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ozymandius Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 05:12 AM
Original message
STOCK MARKET WATCH, Thursday 10 August
Thursday August 10, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 895 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2056 DAYS
WHERE'S OSAMA BIN-LADEN? 1756 DAYS
DAYS SINCE ENRON COLLAPSE = 1717
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 6
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54


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




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


AT THE CLOSING BELL ON August 9, 2006

Dow... 11,076.18 -97.41 (-0.87%)
Nasdaq... 2,060.28 -0.57 (-0.03%)
S&P 500... 1,265.95 -5.53 (-0.43%)
Gold future... 662.00 +4.70 (+0.71%)
30-Year Bond 5.05% +0.02 (+0.48%)
10-Yr Bond... 4.94% +0.01 (+0.28%)






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 actionpost@legitgov.org

For information on protests and other actions Citizens For Legitimate Government






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ozymandius Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 05:15 AM
Response to Original message
1. WrapUp by Chris Puplava
TUG OF WAR WITH INFLATION AND THE ECONOMY
LIKELY TO CONTINUE TO WEIGH ON FUTURE FED DECISION


As expected, the Federal Reserve went on pause yesterday, though throwing in the statement that some inflation risks remain. The decision to pause was not unanimous as Mr. Lacker of the Federal Reserve Bank of Richmond cast a dissenting vote, wanting to raise the federal funds rate to 5.50%. The markets initially responded favorably, but with the Fed not ruling out another rate hike, the sense of finality investors had hoped for never materialized. The DJIA fell from a post-Fed decision reaction high of 11276.13 to close at 11,173.59, falling more than 100 points and down just under half a percent on the day.

Going forward there are still concerns that the Federal Reserve must keep an eye on: housing and inflation. The Fed acknowledged both a slowing economy due to a housing slowdown as well as rising inflation. Evidence of a housing slowdown continues to pile in. Residential investment expenditures fell 6.3% in the second quarter, the third straight and largest quarterly decline.

-cut-

The slowing seen in housing is beginning to trickle through the economy as real GDP in the 2nd quarter was only 2.5%, with GDP revisions reducing nearly 25 basis points from annual real GDP growth during the nearly five-year expansion since 2001. Here are a few further sources of a slowing housing market. Home sales are off 10% from their peak last summer, unsold inventories have soared to a new record, construction spending is decelerating after peaking in early 2004, and the national median home price has decelerated sharply from the peak seen in 2005 (see charts below).

http://www.financialsense.com/Market/wrapup.htm
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ozymandius Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 05:17 AM
Response to Original message
2. Today's Reports
8:30 AM Initial Claims 08/05
Briefing Forecast 310K
Market Expects 315K
Prior 315K

8:30 AM Trade Balance Jun
Briefing Forecast -$64.8B
Market Expects -$64.5B
Prior -$63.8B

2:00 PM Treasury Budget Jul
Briefing Forecast -$33.0B
Market Expects -$35.0B
Prior -$53.4B
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 07:48 AM
Response to Reply #2
14. 8:30 reports:
8:30 AM ET 8/10/06 AVERAGE PRICE OF U.S. IMPORTED OIL SETS RECORD IN JUNE

8:30 AM ET 8/10/06 U.S. JUNE TRADE GAP WITH CHINA $19.7 BLN

8:30 AM ET 8/10/06 U.S. CONTINUING JOBLESS CLAIMS UP 48,000 TO 2.48 MILLION

8:30 AM ET 8/10/06 U.S. MAY TRADE GAP REV $65.0 BLN VS $63.8 PREV EST

8:30 AM ET 8/10/06 U.S. 4-WEEK AVG INITIAL JOBLESS CLAIMS FALL 3,750 TO 308,750

8:30 AM ET 8/10/06 U.S. JUNE TRADE GAP ABOVE CONSENSUS OF $64.5 BLN

8:30 AM ET 8/10/06 U.S. INITIAL JOBLESS CLAIMS RISE 7,000 TO 319,000

8:30 AM ET 8/10/06 U.S. JUNE TRADE GAP NARROWS 0.3% TO $64.8 BLN
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 07:49 AM
Response to Reply #14
15. U.S. initial jobless claims rise 7,000 to 319,000
http://www.marketwatch.com/News/Story/Story.aspx?dist=n...

WASHINGTON (MarketWatch) -- U.S. initial jobless claims rose by 7,000 in the latest week as the number of people collecting state unemployment benefits over the past four weeks hit the highest level since March.

The four week average of continuing claims rose to 2.47 million, the highest since March 11, the Labor Department said Thursday.

Seasonally adjusted first-time claims for unemployment benefits rose by 7,000 to 319,000 in the week ended August 5.

The four-week average of new claims, which smoothes out one-time factors such as weather or holidays, fell by 3,750 to 308,750.

The number of workers collecting jobless benefits rose by 48,000 to stand at 2.48 million in the week ended July 29.

Economists surveyed by MarketWatch were expecting initial claims to fall slightly to 314,000. See Economic Calendar.

...more...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 07:51 AM
Response to Reply #14
16. June Trade Gap @ $64.8 Billion (above concensus) May rev'd up @ $65 Billio
http://www.marketwatch.com/News/Story/Story.aspx?guid=%...

WASHINGTON (MarketWatch) -- The U.S. trade deficit improved in June but only after the May deficit was revised much higher than first reported, the Commerce Department said Wednesday. The trade gap narrowed by 0.3% in June to $64.8 billion. The trade deficit was above the consensus forecast of Wall Street economists of a deficit of $64.5 billion. The deficit in May was revised up by 1.9% to $65.0 billion, the second highest on record, from the initial estimate of $63.8 billion. Exports rose faster than imports in June. The U.S. trade deficit with China widened to $19.7 billion in June compared with $17.5 bln in the same month last year. The average price per barrel of imported crude oil set a record of $62.04 in June.
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:34 AM
Response to Reply #2
33. DOE: NatGas Supplies down 12 BCF
10:30 AM ET 8/10/06 NATURAL-GAS SUPPLIES DOWN 12 BCF IN LATEST WEEK - DOE
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 01:08 PM
Response to Reply #2
61. U.S. July deficit narrows to $33.2 bln vs $53.4 bln July '05
2:00 PM ET 8/10/06 U.S. BUDGET DEFICIT $239.7 BLN YEAR-TO-DATE, DOWN 20.8%

2:00 PM ET 8/10/06 U.S. JULY BUDGET OUTLAYS DOWN 1.3% TO $193 BLN

2:00 PM ET 8/10/06 U.S. JULY BUDGET RECEIPTS UP 12.4% TO $159.8 BLN

2:00 PM ET 8/10/06 U.S. JULY FEDERAL BUDGET DEFICIT $33.2 BLN, AS EXPECTED

http://www.marketwatch.com/News/Story/Story.aspx?guid=%...

WASHINGTON (MarketWatch) - The federal government ran a $33.2 billion deficit in July, the Treasury Department reported Thursday. The deficit was down 38% from the deficit of $53.4 billion reported in the same month last year. The federal deficit was in line with the estimate released earlier this month by the Congressional Budget Office. For the fiscal year so far, the deficit is down 20.8% to $239.7 billion from $302.8 billion in the same period last year. For the year, the Bush administration estimates the deficit will shrink to $295.8 billion from $318.5 billion. In July, receipts increased 12.4% to $159.8 billion from July 2005. Outlays fell 1.3% to $193.0 billion.

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ozymandius Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 05:19 AM
Response to Original message
3. Oil prices little changed despite unrest
SINGAPORE - Crude oil prices changed little Thursday as the market remained wary of factors influencing supply in the United States, Africa and the Middle East.

Light, sweet crude for September delivery rose 9 cents to $76.44 a barrel in midafternoon Asian electronic trading on the New York Mercantile Exchange. A day earlier, prices had risen as high as $77.44 less than a dollar away from the trading record of $78.40 reached July 14.

-cut-

Wednesday's increases came after the U.S. government reported drops in crude, gasoline and distillate fuel inventories aggravating concerns about a supply shortage from the shutdown of a major pipeline in the U.S. state of Alaska.

Prices also continue to be inflated by ongoing unrest in Nigeria, Africa's biggest oil producer; the standoff between the United Nations and Iran over the No. 2 oil producer's nuclear program, and fighting in the Middle East between Israel and Hezbollah, which further threatens to disrupt production in the region.

more
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ozymandius Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 05:21 AM
Response to Reply #3
4. Pipeline repairs may take several months
ANCHORAGE, Alaska - BP PLC said it is working with a number of suppliers in hopes of quickly amassing materials needed to replace 16 miles of aging oil pipes on Alaska's North Slope.

BP is taking steps to replace the pipelines after a small leak and severe corrosion in one part of the pipes prompted the company to shut down the nation's largest oil field.

-cut-

"BP is going to spare no expense to put the situation right and to ensure the safety of the pipeline," BP spokesman Scott Dean said Wednesday.

BP has approached Japan's JFE Steel Corp. and other steel producers about buying 18-inch pipe to replace the corroded sections at Prudhoe Bay, said David Belvin, senior technology manager of sales and service at JFE's Houston office.

more
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ClintonTyree Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 06:54 AM
Response to Reply #4
9. "BP is going to spare no expense"..................
:rofl: Yeah, right! In "Oilese" that means, "we will gouge our customers as much as is needed to put the situation right". Like the money is going to come out of THEIR pockets! :eyes: They'll drill into OUR wallets to pay for THEIR fuck-ups and STILL have record profits again this quarter. :grr: How stupid do they think we are?
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:26 AM
Response to Reply #4
30. BP sees Alaska repairs costing $100 million: source
http://today.reuters.com/news/articlenews.aspx?type=bus...

LONDON (Reuters) - Oil giant BP Plc expects the replacement of corroded pipelines at the Prudhoe Bay oil field in Alaska to cost around $100 million, a company source said on Thursday, but the total cost to BP will likely be several times this figure.

The expected cost includes around $20-$30 million for the steel pipeline, the source said, well above the $15 million that one steel analyst estimated on Wednesday.

The BP source said the higher than predicted cost was because the company was "a distressed buyer".

A BP spokesman said it was too early to give a figure for repairs at the field, in which BP has a 26 percent stake, and Exxon Mobil Corp and ConocoPhillips own 36 percent each.

BP unexpectedly announced the phased shutdown of the U.S.'s largest oil field on Sunday to replace 16 miles of pipeline at the field after it discovered severe corrosion.

...more...
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 10:57 AM
Response to Reply #4
48. Workers warned BP of pipeline
http://www.chron.com/disp/story.mpl/business/4106789.ht...

BP received warnings more than two years ago about corrosion problems in its Prudhoe Bay pipeline system in letters written on behalf of company whistle-blowers and a survey commissioned by the company.

Charles Hamel, a Virginia-based consultant who has long been a conduit for BP worker complaints, wrote to BP board member Walter Massey on May 22, 2004, saying engineers in BP's Alaska operations felt there was mismanagement of the company's corrosion inspection division.

In the letter Hamel provided to the Chronicle, he said the BP engineers " ... expect (not just fear) a catastrophic event at BP Prudhoe facilities," referring to the 22-mile pipeline system BP said this week it was shutting down because of corrosion.

And a 2003 BP survey of anonymous employees, contractors and local officials posted on its Web site elicited concerns about pipeline safety at its Alaskan operations.

