STOCK MARKET WATCH, Friday June 29

[ozymandius]

Source: DU

Friday June 29, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 572 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2366 DAYS
WHERE'S OSAMA BIN-LADEN? 2078 DAYS
DAYS SINCE ENRON COLLAPSE = 2039
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
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 June 28, 2007

Dow... 13,422.28 -5.45 (-0.04%)
Nasdaq... 2,608.37 +3.02 (+0.12%)
S&P 500... 1,505.71 -0.63 (-0.04%)
Gold future... 650.40 +5.60 (+0.86%)
30-Year Bond 5.22% +0.03 (+0.62%)
10-Yr Bond... 5.12% +0.05 (+0.95%)






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

---

more Radical Fringe here


Read more: DU

[Ghost Dog]

1. Japanese Stocks Rise

http://asia.news.yahoo.com/070629/ap/d8q2brf00.html

Japanese stocks climbed Friday for a second straight session, as upbeat analysts' ratings prompted investors to snap up Toshiba and Takeda Pharmaceutical.

The Nikkei 225 index rose 206.09 points, or 1.15 percent, on the Tokyo Stock Exchange to 18,138.36 points. It was the biggest point rise in the index for June. On Thursday, the index gained 0.47 percent.

Predictions of higher-than-expected profit growth in the July-September quarter at precision equipment makers, auto companies and steel and other material producers should push the Nikkei toward 19,000, said Shigeharu Shiraishi, a managing director at Societe Generale Asset Management.

"Japanese stocks are lagging behind overseas and will catch up on rises," Shiraishi said.

...

The broader Topix index, which includes all shares on the exchange's first section, added 23.76 points, or 1.36 percent, to 1,774.88 points.

/...

[Ghost Dog]

2. HK blue chips decline 0.8 pct as Shanghai falls

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070629:MTFH08943_2007-06-29_08-04-47_HFB078298&type=comktNews&rpc=44

HONG KONG, June 29 (Reuters) - Hong Kong stocks fell on Friday as investors booked profits before a three-day holiday weekend while sharp losses on mainland bourses dragged down China Life (2628.HK: Quote, Profile , Research) and other Chinese financial plays.

The benchmark Hang Seng Index <.HSI> ended at 21,772.73.

The China Enterprises index of H-shares <.HSCE>, or Hong Kong-listed shares in mainland companies, fell 0.4 percent.

[Ghost Dog]

4. Seoul shares slip on worries over exporters

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070629:MTFH08437_2007-06-29_07-43-03_SEO310261&type=comktNews&rpc=44

SEOUL, June 29 (Reuters) - Seoul shares wrapped up the first half of 2007 on Friday with a 22 percent gain on heavy inflows of funds, but caution over the second-half outlook and a drop in Chinese stocks sent the market slightly lower for the day.

A firmer won <KRW=>, which gained 0.4 percent against the dollar this week, raised concerns about exporters, ahead of the release of quarterly earnings by LG.Philips LCD (034220.KS: Quote, Profile , Research) on July 10 and Samsung Electronics on July 13.

A strong local currency erodes exporters' competitiveness and overseas profits when repatriated.

A fall of as much as 3.44 percent in China's main stock index on Friday, on top of Thursday's 4.03 percent slide, also undermined investor sentiment. China is South Korea's largest export market.

"With the market up over 20 percent this year, investors want to see second-quarter earnings to gauge if the current valuations are appropriate and if they have more room for gains," said You Seung-min, an analyst at Samsung Securities.

The benchmark Korea Composite Stock Price Index <.KS11> fell 0.47 percent to 1,743.60 points, erasing rises of as much as 0.8 percent.

/...

[Ghost Dog]

6. China eyes stocks as it urges banks to curb loans

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070629:MTFH06847_2007-06-29_06-28-42_PEK273455&type=comktNews&rpc=44

BEIJING, June 29 (Reuters) - China's banking regulator has ordered small- and medium-sized banks to rein in lending and step up their oversight of credit flows to prevent borrowed funds from entering the heated property and stock sectors.

In a statement on its Web site (www.cbrc.gov.cn), the China Banking Regulatory Commission also urged banks to better comply with government policies on the economy and to reduce exposure to high-polluting and energy-intensive sectors.

"There are problems associated with lending by some small- and medium-sized banks that merit great attention," the commission said.

It later warned of the need to prevent individuals and companies from illicitly using bank loans to invest in stocks or the real estate sector.

/...

[Ghost Dog]

8. Japan Consumer Prices Fall, Jobless Is at 9-Year Low

http://www.bloomberg.com/apps/news?pid=20601080&sid=at8Hr70wkdyk&refer=asia

June 29 (Bloomberg) -- Japan's consumer prices fell 0.1 percent in May, a pace of decline unlikely to dissuade the central bank from raising its benchmark interest rate, the lowest among major economies.

Consumer prices excluding fresh food decreased for a fourth month from a year ago, the statistics bureau said today in Tokyo. The drop matched the median estimate of 45 economists surveyed by Bloomberg News. Prices fell at the same rate in April and 0.3 percent in March, the steepest decline in two years.

The jobless rate held at a nine-year low of 3.8 percent in May and household spending rose for a fifth month, separate reports showed. Bank of Japan Governor Toshihiko Fukui said last month that price declines wouldn't necessarily prevent the bank from raising the key rate from 0.5 percent as long as it's confident about the prospects for economic growth.

``The data aren't likely to deter the Bank of Japan from raising interest rates,'' said Takuma Kurosawa, global markets treasurer at HSBC Bank in Tokyo. ``We could see a hike in August.''

The Bank of Japan's quarterly Tankan business confidence survey on July 2 will give policy makers more evidence of the strength of the economy. Sentiment among large manufacturers probably stayed near a two-year high and companies are planning to spend more, according to economists.

/...

