STOCK MARKET WATCH, Tuesday April 3

[ozymandius]

Source: DU

Tuesday April 3, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 657 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2290 DAYS
WHERE'S OSAMA BIN-LADEN? 1994 DAYS
DAYS SINCE ENRON COLLAPSE = 1954
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
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 April 2, 2007

Dow... 12,382.30 +27.95 (+0.23%)
Nasdaq... 2,422.26 +0.62 (+0.03%)
S&P 500... 1,424.55 +3.69 (+0.26%)
Gold future... 671.50 +2.50 (+0.37%)
30-Year Bond 4.84% -0.01 (-0.25%)
10-Yr Bond... 4.64% -0.01 (-0.13%)






GOLD, EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

Read more: DU

[ozymandius]

1. Today's Market WrapUp

Inflation: Comparing Apples to Oranges
Smoke & Mirrors Won't Pay Your Bills
BY TONY ALLISON

Inflation is one of those issues that concerns people, but the normal reaction is a shrug of the shoulders, and shake of the head. It’s a problem that affects lives and futures, but most see it as a murky, complex subject beyond their control. And the media seems to think it’s “well under control,” even if our wallets argue otherwise.

For those who grew up in the 1950’s and 1960’s, the world was a different place. An average guy with a high school education could support a large family. His wife didn’t have to work. He could save for retirement. He could pay down, or even pay off his mortgage by retirement. According to the US Census Bureau, Department of Commerce, the average family income in 1950 was $3,300. But then the average cost of a loaf of bread was 14 cents. That wouldn’t pay the sales tax on a loaf of bread today.

These days you need two paychecks to support a family, usually with no more than one or two kids. Both parents need college degrees to get good jobs. They have little or no savings and their kids will be saddled with student debt if they go college. How can a middle class family be worse off today than 50 years ago with a booming economy, low interest rates and “minimal” inflation?

-cut-

These are complex issues, and globalization and the exporting of a large portion of our manufacturing base play a role. But inflation has not gone away, and is not as “quiescent” as the Fed would like us to believe. In the early 1990’s, the government was watching inflation rise and adversely affect federal deficits and what it paid out in entitlements. To bring down the cost of entitlements, the inflation rate was adjusted lower, but not by cutting government spending, or raising interest rates. No, inflation was lowered simply by changing the way in which it is measured.

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

[raccoon]

17. This column's a keeper! nt

[Roland99]

22. Enter Greenspin and the world of "substitution" to "fix" the inflation rate.

You'll just buy ground chuck instead of sirloin.

You'll get store-brand instead of name-brand.

You'll buy a 2 year-old car instead of a brand new one (actually, that's a good idea :) )

And on down the line.

In the meantime, prices on those ORIGINAL items kept going up and prices on the cheaper items did, too, but that initial "drop" from dropping a level in quality cut that inflation rate down.

Now American society is at the point that they cannot substitute any more (unless you want to eat tainted pet food)

[ozymandius]

2. The one graph that damns the Bush economy

From Jerome a Paris at Daily Kos.

And it comes courtesy of the Wall Street Journal (March 26):



The median wage (as opposed to the average wage) is the real indicator of how the middle classes are doing: it's the wage such that half of Americans earn more, and half earn less. Average is - well think what the average of your income and Bill Gates' is.

And the reality is stark - median wages are stagnating or worse, whereas the much quoted and much lauded GDP has been growing nicely.

http://www.dailykos.com/storyonly/2007/4/2/162947/5397

[AnneD]

10. Morning Marketeers.....

:donut: and lurkers. I had a very sad memory come back to me this am. While up listening to the news. The Army announced that instead of the usual 1 year between deployment-it will now be 7 months. All at once I was taken back to the time when my Dad would have to be called up and be gone for what seemed to my young mind an eternity. At least we were at peace (except at the end of his service when he pulled tours in Thailand and wrote that they could see the Khmer Rouge crossing the rivers at night). The only good thing to come about it was that Mom would stay with his family at these times and that is how I came to know and love my Cherokee relatives. My heart breaks for their kids and wives and I have nothing but contempt for our leaders that have taken one of the finest, well trained professional fighting forces and driven it into the ground. I feel very strongly about service to your country and I didn't hesitate to enlist myself. But as soon as my daughter was born-I left. I did not want to traumatize her as I had been. I have a special loathing for those chicken shit chicken hawks that dare to call themselves commanders in chief. This is the end of the voluntary experiment. They will have to return to the draft. This has traumatized too many people and children.



Happy hunting and watch out for the bears.

[Roland99]

12. That graph needs its own thread in GD and GD: P

[AnneD]

14. Sorry to post my rant after that graph...

And your right Roland. It needs it's own spot as it is the perfect antidote to all the rah rah crap that is coming out of WS and the Gov as of late. This sums up what most folks are dealing with these days. These are turning into hard times or as Dolly would say....A Hard Candy Christmas


<snip>

Fine and dandy
Lord its like a hard candy christmas
Im barely getting through tomorrow
But still I wont let
Sorrow bring me way down

<snip>
Hey, maybe Ill learn to sew
Maybe Ill just lie low
Maybe Ill hit the bars
Maybe Ill count the stars until dawn
Me, I will go on

Maybe Ill settle down
Maybe Ill just leave town
Maybe Ill have some fun
Maybe Ill meet someone
And make him mine

<snip>
cause Ill be fine
(Ill be fine)
Oh, Ill be fine



Boy it is deja vu today. All my Dad's folks ever had was hard candy Christmas'. Funny thing was, we never knew how poor we were until we went to school.

[Roland99]

16. I get the sinking feeling my daughters might experience life as parents

much as my grandparents did during the 30s

[ozymandius]

37. The total collassal failure of Bush's economic policy condensed.

From Daily Kos diarist rovertheoctopus:

On the Eve of Recession

In the late 1980s, America witnessed the "savings and loan" crisis, which buried the real estate market. From the grave, the real estate market tried to pull the US economy into the grave as well. And for three quarters, from July 1990 through March 1991, it worked. The economy slumped -1.5% over that period, bringing about painful job loss. There was an excess of office space, successfully discouraging office construction through most of the 1990s. Housing sales sagged and, of course, unemployment soared. 2007 seems eerily familiar, but few will honestly shed what the bad news entails.