An employee who was surveyed described how BP maintained the Prudhoe Bay system by saying: It "will run it until it is corroded, then decommission and replace the pipe. My concern, however, is that they are not taking a look at every piece of pipe that they need to be."

more...
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ozymandius Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 05:26 AM
Response to Reply #3
6. Alaska threat to sue BP for oil tax losses
BP'S WOES over the partial shutdown of its Prudhoe Bay oilfield in Alaska worsened last night when Alaska governor Frank Murkowski opened an investigation into the British company's handling of its pipeline corrosion problem and said he might demand compensation for lost tax revenues that could reach $1.3bn (682m).

Corrosion in the field's feeder pipelines forced BP to halt production there on Sunday, halving its output of 400,000 barrels a day, which accounts for 8% of US oil production.

'We will hold British Petroleum accountable for past and future field management decisions,' Murkowski told Alaska's legislature.

Alaska is expected to lose $6.4m a day in tax income during the Prudhoe Bay shutdown. With the stoppage now expected to last to January, that suggests a shortfall in tax revenues that could rise tomore than $1.27bn.

http://www.thisismoney.co.uk/news/article.html?in_artic...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:19 AM
Response to Reply #3
28. Crude opens lower on air travel slowdown fears - @ $75.40 bbl
http://www.marketwatch.com/News/Story/Story.aspx?guid=%...

NEW YORK (MarketWatch) -- Crude prices opened lower Thursday after U.K. authorities apparently thwarted a plot to blow up as many as six airplanes flying to the U.S., raising concerns of a slowdown in air travel. Crude for Septmember delivery was last down 95 cents at $75.40 a barrel. Heating oil, which includes winter heating oil and jet fuel, was off 2.91 cents at $2.077 a gallon. Gasoline futures were down 4.52 cents at $2.127 a gallon. Natural-gas futures rose 0.19 cent to $7.67 per million British thermal units.
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 10:04 AM
Response to Reply #3
41. Crude @ $74.85 bbl
10:49 AM ET 8/10/06 CRUDE FUTURES DIP BELOW $75 TO $74.85 A BARREL

So which is it?

Oil goes up with terra?

Oil goes down with terra?

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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 01:23 PM
Response to Reply #3
68. Crude under $74 bbl (no number given - must be $73.99?)
2:18 PM ET 8/10/06 CRUDE FUTURES ON TRACK TO END AT NEAR TWO-WEEK LOW

2:16 PM ET 8/10/06 CRUDE FUTURES FALL UNDER $74 A BARREL
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ozymandius Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 05:23 AM
Response to Original message
5. Foiled bomb plot set to shake Wall St stocks
LONDON (Reuters) - Wall Street shares are set to open lower on Thursday, extending the previous session's losses, after a foiled plot to blow up transatlantic flights shook European markets.

The U.S. government raised the security threat level for all commercial aviation in coordination with British security, with flights originating in the UK being raised to "severe," or red, the highest U.S. threat level and an unprecedented move in its war on terror.

"It inevitably has an impact; it raises the specter of terrorism once again," said Jonathan Monk, fund manager at Aerion Fund Management in London.

"There's not really much to keep the market going. It's going to be choppy ahead. There's still a lot of uncertainty around; you're not sure whether we're going to see a soft or a hard landing."

more
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:30 AM
Response to Reply #5
31. Be Afraid - Be Very Afraid - At least 5 U.S. cities targeted in bomb plot
:scared: :sarcasm:

"an unnamed U.S. intelligence official" - "US" and "intelligence" no longer go in a sentence together

http://www.marketwatch.com/News/Story/Story.aspx?guid=%...

LONDON (MarketWatch) -- At least five major U.S. cities were targeted by the plot to blow up U.K. planes en route to the U.S., the Agence France Presse news agency reported Thursday, citing an unnamed U.S. intelligence official.
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 10:02 AM
Response to Reply #5
40. Be Afraid Alert: Qatar Airways Hijacking Foiled
10:48 AM ET 8/10/06 QATAR AIRWAYS HIJACKING FOILED, AL-JAZEERA TV REPORTS

10:59 AM ET 8/10/06 QATAR AIRLINES PLANE WAS FROM DOHA TO AMMAN: REPORT
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ozymandius Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 05:29 AM
Response to Original message
7. Gotta go folks.
:donut: :donut:
The day is starting earlier than usual. Please have a wonderful day.

Ozy :hi:
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Roland99 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 05:56 AM
Response to Reply #7
8. You, too, ozy!
I can't be around during the daytime anymore (at least as long as I'm at work)

:(
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 07:15 AM
Response to Original message
10. daily dollar watch
http://quotes.ino.com/chart/?s=NYBOT_DX&v=i

Last trade 84.69 Change +0.10 (+0.12%)

Tomorrow's Economic Releases: Trade Data Comes Back Around

http://www.dailyfx.com/story/calendar/key_events/Tomorr...

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

Consensus: -$64.4B
Previous: -$63.8B

Outlook: June’s trade balance is expected to sink further after reaching its sixth-largest deficit the month before. Most of the factors that caused last month’s widening of the trade deficit are still present, but the mitigating effect of a weak dollar disappeared in June as interest rate speculation spurred a recovery in the currency. The stronger dollar, combined with high raw materials costs that will further increase prices, will likely serve to depress exports in the coming report. There is little hope for a significant decline in imports as oil prices, a major contributor to last month’s increase in the deficit, were even higher in June than in the month before. With exports likely to slip to the downside and no relief from oil prices on the horizon, expectations for a wider shortfall seem well founded.

Previous: Despite rising import prices, May’s trade deficit rose less than expected as a weak dollar helped boost export numbers. Oil, as usual, was the most blatant contributor to the broader gap in the trade balance, helping shoot import prices up by 8.4% as oil prices remained stratospheric and refineries upped their crude imports. In fact, the trade deficit actually shrank overall, if oil is excluded from the calculation. However, the deficit widened only slightly on the month, thanks to the highest level of exports on record, as the dollar weakened against the other major world currencies. With June’s stronger dollar and consistently high oil prices, the trade deficit will likely remain a concern.

...more...


2006 - What Are the Most Market Moving Economic Indicators for the U.S. Dollar?

http://www.dailyfx.com/story/special_report/special_rep...

Non-farm payrolls use to be the most market moving economic indicator for the US dollar, but this is no longer true. Back in April of 2005, we published a report using 2004 data that ranked non-farm payrolls as the single piece of economic data that caused the biggest average daily movement for the US dollar during that year. We have now updated the analysis by looking at the impact of economic data on currency prices between June 2005 and June 2006.

The latest report indicates that the ISM or Institute of Supply Management’s index of manufacturing sentiment actually surpassed the non-farm payrolls as the market moving indicator for the US dollar over the past 12 months. The changes that we have seen in the rankings are primarily due to the shifts in the economic cycle, changes to major market themes and the Federal Reserve’s greater emphasis on inflation. Regardless of whether you are a fundamental or a technical trader, knowing which economic data can cause the biggest shifts in the markets is extremely important. Depending upon your specific trading strategy, it will help you to decide when to be in the markets and when to stay out.

Shifting Importance of Fundamental Data over Time

With the US dollar representing the other side of 90 percent of all currency transactions, US economic data is hands down the most important releases to watch. In our study, we attempt to further narrow this down to the select few that can cause the biggest movements by looking at various time frames to gage both the knee-jerk and slightly more settled reaction. Starting with the knee-jerk reaction in the first 20 minutes of trading, unemployment and the Federal Reserve’s interest rate decision still win out. However, going down the rankings, we see that the trade balance, inflation and retail sales have become much more important while the report on foreign purchases of US Treasuries has slipped from the third most market moving to the sixth. The Federal Reserve’s persistent interest rate hikes along with the rapid increases in oil and gold prices has pushed concerns about funding for the US’ current account and trade balances to the back burner. Between June 2005 and June 2006 alone, oil prices have increased to a high of 50 percent while the price of gold was up 73 percent at its highest point during the 12 months. Therefore it is no wonder that inflation has shot up in significance. As overnight lending rates reach higher and higher, market participants are more prone to use price growth (the Fed’s primary issue when determining monetary policy) to analyze how long the steady diet of 25 basis points can last.



<snip>

Where ISM Wins Out

Now we move onto the full, daily range which measures an indicator’s ability to truly spark shifts in market sentiment or otherwise key off the beginning of new trends. Not surprisingly, many of the same indicators that have held the upper echelons of the Top Market Movers’ list in 2004, remain there today. Non-farm payrolls and the trade balance are two indicators that have survived the upset. However, there are a few surprises for the most current data, the most remarkable of which was the rise of ISM manufacturing to the top spot. This development can be explained in a few ways. The ISM tends be released on the first business day of each month, which allows it to be interpreted as a leading indicator for non-farm payrolls. The ISM report contains two key subcomponents that shed more light on how the data for the rest of the month will be released. The headline ISM manufacturing number is accompanied by the components - prices paid and employment. With independent employment and inflation reads continuously ranking in the top nine, the advanced release is basically a spring board for setting up expectations for the official releases due later in the month. The prices paid indicator in particular has garnered a healthy amount of attention. The employment component is used to forecast payrolls which are released a few days later while the prices paid component is used to forecast the consumer and producer price indexes along with the Federal Reserve’s rate decision.



...more...
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 10:31 AM
Response to Reply #10
44. My Bob!!! Look at that buck just soar!
http://quotes.ino.com/chart/?s=NYBOT_DX&v=s

Last trade 85.24 Change +0.65 (+0.77%)

Settle Time 15:00 Open 84.59

Previous Close 84.59 High 85.29

Low 84.42 2006-08-10 10:59:34, 30 min delay
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 10:57 AM
Response to Reply #44
49. fleeing gold for the safety of the buck?
:eyes:
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 11:48 AM
Response to Reply #49
57. Doesn't make a lot of sense, does it? Hey, while you were out last
week I found an article that mentioned China's CB was getting into the gold leasing business. It hasn't gotten a lot of play yet, even with the goldbugs. :shrug:

Anyway, I wonder who's doing all the selling in the gold market today and -

where have all the buyers gone....
long time passing.
where have all the buyers gone....
of gold long ago.
where have all the buyers gone...
Treasuries have tricked them ev'ry one.
Oh, when will they ever learn?
Oh, when will they ever learn?
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 12:38 PM
Response to Reply #10
59. Dollar Safety
http://www.dailyfx.com/story/dailyfx_financial_markets_...

Capital was flowing into the Dollar at a powerful clip in the morning hours of the New York session as the market discounted the trade account for more immediate concerns over the evolving details of the foiled terror plot in the UK. Looking to the majors, it was obvious the dollar received a wave of momentum in dollar bidding as US liquidity came online.
In the benchmark EURUSD, a third touch on 1.2905 resistance eventually led to a 160-point sell off down to 1.2745. Despite initial signs of hesitation in following through with the slide, few strong support levels were in sight. The rally against the yen ended a falling channel formed since the close of yesterdays New York session. A low for the USDJPY was tested at 114.65 and the flip turned into a 95 point run before taking to consolidating just below resistance at 115.75. The arguably over-bought GBPUSD relieved some of the pressure in the pair with its own 225-point plunge to a spike-low of 1.8865. Finally, the USDCHF was working on two-week highs approaching mid-day after a sizable 195-point run to 1.2385.

