus

10:30am 11/17/05 DOE: NATURAL GAS UP 53 BILLION CUBIC FEET IN LATEST WEEK

10:31am 11/17/05 NATURAL GAS DOWN 7.9 CENTS AT $12.25

[UpInArms]

55. Collapse in energy prices hits oil stocks

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38673.4771674306-851085718&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) - Trading in oil stocks turned mixed Thursday, as the rally in crude and natural gas futures collapsed on the New York Mercantile Exchange. Both stocks and commodities advanced strongly Wednesday after the Energy Department reported unexpected climbs in crude and gasoline supplies. The Amex Oil Index ($XOI) eased 0.1% to 975.29 points, the Amex Natural Gas Index ($XNG) added 0.4% to 380.49 points, and the Philadelphia Oil Service Index ($OSX) rose 0.2% to 171.58 points.

Will look and see if I can find the current prices - where's the "collapse"?

Did it fall below $35 bbl?

[UpInArms]

56. LOL! Collapse! Dec Crude @ $57.40 bbl - Heating Oil @ $1.7275

http://www.marketwatch.com/news/story.asp?guid=%7B8F3B8DFC%2D5472%2D450D%2D9B73%2D41FA8023DA01%7D&siteid=mktw

NEW YORK (MarketWatch) - Trading in oil stocks turned mixed Thursday, as the rally in crude and natural gas futures collapsed on the New York Mercantile Exchange.

Both stocks and commodities advanced strongly Wednesday after the Energy Department reported unexpected climbs in crude and gasoline supplies.

On the New York Mercantile Exchange, December crude shed 48 cents to $57.40 a barrel. December heating oil fell 1.7 cents to $1.7275 a gallon, and December gasoline was unchanged at $1.483 a gallon.

...more...

These people are jokers!

Collapse!

:wft:

[wordpix]

82. I hope the Oily execs have lost millions since their price gouging

started

[UpInArms]

64. World faces permantly higher oil costs-Fed's Poole the Tool

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T172724Z_01_WBT004290_RTRIDST_0_ECONOMY-FED-POOLE-OIL-URGENT.XML

FRANKFORT, Ky, Nov 17 (Reuters) - Growing demand and constraints in supply mean global energy prices are likely to stay at loftier levels from now on, St. Louis Federal Reserve President William Poole said on Thursday.

<snip>

"We have no reason to believe that the Chinese economy is suddenly going to go backward, nor do I think that that's going to be true in the United States. And as we exhaust the more easily recovered supplies, oil is becoming more difficult and expensive to find and to produce," he added.

Poole said his "best guess" is prices will stick near current levels, which will require changes in consumption such as smaller houses, smaller cars and more conservation efforts.

"I think we're going to have relatively smooth adjustments (in the United States). They're not going to be disruptive," he said. "They can be painful when you're paying those high prices at the gas pump, but we're going to make the adjustments and then we're going to get used to it and life will go on."

...more at link...

Ho Hum!

What a freak!

No pain - just smooth sailing!

I wonder if those cardboard boxes will be considered "smaller houses"?

[UpInArms]

72. Poole the Tool says US at "full employment"

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T180741Z_01_WAT004404_RTRIDST_0_ECONOMY-FED-POOLE-INFLATION-URGENT.XML

FRANKFORT, Ky, Nov 17 (Reuters) - St Louis Federal Reserve President William Poole on Thursday said October inflation data showed the United States was not on an "inflation hair-trigger" and the central bank has room to allow the economy to grow.

"Just because growth turns out to be on the high side of expectations, I would not see that, in and of itself, as a signal that policy needs to be a lot tighter," he told reporters after giving a speech at Kentucky State University.

"If it turns out that the economy grows at 3-3/4 (percent of GDP in 2006) and we see, with that growth, absence of signs that we are running into real inflation risks, then I would not want to be quick to cut it off. If we ended up with 6 percent growth, I'd say hey, wait a minute now," Poole said.

Poole said falling jobless levels had tightened U.S. labor market conditions to a point that might, on a theoretical basis, be now at so-called "full employment".

...more...

The more this jerk talks, the more he shows his arse.

[wordpix]

83. the guy's wrong b/c ethanol will replace gasoline refined from oil

price of oil may well go DOWN along with Oily execs and BushCo oil and arms cartel

[ozymandius]

4. Austria's BAWAG sues Refco in U.S

VIENNA (Reuters) - BAWAG P.S.K., a top creditor of collapsed futures trader Refco, said on Thursday it was suing Refco's former head and 28 Refco units in the United States for fraud over a 350 million-euro loan.

BAWAG, owned by Austria's trade union federation, made the loan to Refco's then chief executive, Phillip Bennett, on October 10, a day before he was arrested for securities fraud and shortly before Refco (Other OTC:RFXCQ - news) filed for insolvency.

BAWAG said Refco was "fully aware" of Bennett's efforts to obtain the loan and intended to deceive BAWAG until it received the money.

"Refco acted deliberately and with the intent to deceive, defraud and mislead BAWAG as to the true state of affairs until Refco had received 350 million euros," BAWAG said, summarizing the contents of the complaint.

more

[UpInArms]

20. Bennett Confidant Wore Many Hats at Refco

http://www.thestreet.com/_googlen/markets/matthewgoldstein/10253230.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA

excerpt:

Philip Silverman, an accountant who has held a number of top jobs at Refco for nearly a decade, was put on leave last month, say two people familiar with the investigation by federal prosecutors and securities regulators. His leave began around the same time Refco announced it had ousted Bennett and former president Santo Maggio.

<snip>

Silverman, for instance, appears as a signatory on a December 2004 merger agreement between Refco Group Holdings and DF Capital Inc., another small company that was wholly owned by Bennett. It's not clear if DF Capital is related to the accounting scheme, but investigators are interested in the merger between the two Bennett-controlled companies because it occurred just four months before Refco filed its IPO registration statement.

Corporate records, however, show that DF Capital received an unknown amount of financing from Austria's Bank Fur Abeit und Wirtchaft, which at one time owned 10% of Refco. The records show that Bawag began providing financing to DF Capital in November 2003 and the loans continued up until August 2004. BAWAG is the same bank Bennett turned to -- just days before his scheme came to light -- to secure a $430 million loan to pay off the debts he'd allegedly been hiding.

<snip>

Silverman's knowledge of these and other transactions involving Refco Group Holdings could be crucial to the investigation. Prosecutors allege that Bennett relied on a series of circular loans with a Refco hedge fund customer to mask that Refco Group Holdings was being used as a dumping group for old customer trading losses and other bad debts.

...more...

[UpInArms]

21. Thomas H. Lee And Trouble

http://www.forbes.com/home/management/2005/11/16/lee-private-equity-fund-cx_lm_1117lee.html

NEW YORK - Thomas H. Lee Partners has its annual meeting with its investors in Boston on Thursday, where talk is sure to focus on the firm's strategy for getting out of the Refco mess.

<snip>

Last year, Lee's $508 million investment in Refco, formerly the largest independent futures brokerage, seemed like a winner. And it certainly seemed that way in August, when Thomas Lee brought Refco public with a successful initial public stock offering that doubled its investment. The firm managed to return $177 million of its initial stake in Refco to its fund investors.

But then everything fell apart. Refco is now in bankruptcy, and its businesses are being auctioned off after the arrest of its former chairman Phillip Bennett on charges that he hid some $430 million of debt from the company.

Earlier this week, Thomas Lee Partners filed suit against three former Refco executives, seeking to recoup $245 million and accusing them of a "sophisticated and long-concealed fraud." The suit names Bennett along with former Executive Vice President Santo Maggio and former President Tone Grant.

...more...