-cut-

And when will they stop blaming the weather for the poor sales and simply admit the horrendous circumstances. These past two years have not exactly been unique in terms of weather, though February was markedly cold. But every year, there are blizzards, spells of warm weather in winter, rain, small snowstorms, floods, bitter cold... seriously, get real. Weather alone could not have produced this dismal data:

-see charts-

The graph above is alarming, in my judgment. It is important to note that the noticeably sharp declines in new home sales (1974, 1980-1982, 1990-1991) happened during recessions. The decline during 2006 and 2007 is almost congruent with the fall of housing sales during the 1980-1982 depression. The most startling part may be that the housing downturn still has several months ahead before there is any significant bottoming. If this is the data that Bernanke says will bring "sustainable growth", intuition tells me I have to really question the motives or the competence of these people. The drop in housing sales is incredibly deep.

Then there are housing permits. The steep drop in housing permits implies that there will be fewer homes built in the future, allowing a further slump in housing starts.

-more chart data-

The employment figures for Michigan have exemplified the failed policies of Washington these past 6 years. Another recession has been about the only thing allowing employment numbers to float around 4,400,000 since 2003. Oops! Guess I spoke too soon. Michigan's total employment figures, even after applying the magical "seasonally adjusted" factor, have steadily eroded. But since late 2005, they have now been in free fall. Jobs declined 8.2% from June 2000 to February 2007. Fine work, Mr. President. I see the tax cuts have really spurred job growth.... in foreign lands. Not surprisingly, this trend is occurring in a few states of the midwest (including Indiana and Ohio.)

http://www.dailykos.com/storyonly/2007/4/1/213118/9464

[ozymandius]

3. Today's Reports

5:00 PM Auto Sales Mar
Briefing Forecast 5.2M
Market Expects 5.1M
Prior 5.1M

5:00 PM Truck Sales Mar
Briefing Forecast 7.6M
Market Expects 7.6M
Prior 7.7M

http://biz.yahoo.com/c/e.html

[UpInArms]

50. GM, Ford, Chrysler's U.S. Sales Fall; Toyota's Rise

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPS4gv30nv14&refer=home

April 3 (Bloomberg) -- General Motors Corp. and Ford Motor Co. said March U.S. sales fell as they cut deliveries to rental- car companies. DaimlerChrysler AG's dropped on a decline at Chrysler, which may be losing customers because it might be sold.

GM's sales declined 4.2 percent from a year earlier, and the company widened its planned production cut for this quarter. Ford today reported a 9 percent drop and DaimlerChrysler posted a 4.1 percent decline. Sales rose 12 percent at Toyota Motor Corp., 11 percent at Honda Motor Co. and 7.8 percent at Nissan Motor Co.

GM and Ford, the two largest U.S. automakers, are trying to boost profit by paring sales to fleet customers including rental- car companies that get discounts for buying in bulk. The strategy is helping Asia-based rivals led by Toyota gain U.S. market share. Fleet sales accounted for 27 percent of Detroit-based GM's total and 32 percent of Ford's in 2006.

...more...

[UpInArms]

4. dollar watch

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

Last trade 82.98 Change +0.10 (+0.12%)

US Dollar Eases Back on ISM, But Price Component May Limit Downside

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar_Eases_Back_on_1175550530662.html

US Dollar – Following Friday’s knock-down-drag-out day for the US Dollar, today’s market action was remarkably sedate as the greenback meandered slightly lower against most other currencies. Indeed, the data on hand left cause for confusion amongst traders as ISM Manufacturing slipped more than expected to 50.9, signaling a slowdown for the sector. A breakdown of the report was even more daunting; both the new orders and employment components declined, indicating that demand has diminished and the labor market has slackened. Furthermore, the prices paid figure jumped to a seven-month high of 65.5 on the back of mounting fuel and metals prices. With expansion clearly cooling and prices steadily rising, the Federal Reserve will be left in a precarious position: should they cut rates to ease pressures on consumers and businesses or hike rates in order to combat inflation? St. Louis Fed President William Poole may have already given an answer, as he said today, “There would have to be a high hurdle for me to want to be cutting rates if the economy is only marginally and tentatively on the weak side." Nevertheless, the US Dollar has generally remained unresponsive to the Fed’s hawkish rhetoric as the markets may be taking his commentary as paying lip service in order to sound tough on inflation. If anything, the Fed is more likely to leave rates steady in order to gauge the effect of current monetary policy on the economy, but crude prices above $65/bbl and potentially rising creates a clear tightening bias.

...more...

Dollar Edges Lower On Weak ISM Report

http://www.dailyfx.com/story/currency/eur_news/Dollar_Edges_Lower_On_Weak_1175535384140.html

The greenback opened the second quarter under pressure as the market absorbed a weaker than expected ISM manufacturing report and a verbal retaliation from China over the US Commerce Department’s tariffs on its imported paper goods.

By mid-day in the New York session, the majors were largely mixed. Since the anti-dollar run on Friday, EURUSD was carving out a stint of consolidation with a brief touch low at 1.3330 and a range high forming at 1.3380. For USDCHF, price action was well defined by a 20-point wide channel that guided the pair from 1.2175 to 1.2120. Loosing its direction, but retaining its volatility, USDJPY was moving towards the apex of a symmetrical triangle that recently had a top and bottom at 117.85 and 117.55 respectively. Finally, the British pound capitalized on the quiet dollar trading during the London session. Heated speculation of an impending rate hike from the BoE helped drive GBPUSD over 135 points from overnight lows to a test of 1.98.

For the past two weeks, regional factory activity reports guided speculation for today’s nationwide report. Until last Friday, the data was clearly foreshadowing a modest to sharp decline throughout the US. The Empire Manufacturing survey offered the most convincing support to a weak ISM print when the indicator unexpectedly dropped to its lowest level in 22 months. Lacking the luster of the Empire read, but weighing on the outlook nonetheless, both the Philly and Richmond Fed numbers had also missed their official consensuses. The Philadelphia-regional report edged down to closer to the expansionary/contractionary 0.0 level, while the Richmond number was submerged for the fourth consecutive month. Traders were almost fully pricing in an ISM drop until Friday when the Chicago PMI for March jumped to a two-year high. This allowed for some reaction in the currency market when the Institute for Supply Management’s manufacturing report printed below predictions with a 50.9 number. From the component data, the production and new orders sub-gauges cooled modestly; but managed to keep within growth territory. Producing some level of surprise, the prices paid report jumped to its highest level in seven months, rousing the hawkish Fed watchers. Conversely, the employment component dropped to its lowest level in nearly two years. This weakening labor trend maybe the first signs that the slump in housing and construction is spreading to other sectors.

