STOCK MARKET WATCH, Friday 12 May

[ozymandius]

Friday May 12, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 983 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1968 DAYS
WHERE'S OSAMA BIN-LADEN? 1668 DAYS
DAYS SINCE ENRON COLLAPSE = 1629
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 May 11, 2006

Dow... 11,500.73 -141.92 (-1.22%)
Nasdaq... 2,272.70 -48.04 (-2.07%)
S&P 500... 1,305.92 -16.93 (-1.28%)
Gold future... 721.50 +15.80 (+2.19%)
30-Year Bond 5.23% +0.04 (+0.75%)
10-Yr Bond... 5.16% +0.03 (+0.59%)






GOLD, EURO, YEN, Loonie and Silver


PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Martin Goldberg

Man Bites Dog – Some Sectors NOT Going Up!
Worthy Bear Market Laggardship in Place

I’ve never experienced a bull market in practically everything across the globe. From the looks of world markets expressed in US Dollars and considering valuations, you would think that the market is discounting world peace and healthy economic growth and prosperity into the hereafter. While practically all of us wish this were true, this does not seem plausible. I’ve also never experienced a market that was led by precious metals and commodities also accompanied by sustained real advances in consumer related businesses; yet that is what we now have. In Europe, an environment of tepid economic growth at best; European stocks (expressed in US dollars) have recently gone upward in a parabolic manner. I have only two reasonable fundamental explanations for the behavior of the markets. Either what we are seeing is the nominal rise of worldwide assets expressed in US dollars due to a central-bank-induced world-wide liquidity bath, or worldwide markets are discounting the near term arrival of the messiah.

Such an environment makes it difficult for a market commentator with a taste for a “Man Bites Dog” story to come up with a compelling article. A writer wishing to discuss the falling dollar has to get in a long line because there is so much excellent commentary in circulation already. Writing about the hot sector becomes more Bou-Ya because everything is going up. And on that score, this market has produced a lot of Wall Street geniuses who owe their entire IQ to the existence of a Bull Market (expressed in US dollars). The precious metals market is leading the way, and for readers of this website this is good news because this was featured here from practically every angle before the crowd jumped on board the current precious metals bull market. But coming up with something that has not been said already about the precious metals market is a difficult, if not impossible task. If there are any “Man Bites Dog” stories in the market, it is a story about any market or sector that is not going up and this will be the focus of tonight’s short article.

-cut-

Today’s Market

All markets were down decisively today as the major markets put in a rare “distribution day.” If we are near a market top, and the major market trend is changing from up to down, it seems as if there is worthy laggardship in the name of the Nasdaq, Semiconductors, technology generals, and biotechnology stocks. The daily candlestick chart below depicts the Nasdaq market beginning at the October rally to the present. I’ve marked in red or black arrows significant and decisive market up and down days. These are days where the Nasdaq traded in a decisive up or down direction with exceptionally high volume. (see chart) As shown in the chart, each decisive day (up or down) was followed with indecisive action on the following days. Is there anything different this time? Maybe there is. Today’s down day occurred on higher volume than any previous down day. Additionally, the 50-day moving average was crushed at the market open. It will be telling if the market recovers from a decisive down day as it has done on two separate occasions since October.

-more charts-

There is a mix of bad stuff out there, and it would be foolish to be fooled by a bull market (expressed in US dollars). You think this is just a wall of worry? Look around you. Do you see a booming economy? (note: This question is addressed to only those not employed in the financial industry.)

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

[JNelson6563]

23. Yet another excellent Wrap-up!

Either what we are seeing is the nominal rise of worldwide assets expressed in US dollars due to a central-bank-induced world-wide liquidity bath, or worldwide markets are discounting the near term arrival of the messiah.


Yep. The end is near, we're gonna see the rapture any day now so we may as well live like it's our last day on earth.

Such a mindset would certainly explain things.

Julie

[ozymandius]

2. Today's Reports

8:30 AM Export Prices ex-ag. Apr
Briefing Forecast NA
Market Expects NA
Prior 0.2%

8:30 AM Import Prices ex-oil Apr
Briefing Forecast NA
Market Expects NA
Prior -0.3%

8:30 AM Trade Balance Mar
Briefing Forecast -$67.0B
Market Expects -$67.0B
Prior -$65.7B

9:50 AM Mich Sentiment-Prel. May
Briefing Forecast 87.0
Market Expects 86.0
Prior 87.4

[UpInArms]

27. 8:30 reports:

8:30 AM ET 5/12/06 U.S. MARCH TRADE GAP WITH CHINA $15.6 BLN

8:30 AM ET 5/12/06 U.S. MARCH TRADE GAP BELOW CONSENSUS OF $66.9 BLN

8:30 AM ET 5/12/06 U.S. MARCH TRADE GAP LOWEST SINCE AUGUST

8:30 AM ET 5/12/06 RECORD EXPORTS HELP NARROW U.S. MARCH TRADE GAP

8:30 AM ET 5/12/06 U.S. MARCH TRADE GAP NARROWS UNEXPECTEDLY 5.6% TO $62.0 BLN

8:30 AM ET 5/12/06 U.S. APRIL IMPORT PRICES EX-PETROLEUM FLAT

8:30 AM ET 5/12/06 U.S. APRIL IMPORT PRICES RISE 0.1% EXCLUDING FUELS

8:30 AM ET 5/12/06 U.S. APRIL PETROLEUM IMPORT PRICES RISE 11.5%

8:30 AM ET 5/12/06 U.S. APRIL IMPORT PRICE INDEX RISES 2.1%

[UpInArms]

28. U.S. April import price index rises 2.1% on petroleum

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B998122E0%2DF053%2D4AA8%2D8508%2D316B6E354975%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- Prices of goods imported into the United States increased 2.1% in April, led by the largest increase in petroleum prices in more than a year, according to the Labor Department. Petroleum import prices shot up 11.5% in April. Excluding petroleum prices, import prices were flat in April. Excluding all fuels, the import price index rose 0.1%. The rise in import price beat economists' expectations. According to the MarketWatch survey, analysts expected import prices to rise 1% in April after March's 0.4% drop.

Goodness Me! Everything else must have DROPPED in price to accommodate only a 0.1% rise - something definitely seems amiss with this report!

Have you noticed that everything other than fuel has dropped in price?

:eyes:

[UpInArms]

29. Record exports push trade gap lower in March (military to Iraq in there?)

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BB6CF3875%2D0C44%2D4621%2DA74C%2D210C877397C2%7D&symbol=

WASHINGTON (MarketWatch) -- Record exports to some of the largest U.S. trading partners pushed the trade deficit lower in March, a government report showed Friday.

The nation's trade deficit narrowed by 5.6% to $62.0 billion, the Commerce Department said.

This is the lowest deficit since last August, just before hurricane damage to refineries along the Gulf Coast caused a sharp updraft in the deficit because of the need for imported energy products.

<snip>

The difference was even more pronounced in the goods sector. Exports of goods alone rose 2.2% to $82.1 billion. The largest increase came in exports of industrial supplies, up 6.0% to $22.0 billion.

<snip>

Always in the political spotlight, the U.S. trade deficit with China widened to $15.6 billion in March from $12.9 billion in the same month last year. Despite the improvement in the trade deficit in the last two months, the U.S. bilateral deficit with China is trending higher. The trade gap with China rose to $47.3 billion in the first three months of the year, up from $42.0 billion in the same period last year.

...more...

[UpInArms]

39. May UMich Consumer Sentiment @ 79.0 (vs 87.4 April)

9:53 AM ET 5/12/06 U.S. MAY UMICH CONSUMER SENTIMENT SAID 79.0 VS 87.4 APRIL

9:54 AM ET 5/12/06 U.S. MAY UMICH CURRENT CONDITIONS SAID 96.2 VS. 109.2


9:54 AM ET 5/12/06 U.S. MAY UMICH EXPECTATIONS SAID 68.0 VS. 73.4 APRIL

9:55 AM ET 5/12/06 U.S. MAY UMICH CONSUMER SENTIMENT LOWEST SINCE OCT.

[UpInArms]

41. UMich consumer sentiment index falls to lowest since Oct.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B915E3429%2DB946%2D4EF5%2DA8BC%2D8C27D6A235B6%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- U.S. consumer sentiment plunged in May on rising gasoline prices and a softening labor market, according to media reports Friday of proprietary research. The University of Michigan consumer sentiment index fell to 79.0 in May from 87.4 in April, the lowest since October's 74.2. Economists expected a small decline to about 86.4. The current conditions index fell to 96.2 from 109.2, also the lowest since October. The expectations index fell to 68.0 from 73.4, also the lowest since October.

I guess that last October is now the benchmark? So, what are the questions: How do you feel about the lack of rebuilding of NOLA and high energy costs?