[ozymandius]

5. Today's Reports

8:30 AM Building Permits for Oct
Briefing Forecast 2175K
Market Expects 2170K
Prior 2219K

8:30 AM Housing Starts for Oct
Briefing Forecast 2075K
Market Expects 2060K
Prior 2108K

8:30 AM Initial Claims 11/12
Briefing Forecast 320K
Market Expects 322K
Prior 326K

9:15 AM Capacity Utilization for Oct
Briefing Forecast 79.7%
Market Expects 79.6%
Prior 79.0%

9:15 AM Industrial Production for Oct
Briefing Forecast 1.0%
Market Expects 1.0%
Prior -1.5%

12:00 PM Philadelphia Fed for Nov
Briefing Forecast 18.0
Market Expects 15.0
Prior 17.3

[UpInArms]

23. 8:30 reports tumbling in:

8:30am 11/17/05 U.S. CONTINUING JOBLESS CLAIMS UP 3,000 TO 2.79 MLN

8:30am 11/17/05 U.S. 4-WEEK AVG. JOBLESS CLAIMS DOWN 13,500 TO 321,500

8:30am 11/17/05 U.S. JOBLESS CLAIMS AT LOWEST LEVEL SINCE APRIL

8:30am 11/17/05 U.S. WEEKLY JOBLESS CLAIMS DOWN 25,000 TO 303,000

8:30am 11/17/05 U.S. OCT. HOUSING STARTS FALL IN ALL 4 REGIONS

8:30am 11/17/05 U.S. SEPT. HOUSING STARTS REVISED UP TO 2.134MLN VS 2.108MLN

8:30am 11/17/05 U.S. OCT. SINGLE-FAMILY STARTS OFF 3.7% TO 1.704MLN

8:30am 11/17/05 U.S. OCT. HOUSING STARTS BELOW 2.07MLN EXPECTED

8:30am 11/17/05 U.S. OCT. BUILDING PERMITS DOWN 6.7% TO 2.071MLN

8:30am 11/17/05 U.S. OCT. HOUSING STARTS FALL 5.6% TO 2.014MLN

[UpInArms]

24. New construction down 5.6% to 2.014 million pace

http://www.marketwatch.com/news/story.asp?guid=%7BE10FC30A%2DEBB8%2D4CA4%2DB959%2DB53872A1400D%7D&siteid=mktw

WASHINGTON (MarketWatch) - New construction of U.S. homes fell 5.6% in October to a seasonally adjusted annual rate of 2.014 million, the Commerce Department said Thursday.

Building permits - which foreshadow future activity - dropped 6.7% to 2.071 million annual units.

Building activity remained fairly robust in October, despite higher mortgage rates and waning consumer confidence.

New construction could fall off in November, however. The National Association of Home Builders said Wednesday its market sentiment gauge plunged to its lowest level in 30 months in November.

In October, housing starts were the fewest since March, while building permits marked the lowest since May after hitting a 32-year high of 2.219 million in September.

<snip>

Starts of single-family homes fell 3.7% to a 1.704 million pace. Starts of multifamily homes sank 14.8% to 310,000. Construction on single-family homes has been relatively steady for the past six months, while the multifamily market has been volatile.

...more...

[Roland99]

54. Wonder what the starts would be if NOLA construction was removed.

[UpInArms]

25. unemployment claims info:

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38673.3542327431-851061232&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) - First-time claims for state unemployment benefits fell to their lowest level in seven months, the Labor Department reported Thursday. The number of initial claims in the week ending Nov. 12 fell 25,000 to 303,000. It's the lowest level since the week ended April 16. The drop was sharper than expected. The consensus forecast of Wall Street economists was for claims to inch lower to 322,000.

Last week revised upward to 328,000

[UpInArms]

28. 9:15 reports in:

9:15am 11/17/05 U.S. MINE OUTPUT FALLS 0.5% IN OCTOBER

9:15am 11/17/05 U.S. OCT. CAPACITY UTILIZATION RISES TO 79.5%

9:15am 11/17/05 U.S. OCT. UTILITIES OUTPUT FALLS 1.9%

9:15am 11/17/05 U.S. OCT. MANUFACTURING OUTPUT CLIMBS 1.4%

9:15am 11/17/05 U.S. OCT. INDUSTRIAL PRODUCTION RISES 0.9% AS EXPECTED

[UpInArms]

29. more info:

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38673.3855679051-851067830&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - U.S. industrial production rose by an overall 0.9% in October, fueled by manufacturing output, the Federal Reserve said Thursday. Recovery efforts related to Hurricanes Katrina and Rita and the end of a strike at a major aircraft producer "contributed significantly to the increase in output," the Fed said. The jump in industrial production matched the 0.9% rise forecast by economists surveyed by MarketWatch. Capacity utilization climbed slightly in October to 79.5% from a revised 78.9% in September.

[UpInArms]

60. Nov Philly Fed "collapses" to 11.5 vs. 17.3

12:01pm 11/17/05 NOV. PHILLY FED NEW ORDERS 12.7 VS. 18.6

12:01pm 11/17/05 NOV. PHILLY FED PRICES PAID 56.8 VS. 67.6

12:00pm 11/17/05 NOV. PHILLY FED INDEX 11.5 VS. 17.3

Now that's a "collapse"!

[UpInArms]

62. The difference between a "collapse" and a "drop"

U.S. Mid-Atlantic factory growth slows in November

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T170727Z_01_N17503288_RTRIDST_0_ECONOMY-PHILLYFED-URGENT.XML

NEW YORK, Nov 17 (Reuters) - Growth at U.S. Mid-Atlantic factories slipped in November as new orders declined, according to a report published on Thursday.

The Philadelphia Federal Reserve Bank said its business activity index fell to 11.5 in November from 17.3 in October, below Wall Street's median forecast for a dip to 15.3.

A reading above zero points to growth in the region's manufacturing.

The new orders index, a key indicator of future growth, retreated to 12.7 in November from 18.6 in October, while the employment index rose to 19.1 from 17.0. A measure of prices paid by manufacturers backed off from very high levels, easing to 56.8 from 67.6.

...more...

A "collapse" is a few pennies on a barrel of oil - no loss on a gallon of heating oil or unleaded gas.

A "drop" is a 6.6% fall in business activity for an entire region of the USoA.

[ozymandius]

6. U.S. stock futures up, Starbucks eyed

LONDON (Reuters) - U.S. stock futures pointed to a firmer start on Wall Street on Thursday with worries about inflation somewhat calmed by data in the previous session and sentiment upbeat ahead of earnings from big brand names.

-cut-

Trade will be cautious ahead of key economic data including housing starts, industrial production and business activity, all giving clues on how the world's biggest economy is faring.

By 1051 GMT U.S. stock index futures were pointing to opening gains of around 0.2 percent for the three main indexes .

"The U.S. equity futures market looks in good order and maybe this could be a session where some much needed progress can be made. The key economic data of the week is posted today," said David Buik, at spreadbetters Cantor Index.

more

[UpInArms]

7. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 92.30 Change -0.03 (-0.03%)

Will U.S. Production Sustain Growth Against Rate Hikes?

http://www.dailyfx.com/index.php?option=com_content&task=view&id=4894&Itemid=39

US Industrial Production (OCT) (14:15 GMT, 09:15 EST)
Consensus: 1.0%
Previous: -1.5%

Outlook: The consensus among economist is for a rebound in production in October by 1.0 percent; which, if realized would represent the largest increase in output since November of 1999. A recoil effect is in order for producers who were paralyzed in September as huge increases in the cost of energy products added to halted production in many factories in the gulf coast area. Leading the way in the spring back will be the recovery in the mining sector following the 9.1 percent tumble from the previous month. With oil refineries reopened and rigs coming back on line, oil and gas production will contribute to the improvement in the indicator. The recovery will be reserved however as crude prices, still above $60, continue to bite into revenues of producer in other sectors. Also, damage to the vital New Orleans port, where much of the U.S.’s shipping took place, still retarded delivery. On the other hand, another hefty improvement to the indicator will emerge from the end of the Boeing strike. The rebound in production from the reduction in filled orders from September will significantly add to returning output for this period. Bleeding some of the potential strength of October’s figure will be the continued erosion in automobile orders. With auto dealers ending their incentives, only lingering orders to restock inventories will seriously factor into overall production numbers.

Previous: Industrial production in the world’s largest economy fell a revised 1.5 percent in September, the largest drop in 23 years. This indicator seems to be another victim in the wake of hurricanes Katrina and Rita. Production running up to September reveals that the activity has been steady, with only one dip in output in the previous 11 months. Taking the most pronounced dive for the period were mining and utilities. Mining, which includes oil and gas, sunk 9.1 percent in September as the price for light sweet crude oil rose to a record $70.85 per barrel. With prices for the necessary commodity posting historically high prices, manufacturers felt the squeeze on revenues and uncertainty in future prices forced managers to scale back on production. In turn, the proportion of industrial capacity in use dropped to 78.6 percent from 79.8 percent in August. Excluding the effects of the hurricanes, economists estimate production actually rose substantially from the previous period. Following the mining sector was the utility sector with output posting a 0.9 percent decrease. Further special, one-time issues in the automotive sector and at Boeing added to the volatile month. A 3.3 percent rise in automotive production in September followed the 5.5 percent jump in the previous month as dealer incentives continued. And a strike a Boeing, the world’s second largest commercial-airplane maker, pulled the indicator lower.