The other headline for the day was the expected response from China following the US Commerce Department’s to impose tariffs on all paper products imported from the Asian nation. Officially, Chinese officials called for the US to revoke the duties, but did not specify any methods of retaliation they may take. While there is little heat underlying this issue as of yet, it may quickly pick up steam and drive the dollar. Should the protectionist agenda spur an official response from China, they could easily tack on their own tariffs onto US goods or use its massive reserves as a weapon. Looking ahead to tomorrow, the only noteworthy indicator on deck is the pending home sales report for February. However, without a considerable surprise, it could easily be overlooked since existing and new home sales numbers offer more prescient readings on the housing market.

...more...

[citizen snips]

30. Dollar Higher, Gold Up in Europe

LONDON (AP) -- The U.S. dollar was higher against most other major currencies in European trading Tuesday. Gold prices also rose.

The euro traded at $1.3369, down from $1.3373 late Monday. Later, in midday trading in New York, the euro fetched $1.3368.

Other dollar rates in Europe, compared with late Monday, included 118.75 Japanese yen, up from 117.57; 1.2183 Swiss francs, up from 1.2128; and 1.1566 Canadian dollars, up from 1.1549.

The British pound traded at $1.9777, up from $1.9775.

more...
http://biz.yahoo.com/ap/070403/dollar_gold.html?.v=3

[ozymandius]

5. Oil prices fall

VIENNA, Austria AP) — Oil prices dropped Tuesday as tensions appeared to ease in the Britain-Iran standoff.

Prices had risen steadily since 15 British sailors and marines were detained March 23 by Iran for allegedly entering Iranian waters. On Monday, crude fell below $66 a barrel after Iran's chief international negotiator called for an end to "the language of force" in the dispute.

Light, sweet crude for May delivery on the New York Mercantile Exchange fell 73 cents to $65.21 a barrel in electronic trading by noontime in Europe. Two weeks ago, the contract was trading under $60 a barrel.

On London's ICE Futures exchange, Brent crude for May sank 73 cents to $68.01 a barrel.

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

[ozymandius]

7. Persian Gulf hope may spur stocks

NEW YORK (CNNMoney.com) -- Indications of easing tensions between Iran and Britain - bringing oil prices lower - could be a positive factor for U.S. stocks when markets open Tuesday.

At 8 a.m. ET, Nasdaq and S&P futures were higher.

Oil was down after an Iranian official said the dispute over 15 British sailors seized last month can be resolved diplomatically. U.S. light crude eased 89 cents to $65.05 a barrel in electronic trading.

Treasury prices slipped. The U.S. 10-year note yield rose to 4.65 percent from 4.64 percent late Monday. The dollar was slightly stronger against the euro and solidly higher against the yen.

Stocks in Asia rebounded to close mostly higher after Monday's declines. Stocks in Europe were also up in early trading.

http://money.cnn.com/2007/04/03/markets/stockswatch/index.htm?postversion=2007040308

[ozymandius]

6. Major home lender files for bankruptcy

LOS ANGELES - New Century Financial Corp., once the nation's second-largest provider of home loans to high-risk borrowers, filed for bankruptcy protection on Monday, the victim of its own financial missteps as well as pressures felt by its rival lenders.

New Century immediately fired 3,200 workers — more than half its work force — and said it intends to sell off its major assets.

"The Chapter 11 process provides the best means for selling our servicing and loan origination operations to financially sound parties," president and chief executive Brad A. Morrice said in a statement.

"It is our hope that potential buyers will be in a stronger position than we are to employ many of our associates on an ongoing basis," he said.

http://news.yahoo.com/s/ap/20070402/ap_on_bi_ge/new_century_bankruptcy

[ozymandius]

8. Dow, Nasdaq Head Toward Higher Opening

NEW YORK (AP) -- U.S. stocks headed toward a higher open Tuesday as the nation's automakers prepare to release March sales figures that could help give the markets a jolt.

Wall Street, looking to extend its gains from Monday, drew support from an overnight drop in oil prices as tensions between Britain and Iran eased. Prices have risen steadily since 15 British sailors and marines were detained March 23 by Iran. A barrel of light sweet crude fell 97 cents to $64.98 in premarket trading on the New York Mercantile Exchange.

The auto sector and financial stocks are expected to be in focus throughout the session.

Ford Motor Co., General Motors Corp., DaimlerChrysler AG and others are scheduled to report how they fared during the month. Results will be closely watched to determine the pace of consumer spending.

http://biz.yahoo.com/ap/070403/wall_street.html?.v=8

[ozymandius]

9. national deficit reminder:

Thank you Republicans and President Stupid.

[Hugin]

11. I don't believe the tail end of that chart...

You know, where the little blue line is headed back up toward zero.

It's fiction.

But, I'm a cynic.

:)

[Roland99]

13. Well, after hitting humongous deficits, corporate tax receipts *are* up

but I wonder if those numbers include the war supplementals.

[AnneD]

15. Guess that makes ......

2 of us.:donut: Here, I'm buying today.

[Hugin]

25. Thanks AnneD...

:hangover:

My reason for doubt is that as a Nation we're still spending money like there's
no tomorrow (in all areas) and there's very little long term indication that it's
doing any good. But, when dealing with the the Bush 'SnL Bailout' mentality, I don't
expect to see anything real come out of all of the funny-munny flying around over
the heads of the cheerleader Oligopoly.

Edited to add: Money we *don't* have... Nor our children or their children.

That's all I have to say about it.

[citizen snips]

18. GM Says 1st Quarter Sales in China Rise

SHANGHAI, China (AP) -- General Motors Corp. and its joint venture partners said Tuesday their combined sales in China jumped 25 percent in the first quarter, a boon for the U.S. automaker struggling to revive sales at home.

GM is the No. 1 seller of autos in China, the world's second-biggest -- and fastest-growing -- vehicle market.

The company said its sales in China totaled 291,588 vehicles in the first three months of the year. In March alone, it moved 100,538 units, just the second time single-month sales have topped 100,000, it said in a release.

