STOCK MARKET WATCH, Wednesday 12 July

[ozymandius]

Wednesday July 12, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 924 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2027 DAYS
WHERE'S OSAMA BIN-LADEN? 1727 DAYS
DAYS SINCE ENRON COLLAPSE = 1688
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 6
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 July 12, 2006

Dow... 11,134.77 +31.22 (+0.28%)
Nasdaq... 2,128.86 +11.93 (+0.56%)
S&P 500... 1,272.52 +5.18 (+0.41%)
Gold future... 643.10 +17.00 (+2.64%)
30-Year Bond 5.14% -0.03 (-0.56%)
10-Yr Bond... 5.10% -0.03 (-0.58%)






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 Ike Iossif - WEEKLY CHARTS

SUMMARY

Both the McClellan Oscillators and the Quantifiers suggest that last week's action ought not to be interpreted too bearishly, unless there is a clear close below support. Moreover, the current pattern indicates that the two most possible scenarios going forward are the two shown below. Notice that in either case we ought to get another attempt to the upside before a bearish or bullish resolution takes place. Is it possible for the markets to go straight down from here? EVERYTHING IS POSSIBLE, but at this point such action is not very probable. Thus, for the time being we are looking for a rally towards the highs of last week, and we'll re-evaluate once the markets get there. Also please read Market Timing.

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

[ozymandius]

2. Today's Reports

8:30 AM Trade Balance May
Briefing Forecast -$64.0B
Market Expects -$65.0B
Prior -$63.4B

10:30 AM Crude Inventories 07/07
Prior -2421K

[UpInArms]

16. U.S. trade deficit widens to $63.8 billion in May

8:30 AM ET 7/12/06 U.S. MAY IMPORTED PETROLEUM RECORD 433 MLN BARRELS

8:30 AM ET 7/12/06 U.S. TRADE DEFICIT UP 12.8% YEAR-TO-DATE

8:30 AM ET 7/12/06 U.S. MAY EXPORTS LED BY RECORD SALES OF CAPITAL GOODS

8:30 AM ET 7/12/06 U.S. MAY IMPORTED PETROLEUM RECORD $27.9 BILLION

8:30 AM ET 7/12/06 U.S. MAY NON-PETROLEUM DEFICIT LOWEST SINCE AUGUST

8:30 AM ET 7/12/06 U.S. MAY IMPORTS RISE 1.8% ON PETROLEUM

8:30 AM ET 7/12/06 U.S. MAY EXPORTS RISE 2.4%, MOST SINCE DEC. 2004

8:30 AM ET 7/12/06 U.S. MAY TRADE DEFICIT $63.8 BLN VS. $64.7 BLN EXPECTED

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4E25FFAF%2D502B%2D41E2%2D83BC%2D29F18CECC61F%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - The U.S. trade deficit widened by 0.8% in May to $63.8 billion as both imports and exports set monthly records, the Commerce Department said Wednesday. Reflecting a growing global economy, exports increased 2.4% to $118.7 billion, the biggest percentage gain since December 2004. Higher crude oil prices and strong demand for energy helped to push up imports by 1.8% to $182.5 billion. The non-petroleum deficit fell to $43.2 billion, its lowest level in nine months. Economists expected the deficit to widen to $64.7 billion. The deficit in April was revised insignificantly to $63.3 billion. In the first five months of the year, the deficit is up 12.8% to $317.9 billion.

[UpInArms]

24. more info and details:

http://www.marketwatch.com/News/Story/3MFf7FZl2q9hxDpDPRDlbWp?siteid=mktw&dist=morenews

excerpt:

Petroleum

The dollar value of imported petroleum increased by 17% to a record $27.9 billion in May. The quantity of energy-related petroleum imports rose by 10.5% to a record 433.4 million barrels.

The nation imported an average of 10.5 million barrels of crude oil a day in May. The average price rose by $4.92 to a record $61.74 per barrel. It was the largest monthly price increase since September 1990.

With the surge in oil imports, the United States ran record deficits with the OPEC nations and with Mexico.

Imports from China increased 4.1% to $22.3 billion, while exports to China rose 4.6% to $4.5 billion. Exports to China are growing twice as fast as imports through the first five months of the year. However, the deficit with China has totaled $82.1 billion so far, up from $72.5 billion this time last year.

<snip>

Exports of industrial supplies increased 3.4% to $23 billion, led by a 50% increase in precious metals.

Exports of foods and feeds increased 7.4% to $5.6 billion, led by a 46% gain in soybeans.

Exports of consumer goods rose 5.1% to $10.6 billion, led by gem diamonds and drugs.
Auto exports fell 1.4% to $8.7 billion.

...more...

[Roland99]

28. A "surge in oil imports", eh? I see * is helping cure our addiction to oil

:eyes:

[UpInArms]

39. DOE Petroleum Inventories Report:

10:31 AM ET 7/12/06 U.S. CRUDE SUPPLY DOWN 6MLN BRLS LAST WEEK: ENERGY DEPT.

10:31 AM ET 7/12/06 U.S. DISTILLATE SUPPLY UP 2.6 MLN BRLS: ENERGY DEPT.

10:31 AM ET 7/12/06 U.S. GASOLINE SUPPLY DOWN 400,000 BRLS: ENERGY DEPT.

10:31 AM ET 7/12/06 AUGUST CRUDE CLIMBS 49 CENTS TO $74.65/BRL ON SUPPLY DROP

edited to add:

BULLETIN>> CRUDE-OIL-INVENTORY DECLINE IS TRIPLE THE PREDICTED DRAWDOWN

[UpInArms]

41. API Petroleum Inventories Report:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC6F96A73%2D1CCA%2D4C82%2D88C1%2DC9BFA9DA64EA%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute said crude supplies fell 3 million barrels for the week ended July 7 -- half the decline reported by the Energy Department. Motor gasoline inventories were up 1.4 million barrels, contrary to the government's reported 400,000-barrel fall. Distillate stocks rose 4.3 million barrels, the API said, compared with the Energy Department's reported 2.6 million-barrel increase.

[ozymandius]

3. Oil holds over $74 as Iran resists West pressure

SINGAPORE (Reuters) - Oil stood firm at above $74 a barrel on Wednesday as the market's focus shifted from Iran's recalcitrance on its nuclear program to an expected draw in U.S. gasoline stocks after holiday drivers took to the roads.

U.S. crude futures climbed 9 cents to $74.25 a barrel by 0648 GMT, adding to Tuesday's 55-cent rise, but were still shy of last week's all-time high of $75.78 a barrel. London Brent gained 8 cents to $73.75.

Prices rallied on Tuesday after Iran reiterated its refusal to back down from producing nuclear fuel and defied calls for an early response to an offer of incentives from Western nations meant to end the months-long standoff, which traders fear could disrupt crude supplies from OPEC's second-largest producer.

-cut-

Last week, data showed demand in the previous month was up 1.4 percent on the same time last year. The U.S. consumes more than 40 percent of the world's gasoline, and changes in demand for the motor fuel can make a big impact on oil markets.

more

[ozymandius]

4. IEA sees oil supply growth exceeding demand in '07

LONDON (Reuters) - World oil demand will grow more quickly in 2007 than this year despite high prices, but rising output from producers outside OPEC will ease the strain on supply, the International Energy Agency (IEA) said on Wednesday.

Global demand in 2007 will rise by 1.57 million barrels per day, the adviser to 26 industrialized countries said in a report. That is up from 1.21 million bpd this year, an estimate trimmed by 30,000 bpd from last month's report.

The outlook points to an easing of the burden on members of OPEC as supply from rival producers rebounds next year to grow more quickly than global demand. A strain on supplies has powered oil's climb to record highs this year.

-cut-

Non-OPEC supply will increase next year by 1.7 million bpd, up from growth of 1.1 million bpd in 2006 and no expansion in 2005, the IEA said.

more

[Ghost Dog]

30. A lot of this extra supply is supposed to be out of West Africa.

US Oil and other commercial interests are planning to set up Commercial HQ & a safe place for employees' families (+ the more usual R&R) (+ an internet interchange/monitoring node (NAP-Terremark)) on the island of Tenerife in the (Spanish) Canary Islands, off the coast of Morrocan-occupied Sáhara.