[Ghost Dog]

10. Asian Stocks Advance for Second Day, Led by Toyota; China Falls

http://www.bloomberg.com/apps/news?pid=20601080&sid=ar4PHhesFbM4&refer=asia

June 29 (Bloomberg) ...

The Morgan Stanley Capital International Asia-Pacific Index added 0.7 percent to 153.06 at 4:03 p.m. in Tokyo. The measure is set for a 0.3 percent slide this week, trimming its June gains to 1.9 percent. This marks its ninth straight monthly advance, the longest rally since the benchmark was introduced in 1987.

...

China's CSI 300 dropped 2.5 percent on concern signs of accelerating economic growth will prompt the government to raise interest rates. It lost 6.3 percent in June, its first monthly loss since July. For the week, it fell 7.1 percent, the biggest weekly decline since February.

Stifle the Market

Gross domestic product may rise 10.8 percent this year, the fastest pace since 1995, the People's Bank of China said in a research report published today in the China Securities Journal newspaper. Inflation may accelerate to 3.2 percent, topping the government's 3 percent target and the fastest pace since 2004.

``Concern about future interest-rate increases is still there,'' said Yan Ji, an investment manager at HSBC Jintrust Fund Management Co. in Shanghai, which manages about $517 million. ``Liquidity will be tightened and that will directly stifle the market.''

/...

[ozymandius]

3. Today's Market WrapUp

Statistical Review of World Energy 2007:
A look at British Petroleum’s Annual World Energy Report
Part II – The Emergence of China on the Global Energy Scene and Implications for the U.S.
BY CHRIS PUPLAVA

Yesterday’s commentary looked at the overall energy picture since British Petroleum (BP) began collecting data in 1965. What stood out like a sore thumb when analyzing the rate of growth in energy consumption was the surge in Chinese energy demand that began between 2001 and 2002.

-see chart-

The Link Between a Disappearing U.S. Manufacturing Base and Chinese Energy Demand

When trying to figure out what led to the surge in Chinese energy demand between 2001 and 2002, the first thought that came to mind was the U.S. recession and subsequent exportation of U.S. manufacturing to China. At first glance, when looking at the U.S. manufacturing utilization rate, where the utilization rate returned to 2000 levels last year at roughly 80%, this would seem to not be the case as manufacturing capacity rates returned to pre-2001 recession levels.

-cut-

The loss in U.S. manufacturing jobs became a boom to China’s economy as their manufacturing base surged, leading to a higher demand in energy consumption as their economy heated up. The relation between the loss in U.S. manufacturing employment and Chinese energy consumption can be seen in the figure below, where the plummeting U.S. manufacturing employment that began in 2001 corresponded to a surge in Chinese energy demand.

-cut-

Both the U.S. and China are currently dependent on each other. China dependent on the U.S. to keep its manufacturing base going, and the U.S. dependent on China to fuel our debt appetites by buying our treasuries and keeping our interest rates low. However, China has the upper hand by slowly developing a self-sustaining consuming economy as its population reduces their savings rate and increases consumption. The more the Chinese economy develops domestic consumption, the less reliant they become on U.S. consumption.

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

[UpInArms]

5. dollar watch

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

Last trade 82.053 Change -0.203 (-0.25%)

Fed Meeting Over: What Next For the US Dollar?

http://www.dailyfx.com/story/bio1/Fed_Meeting_Over__What_Next_1183072682642.html

The Federal Reserve monetary policy meeting is now behind us and with no major changes to inflation outlook and growth assessment, the impact on the currency market has been limited. The dollar is slightly higher across the board, but no new daily highs or lows have been achieved after the rate announcement. The rally in the dollar represents the market’s relief that that the Fed did not address the problems in the sub-prime sector. In fact, the Fed kept their comments on the housing market virtually unchanged. As for inflation, even though they acknowledged the fact that core price growth improved, they weren’t entirely convinced that the battle has been won. Instead, they still felt that inflationary pressures will refuse to fall. With oil prices hitting an intraday high of $70.52, the Fed has good reason to be worried. It should not be long before we see the national average of gasoline prices move back above $3 a gallon. The Federal Reserve really had no choice other than to keep the tone of the statement unchanged in order to tame the stock market bubble. For a comparison between the last two FOMC statements, see our Instant Insight. Although traders will be watching tomorrow’s PCE deflator for evidence of growing inflationary pressures, the more important releases will be personal income and personal spending. Should the gap between spending and income widen, then the US economy could seriously be in trouble, especially since the market is looking for the gap to narrow significantly. Beyond that, non-farm payrolls and service sector activity next week will provide traders with better clues on how the US economy is doing. For the time being, there is nothing to threaten the immediate trend of the US dollar.

...more...

Chinese Stocks plunge 4 percent

http://www.dailyfx.com/story/dailyfx_reports/top_fx_market_movers/Chinese_Stocks_plunge_4_percent_1183075276666.html

Today, the Shanghai composite index, China’s main stock market index, fell by nearly 4 percent to 3,914.2, amid concern that the PBOC may have to increase the benchmark interest rate to control the existent price and wage pressures. Yi Gang, China’s assistant central bank governor, said his agency is determined to make use of a range of monetary policy tools to curb inflation, including interest rate hikes, according to the China Daily. China's economic growth remains well sustained but a slowing economy in the United States should be a key external risk to the Chinese growth in 2007.

Another Step In Stabilizing China’s Financial Markets

Officials at the China Financial Futures Exchange introduced a new futures contract that would track the CSI 300 Index. Major investment hubs the world over have offered these products, primarily used to hedge adverse price movements in the underlying, for some time. The exchange laid out the standard rules for the contract’s trading. A few of the noteworthy attributes were: a 6 percent daily limit that would hold trading for 5 minutes followed by 10 percent limit; a limit of 600 contracts per investor for each contract month; and a clear allowance for the exchange to liquidate traders positions under certain circumstances. Each contract is valued by multiplying the index’s point level by 300 yuan; and to trade the contact, investors need to put up 10 percent of its overall value. Consequently, this will not be an investment vehicle for the average trader, rather a product that will be utilized by bigger institutions. While some regulatory officials are uncertain over how the product may affect the underlying equities market, it should help to protect against major losses and excessive volatility since short selling is not permitted in Chinese stocks. The exchange has not offered a date for when the contract will begin trading.