Once again the currency markets were grappling with the question of where investment capital would be best placed as uncertainty was heightened after British police prevented a terror plot based out of their own country. While the preliminary details are still fuzzy, it is known that 21 men were arrested before they could carry out a plan to board planes with improvised explosives. News sources say six to ten planes, that were all destined for the United States, were targeted. This incidence has put airports around the world on high alert while the US has specifically raised its threat levels for inbound air traffic from the UK to severe for the first time ever. The relative importance of the safe haven accountability of currencies in the markets was easily grasped in European and North American trading. With scheduled economic indicators printing unimpressive results to suggest a stable US dollar, the currency was instead able to produce a sizable rally. Over the past few months, demand for the most liquid currency in the world on safety concerns has occurred several times, most notably when the war between Israel and Hezbollah began and when North Korea tested its missile capabilities. And, with new issues popping up all over the world every day, anxious global investors are likely to continue to err on the side of safety of funds when a decision has to be made. On the other hand, though fundamentals were not taking precedence at the moment of their release, their effects on valuations will be around long after fear subsides. For today, the headiest piece of data was Junes trade figure. As was expected, the deficit grew from Mays preliminary read to $64.8 billion. However, due to a sizable upward revision in the previous months gauge to a $65 billion shortfall, Junes figure actually represented a slight contraction. According to the Commerce Departments statistics, imports rose 1.2% to $185.5 billion while exports advanced 2.0% to a record $120.7 billion. This ambiguous improvement in the goods and services trade account comes on part of stronger growth from foreign markets like Japan and the Euro-zone and a drop in the US dollar, which tallied 3.8% against the euro. Looking ahead to tomorrow, should fears subside that the terror plot runs deeper than is currently believed, traders will respond to July retail sales to gauge whether economic growth is improving in the third quarter.

more...
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Ghost Dog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 01:28 PM
Response to Reply #59
70. (Liquidating other assets): into the $ and then soon out again? n/t
Edited on Thu Aug-10-06 01:30 PM by Ghost Dog



Truly weird.
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 07:27 AM
Response to Original message
11. China Says Trade Surplus Hit Record
http://www.nytimes.com/2006/08/10/business/10trade.html...

(free registration or try www.bugmenot.com )

HONG KONG, Thursday, Aug. 10 – China announced on Thursday its third monthly record trade surplus in a row, even as tensions between China and many of its trading partners have cooled somewhat.

Chinese exports exceeded imports by $14.6 billion in July, up from $14.5 billion in June and $13.0 billion in May. China has now accumulated a trade surplus of $76.0 billion in the first seven months of this year.

Officials in the United States, the European Union and Japan have been somewhat less outspoken in criticizing Chinese trade surpluses lately, and more cautious in demanding publicly that China allow faster appreciation in its currency, known as the yuan or renminbi. But many economists inside and outside China say that the trade surpluses are so large that they make it hard for the Chinese government to ratchet down economic growth to forestall inflation, and that it will be hard for China to control the trade surplus as long as the government is also intervening extensively in currency markets to keep the yuan weak.

<snip>

The People’s Bank of China has included regular expressions of concern about currency policy in its quarterly monetary policy reports, including in the second quarter report, issued on Wednesday. But it has not yet followed them up by allowing an accelerated pace of currency appreciation; after a 2.1 percent revaluation against the dollar in July, 2005, the currency has only climbed another 1.6 percent.

...more...
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Ghost Dog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:48 AM
Response to Reply #11
37. Japanese stocks gain (& fall) on positive (& negative) data
http://www.ft.com/cms/s/dad0107e-2825-11db-b25c-0000779...

Rises in Japanese domestically-focused stocks were counter-balanced by falls in some export-focused stocks on Thursday. The markets uncertainty was highlighted by a 0.2 per cent fall in the tech-heavy Nikkei 225 to 15,630.91, and a 0.3 per cent rise in the broader Topix to 1,582.88.

Domestic stocks rose on renewed confidence about the Japanese economy despite evidence of a US slowdown. This week has seen the publication of strong domestic figures for bank lending and machinery orders.

Among domestic sectors, retailers were up 1.4 per cent with real estate up 1.2 per cent and securities houses 1.1 per cent higher.

/...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 07:40 AM
Response to Original message
12. US charges Comverse Technology executives with stock options fraud
http://news.yahoo.com/s/afp/20060809/bs_afp/uscompanyfr...

WASHINGTON (AFP) - The US Justice Department charged three former executives of computer software firm Comverse Technology Inc. with alleged stock options fraud and for running a secret "slush fund."

The move came after top executives at Brocade Communications Systems were last month charged with securities fraud in a burgeoning crackdown on options backdating that threatens to embroil as many as 80 US companies.

The Justice Department said that it had charged former Comverse chief executive officer Jacob "Kobi" Alexander, former chief financial officer David Kreinberg and ex-general counsel William Sorin.

The government said it had seized 45 million dollars held in US bank accounts, including ones at Citigroup, and accused the trio of running a "money laundering" scheme that had funneled over 57 million dollars to Israel.

<snip>

The government said they "fraudulently" backdated the options to days when Comverse stock was trading at a low price, and below the market price on the date when the options were actually granted, thereby maximizing their gains.

"Alexander allegedly took for himself more than 300,000 dollars of those backdated options, for a paper profit of over 11 million," the Justice Department said.

...more...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:04 AM
Response to Reply #12
26. Judge Refuses to Drop Charges in Stock Option Backdating Case/Brocade Comm
http://www.nytimes.com/2006/08/10/business/10brocade.ht...

SAN FRANCISCO, Aug. 9 (AP) — A federal magistrate declined Wednesday to dismiss a criminal case against the first two executives charged in connection with the backdating of stock options, ruling that there were enough accusations for the case to continue.

Gregory L. Reyes, former chief executive of Brocade Communications Systems, and Stephanie Jensen, former vice president of human resources, were charged July 20 with securities fraud. The Justice Department said the backdating of stock options was, in part, cause for the company to restate financial results for fiscal years 1999 through 2004, cutting 20 cents a share off reported earnings.

Brocade, a maker of data storage devices, is based in San Jose, Calif.

Lawyers for Mr. Reyes and Ms. Jensen said Magistrate Judge Edward M. Chen of Federal District Court in San Francisco should dismiss the case because any backdating had been intended to attract employees, not to skew financial results. “Nowhere in this affidavit does it allege the defendants intended that consequence,” said Mr. Reyes’s lawyer, Richard Marmaro.

<snip>

The government says Mr. Reyes and Ms. Jensen regularly backdated board meeting minutes so that it appeared that the stock options committee had granted options when Brocade’s share price was relatively low. Prosecutors say no meetings occurred on those dates.

...more at link...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 07:43 AM
Response to Original message
13. A.I.G.'s Profit Falls 29 Percent on derivatives
Edited on Thu Aug-10-06 07:44 AM by UpInArms
http://www.nytimes.com/2006/08/10/business/10insure.htm...

The American International Group, the world’s largest insurer, said yesterday that second-quarter profit dropped 29 percent on a decline in the value of derivative investments held during the period.

Net income dropped to $3.19 billion, or $1.21 a share, from $4.49 billion, or $1.71, a year earlier, the company said in a regulatory filing yesterday.

The chief executive, Martin J. Sullivan, reported his fourth consecutive quarterly decline in net income as the value of derivatives hedging against foreign exchange and other risks dropped.

Mr. Sullivan, who succeeded Maurice R. Greenberg last year, is trying to restore confidence in the company’s earnings prospects after settling inquiries into its accounting and sales practices for $1.64 billion in February.

...more...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 08:25 AM
Response to Original message
17. pre-opening blather
09:15 am : S&P futures vs fair value: -3.9. Nasdaq futures vs fair value: -4.0.

09:00 am : S&P futures vs fair value: -2.8. Nasdaq futures vs fair value: -1.8. Still shaping up to be a weak start for equities as futures indications, albeit near their best levels of the morning, remain in negative territory. Transportation stocks will be in focus again as airlines are expected to be one of the hardest hit areas today after the U.S. raised the airline threat level to the highest point for the first time ever. Retailers, however, could be a bright spot following better than expected earnings reports from Target (TGT) and J.C. Penney (JCP) and amid a 1.0% pullback in oil prices.

08:35 am : S&P futures vs fair value: -5.5. Nasdaq futures vs fair value: -5.5. Bearish disposition persists in pre-market trading as futures indications continue to trade below fair value. Just hitting the wires, the Commerce Dept. reports that the U.S. trade deficit narrowed in June to $64.8 bln (consensus -$64.5 bln) from an upwardly revised May figure of -$65.0 bln while initial claims rose 7K to 319K (consensus 315K). Reaction in both stocks and bonds has been relatively muted, though, as underlying anxiety remains tied to renewed terrorism concerns.

08:00 am : S&P futures vs fair value: -6.1. Nasdaq futures vs fair value: -7.0. Early indications suggest that a week's worth of losses will carry over into this morning's open. Worries of an economic slowdown aside, today's concern rests with the U.K. and U.S. raising their terrorist alerts to the highest level after 21 people with possible links to al-Qaeda were arrested for plotting to bomb airlines flying from London to the U.S. Also not necessarily helping matters is speculation that a report at 8:30 ET will show the U.S. trade deficit widened to $64.5 bln in June from $63.8 bln in May.
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 08:27 AM
Response to Original message
18. Treasuries up on safety bid tied to plane bomb plot
Edited on Thu Aug-10-06 08:30 AM by UpInArms
http://today.reuters.com/news/articleinvesting.aspx?typ...

NEW YORK, Aug 10 (Reuters) - U.S. Treasury debt prices opened firmer on Thursday after UK police said they had thwarted a "mass murder" plot to blow up aircraft.

The terror plot overshadowed news that U.S. jobless claims rose 7,000 to 319,000 in the latest week and that the U.S. trade deficit narrowed almost imperceptibly to $64.80 billion in June from $64.97 billion in May.

"There's a safe-haven bid coming from the foiled terror plot in Britain," said Tom diGaloma, head of U.S. Treasuries trading at Jefferies and Company. "The equity market in Germany is down. The FTSE is off. European markets are getting beat up on the equity side on the terror plot."

In contrast, euro zone government bonds rose after European bourses opened weaker when Britain's security threat was raised to critical.

"There's a safehaven bid for both euro governments and for Treasuries," diGaloma said. "Heathrow is closed to incoming aircraft and we're keeping pace with what's going on in the euro govvie markets. That's why we're firmer in Treasuries."

The Treasury will sell $10 billion in 30-year bonds at 1 p.m. (1700 GMT), an auction likely to attract buyers.

...more...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 08:31 AM
Response to Reply #18
19. Fed adds bank reserves via 14-day system repos
http://today.reuters.com/news/articleinvesting.aspx?typ...

NEW YORK, Aug 10 (Reuters) - The Federal Reserve said on_Thursday it added temporary reserves to the U.S. banking system through 14-day 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
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 08:38 AM
Response to Reply #18
21. Printing Press Overdrive: Fed adds bank reserves via overnight system repo
http://today.reuters.com/news/articleinvesting.aspx?typ...

NEW YORK, Aug 10 (Reuters) - The Federal Reserve said on_Thursday it added temporary reserves to the U.S. banking system through overnight system repurchase agreements.