Local money-oriented Canary Islands politicians, already famous for their corruption in relation to the pouring of concrete in order to construct & urbanize everywhere, are just creaming themselves right now looking forward to the Jeb Bush-related commissions they're going to pocket. And screw the people. Uh Huh. Of course, local resistance is waking up.

ed. If you read Spanish, start here: http://canarias.indymedia.org/index.php

[ozymandius]

5. Marathon joins ethanol plant venture

Marathon Oil Corp. on Monday announced it was entering into a joint venture to build and operate ethanol plants, a testament to the growing importance of the corn-based fuel for the refining industry.

The announcement of the venture with an Ohio grain processing company makes Marathon the first major oil refiner to announce construction of an ethanol plant, said Tom Kloza, an analyst with Oil Price Information Service.

Despite working mostly with petroleum, Marathon is no stranger to ethanol. Last year, the company blended 550 million gallons of the biofuel into batches of reformulated gasoline with 10 percent ethanol, known as E10, as well as making E85, which is 85 percent ethanol, Marathon spokeswoman Linda Casey said.

"We expect that as more markets start blending the 10 percent ethanol, we expect our demand to increase to close to a billion gallons," Casey said.

http://www.chron.com/disp/story.mpl/headline/biz/4038191.html

[4dsc]

26. Ethanol is not a cure-all for U.S. energy woes

http://www.msnbc.msn.com/id/13806142/

Ethanol is far from a cure-all for the nation's energy problems. It's not as environmentally friendly as some supporters claim and would supply only 12 percent of U.S. motoring fuel — even if every acre of corn were used.

A number of researchers, the latest in a report Monday, are warning about exaggerated expectations that ethanol could dramatically change America's dependence on foreign oil by shifting motorists away from gasoline.

[UpInArms]

37. August Crude @ $74.40 bbl - NatGas @ $5.77 mln btus

10:06 AM ET 7/12/06 AUGUST CRUDE UP 24 CENTS AT $74.40/BRL AHEAD OF SUPPLY DATA

10:06 AM ET 7/12/06 AUGUST NATURAL GAS UP 13.7 CENTS AT $5.77/MLN BTUS

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB1262101%2D8C09%2D40AC%2D96A1%2DFB7746575E21%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- August crude was up 19 cents at $74.35 a barrel Wednesday morning, ahead of updates on U.S. petroleum supplies from the Energy Department and American Petroleum Institute. Most analysts expect a decline in crude supplies for the week ended July 7, but estimates for gasoline inventories are mixed for that week, which includes usage over Independence Day weekend. August natural gas was up 12.7 cents at $5.76 per million British thermal units.

[UpInArms]

55. Crude futures move higher on Iran news development (@ $74.50 bbl)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B0C8D2904%2D8EB5%2D46C1%2DA590%2DDABF69DE7D22%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- August crude was up 34 cents at $74.50 a barrel Wednesday afternoon. World powers agreed to send Iran back to the United Nation's Security Council for possible punishment over its disputed nuclear program, according to the Associated Press. Crude prices traded as low as $73.80 a barrel earlier in the session as traders digested the Energy Department's reported 6 million-barrel drop in last week's crude supplies, a minor decline in gasoline supplies and declines in crude imports and refinery utilization rates.

[UpInArms]

66. Crude climbs, ends a nickel short of $75-a-barrel level (@ $74.95 bbl)

2:55 PM ET 7/12/06 AUGUST CRUDE CLOSES AT $74.95/BRL, UP 79 CENTS, OR 1.1%

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF883A2A8%2D546D%2D4B75%2DA9B4%2DB3E851EE25C1%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- August crude rose 79 cents to close at $74.95 a barrel, below the session's intraday high of $75.05. The possibility of sanctions against Iran and violence in Lebanon were the key focus for the oil market following a mixed response to the latest U.S. petroleum-supply data. August natural gas was up 14.9 cents to close at $5.782 per million British thermal units, ahead of an Energy Department update on supplies due Thursday.

[ozymandius]

6. Exporters lead drop in Tokyo stocks

Tokyo stocks fell on Wednesday led by losses among exporters concerned overseas earnings may be eroded by the yen's strengthening to a near one-month high at Y114 to the US dollar.

The Nikkei 225 index lost 1.5 per cent to 15,249.32 while the broader Topix index fell 1.4 per cent to 1,563.69.

Investors were cautious ahead of a meeting of the Bank of Japan on Friday at which it is widely expected to raise interest rates for the first time in six years, analysts said.

more

[ozymandius]

7. Europe extends early gains

European equity markets extended its early gains by mid-morning on Wednesday after a late rally overnight on Wall Street but high oil prices continue to weigh on investor sentiment. Corporate news flow was set to be relatively light.

The FTSE Eurofirst 300 rose 11.2 points or 0.9 per cent to 1,320.27 while the Xetra Dax added 66.02 points or 1.2 per cent to 5,682.06 and the French CAC40 gained 49.7 points or 1 per cent to 4,964.13.

Spread betting companies in London were calling for the FTSE 100, German Dax and French CAC40 to open between 33 and 67 points higher.

more

[ozymandius]

8. EU's Kroes says Microsoft was far from compliance (huge fine)

BRUSSELS, July 12 (Reuters) - European Union Competition Commissioner Neelie Kroes said on Wednesday that Microsoft (MSFT.O: Quote, Profile, Research) did not come close to complying with a landmark 2004 antitrust ruling, justifying an additional fine.

Justifying the EU regulator's decision to impose a further 280.5 million euro ($357.3 million) fine for non-compliance with its ruling, Kroes told a news conference she was convinced Microsoft had known what it had to do to comply.

short blurb

[Ghost Dog]

33. This is about MS hiding details of how its Windows OS works

at low-levels (proprietary code & special functions), making it difficult for competing Applications (not OS - Applications) developers to provide the same or better functionality as MS itself - eg in spreadsheets, wordprocessors, media recorders/players, etc.

It's unfair competition and abuse of monopoly.

[ozymandius]

9. Small Gains as Earnings Season Gets Off to Rough Start

Stocks recouped earlier losses to end modestly higher yesterday as investors set aside concern over an uneasy start to the second-quarter earnings season, which included weak results from Alcoa and a sales warning at Lucent Technologies.

With no economic data scheduled, the market focused on the impact of higher interest rates and energy costs on corporate profits. Disappointments from Alcoa and Lucent dragged the major indexes sharply lower before they rebounded late in the session — a sign that uncertain investors lacked information to drive stocks in one direction.

“When the question is how much economic growth is going to slow, people are going to wait and see how profit reports come in before they make new commitments,” said Susan Malley of Malley Associates Capital Management. “We’re continuing to put money into the market, but not racing. In certain areas, we want to get as much information as we possibly can.”


http://www.nytimes.com/2006/07/12/business/12stox.html

[burf]

15. Good morning.

What is all this concern with the earnings outlook? Weren't we told just yesterday that strong earnings was one of the reasons for the "huge" decrease in the budget deficit? They wouldn't lie to us now would they?

I enjoy your posts. Keep up the good work!

[UpInArms]

17. g'morning and welcome to DU, burf!

Glad to have you here with us!

:hi:

[ozymandius]

10. China carmaker to build in U.S.

DETROIT -- Can the mystique of a British sports car be recreated by a Chinese company in America's heartland?

That's the bet by Nanjing Automobile Group, which plans to resurrect the fabled MG Marque in a tri-continental demonstration of how truly globalized the automotive industry has become.

Nanjing, which purchased the assets of the bankrupt MG Rover Group last year, aims to be the first Chinese carmaker to open a factory in the United States. The company has scheduled a news conference for today in Oklahoma to announce plans to build a newly designed MG TF Coupe there starting in 2008. It said the coupe would compete with cars like the Mazda Miata, which sells for between $20,000 and $25,000.

-cut-

Several Chinese carmakers have said they are two to three years away from exporting vehicles to the United States. One, Geely Automobile, displayed a $10,000 sedan at this year's Detroit auto show, although the car fell short of American safety and emissions standards.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20060712/AUTO01/607120418/1148

[Ghost Dog]

34. Oh yeah. Hope they can economically build a first-class, efficient MG

... painted British Racing Green.

[UpInArms]

35. I wonder how those Okies in Ardmore will like working for the Commies?

China's Nanjing Auto to build MG cars in Oklahoma

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-12T134728Z_01_N12269507_RTRIDST_0_AUTOS-NANJING-URGENT.XML

DETROIT, July 12 (Reuters) - China's Nanjing Automobile Group, which took control of Britain's collapsed MG Rover last year, plans to build MG-brand cars in Oklahoma, state officials said on Wednesday.