[UpInArms]

51. Biggest Drop EVER in UMich Current Conditions (Oct is NOT benchmark)

10:32 AM ET 5/12/06 BIGGEST DROP EVER IN UMICH CURRRENT CONDITIONS INDEX

looks like someone finally pulled their head out of their arse :eyes:

[Roland99]

56. Report: Steeply higher mortgages and school loans squeeze U.S. households

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B8E537F06%2D7BCB%2D439A%2DB139%2D0776DB0BD12E%7D&siteid=mktw&dist=

Middle-income families felt squeezed more than most, devoting a median 20% of their income to debt payments in 2004 - even at a time of low interest rates -- up from 18% in 2001. U.S. households overall spent a median 18.3% of income on debt payments in 2004, up from 16.9% in 2001, according to the report, which is based largely on data from the Federal Reserve Board's Survey of Consumer Finances.

And more families entered the group of seriously indebted: 13.7% of households faced debt payments greater than 40% percent of their income in 2004, up from 12.8% in 2001.

Looking at households' overall debt load, Americans' debt rose to a median 108% of income in 2004, up from 78% of income in 2001, with middle-income people facing the steepest rise, to a median 114% of income from 80% in 2001, according to the report.

"The middle-class squeeze stagnant income growth in the face of very sharp price increases for big-ticket items such as homes and education," said Christian Weller, author of the report and a senior economist with the Center for American Progress.

Way Beyond - Morcheeba

Driving with your handbrake on
But you can't smell the burning
Colliding with oblivion
Just to keep heads turning
Man I want some pretty cash
It's ugly all that saving

'Cause we could get so fabulous
When we're out Rolex raving
No craving

Oh we're way beyond our means
To buy these crazy things
Oh we're wasting our whole lives
In a struggle to survive

Get yourself in debt for me
The Grass don't get no greener
Have it all so far upfront
It doesn't take a dreamer,
a beamer

Oh we're way beyond our means
We love these spending sprees
Oh we're wasting all our time
On some production line

Diving down the rubbish chute
We'll be OK if we uproot
'Cause I don't need no heavy family
Holding me

Oh we're way beyond our means
To buy these crazy things
Oh we're making them Swiss Francs
To burst their private banks
Oh we're way beyond our means
We love these spending sprees
Oh we're wasting our whole lives
In a struggle to survive

[AnneD]

63. It is a big drop because....

those were bogus numbers last month. I called bull shit last month. Guess the numbers were so low this month they couldn't lie about it anymore. These look a bit truer.:eyes: I think they did pull their heads out.

[ozymandius]

3. Oil edges down but gasoline, Nigeria fears persist

SINGAPORE (Reuters) - Oil retreated on Friday after surging more than $3 in the past three days on concerns over gasoline supply in the United States ahead of the driving season and after new threats against foreign workers in Nigeria.

-cut-

Crude oil's jump is part of a wider rally in commodities as investment funds pile into the once-disparate group of markets. Copper inched lower on Friday after the previous day's record-highs, while gold drifted down after hitting a 26-year peak on Thursday.

While some industry analysts were dubious about the extent and sustainability of the surge on the metals markets over a short period, others believe that the strength of the oil sector will be supported by strong fundamentals.

"The picture on the energy market is more reliable in the long run as we have seen production capacity of about 1 million barrels offline... which will keep prices elevated," said Andrew Harrington, resources analyst from ANZ Bank in Melbourne.

more

[ozymandius]

4. Gulf Oil Exec Proposes Price Cap Program

BOSTON - Joe Petrowski would like nothing more than to see gasoline prices drop like a rock. But if they don't, the chief executive of Gulf Oil LP thinks he's hit upon a plan to help mitigate sky-high gas prices for the average driver.

Petrowski is working on creating price-cap and price-lock systems similar to programs that home heating oil companies have been offering for more than a decade to protect consumers from severe price spikes.

-cut-

The first aspect of Petrowski's program, reported Thursday by The Patriot Ledger of Quincy, would allow consumers to buy prepaid cards for a certain amount of gasoline at a set price. If the price at the pump rises, the card holder would still pay the lower price they locked in with their prepaid card.

"If the price goes up, you have locked in your price," he said. "You wouldn't have to use the card if the price of gas went down."

more

[ozymandius]

5. Oil Prices Drop Below $73 a Barrel in Asia

SINGAPORE - Crude oil futures dropped Friday in Asian trading after a big jump on the previous day that was caused by supply worries linked to violence in Nigeria, a major oil producer.

Light, sweet crude for June delivery fell 58 cents to $72.74 a barrel in electronic trading on the New York Mercantile Exchange by mid-afternoon in Singapore. The contract gained $1.19 to settle at $73.32 a barrel Thursday.

On Thursday, police said gunmen in Nigeria kidnapped at least two foreign oil workers from a bus in a second day of attacks targeting such workers.

-cut-

The geopolitical worries overshadowed the weekly petroleum report from the United States on Wednesday, when the U.S. Energy Department said crude-oil inventories rose last week by 300,000 barrels to 347 million barrels, or roughly 5 percent above year-ago levels.

more

[Roland99]

34. CNN Breaking: Nigerian Pipeline Blast (explosion during repair of rupture)

Possibly 200 dead.

[UpInArms]

35. Explosion near Nigerian capital; hundreds feared dead: BBC

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4D87ACE1%2D5DB6%2D4A69%2DA464%2D06DE061121A8%7D&siteid=mktw

NEW YORK (MarketWatch) -- An oil pipeline has exploded near the Nigerian capital Lagos and up to 200 people are feared dead, according to news reports Friday.

Ruh-roh :hide:

[Roland99]

57. Markets ignore Nigerian blast (maybe because it wasn't pre-planned?)

;)



http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF0D9B129%2DE302%2D4D0D%2DB619%2DA6B3EF008B9A%7D&siteid=mktw&dist=

[ozymandius]

7. High Gas Prices Lead to U.S. Scooter Boom

NEW YORK - With gas prices above $3 a gallon, software engineer Daniel Fry has been commuting to work over the Brooklyn Bridge in a car pool of sorts. It's actually more like a convoy — of motor scooters.

"It's fun to ride in a group," said Fry, 28, who joins a group of riders for coffee early Friday mornings before commuting into Manhattan via scooter. "In a big mass of scooters people look out for you more."

Fry is part of a growing community of scooter enthusiasts in New York and across the country who are taking to the streets in record numbers with gas prices so high. Fry fills up the 1.5-gallon gas tank of his scooter for under $5.

"The funniest thing is pulling into a gas station behind an SUV and seeing them pay 75 bucks," he says.

more

[JNelson6563]

25. This is great!

I hope more and more folks go this route. Scooters and small cars. I just filled the tank on my '93 Honda Civic for about 22.00 the other day. I pulled in there was someone already there, filling their massive SUV. I filled up, went in and paid and as I was pulling away they were finally done. haha Sorry I didn't catch what their bill was but to be pumping gas that long, it had to be very painful.

Soon there will be a flood of used SUVs on the market.

Julie

[RawMaterials]

30. Maybe the used suv's could be turned into

children's playground equipment. sort of recycling ya know.

[JNelson6563]

33. Now that is a brilliant idea!!

Very good. :applause:

[UpInArms]

47. June Crude @ $72.90 bbl - June Unl Gas @ $2.205 gal - June NatGas @ $6.48

10:16 AM ET 5/12/06 JUNE CRUDE FALLS 42C TO $72.90/BRL IN EARLY NY TRADING

0:16 AM ET 5/12/06 JUNE UNLEADED GAS DOWN 1.46C, OR 0.7%, AT $2.205/GAL

10:16 AM ET 5/12/06 JUNE NATURAL GAS FALLS 16.9C, OR 2.5%, TO $6.48/MLN BTUS

[UpInArms]

72. June Crude closes @ $72.04 bbl - June NatGas @ $6.28 mln btus

2:57 PM ET 5/12/06 JUNE CRUDE CLOSES AT $72.04/BRL, UP $1.28 FOR THE DAY

2:57 PM ET 5/12/06 JUNE CRUDE ENDS THE WEEK UP 2.6%

2:57 PM ET 5/12/06 JUNE NATURAL GAS FALLS 36.9C TO END AT $6.28/MLN BTUS

2:57 PM ET 5/12/06 JUNE NATURAL GAS ENDS THE WEEK 7.3% LOWER

[ozymandius]

6. 30-Year Mortgage Rates Edge Down Slightly

WASHINGTON - Rates on 30-year mortgages edged down this week, the first decline after six straight increases, according to a nationwide survey.

Mortgage giant Freddie Mac reported Thursday that rates on 30-year fixed-rate mortgages averaged 6.58 percent, down from 6.59 percent last week, which had been the highest level in nearly four years.

It marked the first drop in 30-year rates after six consecutive weekly increases. Analysts attributed the decline to last week's unemployment report, which showed payrolls grew by just 138,000 in April.

That was the smallest monthly payroll gain in six months and eased fears in financial markets that the economy was growing so quickly that the Federal Reserve might keep raising interest rates through the summer.

more

[ozymandius]

8. Tokyo shares fall sharply on further yen rises

Tokyo shares fell sharply on Friday, after further rises in the yen against the dollar caused a broad decline among exporters.