...more...

[UpInArms]

22. lol! Fed statement supports dollar

http://news.yahoo.com/s/ft/20070629/bs_ft/fto062920070557352389

The dollar advanced against the yen on Friday after the Federal Reserve restated its concern over the potential build-up of inflationary pressures in the US economy.

The central bank, as expected, left US interest rates on hold at 5.25 per cent after its policy meeting, but reiterated that its "predominant policy concern remains the risk that inflation will fail to moderate as expected".

Tom Vosa at National Australia Bank said the Fed's statement was a little more hawkish than markets were expecting, prompting a rally in the dollar.

However, the dollar failed to hold on to gains against the euro and sterling, coming back to trade flat at $1.3445 and $2.0020 respectively.

Against the yen, however, the dollar was given further support by weak Japanese consumer price inflation data which showed a 0.1 per cent fall in May, the fourth fall in successive months.

...more...

obviously that writer doesn't understand yentervention :eyes:

[Ghost Dog]

38. Dollar slips vs euro as risk appetite returns

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=usDollarRpt&storyID=2007-06-29T133235Z_01_N29401335_RTRIDST_0_MARKETS-FOREX-UPDATE-8.XML

NEW YORK, June 29 (Reuters) - The euro and high-yielding currencies gained against the dollar on Friday while the low-yielding yen weakened broadly, as investor risk appetite returned, prompting carry trades.

In carry trades, dealers sell assets in low-yielding currencies for those in ones offering higher returns.

A report showing a rise in U.S. core personal consumption expenditures, which strips out food and energy costs, was in line with expectations had little impact on currency markets. For details see .

"The core (PCE) reading is a positive in terms of inflationary pressures; however, the lack of reaction ... is due to the fact that the Fed indicated they're moving away from this sort of focus on past readings," said David Powell, senior currency strategist at IDEAglobal in New York.

The euro vaulted above $1.35 for the first time in three weeks, while the Canadian, Australian and New Zealand dollars hit their highest levels in decades as the yen slid across the board, although the Canadian unit later slipped slightly.

In early New York trade, the euro was up 0.5 percent against the dollar at $1.3516 <EUR=>, and up 0.7 percent versus the yen at 166.70 yen <EURJPY=>.

The dollar gained 0.2 percent against the yen <JPY=> to trade at 123.34. The dollar is poised to post its best performance against the yen since Dec 2001.

/...

[Ghost Dog]

41. Sterling near 5-mth high, BoE hike awaited next wk

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=ukPoundRpt&storyID=2007-06-29T143428Z_01_L29527092_RTRIDST_0_MARKETS-STERLING-CLOSE.XML

LONDON, June 29 (Reuters) - Sterling hit a near five-month high against a trade-weighted basket of currencies on Friday, supported by expectations of a Bank of England interest rate rise next week and at least one more hike by year-end.

However the pound's gains proved short lived versus the euro, with the single European currency rebounding as investors squared books on the last trading day of the month, the quarter and the half year.

UK data on growth, mortgage lending and consumer confidence on Friday, pointed to a reasonably buoyant economy, keeping intact expectations for a rate hike to 5.75 percent next week.

/...

[Ghost Dog]

39. Dollar share of global reserves slips as euro gains -IMF

http://www.reuters.com/article/economicNews/idUSNYA00013520070629?rpc=401&

NEW YORK,June 29 (Reuters) - Global central banks' holdings
of dollars rose 4 percent to a record $2.24 trillion in the
first quarter of 2007, although the greenback's share of total
reserves edged down to its lowest in at least a decade, data
from the International Monetary Fund showed on Friday.

The dollar's share of the $3.5 trillion of global reserves
of which the composition is known slipped to 64.2 percent from
64.6 percent in the final quarter of last year, while the
euro's share rose to a record 26.1 percent from 25.9 percent.

Total global reserves surged 5.2 percent to $5.3 trillion,
as China and other emerging economies' central banks continued
to amass foreign currencies due to hefty trade surpluses and
intervention to keep their currencies from rising.

[ozymandius]

7. Today's Reports-a-plenty

8:30 AM Personal Income May
Briefing Forecast 0.6%
Market Expects 0.6%
Prior -0.1%

8:30 AM Personal Spending May
Briefing Forecast 0.7%
Market Expects 0.7%
Prior 0.5%

8:30 AM Core PCE Inflation May
Briefing Forecast 0.1%
Market Expects 0.1%
Prior 0.1%

9:45 AM Chicago PMI Jun
Briefing Forecast 58.0
Market Expects 58.0
Prior 61.7

10:00 AM Construction Spending May
Briefing Forecast 0.2%
Market Expects 0.2%
Prior 0.1%

10:00 AM Mich Sentiment-Rev. Jun
Briefing Forecast 83.7
Market Expects 84.0
Prior 83.7

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

[UpInArms]

20. 8:30 reports:

01. U.S. May real consumer spending up 0.1%
8:30 AM ET, Jun 29, 2007 - 2 minutes ago

02. U.S. May real disposable incomes fall 0.1%
8:30 AM ET, Jun 29, 2007 - 2 minutes ago

03. U.S. May pesonal savings rate falls to -1.4%
8:30 AM ET, Jun 29, 2007 - 2 minutes ago

04. U.S. May consumer spending up 0.5% vs. 0.7% expected
8:30 AM ET, Jun 29, 2007 - 2 minutes ago

05. U.S. May incomes up 0.4% vs. 0.6% expected
8:30 AM ET, Jun 29, 2007 - 2 minutes ago

06. U.S. core inflation within Fed comfort zone
8:30 AM ET, Jun 29, 2007 - 2 minutes ago

07. U.S. core consumer inflation up 1.9% vs. year ago
8:30 AM ET, Jun 29, 2007 - 2 minutes ago

08. U.S. May core consumer prices up 0.1% as expected
8:30 AM ET, Jun 29, 2007 - 2 minutes ago

[UpInArms]

28. Chicago PMI @ 60.2%

02. June Chicago PMI fall to 60.2% vs. 57.5% expected
9:46 AM ET, Jun 29, 2007 - 3 minutes ago

[UpInArms]

30. UMich says we are HAPPY dammit!

09. UMich June sentiment above 88.3 in May
10:01 AM ET, Jun 29, 2007 - 15 minutes ago

10. UMich June sentiment above 84.1 forecast
10:01 AM ET, Jun 29, 2007 - 15 minutes ago

11. UMich June sentiment revised up to 85.3 vs 83.7
10:01 AM ET, Jun 29, 2007 - 15 minutes ago

12. U.S. April construction spending rises revised 0.2%
10:00 AM ET, Jun 29, 2007 - 16 minutes ago

13. U.S. May private construction spending rises 0.5%
10:00 AM ET, Jun 29, 2007 - 16 minutes ago

14. U.S. May pvt residential construction spending falls 0.8%
10:00 AM ET, Jun 29, 2007 - 16 minutes ago

15. U.S. May federal construction spending rises 4.1%
10:00 AM ET, Jun 29, 2007 - 16 minutes ago

16. U.S. May construction spending jumps 0.9%
10:00 AM ET, Jun 29, 2007 - 16 minutes ago

[ozymandius]

9. Oil prices back above $70 a barrel

VIENNA, Austria - Oil prices shot back up above the psychologically important $70 mark on Friday, trading above that level for the second time in two days on worries about gasoline supplies.

With most U.S. refineries expected to increase output in the coming months after finishing maintenance, pressure on gasoline was expected to drop. Still, prices could remain high because increased refinery capacity puts greater demands on crude availability.

Light, sweet crude for August delivery rose 61 cents to $70.18 a barrel by midday in European electronic trading on the New York Mercantile Exchange. August Brent crude on the ICE Futures exchange in London rose 71 cents to $71.20 a barrel.

-cut-

Thursday's jump was driven by concerns over summer supplies following the release of a weekly U.S. government report that showed gasoline inventories dropped unexpectedly as the driving season neared its peak. Oil prices pulled back late in Thursday's session as traders locked in profits after prices penetrated $70, analysts said.

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

[radfringe]

15. increased refinery capacity puts greater demands on crude availability.

prices were high because refinery capacity was down

prices are now high because increased refinery capacity causes crude shortage

next they will be blaming it on cats having kittens

[UpInArms]

26. Crude up 89 cents - @ $70.47 bbl

03. August crude up 89 cents, or 1.3%, at $70.47 a barrel
9:36 AM ET, Jun 29, 2007 - 3 minutes ago

[UpInArms]

11. Report: China raises minimum wages

http://news.yahoo.com/s/ap/20070629/ap_on_bi_ge/china_wage_boost

BEIJING - China's government has ordered minimum wages raised to help the poor cope with soaring food costs, a state news agency reported Friday.

Chinese leaders have been alarmed by a spike in inflation that saw the price of eggs rise 37.1 percent in May from their price in the same month last year. Meat and poultry were 26.5 percent more expensive in May compared to a year ago.

The increase "would have a great impact on low-income families," the Xinhua News Agency said.

<snip>

The highest current minimum wage in China is 810 yuan ($106) a month in the southern business center of Shenzhen. The lowest is 270 yuan ($35) in the eastern province of Jiangxi.

Shanghai, one of the world's most expensive cities, raised its minimum monthly wage by 60 yuan ($7.80) to 750 yuan ($98) last year.

...more at link...

[UpInArms]

23. China's economy expected to grow 10.8 percent in 2007: central bank

http://news.yahoo.com/s/afp/20070629/bs_afp/chinaeconomygrowth

SHANGHAI (AFP) - Growth in China's economy is expected to expand at a rapid rate in 2007, with inflation ticking higher to 3.2 percent, state media reported Friday, citing the central bank.

The nation's gross domestic product (GDP) should expand 10.8 percent this year, slightly higher than the 10.7 percent in 2006, the fourth consecutive year of double-digit growth, according to the bank's research report published in the China Securities Journal.

It said that after the blistering 11.1 percent growth recorded in the first quarter, the second quarter pace of growth should slip to 10.9 percent followed by 10.7 percent and 10.6 percent in the third and fourth quarters respectively.

"The trend in the high growth of gross domestic product should suggest an adjustment, but the extent of a pull-back is unlikely to be large," the bank said.

<snip>

China's trade surplus for May hit 22.45 billion dollars, up nearly 73 percent from a year earlier and was the second-highest ever behind February's figure of 23.7 billion dollars.

...more...