Nanjing could be the first Chinese carmaker to assemble cars in the United States.

The company plans to locate its headquarters in Oklahoma City with assembly and distribution in Ardmore. Research and development would be in Norman at the University of Oklahoma.

They better be boning up on their Chinese!

[amandabeech]

48. How much water will the plant use?

There's not too much of that wet stuff around this year in Oklahoma, and with Global Warming, this year may not be so unusual.

[ozymandius]

11. UPDATE 1-GM CEO calls Renault-Nissan alliance 'interesting'

DETROIT, July 11 (Reuters) - General Motors Corp. Chief Executive Rick Wagoner said on Tuesday the proposed alliance between GM, Nissan Motor Co. Ltd. and Renault was an "interesting idea" that would get full consideration from GM leadership.

Wagoner, appointed last week by GM's board to lead consideration of the alliance, told business news channel CNBC in an interview broadcast live from Detroit that he looked forward to meeting Nissan-Renault Chief Executive Carlos Ghosn.

"It's an interesting idea," Wagoner told CNBC. "We look forward to sitting down with Carlos Ghosn soon.

-cut-

Under the terms of the proposed tie-up, Nissan and Renault could take a stake in GM as all three sides work to capture savings by sharing the costs of developing new products and buying components.

more

[UpInArms]

19. Delphi reports $2.4B loss for 2005

http://www.cnn.com/2006/BUSINESS/07/12/delphi.loss.ap/index.html?section=cnn_latest

DETROIT (AP) -- Delphi Corp., General Motors Corp.'s largest parts supplier, reported a $2.4 billion loss for 2005 in a delayed annual report filed Tuesday with the Securities and Exchange Commission.

The company, which filed for bankruptcy protection in October, blamed the loss of $4.21 per share on accounting charges, price pressures from a reduction in GM's North American vehicle production and increased costs for raw materials.

The red ink is an improvement over 2004, when the company had a net loss of $4.8 billion, or $8.59 per share. But the 2004 loss included a $4.7 billion tax write-off in the fourth quarter, the company said.

Revenue fell 6 percent to $26.9 billion, compared with $28.6 billion in 2004.

Delphi's annual report for 2005 and its first-quarter 2006 earnings were delayed as the company awaited the results of wage and benefit reduction talks with its unions and GM. The company has reported monthly losses to a New York bankruptcy court, but no 2005 annual figures had been released until Tuesday.

...more...

[UpInArms]

12. daily dollar watch

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

Last trade 85.74 Change +0.33 (+0.39%)

Tomorrow's Economic Releases: Trade Dominates The Docket

http://www.dailyfx.com/story/calendar/key_events/Tomorrow_s_Economic_Releases__Trade_Dominates_1152658808833.html

US Trade Balance (MAY) (12:30 GMT, 08:30 EST)

Consensus: -$64.8B
Previous: -$63.4B

Outlook: Analysts are predicting the trade deficit has grown to -$65 billion over May on increased local demand for foreign goods and stubbornly high energy prices. EUR/USD improved from 1.1921 at the beginning of March to 1.2811 at the end of May, but the drastic change in currency has failed to ease the dollar deficit substantially. A potential shrinking of the deficit with Canada - the US's largest trading partner – was most likely offset by increases from other foreign countries like China. May’s forecast is the same as the consensus prior to April’s report, and if many of the same elements were present at the time. If the shortfall in goods trade is better than expected, the burden on the dollar will be somewhat lifted as net foreign investment levels will not have to rebound that much further to fund the nation’s ailing trade profile.

Previous: The trade balance took another negative turn in April, hitting a $63.4 billion shortfall from $61.9 billion the month prior. This was smaller than the forecast of $65.00 billion unfavorable balance despite dollar strength against the euro and record prices for imported crude prices. This figure was prominently well short of the psychologically crucial $70 billion mark could be showing signs that the slowing gait of US economic expansion will temper American’s demand for foreign goods and further ease the ailing trade scenario now weighing on the dollar.

...more...

[UpInArms]

69. BoJ to hike short-term rates to 0.25% per year

3:27 PM ET 7/12/06 BOJ PLANS TO END ZERO-INTEREST RATE POLICY THURSDAY: NIKKEI

3:27 PM ET 7/12/06 BOJ PLANS TO HIKE SHORT-TERM RATES TO 0.25% PER YEAR: NIKKEI

Eeeekkk! Run!

[UpInArms]

13. US home loan demand rose slightly last week

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-12T110118Z_01_N12239047_RTRIDST_0_ECONOMY-MORTGAGES-UPDATE-1.XML

NEW YORK, July 12 (Reuters) - U.S. mortgage applications rose for a second consecutive week, driven by increased demand for home purchase loans as interest rates remained near a recent four-year high, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended July 7 increased 1.0 percent to 566.8 from the previous week's 561.0.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.81 percent, up 0.01 percentage point from the previous week. Interest rates were just 0.05 percentage point below a four-year high reached two weeks prior.

The MBA's seasonally adjusted purchase mortgage index, considered a timely gauge of U.S. home sales, rose 2.6 percent to 425.0. Even so, it stood well below its year-ago level of 489.0.

The group's seasonally adjusted index of refinancing applications decreased 1.6 percent to 1,400.5. A year earlier the index stood at 2,554.3.

The refinance share of applications fell to 34.0 percent from 35.0 percent the previous week.

...more...

[UpInArms]

14. Gold near 5-week high, safe-haven buying supports

http://today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-07-12T101534Z_01_L12706798_RTRUKOC_0_US-MARKETS-PRECIOUS.xml&src=rss

LONDON (Reuters) - Gold traded on Wednesday near five-week highs, supported by firm oil prices and nervousness following bomb attacks which killed more than 180 people in India's financial hub of Mumbai.

But there was no big rush to buy as the market digested the news, with focus now shifting to the currency and oil markets and U.S. data on international trade and consumer sentiment, due on Wednesday and Friday respectively.

"It was partly stimulated by the bomb attack in India, but it was also triggered by a good-looking technical picture in the market," Alexander Zumpfe, a metals trader at Germany's Heraeus Metallhandels-Gesellschaft mbH, said about the price surge.

"Actually there is no big change in sentiment," he said, adding that people would see price dips as buying opportunities.

Gold climbed to $643 an ounce on Tuesday, its highest since June 5, on investment buying after a series of bombs hit at least seven packed commuter trains during the rush hour in Mumbai.

...more...

[UpInArms]

36. Gold higher on global tensions (@ $652.80 oz)

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B98C04B76%2D9810%2D4B06%2D85D3%2D5EF9E8C8B2D9%7D&symbol=

NEW YORK (MarketWatch) - Gold futures rallied Wednesday, soaring to their highest level in more than a month, as instability in India, Iran and North Korea drove safe-haven demand.

Gold for August delivery was last up $9.80 at $652.80 an ounce on the New York Mercantile Exchange, having earlier risen to as high as $653.30, its highest level since May 30. On Tuesday, gold futures gained $17.

Other metals prices also posted gains. Silver added 12 cents at $11.670 an ounce, platinum rose $23.0 to $1,277.0 an ounce and palladium was up $2.10 to $331.10 an ounce. Copper added 10.20 cents at $3.7370 a pound.

Gold's rally has been fuelled by Tuesday's deadly bombings of rush-hour commuter trains in Mumbai as well as by the lack of a breakthrough in the west's attempts to stop North Korea and Iran from developing nuclear weapons.

The surge in gold prices that began yesterday was "an important springboard level for possible future gains," said Jon Nadler, an analyst at Kitco.com.

...more...

[UpInArms]

59. Gold rises on global political instability (@ $651.20 oz)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B14B7C2F4%2DC2DA%2D404B%2DB8AF%2DAB558D91AA96%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Gold futures closed higher Wednesday, as political instability in the Middle East, India and North Korea fuelled safe-haven demand. Gold for August delivery ended the session up $8.10 at $651.20 an ounce on the New York Mercantile Exchange, its highest level since May 30. Other metals prices also posted gains. Silver added 0.5 cents $11.555 an ounce, platinum rose $13.60 at $1,267.60 an ounce and palladium was up 95 cents at $329.95 an ounce. Copper added 3 cents at $3.6650 a pound.