Earlier, it added $9.0 billion in temporary reserves through 14-day 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
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 12:33 PM
Response to Reply #18
58. Treasuries prices fall after weak 30-yr bond sale
http://today.reuters.com/news/articleinvesting.aspx?typ...

NEW YORK, Aug 10 (Reuters) - U.S. Treasury debt prices fell on Thursday after a $10 billion long bond auction met with weak demand.

The 30-year bond's <US30YT=RR> price slipped 13/32 for a yield of 5.09 percent, versus 5.06 percent both just before the sale and late on Wednesday.

The $10 billion of reopened 30-year bonds were sold at a high yield of 5.080 percent and a bid-to-cover ratio -- an indication of demand -- of 1.77, compared with 2.05 in February's sale.

bit more...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 01:19 PM
Response to Reply #58
66. "No one showed up" at the auction
http://today.reuters.com/news/articleinvesting.aspx?typ...

NEW YORK, Aug 10 (Reuters) - U.S. Treasury debt prices fell on Thursday after a weak auction of 30-year bonds, shrugging off an earlier safety bid on news of a foiled plot to bomb airliners.

"No one showed up" at the auction, said Rick Klingman, head trader on the U.S. Treasury desk with ABN AMRO in New York. "Overall it was a pretty sloppy auction; the exact opposite of what we saw when the bond was originally issued in February."

<snip>

"The bid-to-cover was pretty lame," said Beth Malloy, bond market analyst with Briefing.com in Chicago. "But the fact is that it was a reopening and the market generally has lowered expectations."

Overall, the investors gave the quarterly refunding a lukewarm reception, with a below average bid-to-cover ratio for an auction of $21 billion of 3-year notes <US3YT=RR> on Monday and an auction of $13 billion of 10-year notes on Wednesday.

...more at link...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 01:17 PM
Response to Reply #18
65. U.S. Treasury domestic finance chief (Quarles) to step down
http://today.reuters.com/news/articleinvesting.aspx?typ...

WASHINGTON, Aug 10 (Reuters) - The U.S. Treasury said on Thursday that Randal Quarles, undersecretary for domestic finance and a key player in the Bush administration's efforts to reform government-sponsored housing enterprises, will step down when Congress adjourns later this year.

Quarles, a former banking attorney who served at the Treasury from 1991 to 1993 and again starting in 2001, intends to return to the private sector.

In a resignation letter to President George W. Bush, Quarles cited "the burdens of this lengthy public service on my family have been great."

Quarles, who became undersecretary for domestic finance in August 2005, has recently been pressing Congress for legislation to reform regulatory oversight of housing finance giants Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research).

In numerous recent speeches, he has called for the Senate to pass a long-stalled bill to force them to cut their $1.45 trillion investment portfolios to reduce systemic risks he says they pose to the U.S. financial sector.

...more...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 08:35 AM
Response to Original message
20. 9:33 EST no terra in markets - recovery in progress
Dow 11,078.98 +2.80 (+0.03%)
Nasdaq 2,055.79 -4.49 (-0.22%)
S&P 500 1,264.43 -1.52 (-0.12%)

10-Yr Bond 4.923 -0.014 (-0.28%)


NYSE Volume 48,172,000
Nasdaq Volume 74,557,000
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 08:41 AM
Response to Original message
22. Gold dips as traders assess terror plot (???)
http://www.marketwatch.com/News/Story/Story.aspx?dist=n...

NEW YORK (MarketWatch) -- Gold futures reversed early gains to trade lower Thursday, as traders attempted to get to grips with news of a terror plot against air flights from the U.K. to the U.S. that sent oil and stock futures sharply lower.

Gold for December delivery was last trading down $5.80 at $656.40 an ounce on the New York Mercantile Exchange. On Wednesday, the contract found support in higher oil prices, a weaker dollar and Israel's decision to expand its offensive further into Lebanon.

The dollar gained against the U.K. pound early Thursday, but was lower against the yen and other currencies. Oil prices fell as the terror scare raised concerns of a slowdown in air travel. See Futures Movers.

"We are puzzled as traders this morning with gold lower as it should be up big," said Kevin Kerr, editor of Global Resources Trader, a newsletter published by MarketWatch. "The news is coming in so fast and furious that traders are almost in shock and are getting their bearings and deciding what to do next."

Kerr said he expects gold to rally once the gravity of the situation has set in and investors turn to the metal as a safe-haven instrument.

"We see $700 gold as a major possibility should these events escalate."

...more...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 08:44 AM
Response to Original message
23. 9:41 EST wobbling around in the red (blather on edit)
Edited on Thu Aug-10-06 08:50 AM by UpInArms
Dow 11,065.29 -10.89 (-0.10%)
Nasdaq 2,051.31 -8.97 (-0.44%)
S&P 500 1,262.55 -3.40 (-0.27%)

10-Yr Bond 4.923 -0.014 (-0.28%)


NYSE Volume 130,871,000
Nasdaq Volume 145,225,000

9:36 AM ET 8/10/06 NYSE DECLINERS OUTNUMBER ADVANCERS 16 TO 7

9:36 AM ET 8/10/06 NASDAQ DECLINERS OUTNUMBER ADVANCERS 7 TO 4

09:40 am : Yesterday's losses extend into this morning's open as reports that the U.K. and U.S. raised their terrorist alerts to the highest level, after 21 extremists were arrested for plotting to blow-up U.S.-bound flights, exacerbate ongoing worries of an economic slowdown. However, early losses remain modest in scope (i.e. the Dow briefly inched into the green) amid recognition that the terrorist plot was in fact foiled. Nonetheless, the absence of any significant news on the corporate front to get investors back into buying mode, like Cisco Systems' (CSCO 19.63 -0.15) upbeat sales forecast temporarily did yesterday, is placing even more emphasis on a renewed terrorist threat that has hit stocks around the world. To wit, major European bourses are all down at least 1.0%, led by a 2.0% drubbing on Germany's DAX Index. DJ30 -12.25 NASDAQ -11.50 SP500 -3.29 NASDAQ Vol 112 mln NYSE Vol 66 mln
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 08:54 AM
Response to Original message
24. House Broke
thanks to maxrandb and this DU thread

http://upload.democraticunderground.com/discuss/duboard...

http://msnbc.msn.com/id/14251743/print/1/displaymode/10... /

Some parts of the country have been particularly hard struck. In Georgia, there was one new foreclosure for every 127 households in the first quarter—a 300-percent increase from the year before. A $300 cell phone bill nearly cost Jacqueline and Danny Jackson their home in Lithonia, east of Atlanta. The couple had taken in three relatives who'd been displaced by Hurricane Katrina last fall, so their budget was already stretched to the limit. When they missed the cell phone payment, the phone company threatened to take them to court. The Jacksons paid off the bill, but couldn't afford the full payment on their mortgage that month. As the late fees added up, they fell further behind. They got a letter informing them that foreclosure proceedings were about to start, but were able to negotiate a payment plan with their mortgage company. Looking back, Jacqueline, 40, says, "I wish we would have had a little bit more money saved before we bought the house—it's not enough to have just enough."

Many other homeowners are learning the same lesson. Cassandra and Davey Parker took out a HELOC for $115,000 last June at a starting rate of 5.25 percent and used it to pay off car loans, credit card debt and the 6 percent fixed-rate mortgage on their four-year-old house. They thought they were saving themselves money in the long run. But by last month, the monthly payments has nearly doubled from the initial $475 to $800.The rate is now at nearly 8 percent—more than they had been paying on their original mortgage, which they'd used the bulk of the credit line to pay off. "And it just keeps going up," says Cassandra Parker. "It's just like a different type of credit card."

Whether cases like these are the harbingers of a major national economic crisis remains to be seen. For now, economists say that as long as employment remains steady, most—like the Jacksons—will be able to weather the storm. "It's not necessarily a disaster in the making—as long as the job market stays the same," says David Berson, chief economist at Fannie Mae. "But if things go wrong in the economy, there could be much worse problems." Then millions of families could find themselves in the Howells' situation: at risk of losing the homes that seemed like such a sure investment just a few years ago.
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 08:56 AM
Response to Reply #24
25. For Housing, a Finger in the Wind
http://www.nytimes.com/2006/08/10/business/10housing.ht...

He would not go so far as to call it a bubble, but Alan Greenspan, in response to a question in the spring of 2005, acknowledged that there were signs of “froth” in the housing market.

More than a year later, the froth has all but disappeared: sales of homes are falling, for-sale signs are sprouting across the nation’s front lawns and price increases have slowed to a crawl.

No major industry is more sensitive to interest rates than housing.

When Mr. Greenspan, as chairman of the Federal Reserve, sharply cut short-term interest rates to help the economy recover from the collapse of the technology boom, he added fuel to the national home boom that came afterward.

<snip>

Earlier this decade, housing led the American economy out of a short-lived recession and the jobless recovery that followed. More recently, rising home values have helped feed consumer spending by permitting Americans to refinance mortgages and take out home equity lines of credit.

...more...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:17 AM
Response to Reply #24
27. Hot Market for Second Homes Hits Slump
http://www.nytimes.com/2006/08/10/business/10homes.html...

WESTHAMPTON, N.Y. — The brand new 6,000-square-foot vacation home, backing on a boat dock on Moriches Bay, has been on the market for more than a year. After plenty of showings, but no offers, the investor who built the house recently cut the price twice, by a total of $600,000, to $4 million.

It has still not been sold. To be sure, the price reductions have created more interest, according to the agent representing the owner, and he now hopes that it will be sold right after Labor Day, a prime season for home transactions in the Hamptons.

“My feeling is that everybody is waiting for the dust to settle before they make their big decision,’’ said the agent, Ira Birns of Prudential Douglas Elliman. But, he acknowledged ruefully, “there is a lot to choose from.’’

It is not just the most expensive vacation homes that are going begging. The once-bustling deal making in a wide variety of popular locations for second homes — areas like Florida, the Jersey Shore and Lake Tahoe, as well as the high-price playground on the East End of Long Island — has slowed markedly in recent months.

As the overall housing market weakens, the interest in buying vacation homes, from the most modest condominiums on up, appears to be falling faster. Unlike most metropolitan areas — where underlying demand and the normal turnover in primary homes as a result of job moves, new households and family changes provide a more solid floor under prices — the second-home market relies on a different set of motivations that tends to exaggerate booms and busts.

...more...
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hatrack Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:49 AM
Response to Reply #27
38. I weep, I weep for you, oh owner of the $4 million 6K SF vacation home!
Your travails have touched my heart!

:eyes:
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 02:08 PM
Response to Reply #24
72. Three-week decline for rates
Mortgages fall back to spring levels; will refinancing follow?

http://www.marketwatch.com/News/Story/Story.aspx?guid=%...

CHICAGO (MarketWatch) -- Mortgage rates fell for the third straight week as the Federal Reserve paused in its interest-hike campaign, with the benchmark 30-year loan tumbling to its lowest level in 3 1/2 months, Freddie Mac said Thursday.

snip>

"The weaker than expected jobs report combined with the Fed's decision to pass on raising rates at its last meeting led directly to lower rates this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Interest rates for fixed-rate mortgages have dropped to levels last seen in the spring of this year." See more on the jobs report.The respite in interest rate should hold, economist say. Most housing analysts do not expect mortgage rates to climb much higher the rest of the year.