US Philadelphia Fed. (NOV) (17:00 GMT, 12:00 EST)
Consensus: 15.3
Previous: 17.3

Outlook: The recovery in manufacturing in the Philadelphia could be in question if the Philly Fed index releases at economists’ forecasts at 15.3. The outcome of the measure will be important in revealing how the region’s manufacturing sector is coping with price levels for needed materials. Looking to the nations leading indicator on manufacturing, the Empire State Survey, its prices paid component actually continued to rise to a record 60.6 read in November. The proximity of the two regions could translate in similar results to their numbers. The Empire indicator actually rose however, sustained by a rising employment factor, prices received and an improving outlook. Philadelphia manufacturers will likely increase the level of prices they receive going into the month in an attempt to improve bottom lines as prices paid hovers in record levels. A measure of future optimism could also boast a high point for the general indicator. With consumer confidence rebounding and personal spending and aggregate output remaining defiant to the exaggerated cost of energy products, managers are likely to project the strength into the near future. It is also common that the actual result of the indicator reports significantly below or above the indicator. The posting of a 17.3 for the Philly Fed last month was surprising as consensus predicted a 10.0.

Previous: Manufacturing growth in the Philadelphia region returned to pre-storm levels in October by rising to 17.3. A number above zero indicates the number of factories surveyed reporting improving business outpaced those reporting it worsening. The rebound following the slowdown in September with oil prices spiking to all-time highs is evidence to the resilience of the sector. Even with production being hindered by the rising cost of oil in September, Philadelphia factors continued to see strength with the index reading only falling to 2.2. In October, components of the index saw dramatic improvements. The new orders index had the biggest change soaring to 18.6 from a -0.5 read in September. Shipments improved more subtly. From a level of 13.2 in September when shipping was thrown off by a crippled New Orleans port, redirecting finished orders helped to raise the level back to 19.5. The hard hit prices aspect also improved markedly in October. While the prices paid component for raw materials rose to a 25-year high 67.6 from 52.7; prices received made steps at compensating for the burden on manufacturers’ balance sheets. Prices received from other businesses and consumers rose to 32.6 from 8.6 a month before.

...more...

[UpInArms]

18. Yen rises on talk of China emergency FX meeting

http://www.deccanherald.com/deccanherald/nov172005/update6502520051117.asp

The yen bounced back from near a two-year low against the dollar on Thursday as talk that top Chinese officials would hold an emergency meeting sparked speculation that the Chinese yuan would be revalued further.

Traders said the rumours stemmed from a report by consultancy Medley Global Advisors saying that Chinese Premier Wen Jiabao had called an emergency meeting of his foreign exchange advisers, including the central bank governor.

That was enough to trigger short-covering in the recently battered yen at a time when traders were getting nervous about Chinese foreign exchange policy ahead of U.S. President George W Bush's visit to Beijing at the weekend. A spokesman for the Chinese central bank said it had no comment on the rumours.

<snip>

The market has used the yen as a proxy for the not fully convertible yuan. On Wednesday, the Japanese currency hit a 27-month low of 119.58 yen per dollar on electronic trading platform EBS as the dollar garnered support from expectations for rising U.S.

...more...

[UpInArms]

68. U.S. backs away from currency fight with China

http://www.marketwatch.com/news/print_story.asp?print=1&guid={ACCBF9D2-3049-450D-874A-D628F6F8878A}&siteid=mktw

WASHINGTON (MarketWatch) - The Bush administration won't accuse China of manipulating its currency for trade advantages when the Treasury Department issues a report to Congress about the international foreign exchange system, the Wall Street Journal reported Thursday.

Instead, the White House is trying to use the International Monetary Fund to nudge China to allow the yuan to strengthen against the dollar, the Journal said, citing people familiar with the matter.

The move comes as President Bush prepares to arrive in China this weekend for talks about the Chinese economy and the currency. Several U.S. lawmakers and manufacturers have called for Beijing to boost the value of the yuan, claiming it's too low versus the dollar and hurts the competitiveness of U.S. goods.

Treasury spokesman Tony Fratto wouldn't comment on the Journal report.

Thursday morning, Treasury Secretary John Snow said China needs to be given a chance to "prove the validity of their own commitments" to let the yuan gradually rise against the U.S. dollar.

...more...

Hu's peepee must be bigger than dimson's. :eyes:

[AnneD]

77. Never ever...

bring a knive to a gunfight. At the moment all dimson has is a pen knife. :eyes:

[ret5hd]

78. also, never ever piss off your banker. (nt)

[UpInArms]

76. the buck is getting pounded - now under 92

Last trade 91.84 Change -0.49 (-0.53%)

Settle 92.33 Settle Time 23:38

Open 92.39 Previous Close 92.33

High 92.60 Low 91.82

Last tick: 2005-11-17 13:39:48 ET
30-min delayed quote.

[UpInArms]

8. SEC seeks $69 million from ex-Patterson-UTI exec

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-16T234316Z_01_N16633028_RTRIDST_0_ENERGY-PATTERSONUTI-SEC.XML

WASHINGTON, Nov 16 (Reuters) - A U.S. District Court judge froze the assets of the former chief financial officer of Patterson-UTI Energy Inc. (PTEN.O: Quote, Profile, Research) after the U.S. Securities and Exchange Commission complained that the executive had embezzled $69 million from the company.

According to the SEC statement, Jonathan Nelson, 36, fraudulently moved the money to a phony vendor he controlled and then moved the money to other entities he controlled.

Nelson, who resigned from the Snyder, Texas-based oil drilling rig company on November 3, confessed to embezzling $29 million on November 9.

The SEC alleged that Nelson used the funds to buy an airplane, a cattle ranch, homes, vehicles and a truck stop.

...more...

[UpInArms]

9. US CREDIT - LBO threat high, seen persisting (leveraged buy-outs)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-16T221650Z_01_N16603454_RTRIDST_0_MARKETS-CREDIT.XML

NEW YORK, Nov 16 (Reuters) - Leveraged buyouts are running at a record pace in the fourth quarter and credit strategists see no end in sight to the LBO wave that has caused big losses for credit investors this year.

"This activity is not slowing down any time soon, making it imperative to identify targets before they make the news," Morgan Stanley said in a research report published this week.

LBOs usually greatly undermine a company's credit quality, causing big losses for investors through rapidly widening credit spreads and plunging bond prices.

An LBO takes place when investors use mostly debt to buy a company. The resulting company is saddled with the debt, which is supported by the company's cash flow.

LBO volume, measured by total debt issued, totaled about $20 billion in the first half of the fourth quarter, which is on pace to beat the third quarter's record high of $34 billion, according to Standard & Poor's Leveraged Commentary and Data Group.

...more...

[UpInArms]

10. Applied Materials net income falls 46%

http://www.marketwatch.com/news/story.asp?guid=%7BE6A17F94%2DAC17%2D400C%2DA824%2DEF5984DA4137%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) - Applied Materials Inc. late Wednesday reported its fiscal fourth-quarter net income fell 46% as demand for chip equipment used to make computers and consumer electronics slumped.

<snip>

Applied Materials said its net income fell to $247 million, or 15 cents a share, down from $455 million, or 27 cents a share, in the year-earlier quarter. The results included a charge of 2 cents a share for higher taxes.

<snip>

Applied Materials said new orders dropped 35% to $1.69 billion. Still, the company's order book gained strength, growing 15% from the prior quarter as demand increased from memory-chip makers that make consumer electronic gadgets and manufacturers of flat panels for personal computers and televisions.

...more...
Sales fell 22% to $1.7 billion. The results topped Wall Street's expectations for earnings of 14 cents on revenue of $1.6 billion, according to analysts polled by Thomson First Call.

[UpInArms]

11. Pyramid scheme targets immigrants

http://www.marketwatch.com/news/story.asp?guid=%7B6995AB6D%2DE2D9%2D4B57%2D8C45%2DBF601EA5FB97%7D&siteid=mktw

BOSTON (MarketWatch) -- The Securities and Exchange Commission's Boston office has had assets frozen Wednesday for two related companies based in Massachusetts, charging them with operating a fraudulent pyramid scheme targeting Cambodian immigrants.