The first-quarter performance nudged GM's share of the Chinese vehicle market up 0.5 percent point over the same period last year to an estimated 13.9 percent, it said.

more...
http://biz.yahoo.com/ap/070403/china_gm.html?.v=2

[citizen snips]

19. Out of the Gate: Altria Group

NEW YORK (AP) -- A day after Altria Group Inc. began trading without its newly spun off Kraft Foods Inc. subsidiary, analysts adjusted their estimates and price targets to reflect the cigarette maker's value as a pure-play company.

Goldman Sachs analyst Judy Hong believes shares of New York-based Altria, which makes Marlboro cigarettes, are worth $76. Her price target before the spinoff was $101. Altria shares closed at $68.22 Monday on the New York Stock Exchange.

Citigroup analyst Bonnie Herzog is even more optimistic that a pure-play cigarette maker will be more valuable without the diversity of a food making subsidiary. Her price target is $81, almost 19 percent higher than the stock's close Monday. Her previous price target was $105.

Altira spun off its 89.9 percent stake in Kraft to shareholders on March 30. Merrill Lynch analyst Christine Farkas, whose price target on Altria is now $75 versus a pre-spinoff target of $98, said the company will be worth more because investors place higher value on profit generated from tobacco than profit generated from food.

more...
http://biz.yahoo.com/ap/070403/altria_group_out_of_the_gate.html?.v=1

[citizen snips]

20. Accredited Shares Rise on $1.1 Billion in Financing

April 3 (Bloomberg) -- Shares of Accredited Home Lenders Holding Co. jumped as much as 26 percent after the subprime mortgage company got financing commitments totaling $1.1 billion from two lenders.

Accredited's stock rose $1.82 to $10.30 at 10:21 a.m. New York time in Nasdaq Stock Market composite trading. The San Diego-based company obtained a $500 million commitment from a large commercial bank and renewed a $600 million facility with an investment bank, Accredited said in a statement yesterday after the close of regular trading. It didn't name the companies.

Shares of subprime lenders -- those that lend to homeowners with lower credit ratings or high debt burdens -- have plunged after defaults surged to a four-year high. Accredited depends on commercial and investment banks for financing so it can make loans to homeowners, which it then sells in packages to investors.

The firm is also in talks to renew a separate $650 million credit line, the company said. The company has about $350 million of available cash on hand after the most recent financing agreements, according to the statement. Accredited had faced a cash crunch as creditors Goldman Sachs Group Inc., Morgan Stanley and Merrill Lynch & Co. demanded collateral to cover losses on mortgages that defaulted.

more...
http://www.bloomberg.com/apps/news?pid=20601087&sid=a9RVZU9TZEsw&refer=home

[citizen snips]

21. Tribune Outlook Still Murky After Buyout

CHICAGO (AP) -- Tribune Co.'s embrace of an $8.2 billion buyout offer from real estate mogul Sam Zell leaves the outlook for the nation's second-largest newspaper publisher as murky as when it began a business review in September.

"The transaction leaves little room for error, particularly in this challenging newspaper operating environment," Goldman Sachs analyst Peter P. Appert wrote in a research note Tuesday.

A hefty chunk of new debt will be required to pay the $34-a-share cash buyout offer that the media company accepted on Monday. Zell is counting on repaying the debt largely through tax benefits from a new employee stock ownership plan that would supplement existing retirement accounts for the company's 20,000 workers.

Aside from selling the Chicago Cubs baseball team and its stake in Comcast SportsNet, Zell and Tribune executives were mum about prospects for the rest of the company's assets. Nine newspapers -- ranging in size from the Los Angeles Times and Chicago Tribune to the Daily Press in Newport News, Va. -- and 23 television stations will remain after two papers in Connecticut are sold.

more...
http://biz.yahoo.com/ap/070403/tribune_sale.html?.v=6

[Roland99]

23. 10:49am - Holy Crap! Triple Digit Gains! WHEEEEE!!!!!

DJIA 12,511.11 +128.81 +1.04%
Nasdaq 2,453.97 +31.71 +1.31%
S&P 500 1,437.40 +12.85 +0.90%
Dow Util 509.78 -0.42 -0.08%
NYSE 9,373.11 +67.56 +0.73%
AMEX 2,184.32 +4.05 +0.19%
Russell 2000 812.66 +9.44 +1.18%
Semcond 468.16 +2.71 +0.58%
Gold future 669.30 -2.20 -0.33%
30-Year Bond 4.85% +0.01 +0.19%
10-Year Bond 4.66% +0.02 +0.47%

[Roland99]

24. Europe tops US in stock market value (First time since World War *1*)

http://www.ft.com/cms/s/bf6a00e4-e14b-11db-bd73-000b5df10621.html

Europe has eclipsed the US in stock market value for the first time since the first world war in another sign of the slipping of the global dominance of American capital markets.

Europe’s 24 stockmarkets, including Russia and emerging Europe, saw their capitalisation rise to $15,720bn (€11,819bn) at the end of last week, according to Thomson Financial data. That exceeded the $15,640bn market value of the US.

...

The last time Europe eclipsed the US in market capitalisation was likely to have been before the first world war, said Mike Staunton, stock-market historian at London Business School. The shift mirrors a trend in the debt world, where European activity has caught up, and in some cases overtaken the US.

European shares have outperformed the US, with their market capitalisation rising 160 per cent since the start of 2003 in dollar terms, said Thomson Financial. That compared with a 70.5 per cent rise for the US stock market. Over that time the euro has risen 26 per cent against the dollar.

[citizen snips]

26. Sector Snap: Pet Food Makers Recover

NEW YORK (AP) -- Shares of pet food makers and sellers rose Tuesday morning, although an investigation into a contamination that killed pets continued and one company recalled some of its dog treats.

DLM Foods Canada Corp., a division of Del Monte Foods Co., said late Monday it is withdrawing beef-flavored Jerky Treats with the best-before date of August 16, 2008. Nearly 100 brands of pet food have been recalled since March 16, when Canadian pet food supplier Menu Foods Inc. announced a contamination that has killed at least 16 pets around the U.S.

Wheat gluten tainted with melamine, a chemical used in making plastics and other products, is suspected in the deaths. The Food and Drug Administration has banned wheat gluten from Xuzhou Anying Biologic Technology Development Co. in China, saying that company was the source of the contaminated product. Wheat gluten is used to thicken "wet" dog and cat food.