"Lower rates may bring about a rise in refinancing activity as homeowners with ARMs getting ready to reset decide to take advantage by locking into a fixed-rate mortgage now rather than waiting until the adjustment date when rates may be higher," Nothaft said.

more...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:21 AM
Response to Original message
29. 10:19 EST numbers and blather
Dow 11,061.13 -15.05 (-0.14%)
Nasdaq 2,055.05 -5.23 (-0.25%)
S&P 500 1,263.25 -2.70 (-0.21%)

10-Yr Bond 4.931 -0.006 (-0.12%)


NYSE Volume 433,469,000
Nasdaq Volume 353,275,000

10:00 am : Equities are still modestly on the defensive as the bulk of industry leadership remains negative. Health Care has been a notable sector losing ground, as HMOs are under pressure after UnitedHealth Group (UNH 47.40 -1.58) was downgraded amid delaying its 10-Q filing. Pacing the way lower, though, is Energy as thwarted terrorist attacks on airplanes, which could result in lower demand for jet fuel, push oil prices below $76 a barrel (-1.2%). Benefiting from falling oil prices, however, have been retailers, which has given Consumer Discretionary a lift, and transportation stocks, which have helped the Industrials sector trim some of its recent losses. DJ30 -5.84 DJTA +0.2% NASDAQ -5.78 SP500 -1.93 XOI -0.6% NASDAQ Dec/Adv/Vol 1710/661/249 mln NYSE Dec/Adv/Vol 2020/602/196 mln
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:32 AM
Response to Original message
32. market statistics:
10:29 AM ET 8/10/06 NYSE VOLUME 337.8M

10:29 AM ET 8/10/06 NASDAQ VOLUME 407.7M

10:29 AM ET 8/10/06 NYSE HAS 948 ADVANCERS

10:29 AM ET 8/10/06 NYSE HAS 1,884 DECLINERS

10:29 AM ET 8/10/06 NYSE HAS 145 ISSUES UNCHANGED

10:29 AM ET 8/10/06 NASDAQ HAS 973 GAINERS

10:29 AM ET 8/10/06 NASDAQ HAS 1,566 LOSERS

10:29 AM ET 8/10/06 NASDAQ HAS 159 ISSUES UNCHANGED

10:29 AM ET 8/10/06 NYSE HAS 30 ISSUES SETTING 52-WEEK HIGHS

10:29 AM ET 8/10/06 NYSE HAS 81 ISSUES SETTING 52-WEEK LOWS

10:29 AM ET 8/10/06 NASDAQ HAS 18 ISSUES SETTING 52-WEEK HIGHS

10:29 AM ET 8/10/06 NASDAQ HAS 151 ISSUES SETTING 52-WEEK LOWS
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skids Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 11:30 AM
Response to Reply #32
54. Let me guess...

...a rush to cash in on a "disaster rally" in energy?

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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 01:22 PM
Response to Reply #32
67. afternoon market statistics:
2:20 PM ET 8/10/06 NYSE VOLUME 1.08B

2:20 PM ET 8/10/06 NASDAQ VOLUME 1.23B

2:20 PM ET 8/10/06 NYSE HAS 1,776 ADVANCERS

2:20 PM ET 8/10/06 NYSE HAS 1,422 DECLINERS

2:20 PM ET 8/10/06 NYSE HAS 140 ISSUES UNCHANGED

2:20 PM ET 8/10/06 NASDAQ HAS 1,713 GAINERS

2:20 PM ET 8/10/06 NASDAQ HAS 1,214 LOSERS

2:20 PM ET 8/10/06 NASDAQ HAS 135 ISSUES UNCHANGED

2:20 PM ET 8/10/06 NYSE HAS 29 ISSUES SETTING 52-WEEK HIGHS

2:20 PM ET 8/10/06 NYSE HAS 34 ISSUES SETTING 52-WEEK LOWS

2:20 PM ET 8/10/06 NASDAQ HAS 15 ISSUES SETTING 52-WEEK HIGHS

2:20 PM ET 8/10/06 NASDAQ HAS 80 ISSUES SETTING 52-WEEK LOWS

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Ghost Dog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:39 AM
Response to Original message
34. Bourses stay lower as London security alert goes on (midday)
http://mwprices.ft.com/custom/ft2-com/html-story.asp?da...

Europes bourses fell sharply in mid-session on Thursday after British police said they had thwarted a plot to blow up aircraft in mid-flight. Britain raised its security threat level to critical, which means it expects an attack imminently. Strength in the euro and a late sell off on Wall Street as the price of oil climbed also weighed on European equities. The FTSE Eurofirst 300 fell 1.5 per cent to 1,320.78 with the Xetra Dax down 2.1 per cent to 5,585.72, the CAC-40 off 1.5 per cent to 4,952.28 and the FTSE 100 in London down 1.4 per cent to 5,781.2. Sterling was volatile against the dollar, initially falling across the board on the news, before recovering to sit just 0.25c lower at $1.9017 to the US dollar and 0.1p weaker at 0.6760 to the euro. This morning, the euro hit a record high against the low-yielding yen while the dollar inched towards a two-month low versus the euro on differing interest rate expectations. A stronger euro may impact on eurozone exporters. British Airways fell 4.1 per cent to 373.3p, Ryanair fell 4 per cent to 7.25, and Lufthansa fell 4.5 per cent to 13.99 on security uncertainty and the impact on travel sentiment as UK airports have introduced a ban on all hand baggage on aircraft leaving the UK, on government advice. Ferrovial, owner of UK airports operator BAA, fell 1.9 per cent to 61.10. Tui, the German tourism and shipping group, sank 5.8 per cent to 14.64 as it warned costs at its shipping division would hit this years earnings. The company blamed bunker fuel costs, pressure on freight rates and the costs of integrating its $2bn purchase, container shipper CP Ships, for the warning.
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Ghost Dog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:42 AM
Response to Reply #34
35. London stays low as terror threat intensifies (midday)
http://mwprices.ft.com/custom/ft2-com/html-story.asp?da...

London equities stayed firmly in negative territory on Thursday, as Airlines and transport stocks were hit hard following news of a foiled terrorist plot to blow up aircraft in mid-flight between the UK and US. The FTSE 100 traded down 1.3 per cent to 5,781.8. Shares in British Airways dropped 3.5 per cent lower at 376p as security at all British airports was increased and additional security measures were put in place for all flights. Gert Zonneveld, an analyst at Panmure Gordon said BAs shares were likely to be more sensitive to the news than Ryanair and EasyJet, the two low-cost carriers, due to its higher profile name and route network across the North Atlantic. EasyJet lost 3 per cent to 409p and Ryanair fell 2.1 per cent to 7.34p. Travel companies MyTravel Group and First Choice Holidays fell 3.8 per cent to 206p and 2.3 per cent to 211p respectively, while hotel group Intercontinental dropped 3.7 per cent to 833.5p However, David Buik at Cantor Index said it might be folly to blame the decline entirely on the terrorist coup. It was the trigger, not necessarily the bullet, he said. The market was already looking very heavy .The results season is almost over and the outlook on both sides of the pond for the third and fourth quarters looks murky.
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Ghost Dog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:44 AM
Response to Reply #35
36. Bonds rise as investors seek safe havens
http://mwprices.ft.com/custom/ft2-com/html-story.asp?da...

Government bonds advanced on Thursday as investors bought safe-haven assets after the UK was put on its highest state of terrorism alert. <snip> Equity markets stumbled, and bond markets rose as a result. In late morning trade, the yield on the two-year gilt fell 2.8 basis points to 4.903 per cent and the yield on the 10-year gilt lost 2bp to 4.660 per cent. Meanwhile, in the eurozone market, the yield on the two-year Schatz was down 2.8bp to 3.527 per cent while the 10-year Bund yield was 2.5bp lower at 3.905 per cent. The security alert overshadowed other market news. The European Central Bank released its monthly bulletin, raising its forecasts for inflation and growth in 2006. Though it also signalled that interest rates were likely to move higher, it was little surprise to a market that has already been pricing in further monetary tightening.

/...

Note inverted Brit (not Euro) yield-curve...
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Ghost Dog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 09:52 AM
Response to Reply #34
39. European drought verging on disaster
Edited on Thu Aug-10-06 09:54 AM by Ghost Dog
http://www.ft.com/cms/s/c67e39d0-27c5-11db-b25c-0000779...

As Europe wilts under a blistering sun, water levels in the regions rivers and reservoirs are plummeting. The night skies over Spains forests glow orange with deadly wildfires. Cracked mud-flats border shrinking waterways. Fish lie stranded on the dry beds of lakes and rivers.

Water levels on parts of Italys longest and most commercially vital river, the Po which has stirred awe with the fury of its floods have dropped to their lowest in living memory. On the Rhine, Europes busiest waterway, low waters have forced ships to carry less cargo and make up for lost revenue with surcharges of up to 50 per cent. Spains reservoirs were filled to just 45 per cent of capacity as of August 7, and in one case to 13 per cent, approaching the point at which only unusable sludge remains.

Desperate to conserve water, Paris has for the first time decided not to dampen the dusty paths of its public gardens. English gardeners are banned from using hosepipes, while swimming pools remain empty in many Spanish towns.

Farmers predict a sharp fall in crops and face losses of billions of euros. In Italy, the Agricultural Confederation, a farmers association, says production of beets, maize, rice and animal fodder will approach record lows, while the grape harvest is expected to be the lowest in two decades. Italys farmers calculate losses so far this year at 500m ($644m, 337m). Ermete Realacci, head of a parliamentary environment committee, said the agricultural emergency was verging on a natural disaster.

In Spain, where farmers face watering restrictions of up to 60 per cent, the cereal crop is set to be 17 per cent lower than the average over the past five years. Smaller harvests are expected in Germany and Poland, where the government has promised up to 500m zlotys (128m) to support farmers who lose more than a third of their income because of drought. The baking sun has ripened some crops early, forcing farmers to leave fruit and vegetables unharvested. In the UK the worlds second biggest frozen pea producer some growers have had to leave 20 per cent of their harvest in the field to be taken up when dry for animal feed.

Spanish farmers are planting fewer thirsty crops such as wheat, corn and rice and, in the parched province of Valencia, are digging up small trees to sell for ornamental use. The French ecology ministry says a 20 per cent drop in the farmland devoted to corn over the past four years has saved 360m cubic metres of water the consumption of 6m people.

French livestock farmers have been forced to dig into their winter stocks of hay, says Jean-Michel Delmas of the French agricultural union FNSEA. He warns that stress caused by the heat has thrown cattle off their usual fertility cycles and veal production could fall 10-15 per cent.

The European Commission has given permission to farmers in nine countries including France, Italy, Germany and Spain to graze livestock on set-aside land normally off limits until August 31 to prevent over-production.

The drought is not bad news for every farmer. In the UK, harvests of some soft fruit are expected to be bigger than normal, as is winter-sown barley, while farmers whose crops escape damage can command higher prices.

<snip>

Lower hydroelectric and nuclear output has forced some countries to crank up more costly oil-burning generators, sending energy prices soaring. The heat has warmed the rivers on which Germany, Belgium and France rely to cool power plants. With the temperature of the Rhine last month reaching 28C in places, Germany restricted the amount of cooling water nuclear power stations could siphon from tributaries. France raised the temperature ceiling at which power stations are allowed to drain water into rivers, but EDF, the countrys largest electricity producer, was nonetheless forced to import power.at prices as high as E160 per megawatt hour.