Also Wednesday, a release from U.S. Attorney Michael Sullivan's office said that arrests were executed Tuesday on a criminal complaint charging three people with mail fraud in connection with the scheme, which is currently estimated to have bilked hundreds of investors out of a total of at least $5 million.

According to the SEC's complaint, WMDS Inc., a business that purports to sell health-care and dietary products, and OneUniverseOnlineInc., a shadow company of that firm, promised investors "exorbitant" rates of return.

For an investment in units of about $26,000 each, investors were promised an initial lump-sum payment of about $2,400. Thereafter, investors were supposed to receive $300 a month for life, with the monthly payments passed on to their children, the complaint filed Tuesday said.

The firms made the payments for a limited time, both to lull investors into believing the investment contracts were legitimate and to get them to unwittingly recruit new investors into the fraudulent scheme, the SEC's complaint alleged.

...more...

[UpInArms]

12. Delphi plans 20,000 layoffs UAW calls final offer an insult

http://www.boston.com/business/articles/2005/11/17/delphi_plans_20000_layoffs_uaw_calls_final_offer_an_insult/

Delphi Corp., the largest US auto-related company to file for bankruptcy, wants to eliminate more than 20,000 US jobs and isn't trying to reach an agreement on wages and benefits, union leaders said.

A proposal Delphi calls its final offer would trim its union workforce in the United States to about 10,000, from 33,650 now, United Auto Workers president Ron Gettelfinger said yesterday in Detroit. He said the offer ''is an insult and we will not ask the locals for a vote." The company said it narrowed the proposed wage cut and called its offer ''competitive."

Delphi, the largest US auto parts maker, filed for court protection Oct. 8 for its US operations after chief executive Steve Miller failed to win concessions from unions and financial aid from former parent General Motors. Miller has said he will ask the bankruptcy court to let Delphi impose terms if unions don't agree to pay and benefit reductions before Dec. 16.

''Miller, by taking such a visible and hard line, may have underestimated the UAW," said labor professor Harley Shaiken at the University of California at Berkeley. ''The union would like to see a settlement, but not at the cost of 60 years of gains."

...more...

[ozymandius]

37. Delphi demands big hourly job cut: report

NEW YORK (Reuters) - Labor leaders said bankrupt auto parts maker Delphi Corp. (Other OTC:DPHIQ - news) demanded 24,000 hourly job cuts over three years, a plan which union leaders refuse to even submit to the company's workers for a vote, the Detroit Free Press reported on Thursday.

The newspaper said the job cuts -- which would eliminate about two-thirds of Delphi's union workers -- would be coupled with steep wage cuts under the company's plan, which greatly increases the chances of a strike by the United Auto Workers and other unions.

Citing representatives of several unions, the Free Press said the job and wage cuts are so deep that union leaders refuse to submit them to a vote, which opens the door for the bankruptcy court to cancel Delphi's union contracts.

But six unions representing 34,000 Delphi workers are working together to fight Delphi's proposed job cuts in court, the paper said.

more

[UpInArms]

13. Layoffs planned at GM stamping plant on Near-Westside

http://www.indystar.com/apps/pbcs.dll/article?AID=/20051117/BUSINESS/511170395/1003/BUSINESS

INDIANAPOLIS -- General Motors' Indianapolis stamping plant will lay off an undisclosed number of workers early next year as it lowers production volume, GM spokesman Stefan Weinmann confirmed Wednesday.
Officials at the 1,990-employee Near-Westside plant told workers Wednesday about the volume-related layoffs. The number of workers to be idled will be figured out in the coming weeks, Weinmann said.

The plant makes hoods, fenders and other metal body parts for delivery to most GM vehicle assembly lines in North America. GM has sold 3.75 million cars and trucks this year through October, down 3.5 percent from the same period last year.

...more...

[UpInArms]

42. GM's slump drops market cap below Ford's

http://www.marketwatch.com/news/story.asp?guid=%7B3D7EAB71%2D35BC%2D4313%2D8A1F%2DBD7839892B42%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- General Motors shares weakened further on Thursday, whittling down the market capitalization of the world's biggest carmaker to less than $12 billion.

<snip>

An alliance of Delphi's union workers, including the UAW, is girding for a battle against the company's aggressive cost cutting plans. On Wednesday, they said the company's latest contract proposal is "not a framework for an agreement but a road map for confrontation."

...more...

[UpInArms]

14. Holidays can bring job layoffs

http://www.nwherald.com/BusinessSection/134672819442942.php

Midway through the fourth quarter, we are deep into a perilous time for U.S. workers: job-cutting season.

For seven of the past nine years, American companies have announced more layoffs in the last three quarters of the year than during other periods, according to the federal Bureau of Labor Statistics. Almost a third of the workers cut also are released during this period.

Why? It is the season of charity, office parties and general goodwill, right?

How quaint.

"That has changed since it's no longer a stigma for employees to be laid off, or for companies to make cutbacks," said Annie Stevens, a managing partner for ClearRock, an executive and career-development enterprise. "For those organizations that need to, trimming their payrolls before the beginning of a new year to enable them to get a fresh start has become more commonplace."

...more...

[AnneD]

43. Morning Marketeers,

:donut: I feel for those workers, how rough can it be. Laid off at Christmas, dead of winter. People just don't hire at that time. So sad. Wonder how much of a bonus the CEO's will get for trimming costs.

Looks like the RE bubble has a leak. I am really concerned with these predatory mortgage lenders. Just as the market drops, the rates will go up and the home values go down and now these new home owners will be upside down in the loan with higher payments due. It is going to be so bad. Hope all on this board are squared away on this...
Happy Hunting and watch out for the bears....

[TheGunslinger]

15. The 'toons have been GREAT this week.

Keep it up!

[UpInArms]

16. Five Tribune Newspapers to Seek Job Cuts

http://abcnews.go.com/Business/print?id=1321181

LOS ANGELES - Five newspapers owned by Tribune Co., including the company's two flagship papers in Chicago and Los Angeles, said Wednesday they will cut jobs amid declining circulation and revenue.

The cuts come one week after another Tribune paper, The (Baltimore) Sun, and Knight Ridder Inc.'s San Jose Mercury News both announced similar cost-cutting moves.

The Los Angeles Times said Wednesday it is eliminating about 85 newsroom positions, or approximately 8 percent of its editorial staff.

<snip>

In Chicago, the total number of Tribune jobs cut will "likely" be fewer than 100 and will be distributed across all departments, publisher David Hiller said in a memo to employees.

<snip>

Last week, The Sun said it would cut 75 jobs, or 5 percent of its work force, with 12 to 15 expected to come from the newsroom. In September, Newsday, the Tribune Co.'s dominant daily newspaper on Long Island, said it would reduce its coverage of New York City and cut 45 positions from its newsroom staff.

...more...

[UpInArms]

17. Wella job cuts ready to begin

http://www.timesdispatch.com/servlet/Satellite?pagename=RTD%2FMGArticle%2FRTD_BasicArticle&c=MGArticle&cid=1128768199033&path=!business&s=1045855934855

Wella Corp. is preparing to cut jobs at its Henrico County plant as the company moves toward closing the operation in 2006.

The hair-products company announced in July 2004 that it would close its plant near Richmond International Airport. Last week, it notified county officials that "permanent employee separations" will start at the plant tomorrow, with other cuts from December to June.

In a letter to the county Board of Supervisors, the company said all 223 production workers and staff will be affected. However, the plant's human-resources director said yesterday that only one employee is leaving tomorrow and that most cuts would come between January and June.

Wella's Germany-based parent firm, Wella AG, decided to close the plant as a result of the company being acquired by Procter & Gamble for $17 billion in 2003. Cincinnati-based P&G makes Crest toothpaste, Pampers diapers and other consumer products.

...more...

[UpInArms]

19. Stein Mart swings to quarterly profit; receives SEC inquiry

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38673.3230956134-851054707&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Stein Mart Inc. (SMRT) on Thursday reported third-quarter net earnings of $1.4 million, or 3 cents a share. Last year, it lost $2 million, or 5 cents a share. Revenue was $336,537 vs. $330,432 a year ago. The retailer said the Securities and Exchange Commission office in Miami has requested documents and other information related primarily to its accounting policies and procedures for vendor allowances and inventory valuation since February 1, 2003. Stein Mart said it's providing the agency with the information. For the fourth quarter, it forecast earnings of 47 cents to 50 cents a share and same-store sales to be flat to slightly down. Stein Mart also said it sees fiscal 2005 earnings of $1.14 to $1.17 a share.