The Nikkei 225 stock average fell 1.5 per cent to 16,601.78, its lowest finish in seven weeks. It has now fallen for four straight sessions, its longest losing streak since late October. The broader Topix fell 1.4 per cent to 1,688.18..

more

[Lydia Leftcoast]

69. $1=109.8 yen, according to the Japan Times

A little less than two weeks ago, it was at 117 to the dollar.

:wow:

British pound at 1 pound= $1.89! Before the drop started, it was at $1.72.

:scared:

[ozymandius]

9. Inflation Stirs Worry on Wall St.

Stock prices fell sharply and broadly yesterday as investors worried that rising oil prices would quicken the pace of inflation and force policy makers to raise interest rates further.

The abrupt drop, which was the largest since January, came after several days of modest but steady increases in the Dow Jones industrial average, which as recently as Wednesday was within 80 points of its record high. It also came a day after the Federal Reserve indicated that it was ambiguous about whether it would raise rates later this year.

-cut-

Though consumer prices excluding energy and food have risen only modestly thus far, investors and policy makers are increasingly concerned that higher gasoline and commodity prices coupled with faster economic growth will drive up inflation in the coming months.

-cut-

Mr. Paulsen said the signs of inflation coupled with a weaker dollar, which has fallen 8.3 percent against the euro so far this year, have introduced a new element of pessimism to the market.

http://www.nytimes.com/2006/05/12/business/12stox.html

[ozymandius]

10. UPDATE 1-Chinese imports slow, buoying April trade surplus

BEIJING, May 12 (Reuters) - China reported another big monthly trade surplus on Friday, adding weight to U.S. calls for a stronger yuan to help reduce imbalances in the global economy.

The surplus for April was $10.46 billion, down a touch from $11.2 billion in March but more than double the April 2005 figure of $4.6 billion, the customs administration said.

-cut-

"Judging from the trend, I think the full-year trade surplus will probably exceed $130 billion," said Song Guoqing, an economist at China Stock Exchange Executive Council, a think tank in Beijing.

He said a ruling on Wednesday by the U.S. Treasury that China was not deliberately holding down the yuan to gain an unfair trade advantage could help Washington achieve its aim. Beijing could have dug in its heels on the currency if the finding had gone the other way.

more

[UpInArms]

19. China reports higher than expected April surplus

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC80BD887%2DB5B1%2D471D%2DA1E1%2D4436A8858F68%7D&dist=newsfinder&symbol=&siteid=mktw

HONG KONG (MarketWatch) - China reported a trade surplus in April of $10.2 billion, a slight reduction from its trade surplus of $11.2 billion in March. In April, imports rose 15.3% from a year earlier to $66.49 billion, while exports grew 23.9% to $76.95 billion.

[ozymandius]

11. Mittal Steel gets US clearance for Arcelor bid

AMSTERDAM: Mittal Steel, the world's largest steelmaker, said on Friday it has obtained US antitrust clearance for its bid to acquire rival Arcelor.

"The (US) Department of Justice has not issued a request for additional information and documentary material ... in connection with the transaction," Mittal said in a statement.

http://economictimes.indiatimes.com/articleshow/1527134.cms

very short...

[ozymandius]

12. $70-billion tax cut goes to Bush

WASHINGTON -- The U.S. Senate gave final approval Thursday to an election-year package of tax cuts worth $70 billion over five years. The measure extends lower rates for investors and also save billions for families with above-average incomes.

The Senate passed the bill by a 54-44 vote, clearing it for President George W. Bush's signature. Michigan senators Carl Levin and Debbie Stabenow, both Democrats, voted against the bill.

The legislation provides a 2-year extension of the reduced 15% tax rate for capital gains and dividends, currently set to expire at the end of 2008.

It also will extend for one year recent changes to the alternative minimum tax -- originally aimed at making sure wealthy people pay at least some taxes -- to prevent it from hitting more upper middle-income families.

http://www.freep.com/apps/pbcs.dll/article?AID=/20060512/NEWS07/605120451/1009

[ozymandius]

13. Delta Pays Heavily for Restructuring

ATLANTA, May 11 - ­ Delta Air Lines Inc., the nation’s third-largest carrier, said in a regulatory filing Thursday that it expected a first-quarter loss of $2.1 billion, almost all of it because of bankruptcy restructuring costs.

In a regulatory filing, Delta said yesterday that excluding the cost of restructuring, losses for the quarter would be $356 million.

Another example of the company’s staggering restructuring costs: It said it would will post a $1.6 billion loss during March alone, but all but $6 million of those losses are from restructuring fees and one-time charges.

-cut-

Delta has lost more than $14 billion since January 2001.

http://www.nytimes.com/2006/05/11/business/12delta-wire.html

[ozymandius]

14. Delphi to pay $60M in new exec bonus plan

Bankrupt auto parts maker, which is demanding 40% pay cut from union workers, unveils plan to pay 14,000 managers bonuses; top execs already expected to see another $36M.

NEW YORK (CNNMoney.com) - Bankrupt auto parts maker Delphi is seeking permission to pay about $60 million in bonuses to its white-collar employees, at the same time it is trying to cut the pay of its union-represented workers by about 40 percent.

The request for performance bonuses to its 14,000 salaried staff was disclosed Wednesday in the middle of a three-day bankruptcy court hearing set to conclude Thursday.

The company is in court seeking to get authority from bankruptcy judge Robert Drain to dump its contracts covering 33,000 unionized workers, saying those labor costs are not competitive. The unions are challenging that motion and threaten to strike if their contracts are voided. A strike could be a crippling blow to the prospects for embattled automaker General Motors (Research), which is already in negotiations with the unions and Delphi to find an agreement at its former parts unit.

http://money.cnn.com/2006/05/11/news/companies/delphi_bonuses/index.htm

[TAPat]

15. AAARRRRGGGGHHHHH!!!!!

Thanks, I feel a little better now...

[AnneD]

55. Morning Marketeers,

:donut: and lurkers. I think this article sums up what is wrong with American business management today. Seems like the management is the highest expenditure-not the workers.

We have good news, Tom DeLay's last day in office will be June 9th, so we are ready to do the happy dance. Ronnie wont give up, Delay will still have a day or two in court.

But the best thing going on today and this week end is the art car parade. They are at out school now and they are amazing. Texas and California are the 2 hot spot for this. Cars (cheap and beat up) are decorated in in a whimsical fashion. The kids totally lose it (the ice cream truck response). We love our art cars---proving that this is one place in Texas that doesn't take its self too seriously.

http://www.artcars.com/

Happy hunting and watch out for the bears.

[UpInArms]

64. House Panel to hold heariang on CEO pay on May 25

1:33 PM ET 5/12/06 HOUSE PANEL TO HOLD HEARING ON CEO PAY ON MAY 25

???

[UpInArms]

16. daily dollar watch

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

Last trade 83.80 Change -0.45 (-0.53%)

Disappointing Retail Sales Sends Dollar Bulls towards the Exit

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Disappointing_Retail_Sales_Sends_Dollar_1147382609231.html

The US dollar continues to sell-off as traders wonder when the weakness will come to an end. The original hope was that retail sales would come in strongly to help the dollar stage a much needed relief rally. This is what European and Asian traders were positioning for as they bought dollars throughout the earlier trading sessions. However once the market saw that consumers did not increase their spending as fast as they did the previous month, they sent the dollar tumbling because they realize that the ramifications for weaker spending are huge. First, it indicates that higher gas prices are really hitting the pocketbooks of consumers. With spending rising only 0.5 percent at a time when job growth is slowing, the possibility for it to hurt even more in the months to come are huge. Consumer spending always plays a major role in growth and if data continues to disappoint, the Fed has the support it needs to take a break from raising rates. At this point, 1.30 in the EUR/USD is simply an arm’s length away. We expect traders to try to test that level especially if the trade figure comes in wider than expected tomorrow. Expectations are not far from January’s all-time high in the deficit. With the market accentuating the negative and minimizing the positive, even if the trade deficit comes in ever so slightly wider than expectations, traders will shoot for 1.30 in the EUR/USD. On the other hand, we would probably need to see a deficit better than -$62B to see a meaningful dollar rally. Meanwhile oil prices are on the rise again, breaking above $73 following fresh geopolitical risks in Nigeria. The pressure on the dollar is based upon real risks these days and not hysteria which means that it can fall even further. At this point, we would need to hear a piece of extremely good news in order to relieve some of the bearish dollar sentiment.

...more...