The drought has exposed some countries mismanagement of the little water available. Italy has relatively high rainfall but some experts estimate 40 per cent of supplies are lost through leaking infrastructure.

Spains environment ministry says at least 80 per cent of water used for agriculture is wasted. The sector consumes about 75 per cent of the countrys water double the average in the EU but accounts for only 5 per cent of gross domestic product.

<snip>

With droughts expected to hit Europe with growing frequency and parts of the Mediterranean region at high risk of desertification, long-term fixes remain elusive. The Spanish government is building 25 desalination plants in a bid to boost supply but the plants are voracious consumers of energy and the water they produce is expensive.

Environmentalists say governments must invest in reservoirs, better water canals, alternative energy sources and more efficient irrigation systems. Until they do, they can exhort consumers to turn off the tap or turn it off themselves.

/more...
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 10:47 AM
Response to Reply #39
46. Drought-related losses mount in Missouri
http://www.chron.com/disp/story.mpl/ap/business/4107273...

SPRINGFIELD, Mo. Pastures are browning and dusty across much of Missouri. Fewer barges can navigate the low water on the Mississippi and Missouri rivers. Water utilities are spending more to get mud out of sluggish rivers.

A severe drought in much of the state is entering its 18th month, and the costs are mounting _ even if it is too soon to tally them, experts say.

The online Drought Monitor of the National Drought Mitigation Center shows ugly swaths of brown and red across the central and southern United States. The National Climatic Data Center said the country appears to be on course to top $1 billion in drought-related losses this year, although it's too soon for official figures.

There are no estimates for drought damage in Missouri. "It's yet to be seen," said Judy Grundler from the Missouri Department of Agriculture.

more...


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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 10:53 AM
Response to Reply #39
47. Made me think of this article I posted last Friday
Had to find a different source for the article....

http://www.dailykos.com/storyonly/2006/8/4/181557/9913


A deadly combination of heat and drought is slowly wreaking a trail of devastation across much of the globe, and the full extend of this scourge will only be felt as winter nears.

The current phenomenon took meteorologists by surprise as it was unusually global in its reach. Like Murphy's Law, everything that could go wrong did.

Nourishment for winter burnt up under an unusually fiery weather, along a food chain that progressed from withered wheat crops to cattle that were hastily sold off for lack of grazing grounds.

Crops that survived wilted under the sun, yielding produce of lowered quality and quantity; leading ultimately to higher prices. Alarmingly, these were scorched in the surplus granaries of the United States, Europe and Australia.

snip>

Lester Brown, President of the Earth Policy Institute, predicts that 20 million tons of global harvest may have winnowed up as summer chaff.

In June, he warned that the global cupboard - or "reserve" - of grains were at its lowest levels since the early 70s. According to this calculation, there's enough basic grain to keep people alive for 57 days, if a combination of disasters strike.

And there is no better place for that to begin than in the Middle East.

more...

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Ghost Dog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 01:25 PM
Response to Reply #47
69. This is the future, yes.
Edited on Thu Aug-10-06 01:26 PM by Ghost Dog
I can tell you, I have grown to love these often fiercely hard, dry Spanish lands in the twenty years of my self-exile here (and I live, usually, in two of the greenest corners of it).

But it is now burning, will continue to dry up and burn. The Sahara Desert is encroaching. To which, in maniacal manner, 'they' (politicians and businesspeople) are rapidly adding an ugly, even more unsustainable, concrete desert.

An injured hard man, a Brit mercenary of many incursions and wars, once asked me, in a squat in London: "Would you rather have to face extreme heat or extreme cold?". I can give you the answer immediately. If you're too cold, you can do something about it (and there'll usually be frozen water around to drink). If you're too hot - there's not a hell of a lot you can do. And if you have no water, you're quickly, painfully, finished. He nodded, I'd like to say sagely.

If we, collectively, get that far, prepare for the water wars of the near future.
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Ghost Dog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 01:37 PM
Response to Reply #34
71. Bourses close lower as terror worries return (close)
http://mwprices.ft.com/custom/ft2-com/html-story.asp?da...

Thursday mornings terror alerts, a strengthening euro and high oil prices led to lossses on European bourses during a turbulent session. The FTSE Eurofirst 300 lost 0.8 per cent to close at 1,329.72 with the Xetra Dax 1.3 per cent at 5,630.96 and the CAC-40 off 1 per cent at 4,976.64. Shares in airlines and hotels headed south. British Airways led the declines, falling 5.1 per cent to 370.8p. Air-France KLM fell 3 per cent to 19.15, Italys Alitalia shed 2.1 per cent to 0.8635, Irish budget carrier Ryanair lost 3.4 per cent to 7.29 and Germanys Lufthansa slid 3.3 per cent to 14.17. Brokers were largely of the view that share-price weakness would be short term. Panmure said it was not changing its buy rating on airline stocks, while HSBC retained its overweight rating on Lufthansa and raised its target to 20 from 17.30. Strategist Jonathan Wober, added that Lufthansas increasing focus on value creation was responsible for the move. EADS fell 5 per cent to 23.33 on fears that this and any future attempt to bring down a passenger plane could result in a slump in airline traffic and a knock-on fall in aircraft orders. In addition, Credit Suisse downgraded the stock to neutral from outperform on concerns of futher potential problems with delivery.
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 10:09 AM
Response to Original message
42. 11:07 EST All is Good (blather on edit)
Edited on Thu Aug-10-06 10:16 AM by UpInArms
Dow 11,094.11 +17.93 (+0.16%)
Nasdaq 2,062.96 +2.68 (+0.13%)
S&P 500 1,266.89 +0.94 (+0.07%)

10-Yr Bond 4.937 0.00 (0.00%)

NYSE Volume 751,686,000
Nasdaq Volume 585,936,000

11:00 am : Major averages now trade in split fashion but there isn't a strong sense of conviction on either the bullish or bearish side of the aisle. Oil prices spiking to session lows and below $75 a barrel (-1.8%) following a larger than expected draw down in weekly natural gas inventories has helped improve sentiment; advancers on both the NYSE and Nasdaq continue to narrow the bearish edge owned by decliners since the open. Be that as it may, subsequent weakness in Energy (-1.3%), today's worst performing sector, has also removed leadership from the largest contributor to earnings growth on the S&P 500 for the last several quarters. To wit, Dow component ExxonMobil (XOM 68.44 -0.53), the most profitable company in the world, is at session lows; 26 out of 29 Energy components are posting losses. DJ30 +10.12 NASDAQ -1.67 SP500 -0.82 XOI -1.3% NASDAQ Dec/Adv 1399/1250 NYSE Dec/Adv/Vol 1612/1325/472 mln
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RawMaterials Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 10:11 AM
Response to Original message
43. Zimbabweans suffer cash chaos
Edited on Thu Aug-10-06 10:12 AM by RawMaterials

Zimbabweans are facing chaos and confusion as they try to deposit and spend their cash before it becomes worthless on 21 August

The central bank decided to lop three zeros off Zimbabwean banknotes in an attempt to help people deal with spiralling inflation which stands at more than 1,000%.

But last week's surprise devaluation has led to a bureaucratic nightmare for businesses and consumers.

snip..

Supermarkets are labelling prices with the new values, but are accepting and mainly dealing with the old currency.

"This is causing a great deal of confusion about the new values. The first day they knocked the three noughts off people went into the supermarket near where I work and were going crazy buying everything," she said.

"Then of course they got to the till and they didn't have enough money."

snip..

Spending spree

A 27-year-old artist admitted that the move has forced her to open her first bank account this week.
"I couldn't see the point of it (a bank account) before. I kept my money under my pillow because by the time you bank it you can't use it because it loses so much value."

Although, unlike some, she said she is not worried about losing her savings.

"I keep an excess in US dollars so that if anything happens I know at least I'll have some money," she said.



http://news.bbc.co.uk/2/hi/africa/5257766.stm

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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 10:39 AM
Response to Original message
45. Shrill Statistical Alarm Bell
http://www.prudentbear.com/archive_comm_article.asp?cat...

The Q2 2006 Advance estimates of GDP from the BEA recently were dramatic. You might not have fully noticed because market indexes soared and Middle East violence stole the headlines away. This report is well worth a second glance. The Q1 and Q2 GDP comparisons are no less breath taking than the before and after photos of Beirut that dominate TV news of late.

Every indicator of macroeconomic health and vigor either weakened or turned negative with the exception of private expenditure on services. The rate of increase in consumer prices- including food and energy- ran up just shy of 50%. Q1 2006 readings showed acceleration of 2.7% and Q2 advance readings ran at 4%. The preferred and lower core rate- excluding food and energy- actually fell from 3.0% to 2.9%. I guess you can predict which number will get the attention?

Real final sales- which exclude inventory changes and measure the actual transactions accomplished - plunged more than did real GDP. Real final sales grew at 2.1% in Q2 down from 5.6% in Q1. Durable goods sales and residential fixed investment led the declines falling .5% and 6.3% respectively. The auto sector alone explains .34% drop in real GDP. Non-durable sales also fell sharply but stayed in positive territory in absolute terms. Service sales registered an increase.

Given the consumer spending growth deceleration you might have thought that savings were up? How profoundly wrong you would be! The Q2 private savings rate was 50% greater in negative rate territory than its terrifying Q1 reading. The Q2 2006 real personal savings rate was -1.5%! Thus, inventories rose and big ticket spending on residential investment, durables and autos tanked as consumers spent more than all they had across the second quarter. This is very meaningful and significantly scary. The less attention and consideration this draws the more alarmed you should be. I suppose the silver lining might be that markets have 100% ignored this information so far.

more...
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 10:59 AM
Response to Original message
50. PIEHOLE ALERT: Terra! Terra! Terra!
11:54 AM ET 8/10/06 BUSH: PLOT A REMINDER THAT U.S. AT WAR WITH TERRORISTS

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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 11:23 AM
Response to Reply #50
52. And the campaign begins. Whether true or fabricated, this plot is like
manna from the heavens for Bushco. Seems like such a coincidence, again.

Embattled White House seeks Iraq upper hand
http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile...

snip>

While analysts puzzled out the relative importance of Iraq, anti-incumbent sentiments and other factors in Liebermans defeat, the White House seized on Lamonts win as a sign of Democratic weakness on national security.

Vice President Dick Cheney held a conference call with reporters to accuse the opposition party of a purge and accused the Democrats of advocating not just withdrawal from Iraq but full retreat from the global war on terrorism.

Islamist extremists clearly are betting on the proposition that ultimately they can break the will of the American people in terms of our ability to stay in the fight and complete the task, said Cheney.

He suggested that the Democrats increasingly believe that somehow we can retreat behind our oceans and not be actively engaged in this conflict and be safe here at home, which clearly we know we wont, we cant, be, he said.



Fuel For The Fear-Mongers' Fire
http://www.tompaine.com/articles/2006/08/10/fuel_for_th...