[Ghost Dog]

12. European stocks turn lower

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B3825e8c5%2D3bc2%2D437e%2Db614%2Dd0e4a0220530%7D

European equities were a little lower on Friday as the global interest rate backdrop caused concerns. By midday, the FTSE Eurofirst 300 was down 0.4 per cent to 1,588.97, Frankfurt’s Xetra Dax fell 0.1 per cent to 7,910.27, the CAC 40 in Paris lost 0.4 per cent to 5,981.08 and London’s FTSE 100 shed 0.5 per cent to 6,538.2. Investors were cautiously awaiting US inflation data, a day after the Federal Reserve kept US interest rates at 5.25 per cent, but said it remained concerned by rising prices. Following Thursday’s strong bounce, the European banking sector resumed its downward path as brokers turned wary. On Wednesday, Dresdner Kleinwort cut the sector to ”underweight” saying banks faced the consequences of either slowing growth or higher interest rates. JPMorgan on Thursday said it was ”underweight” on UBS and Deutsche Bank, saying risk management related to the US subprime mortgage market had to be questioned. Deutshce Bank shares were down 0.4 per cent to €106.38 and UBS fell 1.2 per cent to SFr72.40. Swatch, the Swiss watchmaker, gained 2.1 per cent to SFr346.25 after Deutsche Bank raised its rating on the company from ”hold” to ”buy” and lifted its price target from SFr320 to SFr387.

[Ghost Dog]

40. Bourses stage recovery as Wall Street gains

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B00497152%2Dba1a%2D478a%2Da81b%2Dd4fbe7121e74%7D

European bourses pared losses on Friday afternoon after US data showed the year-on-year rise in consumer inflation in May was the slowest in over three years, supporting the case against further interest rate rises in the US. In company news, Swatch, the Swiss watchmaker, gained 2.9 per cent to SFr3495 after Deutsche Bank raised its rating on the company from ”hold” to ”buy” and lifted its price target from SFr320 to SFr387. By the close, the FTSE Eurofirst 300 was up 0.6 per cent to 1,604.64, Frankfurt’s Xetra Dax rose 1.1 per cent to 8,007.32, the CAC 40 in Paris put on 0.8 per cent to 6,054.93 and London’s FTSE 100 closed up 0.6 per cent at 6,607.9

[ozymandius]

13. Fed nods to easing inflation, but still worried

WASHINGTON (Reuters) - The Federal Reserve on Thursday held benchmark U.S. interest rates steady and, while nodding to a recent easing in core inflation, restated that inflation is its top concern.

The decision by the central bank's Federal Open Market Committee keeps the overnight federal funds rate target at 5.25 percent, the level it hit in June last year after 17 straight quarter-percentage point increases.

In a statement outlining its decision, the U.S. central bank dropped a reference to core inflation as "elevated" that had been in its two prior rate announcements. Nonetheless, it expressed concern that an easing in the pace at which nonfood, nonenergy prices were rising could prove fleeting.

http://news.yahoo.com/s/nm/20070628/bs_nm/usa_fed_rates_dc

[UpInArms]

14. First-Quarter Economic Growth Was Slowest Since Late 2002

http://www.nytimes.com/2007/06/29/business/29econ.html?ex=1340769600&en=3afc3127518dd201&ei=5088&partner=rssnyt&emc=rss

WASHINGTON, June 28 (Reuters) — The economy grew at a 0.7 percent annual rate in the first three months of this year, the weakest in more than four years, but a closely watched inflation gauge unexpectedly accelerated, data showed on Thursday.

It was the weakest quarterly expansion in the gross domestic product since the fourth quarter of 2002. The slowdown came as businesses sold off inventories even though consumer spending remained strong.

But a leading inflation gauge favored by the Federal Reserve — the personal consumption expenditures price index excluding food and energy prices — showed that price pressures were stronger than expected.

The index was revised up to a 2.4 percent rate from the prior 2.2 percent estimate. Economists expected the core index to remain at 2.2 percent.

...more...

[UpInArms]

16. Justices End 96-Year-Old Ban on Price Floors

http://www.nytimes.com/2007/06/29/business/28cnd-bizcourt.html?em&ex=1183262400&en=5887cb2d264e7eaf&ei=5087

WASHINGTON, June 28 — Striking down an antitrust rule nearly a century old, the Supreme Court ruled today that it is no longer automatically unlawful for manufacturers and distributors to agree on setting minimum retail prices.

The decision will give producers significantly more leeway, though not unlimited power, to dictate retail prices and to restrict the flexibility of discounters.

Five justices said the new rule could, in some instances, lead to more competition and better service. But four dissenting justices agreed with the submission of 37 states and consumer groups that the abandonment of the old rule would lead to significantly higher prices and less competition for consumer and other goods.

The court struck down the 96-year-old rule that resale price maintenance agreements were an automatic, or per se, violation of the Sherman Antitrust Act. In its place, the court instructed judges considering such agreements for possible antitrust violations to apply a case-by-case approach, known as a “rule of reason,” to assess their impact on competition.

The decision was the latest in a string of opinions this term to overturn Supreme Court precedents. It marked the latest in a line of Supreme Court victories for big businesses and antitrust defendants. And it was the latest of the court’s antitrust decisions in recent years to reject rules that had prohibited various marketing agreements between companies.

...more...

[UpInArms]

17. Beazer Homes Shares Fall After Executive&#8217;s Firing

http://www.nytimes.com/2007/06/29/business/29beazer.html?ex=1340769600&en=560ebbbd82470b62&ei=5088&partner=rssnyt&emc=rss

Shares of Beazer Homes USA fell as much as 9.5 percent yesterday, the most since March, after the company fired its chief accounting officer, saying he tried to destroy documents during an F.B.I. investigation.

Beazer, based in Atlanta, terminated the accounting officer, Michael T. Rand, after an internal investigation of the company’s mortgage unit, according to a filing with the Securities and Exchange Commission on Wednesday, after the close of regular stock market trading. A message left at Mr. Rand’s home was not immediately returned.

The Federal Bureau of Investigation said in March that it was investigating the company for potential fraud after The Charlotte Observer reported Beazer had sold homes to low-income buyers who could not afford them, financing the purchases with mortgages based on expectations that the borrower’s income would rise. That practice is prohibited by the Federal Housing Administration, which provides loan guarantees for home buyers.

...more...