[UpInArms]

26. Printing Press Report:Fed adds temporary U.S. reserves via 14-day repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T132828Z_01_N17301453_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Nov 17 (Reuters) - The Federal Reserve said on Thursday that it added temporary reserves to the U.S. banking system through 14-day system repurchase agreements.

The benchmark federal funds rate last traded at 4.00 percent, the Fed's target for the overnight lending rate.

Further details of the operations are available at: http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

27. Treasuries little changed after housing, jobs data

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T133904Z_01_N17671657_RTRIDST_0_MARKETS-BONDS-DATA-URGENT.XML

NEW YORK, Nov 17 (Reuters) - U.S. government debt was little changed early Thursday after a larger-than-expected decline in U.S. housing starts in October offset a surprisingly big drop in weekly jobless claims.

Benchmark 10-year Treasury notes were 3/32 lower at 100-3/32 to yield 4.49 percent, up 1 basis point from Wednesday's close.

[UpInArms]

32. U.S. Treasuries slip amid mixed economic data

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T142549Z_01_N17288836_RTRIDST_0_MARKETS-BONDS.XML

CHICAGO, Nov 17 (Reuters) - U.S. Treasury debt prices slipped on Thursday after mixed data on housing and jobs and following a strong rally on Wednesday.

A tendency to rally on weaker-than-expected October U.S. housing starts and building permits was balanced by a surprising drop in weekly jobless claims to the lowest since April, rekindling worries about potential wage inflation.

Traders said prices were easing mainly on profit-taking after Wednesday's rally when the yield on the benchmark 10-year note, which moves inversely to prices, fell below 4.50 percent for the first time since late October.

The 10-year note fell 9/32 in price for a yield of 4.52 percent, up from 4.47 percent on Wednesday. Technicians see initial resistance to a move below 4.45 percent.

...more...

[UpInArms]

47. US Treasuries stagnant, waiting for Philly Fed

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-11-17T160108Z_01_N17346047_RTRIDST_0_MARKETS-BONDS-UPDATE-1.XML

CHICAGO, Nov 17 (Reuters) - U.S. Treasury debt prices clawed back from early losses to be barely changed on Thursday as investors awaited a regional factory report from the Philadelphia Federal Reserve.

Dealers said bonds met early profit-taking from hedge funds and technically-oriented traders once 10-year note yields were unable to hold below 4.50 percent -- a level reached on Wednesday for the first time since late October.

"Trading is uninspiring. It's all about the flows right now, more so than the data. I would expect the market to trade a little worse, just because we've been on such a tear this week," said Bill Hornbarger, chief fixed-income strategist at A. G. Edwards & Sons in St. Louis.

By mid-morning the 10-year Treasury note <US10YT=RR> was up 1/32 in price for a yield of 4.47 percent, steady with late Wednesday but down from 4.51 percent just after the morning's economic reports.

<snip>

Brewing weakness in housing has been seen as a leading indicator of slower economic growth, which ultimately could end the Federal Reserve's program of interest rate hikes.

...more...

[UpInArms]

65. Treasuries add gains after Nov Philly Fed index

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T171806Z_01_N17184118_RTRIDST_0_MARKETS-BONDS-PHILLYFED-URGENT.XML

NEW YORK, Nov 17 (Reuters) - U.S. Treasury debt prices midday Thursday added to earlier gains after a bigger-than-expected decline in a regional U.S. factory index spurred worries of slower economic growth.

The Philadelphia Federal Reserve's business index that gauges manufacturing activity in the U.S. Mid-Atlantic region fell to 11.5 in November from 17.3 in October.

Analysts polled by Reuters on average had predicted the index slipping to 15.30.

...more...

[UpInArms]

58. Treasurys claw back; GM bankruptcy risk cited

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38673.4956376505-851089267&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- Treasury notes turned modestly positive in part as investors sought lower-risk government bond investments amid mounting analyst scrutiny of bankruptcy risk at General Motors. Mixed economic data had left government notes lower in price and higher in yield. Relatively sanguine inflation comments from St. Louis Fed President William Poole helped bonds claw back as well. The 10-year note was last 2/32 higher at 100 9/32, yielding a little changed 4.46%.

[UpInArms]

49. Printing Press Report: U.S. Treasury to sell $34 bln bills on Tuesday

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T160716Z_01_WBT004289_RTRIDST_0_ECONOMY-BILLS-URGENT.XML

WASHINGTON, Nov 17 (Reuters) - The U.S. Treasury Department said on Thursday it will sell $18 billion of three-month bills and $16 billion of six-month bills on Monday, Nov. 21.

The bills will be issued on Friday, Nov. 25.

Proceeds from the sale will be used to refund an estimated $32.91 billion of publicly held 13- and 26-week bills maturing Nov. 25 and to raise about $1.09 billion of new cash.

The three-month bills mature on Feb. 23, 2006, while the six-month bills mature on May 25.

Treasury said $5.60 billion of the three-month bills can be excluded when bidders calculate their net long positions. The net long reporting threshold for the three-month bills is $6.30 billion and for the six-month bills it is $5.60 billion.

...more...

[UpInArms]

61. US Treasury to announce bill offering on Wednesday

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T165841Z_01_N17687329_RTRIDST_0_ECONOMY-TREASURY-HOLIDAY.XML

WASHINGTON, Nov 17 (Reuters) - The U.S. Treasury Department said on Thursday it will announce offerings of 3-month and 6-month bills at 11 a.m. EST (1600 GMT) on Wednesday, Nov. 23 because of the Thanksgiving holiday on Thursday.

Treasury also said the noncompetitive and competitive closing times for the 2-year note to be auctioned Nov. 23 would be 11 a.m. (1600 GMT) and 11:30 a.m. (1630 GMT) respectively. The Treasury said it will make a complete offering announcement for the 2-year note on Monday, Nov. 21.

[UpInArms]

69. Fed's Moskow says education a key to productivity

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T174642Z_01_N17510914_RTRIDST_0_ECONOMY-FED-MOSKOW.XML

CLEVELAND, Nov 17 (Reuters) - Education is an important issue for the Federal Reserve because of the link between workforce quality and productivity growth, Chicago Fed President Michael Moskow said on Thursday.

Moskow, a voting member of the Federal Open Market Committee this year, did not comment on monetary policy or the economic outlook in remarks prepared for a conference on education sponsored by the Cleveland Fed.

Of the 2.7-percent average annual growth in U.S. labor productivity from 1965 to 2000, almost a quarter percentage point was attributable to labor quality, Moskow said

This had fallen to 0.18 percentage point by the end of the 1990s from 0.40 percentage point in the late 1980s and early 1990s as improvements in worker skills flattened out, Moskow said. "If we consider recent education trends, I'd say we have our work cut out for us" to turn the trend around, he said.

...more...

Off to the re-education camps!

Learning how to say: "Would you like that supersized?"

[ozymandius]

30. pre-open blather

9:00AM: S&P futures vs fair value: +3.8. Nasdaq futures vs fair value: +9.0. Still shaping up to be a significantly higher open for the cash market, as futures indications trade comfortable above fair value. Even though Applied Materials' (AMAT) Q1 guidance last night was disappointing, this morning's reports are decent and Wall Street appears to be anticipating strong results from Hewlett-Packard (HPQ) and Walt Disney (DIS) after the close. The fact that 75% of the S&P 500 companies reporting quarterly results so far have either beaten or met analysts' expectations may also be supporting an improved underlying tone in pre-market trading.

8:33AM: S&P futures vs fair value: +4.0. Nasdaq futures vs fair value: +8.5. Futures trade holds relatively steady following housing data, still indicating a strong open for the indices. Oct. housing starts fell 5.6% to 2.014 mln units while building permits fell 6.7% to 2.07 mln units, both checking in below economists' forecasts and reflecting the risk that the Fed is going too far in terms of raising interest rates. Jobless claims fell 25K to 303K, much better than expected (consensus 322K). Bonds, which are consolidating two solid days of gains, have also barely budged, as the 10-yr note is off 3 ticks to yield 4.48%.

[Roland99]

31. I just simply don't get it. How can companies be reaping profits?

Are consumers just going massively into debt? Real wages have been falling. Heck, won't be long until multi-generational families in one home will be a staple here in the U.S.