The FDA said all the melamine-contaminated wheat gluten could be traced to Xuzhou, and that the recalls may continue. So far, the agency added, there is no evidence of melamine in human food.

more...
http://biz.yahoo.com/ap/070403/pet_food_sector_snap.html?.v=1

[AnneD]

35. I remain....

unconvienced. My animal friends will be eating differently from now on. I think lots of folks feel the same way-espm those that lost their companions. All 10 of them :sarcasm:

[citizen snips]

27. Sector Snap: Student Lenders

NEW YORK (AP) -- The student-lending reforms and restitution announced Monday by New York Attorney General Andrew M. Cuomo didn't offer much of a glimpse into the implications of the state's investigation into lenders including SLM Corp., Nelnet Inc. and CIT Group Inc.

Cuomo said Monday his office reached a settlement with scores of major colleges like New York University, University of Pennsylvania and Syracuse University. The colleges agreed to pay a total of $3.3 million to reimburse students.

The investigation accused lenders of paying colleges to put certain lenders on "preferred" lists. This resulted in schools steering students to lenders because they had paid the school, not because they offered the best loan terms, Cuomo said.

Citigroup Inc., which lends to 3,000 schools, voluntarily agreed to adopt Cuomo's "Code of Conduct," which prohibits lenders from paying colleges for better access to students trying to borrow money. The bank contributed $2 million to a fund to educate students about loan options.

more...
http://biz.yahoo.com/ap/070403/student_lenders_sector_snap.html?.v=1

[Hugin]

45. Wow... I wonder how far this goes nationwide?

Eeek.

:scared:

[citizen snips]

28. EU Launches Antitrust Probe Into iTunes

BRUSSELS, Belgium (AP) -- The European Commission said Tuesday it had opened an antitrust probe into allegations that Apple's iTunes and major record companies were unfairly restricting the choice and costs of online music consumers can download from the U.S. company's European music stores.

The Commission alleged distribution agreements Apple has signed to sell music on the iTunes online stores in EU countries "contain territorial sales restrictions which violate" European Union competition rules because consumers can only download singles or albums from the iTunes store in their country of residence.

Downloaders have to provide a credit card issued by a bank with an address in the country where they live.

"Consumers are thus restricted in their choice of where to buy music and consequently what music is available, and at what price," the Commission said in a statement.

more...
http://biz.yahoo.com/ap/070403/eu_apple.html?.v=20

[citizen snips]

29. Bond Prices Drop As Investors Await Data

NEW YORK (AP) -- Treasury bond prices were lower Tuesday morning with the market placed on the defensive as investors continue to move back into riskier assets and await new data.

At 11 a.m. EDT, the 10-year Treasury note was down $1.25 per $1,000 in face value, or 4/32 point, from its level at 5 p.m. Monday. Its yield, which moves in the opposite direction, rose to 4.66 percent from 4.64 percent.

The 30-year bond fell 1/32 point. Its yield was unchanged at 4.84 percent.

The 2-year note fell 2/32 point. Its yield rose to 4.61 percent from 4.58 percent.

more...
http://biz.yahoo.com/ap/070403/bonds.html?.v=5

[citizen snips]

31. Napster Up on 4Q Revenue Forecast

NEW YORK (AP) -- Napster shares surged Tuesday after the online music provider said it expects to beat its previous fiscal fourth-quarter revenue projection.

The company's stock added 17 cents, or 4.1 percent, to $4.32 in midday trading Tuesday on the Nasdaq Stock Market. Over the past year, Napster shares have traded between $2.55 and $5.10.

Early Tuesday, the company said it believes its revenue for the quarter ending March 31 will top $28 million due to "healthy organic growth." The company previously forecast quarterly revenue of $26 million.

Analysts polled by Thomson Financial anticipate revenue of $26.6 million and a loss of 21 cents per share for the quarter.

more...
http://biz.yahoo.com/ap/070403/napster_mover.html?.v=1

[citizen snips]

32. DaimlerChrysler U.S. Sales Fell in March

DETROIT (AP) -- U.S. sales of DaimlerChrysler AG vehicles fell 4.1 percent last month as Chrysler Group's decline was tempered by the best March ever for Mercedes-Benz, the company said Tuesday.

Chrysler's passenger vehicle sales, which include the Chrysler, Jeep and Dodge brands, fell 4.6 percent to 206,435, while Mercedes sales rose 1 percent to 21,612.

Industrywide, Japan's Toyota Motor Corp. has been gaining market share in the U.S., riding on the success of cars such as the Camry, widely seen as reliable and fuel-efficient, while General Motors Corp., Ford Motor Co. and Chrysler have worked to turn around their North American operations.

GM, the world's largest automaker, remains the top seller in the U.S. Analysts predict, however, that Toyota will continue to make gains this year and likely will knock Ford off its traditional No. 2 spot in U.S. sales for the full year.

more...
http://biz.yahoo.com/ap/070403/auto_sales.html?.v=1

[citizen snips]

33. delete

[citizen snips]

34. Quiksilver Shares Rise on Upgrade

NEW YORK (AP) -- Shares of Quiksilver Inc. rose Tuesday after an analyst upgraded the company, saying the teen apparel maker is underestimated by the market and has strong assets.

Morgan Stanley analyst Brian McGough said Quiksilver investors might be undervaluing the company because its 2005 acquisition of French ski maker Rossignol has had a "disappointing start."

"With all the talk about Rossignol, people forget that Quiksilver owns some of the most coveted assets in the surf/skate business," McGough wrote in a Monday research note. Those brands, which make up 73 percent of the company's sales, include Quiksilver, Roxy and DC shoes.

McGough added that the company might be open to considering strategic options if earnings don't improve.

more...
http://biz.yahoo.com/ap/070403/quiksilver_mover.html?.v=1

[Roland99]

36. New down-payment funding idea draws regulators' attention (this made my brain hurt)

http://www.marketwatch.com/news/story/new-down-payment-funding-idea-draws/story.aspx?guid=%7BAA2879A8%2D4495%2D4C1D%2DA8CC%2DE679599DD3DB%7D

...

DpFunder works this way: The potential home buyer signs on as an independent contractor with Global Direct Sales LLC, Gaithersburg, Md., a marketing company.

The person who wants to buy the home sells a membership in "Owners Alliance Inc." to the homeowner. Owners Alliance Inc. is a for-profit company, with a Washington address, likened by salespersons to AARP.

...