Tomorrow's Economic Releases: Will Trade Balance Add To Dollar Woes

http://www.dailyfx.com/story/calendar/key_events/Tomorrow_s_Economic_Releases__Will_Trade_1147380750959.html

US Trade Balance (MAR) (12:30 GMT; 08:30 EST)

Consensus: -$67.0B

Previous: -$65.7B

Outlook: The trade shortfall in the world’s largest economy is expected to broaden once again in March as the prices of imported raw materials rebounds from February easing and Chinese production resumes. The market consensus for a $67 billion deficit would make the imbalance the third largest on record and is particularly distressing for growth forecasts considering the prolonged deficit in the local government’s budget. Imports likely picked up pace in March, following February’s contraction, as Chinese firms crank up factory output after the lunar New Year celebration. According to a Chinese customs bureau, China’s surplus with the US rose 39% in March. Commodity prices, especially those of energy, are also going to be a factor in the growing imbalance. Energy prices, led by crude oil, rebounded heartily in March as geopolitical tension and supply concerns encouraged bidding. Also playing no little part in the return to growing deficit figures will be the demand at home. Consumer sentiment hit a four-year high in March, stoking spending habits, which will undoubtedly translate to greater purchases of foreign products. With the Fed growing increasingly neutral over its interest rate concerns, focus in the currency markets will begin to make the shift to the next most concerning economic data series the US has to offer - and that just happens to be the US Trade Balance.

Previous: February’s trade balance fell from the record $68.59 billion shortfall set the month before as the deficit with China improved and demand for foreign goods waned over concerns of higher costs. For the month, imports fell 2.3% while exports lost 1.3% of value to trim the overall deficit 4% to $65.7 billion. Despite the easing in both component figures, each stood at their second highest levels ever. US demand for imports was driven both by tastes and a corresponding decline in Chinese production activity. American consumers restrained their purchases of foreign goods in February as fears of recent energy prices left shoppers hesitant to part with their earnings. Imports of autos dropped 5.8% while those of aircraft dropped 24%. Watch was most noticeable to many however in amongst the trade data was the lowest deficit with China in nearly a year. The US shortfall with China fell to $13.8B, the slightest level since March of 2005 as the country’s factories closed for the New Year holiday. Overall, the market’s tone on February’s surprising rate of contraction is that it is just temporary. With indicators already supporting a rebound in the deficit, economists and analysts alike took the release with a grain of salt.

...more...

[54anickel]

50. Dollar's failed rally shows strength of downturn

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2006-05-11T194633Z_01_N11288195_RTRUKOC_0_US-MARKETS-FOREX-DOLLAR.xml

NEW YORK (Reuters) - If anything underscores the depth of negative sentiment toward the dollar right now, the currency's broad-based and steep slide on Thursday is it.

Having been battered in recent weeks, the dollar had two potential opportunities on Wednesday to pull itself up off the ropes and stage a short-covering, corrective rebound.

First, the Federal Reserve's statement accompanying its widely expected decision to raise interest rates to 5 percent left the door open for further hikes. This was slightly more hawkish than many observers had anticipated.

Second, an eagerly anticipated U.S. Treasury report on currency practices stopped just short of naming China a currency manipulator. On the margins, this appeared to relieve some of the protectionist sentiment weighing on the dollar.

Yet the dollar's respite lasted a matter of hours, the rebound was extremely shallow, and the subsequent selling Thursday was as intense as anything seen in recent weeks.

more...

Ya know what's really worrisome, is that even the chart watching guys were expecting a bit of a recovery for the buck. Things are really messed up - nothing seems to be on script anymore.

http://www.kitco.com/ind/Stinson/may102006.html

[UpInArms]

52. "The US dollar is in a virtual free-fall"

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BD3012CC3%2D60D2%2D4525%2DA370%2D83ECCEF9DD7D%7D&symbol=

NEW YORK (MarketWatch) -- The dollar continued its slide Friday, hitting new one-year lows versus European currencies and an eight-month low versus the yen, after narrower-than-expected U.S. trade deficit data failed to reverse the broadly bearish sentiment in the market.

The greenback staged a brief rally after a report showed the nation's trade deficit narrowed to $62.0 billion in March, the lowest since last August. Economists surveyed by MarketWatch had expected the deficit to widen to $66.9 billion.

"The U.S. trade deficit for March was smaller than expected and while there are positive GDP implications, the implications for the dollar are minor," said Marc Chandler, currency strategist at Brown Brothers Harriman. The dollar rally was "brief and shallow. The short-term market is keen to sell into dollar upticks. Sentiment remains extremely poor."

<snip>

On the week, the U.S. currency gave up nearly 3% against the yen and 1.6% against the euro.

"The US dollar is in a virtual free-fall," said BBH's Chandler.

...more...

[UpInArms]

17. June Gold Futures @ $729.50 oz

7:37 AM ET 5/12/06 JUNE GOLD FUTURES UP $8 AT $729.50/OUNCE IN ELECTRONIC TRADE

[UpInArms]

20. Gold rally continues as dollar falls

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BB8141657%2D0724%2D41FD%2D8707%2D76BF14969927%7D&symbol=

NEW YORK (MarketWatch) -- Gold futures climbed above $730 an ounce for the first time in almost 26 years and platinum struck a record above $1,330 an ounce Friday as another sharp dollar decline ahead of March trade data fed the rally in metals.

Gold for June delivery was last up $8.60 at $730.10 an ounce, after earlier rising to $732, its highest level since 1980. At that level, the contract is on course for a 7% gain for the week, fueled by continued strong fund buying.

The Federal Reserve's statement on Wednesday may have deflated the equity market but it hasn't braked the momentum in metals, said Edward Meir, analyst at Man Financial.

"At this point, rising interest rates in the U.S. do not seem to be denting economic growth much," he said. "We think the weakness could become more apparent early next year, when rising interest rates begin to have more bite. But for now, there is no noticeable slowdown in growth, allowing the commodity bulls more or less free reign."

The dollar contributed to Friday's gains as it fell sharply on expectations of yet another widening of the U.S. trade gap. Economists polled by MarketWatch are expecting the gap to come in at $66.9 billion after $65.7 billion in February.

...more...

[stop the bleeding]

21. Do I hear 8, 8, 8, 8 hundred. 9, 9, 9, 9 hundred - this is unreal

lets see how long until $1000

[JNelson6563]

26. Much joy in Mudville

:party:

[54anickel]

80. What the Price of Gold is Telling Us (Ron Paul)

http://www.house.gov/paul/congrec/congrec2006/cr042506.htm

snip>

The special nature of the dollar as the reserve currency of the world has allowed this game to last longer than it would have otherwise. But the fact that gold has gone from $252 per ounce to over $600 means there is concern about the future of the dollar. The higher the price for gold, the greater the concern for the dollar. Instead of dwelling on the dollar price of gold, we should be talking about the depreciation of the dollar. In 1934 a dollar was worth 1/20th of an ounce of gold; $20 bought an ounce of gold. Today a dollar is worth 1/600th of an ounce of gold, meaning it takes $600 to buy one ounce of gold.

The number of dollars created by the Federal Reserve, and through the fractional reserve banking system, is crucial in determining how the market assesses the relationship of the dollar and gold. Though there’s a strong correlation, it’s not instantaneous or perfectly predictable. There are many variables to consider, but in the long term the dollar price of gold represents past inflation of the money supply. Equally important, it represents the anticipation of how much new money will be created in the future. This introduces the factor of trust and confidence in our monetary authorities and our politicians. And these days the American people are casting a vote of “no confidence” in this regard, and for good reasons.

The incentive for central bankers to create new money out of thin air is twofold. One is to practice central economic planning through the manipulation of interest rates. The second is to monetize the escalating federal debt politicians create and thrive on.

Today no one in Washington believes for a minute that runaway deficits are going to be curtailed. In March alone, the federal government created an historic $85 billion deficit. The current supplemental bill going through Congress has grown from $92 billion to over $106 billion, and everyone knows it will not draw President Bush’s first veto. Most knowledgeable people therefore assume that inflation of the money supply is not only going to continue, but accelerate. This anticipation, plus the fact that many new dollars have been created over the past 15 years that have not yet been fully discounted, guarantees the further depreciation of the dollar in terms of gold.

There’s no single measurement that reveals what the Fed has done in the recent past or tells us exactly what it’s about to do in the future. Forget about the lip service given to transparency by new Fed Chairman Bernanke. Not only is this administration one of the most secretive across the board in our history, the current Fed firmly supports denying the most important measurement of current monetary policy to Congress, the financial community, and the American public. Because of a lack of interest and poor understanding of monetary policy, Congress has expressed essentially no concern about the significant change in reporting statistics on the money supply.

more...