[UpInArms]

18. Federal Court Freezes Assets of Hedge Fund in Chicago

http://www.nytimes.com/2007/06/29/business/29hedge.html?ex=1340769600&en=d54183393c07c2a5&ei=5088&partner=rssnyt&emc=rss

A federal court froze the assets of Lake Shore Asset Management, a hedge fund firm run by a former chairman of the Chicago Mercantile Exchange, after regulators said it overstated its holdings.

Lake Shore, based in Chicago, said that it managed $1 billion for investors and traded in United States commodity futures contracts, according to the Commodity Futures Trading Commission. A review showed that the fund had about $466 million. Lake Shore barred regulators from inspecting its accounts on June 14, which is a violation of the Commodity Exchange Act, according to the commission’s complaint.

Laurence M. Rosenberg is listed as Lake Shore’s director, according to records from the National Futures Association, a self-regulating group for the futures industry. He is a previous chairman of the Chicago Mercantile Exchange, the largest American futures exchange. Lake Shore had been profitable 13 years in a row, the trading commission said.

The commission froze $228 million of investors’ money at Lake Shore, according to a spokeswoman, Ianthe Zabel.

...more...

[UpInArms]

19. OMG - Michael Ledeen just poked out of the Bear Stearns story

http://www.nytimes.com/2007/06/29/business/29bear.html?ex=1340769600&en=9a0215a8fd1754f6&ei=5088&partner=rssnyt&emc=rss

excerpt:

Front and center is Mr. Cayne, 73, the oldest chief executive of a Wall Street firm and now confronted with salvaging the firm’s reputation. He is a world-class bridge player who did not finish college and whose first job was as a traveling salesman selling copiers in the Midwest.

His ascent has been a result of a card player’s guile, a brilliant run trading the distressed bonds of New York City in the early 1970s and a boundless belief in his abilities and that of his firm.

“It’s an amazing story,” said Michael Ledeen, the foreign policy analyst and Mr. Cayne’s bridge partner. “He didn’t go to Harvard Business School — he was a bridge bum,” Mr. Ledeen said, and Mr. Cayne’s predecessor, Alan C. Greenberg, known as Ace, needed a bridge partner.

“Ace said come work at Bear,” Mr. Ledeen said, “and then Jimmy made a market in New York City municipal bonds and then the frog turned into the prince.”

...more...

[UpInArms]

25. Bear Stearns likely to face hedge fund lawsuits

http://news.yahoo.com/s/nm/20070628/bs_nm/bearstearns_hedgefund_lawsuits_dc

NEW YORK (Reuters) - Investors in two struggling Bear Stearns Cos. (NYSE:BSC - news) hedge funds that made bad bets on risky mortgages will almost surely file lawsuits in hopes of recouping losses, but legal experts say they could have a tough time proving their case.

Already, some investors in the funds are talking to lawyers about bringing cases. Potential lawsuits likely would hinge on whether investors were fully informed of risks, lawyers say.

Ross Intelisano, an attorney who handles investor cases against financial firms, said his law firm has been contacted by two investors in the Bear Stearns funds -- a fund of funds and a small institutional investor he would not identify -- about possibly bringing lawsuits.

The law firm has not been retained in the Bear Stearns matter yet "but that may change," Intelisano said. His firm, Rich & Intelisano, currently represents investors who lost a combined $20 million in the 2005 collapse of the Bayou hedge fund amid charges of fraud and mismanagement.

The troubled Bear Stearns funds invested in complex portfolios of debt linked to the subprime-mortgage market, which has seen rising defaults. Bear Stearns has said it would lend $1.6 billion -- half of what it originally pledged -- to one of the funds to prevent it from collapsing. It said it does not expect to bail out the second ailing fund.

...more...

[mojavekid]

29. Peter Schiff: SUBPRIME SHOES CONTINUE TO DROP

http://www.financialsense.com/fsu/editorials/schiff/2007/0628.html

The meltdown in the subprime mortgage market is inexorably spreading throughout the U.S. economy. The first shoe dropped in February, when scores of mortgage originators went bust amid rising defaults and tightening lending standards. Last week, the second shoe dropped as two CDO-focused Bear Stearns hedge funds blew up. Overshadowed by the Bear Stearns drama which unfolded at the same time, California-based brokerage firm Brookstreet Securities shut its doors when unsecured customer losses from margined investments in collateralized mortgage obligations were "unrepentantly" marked down. However, as the subprime monster likely resembles a giant centipede, this will not be the last show to drop.

Bear Stearns' reluctance to mark down the value of their overpriced CDOs is mirrored by an equal desire among homeowners to hold tight to their fantasies of real estate riches. Despite the obvious weakness in the current market, deluded sellers continue to behave as if the boom of 1998-2005 never ended. A recent survey by Boston Consulting Group showed that 55% of home owners believe they could sell their house for more now than a year ago, and nearly three-quarters think they could sell their homes within the next six months at a price they set. Is it any wonder that there is a record 8.9 months supply of new homes on the market?

Just as CDOs are not worth the "marked to market" value conveniently assigned by Wall Street, homes throughout the country are not worth anything near the asking prices listed on "For Sale" signs. Wall Street may be able to buy some time by bailing out troubled hedge funds to keep their worthless subprime mortgage investments off the market, but no such safety nets exist for strapped consumers looking down the barrel of resetting adjustable rate mortgages. Inventories will continue to balloon until reluctant home owners come to their senses and slash prices.

more....

[UpInArms]

31. Feds writing subprime rules

01. Feds say banks must verify that borrowers can repay
10:03 AM ET, Jun 29, 2007 - 13 minutes ago

02. Feds limit no-documentation subprime mortgages
10:03 AM ET, Jun 29, 2007 - 13 minutes ago

03. Feds limit prepayment penalties on subprime mortgages
10:03 AM ET, Jun 29, 2007 - 13 minutes ago

[mojavekid]

32. WSJ Online: Fewer People Are Starting Their Own Households

http://blogs.wsj.com/economics/2007/06/26/fewer-people-are-starting-their-own-households

Worries about the economy could be discouraging people from living on their own. Household formation, measured by the increase in housing units occupied by owners or renters, took a huge drop in the first quarter. If the pace holds, it could mean trouble for a housing market already facing high inventories and falling prices.