Only the most paranoid might conclude that todays arrests in Britain in connection with an alleged terror plot was timed to coincide with Republican mobilization for the fall elections. But you have to concede that the timing is at least convenient.

snip>

The Thursday morning news conference by Homeland Security Secretary Michael Chertoff and Attorney General Alberto Gonzales, who announced that the domestic terrorist alert level was being elevated for both domestic and international flights, did not stray into overt politics. But it did not have to. The ground was already well-laid the afternoon before by the Bush administrations top officials and by the Republican National Committee.

snip>

The Republican National Committee gleefully posted Cheney's statement on its Web site, which also contains an audio montage of out-of-context statements by Democrats under the title, Weak And Wrong: Meet the Defeat-ocrats.

Meanwhile, at President Bushs Crawford, Texas, ranch, Press Secretary Tony Snow unleashed a barrage that not only hit the Democrats who were his rhetorical target but also took out President Bushs father, George H. W. Bush, as collateral damage:

And the real question for the American people to ask themselves is, do you take the war on terror seriously, with all the developments going on around the world? And, if so, how do you fight it to win? There seem to be two approaches. And in the Connecticut race one of the approaches is ignore the difficulties and walk away.

Now, when the United States walked away, in the opinion of Osama bin Laden in 1991, bin Laden drew from that the conclusion that Americans were weak and wouldn't stay the course, and that led to September 11th.


Now, every time an American goes through heightened security at an airport, he or she will hear in the background the drumbeat of Republicans saying, We are fighting to keep you safe, while the Democrats want to give up the fight and let the terrorists run amok."



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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 02:35 PM
Response to Reply #52
75. Looks like Bushco knew this was in the works while they were spewing
all that shit over the Lieberman loss.

http://www.democraticunderground.com/discuss/duboard.ph...

His remarks came a day after the White House orchestrated an exceptionally aggressive campaign to tar opposition Democrats as weak on terrorism, knowing what Democrats didn't: News of the plot could soon break.

and then there's this one

http://www.democraticunderground.com/discuss/duboard.ph...

The US info apparently made it seem that the threat was immediate and that the terror attacks had been brought forward.


So, once again, not some miracle manna from heaven after all. :eyes:

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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 01:12 PM
Response to Reply #50
64. Bush Versus the Constitution
http://www.americanchronicle.com/articles/viewArticle.a...

Last December, when Congressman John Conyers released a huge report documenting the evidence that Bush and Cheney had lied us into a war, he also introduced a bill (H. Res. 635) to start a preliminary investigation of the matter and make recommendations on impeachment. This showed far more courage, not to mention long hours of work, than any other member of Congress had mustered at that time or since. But it was disingenuous. Impeachment is itself an investigation; a preliminary investigation is redundant. And any investigation is unnecessary when the impeachable offenses are part of the public record.

Last week, Conyers released an expanded report, including new superfluous evidence of proven crimes related to the war, plus a lengthy Section 2 focused on illegal spying programs. The evidence of blatant criminality and threat to the Constitution in this new section is devastating. And the crimes have been confessed to. Bush has merely offered a series of completely implausible claims that his actions are legal, a series of claims carefully refuted in this report. So, the situation of last December has grown more extreme. Impeachable offenses are public knowledge, backed by overwhelming evidence and public confession. But, rather than introducing articles of impeachment, Congressman Conyers has backed off promoting H. Res. 635. Not a single cosponsor has been added to that bill since Democratic "leader" Nancy Pelosi, some months back, ordered the Democrats in Congress to stay away from impeachment.

Ironically, Pelosi's home turf is actively ignoring her. San Francisco and Berkeley have put impeachment on the ballot for voters this November, as have Champaign and Urbana in Illinois. These cities are likely to see an increase in voter turnout, especially among Democrats. In other words, they will model a winning strategy for a party that is nationally dead-set on losing. Dozens of towns and cities have already passed impeachment resolutions, and three state legislatures are working on passing resolutions. Only one state is needed to compel the U.S. House to begin impeachment proceedings. It would be nice to see Vermont or Illinois become that state. It would be even nicer to see California come through.

Now, I have yet to hear a single citizen lobbyist for H. Res. 635 report that their Congress Member, of whichever party, won't support it because there's not enough evidence of wrongdoing. Rather, Congress Members, of both parties, won't support it because impeachment is "extreme" or "controversial" or "partisan." The open secret here is that any investigation would lead inevitably to impeachment. Thus we have the current situation: a Congress that does not investigate.

more...
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 11:02 AM
Response to Original message
51. Union militancy grows as mining profits rise
http://today.reuters.com/news/articlenews.aspx?type=reu...

LONDON (Reuters) - Emboldened by high profits at mining companies, trade unions demanding higher wages are stretching industrial relations to the breaking point.

The highest-profile strike is at Escondida in Chile, the world's biggest copper mine, where workers downed tools on Monday when the mine's owners, BHP Billiton (BLT.L: Quote, Profile, Research) (BHP.AX: Quote, Profile, Research) and Rio Tinto (RIO.L: Quote, Profile, Research), refused to meet wage demands.

Escondida workers see their fight for higher wages as a fight for all unions.

Pedro Marin is Escondida union secretary. His family has been in mining in Chile since the nitrate mines of the 1800s. He said nothing has changed since then, when foreign companies came in and exploited local labor to enrich themselves.

"This is not just about us (at Escondida), it's about all Chilean miners," he said. "We will give an example for all the other unions to follow."

Strong words, but it's not just Chile where unions have become more militant.

more...
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 11:27 AM
Response to Original message
53. Knights of the State Round Table (Willie)
http://www.321gold.com/editorials/willie/willie081006.h...

Key fundamental changes in the USEconomy are underway. Some of these changes have motivated extreme reactions by the USGovt, regarding war to secure energy supply, strain on strategic alliances, encouragement of enemy alliances, and tight partnerships with large domestic corporations. They act much like Knights of the Round Table, privy to state secrets, cooperative to formulate strategic policy, agents to preserve the union. The geopolitical stage has morphed into a chess game, overloaded with strategic requirements, where brute force seems an unsuccessful alternative to cunning and compromise. The United States is finding itself awkwardly outside looking in, as its monolithic power has been diminished. The game is changing faster than the US is capable of adapting, so it seems. On the front of the emerging powerful state corporations, large US-based multi-national corporations have emerged. They seem less adapted to compete against Russian and Chinese adversaries, and more capable of exploit war and financial chicanery. Their prominence almost forebodes more military intrigue and more financial warfare.

The future will be interesting to observe, as US firms must strive toward cooperative alliances with the USGovt for the benefit of energy supplier nations, to improve the economies and standard of living in those nations, rather than the present setup, where their ostensible modus operandi seems to pilfer from the US taxpayer, to collude in USTBond speculation, and to serve as agents in currency & gold control games. If the United States is to secure a steady reliable source of energy supply, our nation must change the culture of its multi-national corporations. They must work toward a "win-win contract" rather than the increasingly exploitative direction of the last several years.

Russia and China have embarked on different pathways. Two very different juggernaut stories have been inserted onto the global landscape, with uncertain geopolitical consequences to come. Russia and China are building gigantic state dominated economies. The planning and execution has yet to undergo critical tests. Whether political order can be fostered via equitable distribution of wealth and beneficial exploitations of natural resource wealth in their respective nations, that is to be seen.

TIGHT RUSSIAN STATE CORPORATIONS
Russian President Putin has managed to assemble a veritable "Who's Who" of former KGB officers to lead a raft of important growing Russian corporations. Each firm appears to be following a certain blueprint business model, of state majority control, tight coordination with the Russian state government, first in line opportunity to tap national resources, and political homage to Putin without challenge. Minority interest is to be sold in numerous such firms, mostly to foreign investors. Putin has shown his cards early, as he plans to use state run firms to extend their tentacles into the West, Putin has directed progress to eliminate all competition against these selected favored firms, not only from foreign sources but from domestic sources not loyal to him. He seems hellbent to invalidate past sweet deals to his opponents, and to quash deals to anyone beholden to the West. He is as efficient as he is ruthless. He is emerging as a textbook autocrat. Time will tell whether his corporate giants are as efficient. These firms span the entire spectrum of industry. Some might call the US leadership similar in autocratic tendencies. In sharp contrast, US leaders lately are not as crafty, efficient, or skilled in the game of chess on the geopolitical stage. Conflict is growing with Russia. The war of words has reached fever pitch between Putin and US VP Cheney, as states almost never engage in smooth competition for energy historically. Putin is quoted to have said that Cheney criticism is off the mark, "He took another bad shot, just like on his hunting trip." Ouch.

more...
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 11:34 AM
Response to Original message
55. Central Bankers Operating behind "Smoke and Mirrors"
http://www.321gold.com/editorials/sirchartsalot/dorsch0...

The synchronized phase of monetary tightening by the world's three largest central banks, the Federal Reserve, the Bank of Japan (BoJ), and the European Central Bank (ECB), appears to be fizzling-out almost as soon as it started. The Fed is widely expected to wind down its rate hike campaign on August 8th, less than a month after the BoJ raised its overnight rate for the first time in five years.

The Fed is moving to the sidelines to join the central banks of Canada and Korea, which declined to raise their overnight loan rates last month. That might encourage other central banks to keep their interest rates on hold. A residual quarter-point rate hike by the BoJ to 0.50% in the fourth quarter, and two quarter-point rate hikes by the ECB to 3.50% are expected, before the big-3 tightening spree flickers out.

Central bankers are utilizing a strategy of "Smoke and Mirrors," mesmerizing the traders with baby-step rate hikes, but falling far short of the levels needed to shrink their money supply. Whether the central bank is printing money to maintain an artificially low exchange rate, or flooding the banking system with money to peg an artificially low interest rate, the net result is the same - monetary inflation.

The strategy of "smoke and mirrors" was first announced on May 8th, when G-10 central bankers agreed that a new approach was needed to combat the "Commodity Super Cycle," the culprit behind upward pressure on global inflation. "It is not the time for complacency if we want this global growth to be sustainable. We have to be careful to see that this period of global growth does not end up in inflation," declared G-10 spokesman and ECB chief Jean "Tricky" Trichet.

The G-10 started to sound hawkish on inflation, and unveiled baby-step rate hikes over the next few months. Much to the G-10's satisfaction, the central banks in China and India also chipped in with monetary tightening to combat the common enemy. Last week, central bankers from Australia, Denmark, the Euro zone, England, India, Russia, and South Africa launched a round of baby-step rate hikes. Most surprising, the Bank of England lifted its base rate for the first time in 2-years.

snip>

Monetizing the price of Crude oil

If not for the inexorable rise of crude oil and the "Commodity Super Cycle," it is doubtful that central bankers would be lifting their lending rates at all. Although central bank rate hikes can't produce an extra barrel of oil, a gentle round of monetary tightening might prevent the world's demand for crude oil from exceeding a razor thin 2.2 million bpd of spare capacity, mostly from Saudi Arabia.

The soaring price of crude oil, if elevated long enough, transmits secondary knock-on inflation pressures. Until recently, central bankers insulated their stock markets from the taxation of oil price shocks, by expanding their nation's money supplies. But in September 2005, the gold market became very suspicious of the scheme, and rocketed 50% to 100% against most currencies around the world until May 2006.

more...
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specimenfred1984 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 02:27 PM
Response to Reply #55
74. Sorry, but that guy's a blowhard
No mention of corruption and he blames the problems in the Middle East on "Iran's mullahs". And, the central banks always operate using "smoke and mirrors". Also, the precious metals markets bubbled because of the introduction of ETFs in the U.S. and unchecked and unregulated speculation, not because crude oil prices are going up.