[UpInArms]

38. June Gold @ $722.50 oz - July Silver @ $14.63 oz - July Copper @ $3.852 lb

9:44 AM ET 5/12/06 JUNE GOLD CLIMBS $1 TO $722.50/OZ AFTER $728 HIGH

9:44 AM ET 5/12/06 JULY SILVER FALLS 30.5C, OR 2%, TO $14.63/OZ

9:44 AM ET 5/12/06 JULY COPPER DOWN 7.1C TO $3.852/LB

[UpInArms]

58. June Gold @ $717.80 oz - July Silver @ $14.41 oz

11:03 AM ET 5/12/06 JUNE GOLD FALLS $3.70 TO $717.80/OZ IN LATE MORNING DEALINGS

11:03 AM ET 5/12/06 JULY SILVER DROPS 52.5C, OR 3.5%, TO $14.41/OZ

[UpInArms]

66. June Gold closes @ $711.80 - July Silver @ $14.235 - July Copper @ $3.864

1:53 PM ET 5/12/06 JUNE GOLD CLOSES AT $711.80/OZ, DOWN $8.20 FOR THE DAY

1:53 PM ET 5/12/06 JUNE GOLD FINISHES THE WEEK $27.50/OZ, OR 4% HIGHER

1:48 PM ET 5/12/06 JULY SILVER CLOSES AT $14.235/OZ, DOWN 70C FOR THE DAY

1:48 PM ET 5/12/06 JULY SILVER CLOSES WITH A 2.5% GAIN FOR THE WEEK

1:42 PM ET 5/12/06 JULY COPPER CLOSES AT $3.864/LB, DOWN 5.9C FOR THE DAY

1:42 PM ET 5/12/06 JULY COPPER ENDS THE WEEK 10.6% HIGHER

1:42 PM ET 5/12/06 JULY PLATINUM UP $22.90 AT A RECORD $1,318.50/OZ

[UpInArms]

18. Ex-Qwest CEO Balked at NSA Records Sweep

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

excerpt:

The newspaper said Qwest balked at the request — and pressure — from the NSA, with Nacchio reportedly "deeply troubled" by the implications. Current CEO Richard Notebaert halted talks with the NSA in 2004 after the two couldn't agree on the details.

<snip>

The telecom companies would have had to balance the NSA request with Federal Communications Commission rules that bar unauthorized releases of customer information, said Bruce Henoch, a communications attorney with Shulman and Rogers in Rockville, Md.

"If you are a company that releases improperly, you open yourself up to lawsuits from customers, FCC filings," he said. "When people make phone calls and trust records to telecom companies, they trust they will be kept private unless there's a legal request to turn them over.

"The question turns on whether this is a legal request the companies should have complied with," Henoch said.

Sen. Ken Salazar, D-Colo., praised Qwest for its decision.

"I think that's what telephone companies ought to do," Salazar said. Sen. Wayne Allard (news, bio, voting record), R-Colo., said he doesn't support domestic eavesdropping.

...more...

[UpInArms]

24. Here come the spinners!

8:16 AM ET 5/12/06 63% APPROVE OF PHONE-CALL TRACKING: WASHPOST-ABC POLL

What the hell did they ask these people and what options did they give for the answers?

Q: Do you approve of tapping bin Laden's friends phones?

a: Yes, he deserves to die
b: No, I want him to live in my house

[54anickel]

45. PHFFTTT, ACK, clean coffee from monitor....Good one UIA. I take B!!!

:spray:

[UpInArms]

49. I seems that OBL has been the one that is least threatened by

this mal-administration' actions. He is free to make lovely videos in flowing robes that get to be aired just days (it was on Friday, before the Tuesday elections of Nov 2004) and he looked so very regal. :grr:

Maybe I have just become to cynical - but it does appear that the "terra terra terra" alerts only work for this mal-administration.

They have not made us safer - just look at NYC and NOLA for a couple of examples - FEMA in shambles and where was NORAD on 9/11???

Dimson saying "they hate us for our freedoms" as he rips up our Constitution and Bill of Rights. No. I think Dimson hates us for our freedoms. I recall he said "there ought to be limits to freedom" in November 1999.

[TrogL]

71. He'd make an interesting house-guest

for some definition of "interesting".

[UpInArms]

22. Debts-R-Us Report: Steeply higher mortgages and school loans squeeze U.S.

Debts-R-Us
Report: Steeply higher mortgages and school loans squeeze U.S. households

http://www.marketwatch.com/News/Story/L5b2XhRC8KWLg4K9SZn46g?siteid=mktw&dist=TNMostMailed

SAN FRANCISCO (MarketWatch) -- Americans' debt levels are rising, but not because we can't resist charging the latest plasma television to our credit card, according to a new report.

Instead, consumers' debt burden jumped higher in recent years because wages grew slowly even as costs increased on items that most of us don't consider frivolous, such as mortgages, health insurance and college tuition, according to a study by the Center for American Progress, a liberal think-tank, in Washington, D.C.

Middle-income families felt squeezed more than most, devoting a median 20% of their income to debt payments in 2004 - even at a time of low interest rates -- up from 18% in 2001. U.S. households overall spent a median 18.3% of income on debt payments in 2004, up from 16.9% in 2001, according to the report, which is based largely on data from the Federal Reserve Board's Survey of Consumer Finances.

And more families entered the group of seriously indebted: 13.7% of households faced debt payments greater than 40% percent of their income in 2004, up from 12.8% in 2001.
Looking at households' overall debt load, Americans' debt rose to a median 108% of income in 2004, up from 78% of income in 2001, with middle-income people facing the steepest rise, to a median 114% of income from 80% in 2001, according to the report.

"The middle-class squeeze stagnant income growth in the face of very sharp price increases for big-ticket items such as homes and education," said Christian Weller, author of the report and a senior economist with the Center for American Progress.

...more...

[UpInArms]

31. Treasuries prices slip after U.S. import prices

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-12T123651Z_01_NYG000220_RTRIDST_0_MARKETS-BONDS-UPDATE-1-URGENT.XML

NEW YORK, May 12 (Reuters) - U.S. Treasury debt prices slipped on Friday after higher-than-expected U.S. April import prices hinted at rising inflation pressures.

Benchmark 10-year notes <US10YT=RR> fell 5/32 in price for a yield of 5.17 percent, from 5.15 percent just before the report and versus 5.16 percent late on Thursday. Bond yields and prices move inversely.

April import prices, a gauge of inflation pressures coming into the U.S. economy from abroad, rose 2.1 percent, above economists forecasts for a 1.1 percent rise.

[54anickel]

48. Treasurys hurt by surge in imported-goods prices

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BA0EA65B4%2D39E5%2D49D9%2D91AE%2D2BA9B9E1E9AB%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

NEW YORK (MarketWatch) - Long-term Treasury price losses mounted Friday morning, sending yields higher, after news that prices of imported goods surged last month, confounding expectations for a tame increase.

The fixed-income market carefully monitors indications of rises in inflation, which eat into the value of bonds.

snip>

The Labor Department said prices of imported goods rose 2.1% in April, more than double the 1% advance expected by economists polled by MarketWatch. Read full government report.

The increase was due largely to an 11.5% rise in imported petroleum. Prices were flat, excluding petroleum.
Action Economics noted that after the report, the yield curve steepened "as the combination of the uncomfortably firm import-price gains and the upgrade on first-quarter gross domestic product prospects -- from the drop in the trade deficit -- are taking a toll on the long end."

snip>

Action Economics said dollar weakness also is pressuring Treasury prices, given that traditionally foreign central banks' dollar holdings have been concentrated in Treasurys and there are signs that this is changing.

more...

[UpInArms]

54. SnowJob opens hole and crap falls out

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-12T142520Z_01_N12378088_RTRIDST_0_ECONOMY-TREASURY-SNOW.XML

WASHINGTON, May 12 (Reuters) - Low tax rates help businesses thrive and produce strong revenues for the government, Treasury Secretary John Snow said on Friday.

"You write the checks to the government, and those checks get bigger when you have a good year," Snow said in comments prepared for delivery to the U.S. Chamber of Commerce.

When businesses are taxed less, they grow more and pay more taxes, Snow said.

Snow's remarks were aimed at critics who say Congress should scale back tax breaks for investors to help trim the budget deficit, which narrowed to $318 billion in the 2005 fiscal year but is projected to grow in 2006.

...more...

[TrogL]

79. He's been taking lessons from Dubya

Am I the only person who thinks he's talking complete nonsense?

[UpInArms]

32. pre-opening blather

09:15 am : S&P futures vs fair value: -2.3. Nasdaq futures vs fair value: -8.0.

09:00 am : S&P futures vs fair value: -2.7. Nasdaq futures vs fair value: -8.5. Stage remains set for stocks to open on a downbeat note as pre-market trading is also taking a bearish cue from continued weakness in Treasuries. The yield on the 10-year note (-10/32) back at 4-year highs around 5.17% should continue to pressure rate-sensitive areas like financials and utilities while small-cap companies typically dependent on borrowing could again outpace blue chips to the downside today.

08:30 am : S&P futures vs fair value: -0.7. Nasdaq futures vs fair value: -9.0. Still shaping up to be a lower start for the indices as futures indications continue to trade below fair value. Just hitting the wires, the Commerce Dept. reports that the U.S. trade deficit narrowed to a smaller than expected $62 bln (consensus -$67.0 bln), improving the dollar somewhat against the euro and yen but so far not enough to have much of an impact on stocks.