[UpInArms]

18. Constellation to cut jobs on Vincor integration - M&A costs 236 jobs

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BA5F88A73%2D5A4E%2D4AE4%2DB3B1%2DAA1D5299DA01%7D&symbol=

SAN FRANCISCO (MarketWatch) -- Constellation Brands Inc. said Tuesday it will spend about $89 million and cut about 236 jobs to integrate Vincor International Inc. into its operations. The company also raised its fiscal 2007 earnings outlook.

The Fairport, N.Y -based producer and marketer of alcoholic beverages bought Vincor last month for $1.43 billion, $1.2 billion in cash and the balance in the assumption of debt.

Constellation (STZ : 25.05, +0.21, +0.8% ) plans to lay off around 10% of Vincor's 2,358 worldwide employees. The cuts will be made in countries where the company's operations are larger than Vincor's, such as the U.S., the U.K. and Australia, it added.

The company estimated restructuring charges and integration costs of $39 million pretax, of which $35 million will be recorded in fiscal 2007 and the remaining $4 million in fiscal 2008.

Additionally, Constellation will incur one-time cash costs of around $50 million related to severance charges associated with personnel reductions and contract termination costs.

...more...

[UpInArms]

20. Monster Worldwide says may restate results

http://today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-07-11T222447Z_01_WEN0906_RTRUKOC_0_US-SERVICES-MONSTER.xml&src=rss

SAN FRANCISCO (Reuters) - U.S. jobs recruiting site Monster Worldwide Inc. (MNST.O: Quote, Profile, Research) said on Tuesday that a preliminary review showed that it may need to restate financial results for 2005 and prior years to record additional non-cash charges for stock based compensation expense relating to various stock option grants.

Monster is one of more than 50 companies being investigated by U.S. securities regulators in connection with stock option grants.

The New York-based company said in a statement that it expects a potential restatement would not have a material impact on 2006 earnings.

Monster said it has not yet determined which historical financial statements would be restated, the magnitude of the restatement, or the tax impact that may result from its review of its stock options grant practices.

...more...

[UpInArms]

21. Bad Things Coming:Treasury Yields below fed funds may signal Fed overshoot

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=reutersEdge&storyID=2006-07-12T025725Z_01_N11598145_RTRUKOC_0_US-ECONOMY-MARKETS-YIELDS.xml

NEW YORK (Reuters) - A U.S. Treasury market rally that has driven bond yields below the key inter-bank overnight lending rate may be the strongest signal yet from the bond market that the Federal Reserve has gone too far in its campaign to raise interest rates.

Bond market rallies that leave long-term bond yields below short term interest rates, resulting in an inversion of the normal yield curve, have often preceded economic downturns historically.

But only four other times in the last quarter century has the majority of the U.S. Treasury yield curve, from 2-year notes to 30-year bonds, slipped below the federal funds rate, the main U.S. interbank overnight lending rate.

Each instance "preceded either a downturn in the economy, a major financial strain, or both," wrote Merrill Lynch's North American economist David Rosenberg in a research report on Monday.

Previous occasions included the late summer of 1998, when Russia defaulted on its debt and hedge fund Long Term Capital Management failed, and another example occurred in March of 2000 when technology stocks peaked before the 1990's stockmarket boom ended.

...more...

:scared:

[UpInArms]

22. Treasury prices remain lower after trade report

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD29361E2%2DF2DE%2D4AC0%2DB21C%2DD0381E96707C%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Treasury prices remained under pressure early Wednesday, sending yields higher, after a muted fixed-income market response to news that the trade gap widened to $63.8 billion in May. The figure was a bit below the $64.7 billion gap projected by economists polled by MarketWatch. Both imports and exports set monthly records in May, with imports driven up by high crude prices. Prices were already lower before the report, after having been pushed down earlier by selling in Europe. The benchmark 10-year Treasury note last was down 5/32 at 100 with a yield of 5.128%, up from 5.102% in late trade Tuesday.

[UpInArms]

31. Printing Press Hums: Fed adds reserves through overnight system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-12T133309Z_01_N12343192_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, July 12 (Reuters) - The Federal Reserve said on Wednesday that it added temporary reserves to the banking system through overnight system repurchase agreements.

Fed funds last traded at 5.25 percent, the Fed's target for the benchmark overnight lending rate.

For further details on the operation, see http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[OrangeCountyDemocrat]

42. This Time Is Different

Just because it's happened 4 times in the last 1/4 century, doesn't mean it will again.

This time is different. King george is in power. Things are wonderful. Things are GREAT! The economy is not only not in danger, it couldn't be better!!!

I mean, if things were any farther away from a recession, it would be ridiculous. I am getting tired of all these so-called "economists" using rational theories, and indicators which have proven correct over the past century, when making predictions about recessions.

The United States No Longer Has Recessions!! Not while there is a repub administration in power, and in control of congress. If you don't believe me, turn on CNBC during the day, or fox news, and they will tell you the truth.

<sarcasm off>

[UpInArms]

67. Treasurys throw off losses as stocks weaken

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B50E8B9EF%2D0FB4%2D4D8C%2D93F0%2D6CBE3BB5F2BD%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Long-term Treasury prices closed with soft gains Wednesday, with yields perching near their recent one-month highs, after morning bond sales ran their course when stocks sold off on complex international developments. The benchmark 10-year Treasury note closed 1/32 higher at 100-6/32 with a yield ($TNX : 51.00, +0.02, +0.0% ) of 5.101%. In recent sesssions, the market has trended higher on perception that the economy is slowing and that the Federal Reserve may pause in its two-year series of rate hikes soon. The fixed-income market also has benefited from weakness in equities, which Wednesday were heavily pressured after the U.S. blamed Iran and Syria for the capture of two Israeli soldiers.

[UpInArms]

23. 540 Layoffs planned at Opelika, Alabama Michelin/BFGoodrich tire plant

http://www.wtvm.com/Global/story.asp?S=5138969&nav=8fap

OPELIKA, Ala. Up to 40 percent of the work force at the Michelin/BFGoodrich tire factory in Opelika could be laid off by October this year, putting 540 people out of work.

The Opelika-Auburn News reports company officials told employees yesterday about the cuts, which were attributed to a shrinking but competitive tire market. The factory employs a total of 1-thousand 356 people.

...more...

[UpInArms]

25. pre-opening blather

09:15 am : S&P futures vs fair value: -0.8. Nasdaq futures vs fair value: -6.0.

09:00 am : S&P futures vs fair value: -0.4. Nasdaq futures vs fair value: -6.8. Early indications still point to a relatively flat open for the SnP 500, but the Nasdaq 100 futures continue to weaken. Microsoft (MSFT) has been a focal point of weakness after it was fined $357 mln by the EU for not complying with a previous antitrust ruling while Monster Worldwide (MNST) citing a potential earnings restatement and Fastenal (FAST) turning in the only earnings disappointment this morning offset a stronger than expected Q2 report from Genzyme (GENZ). Biotech will also be in focus after Genentech (DNA) posted a 79% rise in profits and raised full-year forecasts; but the stock is down 3.5% in pre-market trading amid disappointing Avastin sales.

08:32 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: -4.8. Still shaping up to be a sluggish start for the indices as futures indications have barely budged since the last update. Just hitting the wires, the Commerce Dept. reports that the U.S. trade deficit widened slightly in May to a smaller than expected $63.8 bln (consensus -$65.0 bln), improving the dollar somewhat against the euro and yen but so far not enough to have much of an impact on stocks. Bonds have also held steady but remain lower across the curve as traders consolidate four straight days of gains.

08:00 am : S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: -3.8. Futures versus fair value suggest a mixed open for stocks, as the absence of market-moving news underscores the lack of conviction on either side of the aisle. Speculation that a report at 8:30 ET will show the third largest ever trade deficit and oil prices climbing ahead of weekly inventory data may also be keeping buyers on the sidelines.

[Tace]

27. MOGAMBO GURU: "We Shall See Who Laughs Last, My Little Pretties!"

Richard Daughty, the angriest guy in economics -- World News Trust

It was truly cacophonous inside the Mogambo Fortified Bunker Of Pure Fear And Panic (MFBOPFAP), as alarm bells and buzzers and klaxons and horns were all making a hell of a din, adding to the piercing sound of my own screaming. Why? It was last week's $11.5 billion increase in Total Fed Credit by the Federal Reserve.