Under the DpFunder arrangement, the property seller signs a property enrollment form, agreeing to purchase an Owners Alliance membership for a term ranging from three years to 20 years. The term is based on the agreement between home buyer and home seller.

The home seller also agrees to assignment of funds, which allows payment for the membership to be deferred until settlement.

The home buyer signs a document allowing Global Direct Sales to pay him or her as an independent contractor, a W-9 form for the IRS and an authorization form allowing Global Direct Sales to deposit money from the commission in an FDIC-insured account it sets up in the home buyer's name.

Anyone else smell that stench of desperation??

[ozymandius]

38. Markets love to see us eatin' outta trashcans.

1:38
Dow 12,511.68 Up 129.38 (1.04%)
Nasdaq 2,453.77 Up 31.51 (1.30%)
S&P 500 1,438.85 Up 14.30 (1.00%)
10-Yr Bond 4.664% Up 0.022
NYSE Volume 1,735,754,000
Nasdaq Volume 1,187,320,000

1:30 pm : The indices are holding their own near session highs as buying remains widespread across most areas. Bonds, though, remain weak across the yield curve due primarily to the unexpected rise in pending home sales.

Aside from more evidence of stabilization in housing pressuring Treasuries, a broad-based rally in the stock market and easing geopolitical tensions are also diminishing the desire to own safe-haven investments like bonds. The 10-year note is down 5 ticks to yield 4.66%.DJ30 +123.59 NASDAQ +30.42 SP500 +13.57 NASDAQ Dec/Adv/Vol 950/2005/1.13 bln NYSE Dec/Adv/Vol 804/2402/832 mln

[loudsue]

39. Thanks for posting the numbers, Ozy!!

Have a great day at the casino!! :hi:

:kick::kick:

[mojavekid]

40. Micheal Nystrom: Three Bears, No Goldilocks - Part I

http://www.bullnotbull.com/archive/three-bears-1.html

Three good reviews of two books and Spike Lee's Katrina Documentary:


A couple of very bearish investment books showed up in my mailbox last month, just in time for me to finish reading them before 2-27's big market plunge. Though I was happy to receive them (courtesy of the publishers, no less), my first thought was that their appearance alone might be a contrary indicator of sorts. After all, the publishing industry issued a flood of bearish investment books in the late 1970's and early 80's - just as the greatest bull market ever prepared for liftoff. Readers may remember Ravi Batra's late 80's warning, The Great Depression of 1990. In 1995 came Robert Prechter's At the Crest of the Tidal Wave, which I recall being heavily advertised on CNBC. Batra was back in 1999 with The Crash of the Millenium, and Prechter in 2003 with Conquer the Crash. All of the books mentioned share two things in common. They predicted 1) the onset of a second great depression, which 2) never came. At least not yet.

Perhaps it is because the first great depression had such a profound impact on my father - in many ways he lived his life in its shadow - that I have always believed (unlike most people) that a second great depression would inevitably visit us once again someday in the future. I own and have read all the books mentioned above and more. Nearly all make the excellent, logical case for economic collapse based on the startling notion that the country cannot continue going deeper into debt forever; that eventually, a day of reckoning comes. This argument remains just as solid, just valid today as back then. The only problem is that we've heard it so many times that we no longer believe it, since the ultimate day of reckoning has been postponed. Twenty-seven years of what George Bush Sr. himself called "voodoo economics" in 1980 can have that effect. Eight years later, vice presidential candidate Lloyd Bentsen reminded Senior's running mate, Dan Quayle -- to laughter and applause -- that, "...if you let me write $200 billion worth of hot checks every year, I could give you an illusion of prosperity, too!" In those days, politicians at least paid lip service to the idea of fiscal responsibility. Twenty years later, in true 1984-fashion, Junior's VP boldly proclaimed "Weakness is Strength!" in admonishing the justifiably concerned Treasury Secretary Paul O'Neil that Reagan - the original voodoo economist himself - proved to the world that "deficits don't matter."

Well, of course they don't. That is, until suddenly they do.


more at link...

[AnneD]

51. I read all the previews....

The one that sticks with me the most was When the levees broke. I have always said-Katrina changed everything. I always prepare, but Katrina brought it home. If you could have talked to the survivors, the people I had to help-these were the stories that were not reported in the media, Folks no different from you and I going through hell on earth.

I have a gun now, and I never did. I will now refuse to work in a hospital during a hurricane. I have an emergency fund and cash on hand. My gas tank will not fall below 3/4th when there is a hurricane in the Gulf. I have my papers ready to go and I have adequate pet supplies, meds, food and water at all times-even in my tiny 5th wheel.

Even though this was a natural disaster, it was a financial disaster as well. The lesson I took with me....in a disaster-all you can rely on is yourself and your neighbours. Forget any other government help (we might luck out here-we have a good Mayor).

[mojavekid]

41. The Daily Pfennig 4/3/07: G-7 to Discuss Yen...

http://www.kitcocasey.com/displayArticle.php?id=1314

G-7 to Discuss Yen...

The currencies didn’t really see much movement yesterday. Overnight, however, the Japanese yen has given back its recent gains and has popped back over the 118.50 level... I find this move to be somewhat confusing given that Reuters was reporting yesterday that Canada’s Fin Min, Flaherty, said that the Japanese yen would be discussed at the next G-7 meeting, which is to be held April 11-12, I believe.

What, do the markets believe the discussion will involve exchanging cookie recipes? Not hardly! They are going to discuss why the currency is still crazy after all these years... I mean, still the most undervalued and manipulated currency! But don’t let that fact get in the way of the markets' mentality on this one... Me? I’m looking at this as a buying opportunity!

The euro continues to be strong vs. the dollar, and why not? The Eurozone economy is strong... They enjoy a trade surplus, and a central bank that oozes credibility with regards to maintaining price stability. The European Central Bank (ECB) will soon raise rates again to keep inflation below their 2% target ceiling... Probably not this month, but next month should be on the rate hike calendar!

more at link...

[citizen snips]

42. Molson Coors Shares Fall on Downgrade

NEW YORK (AP) -- Shares of brewer Molson Coors Brewing Co. slipped Tuesday after a Bernstein Research analyst cut his rating on the shares, saying the stock is now fairly valued.

Analyst Robert van Brugge lowered his rating to "Market Perform" from "Outperform," and noted that the brewer has beaten quarterly earnings estimates twice in the past six months and has begun a new $250 million cost cutting plan.