08:00 am : S&P futures vs fair value: -3.2. Nasdaq futures vs fair value: -12.0. Futures versus fair value suggests that follow-through consolidation in the wake of yesterday's broad-based selling efforts, especially in tech, will continue to weigh on stocks at the onset of trading. Exacerbated concerns that another surge in commodity prices will translate into higher inflationary pressures is again taking a toll on early sentiment while speculation that a report at 8:30 ET will show the third largest ever trade deficit is also keeping buyers on the sidelines.

[ozymandius]

36. Markets are open for giving you the bidness.

9:33
Dow 11,469.44 -31.29 (-0.27%)
Nasdaq 2,258.65 -14.04 (-0.62%)
S&P 500 1,301.99 -3.93 (-0.30%)
10-Yr Bond 51.78 +0.23 (+0.45%)
NYSE Volume 64,615,000
Nasdaq Volume 95,121,000

[UpInArms]

40. 9:59 EST Markets rebounding after Sentiment Falls (?)

Dow 11,482.56 -18.17 (-0.16%)
Nasdaq 2,263.23 -9.47 (-0.42%)
S&P 500 1,303.43 -2.49 (-0.19%)
10-Yr Bond 5.176 +0.21 (+0.41%)

NYSE Volume 297,373,000
Nasdaq Volume 371,700,000

updating blather on edit:

10:00 am : Equtiies bounce off session lows as investors digest the latest update on market sentiment. Within the last few minutes, the University of Michigan's preliminary read on Consumer Sentiment checked in at 79.0, well below the 86.0 consensus. Even though there isn't as a strong a correlation between consumer sentiment and consumer spending as some might imagine, the bulls appear to be searching for any reason they can to get the stock rally back on track, especially in the wake of yesterday's sell-off.DJ30 -5.98 NASDAQ -8.69 SP500 -1.03 NASDAQ Dec/Adv/Vol 2013/546/386 mln NYSE Dec/Adv/Vol 1999/638/218 mln

09:40 am : Market kicks off the last day of the week where it left off yesterday, trading lower. Despite the U.S. Trade Deficit unexpectedly narrowing for a second straight month to $62 bln, the dollar continues its slide to multi-month lows against the euro and yen. Even though a modestly weak dollar is actually good for U.S. equities since it increases demand for U.S. products and increases the value in dollars of overseas profits for U.S. companies, the market is back to focusing more on greenback weakness making dollar-denominated commodities more attractive, as record highs in gold, copper and silver continue to heighten inflation worries. DJ30 -28.73 NASDAQ -18.31 SP500 -4.93 NASDAQ Vol 152 mln NYSE Vol 76 mln

[Roland99]

42. Less confidence...less inflationary pressure?

[UpInArms]

43. but they deny that the Consumer sentiment affects their actual

spending - so now why would they attempt to use that number to justify a return of the bulls?

Even though there isn't as a strong a correlation between consumer sentiment and consumer spending as some might imagine

[Roland99]

46. Nothing makes sense at this point. Ends justify the means?

Trouble is, they only see the short-term end, not the long-term effects.

[ozymandius]

53. I say it's evidence of a short attention span.

The attention span of that author cannot see past the 24hr news cycle. At best, this attention span's affliction limits it to the quarterly market cycle.

[UpInArms]

37. Stocks open lower as inflation, rate jitters persist

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B93AD8BA7%2DCC9C%2D408C%2D8BC7%2D4DD7B54967F7%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- U.S. stocks opened lower Friday as the latest data on import prices did little to ease concerns about inflation, while a rise in bond yields only served to underline the market's glum outlook on interest rates. A surprise narrowing in the U.S. trade deficit offered some consolation. The Dow Jones Industrial Average ($INDU ) fell 29 points to 11,472. The Nasdaq Composite Index ($COMPQ ) dropped 12 points to 2,261 while the S&P 500 Index ($SPX ) was off 3 points at 1,303.

edited for early morning shiny coin headbump

:hi: Ozy!

[54anickel]

44. Weapons Of Mass Destruction (Willie)

http://www.321gold.com/editorials/willie/willie051206.html

No, not in a military sense, but financial. They are many, and the United States is in firm possession of most of them. We have the corner on this market, a monopoly sort of. Japan has its own Asian corner on this market, only because they have been US lackeys for so long. Space is limited to list them all, but the major weapons which have succeeded in gutting the USEconomy can certainly be cited. Let this article serve as a collage of images, each powerful in its own way. The story lines are brief, since the pictures each tell a thousand words. The United States has put itself in a predicament with over three decades of serious dedication to monetary inflation as a means to wealth accumulation. In the process, real workers have suffered as the Manhattan Made Men have pilfered riches from their corrupt close connections to the Ruling Elite. They have had access to the gold riches in Fort Knox, access to the keys of the printing press kingdom. If money can be printed, then only those who are privileged to borrow it easily can benefit. The hit & run artists in the financial world can actually benefit. But the run of the mill participant typically get the short end of the stick, ones who live with the drip drip drip of accumulating debt burdens. Those who worked their entire lives, saved a gob of money, invested in bonds, are now getting screwed. Bond speculators control the whole game, and have left the public to eat the holes in the doughnuts.

Now we find ourselves in a jam, with labor uncompetitive in its wage, with our commodity deposits (energy & minerals) mostly depleted, with our dependence on foreigners staggering & overwhelming (commodities & capital), with our legitimate wealth engines (manufacturing) largely vanished, with bizarre retail shopping centers the recognized foundation to our commerce (pathological), with reliance upon assets bubbles our chosen way of economic life, with constant raids on our home equity deemed normal. An entire generation of economic counselors has preached heretical principles, strayed from proven principles that have stood the test of time, and adopted absurd mythologies which spring up in order to justify the reckless path they have led us toward. To say the current system is unfixable is an under-statement. All measures toward cure would be met with instant political obstructions. We are so lost. The bread crumbs have long washed away from all the years of liquidity spilling onto our paths.

My country has to resort to coercion, bullying, fraudulent accounting, deceptive statistics, double talk communication, now pre-emptive attacks with flawed intelligence in order to protect itself, or is it to supply itself? We have morphed into a nation of pathetic financial drug addicts, hollowed to the core. Our weapons of mass destruction have set the stage for our own annihilation. Darwinism will be hard at work to cull from the Economic Landscape all those not worthy of natural selection. Some mistakenly believe (surely USGovt leaders) that silent Darwin pickers select the biggest and strongest. Wrong!!! Darwin invisible search committees select for survival all those capable of adapting to a changing environment of our own making. Can we survive our own devices?

big snip>

THE FUTURE PETRO CURRENCY

The other North American dollar bears respect. They do talk funny up there, eh? They don't need gold in their government vaults. They have oil in the fields and metals in the ground. That is all the necessary collateral required to fortify a currency, for at least another decade or two. Their western provinces are abuzz with economic development, eh? The Canadian Dollar is the only worthy petro-currency. Next on the table will be the Russian ruble. Gee whizzakers, that is a powerful looking looney chart, eh?


Bwahahahaha - Putin may have had a point yesterday!!!

more...

[UpInArms]

59. House Appropriations Chairman Is Facing Federal Investigation

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/11/AR2006051101881.html?referrer=email

The Justice Department has begun investigating the activities of Rep. Jerry Lewis (R-Calif.), chairman of the House Appropriations Committee, focusing in part on his dealings with a lobbying firm that hired some of his former staff members, sources familiar with the inquiry said.

One source, who spoke on the condition of anonymity because of the sensitivity of the investigation, said subpoenas have been issued by the U.S. Attorney's Office in Los Angeles.

<snip>

The Lewis inquiry is at least tangentially connected to an ongoing congressional bribery case centered in San Diego and Washington, one source said. In that case, former representative Randy "Duke" Cunningham (R-Calif.) admitted he had accepted $2.4 million in bribes. Brent Wilkes, a San Diego defense contractor, is under investigation for allegedly bribing Cunningham.

Cunningham, a longtime colleague of Lewis's and, like him, a member of the Appropriations Committee, pleaded guilty and resigned in November. He was sentenced to more than eight years in prison. Wilkes has been identified as a co-conspirator in that case but has not been charged. Another contractor, Mitchell J. Wade, of Washington, pleaded guilty early this year for his role in bribing Cunningham.

...more...

[UpInArms]

60. Taser delays quarterly filings, discloses expense errors

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B21058538%2D773E%2D4462%2D8D9F%2DD6D876F5E18D%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Taser International Inc. (TASR 9.44, -0.70, -6.9% ) shares were down 7.2% at $9.41 in early trade Friday after the company delayed the filing of its latest quarterly report, citing errors in its calculation of indirect manufacturing expense applied to inventory. The stun-gun maker also said there was a formulaic spreadsheet error in its fourth-quarter calculations. Taser said adjustments were required to correct the cumulative impact both in the first quarter of 2006 and in the relevant prior periods, which will be disclosed in its first-quarter results.