It was only a couple of months ago that Ben Bernanke, chairman of the Federal Reserve, confided to CNBC’s Maria Bartiromo that, “it’s worrisome that people would look at me as dovish and not necessarily an aggressive inflation-fighter.” Hahaha! Now we know why people look at him as dovish on inflation! $11.5 billion of brand-new credit in one week! Pure, excessive monetary inflation, which always precedes, and causes, price inflation!

And the unholy Fed is absolutely going bananas with accommodating the repo market. There were $24 billion in repos just last Thursday alone! And, for good measure, the Fed printed up another $5.3 billion in actual cash last week, enough for every man, woman and child in America to get $18 in cash.

And why are they doing this? Jim Willie CB of GoldenJackass.com explains, "The US Fed must get with the program and realize that they cannot fight inflation when that precisely is their reason for being. My disrespectful title for the U.S. Fed Chairman is the Secretary of Inflation. Cutting off price inflation is tantamount to cutting off the foundation legs of the U.S. Economy, namely the housing sector on the tangible side and the stock market on the financial side. Constant, even accelerating, credit supply is essential in order to maintain flat growth within the U.S. Economy."

I fall to my knees, and in my finest cinematic moment, dramatically raise one arm heavenward, and cry out with a voice dripping with anguish and outrage, saying, "This is the depths to which the Federal Reserve has sunk!"

more

http://worldnewstrust.org/modules/AMS/article.php?storyid=3888

[UpInArms]

29. OT: Bad Prose Award

http://cbs4boston.com/watercooler/watercooler_story_192112210.html

(AP) SAN FRANCISCO A retired mechanical designer with a penchant for poor prose took a tired detective novel scene and made it even worse, earning him top honors in San Jose State University's annual Bulwer-Lytton Fiction Contest for bad writing.

Jim Guigli of Carmichael submitted 64 entries into the contest. The judges were most impressed, or revolted perhaps, by his passage about a comely woman who walks into a detective's office.

"Detective Bart Lasiter was in his office studying the light from his one small window falling on his super burrito when the door swung open to reveal a woman whose body said you've had your last burrito for a while, whose face said angels did exist, and whose eyes said she could make you dig your own grave and lick the shovel clean," Guigli wrote.

"The judges were impressed by his appalling powers of invention," said Scott Rice, a professor in SJSU's Department of English and Comparative Literature. He has organized the bad writing contest since its inception in 1982.

...more...

[UpInArms]

32. 9:40 EST turning pink (updated blather)

Dow 11,123.65 -11.12 (-0.10%)
Nasdaq 2,121.27 -7.59 (-0.36%)
S&P 500 1,271.37 -1.15 (-0.09%)
10-Yr Bond 5.138 +0.38 (+0.75%)

NYSE Volume 101,647,000
Nasdaq Volume 104,400,000

09:40 am : Market opens with little fanfare as investors struggle to find much direction with the Q2 earnings season still in its early stages. The most notable name impacting today's trading is Genentech (DNA 81.85 -2.21), which posted a 79% rise in profits and raised its full-year EPS growth outlook last night; but disappointing Avastin sales have prompted a couple of analyst downgrades. Genzyme (GENZ 60.90 +2.92) and Gannett (GCI 56.76 -0.15) are among this morning's reporters out with better than expected results, but Fastenal (FAST 36.14 -2.41) missing analysts' expectations and Brunswick (BC 29.05 -2.78) slashing its FY06 EPS guidance underpins a sense of nervousness that could weigh on sentiment until investors get some clarity on earnings. DJ30 +3.84 NASDAQ -5.66 SP500 -0.35 NASDAQ Vol 88 mln NYSE Vol 64 mln

[UpInArms]

38. State Department Computers Hacked (by China's Government?)

http://www.topix.net/content/cbs/2025847891315821187016659678983176856701?threadid=36RN017R04QMKBF9

The State Department is recovering from large-scale computer break-ins worldwide over the past several weeks that appeared to target its headquarters and offices dealing with China and North Korea, The Associated Press has learned.

Investigators believe hackers stole sensitive U.S. information and passwords, said U.S. officials familiar with the hacking. Whoever did the hacking reportedly tried to leave so-called back doors so they could come back later and keep intruding into the computers, CBS News correspondent Jim Stewart reports.

Officials spoke on condition of anonymity because of the sensitivity of the widespread intrusions and the resulting investigation.

The breach involves only the State Department's unclassified computer system, reports CBS News' Charlie Wolfson. The department's classified system was not affected.

As a result of these break-ins, the State Department has had to severely limit Internet access at many locations. That, in turn, can have a detrimental effect on employees' ability to get their regular work done, says CBS News technology analyst Larry Magid. So even if nothing were stolen, damage has been done.

<snip>

China's government was considered by experts a chief suspect in computer break-ins at the Defense Department and other U.S. agencies disclosed last summer. But China also is home to a large number of insecure computers and networks that hackers in other countries could use to disguise their locations and launch attacks.

...more...

[UpInArms]

40. 10:33 EST numbers and blather

Dow 11,099.87 -34.90 (-0.31%)
Nasdaq 2,114.36 -14.50 (-0.68%)
S&P 500 1,268.76 -3.76 (-0.30%)
10-Yr Bond 5.132 +0.32 (+0.63%)

NYSE Volume 447,186,000
Nasdaq Volume 390,395,000

10:30 am : Major averages continue to languish at session lows as split industry leadership continues to dictate early action. Technology continues to be the biggest drag on sentiment, as the semiconductor group now outpaces software to the downside as traders lock in some of the PHLX Semi Sector Index's surprising 3.3% surge yesterday. Industrials has been another influential sector to the downside, as railroads succumb to more consolidation and offset paltry gains on Financials, Health Care and Consumer Staples. Even Energy has slipped into the red as oil prices are now relatively unchanged ahead of the EIA's inventory report, which will be out momentarily. DJ30 -22.89 NASDAQ -10.88 SOX -1.2% SP500 -2.79 NASDAQ Dec/Adv/Vol 1476/1104/368 mln NYSE Dec/Adv/Vol 1597/1276/272 mln

10:00 am : Indices slip to their worst levels of the morning as late-day recovery efforts in Technology from Tuesday fail to carry over into this morning's action. KLA-Tencor (KLAC 41.65 -0.91) offering the first piece of upbeat news within the underperforming Tech sector offered some relief yesterday afternoon; but Microsoft (MSFT 22.74 -0.36) falling 1.6% after it was fined $357 mln by the European Commission for not complying with a previous antitrust ruling has acted as a big overhang. Microsoft, a Dow component and the most influential component on the Nasdaq 100, has the third biggest weighting on the SnP 500.DJ30 -16.17 NASDAQ -11.38 SP500 -1.67 NASDAQ Dec/Adv/Vol 1327/1099/252 mln NYSE Dec/Adv/Vol 1403/1349/180 mln

[UpInArms]

43. Commentary: The 'haves' have more than ever (alarm bell ringing!)

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B9FB6EB50%2DC714%2D4BD2%2D82A5%2DAD16E0E5FBC9%7D&symbol=

excerpt:

It's easy to ignore this evolution while staring at our screens but a step outside our comfort zone -- and a step into the world around us -- unveils a disturbing yet unavoidable truth.

The 2004 election brought the dichotomy between blue states and red states to the forefront of the mainstream mindset. But a more disturbing conundrum evolved that had little to do with party lines or political affiliations. As we edge through the post-bubble world, the growing chasm between the "haves" and "have nots" has become readily apparent. Indeed, while the names have changed to protect the affluent, the middle class has quietly eroded to forge a wedge between the lifestyles of the rich and the struggle to exist. Welcome to Serf City USA, a place where we're entirely more comfortable not discussing the rigors of everyday life or the struggles that so many currently endure.

Those of us who grew up on Wall Street wore CAPITALISM across our chest like a badge of honor. Meritocracy and intellectual agility differentiated our existence and afforded us status in a white shoe world. The dot.com frenzy bridged those Benjamins to the digital age and migrated wealth to Silicon Valley and beyond. Once that ship sailed, fiscal and monetary agendas were implemented to prolong the modern day Jazz Age with hopes of avoiding the other side of that joyous ride. And in what many believe was the last hurrah at the Bubble Spa, home equity became the enabler of paper trades and happy trails. Yes, for some, life, or the perception thereof, has been very good indeed.