[fasttense]

41. Roland99, you guessed it.

NEW YORK (CNN/Money) - The savings of U.S. consumers are
at the lowest rate since the Depression.

http://money.cnn.com/2005/08/02/news/economy/savings/?cnn=yes

But of course CNN/Money puts a positive spin on it. Consumers are cashing in on the value of their homes. Using their equity like an ATM. But that can only go on as long as interest rates are low and housing prices stays high.

Give it some time, the repercussions will follow. Remember the Stock Market was booming and America had an "official" unemployment rate of 3.3% immediately before the great depression hit.

Here is also an interesting fact: From the Civil War until the Depression, the Republican party was the dominant political party--it generally controlled the House of Representatives, the U.S. Senate, and the Presidency. http://ingrimayne.saintjoe.edu/econ/EconomicCatastrophe/GreatDepression.html

So which party was responsible for the great depression? Given a chance the repukes will lead us all back into a depression.

[Roland99]

52. Multi-generational family housing....here we come

No way people can keep paying for these mini-McMansions in the suburbs. The wages aren't there and the cost of living is sucking up so much of the first $50k of earnings or so.

I still fear a collapse much greater than the 2000 dot-com bubble burst. It's coming.

[UpInArms]

33. 9:41 EST bidness taking place

Dow 10,692.53 +17.77 (+0.17%)
Nasdaq 2,197.61 +9.68 (+0.44%)
S&P 500 1,235.12 +3.91 (+0.32%)
10-Yr Bond 4.508 +0.24 (+0.54%)

NYSE Volume 115,361,000
Nasdaq Volume 109,610,000

[ozymandius]

34. Bidness happens

Dow 10,686.36 +11.60 (+0.11%)
Nasdaq 2,197.82 +9.89 (+0.45%)
S&P 500 1,235.31 +4.10 (+0.33%)
10-Yr Bond 45.06 +0.22 (+0.49%)
NYSE Volume 191,936,000
Nasdaq Volume 173,425,000

9:40AM: Market opens on an upbeat note based on the simple fact that the underlying tone for stocks remains solid. After all, the fact that about two thirds of the S&P 500 has either surpassed or matched analysts' forecasts, suggesting a 14th consecutive quarter of double-digit (about 15%) year/year EPS growth, positions the market for a modest year-end rally. Meanwhile, despite the growing realization that housing is clearly slowing down in response to the rise in interest rates over the past 17 months, such indications reflect the risks that the Fed is going too far with its tightening.

[ozymandius]

35. going south already?

10:04
Dow 10,673.24 -1.52 (-0.01%)
Nasdaq 2,196.92 +8.99 (+0.41%)
S&P 500 1,234.01 +2.80 (+0.23%)
10-Yr Bond 45.02 +0.18 (+0.40%)
NYSE Volume 294,453,000
Nasdaq Volume 262,025,000

[ozymandius]

36. Dow back above the waterline

10:17
Dow 10,686.60 +11.84 (+0.11%)
Nasdaq 2,200.06 +12.13 (+0.55%)
S&P 500 1,235.53 +4.32 (+0.35%)
10-Yr Bond 44.90 +0.06 (+0.13%)

NYSE Volume 382,809,000
Nasdaq Volume 340,962,000

[ozymandius]

38. Stocks Barely Mixed As Altria Falls

NEW YORK - Stocks were barely mixed Thursday on news that output at the nation's factories rose at the fastest pace in 17 months in October, a solid rebound from the devastating Gulf Coast hurricanes. A downgrade of tobacco and food conglomerate Altria Group Inc. helped turned the Dow Jones industrial average lower.

Wall Street was calmed, for the most part, by industrial output data, which includes output from mines and utilities. Industrial output was up a healthy 0.9 percent last month as refineries and oil and natural gas platforms began production again after widespread shutdowns caused by hurricanes Katrina and Rita.

In other economic news, closely watched housing data was less upbeat. Home construction in October plunged by the largest amount in seven months and building permits posted their biggest drop in six years, providing dramatic evidence that rising mortgage rates are beginning to dampen the housing boom.

more

[ozymandius]

39. 10:42 numbers and bye

I will be away from a computer for the rest of the day. Have fun at the Casino folks!

ozy :hi:

Dow 10,678.60 +3.84 (+0.04%)
Nasdaq 2,199.69 +11.76 (+0.54%)
S&P 500 1,235.22 +4.01 (+0.33%)
10-Yr Bond 44.84 0.00 (0.00%)
NYSE Volume 534,518,000
Nasdaq Volume 471,382,000

10:30AM: Stocks continue to hold their own and sport modest gains for the day. After briefly inching into negative territory, the Dow is back on solid footing following its first back-to-back loss in three weeks. While gains of more than 1.0% from blue chips like INTC, HPQ, and PG have provided some early influence, a rebound in shares of General Motors (GM 21.64 +0.35) from their lowest intraday level since 1987 has also lent some support. NYSE Adv/Dec 1937/923, Nasdaq Adv/Dec 1649/930

10:00AM: Equities are still on the offensive as the bulk of sector leadership remains positive. Despite a 46% decline in Q4 profits and disappointing Q1 EPS guidance from Applied Materials (AMAT 17.19 -0.58) weighing on chip stocks, a 1.1% surge in hardware, ahead of Hewlett-Packard's (HPQ 28.68 +0.41) Q4 report tonight, has helped Technology provide early leadership. Industrials have also shown relative strength, as an analyst upgrade on Union Pacific (UNP 73.30 +2.30) helps offset a downgrade on Deere & Co. (DE 62.86 -0.92). Consumer Staples, though, led by a 2.4% downgrade-induced decline in Altria (MO 72.12 -1.77), is the only economic sector trading lower. DJTA +1.1, DJUA +1.2, DOT +0.7, Nasdaq 100 +0.5, Russell 2000 +0.7, SOX -0.4, S&P Midcap 400 +0.7, XOI +0.8, NYSE Adv/Dec 1930/703, Nasdaq Adv/Dec 1594/783

[AnneD]

45. BBFN

:hi: See ya later gator.

[UpInArms]

44. Gold hits 18-yr. high, platinum pulls back from $1,000

http://www.marketwatch.com/news/story.asp?guid=%7B469B60AC%2DB5E8%2D46DC%2DB038%2DEB60555EC157%7D&siteid=mktw

NEW YORK (MarketWatch) -- Gold futures ran up to an 18-year high Thursday, extending the double-digit gains seen in the previous session, while copper futures continued their march to all-time highs.

Gold for December delivery traded as high as $486.90 an ounce on the New York Mercantile Exchange and was last up $6.70 at $485.80.

The precious metal had surged $10.10 on Wednesday.

"Gold's move to $480 makes further near-term strength likely," said Morgan Stanley technical analyst Mark Newton, who sees a possible retest of the December 1987 highs near $500, then a move up to the $515 to $525 range.

<snip>

Meanwhile, January platinum reached a contract high of $1,000 in intraday trading, reaching the objective of many analysts, but has since pulled back. The front-month contract was last down $6.20 at $983.50. See related Commodities Corner.

The platinum price record for any futures contract month is $1,189.50 -- set on March 5, 1980, according to Nymex. The record for a front-month contract is $1,085, set on the same date, the exchange said.

...more...

[UpInArms]

74. Dec Gold closes @ $486.90

2:07pm 11/17/05 DEC. GOLD CLOSES UP $7.80 AT $486.90 ON NYMEX

2:07pm 11/17/05 DEC. GOLD CLOSES AT 18-YR. HIGH

[UpInArms]

46. Poole the Tool proves he is at least one brick shy of a load

11:00am 11/17/05 POOLE: FED DOING BEST TO KEEP CORE INFLATION LOW

11:00am 11/17/05 POOLE: FED WAS WISE NOT TO OVERREACT TO HIGHER ENERGY PRICES

11:00am 11/17/05 POOLE: SOME UNDERLYING INFLATION TRENDS RAISE CONCERN

11:00am 11/17/05 POOLE: HIGH ENERGY PRICES WON'T IMPACT CORE INFLATION

11:00am 11/17/05 POOLE SAYS INFLATION EXPECTATIONS ARE 'WELL-ANCHORED'

11:00am 11/17/05 FED'S POOLE SEES CORE INFLATION REMAINING 'FAIRLY STABLE'

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38673.4584578819-851082017&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Core inflation should remain fairly stable despite the dramatic rise in energy costs over the last three years, said William Poole, the president of the St. Louis Federal Reserve Bank. "To date, it appears little of the energy price increase has bled over into core inflation. Core PCE inflation has been fairly stable for the past several years, and I anticipate it will remain so," Poole said in a speech prepared for delivery at Kentucky State University.