I wonder if these are the expenses in question?

More than just a lack of thorough study, law enforcement support for the weapons may have something to do with economics. On January 11, Taser International’s president Tom Smith admitted to USA Today that New York police officers were offered stock options from the company in exchange for helping to oversee Taser’s police department training program. Additionally, Smith said that Taser paid cash to at least 283 police officers to serve as Taser trainers. The company also gave stock options to a medical examiner who works for Taser and has published at least one safety study about the weapon in a scientific journal.

[ozymandius]

61. 11:57 - still with a throbbing headache

Dow 11,453.19 -47.54 (-0.41%)
Nasdaq 2,253.07 -19.63 (-0.86%)
S&P 500 1,298.29 -7.63 (-0.58%)
10-Yr Bond 51.86 +0.31 (+0.60%)
NYSE Volume 1,124,856,000
Nasdaq Volume 1,137,803,000

11:30 am : Indices are off their worst levels of the day but continue to sport losses across the board. After hitting an intraday 52-week high yesterday, Alcoa (AA 34.67 -1.35) is off 3.8% to lead the list of losers on the Dow. Losses of more than 1.0% from Caterpillar (CAT 78.61 -1.01), United Technologies (UTX 64.87 -0.95) and ExxonMobil (XOM 62.63 -0.83) -- three of this year's best performing components, are also consolidating and pushing the price-weighted index farther away from all-time highs. DJ30 -42.50 NASDAQ -18.69 SP500 -7.13 NASDAQ Dec/Adv/Vol 2209/645/1.01 bln NYSE Dec/Adv/Vol 2361/684/726 mln

11:00 am : So much for yesterday's drubbing creating a sense that the market is oversold on a short-term basis. With the Nasdaq now down another 1.0%, as semiconductor reverses course, it appears yesterday's move may reflect a shift in underlying sentiment. To wit, even as investors finally get some relief on the commodity price front, as metals like gold and silver relinquish recent gains that have heightened inflation worries, a subsequent pullback in the Materials sector to the tune of 2.0% exacerbates the lack of leadership that has kept buyers on the sidelines this morning.DJ30 -61.12 NASDAQ -25.58 SOX -0.5% SP500 -8.31 NASDAQ Dec/Adv/Vol 2242/545/858 mln NYSE Dec/Adv/Vol 2323/652/586 mln

[Roland99]

62. 12:55pm EDT - Now it's a migraine

DJIA 11,404.60 -96.13 -0.84%
Nasdaq 2,245.90 -26.80 -1.18%
S&P 500 1,293.50 -12.42 -0.95%
Dow Util 399.66 -4.54 -1.12%
NYSE 8,417.57 -109.17 -1.28%
AMEX 1,984.58 -28.26 -1.40%
Russell 2000 743.63 -13.84 -1.83%
Semcond 492.85 -2.65 -0.53%
Gold future 716.10 -5.40 -0.75%
30-Year Bond 5.30% +0.07 +1.36%
10-Year Bond 5.18% +0.03 +0.52%

[JNelson6563]

65. 1:36 Update

Gettin' kind of bloody...

Symbol Last Change
Dow 11,417.01 -83.72 (0.73%)
Nasdaq 2,249.60 -23.10 (1.02%)
S&P 500 1,295.36 -10.56 (0.81%)
10-Yr Bond 5.188% +0.33

10 yr. yields up .33?? Ouch.

Julie

[UpInArms]

67. Webster City, Iowa Takes Hit With Electrolux Layoffs

http://www.kcci.com/money/9205701/detail.html

DES MOINES, Iowa -- The shock of Maytag's plant closing in Newton is setting in for more than 1,800 workers.

One day after learning the Newton plant will be closing its doors for good, workers have started making plans for the future.

Just 100 miles northwest in Webster City, workers got news about layoffs two months ago -- 700 people will lose their jobs next year with the town's largest employer, Electrolux.

<snip>

Electrolux workers found out that 700 of the 2,000 people at the Webster City facility would be laid off over the next year and a half. In a town of 8,000, that's nearly 10 percent of its population.

...more...

[wordpix]

74. too bad, these people make a great product. I love my Electrolux, first

one I had was a hand-me-down from my mother-in-law ca. 1950's and it lasted 40 yrs. This one is ca. 1990, still going strong. I think I had one small repair on it for about $30.

[54anickel]

77. The new ones aren't as good. They merged with Eureka - the new

Electroluxes paretty much suck, and not in the good way you would think of when thinking vacuum cleaner.

[UpInArms]

68. It's a miracle!

http://news.yahoo.com/news?tmpl=story&cid=573&e=12&u=/nm/20060512/od_nm/wheelchair_dc

LOS ANGELES (Reuters) - A wheelchair-bound Los Angeles woman, who has repeatedly filed lawsuits over access for the disabled, got up and ran after police arrested her for fraud, authorities said on Thursday.

Laura Lee Medley, 35, had sued in at least four California cities over injuries she claimed she sustained while trying to navigate her wheelchair before she was suspected of fraud.

Medley, who claimed to be paralyzed from a drunk driving accident, was tracked to Las Vegas where police there took her into custody and then, when she complained of medical issues, to a local hospital, Long Beach prosecutor Belinda Mayes said.

"She gets to the hospital and while she's waiting for an examination, she gets up from the chair and runs," Mayes said. "Somebody remarked, 'That's where the great miracle occurred.'"

Medley sprinted through the hospital corridors but was quickly apprehended by police and booked pending extradition to San Bernardino, southern California, where she is facing charges of filing false documents, attempted grand theft and insurance fraud.

...more...

[UpInArms]

70. 2:59 EST Whoopsie! Triple Digit Loss on the DOW for 2nd day?

Dow 11,391.23 -109.50 (-0.95%)
Nasdaq 2,248.08 -24.61 (-1.08%)
S&P 500 1,293.40 -12.52 (-0.96%)
10-Yr Bond 5.186 +0.31 (+0.60%)

NYSE Volume 1,990,925,000
Nasdaq Volume 1,859,766,000

2:30 pm : Market recovers some ground over the last 30 minutes but not nearly enough to make a significant change in the standings. To wit, the Dow is still on pace to snap a five-week winning streak while the Nasdaq, should it close at current levels, will be down 3.8% for the week after erasing nearly half of its year-to-date gain. The S&P 500 is positioned to turn in its worst performance since the week ended October 7th when the market found an excuse to consolidate market gains following cautionary Fed speak about inflation.DJ30 -72.51 NASDAQ -19.57 SP500 -9.23 NASDAQ Dec/Adv/Vol 2186/802/1.74 bln NYSE Dec/Adv/Vol 2470/738/1.34 bln

2:00 pm : Little changed since the last update as the major averages continue to vacillate in roughly the same ranges. Energy and Materials -- the year's two best performing sectors -- continue to get hit the hardest, posting losses of more than 2.0%. Industrials and Utilities are shedding at least 1.0% on the day while Tech (-0.43%), despite exhibiting weakness across every industry group, is holding up rather well all things considered, as only Health Care (-0.13%), amid renewed enthusiasm for HMOs and PBMs, is among the best of today's worst. DJ30 -92.61 NASDAQ -24.11 SP500 -11.23 NASDAQ Dec/Adv/Vol 2268/708/1.63 bln NYSE Dec/Adv/Vol 2524/653/1.24 bln

[TrogL]

73. Loonie Watch

Highlights

Current:



30-day and 90-day:



Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.H06&v=s

Current TSE



Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2006-04-12 Wednesday, April 12 0.871156 USD
2006-04-13 Thursday, April 13 0.868508 USD
2006-04-14 Friday, April 14 0.868583 USD
2006-04-17 Monday, April 17 0.87321 USD
2006-04-18 Tuesday, April 18 0.87558 USD
2006-04-19 Wednesday, April 19 0.87974 USD
2006-04-20 Thursday, April 20 0.878272 USD
2006-04-21 Friday, April 21 0.879353 USD
2006-04-24 Monday, April 24 0.879275 USD
2006-04-25 Tuesday, April 25 0.883626 USD
2006-04-26 Wednesday, April 26 0.887233 USD
2006-04-27 Thursday, April 27 0.890076 USD
2006-04-28 Friday, April 28 0.892618 USD
2006-05-01 Monday, May 1 0.898473 USD
2006-05-02 Tuesday, May 2 0.903424 USD
2006-05-03 Wednesday, May 3 0.903179 USD
2006-05-04 Thursday, May 4 0.903669 USD
2006-05-05 Friday, May 5 0.903261 USD
2006-05-08 Monday, May 8 0.899604 USD
2006-05-09 Tuesday, May 9 0.907276 USD
2006-05-10 Wednesday, May 10 0.908678 USD
2006-05-11 Thursday, May 11 0.910001 USD
2006-05-12 Friday, May 12 0.90212 USD




Current values

Last trade 0.9023 Change -0.0068 (-0.75%)
Previous Close 0.9091 Open 0.9094
Low 0.9018 High 0.9105


Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)
The June Canadian Dollar was steady overnight and is working on a possible inside day as it consolidates some of this spring’s rally. The daily ADX (a trend-following indicator) is neutral to bullish hinting that a short-term top might be in or is near. Closes below the 10-day moving average crossing at .9054 would signal that a short-term top has been posted. Overnight action sets the stage or a mostly steady opening in early-day session trading.