Meanwhile, on the other side of the tracks, a different breed of reality has emerged. Wage growth is stagnant, energy costs are rising, education expenses are escalating and our once proud manufacturing sector has been outsourced abroad. And despite a Herculean effort by a gritty greenback, the affects of isolationism continue to sequester our relative global standing. When the going gets tough, as the counter-parties of our government obligations have recently shown us, the tough tend to take care of themselves. That manifestation wears many faces, be it nationalization of natural resources or a debasement from the dollar as the world currency reserve. We can pretend it doesn't exist but denial has never been a viable investment strategy.

As we digest the ramifications of eminent domain, understand the motivation of the Bush era bankruptcy laws and accept that our social security and pension programs are inherently flawed, the growing societal chasm has become increasingly apparent. Indeed, almost 40% of all U.S. wealth is in the hands of the top 1% of the population, compared to 13% 25 years ago. Further, the top 0.25% of the population owns more wealth than the other 99.75% combined. As this dichotomy manifests, the implications for consumer spending, real-estate investment and long-term savings will be profoundly impacted.

...more...

and just in case you missed it:

the top 0.25% of the population owns more wealth than the other 99.75% combined

[Roland99]

44. New World Order and all that....

:(

[Ghost Dog]

51. Ponzi Pyramid Economies, I tell you. n/t

[amandabeech]

49. The Democratic Party of old would be interested in reducing the

disparity. Today, Democrats have their hands in the 0.25% till.

And we wonder why nobody seems to be paying attention and voter turnout is low.

[lovuian]

61. that is a prediction for a depression

Economic 101

[UpInArms]

45. Enron-related extradition drawing howls from U.K.

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B8FF03B79%2DF469%2D412D%2DBC8C%2DB8E430C089ED%7D&symbol=

LONDON (MarketWatch) -- If Enron is synonymous with corporate fraud to Americans, it's quickly becoming a codeword for American overreach to Europeans.

<snip>

And now, opposition to the extradition of three of Enron's bankers to the U.S. is growing in America's closest European ally, Great Britain.

The three men, David Bermingham, Gary Mulgrew and Giles Darby, are accused of fraud after allegedly advising a bank to sell part of an Enron holding for less than it was worth.

They are charged in the U.S. with a range of crimes, including wire fraud, but face no charged in the United Kingdom.

The bankers -- now dubbed the 'NatWest Three' -- have become a cause celebre in certain circles here, with the conservative Daily Telegraph newspaper even mounting a petition against current U.K. extradition laws.

...more...

[UpInArms]

46. Enron witness found dead in park

thanks to annabanana and this DU thread:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2383977

http://news.bbc.co.uk/2/hi/uk_news/england/london/5173228.stm

A body found in east London parkland has been identified as banker Neil Coulbeck, sources have told the BBC.

The banker worked for the Royal Bank of Scotland, and had been questioned by the FBI about the Enron fraud case.

Police were keeping an open mind about whether the death was linked to the Enron investigation, which involved RBS subsidiary NatWest.

Three British former NatWest employees are being extradited to the US on Thursday to face fraud charges.

<snip>

At Greenwich NatWest, he approved the transaction which is at the heart of the investigation into the so-called NatWest three.

...more...

:tinfoilhat:

[UpInArms]

47. 11:37 EST numbers and blather

Dow 11,093.47 -41.30 (-0.37%)
Nasdaq 2,112.04 -16.82 (-0.79%)
S&P 500 1,267.81 -4.71 (-0.37%)
10-Yr Bond 5.130 +0.30 (+0.59%)

NYSE Volume 793,852,000
Nasdaq Volume 644,854,000

11:30 am : Not much has changed since the last update as selling remains widespread across most areas. Aside from the bulk of industry leadership languishing in the red, as nine out of 10 SnP 500 sectors sports losses, Treasuries also remain under pressure as bond traders consolidate four days of gains. To wit, the resilience in the Indian stock market following yesterday's bomb blasts in Mumbai has removed the risk premium placed on U.S. government debt that pushed the yield on the 10-yr note down to 5.09% yesterday. DJ30 -50.61 NASDAQ -20.45 SP500 -6.08 NASDAQ Dec/Adv/Vol 1839/905/608 mln NYSE Dec/Adv/Vol 2018/1024/488 mln

11:00 am : Market extends its reach into negative territory as oil prices spike to session highs following the Energy Dept.'s weekly inventories data. Oil for August delivery initially hit $74.85 per barrel (+1.1%) after crude oil inventories fell by 5.99 mln barrels last week, nearly triple the decline expected by some analysts. However, with volatile oil prices now in negative territory, Energy’s modest leadership after subsequently turning positive has disappeared in sympathy with oil's reversal and stalled any attempts at a recovery for now. DJ30 -48.67 NASDAQ -19.51 SP500 -6.05 XOI -0.6% NASDAQ Dec/Adv/Vol 1706/978/516 mln NYSE Dec/Adv/Vol 1891/1094/408 mln

gotta go get some work done :hi:

[ozymandius]

50. another drive-by posting

12:34
Dow 11,064.91 -69.86 (-0.63%)
Nasdaq 2,105.14 -23.72 (-1.11%)
S&P 500 1,264.43 -8.09 (-0.64%)
10-Yr Bond 51.22 +0.22 (+0.43%)
NYSE Volume 1,034,155,000
Nasdaq Volume 838,612,000

now with the skunky blather....

12:30 pm : Market retraces morning lows as the afternoon session gets underway. Aside from semiconductors relinquishing about half of yesterday's rally and further deterioration in software stocks, as reflected in the GSTI Software Index extending its year-to-date decline to 10.4%, weakness throughout the hardware space is also weighing heavily on tech. Dell (DELL 22.60 -0.82) hitting another new multi-year low, IBM (IBM 75.31 -1.16) now at its worst levels in 12 months and Apple Computer (AAPL 53.81 -1.84) plunging 3% are among the most influential names in the group pushing the Technology sector even further into the red for the year (-9.9%). DJ30 -67.54 NASDAQ -23.04 SP500 -7.76

12:00 pm : In similar fashion to yesterday's action midday, uncertainty about whether companies' can grow earnings in a rising interest rate environment continues to act as an overhang on equities.

The most notable earnings report impacting today's trading has come from Genentech (DNA 81.45 -2.61), which posted a 79% rise in profits and raised its full-year EPS growth outlook last night; however, lower than expected Avastin sales prompted some analysts to question the biotech giant's growth prospects and downgrade the stock. Coupled with Fastenal (FAST 35.85 -2.70) missing analysts' expectations and Brunswick (BC 30.40 -1.43) slashing its FY06 EPS guidance, the lack of clarity on the earnings front so far has underpinned a sense of nervousness and kept buyers on the sidelines.

Predominantly negative industry leadership, paced by a 1.0% decline in the influential Technology sector, has also added to this morning's struggles. While KLA-Tencor (KLAC 41.67 -0.89) offering the first piece of upbeat news within the underperforming Tech sector in weeks offered some welcoming relief yesterday afternoon, its not surprising to see the subsequent 3.3% surge in the PHLX Semi Sector Index invite some profit taking. The European Commission fining Microsoft (MSFT 22.81 -0.29) $357 mln by for not complying with a previous antitrust ruling has also been a drag on tech, as well as the overall market since the Dow component also accounts for the third largest weighting on the SnP 500.

Of the only two sectors trading higher, Materials is turning in a respectable performance so far, as Alcoa (AA 32.60 +0.82) recoups some of yesterday's 4.7% drubbing; but as the least influential of the 10 SnP 500 sectors, its 0.4% gain is having little impact on the broader market. DJ30 -37.74 DJTA -0.3% DJUA -0.1% DOT -0.7% NASDAQ -14.39 NQ100 -0.9% R2K -0.8% SOX -1.9% SP400 -0.4% SP500 -3.74 XOI -0.3% NASDAQ Dec/Adv/Vol 1881/929/714 mln NYSE Dec/Adv/Vol 1959/1149/580 mln

[Ghost Dog]

52. (UK) Labour's (BLiar's) chief fundraiser arrested

http://today.reuters.co.uk/news/newsArticle.aspx?type=topNews&storyID=2006-07-12T155429Z_01_L12778592_RTRUKOC_0_UK-BRITAIN-SLEAZE.xml

LONDON (Reuters) - Lord Levy, the chief fundraiser for Prime Minister Tony Blair's Labour Party has been arrested by police probing allegations favours had been awarded in return for cash, according to media reports on Wednesday.