Households had been forming at a pace of about a million a year, but that has dropped more than half in the first quarter. At the end of the period the total number of households stood at 109.7 million, an increase of just 415,000 from a year earlier, according to the Census Bureau.

The pace of formation typically declines during economic slowdowns. So the latest drop is surprising amid a strong job market, rising wages, record household wealth and a stock market near record levels, said Lawrence Yun, senior economist at the National Association of Realtors. “Given this positive economic backdrop, for household formation to weaken this much is implying that people have the financial capacity but they don’t have the confidence to move on their own,” he said in an interview. Instead, they may be finding roommates or moving in with their parents.

The numbers should make homebuilders especially nervous. Housing starts in May were at a pace of 1.5 million a year. Construction normally should be at a pace that accounts for household formation plus replacement of about 300,000 units that are demolished, Mr. Yun said. That means housing starts are almost double what they should be, and that doesn’t even take into account weakness across the rest of the housing sector.

more...

[UpInArms]

34. good grief!

those discouraged people just aren't getting their ration of chocolate!

[Demeter]

21. Excellent Cartoon There!

[radfringe]

44. Thanks - and tomorrow's may cause

a spit take --- have cleaning supplies handy

[UpInArms]

24. NYSE halts erroneous trades

http://news.yahoo.com/s/ft/20070629/bs_ft/fto062820072112182308

The New York Stock Exchange was forced to halt trading in three stocks early on Thursday after erroneous orders from a broker were spotted by an NYSE specialist.

<snip>

Van Der Moolen, a long-standing NYSE specialist, reported Thursday's problem, which was thought to centre on suspicious-looking orders that were 50 to 100 times normal volume.

The NYSE immediately halted trading in Wyeth, Jefferies and AT&T stock.

Trading in all the stocks was Jefferies was reopened before midday in New York.

The exchange said in a statement: "Floor professionals recognised the problem before trading began, thus avoiding public trading at incorrect prices on the NYSE.

"We are actively working through the process of cancelling these orders."

...more...

[DemReadingDU]

27. Jubak: Deepening debt crisis hits close to home

6/29/07 Deepening debt crisis hits close to home Jim Jubak
Who's likely to get badly hurt as the subprime lending crunch assaults various pools of high-risk debt? Pension funds, mutual funds and other victims shockingly close to your wallet.
The pools of debt investments that are at the center of this story -- things that go by names such as collateralized debt obligations (CDOs) and collateralized loan obligations (CLOs) -- are pools of mortgages, corporate bonds, corporate loans and other sorts of debt.

http://articles.moneycentral.msn.com/Investing/JubaksJournal/DeepeningDebtCrisisHitsCloseToHome.aspx

If the bond market does indeed suffer a meltdown, it will be brought down by things called CDOs and CLOs. 4 minute video

http://video.msn.com/v/us/money.htm?g=8bb0832c-6cfc-4cac-b372-ee332fb41838&f=15/64deepeningdebtcrisishitsclosetohome&fg=email

[UpInArms]

33. 10:18 EST Happy Happy Joy Joy in LaLa Land

Dow 13,511.94 up 89.66 (0.67%)
Nasdaq 2,622.97 up 14.60 (0.56%)
S&P 500 1,514.99 up 9.28 (0.62%)
10-Yr Bond 5.06% up 0.058

NYSE Volume 458,045,000
Nasdaq Volume 331,772,000

10:00 am : The indices are extending their reach to the upside as all 10 sectors are now in positive territory. Oil prices may be hitting fresh session highs near $70.60/bbl (+1.5%); but a subsequent rally in Energy (+1.5%) leaves investors embracing the sector's likely return as a large contributor to aggregate earnings growth on the S&P 500. The tame core CPI reading is also helping to offset oil's potential inflationary characteristics.

Materials (+1.3%) and Utilities (+1.2%) are the other sectors posting a gain of at least 1.0%; but a spike higher in Industrials (+0.6%) following a better than expected read on regional manufacturing activity is acting as a bigger source of support. About 15 minutes ago, Chicago PMI checked in at 60.2% (consensus 58.0), signaling continued expansion in the region, while the prices-paid index fell to 68.1% from 70.2%. The report also raises hopes that Monday's more influential national ISM survey will also show strength. DJ30 +60.64 NASDAQ +13.86 SP500 +9.30 XOI +1.6% NASDAQ Dec/Adv/Vol 901/1633/180 mln NYSE Dec/Adv/Vol 642/2127/84 mln

09:40 am : With policy makers making it clear yesterday that inflation remains a predominant concern, further evidence that core prices are falling faster than expected has renewed some optimism on Wall Street. Earlier, the closely watched core-PCE deflator, which is regarded as the Fed's favored inflation gauge, rose just 0.1% in May.

That pushed the year-over-year rate to 1.9%, which is finally within the Fed's 1.0% to 2.0% "comfort zone" and now below its 2007 forecast of 2.0% to 2.25%. It is worth noting, though, that early gains are modest at best as investors are still grappling with a sentiment shift and a market that failed yesterday to live up to its recent tendencies of rallying on the heels of a Fed decision and accompanying policy statement. DJ30 +18.93 NASDAQ +9.58 SP500 +4.53 NASDAQ Vol 88 mln NYSE Vol 38 mln

[mojavekid]

35. LAT Blog: Inside the Mind of the Bubble (with a great graph)

http://latimesblogs.latimes.com/laland/2007/06/tuesday-morning.html



Those of you who believe it's a bubble will want to clip and save this item, which comes courtesy of the Irving Housing Blog. As you can see, it's a map of the "Psychology of a Bubble":(CLick link above for graph)

"The above graph is an excellent depiction of the psychological stages of a market bubble. It is fairly easy to put time frames to each of these stages as displayed by our local housing market:
• Take off: 1998-1999
• First Sell Off: 2000
• Media Attention: 2001-2002
• Enthusiasm: 2003
• Greed: 2004-2005
• Delusion: 2006
• Denial: 2007
• Fear: 2008
• Capitulation: 2009-2010
• Despair: 2011-2013
• Return to the Mean: 2014

more...