Analysis

I'm so depressed.

The loonie closed above 91 cents yesterday but today it's losing ground.

But that's not the really depressing part.

If you look at the graphs on the main website (see below), it's been steadily losing ground against all currencies except the greenback.

[bullimiami]

75. they are damn lucky this didnt start until thursday.

it will give the weekend time to cool it off.

[girl gone mad]

76. I'm not sure that it's just psychological.

Inflation denial is fading and interest rates will have to rise.

[54anickel]

78. Must be Miller time

Dow 11,380.99 -119.74 (-1.04%)
Nasdaq 2,243.78 -28.92 (-1.27%)
S&P 500 1,291.24 -14.68 (-1.12%)
10-yr Bond 51.86 +0.31 (+0.60%)
30-yr Bond 52.98 +0.71 (+1.36%)
NYSE Volume 2,575,120,000
Nasdaq Volume 2,339,172,000



Advances & Declines
NYSE Nasdaq
Advances 663 (19%) 740 (23%)
Declines 2584 (76%) 2295 (72%)
Unchanged 131 (3%) 126 (3%)

--------------------------------------------------------------------------------

Up Vol* 462 (17%) 427 (18%)
Down Vol* 2099 (81%) 1898 (81%)
Unch. Vol* 15 (0%) 15 (0%)

--------------------------------------------------------------------------------

New Hi's 35 72
New Lo's 199 129



4:20 pm : Stocks tumbled for a second straight day as realization that interest rates are still going higher, perhaps much higher than what has been priced into the market so far, prompted broad-based consolidation which closed all three major averages down at least 1.0%. The absence of any notable leadership, as all ten economic sectors finished in negative territory, and above average volume to the downside lending even more conviction behind another dismal performance, kept buyers sidelined heading into the weekend.

Before the bell, investors found some comfort after the U.S. Trade Deficit unexpectedly narrowed for a second straight month in March to $62 bln. However, realizing that such a decline will leave an upward revision to Q1 GDP growth -- a red flag for inflation hawks -- and additional data that showed the largest jump in import prices since September, which will weigh heavily on the April Trade Deficit, continued to underpin a sense of nervousness throughout the Treasury market. As a result, stocks again took a bearish cue from rising interest rates and traded in sympathy with further deterioration in bonds which lifted the yield on the 10-yr note to another 4-year high (5.18%).

With no notable earnings reports on the docket and over 90% of the S&P 500 having already reported Q1 results, investors also turned their attention to further weakness in the dollar -- a concern that we're not buying into as a presumed bearish factor for the market. After all, a modestly weak dollar is actually good for U.S. equities since it increases demand for U.S. products and increases the value in dollars of overseas profits for U.S. companies. Nevertheless, the recent damage done on the commodity price front due in part to a weaker greenback making dollar-denominated assets like gold and oil more attractive, continued to act as an overhang even though crude prices fell 1.7% and gold lost 1.2%. In fact, modest consolidation throughout commodities merely prompted investors to lock in profits from this year's two best performing sectors. Energy and Materials plunged 2.9% and 2.1%, respectively. To wit, Alcoa (AA 34.79 -1.23) was the worst performing Dow component Friday with ExxonMobil (XOM 62.20 -1.26), ranking third on the price-weighted index with a 2.0% pullback, also contributed to the Dow snapping a five-week winning streak.

Speaking of Industrials, the sector has been the third best performer in 2006 and, as one might deduce from all of this year's leaders getting hit the hardest Friday, turned in the day's third worst performance. Caterpillar (CAT 77.81 -1.81), United Technologies (UTX 64.87 -0.95), and Honeywell (HON 42.91 -0.63) -- all recently at 52-week highs -- were also influential Dow components that weighed on blue chips throughout the session.

On a positive note, chip maker Analog Devices (ADI 36.03 +1.35) beat estimates by three cents and issued upside guidance, which plays into our Overweight rating on Technology; however, follow-through consolidation throughout the influential sector also took a toll on investors asking themselves if they should in fact "sell in May and go away." BTK -1.1% DJ30 -119.74 DJTA -2.1% DJUA -1.0% DOT -1.0% NASDAQ -28.92 NQ100 -1.3% R2K -2.0% SOX -0.8% SP400 -1.8% SP500 -14.68 XOI -2.2% NASDAQ Dec/Adv/Vol 2295/740/2.32 bln NYSE Dec/Adv/Vol 2583/663/1.85 bln

3:30 pm : Not much changed for stocks with only half hour left to go as selling remains widespread across most areas. Energy continues to lead the way lower, led by weakness in Explorers (-3.1%), Drillers (-3.0%) and Services (-2.6%), but the Materials sector, a close second to Energy's 2.4% decline with a 1.9% pullback, accounts for the day's top three worst performing industry groups: Aluminum (-3.35), Gold (-3.3%) and Steel (-3.1%). DJ30 -99.49 NASDAQ -23.14 SP500 -11.81 NASDAQ Dec/Adv/Vol 2237/766/1.99 bln NYSE Dec/Adv/Vol 2551/672/1.56 bln

3:00 pm : Market continues to build on yesterday's losses as the blue chip indices are almost matching the Nasdaq's 1.1% intraday decline. General Motors (GM 25.84 +0.03), which was up more than 3.0% earlier and helped offset some of the losses among the majority of components, has continued to weaken heading into the close and is a reason why the Dow is now at fresh session lows (-0.9%). DJ30 -105.42 NASDAQ -24.52 SP500 -12.35 NASDAQ Dec/Adv/Vol 2191/799/1.87 bln NYSE Dec/Adv/Vol 2489/738/1.45 bln



Come Monday, It'll be alright
Come Monday, they'll be climbing new heights
DOW's spent two lowly days in a 3-digit blaze
Guess the market has been over priced.

[ozymandius]

81. And to think that the Dow was down by a mere 47 points when I left.

Thanks 54anickel for posting the end to this sordid tale. I wonder if the PPT took the day off for Mother's Day weekend.

[54anickel]

82. No problem Ozy. Always like to catch those closing numbers for

historical purposes. Comes in handy sometimes when researching back.

Wonder where we'll go from here? P/Es still seem a bit rich, we should still be in that secular bear market. Guess we'll just have to wait and see.

Found this article today - trying to figure out the same thing:

http://www.freemarketnews.com/Analysis/46/4863/2006-05-11.asp?wid=46&nid=4863
IT'S VALUE TIME AGAIN

snip>

Markets, at least historically, have always gone from high valuations to low valuations and back to high valuations. These long-term cycles average about 13 years, with a short cycle of 8 years and a long cycle of 17. Each cycle has bull and bear markets (in terms of price) within them, and the market moves can be quite volatile.

To date, there has never been a market cycle that stopped halfway and then completely reversed. We have not seen a period where we were at high valuations and stopped at some mid-point on the way down and then rose back to a new valuation high. Ultimately, we have always ended up with low valuations that became a springboard for the next bull market.

But right now, it looks like things could be different, at least to listen to many commentators. It is a new era, we are told, and guys like me just don't get it. Well, maybe.

Why is this important? Because valuations are the primary driver of stock market profits! 80% of the last bull market came from the valuation multiple rising by 8 times! We went from a P/E (price to earnings) of 8 in 1982 to well over 40 in early 2000. Throw in some increased profits and inflation, and you have the largest bull market in history, not to mention a bubble.

snip>

The problem is that the average overrun of the trend in a secular bear market is 50%, which is why stocks get so undervalued. By that, I mean stock market valuations do not stop at the trend. They tend to drop much lower. For the bulls to be right, we would have to see something that has never happened before. Stocks would need to drop to values 25% higher than the long-term historical average and no further.

Which is about where we are today.

This puts into perspective all the debate about valuations, and why so many suggest valuations are "fair" today. And indeed, as we will see, if you look in the right places, you can find numbers which kind of, maybe, support the case. So, let's go to the numbers and see what we find.

more...

[AnneD]

83. Do you think...

we ever really recovered from the the down turn in 2000-2001. The numbers are so screwed with it is hard to tell. I can only judge from my puny little perspective. The infamous gestalt theory of economics. It just doesn't feel like we've recovered. I am doing ok, but I have to do a job and a part-time job to do it. Some of it is personal situation-but I am convinced much is due to the economy and the changes to the tax law.

[54anickel]

84. No, I don't believe we fully recovered, nor do I believe the down

turn of 2000-2001 was allowed to complete the normal cleansing that a down turn usually does. Greenspin kept blowin' bubbles to avoid the cleansing. I think there will be one hell of a price to pay for that. It's just a matter of when.