The "cash-for-favours" controversy which erupted earlier this year has dented Blair's standing in opinion polls and sparked media calls for his resignation.

"Officers from the specialist crime directorate requested a man to attend a London police station this morning where he was arrested in connection with alleged offences under the Honours (Prevention of Abuses) Act 1925 and Political Parties, Elections and Referendum Act 2000," a police spokesman said.

"The man is currently in custody," he said, declining to confirm his identity as widely reported in the media.

Labour has come under pressure after officials revealed it had received nearly 14 million pounds of loans from 12 businessmen, some of whom were nominated for seats in the House of Lords after lending money.

/more...



Nb. The 'Honours' referred to are where you get to call yourself Lord Dicksville or Sir Dickhead or whatever, thus entering the exclusive clubland establishment and being able to impress lots of gullible natives, all in exchange for (preferably untraceable) cash donations to the political party (or, in this case, it seems, to the BLiar New Labour 'inner circle') in the British government of the day.

--> In the Brit system, openly making large donations, though it stinks, may be Ok. But you're not supposed to receive any favors in exchange.

[UpInArms]

53. 1:26 EST redder numbers and nut-sp blather

Dow 11,037.35 -97.42 (-0.87%)
Nasdaq 2,097.37 -31.49 (-1.48%)
S&P 500 1,261.82 -10.70 (-0.84%)
10-Yr Bond 5.110 +0.10 (+0.20%)

NYSE Volume 1,245,086,000
Nasdaq Volume 1,021,434,000

1:00 pm : Little changed since the last update as the major averages continue to vacillate in roughly the same ranges and sport losses across the board. Adding to today's struggles have been the indices' inability to find initial support near key technical levels of 11075, 1268 and 2108 on the Dow, S&P and Nasdaq, respectively. Fortunately for the bulls struggling to extend yesterday's late-day heroics, below average volume provides little conviction behind the market's broad-based slide.DJ30 -66.47 NASDAQ -23.54 SP500 -7.62 NASDAQ Dec/Adv/Vol 1954/925/916 mln NYSE Dec/Adv/Vol 2092/1093/748 mln

[UpInArms]

54. Hedge fund indexes fall again in June

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BABC3F767%2D4CDF%2D4AB9%2DA283%2D82706ADCDB16%7D&symbol=

SAN FRANCISCO (MarketWatch) -- Hedge fund indexes fell for a second straight month in June and underperformed the Standard & Poor's 500 equity benchmark after some managers were caught out by sharp stock-market gyrations.

Hedge Fund Research's index dropped 0.20% last month after losing more than 1% in May. The Hennessee Hedge Fund Index, which tracks the performance of roughly 1,000 managers, shed 0.23% in June, after shedding 1.15% in May.

Hedge fund indexes run by The Barclay Group and HedgeFund.net dropped 0.32% and 0.14% respectively in June.

Hedge funds, private investment partnerships for wealthy individuals and institutional investors, are designed to generate positive returns irrespective of the direction of securities markets. However, many managers failed to beat the S&P 500 during a more volatile month for stock markets in June.

...more...

[stop the bleeding]

56. When does reality set in ???

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2381725&mesg_id=2382701

I said this yesterday - the DJIA is at yesterday's low, where will it go from here, me thinks southward, but I have been wrong before.

[UpInArms]

57. Dow drops triple-digits on international tensions

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC6314463%2D4786%2D4560%2DBA74%2D407694903C88%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- U.S. stocks accelerated to the downside, with losses in the Dow Jones Industrials Average ($INDU) reaching triple-digits, as an Associated Press report that world powers agreed to send Iran back to the United Nation's Security Council for possible punishment over its nuclear program soured investor sentiment. In addition, the AP reported that the U.S. blamed Syria and Iran for the kidnapping of two Israeli soldiers, calling actions by Hezbollah militants terrorist attacks. The Dow industrials were down 106 points at 11,028, with 25 of 30 components contributing to losses. The Nasdaq Composite ($COMPQ) was shedding 33 points to 2,096.

[UpInArms]

58. 1:48 EST Will it go below 11k?

Dow 11,027.03 -107.74 (-0.97%)
Nasdaq 2,096.33 -32.53 (-1.53%)
S&P 500 1,261.01 -11.51 (-0.90%)
10-Yr Bond 5.112 +0.12 (+0.24%)

NYSE Volume 1,325,598,000
Nasdaq Volume 1,094,023,000

[stop the bleeding]

65. my charts show at 3 pm EST there were 2 five minute candles

that had the DJIA below 11K for a few moments.

[UpInArms]

60. Toyota recalls more than 380,000 vehicles globally (260,000 in US)

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BAC2376DD%2D55C7%2D4B80%2D854E%2DDF1345987BFE%7D&symbol=

COLOGNE (MarketWatch) -- Toyota Motor Corp. (TM) has recalled more than 380,000 vehicles globally, a company spokeswoman in Germany told Dow Jones Newswires Wednesday.

The recall affects the company's Lexus premium brand and the Toyota Highlander model.

The recall is due to a faulty part below the vehicles' center console, which could slip under the gas and brake pedals, the spokeswoman said.

She declined to comment on the costs of the recall, which affects vehicles produced between February 2003 to the present.

The bulk of the recalled cars is in the U.S., where around 130,000 Lexus RX models and around 230,000 Toyota Highlander models are being recalled, said the spokeswoman.

...more...

What part would fall under your gas and brake pedals????

GACK!

[mistertrickster]

62. Thanks for all the good info, but I'm not following your numbers on

Dow and Nasdaq (etc) performance numbers.

If the Dow was at 10,5 something and now it's 11,1 and change, then it has a net rise of 5 and a quarter percent.

Doesn't it?

Anyway, that's really a piss poor return. 5 percent in 5 and a half years? I can't remember when the Dow was this bad for this long.

[newportdadde]

63. Those percentages are the gains at the close from prev day.

[mistertrickster]

86. Ah ha, okay thanks . . . nt

[UpInArms]

64. 3:01 EST really red numbers and blather

Dow 11,002.62 -132.15 (-1.19%)
Nasdaq 2,092.04 -36.82 (-1.73%)
S&P 500 1,258.16 -14.36 (-1.13%)
10-Yr Bond 5.104 +0.04 (+0.08%)

NYSE Volume 1,686,315,000
Nasdaq Volume 1,384,264,000

2:30 pm : More the same for stocks as the Nasdaq continues to outpace its blue chip counterparts to the downside. A 2.0% decline in Technology remains the biggest drag on the Composite as further weakness in retail (e.g. SHLD -2.1%) and transportation (e.g. CHRW -1.7%) have also left only 13 of the Nasdaq 100 components trading higher. Genzyme (GENZ 62.82 +4.84) has turned in the best performance, surging 8.3% after beating analysts' EPS expectations on strong sales of its three best-selling drugs. BTK -0.1% DJ30 -108.14 NASDAQ -31.08 SP500 -11.43 NASDAQ Dec/Adv/Vol 2116/838/1.25 bln NYSE Dec/Adv/Vol 2239/1000/1.01 bln

Any takers for bets that the faeries keep it about 11k? :evilgrin:

[UpInArms]

68. 3:30 EST heading for the close with a bit of "wiggle" room

Dow 11,021.92 -112.85 (-1.01%)
Nasdaq 2,096.62 -32.24 (-1.51%)
S&P 500 1,260.66 -11.86 (-0.93%)
10-Yr Bond 5.100 0.00 (0.00%)

NYSE Volume 1,850,632,000
Nasdaq Volume 1,516,738,000

Looks like that 11k number is "safe" :eyes:

adding blather on edit:

3:30 pm : Indices are off their worst levels but market breadth remains decidedly negative. Decliners outnumber advancers by more than 2 to 1 on the NYSE while those on the Nasdaq hold a 3-to-1 edge. A 4-to-1 ratio of down to up volume suggests an even more convincingly bearish bias as the number of New Lows also far exceeds New Highs. Separately, Treasuries regained some momentum heading into the close and finished relatively unchanged; but with the spread between the 2-yr and 10-yr note yields becoming more inverted, concerns that profit margins for companies like banks and brokers borrowing cash at short-term rates and lending at long-term rates might fall have prevented the rate-sensitive and influential Financials sector (-0.9%) from taking advantage.DJ30 -100.78 NASDAQ -30.71 SP500 -10.81 NASDAQ Dec/Adv/Vol 2218/782/1.51 bln NYSE Dec/Adv/Vol 2328/940/1.24 bln

[Roland99]

70. Faeries and PPT keeping it above 11k?

[stop the bleeding]

71. I wouldn't be so sure that 11K is "safe"

15 minutes to go and we are getting sell signs all over the charts and it is at 11014 right now, just a little wiggle room, also looking at the yearly charts - DJIA is doing the best compared to it's MA's the S&P and NASDAQ are hurting - respectively.