Flawed premises, flawed conclusions: the guy's trying to sell gold like a used car dealer trying to sell a used SUV.

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Darkhawk32 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 11:47 AM
Response to Original message
56. Any airline industry put options out there? Would be nice to know. n/t
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 12:44 PM
Response to Original message
60. U.S. Stocks Rise as Investors Turn Attention to Profit Growth
http://www.bloomberg.com/apps/news?pid=20601103&sid=aEG...

Aug. 10 (Bloomberg) -- U.S. stocks rose for the first time in five days as investors set aside renewed concern of terrorist attacks and turned their attention to the prospects for profit growth.

Indexes retreated at the start of the day after U.K. police uncovered a plot to blow up airplanes bound for the U.S.

American International Group Inc., the world's largest insurer, gained on a surge in property and casualty revenue. The company also said the events in Europe won't immediately affect its business. Viacom Inc. and Target Corp. pushed stocks higher after reporting profit that beat some analysts' estimates.

``Foiled plots are more of a positive than a negative because at least it shows our efforts are working,'' said David Straus, who helps manage $215 million at Johnston Lemon Inc. in Washington. ``Now you're back to the economics of it all. Earnings are good, which tends to hold up the markets.''

more...
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specimenfred1984 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 01:09 PM
Response to Original message
62. The Mighty Pumpweasels Return!
after dumping everything yesterday. "Gas is cheap", BWAAAAAAAHAAAAAAAAAAAAAAAAAAA!
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 01:11 PM
Response to Original message
63. 2:09 EST Happy Days are Here Again with blather
Dow 11,137.89 +61.71 (+0.56%)
Nasdaq 2,075.24 +14.96 (+0.73%)
S&P 500 1,271.56 +5.61 (+0.44%)
10-Yr Bond 4.947 +0.01 (+0.20%)


NYSE Volume 1,576,054,000
Nasdaq Volume 1,193,488,000

2:00 pm : Market breaks out of its tight trading range within the last 30 minutes and spikes to session highs, as bargain hunters catch sellers resting on their recent laurels. Continued deterioration in oil prices, especially after the Fed recently cited the lagged effects of increases in energy prices as inflation risks that could lead to additional monetary tightening, has returned market breadth in favor of the bulls. Crude futures now off 3.0% near $74 a barrel has also diminished the appeal of gold as a hedge against inflation, as the precious metal recently closing down 2.4% further underscores the market's buoyancy to acts of terror. DJ30 +56.19 NASDAQ +13.45 SP500 +5.37 NASDAQ Dec/Adv/Vol 1278/1636/1.16 bln NYSE Dec/Adv/Vol 1444/1725/1.0 bln

1:30 pm : Little changed since the last update as stocks continue to vacillate in roughly the same ranges. Bonds, however, continue to weaken after the $10 bln 30-year auction drew meager interest. The 10-yr note is now off 7 ticks to yield 4.94% while the 30-year bond is down 16 ticks, lifting the yield to 5.08%, roughly 8 basis points higher than where it was just two days ago when the Fed prudently paused to assess the economic slowdown.DJ30 +13.02 NASDAQ +3.30 SP500 +0.69 NASDAQ Dec/Adv/Vol 1459/1417/1.05 bln NYSE Dec/Adv/Vol 1653/1504/908 mln
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 02:10 PM
Response to Reply #63
73. 3:08 and paring gains
Dow 11,104.43 +28.25 (+0.26%)
Nasdaq 2,067.31 +7.03 (+0.34%)
S&P 500 1,268.79 +2.84 (+0.22%)
10-yr Bond 4.933 -0.004 (-0.08%)
30-yr Bond 5.073 +0.026 (+0.52%)

NYSE Volume 1,863,599,000
Nasdaq Volume 1,413,505,000

3:00 pm : Stocks continue to pare some of their recent gains, but market internals remain positive. As reflected in the A/D line, advancers outpace decliners on the NYSE by a 9-to-7 margin while advancing issues on the Nasdaq hold a wider 17-to-12 edge over declining issues. Providing further evidence behind the Nasdaq's slight outperformance versus its blue chip counterparts has been a more convincing 2-to-1 ratio of up to down volume while that on the NYSE remains evenly matched. DJ30 +30.56 NASDAQ +8.34 SP500 +2.98 NASDAQ Dec/Adv/Vol 1256/1709/1.38 bln NYSE Dec/Adv/Vol 1415/1808/1.22 bln

2:30 pm : Major averages are off their best levels but still holding onto the bulk of the day's advance. Seven out of 10 economic sectors are trading higher, with notable bargain hunting interest being seen in underperforming areas like Consumer Discretionary (+1.3%), Industrials (+0.8%) and Technology (+0.6%). Also worth noting is the fact that, even though oil is off 3.0%, the Energy sector is only consolidating to the tune of 1.0%, still limiting today's market gains but not by nearly as much as such a drubbing in crude might typically warrant. DJ30 +45.12 NASDAQ +12.02 SP500 +3.98 XOI -1.8% NASDAQ Dec/Adv/Vol 1216/1713/1.29 bln NYSE Dec/Adv/Vol 1319/1874/1.12 bln

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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 02:46 PM
Response to Original message
76. 3:44 EST heading for the close with a full head of steam
Dow 11,126.61 +50.43 (+0.46%)
Nasdaq 2,073.13 +12.85 (+0.62%)
S&P 500 1,272.23 +6.28 (+0.50%)
10-Yr Bond 4.927 -0.01 (-0.20%)


NYSE Volume 2,111,636,000
Nasdaq Volume 1,575,527,000

3:30 pm : Indices continue to weaken going into the close, as sector leadership again becomes evenly split. Fortunately for the bulls, three of the four most influential sectors -- Financials, Technology and Industrials -- are still posting gains, while Health Care's decline remains minimal. However, the broader market is now at risk at closing lower for the fifth straight day, which would be its longest losing streak since 2004. DJ30 +26.09 NASDAQ +6.18 SP500 +2.84 NASDAQ Dec/Adv/Vol 1356/1613/1.51 bln NYSE Dec/Adv/Vol 1477/1764/1.35 bln

3:00 pm : Stocks continue to pare some of their recent gains, but market internals remain positive. As reflected in the A/D line, advancers outpace decliners on the NYSE by a 9-to-7 margin while advancing issues on the Nasdaq hold a wider 17-to-12 edge over declining issues. Providing further evidence behind the Nasdaq's slight outperformance versus its blue chip counterparts has been a more convincing 2-to-1 ratio of up to down volume while that on the NYSE remains evenly matched. DJ30 +30.56 NASDAQ +8.34 SP500 +2.98 NASDAQ Dec/Adv/Vol 1256/1709/1.38 bln NYSE Dec/Adv/Vol 1415/1808/1.22 bln


gotta run - see you all later :hi:
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specimenfred1984 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 03:04 PM
Response to Original message
77. That's it, lows are in for the year! Blah blah blah...
I don't have any reason for saying it, nor will I come back to support it.

Wahhhhhhhhhhhhhh, I'm a dumbed-down Murkin n' proud of it!
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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 03:38 PM
Response to Original message
78. Closing numbers and yada
Dow 11,124.37 +48.19 (+0.44%)
Nasdaq 2,071.74 +11.46 (+0.56%)
S&P 500 1,271.81 +5.86 (+0.46%)
10-yr Bond 4.927 -0.01 (-0.20%)
30-yr Bond 5.065 +0.018 (+0.36%)
NYSE Volume 2,333,085,000
Nasdaq Volume 1,776,888,000


4:20 pm : Despite digesting the biggest terrorist threat since 9/11, stocks demonstrated their resiliency Thursday to such concerns as a sell-off in oil alleviated some of the uncertainty about the impact an economy slowdown is having on corporate profit growth.

With underlying sentiment already cautious about just how much the economy is slowing, reports overnight that 21 extremists were arrested for plotting to blow-up planes traveling between London and the U.S. dominated the headlines Thursday and initially exacerbated economic concerns. As a result, the U.K. and U.S. raised their terrorist alerts to the highest level while the airline industry threat level was raised to its highest ever.

Be that as it may, recognition that the terrorist plot was in fact foiled, coupled with deterioration in oil prices throughout the session, especially after the Fed recently cited the lagged effects of increases in energy prices as inflation risks that could lead to additional monetary tightening, helped investors refocus their attention on the fundamentals -- earnings.

Kicking off another batch of better than expected results was American International Group (AIG 59.03 +0.54), which reported a 29% decline in Q2 profits last night. However, since earnings beat analysts' expectations for the first since the second quarter of 2005, handily no less, weary shareholders applauded the insurance giant's upside surprise, sending the blue chip up 3% to pace the way higher among the 20 Dow components that posted gains.

In addition to leadership from Financials, Consumer Discretionary (+1.4%) paced the way higher and provided notable leadership. Aside from benefiting at the expense of a crude oil prices losing 3.1%, Retailers got a huge boost from Target (TGT 47.51 +2.23) and J.C. Penney (JCP 65.72 +1.72), which by growing Q2 profits 13% and 37%, respectively, lent further credence behind a 12th straight quarter of double-digit earnings growth for the S&P 500. Movies & Entertainment was another group lending sector support, as Viacom (VIA 37.12 +3.37) surged 10% after topping estimates, while Restaurants got a lift after Brinker International (EAT 34.88 +2.88) beat expectations and pleasantly surprised Wall Street by affirming its 15% FY07 EPS growth projection.

Bargain hunting interest was also seen in underperforming areas like Industrials (+0.8%) and Technology (+0.6%); but even more notable perhaps was that, even though oil plunged 3.1%, the Energy sector was quite resilient. Albeit still limiting today's market gains, the sector not closing by nearly as much as such a drubbing in crude might typically warrant was also reassuring for investors, especially since Energy profits continue to account for the majority of earnings growth on the S&P 500.

While concerns that the thwarted terrorist attack may result in lower demand for jet fuel (e.g. canceled flights/delays), OPEC saying supplies would stay strong and more talks of a possible cease-fire in Lebanon also prevented the commodity from ever regaining any momentum. Further, oil's decline diminished the appeal of gold as a hedge against inflation, as the precious metal closing down 2.4% ruled out any flight-to-quality scenarios occasionally characteristic in the wake of terror threats, further underscoring the market's buoyancy to such fears. DJ30 +48.19 NASDAQ +11.46 SP500 +5.86 NASDAQ Dec/Adv/Vol 1254/1734/1.77 bln NYSE Dec/Adv/Vol 1320/1950/1.60 bln

3:30 pm : Indices continue to weaken going into the close, as sector leadership again becomes evenly split. Fortunately for the bulls, three of the four most influential sectors -- Financials, Technology and Industrials -- are still posting gains, while Health Care's decline remains minimal. However, the broader market is now at risk at closing lower for the fifth straight day, which would be its longest losing streak since 2004. DJ30 +26.09 NASDAQ +6.18 SP500 +2.84 NASDAQ Dec/Adv/Vol 1356/1613/1.51 bln NYSE Dec/Adv/Vol 1477/1764/1.35 bln

Have a great night :hi:

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Roland99 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 07:52 PM
Response to Original message
79. Another day in Bizarro World!
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RUMMYisFROSTED Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-10-06 08:56 PM
Response to Original message
80. Roll On Floor Laughing
:rofl:
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