"After serial disappointments during the previous 18 months, investors have rewarded this improved performance with a nearly 40 percent increase in Molson's share price since last October," he said in a note to investors. "At roughly $94 today, we believe the stock now more fairly reflects the company's future earnings and cash flow potential, and that the risk-reward trade-off is more balanced."

Although he said Molson is on track for its earnings to grow this year and for strong free cash flow, he added he is concerned that management will not return some of the extra cash to shareholders, either in the form of a higher dividend or a buyback program

more...
http://biz.yahoo.com/ap/070403/molson_coors_mover.html?.v=1

[citizen snips]

43. Sector Snap: Engineering & Construction

NEW YORK (AP) -- A positive Goldman Sachs note, coupled with upgrades of two companies, lifted shares of some engineering and construction services companies Tuesday.

Granite Construction Inc., a transportation and heavy civil construction contractor based in Watsonville, Calif., rose $2.37, or 4.3 percent, to $56.96. Irving, Texas-based design and contracting company Fluor Corp. added $1.47 to $91.52. Both stocks trade on the New York Stock Exchange.

Houston, Texas-based Comfort Systems USA Inc., which designs building automation control systems, rose 12 cents to $12.23 on the Big Board. Halliburton Co., which offers engineering and construction services, along with oilfield services, added 63 cents to $32.90, also on the NYSE.

Goldman Sachs analyst Chris Hussey in a client note said Chicago Bridge & Iron Co. NV and Foster Wheeler Ltd. are going to benefit from an expected tight supply of process engineers. That should lead to steady margin improvements and growing revenue for the companies, Hussey wrote. He raises his rating on both companies to "Buy," from "Neutral."

more...
http://biz.yahoo.com/ap/070403/engineering_and_construction_sector_snap.html?.v=1

[citizen snips]

44. Sector Snap: Airline Stocks Surge

NEW YORK (AP) -- Airline stocks jumped on Tuesday, as oil prices eased and Continental Airlines Inc. reported stronger-than-expected March growth in unit revenue.

The Amex Airline Index rose 3.4 percent in afternoon trading, with 10 of 11 components up.

The price of a barrel of oil fell $1.59 to $64.35 on the New York Mercantile Exchange. Jet fuel is a major expense for carriers, and airline stocks tend to trade against crude price swings.

Also helping to propel industry stocks was Continental's overall passenger unit revenue -- a key industry gauge of revenue divided by capacity -- growing between 4.5 percent and 5.5 percent in March. That topped Wall Street expectations, and several analysts said they now expect a first-quarter profit from the Houston-based carrier after earlier forecasts of a loss.

more...
http://biz.yahoo.com/ap/070403/airlines_sector_snap.html?.v=1

[citizen snips]

46. GM Among Big Movers on Wall Street

NEW YORK (AP) -- Stocks that were moving substantially or trading heavily Tuesday on the New York Stock Exchange and Nasdaq Stock Market:

NYSE

General Motors Corp., up 38 cents at $31.21

The automaker and its joint venture partners said their first-quarter combined sales in China soared 25 percent.

Continental Airlines Inc., up $2.84 at $38.89

The airline reported unit-revenue growth that came in stronger than the market anticipated, while oil prices on the New York Mercantile Exchange fell.

Marshall & Illsley Corp., up $4.91 at $50.77

The banking services provider said it may sell its Metavante unit to a private equity firm for $4 billion, The Wall Street Journal reported.

more...
http://biz.yahoo.com/ap/070403/wall_street_stocks.html?.v=2

[citizen snips]

47. Continental Shares Rise on March Traffic

HOUSTON (AP) -- Shares of Continental Airlines Inc. jumped Tuesday after the carrier said an important measure of revenue rose in March and oil prices fell.

Analysts gave more bullish forecasts for the carrier's first-quarter results.

Continental shares gained $3.05, or 8.5 percent, to $39.10 in afternoon trading on the New York Stock Exchange.

AMR Corp., the parent of American Airlines, said Tuesday that its traffic declined 1.4 percent in March. Domestic travel accounted for the drop; it was off 2.5 percent while international traffic rose 0.8 percent.

more...
http://biz.yahoo.com/ap/070403/airlines_outlook.html?.v=1

[ozymandius]

48. just before the Witching Hour

2:57
Dow 12,509.16 Up 126.86 (1.02%)
Nasdaq 2,452.15 Up 29.89 (1.23%)
S&P 500 1,437.66 Up 13.11 (0.92%)
10-Yr Bond 4.662% Up 0.02
NYSE Volume 2,197,162,000
Nasdaq Volume 1,515,394,000

2:30 pm : The indices have slipped from their intraday highs but not enough to make a significant change in the standings. With the Q1 earnings season slated to begin one week from today, and slower economic growth and tough year/year comparisons expected to snap 14 straight quarters of double-digit profit growth for the S&P 500, it's not surprising for sellers to step back in question current valuations.

Be that as it may, a rising tide has lifted nearly every boat as the worst of fears about a housing crisis spilling over into the rest of the economy have been temporarily silenced. DJ30 +126.54 NASDAQ +27.94 SP500 +12.52 NASDAQ Dec/Adv/Vol 1020/1965/1.38 bln NYSE Dec/Adv/Vol 801/2440/1.00 bln

2:00 pm : A renewed wave of buying interest within the last 30 minutes lifts the indices to their best levels of the session. All three major averages are now up more than 1%, still being led by the tech-heavy Nasdaq.

On the Dow, which stands at five-week highs, 29 of its 30 components are trading higher. Home Depot (HD 37.66 +0.87) is leading the blue-chip charge with a 2.4% gain as signs of stability in housing lure bargain hunters to the beaten-down retailer. Despite recently posting a larger than expected 7.7% decline in U.S. auto sales last month, even General Motors (GM 31.40 +0.57) is attracting buyers to the tune of a 1.9% advance. DJ30 +145.82 NASDAQ +32.41 SP500 +15.13 NASDAQ Dec/Adv/Vol 917/2045/1.26 bln NYSE Dec/Adv/Vol 786/2447/916 mln

[citizen snips]

49. Microsoft Sues Student Software Sellers

REDMOND, Wash. (AP) -- Microsoft Corp. has filed five new lawsuits against U.S. companies and individuals it claims sold deeply discounted Windows and Office software intended for students.

The company filed the suits Monday evening in federal courts in California, Nevada and Florida, alleging the parties infringed on Microsoft's copyright by importing and distributing versions of Windows and Office that were not meant to be sold through the retail channel.

"The defendants in these lawsuits and others are charged with profiting from selling clearly marked educational software to unsuspecting retail customers who were not licensed to use it," Bonnie MacNaughton, senior attorney at Microsoft, said in a statement.

Named in the lawsuits are EEE Business Inc., doing business as eBusZone.com; Eric Chan and Ruhui Li, both doing business as LCTech; and Intrax Group Inc. of California. Also named were Global Online Distribution LLC of Las Vegas and Big Boy Distribution of Florida.

more...
http://biz.yahoo.com/ap/070403/microsoft_lawsuits.html?.v=2

[citizen snips]

52. S&P 500 Leaders & Laggards

NEW YORK (AP) -- Marshall & Illsley Corp. helped lead the Standard & Poor's 500 Index higher on Tuesday amid speculation that the company may sell its Metavante unit to a private equity firm for $4 billion.

Marshal & Illsley's stock rose $3.97, or 8.7 percent, to finish at $49.83 on the New York Stock Exchange.

The S&P 500 Index rose 13.22 to end at 1,437.77.

Dean Foods Co. also climbed after the food and drink maker paid out a special $15 dividend, with some investors putting the extra money back into the stock and others buying the shares for the first time.

more...
http://biz.yahoo.com/ap/070403/s_p_500_laggards.html?.v=1

[citizen snips]

53. Nasdaq 100 Leaders & Laggards: Infosys

NEW YORK (AP) -- Infosys Technologies Ltd., India's second-largest IT company, helped lead the Nasdaq 100 to a higher finish on Tuesday.

The Nasdaq 100, which includes 100 of the largest nonfinancial securities traded on the Nasdaq Stock Market, picked up 22.98 points at 1,796.31. The Nasdaq composite added 28.07 at 2,450.33.

Infosys rose $1.88, or 3.8 percent, to $51.69. In a note to clients, Citigroup analyst Surendra Goyal said the company remains one of her top picks in the large-cap segment.

Liberty Media Interactive gained 88 cents, or 3.8 percent, at $24.35. News Corp. shareholders approved a plan to exchange Liberty's 16.3 percent stake in News Corp. for a 38.5 percent stake in satellite broadcaster DirecTV Group Inc., the nation's largest satellite television provider.

more...
http://biz.yahoo.com/ap/070403/nasdaq_100_laggards.html?.v=1

[citizen snips]

54. DJIA Leaders & Laggards: Home Depot

NEW YORK (AP) -- Better-than-expected home sales lifted Home Depot Inc. to the biggest gain on the Dow Jones industrial average on Tuesday.

The Dow rose 128.00 to end at 12,510.30.

Shares of the Atlanta-based home improvement retailer rose 84 cents, or 2.3 percent, to finish at $37.63 on the New York Exchange, after sales of existing homes rose higher than investors expected.

Altria Group Inc. climbed a day after the cigarette maker spun off its Kraft Foods unit, rising $1.43, or 2.1 percent, to end at $69.65 on the Big Board.

more...
http://biz.yahoo.com/ap/070403/djia_laggards.html?.v=1

[ozymandius]

55. closing up shop - flush volumes

Dow 12,510.30 Up 128.00 (1.03%)
Nasdaq 2,450.33 Up 28.07 (1.16%)
S&P 500 1,437.77 Up 13.22 (0.93%)
10-Yr Bond 4.664% Up 0.022
NYSE Volume 2,985,307,000
Nasdaq Volume 2,031,930,000

4:20 pm : Stocks surged Tuesday as investors rallied around easing tensions in the Middle East and reassurance about stabilization in the housing market.

The Dow turned positive for the year as its 1.0% gain erased a lackluster Q1 performance (-0.9%). Of the 147 S&P industry groups, only seven failed to participate in today's broad-based rally.

After climbing to a six-month high above $68/bbl last week, oil prices slipping below $65/bbl early on, amid easing fears of supply disruptions attributed to a potentially diplomatic release of 15 British sailors, provided the initial catalyst for the bulls to make a case for owning equities today. Crude for May delivery briefly fell below $64/bbl (-3.0%) before closing down 2.1% near $64.60/bbl, yet the Energy sector continued to attract buyers.

Further proof that the consumer is still holding up just fine in the face of so many obstacles provided an added boost to the stock market.

With the market increasingly sensitive to weak economic data, especially from the housing sector, an unexpected rise of 0.7% in February pending home sales alleviated the worst of fears that a housing crisis will develop and spread into the broader economy. That, in turn, sparked a wave of bargain-hunting interest among underperforming Homebuilders, this year's biggest laggard.

Also helping the Consumer Discretionary (+1.2%) pace the way among the 10 economic sectors posting gains and turn positive for the year were retailers, which became more attractive after a report showed chain store sales for the week ending March 31 rose 4.9%. That was the fastest pace in two months.

Technology, which also turned positive for the year, was another source of notable support.

IT Consulting Services, one of Monday's worst performing S&P industry groups, attracted enough bargain hunting interest to rank as today's best performer. Internet Software & Services turned in the session's second best performance as Google (GOOG 472.60 +14.07) soared 3.1% on plans to sell TV ads through a partnership with EchoStar Communications (DISH 44.04 +0.50) and after Goldman Sachs said shares may rise at least another 30% by the end of the year. eBay (EBAY 33.80 +0.80) surged 2.4% after Bear Stearns raised its Q1 profit and sales estimates.

The return of leadership from the struggling Financials sector, though, renewed optimism among investors that a short-term bottom has been put in place. The sector was initially in focus following reports that Warburg Pincus plans to pay about $4 bln for a stake in the upcoming Marshall & Ilsley (MI 49.73 +3.87) spin-off of Metavante. However, the encouraging pending home sales report alleviating worries of the subprime mortgage meltdown adding to the huge inventory of properties already on the market was the main driver prompting buyers to jump back into beaten-down banks and brokerage names. BTK +1.2% DJ30 12510.30 DJTA +1.8% DOT +1.4% NASDAQ 2450.33 NQ100 +1.3% R2K +1.1% SOX +0.7% SP400 +0.7% SP500 1437.77 XOI +0.1% NASDAQ Dec/Adv/Vol 1009/2029/1.92 bln NYSE Dec/Adv/Vol 867/2433/1.41 bln