[Roland99]

72. 11,006...10 min.

[UpInArms]

75. 3:52 EST 11,010

[Roland99]

76. lol...

it's hanging on by a thread.

11,009.

NASDAQ under 2,100 and wasn't 1,260 a support for S&P?

[stop the bleeding]

77. yes 1250 -1260 would be a good area of support for the S&P

so it is still bumping around in this area, but if it falls below 1250 well then you know ;)

[Roland99]

78. Well, it's bumping against it. DJIA looks safe to stay above 11k today.

[UpInArms]

79. ..

[stop the bleeding]

80. LOL - no doubt :) n/t

[Roland99]

83. Excellent!

[UpInArms]

73. 3:48 EST could the grip have slipped?

Dow 11,009.10 -125.67 (-1.13%)
Nasdaq 2,092.31 -36.55 (-1.72%)
S&P 500 1,258.40 -14.12 (-1.11%)
10-Yr Bond 5.100 0.00 (0.00%)

NYSE Volume 1,986,215,000
Nasdaq Volume 1,625,400,000

[Roland99]

74. Volume's not so light either. Can't spin it that way.

[UpInArms]

81. Sears' Lacy ends tenure with more than $50 million

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BE4A3AF65%2DD42A%2D4CD3%2D881E%2DD7FE7793AD0F%7D&symbol=

CHICAGO (MarketWatch) -- Alan Lacy will end his mostly troubled tenure at Sears Holdings Corp. later this month with an exit and stock package worth more than $50 million.

<snip>

Though Lacy's ego may be damaged by all this, his wallet has not. According to the Sears Holdings proxy filed in March this year, a provision to accelerate vesting on stock-option grants would kick in if he left the company in a 30-day period after June 30. That day also was when he could buy restricted shares given to him at the time of the merger.

Here's what Lacy gets: a $7.5 million exit payment; the ability to vest 200,000 options priced at $131.11, worth $4.4 million more at Wednesday's trading price of $153.30; and 75,000 restricted shares becoming unrestricted, worth $11.5 million on Wednesday. Coupled with an estimated $27 million he made on his options in the old Sears ahead and at the time of the acquisition, and he's got a boatload worth about $50.4 million.

...more...

COMPANY NEWS; CITIGROUP ANNOUNCES MORE LAYOFFS AT A FORMER SEARS UNIT

Citigroup plans to eliminate 847 jobs at a New Orleans credit card center purchased from Sears, Roebuck & Company and close the facility by October, a spokeswoman, Maria Mendler, said. The cuts are part of a plan to cut 3,400 jobs, or about 40 percent of 8,300 employees in the unit, Ms. Mendler said. Citigroup bought the Sears business in November for $3.4 billion. The company said last week that 930 workers at a Sears card center in Trevose, Pa., would be laid off.

Kmart-Sears merger threatens thousands of US jobs

Executives of the discount retail company Kmart and the Sears department store chain announced a massive merger deal on Wednesday. The new corporation will be the third largest US retailer, with a total of 3,450 stores and an expected annual revenue of $55 billion.

The move threatens thousands of jobs. While both Kmart and Sears executives have said nothing about future layoffs, business analysts left little doubt as to what will soon follow. “It looms good for both businesses overall, but in the short term it will cost jobs,” Gary Ruffing, head of retail services at the managing consulting group BBK, told Associated Press. Kmart currently employs approximately 144,000 people, and Sears 250,000.

Facing the most immediate uncertainty are Kmart workers at the company’s headquarters, located in Troy, Michigan, a suburb of Detroit. The merged corporation’s central offices will be shifted to Hoffman Estates, Illinois, the current headquarters of Sears. Kmart has insisted that it will maintain a “significant presence” in Troy. However, the company has already begun laying off its workers in the Detroit suburb, with 200 job cuts announced three months ago.

The merger is expected to reduce overall annual costs by more than $300 million, although what proportion of this will be due to job eliminations remains unclear. Kmart’s press release explained that “the combined company will complete a full store asset review as part of a plan to monetize non-strategic real estate assets as appropriate.” In other words, any Kmart or Sears store that is deemed insufficiently profitable will likely be sold or closed.

...more...

[saigon68]

82. Another Golden Parachute

[trogdor]

84. Rewards for mediocrity.

50 million of them.

[saigon68]

87. Hope he enjoys his champagne

</sarcasm>

[UpInArms]

85. closing up the shop

Dow 11,013.18 -121.59 (-1.09%)
Nasdaq 2,090.24 -38.62 (-1.81%)
S&P 500 1,258.60 -13.92 (-1.09%)
10-Yr Bond 5.100 0.00 (0.00%)

NYSE Volume 2,162,058,000
Nasdaq Volume 1,834,163,000

Stocks plummeted Wednesday as earnings jitters and geopolitical concerns, which pushed oil prices toward record highs, weighed heavily on trading and closed all three major averages down at least 1.0% and near session lows.

Weakness across the board in Technology was the biggest impediment on overall sentiment as cautious investors questioned the validity of yesterday's late-day heroics that were fueled largely by upbeat comments from chip equipment makers. Aside from an understandable 2.7% pullback in the PHLX Semiconductor Sector Index following Tuesday's surprising 3.3% surge, there was further deterioration in Computer Hardware. International Business Machines (IBM 75.46 -1.01) hit an intraday 52-week low after JP Morgan lowered its revenue estimates.

Further playing into our concerns that Wall Street earnings forecasts for the second half of the year are still too high was Dell (DELL 22.38 -1.04), which fell to another new multi-year low after UBS lowered its EPS estimates. Apple Computer (AAPL 52.96 -2.69) plunged 4.8% after Credit Suisse said it expects AAPL to guide revenue below consensus. Software, as reflected in the GSTI Software Index (-1.4%) extending its year-to-date decline to 10.8%, was another sore spot for investors. The European Commission fining Microsoft (MSFT 22.64 -0.46) $357 mln for not complying with a previous antitrust ruling sent shares of the Dow component and third most influential component on the SnP 500 down 2.0%.

Of the other nine economic sectors losing ground, the Financials sector's inability to take advantage of Treasuries paring a day of selling late in the session to finish relatively unchanged was also discouraging. Even though the 10-yr note shaved about 4 basis points off its yield from session lows, the spread between it and the 2-yr becoming more inverted raised worries about the pace of economic growth since profit margins for companies like banks and brokers, which borrow cash at short-term rates and lend it at long-term rates, might fall.

Consumer Discretionary was another notable sector losing at least 1.0%. The Computer and Electronics Retail group turned in the worst performance while Home Depot (HD 33.63 -0.75) and Lowes Cos. (LOW 27.45 -1.08) hitting new 52-week lows also acted as sector constraints. Aside from rising oil prices adding to spending concerns, especially with the Fed eyeing elevated energy prices and their potential to sustain inflation pressures, Brunswick (BC 29.60 -2.23) plunged to a multi-year low after slashing its FY06 EPS guidance and blaming consumer concerns about the economy for a "double-digit" drop in boat sales.

Adding insult to injury before the market even opened was Genentech (DNA 80.98 -3.08), which posted a 79% rise in profits and raised its full-year EPS growth outlook last night. However, lower than expected Avastin sales prompted some analysts to question the biotech giant's growth prospects and to downgrade the stock, suggesting things may get worse before they get better. DJ30 -121.59 NASDAQ -38.62 SP500 -13.92 NASDAQ Dec/Adv/Vol 2258/775/1.81 bln NYSE Dec/Adv/Vol 2280/1009/1.48 bln