[focusfan]

36. can anyone send me the banner of the days George W. has in office?

i had mine on my space but my sister deleted it.my space name
is curvy71.thanks in advance

[TrogL]

37. Loonie Watch

Yes, I know it's Saturday.

I don't care.

Look at the blather.

Blather

The September Canadian Dollar was sharply higher overnight and spiked above the previous high crossing at .9507. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. Closes above June's high crossing at .9507 are needed to renew this year's rally and would open the door for a larger-degree rally into July. Closes below the reaction low crossing at .9313 would confirm that a top has been posted. Overnight action sets the stage for a higher opening in early-day session trading.

[UpInArms]

42. end of the week

Dow 13,408.62 down 13.66 (0.10%)
Nasdaq 2,603.23 down 5.14 (0.20%)
S&P 500 1,503.35 down 2.36 (0.16%)
10-Yr Bond 5.033% up 0.085

NYSE Volume 3,133,013,000
Nasdaq Volume 2,270,062,000

4:20 pm : With a more than 210-point swing on the Dow, being up more than 100 points and down more than 100, it's safe to say that end-of-the quarter volatility played a role in Friday's choppy action.

Throw in a London bomb scare heading into a holiday-shortened week, oil prices hitting 10-month highs, and renewed jitters about subprime spillover, and it wasn't totally surprising to see such a strong quarter invite some profit taking on the last trading day as fund managers made adjustments to their portfolios.

The Dow, S&P 500, and Nasdaq closed out the second quarter with gains of 8.5%, 5.8%, and 7.5%, respectively.

Before all of that transpired, though, things were shaping up rather nicely for the bulls. A day after policy makers reiterated their stance on inflation, more proof that core prices continue to fall faster than expected acted as the main catalyst driving stocks right out of the gate.

The closely watched core-PCE deflator -- the Fed's favored inflation gauge -- rose just 0.1% in May. That pushed the year-over-year rate to 1.9%, which is finally within the Fed's 1.0% to 2.0% "comfort zone" and now below their 2007 forecast of 2.0% to 2.25%.

Further evidence of improving manufacturing conditions (i.e. Chicago PMI), a solid read on construction spending, and an upward revision to monthly sentiment initially gave equities an added boost.

Nonetheless, with sentiment shifting over the last couple of weeks to one that now leaves market rebounds as vulnerable to swift pullbacks as market dips a short time ago created buying opportunities, it also wasn't too shocking to see this morning's rally run into some headwinds that wiped out the early gains.

Financials turning in the day's worst performance (-0.8%), and weakening throughout the session despite a simultaneous improvement in bond yields, made it apparent that concerns about the subprime mortgage market remain prevalent. The Investment Banks group ranked among the day's worst performing S&P groups (-1.6%).

On a positive note, bond yields finished near session lows. However, position squaring, geopolitical risk and underlying hedge-fund worries largely attributing to the safe-haven bid in Treasuries hardly acted as an offset.

Of the other four sectors trading lower, the absence of leadership from Technology and Health Care also contributed to the bulls' uphill battle late in the day. That left the focus on areas like Telecom and Utilities to bring up the rear; but solid gains from two of the least influential sectors were hardly enough to incite enough enthusiasm to close the quarter on a strong note. DJ30 -13.66 NASDAQ -5.14 SP500 -2.36 NASDAQ Dec/Adv/Vol 1704/1360/2.06 bln NYSE Dec/Adv/Vol 1598/1712/1.64 bln

3:30 pm : Stocks have been blindsided by a wave of selling pressure within the last 20 minutes, spiking to session lows. Everything from lingering subprime concerns, as reflected in the Financial sector being down more than 1.3%, to renewed terrorism concerns approaching a holiday, as evidenced by the flight-to-quality bid in Treasuries, is being cited for the market's sell-off.

The fact that fund managers squaring their positions, which typically leads to increased volatility late in the session on the last day of the quarter, is also contributing to recent weakness. Adding to the market's recent struggles have been the Dow, S&P 500 and Nasdaq's inability to find support above key technical levels of 13345, 1496 and 2593, respectively. The Dow, which was up more than 102 points in early trading, was down as much as 107 points. DJ30 -102.02 NASDAQ -17.21 SP500 -11.32 NASDAQ Dec/Adv/Vol 1800/1202/1.65 bln NYSE Dec/Adv/Vol 1671/1590/1.08 bln

[mojavekid]

43. AP: Mayor Awaits IPhone, Leaves Line After Being Asked About Murders

http://biz.yahoo.com/ap/070629/apple_iphone_mayor.html?.v=2

Mayor Waits for IPhone, Then Leaves Line


PHILADELPHIA (AP) -- Mayor John F. Street abruptly ended his wait in line for an iPhone Friday after a passer-by asked him about the city's murder rate.
Street, who showed up outside an AT&T store at 3:30 a.m., left shortly after 22-year-old Larry West asked him, "How can you sit here with 200 murders in the city already?"

Street told him: "I'm doing my job."

Street had planned to stay in line for most of the day, waiting for Apple Inc.'s iPhone to go on sale at 6 p.m. When he left at 11:30 a.m., Street said he planned to return to his spot.

West returned later in the day to protest Street's actions -- only to find the mayor still hadn't returned.

more....