I guess 400% inflation since 1974 is just right in this Gold-i-locks world! :crazy:

[UpInArms]

48. 11:08 EST numbers and blather

Dow 10,675.08 +0.32 (+0.00%)
Nasdaq 2,198.26 +10.33 (+0.47%)
S&P 500 1,234.01 +2.80 (+0.23%)
10-Yr Bond 4.476 -0.08 (-0.18%)

NYSE Volume 678,715,000
Nasdaq Volume 595,081,000

11:00AM: Stocks are off their best levels but buying remains widespread across most areas. Bonds, however, continue to consolidate following two solid days of gains. Providing an impetus for early profit-taking was the strong rebound in industrial production, which rose 0.9% - the largest rise in 16 months - and has raised concerns throughout the bond market that the Fed may hike rates three more times. While the 10-yr is now off just 2 ticks to yield 4.47%, the benchmark note was off as much as 10 ticks yielding 4.51% just before the market opened. NYSE Adv/Dec 2007/960, Nasdaq Adv/Dec 1720/955

[jdog]

50. Can anybody tell me

where one can find information on all those people who have given up looking for work and are no longer counted in the unemployment stats???

[UpInArms]

51. you might try this

http://data.bls.gov/cgi-bin/surveymost

or you can create your own statistical analysis here:

http://data.bls.gov/cgi-bin/surveymost?lf

[jdog]

53. Thanks UIA. n/t

[UpInArms]

57. Lehman Bros:" tougher to find stockbrokers with access to wealthy clients"

LOL!

http://www.marketwatch.com/news/story.asp?guid=%7B98AF4BD7%2DC20C%2D4C3D%2DB068%2DCCA32E77560B%7D

NEW YORK (MarketWatch) -- Lehman Brothers Holdings Inc. (LEH) Chief Executive Richard Fuld said his former goal of building a retail brokerage sales force of 1,000 brokers is too ambitious, given the firm's high standards for sales productivity.

More than half of Lehman's revenue comes from trading bonds, mortgage securities and other fixed-income investments for mutual funds and other institutional investors. But Fuld has been trying to diversify into advisory and capital-raising services for corporations, and, more recently, into managing money for wealthy individuals.

Lehman ended the third quarter with 472 brokers, who it calls investment representatives and who bring in an average of $2 million annually in fees and commissions - up from 419 producing $1.6 million annually three years ago. Fuld said it's proving tougher to find stockbrokers with access to wealthy clients than he had anticipated.

"Our goal was 1,000 (brokers), but I don't think we are going to get that,' he told investors Wednesday at a conference sponsored by Merrill Lynch & Co. (MER).

...more...

Well, I guess there may not be that many "wealthy clients" available :eyes:

[UpInArms]

59. Despite US airline woes, job applicants abound (7500 show up for 2000 jobs

http://www.marketwatch.com/news/story.asp?guid=%7BDD051DE8%2D4308%2D4B53%2D9F97%2D4E068F5CB22A%7D

CHICAGO (MarketWatch) -- In one day, more than 7,500 job applicants responded to United Airlines' online advertisement seeking to hire 2,000 new flight attendants.

Airline executives said the response this week was nothing short of amazing - they got seven times the number of applications they had expected to receive.

The airline is still sifting through the applications and can't say whether they came from the substantial pool of out-of-work U.S. flight attendants or from people new to the industry.

It's likely a mixture of both, said Sara Nelson DelaCruz, a spokeswoman for the Association of Flight Attendants, the union at United, a unit of UAL Corp. (UALAQ). Despite troubles in the U.S. airline industry, many people love the work.

Struggling financially since 2001, major U.S. airlines have worked to bring down the cost of labor, their single biggest expense. In four years, the industry has lost 142,000 jobs, or 32% of its workforce, according to the U.S. Department of Transportation.

...more...

[UpInArms]

63. 12:25 EST and all is good!

Dow 10,686.13 +11.37 (+0.11%)
Nasdaq 2,201.89 +13.96 (+0.64%)
S&P 500 1,236.09 +4.88 (+0.40%)
10-Yr Bond 4.461 -0.23 (-0.51%)

NYSE Volume 1,036,006,000
Nasdaq Volume 856,702,000

12:00PM: Major indices post modest gains midday as a good underlying tone to the market, evidenced in bullish market internals, helps investors digest mixed economic and earnings data. Initial claims for the week in which the Nov. employment survey was compiled, fell 25K to 303K - the lowest level in seven months and well below the 322K consensus, suggesting job conditions remain robust and that a sizable jump in payrolls is likely. A strong rebound in industrial production has also underpinned a floor of support for stocks and helped market participants shrug off signs of a slowdown in housing, which suggests the Fed's measured pace of tightening has perhaps run its course. Oct. housing starts fell 5.6% to 2.014 mln units while building permits fell 6.7% to 2.07 mln units, both below economists' forecasts. With regard to industry leadership, nine of ten economic sectors trade in positive territory. Technology has provided the biggest boost, as anticipation of strong Q4 report and upbeat Q1 guidance from Hewlett-Packard (HPQ 28.74 +0.47) tonight has helped offset a 46% decline in Q4 profits and questionable Q1 EPS guidance from Applied Materials (AMAT 17.15 -0.62). The Industrials sector has also shown relative strength, as an analyst upgrade on Union Pacific (UNP 73.93 +2.93) counters a downgrade on Deere & Co. (DE 62.75 -1.03). An turnaround in the Treasury market, as the 10-yr note is now up 2 ticks to yield 4.46%, has lent support to the rate-sensitive Financial and Utilities sectors. A rebound in Energy, even in the face of falling oil prices ($57.50/bbl -$0.38) also underscores a positive sentiment which should position the market for a traditional year-end rally. Consumer Staples, however, remains under pressure, led by a 2.4% downgrade-induced decline in Altria (MO 72.14 -1.75).DJTA +1.3, DJUA +1.2, DOT +0.8, Nasdaq 100 +0.5, Russell 2000 +1.0, SOX +0.1, S&P Midcap 400 +0.6, XOI +0.4, NYSE Adv/Dec 2139/963, Nasdaq Adv/Dec 1821/1002

[UpInArms]

66. Consumer group urges broader probe of Frist stock trading

http://www.marketwatch.com/news/print_story.asp?print=1&guid={8C041DFA-B198-4F3E-955C-6CBB5C9F609A}&siteid=mktw

WASHINGTON (MarketWatch) -- A consumer group on Wednesday called for the U.S. Senate and the Securities and Exchange Commission to investigate other stock trading by Senate Majority Leader Bill Frist, R-Tenn.

The Justice Department and the SEC already are probing Frist's sales of shares of HCA Inc. (HCA), his family's business, before its price fell in June. The sales were made through so-called blind trusts that Frist established for himself and his family members. Unlike true blind trusts, the "qualified blind trusts" for Senate members provide them with some information on holdings.

Public Citizen, a national nonprofit consumer group, said the investigation should be broadened since it appears Frist's family trusts made "questionable transactions" in other stocks, including American Retirement Corp. (ACR), Triad Hospital Inc. (TRI) and LifePoint Hospitals Inc. (LPNT).

<snip>

The consumer group said the SEC and the Senate Select Committee on Ethics also should look into apparent "inconsistencies" between assets that Frist and his trustees reported being held in the trusts, and into potentially improper communication between the trustees and Fr

<snip>

Public Citizen questioned smaller trades by the Frist family trusts, including sales of shares in Plano, Texas-based Triad Hospitals, an HCA spin-off, in the spring of 2002, six weeks before the stock peaked and began a nearly yearlong slide. The consumer group said the value of the stock wasn't clearly shown in disclosure documents, but appears to be about $12,000. The same Frist family trust sold shares of another HCA spin-off, LifePoint Hospitals, of Brentwood, Tenn., in mid-2001, and again in 2002, before the stock price plummeted, according to Public Citizen. It said the value of the trades appears to be relatively small.

...more...

[UpInArms]

67. US 30-year mortgage rates highest since Sept. 2003

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T173244Z_01_N17442794_RTRIDST_0_ECONOMY-MORTGAGES.XML

WASHINGTON, Nov 17 (Reuters) - Average interest rates on 30-year U.S. mortgages rose for a 10th straight week and remained at their highest since September 2003, according to data from mortgage finance company Freddie Mac on Thursday.

Fixed rate 30-year mortgages averaged 6.37 percent in the week to Nov. 17 -- the highest since an average of 6.44 percent in the Sept. 5, 2003, week -- from 6.36 percent a week ago.

Fifteen-year mortgages averaged 5.90 percent in the latest week compared with 5.89 percent last week, their loftiest since the week to July 19, 2002, when they averaged 5.93 percent.

Freddie Mac said one-year adjustable-rate mortgages averaged 5.20 percent, up from last week's 5.12 percent.

A year ago, 30-year mortgage rates averaged 5.74 percent, 15-year mortgages 5.15 percent and the ARM 4.17 percent.

...more...

[UpInArms]

70. US baby boomers knocking on reverse mortgage door

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T175504Z_01_N17680808_RTRIDST_0_BIZFEATURE-HOUSING-MORTGAGES.XML

NEW YORK, Nov 17 (Reuters) - Robert Simmons, a 67-year-old retired personal chef, wanted to pay off debt and travel to China where he sponsors the tuition of several children.

He recently took a reverse mortgage on his home of nearly 20 years in tony Southampton, New York, using the proceeds to pay down his remaining $80,000 mortgage, close a credit line for house repairs and buy a new car outright.

"I wasn't struggling to pay bills, but I needed just the extra boost to give me a good cushion so I could do nice traveling and have an enjoyable time in my declining years. Before I go out completely, I want to see something," he said.

Simmons is among a burgeoning pool of people aged 62 or older taking out reverse mortgages, which enable them to tap into home equity for extra cash.

The typical borrower is no longer the elderly widow who is house-rich and cash-poor, determined to stay in her home and make ends meet. As reverse mortgages grow more popular, borrowers are younger and are often couples using the money to improve lifestyles during longer retirements.

...more...

Whee! New and easy lessons on eating one's house! :woohoo:

[AnneD]

79. WHY

would ANYONE want to take on debt in their retirement. A surefire wat to be living our of a cardboard box in a few years. ECK!!! The borrower is slave to the lender.

[wordpix]

81. what happens when this 67 y.o. needs a cushion for health care in later

years? It's not too far off for him...

[UpInArms]

71. SnowJob blows green bile at average citizens

Snow urges extension of US cap gains, div. tax cut

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-17T180210Z_01_N17381151_RTRIDST_0_ECONOMY-SNOW-TAXES.XML

WASHINGTON, Nov 17 (Reuters) - U.S. Treasury Secretary John Snow said on Thursday the dividend and capital gains tax cuts put in place under U.S. President George W. Bush had fostered stronger economic growth and should be extended.

"I strongly urge Congress to extend these reforms and keep this economy the most dynamic in the world," Snow said in excerpts of remarks prepared for delivery to a conference sponsored by the Tax Foundation.

[UpInArms]

75. 2:22 EST update - fairies push to the "magic" 10,700!

Dow 10,701.00 +26.24 (+0.25%)
Nasdaq 2,207.14 +19.21 (+0.88%)
S&P 500 1,238.98 +7.77 (+0.63%)
10-Yr Bond 4.447 -0.37 (-0.83%)

NYSE Volume 1,491,277,000
Nasdaq Volume 1,231,258,000

edited to add the 2:22 numbers (with that special 10,700 crossing)

2:17 EST

Dow 10,694.68 +19.92 (+0.19%)
Nasdaq 2,206.84 +18.91 (+0.86%)
S&P 500 1,238.30 +7.09 (+0.58%)
10-Yr Bond 4.439 -0.45 (-1.00%)

NYSE Volume 1,462,581,000
Nasdaq Volume 1,204,553,000

2:00PM: Holding steady in positive territory as stocks continue to trade near intraday highs. Nonetheless, the fact that upside momentum on the broader market has been paced by the three least influential S&P sectors demonstrates why the broader market has not posted an even larger gain. BellSouth (BLS 26.84 +0.33) launching the fastest Internet-access service available among phone companies and an unprecedented fourth straight quarter industry-low customer churn rate at Verizon (VZ 31.42 +0.32) have helped Telecom Services turn in the day's best performance. Utilities is also up more than 1.0% to enjoy a second-place ranking while Materials, led again by a surge in gold prices to 18-yr highs, ranks as the afternoon's third best performer. NYSE Adv/Dec 2238/962, Nasdaq Adv/Dec 1951/984

1:30PM: More of the same for the major averages as buyers remain in control of the action. Technology continues to be the driver, which bodes well for Briefing.com's Overweight rating on the sector. Rebounds in transportation (i.e. CHRW, EXPD), retail (i.e. SBUX, BBBY, ROST) and strength in select drug names (i.e. BIIB, TEVA) have also helped the primarily tech-heavy Nasdaq outpace its blue chip counterparts to the upside.NYSE Adv/Dec 2184/992, Nasdaq Adv/Dec 1886/1028

[AnneD]

80. I am so

not impressed.

[Roland99]

84. Closing numbers

DJIA 10,720.20 +45.40
Nasdaq 2,220.46 +32.53
S&P 500 1,242.80 +11.59
Russell 2000 667.14 +12.50
CBOE Volatility 11.25 -1.01
30 Yr Bond 4.65 -0.03
10 Yr Bond 4.46 -0.03

Oh Happy Days are here again!!

[UpInArms]

85. closing blather

After languishing throughout the week, the market finally reclaimed some of the upside momentum that helped lift the major indices an average of 4.9% over the last three weeks, lending credence to Briefing.com's belief that a traditional year-end rally will close the S&P 500 up 5% for the year. The market opened on a positive note amid a good underlying tone for stocks, supported in part by 75% of the S&P 500 either surpassing or matching analysts' forecasts to register a 14th straight quarter of double-digit profit growth, but got an extra boost late in the day as oil prices plunged. With crude prices ($56.40/bbl -$1.48) finishing (-2.6%) near their lowest levels since late June, early buying interest in equities strengthened as a broad-based rally closed all ten economic sectors to the upside. Technology provided a huge lift, as an upbeat outlook from Network Appliance (NTAP 29.60 +1.35) and anticipation of a strong Q4 report and ensuing guidance from Hewlett-Packard (HPQ 28.83 +0.56) after the bell helped offset a 46% profit decline in Q4 and questionable Q1 EPS guidance from Applied Materials (AMAT 17.34 -0.43). Despite evidence that the housing market is clearly slowing down in response to the rise in interest rates over the past 17 months, a 4.6% surge in the homebuilding index provided a source of support for Consumer Discretionary. Oct. housing starts fell 5.6% to 2.014 mln units while building permits fell 6.7% to 2.07 mln units, both checking in below economists' forecasts but simultaneously reminding policy officials that higher interest rates are taking hold and that the Fed's tightening efforts run the risk of going too far. A late-day spike in shares of General Motors (GM 22.61 +1.32), after an internal note by CEO Rick Wagoner downplayed bankruptcy concerns, also provided sector support. Financial was an influential leader to the upside, as banks and brokers benefited from a midday reversal in the Treasury market, which widened the spread between the 2-yr and 10-yr notes, following a larger than expected decline on the Philly Fed. The 10-yr, which was off as much as 10 ticks to yield 4.51% following a batch of mixed economic data early in the session, closed up 4 ticks to yield 4.45%. Before the bell, initial claims for the week in which the Nov. employment survey was compiled, fell 25K to 303K - the lowest level in seven months and well below the 322K consensus, suggesting job conditions remain robust and that a sizable jump in payrolls is likely. A strong rebound in Oct. industrial production, which rose 0.9% - the most since May 2004 - also improved underlying sentiment, providing some reassurance to stock investors that corporate profitability and job growth are sustainable but, in turn, raising early concerns amongst bond traders that such economic improvements may lead to at least three more Fed rate hikes. DJTA +2.0, DJUA +1.6, DOT +1.9, Nasdaq 100 +1.5, Russell 2000 +1.8, SOX +1.1, S&P Midcap 400 +1.4, XOI -0.1, NYSE Adv/Dec 2390/886, Nasdaq Adv/Dec 2138/876

See you all tomorrow :hi: