STOCK MARKET WATCH, Friday 27 January

[ozymandius]

Friday January 27, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1088 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1863 DAYS
WHERE'S OSAMA BIN-LADEN? 1563 DAYS
DAYS SINCE ENRON COLLAPSE = 1524
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
Other Arrests of Execs = 54


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




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

AT THE CLOSING BELL ON January 26, 2006

Dow... 10,809.47 +99.73 (+0.93%)
Nasdaq... 2,283.00 +22.35 (+0.99%)
S&P 500... 1,273.83 +9.15 (+0.72%)
30-Year Bond 4.70% +0.05 (+1.03%)
10-Yr Bond... 4.52% +0.04 (+0.98%)
Gold future... 559.90 -2.60 (-0.46%)






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

BUSINESS; NOT PERSONAL
Interest Rates Heading Higher

It’s business; not personal. I’m drafting this article on Wednesday night with CNBC’s “Hot Money” program on in the background. On deck is a report on the great success of Playboy bunnies in picking stocks. A couple of years ago, I’d have suggested that this was a sign of a stock market top. Yesterday, “Hot Money” did a report about how Wall Street firms cracking down on lavish entertainment such as entertaining high net worth clients at New York strip clubs. The video during the entire report was a split screen showing a strip club seen on the right hand side of the split. (Melissa Francis was on the left.) May be a couple of years ago, I would have jumped on this “report” as a sure sign of a stock market top. One year ago, I would have suggested that the Madd Money show, with Cramer screaming and stomping around the hellish looking studio, left no doubt that we are at or near a major stock market top. Not any more. I’ve learned that it is not productive burning any excess energy or time worrying about how the market was being spun or manipulated. It’s best to just laugh. To burn off excess energy and entertainment, I sent CNBC an email suggesting that it would improve their ratings if they conducted all of their reports with a similar split screen as Tuesday night’s strip club piece. And now after the close on Wednesday, Kirk Kerkorian is buying GM again and there are legions of followers bidding up GM stock. (It’s up in after hours trading!) Leave the outrageous anecdotal evidence of a stock market top alone. The only practical truth is in the charts and it’s business; not personal. For stocks to head higher, interest rates must stay stable or drop.

Technical Charts Suggest Interest Rates Heading Higher Still

If the stock market is to advance further, it is likely to need the stability if not the help of the bond market. Bonds have been in a trading range for what seems like forever. So it seems as if there are a lot of people who are not too worried about a drop in the bond market. This may be because it seems as if the bond market spends similar amounts of time heading down it spends heading up. The long-term monthly chart (1990 to the present) of the 10-year note yield is shown in the chart below below. In the years when interest rates were in a long term downtrend, the 14 month RSI routinely dipped below the 30% level. However since mid-2002 the monthly RSI has not fallen below 41. The 10-year note yield is now threatening to break above a 4 year old down trendline, shown in red. The more important down trendline which began in 1994 (shown in blue) has not yet been threatened.



-cut-

Gold Dancing With Stocks Daily

What’s driving this stock market rally? That is tough to say as I have as much to say about that as the bunnies on TV. But when something appears to be out of whack, it’s my job to talk about it. Since the New Year it appears that a new and different relationship has developed between stocks and gold. Over the long term, gold and stocks generally head in opposite directions. When stocks go up, gold goes down and vice versa. Over the shorter term, the relationship is less defined. One would expect that on a daily basis there would be very little relationship between the movement of stocks and the movement of gold. Through all of 2005, this was the case. There were days when gold was up and stocks were down, days when gold was up and stocks were up, days when gold was down and stocks were down, and days where gold was down and stocks were up. Yet since the New Year of 2006, gold has tracked stocks on practically a daily basis – when stocks went down, gold went down, and when stocks went up, gold went up.

-cut-

Today’s Market

The market rallied today as the Russell 2000 index surpassed its all-time high in a decisive manner. Updating the Elliott Wave discussion of a few weeks ago, below is a chart of the Russell 2000 showing all components of the proposed diagonal with its current “throw-over” pattern. If we are to get a dramatic reversal, it’s likely to be soon. I’m not trading on this proposed Elliott Wave pattern because, as the paradox goes, “the pattern is not reversed until it is reversed.”

more...

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

[fasttense]

15. Thanks ozy for posting this.

I like his intro "It’s business; not personal." How often have we heard this? As if this excuses any nefarious cutthroat and ruthless tactic by businessmen. Let's face it, business is very personal.

Then his comment about Kirk Kerkorian buying up GM again and legions of followers bidding up GM stock. Hmmm, didn't someone do this during the Wall Street crash of 1929? Everyone at first thought he was a hero, trying to stabilize the stocks. Turns out he was buying up stock so the banks could sell off without too much of a loss. It worked. Only problem is he went to jail for three years for it. Could Kerkorian being doing something very similar, on a smaller scale? So that GM executives can sell off without too much of a loss? Just thinking aloud.

[EuroObserver]

2. Tokyo opened strongly, +2.1% in 14 minutes

Japanese markets opened strongly on good earnings reports
The Nikkei 225 index climbed 188.92 yen, or 1.12 percent, to 16,079.94 points on the Tokyo Stock Exchange at 9:00 a.m. Friday. It added 240.02 points, or 1.53 percent, to finish trading Thursday at 15,891.02.
...
Friday's rise came in part on good earnings results. In particular, the Nikkei got a boost from Sony Corp. after the company hiked its fiscal year earnings forecast the prior day.

Sony now forecasts group net profit of 70 billion yen ($602 million) and operating profit of 100 billion yen ($860 million), up sharply from its previous estimates for net loss of 10 billion yen ($86 million) and operating loss of 20 billion yen ($172 million).

Sony shares early Friday were bid-only _ meaning there were so many more buy orders than sell orders that trades could not be completed _ at 5,380 yen ($46.25), versus Thursday's close of 5,080 yen (US$43.67). /more...

UBS said in a report on Thursday that the results were a positive surprise and upgraded the rating on the stock to "neutral 2" from "reduce 2" and lifting the price target to 5,000 yen from 3,300 yen.

"We were surprised by the sharp reduction in losses in the TV business and the rise in earnings from information/communications and components," it said. /more...

Advantest Corp., the world's largest maker of chip testing devices, jumped 5.4 percent to 13,440 yen after posting a 173 percent rise in profit for the latest quarter on Thursday and lifting its full-year earnings forecasts. /more...

Various brokers and Nintendo were also hot in early trading
Nikko Cordial Corp. rises 2.6 percent to 1,826 yen after it said on Thursday that its quarterly profit jumped four-fold thanks to a booming stock market.

E*Trade Securities Co. (8701.Q: Quote, Profile, Research) , Japan's largest online brokerage firm, gains 1.9 percent to 373,000 yen after reporting that its net profit for the October-December period more than tripled.

The results raised expectations for solid earnings from other brokers. Daiwa Securities Group Inc. (8601.T: Quote, Profile, Research) jumps 3.1 percent to 1,391 yen ahead of its earnings announcement later on Friday, and Nomura Holdings Inc. (8604.T: Quote, Profile, Research) , which reports on Monday, gains 3.4 percent to 2,270 yen. 0107 GMT **NINTENDO (7974.OS: Quote, Profile, Research) HITS NEAR 4-YEAR HIGH ON EARNINGS**

Nintendo Co. Ltd. gains 2.7 percent to 16,820 yen on the Osaka Securities Exchange after earlier hitting 17,000 yen, its highest level since July 2002. /more...

The Nikkei share average rose 2.1 percent in the first 14 mnutes of trading, while Sony was untraded, facing a glut of buy orders at 5,480 yen, up more than 7 percent from the previous session's close. The Nikkei was up 2.11 percent, or 335.98 points, at 16,227.00 as of 0014 GMT. The broader TOPIX was also up 2.11 percent at 1,677.96.


Sony shares surge after surprise profit jump
Thu Jan 26, 2006 07:35 PM ET
Sony Corp. (6758.T: Quote, Profile, Research) surged 14 percent (early) Friday after the company reported a 47 percent jump in quarterly profit a day earlier, beating expectations, and raised its full-year outlook to an operating profit from a loss. The electronics conglomerate lodged its highest ever quarterly sales and net profit, helped by a weaker yen, strong sales of a portable game console and investment gains. Strong performances by its affiliates, mainly mobile phone maker Sony Ericsson and music unit Sony BMG, also contributed to Sony's earnings.

The stock rose 12.8 percent to 5,730 yen as of 0032 GMT, while the electronics sector was up 3.5 percent.

[EuroObserver]

3. Japan still in mild deflation; Dec. CPI +0.1%, 2005 CPI -0.1%

Tanigaki says Japan still in mild deflation
TOKYO, Jan 27 (Reuters) - Japanese Finance Minister Sadakazu Tanigaki said on Friday the economy is still in mild deflation, and the government and the Bank of Japan will keep working together to defeat sustained falls in prices. "Although CPI turned positive, a judgment on deflation should be made by looking at various indicators, including the GDP deflator as well as CPI," Tanigaki told a news conference.

"Mild deflation remains in the economy," he said.

Tanigaki also said he saw some progress in CPI figures, but it is still necessary to watch to see whether CPI falls back into negative territory.

Japan's nationwide core consumer price index rose 0.1 percent in December from the same month a year earlier, marking the second straight month of gains, government data showed on Friday.

In calendar 2005, nationwide core CPI fell 0.1 percent, the sixth straight year of decline.

/more...

JGB prices sink on Treasury sell-off, Japan data
TOKYO, Jan 27 (Reuters) - Japanese government bond (JGB) prices sank on Friday after Treasuries prices fell in New York and Japanese consumer price data bolstered the market view that the central bank could soon end its easy-money policy.

Japanese core consumer prices rose 0.1 percent on a year-on-year basis in December, holding above zero for the second month in a row as analysts had expected. The widely anticipated figure added to the soured sentiment on JGBs after U.S. Treasuries fell for the third session running on data suggesting the Federal Reserve may have reason to continue raising interest rates beyond January.

"The market is focusing on data coming out of both Japan and the United States," said Tetsuya Miura, a bond strategist at Shinko Securities. "It looks like the selling could have more to do with the fall in Treasuries, as the (Japanese) CPI figures came as no surprise to the market."

A sustained year-on-year rise in consumer prices is one of the Bank of Japan's criteria for ending its quantitative easing policy, under which it pumps excess funds into the banking sector and keeps rates anchored near zero. Market expectations are growing for an end to that policy as early as April.

/more...

Key 10-year Japanese gov't bond yield up to 1-month high of 1.55%
(Kyodo) _ The yield on the benchmark 10-year Japanese government bond briefly hit a one-month high of 1.550 percent Friday on expectations the Bank of Japan may soon end its ultra-easy monetary policy.

In interdealer trading, the yield on the No. 275 1.4 percent issue added 0.035 percentage point from Thursday's close to end the day at 1.540 percent.

The price of the key March futures contract for 10-year bonds fell 0.29 point to 137.04 on the Tokyo Stock Exchange, with the yield up 0.025 percentage point to 1.675 percent.

/more...

[EuroObserver]

4. Nikkei 225 closed up 3.58%, Topix up 2.86%

Nikkei ends at new 5-year high, Sony surges
Fri Jan 27, 2006 02:39 AM ET
TOKYO, Jan 27 (Reuters) - The Nikkei share average rose 3.58 percent on Friday, posting its highest close in more than five years as Sony Corp.'s (6758.T: Quote, Profile, Research) surprisingly strong earnings a day earlier raised hopes for good results at other tech firms.

Bank shares extended gains following government data showing the nationwide core consumer price index rose, while brokerage firms advanced after Nikko Cordial Corp. (8603.T: Quote, Profile, Research) posted a four-fold rise in profits in the latest quarter.

"Earnings and optimism over an economic recovery both nicely supported the market," said Tomomi Yamashita, senior fund manager at Shinkin Asset Management Co. Ltd.

The Nikkei rose 569.66 points to 16,460.68, its highest close since September 2000 and its biggest one-day percentage gain since October 2002.

The close was also above the closing level of Jan. 16, the day before a sell-off sparked by an investigation into high-flying Internet firm Livedoor Co. (4753.T: Quote, Profile, Research) sent the benchmark as low as 15,059.52.

The Nikkei rose 4.87 percent on the week. The broader TOPIX rose 2.86 percent on Friday to 1,690.32.

Masaru Ueda, head of the investment strategy division at Marusan Securities Co. Ltd., said the market looked ready to aim higher. /more...

[EuroObserver]

5. European markets also open strongly

Swiss SMI up 0.63% at CHF 7798.13 09:42:31 CET
CAC 40 opens up 1% at 4,925.7 in Paris 08:07 GMT
Xetra Dax 30 opens up 1.3% at 5,622.3 in Frankfurt 08:06 GMT
FTSE 100 opens up 0.8% at 5,766.7 in London 08:05 GMT

Sharp climb seen for bourses
European bourses were seen climbing sharply at the open on Friday after the Nikkei in Tokyo soared 3.6 per cent and Wall Street ended solidly. Spread betters in London called the FTSE 100, CAC 40 in Paris, and Frankfurt’s Xetra Dax indices between 23 and 50 points higher, according to Reuters. /more...

Europe stocks hit 4-1/2-yr high; ThyssenKrupp up
Fri Jan 27, 2006 03:20 AM ET
LONDON, Jan 27 (Reuters) - European shares jumped 0.9 percent to their highest level since August 2001 at Friday's open, boosted by ThyssenKrupp (TKAG.DE: Quote, Profile, Research) and resource stocks as investors took heart from healthy rallies in Japan and on Wall Street.

By 0810 GMT, the pan-European FTSEurofirst index of 300 leading shares was up 0.9 percent at 1315.62 points, its highest in 4-1/2 years.

German steelmaker ThyssenKrupp rose 6.4 percent after a higher-than-expected first quarter result and saying it aims to post a pretax profit of 2 billion euros ($2.45 billion) in the mid-term. "It's a very good set of numbers, it's better than consensus with a good outlook," said a German trader. "All in all, it's really good."

Among resource stocks, BHP Billiton (BLT.L: Quote, Profile, Research) jumped 2.7 percent and Rio Tinto (RIO.L: Quote, Profile, Research) gained 2.3 percent after Shanghai copper futures hit record highs ahead of the Lunar New Year holiday, pushing London Metal Exchange copper up about $20 a tonne. /more...

London higher as P&O returns to first port of call
London’s equities markets continued to make progress in opening trade on Friday, after P&O confirmed its support for DP World’s increased bid, dropping backing for the rival offer from Singapore’s PSA. The FTSE 100 started the session 0.7 per cent higher at 5,762.0 and the mid-cap FTSE 250 was 0.8 per cent firmer at 9,157.2. Overnight in New York on a busy day for largely upbeat company news, the Dow Jones Industrial Average ended 0.9 per cent higher at 10,809.47, which took the index back above the level at which it began the year. The S&P 500 gained 0.7 per cent to 1,273.82 and the Nasdaq Composite jumped 1 per cent to 2,283.00. Back in London, and dealmaking returned to the spotlight as shipping company P&O changed tack once more, withdrawing its support from a 470p per share offer from PSA and backing DP World’s increased 520p counterbid. Investors had been expecting such a move, supporting P&O’s price past the 443p level of DP World’s first bid and beyond the 470p offered by PSA in reply. That offer was backed on Thursday by P&O’s board before DP raised the bar further. In opening trade, the market continued to provide upside to P&O’s shares, which advanced a further 5.2 per cent to 548.9p raising the prospect of further developments in the coming days.

[EuroObserver]

6. Steel results, consolidation speculation, market movers

Steel stocks soar on hopes of Mittal-Arcelor deal
LONDON, Jan 27 (Reuters) - European steel stocks <.SXPP> soared on Friday, with shares in both Corus (CS.L: Quote, Profile, Research) (CS.AS: Quote, Profile, Research) and ThyssenKrupp (TKAG.DE: Quote, Profile, Research) up 7 percent on market talk of a deal between Arcelor and Mittal Steel, traders said.

/more...

Steel consolidation speculation boosts bourses
Mittal Steel and Arcelor have been suspended pending an announcement at 1000 GMT. Reuters reported Mittal is set to announce a bid for rival Arcelor.

ThyssenKrupp rose 6.6 per cent to €21.65 after the German industrial conglomerate, which withdrew earlier this week as the white knight bidder for Canadian steelmaker Dofasco, said it aimed to earn pre-tax profits of €2bn in the mid-term. Thyssen said first quarter profits were expected to exceed €400m, ahead of the average €361m forecast in a Reuters’ analysts poll.

Novo Nordisk, the world’s biggest maker of insulin, posted a slightly above forecast 16 per cent rise in 2005 operating profit of DKr8.1bn above the average forecast of DKr8bn in a Reuters analysts poll. The Danish company said it expected expected 2006 EBIT to grow by slightly more than 10 per cent on at least 10 per cent higher sales.

Salzgitter, the German steelmaker, made an “exorbitantly high” profit in 2005, Wolfgang Leese, chief executive, said, according to the the Neue Ruhr/Neue Rhein Zeitung paper. Results due in mid-March will show sales surpassed €7bn for the first time last year, he said. The stock gained 4.5 per cent to €53.65.

Saint-Gobain added 1.5 per cent to €54.40 issued an upbeat outlook for 2006 and net profit up 6 per cent to €1.318bn for the full year, below Reuters consensus forecast of €1.35bn. The world’s biggest listed building materials group recently took over the fast-growing British plasterboard maker BPB.

GBL rose 4.8 per cent to €91.95, the Belgian holding company which has a 25.1 per cent stake in Bertelsmann, said it wanted to make a listing of the German media group possible by the end of May. Bertelsmann said it was prepared for an initial public offering.

Casino fell 7.4 per cent to €50.35 after the French retailer warned late on Thursday that operating income could fall 11 per cent in 2005. Second half profits would be lower than expected, the world’s second largest retailer said, due to price cuts in its domestic market.

[EuroObserver]

16. Mittal makes €18.6bn offer for steel rival Arcelor

http://mwprices.ft.com/custom/ft-com/story.asp?dateid=38744.2504976852-858612572&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}
Mittal Steel, the world’s largest steel producer, on Friday announced an offer for its nearest rival Arcelor in a deal that would create the world’s first 100m tonne plus steelmaker with around 10 per cent of the global market. The offer values Arcelor at €28.21, a 27 per cent premium to last night’s closing price, which was a record high for the Luxembourg-based company. The €18.6bn deal would create a dominating force in the global steel market, with production of well over 100m tonnes, dwarfing Japan’s Nippon Steel, currently the third largest producer with around 32m tonnes. The combined company would have $69bn in revenues and a market captitalisation of approximately $40bn. Arcelor shareholders will receive four Mittal shares and €35.25 in cash for every five Arcelor shares, equivalent to 0.8 Mittal shares plus €7.05 cash for each Arcelor share. Mittal added in its statement that it had agreed to sell Canadian steelmaker Dofasco to Germany’s Thyssenkrupp, which this week walked away from a battle with Arcelor to takeover the company. Thyssenkrupp will pay C$68 per share for Dofasco, the level of its last recommended bid.

[EuroObserver]

57. Peugeot says "concerned" over steel sector competition

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh81985_2006-01-27_12-21-23_l27273186_newsml
PARIS, Jan 27 (Reuters) - French cargroup PSA Peugeot Citroen (PEUP.PA: Quote, Profile, Research) said on Friday it was "concerned" about competition in the steel industry when asked to comment on a bid by Mittal (MT.N: Quote, Profile, Research) (ISPA.AS: Quote, Profile, Research) for its rival Arcelor (CELR.PA: Quote, Profile, Research) .

"We have no direct comment or opinion on this operation," said a spokesman for Europe's fifth-biggest carmaker by market capitalisation.

"But we are following developments in this important supply sector closely and are already concerned about competition in the industry," the spokesman said.

"We hope that competition will continue to play a role," he added.

Carmakers like PSA have been squeezed recently by a spike in raw material prices, including renegotiated steel contracts at higher prices, and tepid consumer demand in the main European market.

PSA has increased its "supply panel" to more steel groups including non-European companies.

[EuroObserver]

8. CRT TV picture tubes fade (LG.Philips)

LG.Philips Displays unit seeks credit protection
LONDON, Jan 27 (Reuters) - LG.Philips Displays, the world's biggest TV picture tube maker, said on Friday it had filed for creditor protection for its European holding due to large debts it can no longer honour. The venture, which is jointly owned by Philips (PHG.AS: Quote, Profile, Research) and LG Electronics (066570.KS: Quote, Profile, Research) , said it had also asked for creditor protection for its Dutch units and its German affiliate. "The holding has said it can no longer support loss-leading subsidiaries, because it cannot acquire long-term financing," it said in a statement issued in the Netherlands.
...
LG and Philips have a separate venture for flat panel displays.

LG.Philips Displays has production facilities in France and the Czech Republic and these will need to assess their financial position, as well as subsidiaries in Mexico, the United States and Slovakia, the firm said. Units in Poland, Brazil, China, Indonesia and South Korea will continue manufacturing, while units in the United Kingdom and two in the Netherlands should also be able to pull through, it added. Together they represent about 85 percent of production.

"Although demand for cathode ray tubes has fallen sharply in mature markets, the global demand for these products remains strong, especially in emerging markets," the firm said. LG.Philips Displays produces one in four picture tubes sold around the world.

/more...

[EuroObserver]

64. Europe markets closed up 1.1%(FTSE100) - 1.6%(CAC40) - 1.8%(DAX30)

Swiss SMI up 0.53% at CHF 7790.28 17:19:59 CET
CAC 40 closes up 1.6% at 4,956.60 in Paris 16:47 GMT
Xetra Dax 30 closes up 1.8% at 5,647.42 in Frankfurt 16:46 GMT
FTSE 100 closes up 1.1% at 5,786.8 in London, highest close since June 2001 16:50 GMT
FTSE 250 closes up 1.4% at 9,207.9 in London 16:44 GMT
FTSE Eurofirst 300 up 1.2% to 1,319.76 in closing exchanges in London 16:30 GMT

[EuroObserver]

80. Some apparently related and possibly relevant blurb:

FTSE hits new 4-1/2 yr high, stoked by bid fever
LONDON,, Jan 27 (Reuters) - Britain's FTSE 100 index closed at its highest level since June 2001 on Friday, with bid fever boosting an array of stocks like ports and ferries group P&O. Mergers and acquisitions activity contributed much to FTSE gains last year and has reignited the market this week with offers and takeover talk fuelling gains in stocks as varied as industrial gases group BOC, insurer Prudential and housebuilder Wimpey. "M&A in the UK is not just focused on a couple of sectors, it is across the board -- that tells you valuations are on the low side," said HSBC Securities UK equity strategist Robert Parkes.

The FTSE 100 share index <.FTSE> ended the session up 64.2 points, or 1.1 percent, at 5,786.8 points, its strongest finish in more than 4-1/2 years and capping a week of gains worth more than 100 points.

Many analysts see further gains for the index, with UK interest rates expected to fall later this year, U.S. rates apparently nearing their peak and stable corporate results bolstering investor appetite for equities. "We are starting to see confidence slowly returning as far as equities are concerned, and the market is re-rating," HSBC's Parkes added. "We think the risks are to the upside. It is difficult to see what could derail the market at the moment." /more detail...

Bourses close at fresh 4-and-a-half year highs
European stock markets ended the week with a flourish as news of a huge bid in the steel sector ignited share prices. Mittal, the world’s biggest steelmaker, launched a €18.6bn cash-and-share offer for rival Arcelor, spurring hopes of a wave of further consolidation in the sector. The FTSE Eurofirst 300 index climbed to a 4½-year high of 1,319.67, up 1.2 per cent on the day and 2.8 per cent over the week. The German Xetra Dax index did even better, closing up 1.8 per cent at 5,647.42, while the CAC 40 in Paris rose 1.6 per cent to 4,956.60.

ed: re-reading this: "It is difficult to see what could derail the market at the moment." I bang head against wall. Ah! but, "at the moment" he said. A good get-out clause, there... Hmmm.

[ozymandius]

7. Today's Reports

Jan 27 8:30 AM Chain Deflator-Adv. Q4
Briefing Forecast 2.5%
Market Expects 2.6%
Prior 3.3%

Jan 27 8:30 AM GDP-Adv. Q4
Briefing Forecast 3.0%
Market Expects 2.8%
Prior 4.1%

Jan 27 10:00 AM New Home Sales Dec
Briefing Forecast 1260K
Market Expects 1225K
Prior 1245K

[EuroObserver]

14. Dollar firm, euro, swiss franc steady, yen lower pending US GDP data

Dollar darts to 3-wk high vs yen as US GDP looms
LONDON, Jan 27 (Reuters) - The dollar briefly hit a three-week high against the yen and held steady against the euro on Friday, taking heart from upbeat U.S. economic data the previous session.

Orders for durable goods, closely watched for trends in capital spending, rose a robust 1.3 percent in December, beating forecasts and underscoring the strength of the U.S. economy.

"In the U.S. yesterday, we had good data," said Niels Christensen, senior currency strategist at Societe Generale in Paris. "After the sharp dollar sell-off earlier in the week, the market is tired and reluctant to put on more short dollar positions. People are also taking profits ahead of a very busy schedule next week," he added. The U.S. Federal Reserve meets on Tuesday and a closely watched U.S. job report is due next Friday.

Nearer-term, the market will look to U.S. fourth quarter economic growth data at 1330 GMT for more clues on the health of the world's largest economy.

The euro showed little reaction to upbeat data on the German economy. German consumer sentiment hit a nine-month high in February, topping analysts' forecasts as rising confidence in the government boosted optimism, the GfK group said. Sentiment was dampened after former EU commissioner Frits Bolkestein said there was a question over the long-term future of the euro because of the risk of heavy government borrowings in about 10 years time, The Times newspaper reported on Friday. By 0840 GMT, the euro was virtually unchanged from late U.S. trading levels at $1.2209 .
...
The Swiss franc held steady against the euro and the dollar before Switzerland's leading KOF indicator of business expectations for January is released at 1030 GMT. The indicator, which points to the expected performance of the Swiss economy in about six months time, hit its highest in 5-1/2 years in December.
...
(in the US) Gross domestic product is seen expanding 2.8 percent, down from a 4.1 percent pace of growth in the previous quarter. "If the GDP comes in above forecasts ... it surely will help form a market consensus that there will be more rate hikes," said Hiroki Shimazu, a market economist at Mizuho Securities in Tokyo. "That will boost the dollar." The Fed is widely expected to raise rates for a 14th straight time at its policy meeting on Tuesday, to 4.5 percent. But the U.S. currency has suffered so far in 2006 on worries the central bank will signal that its 18-month cycle of interest rate rises would not continue beyond this month.

[UpInArms]

22. Reports in: GDP 1.1%

8:30am 01/27/06 U.S. CORE PCE PRICE INDEX UP 1.9% YEAR-ON-YEAR

8:30am 01/27/06 U.S. 2005 PERSONAL SAVINGS RATE NEGATIVE 0.5%

8:30am 01/27/06 U.S. 4Q DURABLE GOODS SPENDING FALLS 17.5%, MOST IN 18 YEARS

8:30am 01/27/06 U.S. 4Q CORE PCE PRICE INDEX RISES 2.2%

8:30am 01/27/06 U.S. 2005 RISES 3.5% VS. 4.2% IN 2004

8:30am 01/27/06 U.S. 4Q BUSINESS INVESTMENT RISES 2.8% VS. 8.5%

8:30am 01/27/06 U.S. 4Q CONSUMER SPENDING RISES 1.1% VS. 4.1%

8:30am 01/27/06 U.S. 4Q FINAL SALES FALL 0.3%, 1ST DECLINE SINCE RECESSION

8:30am 01/27/06 U.S. 4Q GDP RISES 1.1% ANNUAL VS. 2.7% EXPECTED

[UpInArms]

23. U.S. GDP slows to 1.1% rate in fourth quarter

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38744.354567419-858625624&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Growth in the U.S. economy slowed dramatically to a 1.1% annual rate in the fourth quarter, the weakest growth in three years, the Commerce Department estimated Friday. The slowdown in real gross domestic product from 4.1% in the third quarter to 1.1% in the fourth was largely due to weak auto sales, slower business investment, a rise in imports and a large drop in federal spending. Inventory building was the main engine of growth in the quarter. Final sales fell 0.3%, the first decline since 2001. The core personal consumption expenditure price index rose at a 2.2% annual rate in the quarter. For all of 2005, the economy grew 3.5%, down from 4.2% in 2004. The personal savings rate was negative for the first year since 1933.

[UpInArms]

52. Economic slowdown unexpectedly steep in Q4

http://www.usatoday.com/money/economy/gdp/2006-01-27-gdp_x.htm?POE=NEWISVA

WASHINGTON (Reuters) — Economic growth slowed sharply in the fourth quarter to the weakest pace in three years as consumers spent less robustly, growth in homebuilding eased and businesses were less eager to boost investments, a government report Friday showed.

Gross domestic product, the broadest measure of economic activity within U.S. borders, advanced at a 1.1% annual rate in the October-December period — little more than a quarter of the third quarter's 4.1% rate and the weakest for any three months since 0.2% in the fourth quarter of 2002.

Consumer spending, which fuels two-thirds of national economic activity, slowed to a 1.1% annnual rate of growth, sharply below the third-quarter rate and the weakest since a 1% gain in second quarter of 2001.

Fourth-quarter growth was far weaker than the 2.8% rate economists had forecast and reflected widespread softness. Spending on costly durable goods, which include cars and other items intended to last three years or more, plunged at a 17.5% rate. That was the steepest drop in durables spending in nearly 19 years, since a 23.2% fall in the first quarter of 1987.

...more...

[EuroObserver]

53. Dollar falls after weaker-than-expected US GDP

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh84257_2006-01-27_13-38-04_nya000185_newsml
NEW YORK, Jan 27 (Reuters) - The dollar pared earlier gains and headed lower against major currencies on Friday after the first official estimate of U.S. economic growth in the fourth quarter of last year fell far short of economists' expectations.

Gross domestic product expanded at a rate of 1.1 annual percent in the fourth quarter, according to Commerce Department. Economists surveyed by Reuters expected growth of 2.8 percent.

The dollar quickly reversed course and started retreating from its highs for the week. falling to 116.40 yen from around 116.75 yen just before the data were released. The euro bounced up to $1.2215 from $1.2170 before the data.

[EuroObserver]

67. Here's some alternative spin (also from Reuters)

Dollar extends gains in wake of U.S. data
Fri Jan 27, 2006 11:24 AM ET
NEW YORK, Jan 27 (Reuters) - The dollar extended gains on Friday, fueled by better-than-expected U.S. housing data and expectations for strong U.S. economic data next week, traders said.

The dollar climbed to a three-week high of 117.06 yen , up 0.5 percent from Thursday and almost a full yen above intraday lows.

The euro sank 0.7 percent to $1.2115 , accelerating losses after dipping below its 200-day moving average around $1.2160, according to Reuters data.

The dollar has erased its losses for the week, based on increased market expectations the Federal Reserve will continue to tighten monetary policy after a widely anticipated rate hike next week.

Surprised, confused, or sold-out economists? Ah, yes of course, real economists are no longer affordable/tolerable; so all this is no more than PR...

[UpInArms]

43. U.S. Dec. new home sales rise 2.9% to 1.269 million

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38744.4170007407-858634080&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) - Sales of new U.S. homes increased a surprising 2.9% in December to a seasonally adjusted annual rate of 1.269 million, the Commerce Department reported Friday. Economists were expecting sales to fall slightly to a 1.23 million rate. The sales rate in November was revised lower to 1.233 million from 1.245 million previously. For all of 2005, new home sales rose 6.6% to a record 1.282 million. The inventory of unsold homes increased 2.4% in December to a record 516,000, a 4.9-month supply at the December sales pace, matching the cyclical high set in November. The median sales price fell 3.4% year-over-year to $221,800 in December. The median price for all of 2005 rose 7.4% to $237,300.

10:00am 01/27/06 U.S. DEC. NEW HOME MEDIAN PRICE DOWN 3.4% Y-O-Y AT $221,800

10:00am 01/27/06 U.S. 2005 NEW HOME SALES RISE 6.6% TO RECORD 1.282MLN

10:00am 01/27/06 U.S. DEC. NEW HOME INVENTORY UP 2.4% TO 516,000, 4.9 MONTHS

10:00am 01/27/06 U.S. NOV. NEW HOME SALES REVISED LOWER TO 1.23MLN VS 1.24MLN

10:00am 01/27/06 U.S. DEC. NEW HOME SALES ABOVE 1.23 MILLION EXPECTED

10:00am 01/27/06 U.S. DEC. NEW HOME SALES RISE 2.9% TO 1.269MLN PACE

Are they counting as "new homes" all those trailers for Katrina evacuees?

hmmm.....

manufactured housing is not the equivalent of a "new home"

if it has a serial number, it is not a house - it is a vehicle!

[Roland99]

94. Need those new home sales so owners can mortgage all of the equity.

Something has to keep the GDP from being negative.

[EuroObserver]

9. Bush to embrace a ‘competitiveness’ agenda

http://news.ft.com/cms/s/a4c4e0b0-8eae-11da-b752-0000779e2340.html
George BushGeorge W. Bush, US president, is to embrace a “competitiveness” agenda advocated by big US technology companies in his State of the Union address next week.

Amid growing concerns that the US is lagging behind in cutting-edge research and has fallen behind China and India in training science and technology graduates, he is expected to highlight the need for measures to improve US industry’s competitiveness.

In a press conference in Washington on Thursday, Mr Bush said: “We live in a competitive world, and so policies must be put in place to recognise the competition of the global economy and prepare our people to be able to continue to compete so America can continue to lead.”

/more...

I guess this means even higher CEO rewards, even less regulation, even lower workers' wages (and a much lower dollar) :-(

[fasttense]

17. Wow EuroObserver, you provide some detailed info. Thanks.

"Amid growing concerns that the US is lagging behind in cutting-edge research and has fallen behind China and India in training science and technology graduates,"

This will probably mean more cuts in college education funding. I've got two kids in college now and let me tell you it is tough on a median income. Keep those middle class in the wage slave market and we'll import the science and technology grads. Sigh...

[EuroObserver]

61. Check out UNESCO's latest report on R&D here

(and also education, other stats, in the sidebar):

Asia overtakes Europe in R&D expenditure - Updated: 2006-01-26 3:31 pm

North America continues to lead in scientific investment, with public and private funding accounting for 37% of the world’s gross expenditure on research and development (GERD) in 2002. However, Asia is now the second largest investor, with a share of 32%, overtaking Europe which contributed 27% of GERD, according to data from the UNESCO Institute for Statistics (UIS) featured in the UNESCO Science Report 2005.

The UNESCO Science Report 2005 reviews the state of science around the world through the eyes of an independent team of experts. The report brings together an extensive number of figures and tables to help understand how contemporary issues are shaping science around the world.

The central question underlining the report is whether “the USA, Europe and Japan continue to dominate knowledge production” or if a “more balanced situation” is emerging, whereby diverse countries share in the wealth derived from R&D.

Part of the answer lies in expenditure patterns. According to the UIS, the GERD shares of North America and Europe fell by about 1% between 1997 and 2002. In contrast, expenditure has been rising in Asia, where GERD grew by about 4% during the same period.

China has seen the most remarkable growth, with its global share of GERD more than doubling, from 4% to 9% between 1997 and 2002. This compared with 6% for the Newly Industrialized Asian economies, up from 4% in 1997. /much more...

[wordpix]

90. don't get me started on education. I'm a teacher. We ARE lagging behind

[54anickel]

82. I had this nice reply typed up earlier to this, then lost the whole damned

thing when my power went out. Basically Bush is paying lip service. He doesn't believe in science and the only degree that matters to him is an MBA. Competition has been redefined by the Repukes, St Ronnie with his deregulation and union busting, Newt with his Contract on America. It's come down to cooking books, stats and the short-term. It's used to justify huge salaries to attract the best and brightest (at cooking books, states and focusing on the short-term).

The "product" is immaterial, quality assurance focuses on the short-term and cost. The only "innovation" being rewarded is that which makes the books LOOK good. Recruit and retain the best hands and minds that MAKE the product? That is soooo 70-ish! No, we recruit and reward those with the best short-term results. They pad their resumes by gutting a company, cutting costs that are important for the long-term and moving on to the next highest bidder for their "expertise". That is the only competition that is rewarded in Murika today. It is all the boy king and his merry band of repuke robber barons understand.

Big talk from a party and Administration that is pushing a budget reconciliation bill that again focuses on the short-term and cuts 12.7 billion from the Fed student loan program (incidentally the largest cut in the history of the program). :nuke:

[AnneD]

112. Of course..

we wage workers can't compete with India and China until our wages are the same as theirs....$3 dollars US a week. :argh:

[ozymandius]

10. Oil prices climb above $67; focus on Iran, Nigeria

LONDON (Reuters) - Tension in leading oil producers Nigeria and Iran pushed prices back above $67 a barrel on Friday as high stockpiles in the United States failed to calm investor nerves.

U.S. light crude was up 83 cents to $67.09 a barrel by 0952 GMT, while London Brent crude climbed 85 cents to $65.77.

"The U.S. inventory data clearly worried the market, but the Iranian and Nigerian situations are providing support to prices," said Tobin Gorey of the Commonwealth Bank of Australia.

-cut-

Top oil exporter Saudi Arabia also sought to soothe consumers, saying it would fill any supply gap and that the Organization of the Petroleum Exporting Countries would keep pumping nearly flat out.

more...

[hatrack]

36. But I thought the Saudis said they could pump 20 MBD for 50 years!!

What happened?!?! :silly:

[AnneD]

100. They are not called

O PECKER's for nothing (that's a Texas Oil Industry expression).

[UpInArms]

42. March Crude @ $67.35 bbl - Feb NatGas @ $8.62 mln btus

10:04am 01/27/06 MARCH CRUDE CLIMBS $1.09, OR 1.7%, TO $67.35/BRL IN NY

10:04am 01/27/06 FEB NATURAL GAS JUMPS 39.1C, OR 4.8%, TO $8.62/MLN BTUS

10:04am 01/27/06 MARCH NATURAL GAS UP 40.9C, OR 4.9%, AT $8.83/MLN BTUS

[EuroObserver]

55. Europe short of gas as Russia, Ukraine wrangle

MOSCOW, Jan 27 (Reuters) - Much of Europe and parts of the former Soviet Union battled energy shortages on Friday as Russia failed to pump enough gas to meet demand that was boosted by unusually cold winter weather.

Russia supplies a quarter of the region's gas needs and, until this year, had been a dependable supplier.

/more...

[EuroObserver]

60. FT: Politcal tensions heat oil prices

http://mwprices.ft.com/custom/ft-com/story.asp?dateid=38744.4680092593-858640972&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}
Oil prices heated up again on Friday as concerns persisted over possible disruptions to supply in Nigeria and Iran, and Opec said it would be unlikely to act to contain prices if Iran decided to cut production in its nuclear dispute with western countries. IPE March Brent added 90 cents to $65.82 a barrel and Nymex March West Texas Intermediate also jumped 90 cents, to $67.16 a barrel. Attacks on oil installations in the Niger Delta have shut down 10 per cent of Nigerian production over the last month, and Nigeria’s oil minister has said the country will not address security concerns until militants release four hostages taken earlier this month.

[54anickel]

96. Meanwhile the rest of the world continues on their contingency plans

http://www.iht.com/articles/2006/01/26/business/saudi.php

Saudi Arabia pursues a 'look-East policy'

snip>

China and India are both reshaping their diplomacy to serve their energy needs. They have both bid for access to oil fields in places like Sudan, Iran and Kazakhstan, and recently signed a deal to cooperate in their bidding for fields.

Around 2015, global oil supply will peak and begin falling, and new consumers like India and China will vie with old ones for ever scarcer barrels, said Saad Rahim, an energy industry analyst at PFC Energy in Washington. "For the next 10 years, it's non-zero-sum," he said. "After that, you do start to hit some very real constraints."

snip>

James Woolsey, a former CIA director, said in an e-mail that Abdullah's Asia visit offered evidence of "the growing economic importance of China and India and portends the substantial effect their growth will have on oil demand." So drastic will be the effect of such partnerships on global oil prices, he said, that the United States must turn to "vigorously pursuing both alternatives to conventional oil and vehicle efficiency at a much faster pace."

Riyadh's overtures in Asia are also designed, analysts say, to engage with rising powers that are far less interested than Washington is in what Saudi Arabia does within its borders.

Until recently, the United States wanted Saudi oil, offered protection in return and asked little else. More recently, "the simplicity of this bargain became embarnacled with all sorts of other agendas, including women's rights, human rights, religious freedom and other issues that Saudis either find irksome or difficult to address," said Freeman, the former U.S. ambassador. "None of these issues arise with the Chinese or India."

Abdulaziz Sager, chairman of the Gulf Research Center in Dubai, argued in a recent article that China's lack of interest in the internal affairs of the countries from which it buys oil is attractive to Riyadh. "Since one of the commonalities between the two sides is the preference for a faster pace of economic reform compared to political change," he wrote, "and because China has criticized the U.S.'s anti-terror campaign and democracy plans - which too go well with the region's beliefs - scope for better ties between the two sides remains unlimited."

more...

Bush's idea of NOT Nation building = Empire building, no diplomacy required.

[UpInArms]

65. Chevron's 4Q Profit Soars to 126-Year Record High

http://www.chron.com/disp/story.mpl/ap/business/3617208.html

SAN RAMON, Calif. — Chevron Corp.'s fourth-quarter profit climbed 20 percent to $4.14 billion, a company record that continued the most prosperous stretch in the oil company's 126-year history as it capitalizes on high fuel prices that are squeezing consumers and ruffling politicians.


Its profit of $14.1 billion for the full year was also a company record.

The San Ramon, Calif.-based company's earnings for 2005's final quarter, released Friday, represented the most it has made in any three-month period since its inception in 1879. The performance edged the $4.13 billion earned during the second quarter of 2004 _ the early stages of a two-year boom.

Chevron now has posted record annual profits in each of the last two years, earning a combined $27.4 billion.

...more...

[UpInArms]

72. March Crude @ $67.35 bbl

12:21pm 01/27/06 MARCH CRUDE CLIMBS $1.09, OR 1.7%, TO $67.35/BRL

12:21pm 01/27/06 MARCH CRUDE TRADES OVER 1% BELOW WEEK-AGO CLOSE

[EuroObserver]

11. Goldman-led group invest $3.78bn in Industrial & Commercial Bank of China

Goldman, Allianz, AmEx buy into China's ICBC
BEIJING, Jan 27 (Reuters) - Goldman Sachs, Allianz and American Express agreed on Friday to invest $3.78 billion in Industrial and Commercial Bank of China, the country's largest bank, in the latest foreign bet on China's financial services sector.

The companies said in a joint statement a deal had been signed, but they did not confirm widespread reports that the trio had taken a 10 percent stake in ICBC, which has about 20 percent of China's banking market.

The price being paid by U.S. investment bank Goldman Sachs (GS.N: Quote, Profile, Research) , European insurer Allianz A.G. (ALVG.DE: Quote, Profile, Research) and U.S. financial services company American Express Co. (AXP.N: Quote, Profile, Research) is much higher than the $3 billion-plus sum reported when they signed a memorandum of understanding for a 10 percent stake last July.

Since then, regulators have been criticised for selling a stake in China Construction Bank (0939.HK: Quote, Profile, Research) too cheaply to foreigners.

Foreign firms have paid about $16 billion for minority stakes in Chinese banks as Beijing seeks overseas capital and skills to modernise its sprawling state-owned banks, their balance sheets weakened by decades of state-directed lending.
...
The deal requires final approval from China's regulators, who have cast a critical eye on other big banking deals.

/more...

[Jose Diablo]

21. LOL, it will be funny when the Chinese

nationalise the financial sector. They did it before. I hope Goldman Sachs gets really screwed by the Chinese. They will come running to papa here at home, and then we can yank their corporate charter and leave these wealthy peckerheads to form a line at the soup kitchen, just like we have to.

Export our jobs, they did. Bankers, bah.

[AnneD]

101. Hi Jose

:hi: Say, didn't bankers retool and become apple sellers in the Great Depression. :evilgrin:

[Jose Diablo]

116. I don't know about apples

but I remember film clips that showed plenty of guys in vested suits bellying-up with a bowl to get some soup.

You know, thinking about it, maybe a depression is what is needed to stop people from thinking material things are more important than spiritual things. Like MLK said in his speech 'Beyond Vietnam':

"I am convinced that if we are to get on the right side of world revolution, we as a nation must undergo a radical revolution of values. We must rapidly begin the shift from a "thing-oriented" society to a "person-oriented" society. When machines and computers, profit motives and property rights are considered more important than people, the giant triplets of racism, materialism, and militarism are incapable of being conquered.

A true revolution of values will soon cause us to question the fairness and justice of many of our past and present policies. On the one hand we are called to play the good Samaritan on life's roadside; but that will be only an initial act. One day we must come to see that the whole Jericho road must be transformed so that men and women will not be constantly beaten and robbed as they make their journey on life's highway. True compassion is more than flinging a coin to a beggar; it is haphazard and superficial. It comes to see that an edifice which produces beggars needs restructuring. A true revolution of values will soon look uneasily on the glaring contrast of poverty and wealth. With righteous indignation, it will look across the seas and see individual capitalists of the west investing huge sums in Asia, Africa and South America, only to take the profits out with no concern for social betterment of the countries, and say: "This is not just." It will look at our alliance with landed gentry of Latin America and say: "This is not just." The western arrogance of feeling that it has everything to teach others and nothing to learn from them is not just. A true revolution of values will lay hands on the world order and say of war: "This way of settling differences is not just." This business of burning human beings with napalm, of filling our nation's homes with orphans and widows, of injecting poisionous drugs of hate into veins of people normally humane, of sending men home from dark and bloody battlefields physically handicapped and psychologically deranged, cannot be reconciled with wisdom, justice and love. A nation that continues to spend more money on military defense than on programs of social uplift is approaching spiritual death."

Maybe we need a depression for people to sort out what is really important in life. Material things or spiritual (people) things.

That MLK, he was quite a guy. Here, check out the whole speech:

http://www.hartford-hwp.com/archives/45a/058.html

Edit: To put quote in block to read easier.

[EuroObserver]

12. Funds pouring into Indian private co's hit $2.3 bln

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh78225_2006-01-27_09-47-16_t201876_newsml
TOKYO, Jan 27 (Reuters) - Private equity firms invested a record amount in India last year, but the funds face stiffer competition for deals in 2006 from foreign rivals and a buoyant stock market. The funds sunk about $2.3 billion into Indian companies in 147 deals in 2005, according to data compiled by Venture Intelligence India. The amount invested, as well as the number of deals, was significantly higher than the $1.6 billion invested across 68 deals during 2004.

"The easy pickings have been taken and the remaining assets are no longer cheap. Private equity funds need to work harder, but the upward trend in investment is here to stay," said Gobal Jain, managing director at Gaja Capital Partners, a private equity firm in Mumbai.

India is likely to continue to attract investors over the coming years because of its robust economic growth -- pegged at about 7.6 percent in 2005/06 -- its entrepreneurial culture and a growing interest by institutional investors in the country, fund managers said. "There is a strong need for growth capital. Indian companies are reporting sales growth of 15-20 percent a year which they will want to maintain and the capex cycle has just begun," said Ashish Chugani, managing director for India at Ankar Capital Management LLC.
...
The pace of asset sales by funds also picked up. Funds sold their investments in over 42 Indian companies during 2005, up from 30 exits the year before, Venture Intelligence India said. "Recent exits have been very lucrative. Private equity funds in India are making handsome returns in shorter timeframes than in other countries," said Ankar's Chugani. The funds have been able to drum-up returns of between 2-5 times their investment in a period of between 1-3 years instead of about five years which is typical in many other countries, he said.

These returns have attracted many global funds to India, such as Blackstone, which said in May 2005 it had allocated $1 billion for investing in India. Other arrivals include the U.S. buyout firm Carlyle Group and European-based Apax Partners.

/more...

[ozymandius]

13. Microsoft Profit Up on New Product Launch

SEATTLE - The successful launch of a new server product and robust demand for personal computers powered by its Windows operating system helped Microsoft Corp. post a 5 percent increase in fiscal second quarter profits.

The results released Thursday, combined with slightly higher profit guidance for the current fiscal year, appeared to please investors. Company shares rose 51 cents, or nearly 2 percent, in late-session trade.

-cut-

For the three months ended Dec. 31, the Redmond-based software maker reported earnings of $3.65 billion, or 34 cents per share, up from $3.46 billion, or 32 cents per share, in the same period last year.

-cut-

Microsoft's MSN online division also saw earnings fall to $58 million, from $130 million in the same quarter last year. Liddell attributed the drop to a significant decline in its business of offering narrowband Internet connections, which is being supplanted by increased popularity in faster broadband offerings.

more...

[JNelson6563]

18. Great stuff! Found a good post in GD

I thought this was interesting and that you Marketeers might think so too: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x2398050

I'm really curious to see housing and GDP numbers this morn.

Cheers--
Julie

[Jose Diablo]

19. Whoa, anybody watching silver?

$9.72/oz at Kitco. It looks like it cracked the 9.5 barrier and is on it's way to 10.00.

http://www.kitco.com/charts/livesilver.html

I'd say the whole thing should tank just about the same time Greenspin departs. March or so?

[UpInArms]

44. Silver, platinum futures reach fresh multi-year highs

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B2D2DD8B1-4102-45B5-9229-F27C9AC51F42%7D&

SAN FRANCISCO (MarketWatch) -- Silver and platinum futures climbed to fresh multi-year highs in New York and copper rose to another record, as gold prices edged closer to levels not seen since 1981. February gold was last up $2.80 at $262.70 an ounce. It reached a 25-year high over $568 a week ago. March copper rose 3.25 cents to $2.234 a pound after a record $2.236. April platinum added $11.90 to $1,077 an ounce after a 26-year high of $1,078.90 and March silver rose as high as $9.75 an ounce, its highest since 1987. It was last up 11 cents at $9.715.

[UpInArms]

20. daily dollar watch

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

Last trade 88.82 Change +0.21 (+0.24%)

Is the Dollar’s Rally Sustainable?

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/6348_is_the_dollars_rally.html

US Dollar
As we had pointed out yesterday, durable goods came out stronger than expected, giving EUR/USD traders the green light to take a shot at 1.2150. For the third consecutive day, the dollar has reigned king thanks to a dose of good data, a strong rally in the stock market and optimism that Russia and Iran may have found a solution that could satisfy the US and EU in hopes of putting an end to the global stalemate over nuclear power. The market has become increasingly convinced that the Fed will follow-up this month’s rate hike with another one in March. Fed fund futures are now pricing in a 72 percent chance that we will see 4.75 percent rates on March 28th, which is up from a 50 percent chance last week. Even if this is true, we wonder how much optimism there really can be in the US dollar with the outlook for the US economy still murky. Admittedly, durable goods and jobless claims were both stronger. Orders for durable goods increased 1.3 percent in the month of December following an upwardly revised 5.4 percent rise in the previous month. Orders excluding transportation were up 0.9 percent, just a bit shy of the market’s 1.0 percent forecast. However, the revision from -0.6 percent to +0.6 percent in November more than made up for the difference. Jobless claims increased 11k to 283k, which was a smaller than expected rebound after last week’s slide to 5 year lows. On the flip side, the dollar’s rally could face fierce resistance at the 1.2150 level as speculation for a Chinese New Year (this weekend) revaluation escalates with Senator Grassley threatening another sanction bill for China if they fail to make any more adjustments. Furthermore demand for two year Treasuries at yesterday’s auction was the weakest in nine months. Additionally, we are keeping a close eye on the housing market, especially with new home sales due for release tomorrow. According to one of our favorite economic blogs written by Michael Shedlock, there are reports of fire sales on homes in Washington DC. Home builder Centex is offering a 12 hour seller pays all closing costs, $100,000 off and 100 percent financing sale in 9 locations. Time Magazine also has an article this week titled “Vegas Condos Go Cold.” According to their report, condo builders have already called off 3 high profile projects and experts are now forecasting that “only a quarter to half of the six dozen originally proposed projects will ever be built.” If these are not signs of a slowing housing market, we don’t know what is. At this rate, even if we do get 4.75 money, can the Fed really justify bringing rates to 5.00 percent? Ultimately, the end of rate hikes is near, it is not a matter of if, but just a matter of when.

...more...

[UpInArms]

24. DAVOS-Kimmitt says no sign investors dropping US assets

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-27T124432Z_01_LAE000080_RTRIDST_0_DAVOS-USA-KIMMITT-URGENT.XML

DAVOS, Switzerland, Jan 27 - U.S. debt markets will remain strong and there is no evidence to show investors are withdrawing dollar holdings from U.S. assets, deputy Treasury secretary Robert Kimmitt said on Friday.

"I think our markets are and will remain strong," Kimmitt told Bloomberg Television at the World Economic Forum in Davos.

"I think the U.S. remains an exceptionally attractive investment location. I haven't seen any statistics that would suggest any of those excess dollars they may have are being moved out of the United States," he said.

Kimmitt said the U.S. economy was strong and would continue to be so.

[EuroObserver]

78. DAVOS: US tries to allay fears of foreign Treasuries snub

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh89290_2006-01-27_16-35-06_l2714650_newsml
DAVOS, Switzerland, Jan 27 (Reuters) - Senior U.S. officials have had a message for financial markets at the World Economic Forum this week -- the U.S. Treasury market is in no danger of a meltdown from a shift in Asian investing patterns.

The rallying cry has been that the U.S. bond market is strong, not overly reliant on foreign investment and still the best place for investors seeking somewhere to park their money .

"We are blessed with very broad, very deep and very liquid markets," U.S. Deputy Treasury Secretary Robert Kimmitt told Reuters in an interview on Friday.

It was an echo of remarks on Thursday by U.S. Treasury Under Secretary for International Affairs Tim Adams, who dismissed concerns about foreign selling of Treasuries, saying the market is "large, liquid and attractive".

Both men were responding to worries that overseas investors, particularly China, may be losing their appetite for U.S. Treasuries.

China's central bank governor Zhou Xiaochuan told a panel at Davos on Thursday, for example, that his country was likely to slow its accumulation of foreign reserves, implying it might buy fewer Treasuries.
...
Kimmitt said he was not concerned that China would now look elsewhere, in part because it was not in Beijing's interest to do so.

"I would expect China to remain a significant investor in the United States, and because it's a significant investor in the United States, it certainly would not do anything to harm its U.S. investment," he said.

CONTRADICTION?

Despite this, Washington has also used Davos to renew calls for China to allow the yuan to strengthen, a move that could risk Beijing selling U.S. bonds or buying fewer.

/more...

So, in more-or-less polite, diplomatic language, thank-you: Daggers drawn, pistols at dawn!

[54anickel]

91. Heh, must be in trouble if they are denying so vehemently. Remember

Snow and his "Strong Dollar" mantra when it was dropping? He finally had to explain that "strong" did not necessarily mean "high value", but rather in high demand by foreign banks and investors. :eyes:

[UpInArms]

25. U.S. appeals court says won't move Enron trial

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-27T004035Z_01_N26185167_RTRIDST_0_ENRON-HEARING.XML

HOUSTON, Jan 26 (Reuters) - A federal appeals court on Thursday declined to consider whether the trial of Enron Corp. chiefs Ken Lay and Jeffrey Skilling should be moved out of Houston because of jurors' potential bias against them.

In a brief written statement, a three-judge panel at the U.S. Fifth Circuit Court of Appeals in New Orleans said the district court in Houston where Lay and Skilling are set to go on trial on conspiracy and fraud charges on Monday "did not abuse its discretion" in denying a motion by the defense teams to send the case to another city.

Earlier this week, U.S. District Court Judge Sim Lake ruled for the second time that Lay and Skilling could get a fair trial in Enron's hometown, prompting the defendants to seek help from the higher court.

Lawyers for Lay and Skilling had asked Judge Lake to postpone the start of the trial for at least a week to await a ruling by the appeals court, although Lake also denied that request.

<snip>

In asking for the appeals court to step in, defense lawyers cited an expert's opinion that only 18 of the 286 possible jurors did not answer a questionnaire in a "disqualifying or troubling way."

...more...

[UpInArms]

29. Timeline: A chronology of Enron Corp.

http://www.iht.com/articles/2006/01/18/business/web.0117enron.time.php

A chronology of Enron Corp. and criminal cases emerging from its collapse:

1985 - Houston Natural Gas merges with InterNorth to form Enron, HNG CEO Kenneth Lay becomes CEO of combined company the following year.

1989 - Enron begins trading natural gas commodities.

1990 - Lay hires Jeffrey Skilling to lead the company's effort to focus on commodities trading in the deregulated markets. Andrew S. Fastow is one of Skilling's first hires later that year.

1991 - Richard Causey leaves Arthur Andersen LLP to join Enron as assistant controller.

1997 - Skilling named president and chief operating officer of Enron. Fastow creates Chewco, a partnership, to buy the University of California pension fund's stake in another joint venture dubbed JEDI, but Chewco doesn't meet requirements to be kept off Enron's balance sheet. First step toward similar financial moves to hide debt and inflate profits that fuel Enron's downfall.

...more...

Nowhere in there does it mention Wendy (wife of Phil) Gramm's part in the deregulation issue.

Electricity, Commodities Deregulation Allowed Enron to Loot Billions from Lenders, Shareholders, Employees and Consumsers

WASHINGTON, D.C. — After Enron Corp. used its vast web of political connections to win December 2000 passage of commodities trading legislation that helped the company shield its energy trading activities from government scrutiny, California’s energy crisis suddenly took a dramatic turn for the worse as artificial supply shortages led to frequent rolling blackouts, according to a new Public Citizen report released Friday.

The legislation reducing government oversight of energy trading was muscled through Congress — without a Senate committee hearing — with the aid of U.S. Sen. Phil Gramm of Texas. Gramm was chairman of the Senate Banking Committee, which had jurisdiction over the legislation he co-sponsored, but he chose to bypass his committee, and the bill was quietly tacked onto a "must-pass" appropriations bill late in the session. Gramm’s wife, Wendy Gramm, also aided Enron’s rise to power. As chairwoman of the Commodity Futures Trading Commission, she pushed through a key regulatory exemption on Jan. 14, 1993, just as she was about to leave office. Five weeks later, she joined Enron’s board of directors, where she served on the board’s audit committee and had access to key financial information about the company.

On Sept. 4 of this year, Sen. Gramm announced that he would not run for re-election in 2002. Then in November, shareholders and federal regulators learned the extent of Enron’s financial troubles. Since the revelations, the company has filed the largest corporate bankruptcy in history, and shareholders, lenders and Enron employees have lost billions of dollars.

"Millions of people in California paid outrageously inflated prices for electricity because of Enron’s ability to manipulate the markets for electricity and natural gas, and thousands of Enron employees and shareholders have been devastated because of insider dealing and financial trickery," said Public Citizen President Joan Claybrook. "Republicans in Congress investigated Whitewater for years and spent millions of dollars. But that pales in comparison to Enron-gate. Congress needs to turn over every rock and see what crawls out from underneath. They should ask, who knew what and when did they know it? Investigations into any criminal conduct should extend to the political players who aided and abetted this company’s rapacious rampage across America. We should make no distinction between the officers who committed these acts and the politicians who enabled them."

Public Citizen called on Congress to force Wendy and Phil Gramm and Treasury Secretary Paul O’Neill to testify under oath about their knowledge of Enron’s alleged accounting fraud and use of offshore tax and bank regulation havens. Public Citizen also said that President Bush, Vice President Dick Cheney and political adviser Karl Rove should also be required to answer questions about whether administration officials discussed policies involving energy price controls, other energy regulations or tax havens with Enron representatives. Bush adamantly resisted price controls even though California’s wholesale energy costs had almost quadrupled in 2000; at the same time, Enron’s trading revenues nearly tripled.

...more...

[UpInArms]

54. January 2002: White House plays down Enron links

http://news.bbc.co.uk/1/hi/world/americas/1754166.stm

The Bush administration is moving quickly to prevent the Enron collapse becoming a scandal like the Whitewater scandal that plagued the Clinton administration.

Speaking at the White House, President Bush said he was deeply concerned about the losses suffered by Enron workers and shareholders, which is why he was ordering a review of corporate disclosure rules and of company pension schemes.

<snip>

President Bush has acknowledged that Enron's chief executive Ken Lay was a political supporter. But he insisted he hadn't discussed the company's problems with Mr Lay.

"I have never discussed with Mr Lay the financial problems of the company. The last time that I saw Mr Lay was at my mother's fundraising event for literacy in Houston. That would have been last spring," Mr Bush said.

<snip>

Mr Lay served as one of Bush's Pioneers, a group of 214 elite fundraisers who helped the president line his war chest with millions of dollars.

...more...

[UpInArms]

56. 'I don't know' Abramoff, Bush says

http://www.usatoday.com/news/washington/2006-01-26-bush_x.htm

WASHINGTON — President Bush fended off questions Thursday about White House links to convicted lobbyist Jack Abramoff and refused to release photos that show the two men together. "I don't know him," Bush said.

<snip>

Abramoff has pleaded guilty to fraud, tax evasion and conspiracy to bribe public officials and has pledged to cooperate with investigators.

"If they believe something was done inappropriately in the White House, they'll come and look, and they're welcome to do so," Bush said.

Asked if he meets with lobbyists, Bush said, "I try not to." He said that lobbyists sometimes come to the White House, and he has met and thanked them for their help in pushing his agenda.

...more...

[UpInArms]

58. January 2006: White House Disputes Abramoff Ties

http://www.cbsnews.com/stories/2006/01/23/politics/main1227860.shtml

CBS/AP) Since the Jack Abramoff scandal broke, reporters have been digging hard for pictures that prove the disgraced lobbyist's ties to the White House. Now, two publications claim to have found them.

<snip>

Mr. Bush himself has said that he doesn't recall meeting Abramoff, the once powerful lobbyist who recently pleaded guilty to federal charges stemming from his lobbying practices and has pledged to cooperate with government prosecutors.

<snip>

The White House insists that even though Abramoff was a big-money donor to the president's re-election campaign, he never got any quality time with Mr. Bush.

"The president does not know him, nor does the president ever recall meeting him," White House spokesman Scott McCellan said Sunday.

...more...

[UpInArms]

26. US Treasuries surge as Q4 GDP growth slumps

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-27T133951Z_01_NYG000120_RTRIDST_0_MARKETS-BONDS-GDP-URGENT.XML

NEW YORK, Jan 27 (Reuters) - U.S. Treasury debt prices surged on Friday on data showing much lower-than-expected fourth-quarter economic growth, suggesting the Federal Reserve has room to stop raising interest rates soon.

The government's first estimate of growth in the fourth quarter came in at 1.1 percent, below economists' expectations of 2.8 percent growth. Third-quarter growth came in at 4.1 percent.

But the rally was capped by a rise in the core personal consumption expenditures index, the Federal Reserve's favored measure of inflation. The measure rose an annualized 2.2 percent in the fourth quarter, up from 1.4 percent in the third quarter. Wall Street had looked for a 1.6 percent gain.

...more...

[UpInArms]

59. 2-year Treasury yields hit 5-yr high on homes data

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-27T155205Z_01_NYG000122_RTRIDST_0_MARKETS-BONDS-YIELDS-URGENT.XML

NEW YORK, Jan 27 (Reuters) - Yields on two-year U.S. Treasury notes on Friday briefly hit their highest level since January 2001 as bond prices sold off in the wake of an unexpected rise in new home sales.

New home sales rose 2.9 percent in December to an annualized rate of 1.269 million units from a downwardly revised November reading of 1.233 million. Economists had been expecting December sales of 1.225 million units.

The market was also positioning itself before next week's Federal Reserve meeting, when the central bank is widely expected to raise official short-term interest rates by a quarter point to 4.50 percent.

...more...

[UpInArms]

27. Stock futures weaken after GDP report surprises

Surprised "economists" :rofl:

When will these "surprised economists" figure out that they are spewing shit?

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38744.3609193634-858626543&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Stock futures fell, then recovered slightly, as traders digested a dramatic slowdown in fourth-quarter GDP to a 1.1% annual rate, its weakest in three years. As growth slowed, core inflation heated up. The core personal consumption expenditure price index -- which excludes food and energy prices -- rose at a 2.2% annual rate in the quarter, above the Federal Reserve's 1% to 2% target range. In the past year, the core PCE index has increased 1.9%. The report puts the Federal Open Market Committee in a quandary. If growth were to remain tepid, the Fed would be obligated to hold rates steady or even cut them. But the continued inflation pressures argue for higher rates. Against this background, S&P 500 futures were last up 0.70 at 1,278.50, well off their early high of 1,283.50. Dow futures turned negative, and were last down 2 at 10,830.

[Zynx]

31. They are very bad at forecasting.

And yet some get paid $2 million a year to be wrong. Amazing isn't it. They call that the free-market, but I don't see any efficiency there.

In any event, the Fed absolutely must stop raising rates. Growth slows before inflation does in virtually all circumstances and we are definitely seeing growth slowing. This insistence on raising continuously without stopping to reflect on data will prove to be disasterous if they continue. The economy is simply not strong enough to support such an aggressive spate of rate increases.

[UpInArms]

35. the catch-22 is that if they don't continue to raise rates,

the dollar will crater and that will cause massive inflation.

[Zynx]

89. Weak economic growth does not help our currency either.

I think we actually do need a weaker currency in order to curb our huge trade gap. The only reason we have been able to finance such a huge trade deficit is that we can attract foreign investment at an amazing rate. However, eventually we will have to attract a bizarre amount of capital simply to prevent money from leaving the country by the hundreds of billions, something that happened on a smaller scale in Argentina in the late 1990s and early 2000s when they could not finance their trade deficit. A strong dollar is very bad for our exporters and a weak one does not cause the inflation you are alluding to until a total collapse occurs. What has happened as the dollar has gone through one of its worst slides in history is that foreign companies don't actually raise prices so much as they simply take a hit to their profit margins. If they had not done this and simply raised prices we would have seen 1970s style inflation all over again.

[UpInArms]

28. Rich, poor income gap widens

http://www.chicagotribune.com/business/chi-0601270145jan27,1,1050558.story?coll=chi-business-hed

llinois' richest families saw their incomes grow more than twice as fast as families at the bottom and middle of the economic ladder during the last two decades, according to a national study released Thursday.

The report, which offers a state-by-state analysis, suggests the gap between the nation's top earners and lower- and middle-income families is widening because of powerful economic forces, such as global competition, combined with government policies.

"The wealth and income is once again accruing to families at the very top," said Jared Bernstein, senior economist at the Washington, D.C.-based Economic Policy Institute, a liberal think tank.

<snip>

From the post-World War II period into the 1970s, average wages moved in lockstep with the country's economic growth, benefiting workers at all income levels equally, Bernstein said. But that changed starting in the 1980s, when the gap between rich and poor began to widen.

<snip>

A recent study by the Congressional Budget Office reported that real income fell by more than 1 percent between 2002 and 2003 for the bottom 20 percent of workers, remained virtually flat for workers in the middle and rose 3.9 percent for the top quintile. It jumped 8 percent for the top 5 percent of families.

"All indications are we're back to a situation that's more like the 1980s, and income inequality is growing again," said Elizabeth McNichol, senior fellow at the Center on Budget and Policy Priorities.

...more...

[Zynx]

32. Republicans would love to get back to the really old days with nobility

numbering less than 200 families having incomes sometimes 50,000x or more what the average worker got and ruling the country through owning all the land.

[UpInArms]

37. as converted_democrat pointed out yesterday, 24K showed up for 325

squal-mart jobs.

It appears that we are closer to 1933 than you may think.

[AnneD]

108. But, but....

haven't they already been doing that. I already see evidence of inbreeding.

[UpInArms]

30. pre-opening blather

09:05 am : S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: +9.5. Futures trade has held relatively steady as investors brush off the lower than expected rise in Q4 GDP. Another round of bullish earnings reports continues to stir buying activity. In particular, Microsoft's (MSFT) solid results and Proctor & Gamble's (PG) better than expected performance support the broader market. BDK, GCI, GDT, HCR, MAN, ODFL, PGL, and TROW are amongst companies that have also exceeded analysts' earnings expectations.

08:32 am : S&P futures vs fair value: +2.6. Nasdaq futures vs fair value: +8.5. Recently released Advance GDP data shows that the economy grew at a rate of 1.1% during Q4. Economists had expected a 2.8% rise. The chain deflator checked in at 3.0% (consensus 2.6%). Futures trade has ticked lower in the report's immediate wake, but still suggests a higher start for stocks. The bond market, meanwhile, has rallied. The 10-year is now up 10 ticks and down to a 4.48% yield.

08:00 am : S&P futures vs fair value: +3.9. Nasdaq futures vs fair value: +13.5. Versus fair value, futures trade indicates a higher start for the cash market. Earnings results from the Technology sector have spurred early buying action, and poise the Nasdaq for an especially strong start. Microsoft (MSFT) delivered a solid fiscal Q2 report, as well as reassuring guidance; Broadcom (BRCM) shares are surging following its much better than expected results and upside guidance; KLA Tenecor (KLAC) also beat expectations and issued upside guidance.

[Zynx]

34. Well, at least I have my P&G.

When it finally hits the double mark since I bought it I will jump for joy. It will have done it in a period when the market is still down a considerable amount(from Sept. 2000).

However, my problem is that I have a 12 stock portfolio now and I will have to deal with weakness created by the weak GDP figures.

[UpInArms]

33. Soros sees pullback in US consumer spending--CNBC

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-27T141427Z_01_N27356539_RTRIDST_0_ECONOMY-SOROS.XML

NEW YORK, Jan 27 (Reuters) - Billionaire financier George Soros told CNBC television on Friday U.S. consumer spending would slow sharply next year as a slowdown in housing hurts purchasing power.

He argued that a veneer of relative calm both in the United States and international financial markets masked some troubling patterns in the global economy.

"Everything looks to be just hunky-dory but I don't think the outlook for the next two years is very good," he said. "The downside risks are bigger than the upside."

[UpInArms]

38. Bush set to fill Fed vacancies: report

http://www.marketwatch.com/news/story.asp?guid=%7B56394776%2D3DE0%2D4C8C%2DBEEA%2D3AF765DE307D%7D&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - President Bush is ready to fill two vacancies on the seven-member Federal Reserve, according to a media report Friday.

Bush plans to soon nominate Kevin Warsh, the White House staffer responsible for financial-industry issues and a former investment banker at Morgan Stanley, to one vacancy, The Wall Street Journal reported, quoting two people familiary with the matter.

The other seat is expected to go to academic economist Randall Kroszner, who teaches at the University of Chicago and was a member of Bush's Council of Economic Advisers, according to the Journal report.

The nominations would give incoming Fed chairman Ben Bernanke some financial-industry expertise. Bernanke, a monetary economist, will likely face challenges in coming to grip with the Fed's vast regulatory powers. See full story.

The Fed's main job is to manage money supply and interest rates, but it's also the umbrella supervisory regulator responsible for the U.S. financial industry.

[Jose Diablo]

40. I wonder if Krosner was one of Leo Strauss's wonderboys in the 60-70's n/t

[Sammy Pepys]

48. I think he's too young.

Bachelor's in '84 from Brown, Ph.d. from Harvard in 1990. Strauss died in '73.

[UpInArms]

50. here's a link to some of his writings and speeches

http://gsbwww.uchicago.edu/fac/randall.kroszner/research/

[UpInArms]

39. 9:45 EST joy in the land of la la

Dow 10,827.80 +18.33 (+0.17%)
Nasdaq 2,296.42 +13.42 (+0.59%)
S&P 500 1,277.48 +3.65 (+0.29%)
10-Yr Bond 4.485 -0.38 (-0.84%)

NYSE Volume 188,887,000
Nasdaq Volume 239,778,000

09:40 am : It is a relatively mixed start for the market, which is digesting another round of generally good earnings results from the likes of Microsoft (MSFT), Broadcom (BRCM), and Procter & Gamble (PG). A weaker than expected Q4 GDP report is garnering some attention as a factor for why the market isn't doing better at this juncture. From our vantage point, the concerns about the Q4 GDP disappointment are a bit overblown. A drop in auto sales was largely responsible for the miss relative to the consensus estimate, but we should see a rebound in Q1. Also, bear in mind that the data is dated (we're nearly 1/3 of the way through Q1) and that, anecdotally, the "soft" Q4 GDP report could serve as a source of support as it feeds the argument the Fed, after its Jan. 31 FOMC meeting, will have reason to pause its tightening activities.DJ30 +2.16 NASDAQ +7.45 SP500 +1.93

[UpInArms]

41. 10:07 EST ecstacy attack on wall street - joy knows no bounds!

Dow 10,894.88 +85.41 (+0.79%)
Nasdaq 2,309.00 +26.00 (+1.14%)
S&P 500 1,282.57 +8.74 (+0.69%)
10-Yr Bond 4.497 -0.26 (-0.57%)

NYSE Volume 389,092,000
Nasdaq Volume 451,032,000

[ozymandius]

45. some blather for ya

10:00 am : The indices have edged slightly higher as they garner support from eight of the ten economic sectors. Energy is the early leader, with a 1.6% rebound in the price of crude, to $67.31 per barrel, helping to attract buyers. A strong earnings report from Haliburton (HAL 76.96 +1.81) contributes further upside. Chevron (CVX 60.10 -0.12) also delivered strong results, but fell shy of expectations. CVX is the S&P's only energy issue trending lower. Further to the earnings front, Microsoft (MSFT 27.34 +0.84), Broadcom (BRCM 70.27 +11.55), and KLA Tenecor (KLAC 54.45 +0.44) have pushed the Tech sector 1.1% higher. The bullish bias within technology is also evidenced in the SOX index's 3.9% advance.DJ30 +27.94 NASDAQ +15.90 SP500 +4.95 NASDAQ Dec/Adv/Vol 1151/1293/371.7 mln NYSE Dec/Adv/Vol 1090/1583/133.6 mln

[UpInArms]

46. morning Ozy!

shiny coin headbump!

:hi:

[ozymandius]

49. Good morning UIA.

Good to see you too - even with a sore noggin.

:hi:

[UpInArms]

47. Hancok Fabrics to close 50 stores in restructuring

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B73FA350D-FEA4-454C-BEF5-4882C3A6FA6A%7D&

SAN FRANCISCO (MarketWatch) -- Hancock Fabrics Inc. (HKF) said Friday it will close 50 stores in 2006 and subsequently reduce its operating districts to 36 from 47 and cut its regions to three from five in a move to improve performance. The store closings represent $32 million in annualized sales and $3 million in operating losses, the retailer said, and charges to earnings will be recorded to the extent that the $8 million of continuing occupancy costs exceed amounts estimated to be recoverable through subleasing the properties or early termination of the lease commitments. The elimination of the 13 district and/or regional management positions is expected to cut expenses by $1.1 million a year. Hancock will take a related fourth-quarter charge of $700,000. As well, the company said it plans to take a complete physical inventory of all of its stores, which it estimates will take six to 10 weeks and will cost $2 million to $3 million. The move will delay the reporting of its full-year results and may also delay Hancock's filing of its Form 10-K with the Securities and Exchange Commission.

[kineneb]

81. people can't afford time/$ for sewing/crafts?

I have almost quit sewing my own clothing...how can I compete with store-bought garments that are made offshore? The textiles alone cost more than a ready-made garment, never mind all the notions needed. And on our current budget, I can only afford clearence sales or the thrift shops anyway. Looks like sewing is becomming an upper-middle class hobby for those well-enough off to afford the spare time and the money for the materials.

[EuroObserver]

85. Jeeesus. Thanks for that observation. What would my mother say? n/t

[AnneD]

109. All I have time for is alterations....

to make used clothes fit or worse yet...repairs on shoddily sowen garments. I miss the days of sewing costumes for my daughter...sigh

[UpInArms]

51. SnowJob LIES on cue: Says slow Q4 GDP growth is an anomaly

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38744.4309121181-858636113&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Treasury Secretary John Snow dismissed the slowdown in GDP growth in the fourth quarter as an anomaly. "It's not consistent with what we're seeing," Snow said in a television interview. He said the 1.1% GDP growth rate, the slowest in three years, was dragged down by special factors. Snow said the economy "remains strong" and the "fundamentals are good."

[UpInArms]

62. 11:49 EST good times still rollin' on wall street

Dow 10,896.56 +87.09 (+0.81%)
Nasdaq 2,305.44 +22.44 (+0.98%)
S&P 500 1,283.27 +9.44 (+0.74%)
10-Yr Bond 4.509 -0.14 (-0.31%)

NYSE Volume 1,117,073,000
Nasdaq Volume 1,117,596,000

11:30 am : Buyers continue to dominate trading action; the major averages and all ten sectors retain solid gains. Crude, while still higher on the day, has pared much of its early gain. At this point, crude oil futures for March delivery are priced at $67.15 per barrel (+1.3%). The Energy sector (+1.6%) continues to lead the market's rise, and Tech's 1.2% gain lends influential support. Separately, the bond market has recently risen to positive territory. It appears that Treasury traders have focused more on the lower than expected Q4 GDP growth than on the better than expected new home sales. The benchmark 10-year note is now up two ticks and yielding 4.51%.DJ30 +85.07 NASDAQ +22.96 SP500 +9.95 NASDAQ Dec/Adv/Vol 1063/1751/1.01 bln NYSE Dec/Adv/Vol 923/2144/932.1 mln

11:00 am : The market remains well above the flat line. Sentiment remains broadly bullish. Within the Dow, 25 of 30 constituents are presently advancing. Microsoft (MSFT 27.43 +0.93) leads the blue chips, and Caterpillar (CAT 66.57 +1.40) and Pfizer (PFE 25.54 +0.49) sport gains that are 2.0% or more. Very strong overseas trade adds to the positive bias. Asian markets surged during their most recent session, with the Nikkei rising 3.6%. Japan's consumer prices had the first back-to-back gain since April 1998, a very good sign from the world's second-biggest economy. European markets are also faring well, with the FTSE 100, CAC 40, and DAX all up over 1.1%.DJ30 +74.28 NASDAQ +24.93 SP500 +9.64 NASDAQ Dec/Adv/Vol 935/1803/831.1 mln NYSE Dec/Adv/Vol 839/2166/525.3 mln

[ozymandius]

66. hootin' and hollerin'

12:08
Dow 10,923.78 +114.31 (+1.06%)
Nasdaq 2,307.73 +24.73 (+1.08%)
S&P 500 1,284.85 +11.02 (+0.87%)
10-Yr Bond 45.07 -0.16 (-0.35%)
NYSE Volume 1,212,367,000
Nasdaq Volume 1,197,593,000

[UpInArms]

69. Dow rises more than 1 percent on earnings optimism

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-27T171336Z_01_N27287865_RTRIDST_0_MARKETS-STOCKS-UPDATE-8-URGENT.XML

NEW YORK, Jan 27 (Reuters) - U.S. stocks gained sharply on Friday, with the Dow average now up more than 1 percent, after higher profits from bellwether Microsoft Corp. (MSFT.O: Quote, Profile, Research) and other companies added to investor optimsm.

The Nasdaq made a similar move earlier in the day.

Strategists had a mixed reaction to a government report showing slower-than-expected U.S. economic growth.

The Dow Jones industrial average <.DJI> was up 112.39 points, or 1.04 percent, at 10,921.86. The Standard & Poor's 500 Index <.SPX> was up 10.98 points, or 0.86 percent, at 1,284.81. The Nasdaq Composite Index <.IXIC> was up 24.77 points, or 1.08 percent, at 2,307.77.

[UpInArms]

71. Wall St forecasters way off on US growth estimates

(but let's all buy stock based on "optimism"!)

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-01-27T165436Z_01_N27229887_RTRIDST_0_ECONOMY-GDP-MISS.XML

NEW YORK, Jan 27 (Reuters) - The number-crunchers on Wall Street were well off the mark when it came to predicting U.S. growth in the fourth quarter, fooled by an unexpectedly large drop in defense spending.

Most economists still expect better growth in early 2006, but the fact that gross domestic product grew at a paltry 1.1 percent annualized rate at the end of last year curbed some of their optimism about the future.

It was the smallest gain in three years, and confused analysts who had been looking for a much more robust 2.8 percent increase after a 4.1 percent rise in the third quarter.

"It was one of the biggest surprises that I've seen in some time," said Cary Leahey, senior managing director at Decision Economics.

<snip>

"But I would not treat it as a sign that consumer spending is falling apart and that we will have a weak first half of the year," Leahey at Decision said.

...more...

[ozymandius]

74. "one of the biggest surprises that I've seen in some time"

The 4Q was supposed to be breakout time for the U.S. economy. I recall so many economic pundits trumpeting what they forsaw, as early as May 2005, in 4%+ growth in U.S. GDP by the end of the year. Optimism like this could be the reason why so many are sucker punched with quickly rising/sharply descending averages.

[EuroObserver]

86. I predict Monday (in US) is likely to be quite black... n/t

[Sammy Pepys]

76. They're probably buying stock...

...because a growth figure like that gives more weight to the argument of ending the interest rate hikes.

[UpInArms]

63. Jeb Bush trying to "buy" Disney/ABC News for $1.6M

http://www.orlandosentinel.com/news/local/state/orl-taxcut2706jan27,0,3517279.story?coll=orl-news-headlines-state

TALLAHASSEE -- Gov. Jeb Bush is expected next week to propose the biggest tax-cut package in state history, including a property-tax reduction that would save most homeowners less than $100 a year but mean millions of dollars to large landowners.

The $1.5 billion proposal also will include a roughly $500 million sales-tax holiday similar to one unveiled earlier this month by House leaders, along with a host of smaller cuts, said those familiar with the plan.

<snip>

Central to Bush's plan is about $500 million in a property-tax reduction that could save the owner of a home assessed at $300,000 about $80 a year.

The cut, however, could save Orange County's biggest landowner, Walt Disney World, about $1.6 million annually; Universal Orlando more than $400,000; and the Marriott hotel chain about $200,000 in the Orlando area alone.

<snip>

The state's outstanding debt is $22.5 billion, more than double what it was 10 years ago. Class-size requirements and meeting the goals of growth-management legislation approved last spring also demand billions of dollars in state revenue, critics said.

...more...

I guess he is hoping for some "positive" coverage when he attempts to mount his BFEE royalty ladder to the throne.

[UpInArms]

68. The Good, The Bad and The Ugly: ALCOA Layoffs: Employee Speaks Out

http://www.kten.com/Global/story.asp?S=4411746

ALCOA Home Exteriors announces it's laying off 75 Denison-based employees. The company engaged the help of Workforce Texoma to help laid-off employees find new jobs. But one woman tells K-TEN News, ALCOA should have given the employees more notice.

One woman, who wishes to remain anonymous, has been employed by ALCOA for three years. She she is one of the 75 who got the ax. She says ALCOA is trying to look like the good guys for helping them out, but she says they really gave workers absolutely no notice.

She says ALCOA shut down their plant yesterday at three p.m. and started announcing the cut-backs. They started with the day shift and then announced the news to the night shift at nine p.m. When the employees arrived at the plant, they were divided into two groups. One group was handed a packet of information, and they were the group that got the bad news.

One former employee got a call from a friend because she was on vacation at the time. She says it's not right. "Several people have asked, are there going to be cut backs, are there going to be lay-offs? And they always said no! They should have given us fore-warning, and they should have given us a half-way decent opportunity to try and keep our jobs."

...more...

[diva77]

70. So where is the safest and most pc place to invest these days?

[Sammy Pepys]

75. You could use socially responsible mutual funds

Though they actually don't differ much holdings-wise from regular funds of the same category.

[UpInArms]

77. Hi diva77!

We (here at the SMW) do not give advice on where and what to invest.

I will suggest a weblink for "pc" investments:

www.karmabanque.com

[ozymandius]

79. Hi there diva77.

As a general rule, this is not a place to offer investment advice. Many here will mention where they have put their money - but this is only for rhetorical purposes - not advice. We generally do advise one with a question like yours to research and make a decision based on what level of risk is comfortable for you.

If you want a PC lead - look at Domini Social Equity funds. There are many flavors to choose from. There are many more companies than this. Do a search on "social equity funds" - or some configuration of that wording. You will find many socially responsible investment companies.

Ozy :hi:

[diva77]

118. Thank you, Ozymandius, Sammy, and UpInArms

definitely learned something from your leads...

[UpInArms]

73. Graft and the Republican Congress

[OrangeCountyDemocrat]

83. George Soros Coming On CNBC - 12:44 PM EST

With a "slightly different take on the global economy."

[OrangeCountyDemocrat]

84. Surprise! - He Thinks We're Headed Into Recession.

But the GOOD NEWS, as the CNBS reporter pointed out, is that Georgie "has been wrong before. He predicted that the $ would fall last year, when it actually rose." So DON'T WORRY, BE HAPPY!

Next up, how to get a hotel and golf package for under $500/night for a late winter getaway.

[EuroObserver]

87. ROFL!

...Suggest try dropping out, turning on, tuning in (in the immortal words of T. Leary RIP :smoke: )

ed. In that order, of course :bounce:

[Roland99]

88. We've been in one but don't know it. The Truth about the GDP >>>>>

It's all an illusion:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x243843

[AnneD]

113. Hmmmmm.

:dilemma: Soros makes how many million a year, the reporter makes how much a year...yahhh right.

[54anickel]

92. Health Savings Accounts Attract Wall St.

Circling for fresh meat since SS privatization didn't pan out. Must have more funds!

http://www.nytimes.com/2006/01/27/business/27health.html?_r=2

When it comes to medical benefits, millions of Americans already have a health insurer. Soon, many will also have a debit card and a bank tied to their medical plan.

Banks, credit unions and money management firms are now quietly positioning themselves to become central players in the business of health care, offering 401(k)-type accounts to cover future medical expenses.

Bank of America, J. P. Morgan Chase, Fidelity Investments and hundreds of others are hoping to capitalize on the latest wrinkle in medical care paid by consumers: health savings accounts, which have been around since 2003 but are moving to the fore of the national agenda in anticipation of the State of the Union address on Tuesday.

These supercharged checking accounts, which must be linked to a high-deductible health insurance plan, allow consumers to invest their own money for current and future medical expenses and have it grow tax-free.

They are the centerpiece of President Bush's plans on health care, just as private accounts were offered as a Social Security fix.

more...

[OrangeCountyDemocrat]

93. Amazing BS LIES On CNBS Right Now

WH IDIOT hubbard is spewing GARBAGE about how everything is wonderful. He has this fixed SMILE, which just stays constant, except when he laughs and smiles even more, all the while making LIES.

[ozymandius]

95. What?? Selling??? But the economy is smashing!

2:25
Dow 10,904.48 +95.01 (+0.88%)
Nasdaq 2,300.44 +17.44 (+0.76%)
S&P 500 1,282.51 +8.68 (+0.68%)
10-Yr Bond 44.97 -0.26 (-0.57%)
NYSE Volume 1,871,513,000
Nasdaq Volume 1,757,736,000

2:00 pm : The market fades further from today's highs, but the indices maintain solid gains. The retail industry has recently moved into negative territory. Wal-Mart (WMT 45.61 -0.71), the world's largest retailer, is the sorest spot there. WMT shares were downgraded to Neutral from Overweight at J.P. Morgan this morning, and have lost about 1.5%. Wal-Mart is presently the Dow's worst performer and the blue chip average's only constituent to have fallen 1.0% or more today. Despite relative weakness in retail, the Discretionary sector (+0.3%) remains higher. Also, the Consumer Staples sector (+0.6%) maintains positive footing in spite of WMT's decline.DJ30 +72.04 NASDAQ +14.14 SP500 +6.78 NASDAQ Dec/Adv/Vol 1315/1631/1.63 bln NYSE Dec/Adv/Vol 1198/1969/1.24 bln

[54anickel]

97. In Houston, you can hop on the Enron tour

http://www.ajc.com/business/content/business/stories/0127bizenron.html

snip>

During a tour practice run this week, Lord settled on parking spot No. 191 for a primo view. Look a few blocks west, and there are the gleaming twin towers formerly owned by Enron.

The glass skyscrapers, minus Enron's well-known "crooked E" sign out front, are icons of Houston's skyline.

"The 'skyring' walkway between the buildings is just a beautiful architectural gem. At night it looks like cut crystal," Lord said, swooping her hand toward the mirrored windows.

Back at ground level, Lord turns 180 degrees and points out the Methodist church attended by Lay, who has been keeping a low profile since being indicted on federal criminal charges in the Enron scandal. Towering just behind the church, Lord notes, is the skyscraper where defense attorneys have been toiling away.

"I had to look around for just the right vantage point, and this parking lot is just perfect," Lord noted, adding that she'll have to keep the tour confined to Saturdays, when the lot is close enough to empty to roll a bus through it.

Known as the "tunnel lady" for her tours of Houston's sprawling underground network, Lord dreamed up the Enron circuit, offered at $30 a person, as a tie-in to the trial.

more...

[54anickel]

98. The End of 'Unalienable Rights'

http://www.consortiumnews.com/2006/012406.html

Every American school child is taught that in the United States, people have “unalienable rights,” heralded by the Declaration of Independence and enshrined in the U.S. Constitution and Bill of Rights. Supposedly, these liberties can’t be taken away, but they are now gone.

Today, Americans have rights only at George W. Bush’s forbearance. Under new legal theories – propounded by Supreme Court nominee Samuel Alito and other right-wing jurists – Bush effectively holds all power over all Americans.

He can spy on anyone he wants without a court order; he can throw anyone into jail without due process; he can order torture or other degrading treatment regardless of a new law enacted a month ago; he can launch wars without congressional approval; he can assassinate people whom he deems to be the enemy even if he knows that innocent people, including children, will die, too.

Under the new theories, Bush can act both domestically and internationally. His powers know no bounds and no boundaries.

Bush has made this radical change in the American political system by combining what his legal advisers call the “plenary” – or unlimited – powers of the Commander in Chief with the concept of a “unitary executive” in control of all laws and regulations.

more...


Anyone catch BeezleBush's little slip yesterday regarding spygate and national security? "I will use my authori....uh, er, everything within my authority..." Nearly needed to join in the consumerism movement to buy a new TV. Wonder if TV sales go up after his speeches? Nearly threw a vase through mine. :grr:

On edit...

Forgot to mention, a good read and the embedded links are great. Be sure to check out the one under “unitary executive”. Either they are very short-sighted or they don't plan on relinquishing the WH any time soon. :shrug:

[AnneD]

114. Honey...

I've been saying for a long time they will cook up some nonsense to postpone or suspend elections. I have taken all the hard object away from the coffee table and end tables. I am left to throw pillows, popcorn, or just flipping him the bird. I can't afford a new tv until WalMart marks those Chinese tvs down below cost at Thanksgiving.

[AnneD]

99. Morning Marketeers,

You know it is a bad day when I post after 2pm CST. Just wanted to let you know that I have not been detained or reeducated, just too busy.

[54anickel]

104. Hi AnneD. Good to hear you're still among the free and living. It's

been a crazy morning here too. Didn't help that the power went out for nearly 3 hours. DU has been slow for me today as well. :shrug:

One thing for certain these days, if you show up to the SMW late, it's getting harder to catch up/keep up. So many interesting posts, so little free time.

Have a great weekend :hi:

[AnneD]

111. Thanks...

Every day here is like a goldmine of info. I find myself going back to read the info.
About your power, look on the bright side (pun intended), you save a couple of Franklins :evilgrin:
Have a good weekend too :hi:

[UpInArms]

102. US regulator says delaying Fannie report -multi-billion $ acctng problems

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-27T194246Z_01_WBT004679_RTRIDST_0_FINANCIAL-FANNIE-URGENT.XML

WASHINGTON, Jan 27 (Reuters) - A U.S. regulator on Friday said it would likely extend the target date for its report on Fannie Mae's multi-billion-dollar accounting problems.

"We expect the target date to be extended due to the sheer volume of documents involved in OFHEO's special examination," said a spokeswoman for the Office of Federal Housing Enterprise Oversight.

[54anickel]

105. Too big to delist...explains the SEC decision earlier this month.

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-26T223352Z_01_WBT004674_RTRIDST_0_FINANCIAL-NYSE-FANNIE-URGENT.XML

WASHINGTON, Jan 26 (Reuters) - U.S. securities regulators have approved a New York Stock Exchange proposal that allows the Big Board to keep a company's stock listed under certain circumstances even absent timely financial results.

Under the Securities and Exchange Commission's recently posted decision dated Jan. 19, the NYSE may decide that in rare circumstances a company that has failed to file timely financial results remains suitable for continued exchange listing because of its position in the market.

"The Exchange believes that there are very rare circumstances involving listed companies that have a position in the market (relating to both the nature of their business and their very large publicly-held market capitalization) such that their delisting from the Exchange would be significantly contrary to the national interest and the interests of public investors, notwithstanding a delay in an annual report filing that extended beyond one year," the SEC said in its order.

The rule change could benefit mortgage finance giant Fannie Mae (FNM.N: Quote, Profile, Research), whose continued listing on the New York Stock Exchange has been in question given the company's failure to file financial reports amid an accounting investigation.

[UpInArms]

110. Fannie Mae gets NYSE approval for continued listing

(how right you are!)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38744.7264335069-858672648&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Fannie Mae (FNM) said Friday evening that the New York Stock Exchange has granted its request to continue listing its shares, even though it hasn't yet filed its Form 10-K for 2004 with the Securities and Exchange Commission. The report was due last March. Fannie Mae said the continued listing comes under recently adopted amendments to NYSE's suspension and delisting procedures. Fannie Mae said the continued listing is subject to quarterly reviews by the NYSE, among other actions. Fannie Mae also said its outstanding debt at Dec. 31, 2005 was $756.31 billion.

[54anickel]

117. Wasn't it earlier this week or last week where we saw foreign investors

being herded into GSEs? What a freakin' joke.

First they tried threatening Fannie and Freddie saying "no such thing as to big to fail" when they missed the first deadline back in '04. Then they bent the rules for them a bit. Then they practically begged for the reports - the reply, "we're working on it". Now they bend the rules yet again because they are just too freaking big to delist. Well DUH!!! And just think of how much bigger they've gotten since all this first started in '03? They do still owe reports for '03, dont' they?

So, what else is "too big to delist" in the market these days? What a racket!

[UpInArms]

103. DOWNWARD REVISION: Chicago December PMI revised to 60.8 from 61.5

I am tired of them "quietly" letting the revisions come in after they have used these reports to trump up the lies.

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-27T182109Z_01_CHB000137_RTRIDST_0_ECONOMY-MIDWEST-URGENT.XML

CHICAGO, Jan 27 (Reuters) - The Chicago purchasing managers' index for December was revised to 60.8 from an originally reported 61.5, the National Association of Purchasing Management-Chicago said on Friday.

The move came as part of annual revisions to seasonal adjustment factors for the index, which measures business activity in the U.S. Midwest. A reading over 50 indicates expansion.

November's index was revised to 60.8 from an original 61.7; October was pegged at 61.96 against 62.9; September was at 60.6 versus 60.5; and August was recalculated at 51.9 against 49.2, the group said.

[ozymandius]

106. quittin' time

Have a great weekend folks!

Ozy :hi:

Dow 10,907.21 +97.74 (+0.90%)
Nasdaq 2,304.23 +21.23 (+0.93%)
S&P 500 1,283.72 +9.89 (+0.78%)
10-Yr Bond 45.03 -0.20 (-0.44%)
NYSE Volume 2,623,457,000
Nasdaq Volume 2,374,033,000

4:20 pm : Another solid round of earnings reports catalyzed a pervasive bullish sentiment Friday. A lower than expected read on fourth quarter GDP growth did little to temper buying action, and appeared to take a back seat to the corporate front today.

Dow components Microsoft (MSFT 27.77 +1.27) and Proctor & Gamble (PG 59.75 +0.93) were the session's highlights. The former delivered strong profits and issued reassuring guidance that supported both the Tech sector (+1.0%) and the broader market. Surging Broadcom (BRCM 69.87 +11.15) shares, following its blowout Q4 results, lent significant upside and underpins our Overweight rating on the sector. On account of BRCM and KLA Tenecor (KLAC 54.17 +0.16), which also reported better than expected earnings, semiconductors soared.

Up 1.9%, the Energy sector led. Amid continued geopolitical tensions, (i.e., Iran and Nigeria) supply concerns drove the price of crude 2.3% higher. Along with that factor, further indications of oil companies' profitability drove buyers to the Energy sector. Last night, Haliburton (HAL 78.95 +3.80)delivered strong earnings, followed by Chevron (CVX 60.77 +0.55) this morning. Health Care (+1.2%) also contributed to the market's advance. The health care equipment industry ran following Styker's (SYK 50.55 +6.22) earnings news, as did healthcare suppliers after Milipor (MIL 71.34 +5.90) reported. Pfizer (PFE 25.99 +0.94) was the muscle behind the rise; the company announced approval for its Exubera drug, and was also featured in Barron's today. Boston Scientific (BSX 21.55 -1.60) was the sector's weakest link - following its receipt of an FDA warning letter and on account of disappointing earnings from Guidant (GDT 73.73 1.53).

Homebuilders fared well after this morning's housing data, and a subsequent rise in the home furnishing industry took the Consumer Discretionary sector to a 0.4% gain. New home sales rose a surprising 2.9% last month; declines are still expected in the months ahead, but the report nonetheless served as another bullish factor for equities today. Proctor & Gamble's fiscal Q2 results stirred buying across the Consumer Staples (+0.8%) sector, and surging steel stocks were behind a 0.9% rise in Materials. On a related note, Mittal Steel (MT 34.13 +1.83) made a $2.27 billion cash bid for Arcelor SA this morning.

With respect to the GDP data, the economy grew 1.1% during Q4; economists had expected a 2.8% increase. Stock investors shrugged off the report, though. A sharp drop in auto sales was largely responsible for the miss relative to the consensus estimate, and we expect to see a rebound in Q1. Also, the fact that the data is dated helped investors get over the surprise. Anecdotally, the "soft" Q4 GDP report could actually serve as a source of support as it feeds the argument the Fed, after its Jan. 31 FOMC meeting, will have reason to pause its tightening activities. Ultimately, the market's attention rested upon the solid earnings front.DJ30 +97.74 NASDAQ +21.23 SP500 +9.89 NASDAQ Dec/Adv/Vol 1238/1758/2.24 bln NYSE Dec/Adv/Vol 1174/2085/1.94 bln

[54anickel]

107. Hurrah! They must be talkin' bout ME!!!!

rise in the home furnishing industry took the Consumer Discretionary sector to a 0.4% gain

See, I AM a productive member of society this year. Why I'll bet if it weren't for my pittance of home furnishing purchases, there'd be none at all. A 0.4% gain!!! Whooo-hoo, look at me go! I have the power!!! :evilgrin: (They do count sales at the second-hand store, don't they?)

Have a good one Ozy and all! :hi:

[AnneD]

115. No....

the consumer discretionary sector refers to what us folks make at garage sales :eyes:
Right back achya :hi: