STOCK MARKET WATCH, Friday 28 October

[ozymandius]

Friday October 28, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 86 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1772 DAYS
WHERE'S OSAMA BIN-LADEN? 1471 DAYS
DAYS SINCE ENRON COLLAPSE = 1433
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
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 October 27, 2005

Dow... 10,229.95 -115.03 (-1.11%)
Nasdaq... 2,063.81 -36.24 (-1.73%)
S&P 500... 1,178.90 -12.48 (-1.05%)
10-Yr Bond... 4.56% -0.03 (-0.72%)
Gold future... 475.60 +2.60 (+0.55%)






GOLD, EURO, YEN, Dollars and Loonie


PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Jim Willie CB

EURO AT CROSSROADS

Yet another battle royal has hit the scene. Such battles make up a long list, whether with TNote yield, S&P500 defense, gold price support, copper price breakout, bankers index defense, General Motors demise, Delphi failure, crude oil defense, natural gas or unleaded gasoline explosive moves, yen turnaround, housing index bump & run, Fanny Mae stock price, etc. My eye has been on the euro currency in the last few weeks. Since June, when the euro weakened, the gold price rallied upward. In these last few weeks, when the euro strengthens, the gold price has rallied upward. Call this a notable change in the wind direction. The gold price is consolidating in euro terms after a powerful upleg since August. The USDollar index, faulty as it is (being basically an “anti-euro index”) from its 1960 decade adherence to trade weights, shows as much resistance at DXY=90 and support at EURO=120, each a reflection of the other critical line. Given the profit-taking and consolidation in the gold market since the 480 level was touched a few weeks ago, we have clear identification of critical lines of defense, support, and resistance for gold. See the pie chart for how absurd any dollar index is which has no weight for China, and a weight more than four times larger for Europe than Japan.

The Euro Central Bank at the end of September turned down the opportunity to cut interest rates. Some expected the ECB to cut, as FOREX professionals had sold down the euro currency in anticipation of an event which did not occur. In response to the decision of no action, the FOREX market bid up the euro above 121 suddenly. For the second time since summer, the 120 level was rebuffed. Critical support has been set at 120 in a clear fashion. Back in early June, the euro was under siege from lost confidence after the French and Dutch NON votes for central power in Brussels. It was my expectation that the euro would successfully defend the 120 level in midsummer, and it did so, much to my satisfaction. The sale of truckloads of gold bullion by the ECB was used to purchase euros in that defense. So much for lost confidence. The last thing their officials want is a run on their young currency, which would force them to raise interest rates in desperation. In September it was my expectation that the USFed would herald an end to rate tightening, in view of economic slowdown and monumental hurricane relief and reconstruction. That gathering policy formation did not occur. Instead, the USFed seems to have responded to monumental irresponsibility by the USGovt administration and Congress on spending. In recent weeks, the euro has dabbled with a 119 handle. Again, FOREX experts are calling for 115, just like they did in June. My forecast is that they will be wrong once again. Curiously, US Senators are talking up a responsible reaction on spending, with cuts and more prudent appropriations to spending. Could it be that Chairman Greenspan read the riot act to certain key Administration and Congressional leaders, promising the USFed would continue upward pressure on interest rates as long as the USGovt officials were acting like adolescents with credit cards at shopping malls??? Methinks YES.

-cut-

Officially known as the Amendment for American Jobs Creation Act, it is a failure which few seem willing to admit. Instead of creating jobs, companies do what they feel is urgent or expedient. They pay down debt, meet worker payrolls, and other operational obligations. In all, 91 companies have disclosed some repatriation, led by Pfizer, Merck, Hewlett Packard, Johnson & Johnson, and DuPont, each over $10 billion. Job creation was the theme for bill passage, a hope & dream, not a reality. The reality is that gobs of money returning, after being repatriated, are being directed toward stock buybacks in a pure sham. Is this what Congress had in mind? Is this what the Administration had in mind? Could this have been the plan all along, in support of executive stock options? It is surely to be deemed a good thing, since the financial sector is the ruling tail to lead movement for the hapless dog. The domination of the finance sector over the real economy continues… for now.

-cut-

THE NEXT STAGE

The euro will continue repeated tests at the 120 level. On a technical basis, an uplift has been seen. Lately, as the euro has relaxed, gold has come down. Lately, as the euro has bounced, gold has been lifted, the opposite of the early summer trend change. As the USFed continues its rate hikes, the new perception might quickly take over and supplant the consensus. The US Economy will slow from higher borrowing costs, from removal of easy finance deals for consumer purchases, from higher mortgage adjustable rates, from double the usual credit card payments, and more. The impact on the USDollar is certainly going to be negative, at a time when higher energy costs are causing pain both to households and to businesses. Beneficial interest rate differentials can only support the USDollar only so much. Eventually the trade gap becomes a major issue. The down side to this US$ lift in recent weeks will be the continuation of the capital flow hemorrhage in the trade deficit, with monthly tabs over $50 billion.

more...

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

[ozymandius]

2. Crude Oil Prices Little Changed

SINGAPORE - Oil prices were little changed Friday amid lingering concerns that U.S. Gulf of Mexico oil facilities recovering from hurricane damage will struggle to meet heating oil demand as winter approaches.

Light, sweet crude for December delivery on the New York Mercantile Exchange rose 1 cent to $61.10 a barrel in Asian electronic trading. The contract rose 43 cents Thursday to close at $61.09 a barrel.

-cut-

Concern is growing among traders that damage caused by Hurricanes Katrina and Rita will hurt already aging U.S. refineries' efforts to gear up for the winter, the peak season for production of distillate stocks — fuels that include heating oil, jet fuel, kerosene and diesel oil.

-cut-

In other market-related news, China, the world's second largest oil-consumer after the United States, said its imports in September rose 4.8 percent on year to 76 million barrels, or an average of 2.65 million barrels a day, according to data issued Friday by the General Administration of Customs.

more

[UpInArms]

9. Oil Industry Seeks to Cast Huge Profits as No Big Deal

http://www.washingtonpost.com/wp-dyn/content/article/2005/10/27/AR2005102702399.html

By most familiar comparisons, the $9.92 billion profit earned by Exxon Mobil Corp. in just three months is almost unimaginable. It would cover all Social Security benefit payments for three months. It would pay for an Ivy League education for about 60,000 kids. It would pay the average list price for more than 160 Boeing 737s. It would fund the military operations in Iraq and Afghanistan for more than two months.

Yet oil industry representatives and Exxon Mobil yesterday made a game effort to cast the record profit, earned during a quarter in which the Gulf Coast was shattered by hurricanes and gas prices rose well above $3 a gallon, as middling at best.

...and then the stenographer goes on to make the oil companies' case for them...

[UpInArms]

10. Bracing for a huge jump in winter heating bills

http://www.suntimes.com/output/business/cst-fin-heat27.html

Frankie Reynolds makes $842 a month in Social Security disability payments to support herself and her 12-year-old granddaughter.

The former Kentucky native keeps the bills paid by staying on a tight budget, sometimes getting food from a food pantry where she volunteers.

This winter, Reynolds is worried about staying warm. Peoples Energy has projected an average heating bill of $1,560 for November through March. That works out to more than $300 a month.

<snip>

Energy bills are expected to be 50 to 70 percent higher in the Midwest this winter partly because of a warm summer that increased the use of gas-fired plants to make electricity for air conditioning, reducing the supply. Hurricanes Katrina and Rita also cut into supply.

"This is a real crisis heading our way that won't be felt until the bills start coming," said Martin Cohen, chairman of the Illinois Commerce Commission, which regulates the state's utilities. "Our best hope is to get lucky with a warmer than normal winter."

...more...

[UpInArms]

11. US Democrats ask oil firms to donate some profits

WASHINGTON, Oct 27 (Reuters) - With Americans facing soaring heating fuel costs this winter, Democratic senators on Thursday asked the big oil companies to donate some of their record profits to help low-income families pay their utility bills.

U.S. oil companies' profits during the first nine months of this year are up more than 35 percent from last year. Exxon Mobil <XOM.N> reported it earned $9.9 billion in the third quarter alone.

The Democrats asked Exxon and other major oil companies to be "good corporate citizens" and contribute 10 percent of their profits to fuel assistance programs that help poor families and the elderly cover their heating costs. Republicans have blocked attempts to boost funding for the Low Income Home Energy Assistance Program (LIHEAP) to around $5 billion, up from the $2.2 billion it spent last year.

"American families need economic relief from high energy prices," the lawmakers said in a letter to each of the companies.

"They need the security to know they will not have to decide between heating their homes or feeding their families, and paying the energy bill or buying life-saving medicines," the senators said.

...more...

[UpInArms]

19. Drivers cry 'foul' as Exxon profits soar

http://www.azcentral.com/business/articles/1027oiloutrage-ON.html

Reaction to major oil producers' staggering profits ranges from rage at the pumps to calls for profits to be reinvested in exploration, alternative energy research or simply returned somehow to the public.

<snip>

But, the soaring oil and gasoline prices that are the source of the oil company's third-quarter profits have created hardships for consumers and eaten away at the profits of many businesses. Some economists believe they will lead to an economic slowdown and possible a recession.

<snip>

"I can't afford to buy socks because I am paying twice what I used to for gas." she said. "It's not right that they (oil companies) should be making billions at our expense."

<snip>

Bruce Trushinsky, owner of the former Moon Valley Exxon station at 1901 W. Thunderbird Road in Phoenix called Exxon Mobil's $9.9 billion quarterly profit "disgusting."

He became so upset at the $7.6 billion profit posted by the company in the second quarter that he cancelled a long-time branding agreement.

"I ripped down all the Exxon signs and threw them in the garbage," he said. Now, after 30 years, Moon Valley Exxon is Carmel Automotive and Fuel. Trushinsky said the high wholesale prices charged by Exxon were devastating to his business and that the last straw was when the company cancelled its dealer incentive program.

...more...

[UpInArms]

24. Alternate energy not in cards at ExxonMobil

http://www.usatoday.com/money/industries/energy/2005-10-27-oil-invest-usat_x.htm

ExxonMobil, which stunned Americans on Thursday by reporting nearly $10 billion in profit for the third quarter, says it has no plans to invest any of those earnings in developing alternative or renewable energy — something other oil companies do.

"We're an oil and gas company. In times past, when we tried to get into other businesses, we didn't do it well. We'd rather re-invest in what we know," says Exxon spokesman Dave Gardner.

Neither will Exxon significantly step up how much money it puts into finding oil or refining it into gasoline, which could help ease tight supplies that have driven oil and gasoline prices to records this year.

<snip>

Nevertheless, Exxon's huge profits and its reluctance to use them for alternative energy development are unlikely to win much applause from motorists weary of $3 gas, suspicious that the current decline in prices will be short-lived, and hoping either for plenty of gas on the market or for a cheaper alternative.

The Sierra Club, an environmental group often critical of the auto and energy industries, said Thursday: "Americans want clean sources of energy that protect public health, reduce pollution, curb global warming, and save consumers money. Instead, ExxonMobil has worked to make America more dependent on oil."

...more...

[UpInArms]

50. Anadarko's profit surges 50% as oil, gas prices soar

http://www.marketwatch.com/news/story.asp?guid=%7B653A313D%2D9538%2D4814%2D821A%2D60A5A89383A7%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Anadarko Petroleum Corp.'s third-quarter profit soared nearly 50% as record-high oil and gas prices more than made up for the losses incurred from storms that ravaged the Gulf Coast, the company said Friday.

Shares of Houston-based Anadarko (APC) moved as high as $88.31, adding 1% in early trading.

Anadarko reported earnings of $596 million, or $2.51 a share, up from $399 million, or $1.58 a share, a year earlier. The latest results include $90 million in unrealized loss on derivatives, a $19 million gain from the company's firm transportation keep-whole agreement, and a restructuring-related charge of $13 million.

Quarterly revenue rose to $1.76 billion from $1.56 billion a year earlier.

<snip>

The strong earnings growth turned in by Anadarko is reflective of a big quarter for the entire energy sector, which cashed in on surging prices brought on by Hurricanes Katrina and Rita.

...more...

cashed in on surging prices brought on by Hurricanes Katrina and Rita - it's called GOUGING, stupids.

:nuke:

[UpInArms]

56. Hands Off The Windfall

http://www.forbes.com/business/2005/10/28/exxon-chevron-oil-cz_ch_1028windfall.html

HOUSTON - A record earnings season for the oil industry is stoking increased grumbling from politicians, citizens and activists who want the U.S. government to levy a windfall profits tax on companies that are enjoying their highest profits ever. This week, Exxon Mobil announced third-quarter net income of $9.9 billion, up 75%. Royal Dutch Shell posted $9.2 billion, up 68%. BP advanced 27% to $5.3 billion. It's even better at smaller operators like Marathon Oil, where earnings more than trebled to $770 million.

In a sense, America should be happy to see those profits; they imply that America's energy supply system is efficient. If Big Oil wasn't making money in a time of record energy prices, then we'd really have a problem.

Sen. Hillary Clinton (D, N.Y.) doesn't see it that way. She introduced a bill this week that would levy $20 billion in annual taxes on oil companies to help subsidize energy costs of low-income households. Though the bill stands no chance of passage, it illustrates the terrifying delusion that politicians think they know better than captains of industry how to maintain cheap energy supplies for America. If put into practice, a bill like Clinton's would cause more harm than good. Giving $20 billion in free energy to low-income families would cause a huge spike in demand for oil and natural gas supplies that are already stretched tenuously thin--pushing prices up even further, for everybody.

On Thursday afternoon, Energy Secretary Samuel Bodman denied Wall Street rumors that the White House was preparing to introduce its own oil tax proposal to the Hill, one that would include a tax of some $3 billion a year in low-income energy subsidies. More likely: A law that would require refiners to maintain a five-day regional reserve of gasoline, diesel and jet fuel--sufficient to maintain supplies in the face of disruptions like this summer's Gulf Coast hurricanes. Deutsche Bank (nyse: DB - news - people ) analyst Paul Sankey said in a research report Thursday that the cost to industry of managing such reserves could be $500 million a year.

...more...

[UpInArms]

60. Chevron's profit soars despite hurricane woes

http://www.marketwatch.com/news/story.asp?guid=%7B07E76046%2D9AD3%2D4272%2D8754%2D5060E6155CBF%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Chevron Corp. said Friday third-quarter earnings rose 12% on the back of sharply higher oil and gas prices, outpacing the costly impact of Hurricanes Katrina and Rita on its Gulf Coast operations.

But the company (CVX) also warned that the storms are likely to put a damper on fourth-quarter earnings as it continues to rebuild its shattered refining operations, offsetting contributions from its hard-fought takeover battle for Unocal.

That means the No. 2 U.S. oil company will likely miss out on some of the windfall profits that other companies are reaping from the steep spike in energy prices, both at the well-head and at the refinery gate.

<snip>

Sales and other operating revenue reached $53.38 billion in the latest three months, up about 35% from $39.61 billion in the same period a year earlier.

...more...

Anyone still wondering where the consumer spent his/her dollar last quarter?

[UpInArms]

48. Dec Crude @ $61 bbl - Dec NatGas @ $13.19 mln btus

10:05am 10/28/05 DEC CRUDE FALLS 9C TO $61/BRL IN EARLY NY TRADE

10:05am 10/28/05 DEC NATURAL GAS DOWN 49.4C, OR 3.6%, AT $13.19/MLN BTUS

[UpInArms]

68. Dec Crude @ $61.05 bbl - Dec NatGas @ $13.22

12:39pm 10/28/05 DEC CRUDE FALLS 4C TO $61.05/BRL IN NY

12:39pm 10/28/05 DEC NATURAL GAS TRADES AT $13.22/MLN BTUS, DOWN 3.4%

12:39pm 10/28/05 NOV HEATING OIL UP 0.1%; NOV UNLEADED GASOLINE CLIMBS 1.3%

[UpInArms]

88. Dec Crude closes @ $61.22 bbl

3:05pm 10/28/05 DEC CRUDE ENDS UP 13C, OR 0.2%, AT $61.22 A BARREL

[ozymandius]

3. Wall Street set to open lower

PARIS (Reuters) - Shares on Wall Street look set for a fourth straight day of losses on Friday after Microsoft's (Nasdaq:MSFT - news) mixed earnings update and ahead of a report that could show another drop in consumer confidence.

Microsoft shares fell 2.8 percent in after-hours trading on Thursday after the world's largest software company posted sales a touch behind Wall Street estimates and set a current-quarter revenue target below expectations.

"The big thing is the second-quarter sales and earnings (forecast) being below expectations. It's not going to be greeted favourably in this environment," said Tim Ghriskey, chief investment officer of Solaris Asset Management.

-cut-

The University of Michigan's final read on consumer sentiment in October will be watched at 1345 GMT for signs that energy costs are hurting households' confidence in the economy. Advanced numbers on third-quarter gross domestic product will be released at 1230 GMT.

more

[UpInArms]

14. Futures steady ahead of GDP, indictment news

http://www.marketwatch.com/news/story.asp?guid=%7B91AE8928%2D69C2%2D48C9%2D9BB8%2D78CFA94C7BE7%7D&siteid=mktw

LONDON (MarketWatch) -- Stock market futures held their ground Friday, awaiting news on the fate of top White House officials as well as the rate of U.S. economic growth during the third quarter. Microsoft's latest earnings report also will likely shape market direction.

<snip>

Top White House aides Karl Rove and I. Lewis "Scooter" Libby are facing potential indictments, with press reports suggesting Libby will be indicted Friday and Rove will remain under investigation.

Both the euro and the yen built on gains in anticipation of that news. See currencies.

The potential indictment comes amid the release on third-quarter GDP data at 8:30 a.m. Eastern, expected to show growth of 3.6% from 3.3% in the second quarter. See preview.

...more...

[ozymandius]

4. The dumb and blind spout off.

Snow sees no housing bubble

WASHINGTON (Reuters) - U.S. Treasury Secretary John Snow said on Thursday the Bush administration backed a strong dollar and said he saw no sign of a bubble in U.S. housing prices.

The U.S. Treasury chief was answering questions on a White House Web site (http://www.whitehouse.gov/ask/live.html), including one from a questioner who wanted to know why the U.S. Treasury was letting the dollar become devalued.

"We believe that a strong dollar is in America's national interest," Snow said. "This is a policy that we have had for some time and continue to support."

-cut-

"When we talk about our housing market, we're really talking about hundreds of housing markets, each with different characteristics, in local markets," Snow said.

more

[Maeve]

22. Left out one thing...

"BRAWK! Woo-hoo!" (or however you spell parrot noises)

"No bubble" is the current phrase used by all who have mastered "Polly wants a cracker". Yes, there are numerous markets, but a sheet of bubble wrap can leave you just as unprotected when it's rolled over by a truck as a single large balloon would, and there's a truck heading this way.

[UpInArms]

25. a recent photo of

the WH spokepersons:



and then, just 'cause it caught my funny bone:

[mikita]

32. I can't believe it...

but your parrot joke was FUNNIER than WH spokepersons comments about housing bubbles!!


Thanks for the laugh this AM.

Mikita

[UpInArms]

34. g'morning mikita!

glad it made you laugh - it did the same for me :D

[AnneD]

38. Morning Marketeers....

:donut: Well, they opened a new branch of FINKOS (the federal dollar copy center). Air alerts were issued across Houston as methane levels increased (by product of bovine digestion). Check out the site for the source. Then ask your self 1) how could they build a 95 mil federal building without using taxpayers dollars 2)why would you be bragging about the public not knowing about what you do. Frankly, they could have pumped a fraction of that money into the Jeff Davis hospital and we could have had adequate health care for our indigent-instead of a FINKOS

www.khou.com/perl/common/video/wmPlayer.pl?title=www.khou.com/miller6_051027.wmv

[UpInArms]

40. here's where the Fed gets its money - stolen from the taxpayers

through the backdoor

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/10/28/EDGFOFFAFD1.DTL

excerpt:

The Fed's finances are an obscure mystery known only to a tiny group of policy wonks. Unlike most government agencies, Congress does not authorize funding for the Federal Reserve Board. The Fed was set up as a public/private entity by the Federal Reserve Act of 1913, and it survives off the money earned on the government bonds it holds. Each year, it pays out a portion of these earnings to its member banks across the country, as a return on the money they are required to invest in the Fed. It also uses some of its earnings to pay for the agency's operations. The rest of the money the Fed earns is returned to the Treasury, where it came from originally, as interest on government bonds. In effect, the Fed is allowed to spend as much as it wants for its operations -- at the expense of American taxpayers -- because higher expenses mean that less money is returned to the Treasury.

As may be expected, the cost of the Fed has been rising. The agency projects that it will spend $288 million in 2006. This compares with a budget of $156 million in 1994. Adjusting for inflation, this is still an increase of more than 45 percent. While the Fed's budget is not a big item in the context of the whole federal budget, Congress has had major battles over smaller sums.

...more...

Just more blackbox off-the-books spending :grr:

[AnneD]

42. Thanks UIA spew alert.

I had to edit to get a good link for you guys. Yeh, we were underwhelmed. By the way, loved the parrot post.


Got another laugh for you. We recently had report cards go out and this was the first time the 2nd grades got a number grade. One teacher explained what the number-grade connection. One sweetly innocent little girl (with big blue eyes) was horrified and almost in tears as she exclaimed to the teacher...."I failed sex" :wow: :wow: :wow: :spray: :rofl:

[UpInArms]

49. Another Parrot demanding Crackers

Fresh Katrina relief needs no new money -W.House

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-28T140611Z_01_WBT004150_RTRIDST_0_HURRICANES-AID-URGENT.XML

NORFOLK, Va., Oct 28 (Reuters) - White House spokesman Scott McClellan said on Friday the next phase of its federal aid package for the Gulf Coast communities hit by Hurricane Katrina would be paid for by reprogramming existing funds and making cuts elsewhere in the budget.

McClellan told reporters traveling with President George W. Bush that the effect of the budget cuts and reallocation would mean the package will have "zero impact on the deficit."

...more bwwaaaakkk-ing at link...

[UpInArms]

54. bwaaak... bwaaakkk... bwaaa-akkkk!

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-28T143734Z_01_N28526495_RTRIDST_0_HURRICANES-AID-UPDATE-1.XML

NORFOLK, Va., Oct 28 (Reuters) - The next phase of the Bush administration's federal aid package for Gulf Coast communities hit by Hurricane Katrina will be paid for by tapping existing disaster relief funds and finding savings elsewhere in the budget, White House spokesman Scott McClellan said on Friday.

McClellan told reporters traveling with President George W. Bush that the effect of the budget cuts and reallocation would mean the package would have "zero impact on the deficit."

In the weeks following the late August destruction in Louisiana, Alabama and Mississippi caused by Hurricane Katrina, Congress approved $62.3 billion in emergency aid.

That money was intended to be used for immediate rescue operations and then longer-term aid such as helping to feed and house displaced victims.

Nearly $40 billion of the money has not yet been used, according to data submitted to Congress last week.

...more bwaaaa-akkk-ing at link...

[UpInArms]

84. Flock of Parrots Alert: Bwwaaaakkkk Bwwwaaaakkkk!

Bush tax reform panel to deliver report Nov. 1

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38653.6086791435-848028836&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- A presidential advisory panel will deliver its recommendations on reforms to the tax system to Treasury Secretary John Snow on Nov. 1, the Treasury Department said Friday. The panel is expected to endorse limits on some current tax deductions and call for the elimination of the alternative minimum income tax.

Watch out for this one, folks. It's going to get mighty expensive.

[UpInArms]

5. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 89.04 Change -0.06 (-0.07%)

Were Consumers Spending Enough To Drive US GDP Growth?

http://www.dailyfx.com/index.php?option=com_content&task=view&id=4490&Itemid=39

U.S. Gross Domestic Product (3Q) (12:30 GMT, 8:30 EDT)
Consensus: 3.6%
Previous: 3.3%

Outlook: Growth in the U.S. Gross Domestic Product, a measure of economic expansion, is expected to come in at a rate of 3.6% for the third quarter. Many of the consumption factors that have lead to growth in the first two quarters are likely to continue contributing to expansion in the third quarter. A strong housing market has supported growth on several levels. Homebuilding throughout the country continues to be strong as does purchasing of furniture and big-ticket electronic items to furnish these homes. Additionally, appreciating home values have given households the confidence and perception of extra income to continue spending in the face of high energy prices. Although auto sales were weak in August and September, they were offset by extraordinary July sales resulting from promotional discounts. To position themselves for future growth, businesses have continued fixed investment, which includes spending on commercial construction and the purchasing of equipment and software. It is estimated that overall consumer spending in the third quarter grew at a rate of 3.3% in spite of crippling energy prices. The economy is therefore expected to maintain its momentum through the end of the year, even as the cold winter months force consumers to spend on costly energy.

Previous: U.S. GDP grew at a healthy rate of 3.3% in the second quarter. Although this growth was slower than the 3.8% rate in the first quarter, the steady expansion was evidence of the economy’s strength entering the Gulf Coast hurricane season. This marked the longest run of quarter-to-quarter growth since 1986, just before the market crash of 1987. Strong demand for housing, automobiles and business equipment all contributed to second quarter GDP expansion. Residential construction posted a 10.8% increase, up from 9.5% in the first quarter. Consumers took advantage of heavy employee discounts offered by automakers to the general public. Lastly, although some businesses cut back output to clear superfluous inventories, spending on business equipment and software increased by 10.9%--a jump from 8.3% growth in the first quarter. A number of factors, however, kept U.S. economic expansion from achieving the stellar rate seen in first quarter. Corporate profits rose at only 4.6% as opposed to the 5.6% increase in the first quarter. Consumer spending, which accounts for over two-thirds of the economy, was also slightly weaker, losing .1% from its previous pace.

...more...

Dollar Weakens on Disappointing US Data and Political Uncertainty

http://www.dailyfx.com/index.php?option=com_content&task=view&id=4487&Itemid=39

US Dollar - The dollar is weaker against the majors today giving up a good deal of strength on disappointing durable goods data released this morning. Durable goods orders in September, expected to drop by 1.5 percent, actually dropped 2.1 percent after rising 2.8 percent in August. Excluding transportation, durables were expected to grow 0.8 percent but in fact dropped 1 percent. These numbers suggest the economy slowed at the end of the third quarter as Hurricane Katrina boosted oil prices and dampened corporate confidence. Capital spending is still hesitant as sales of business equipment during the month fell. This decrease in orders however may be temporary as companies begin to rebuild inventories and restoration efforts in the Gulf Coast spur demand. Economists believe that September was a temporary fall off and there is still strength under the economy, however the numbers did cause some economists to cut their forecasts of third-quarter economic growth. Also released were initial jobless claims from October 22 coming in at 328,000, less than the expected 340,000. Claims from the Gulf Coast continue to fall off more quickly than expected with the bulk of workers already having filed. Help wanted ads also crept up in September with the index rising from 38 to 39, up from 36 in September 2004. The increase is partially due to a reaction to displaced workers from the hurricanes looking for work. The last release today was new home sales for September. Sales rose 2.1 percent during the month coming off the second-lowest level of the year to $1.222 million, up from $1.197 million in August. The numbers put new homes sales on track to hit a record this year; however with rising mortgage prices, purchasing may slow. So far, the rising rates have not discouraged home buys, good news for the Fed. Tomorrow, not only are we due to receive the final GDP numbers for the third quarter, but also possible indictments related to the CIA leak probe.

...more...

[UpInArms]

23. Currencies: Dollar undermined by GM investigation

http://www.iht.com/articles/2005/10/27/business/bux.php

NEW YORK The dollar dropped against the euro and the yen on Thusday after a U.S. report showed that orders at factories for durable goods last month fell more than forecast.

Also weighing on the dollar was the health of General Motors, the world's biggest automaker, which said U.S. regulators were investigating its pension accounting and transactions with the bankrupt parts maker Delphi.

The report added to speculation that U.S. economic growth might be restrained after Hurricanes Katrina and Rita drove up energy costs in September. The dollar has fallen 2.3 percent since reaching a three-month high of $1.1875 per euro on Oct. 19.

"People are falling out of love with the dollar," said Firas Askari, head currency trader in Toronto at BMO Nesbitt Burns. "The U.S. data was on the disappointing side. That doesn't help."

...more...

[UpInArms]

86. dollar soaring on indictments and investigations

Last trade 89.63 Change +0.53 (+0.59%)

Settle 89.10 Settle Time 23:38

Open 89.09 Previous Close 89.08

High 89.67 Low 88.90

Volume 1,738

Last tick: 2005-10-28 14:14:00 ET
30-min delayed quote.

[UpInArms]

6. Today's Reports:

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

Oct 28	8:30 AM	Chain Deflator-Adv.	Q3	-	3.3%	2.8%	2.6%	-	
Oct 28	8:30 AM	Employment Cost Index	Q3	-	0.8%	0.8%	0.7%	-	
Oct 28	8:30 AM	GDP-Adv.		Q3	-	3.6%	3.6%	3.3%	-	
Oct 28	9:45 AM	Mich Sentiment-Rev.	Oct	-	75.4	76.0	75.4	-

[UpInArms]

26. reports tumbling in:

8:30am 10/28/05 U.S. GIVES NO ESTIMATE OF HURRICANE IMPACT ON Q3 GDP

8:30am 10/28/05 U.S. GDP UP 3.6% YEAR-OVER-YEAR

8:30am 10/28/05 U.S. Q3 CONSUMER SPENDING ADDS 2.73% TO GDP

8:30am 10/28/05 U.S. Q3 CORE PCE INDEX SLOWS TO 1.3% FROM 1.7% IN Q2

8:30am 10/28/05 U.S. Q3 GDP INCREASES 3.8% VS 3.6% EXPECTED

8:30am 10/28/05 U.S. Q3 BENEFIT COSTS RISE 1.3%, OUTPACE WAGES AND SALARIES

8:30am 10/28/05 U.S. Q3 EMPLOYMENT COSTS RISE 0.8% AS EXPECTED

[UpInArms]

27. U.S. Q3 employment costs rise 0.8% as expected

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38653.354254537-847987757&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - U.S. employment costs rose 0.8% in the third quarter, in line with economists' expectations and virtually unchanged from the 0.7% gain in the second quarter. Benefit costs again outpaced wages and salaries, the Labor Department said Friday. Benefit costs between June and September rose 1.3% while wages and salaries climbed 0.6%.

[UpInArms]

28. Did the cost of energy and inflation drive up GDP?

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38653.3542951389-847987772&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - The U.S. economy grew at a 3.8% seasonally adjusted annual rate in the third quarter of 2005, the Commerce Department estimated Friday. Consumer spending contributed most to the growth rate. The trade sector was a slight drag. Economists surveyed by MarketWatch were expecting GDP to increase 3.6% in the third quarter after 3.3% in the second quarter. Core consumer prices increased as a 1.3% rate in the third quarter, down from a 1.7% rate in the second quarter, leaving the year-over-year increase at 1.9%. The government did not provide an estimate for the impact on growth from Hurricanes Katrina and Rita.

[UpInArms]

29. more info:

http://www.marketwatch.com/news/story.asp?guid=%7B64148F57%2D1ADF%2D41A1%2D86E8%2D63FF2C5F1D15%7D&siteid=mktw

excerpt:

Spending by consumers and the federal government contributed most of the increase in gross domestic product. Foreign trade was a slight drag on growth.

<snip>

In the third quarter, consumer spending increased at a 3.9% rate, compared with a 3.4% rate in the second quarter. Consumer spending contributed 2.73 percentage points to growth. Spending on autos contributed the most to growth since the third quarter of 2003.

Business investment increased at a 5.7% rate, down from 9.5% in the second quarter. Investments in equipment and software increased at a 8.9% rate, down from 10.9% in the second quarter. Business investment added 0.65 percentage points to growth.

Inventories were a slight drag on reported GDP, subtracting 0.55 percentage points from growth after subtracting more than 2 percentage points from growth in the second quarter.

<snip>

The first estimate of GDP is based on estimates of several key components, rather than on hard data. The September data on trade, inventories and construction spending are not yet available. The government will issue its second estimate on Nov. 30.

...more...

Just be aware of the man behind the curtain :eyes:

[MARALE]

31. That was the question I had

I thought that they surely would talk about it, wouldn't they? I can tell you that food prices have gone up quite a bit and we are not buying any big ticket items right now. Athough we did buy a cheap Honda Civic for my husband to drive to work to save money on gas. I wonder if that has anything to do with the automobile sales going up.

[UpInArms]

33. looks like the retail sector is suffering (as a whole)

but look at the one segment that is really booming and raking in ENORMOUS profits - oil (and defense).

[UpInArms]

36. Oil Giant Does Well: Exxon Sales Top $1 Billion a Day

http://www.latimes.com/business/la-fi-exxon28oct28,0,3308970.story?coll=la-home-business

More than a billion dollars a day, $45 million an hour, almost $340 for every living American — that's what Exxon Mobil Corp. reported in third-quarter revenue Thursday.

The Irving, Texas, oil giant said sales totaled $100.7 billion — the most by any company in history — and reported a profit of $9.9 billion, an oil industry record.

<snip>

The $100.7 billion in revenue represented a 32% gain from a year earlier and eclipsed the previous record of $88.6 billion it recorded in this year's second quarter.

...more...

Question: Where are consumers spending?

Answer: See above article.

[UpInArms]

35. Chain Deflator report - 3.1%

from the briefing.com report:

http://www.briefing.com/Silver/InDepth/StockMarketUpdate.htm

The chain deflator - a key inflation measure - has come in at 3.1% (consensus +2.8%)

and what does that mean?

http://money.cnn.com/2005/10/21/markets/sun_lookahead/?cnn=yes

The chain deflator -- the report's inflation component -- is expected to have grown at a 2.9 percent annualized rate, versus a 2.6 percent rate last quarter.

[UpInArms]

44. UMich Consumer Sentiment at 74.2 (sucking the edge of the toilet bowl)

9:50am 10/28/05 UMICH OCT CURRENT INDEX 91.6 VS. 98.1: REPORT

9:49am 10/28/05 UMICH OCT. CONSUMER EXPECTATIONS 63.2 VS. 63.3: REPORT

9:47am 10/28/05 UMICH FINAL OCT. CONSUMER SENTIMENT 74.2 VS. 76.9: REPORTS

(added line item on edit)

[UpInArms]

46. U.S. consumer sentiment falls (again) in October: UMich

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38653.412255-847998063&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- U.S. consumer sentiment fell slightly in late October, according to media reports of proprietary research at the University of Michigan. The UMich consumer sentiment index dropped to 74.2 in October from 76.9 in September and 75.4 in early October. It's the lowest reading since October 1992. Economists expected a bounce to 75.9 in the final October reading. The current index fell to 91.6 in October from 98.1 in September and 95.7 in early October. The expectations index fell to 63.2 in October from 63.3 in September. It was 62.4 in early October.

But the fools keep borrowing from their houses to put their money in their gastanks! and the markets roll on the floor with laughter at their inside joke. :argh:

[UpInArms]

47. more info:

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-10-28T134957Z_01_N28525027_RTRIDST_0_ECONOMY-CONSUMERS-URGENT.XML

excerpt:

The index of current conditions fell sharply to 91.2 from
98.1 in September and 95.7 in the early part of this month.

Confidence measures are often used as a gauge of future
spending patterns. Consumer spending makes up roughly
two-thirds of overall U.S. economic activity, and is seen as an
indication of strength or weakness in economic growth.

...more at link...

just check out the spin on the GDP to see how they take this information on consumer spending.

[AnneD]

94. You are so right...

I listen to Dave Ramsey's call in radio program and you here these people every. They are on the verge of bankruptcy and they have ARM mortgages or they have 2nd mortgages, a car lease ......it is so sad. And it is worse when they lose a job. Makes me really hate the credit card industry among others.

[UpInArms]

52. Energy prices blacken US consumer mood in Oct - worst in 13 yrs

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-28T143026Z_01_N28383756_RTRIDST_0_ECONOMY-CONSUMERS-UPDATE-1.XML

NEW YORK, Oct 28 (Reuters) - The mood among U.S. consumers
slipped to its worst in around 13 years in October as concern
persisted over the long-term effect of high energy prices on
the economy, a report showed on Friday.

<snip>

"It shows absolutely no post-Katrina rebound and it's the
lowest since the end of 1992," said John Canavan, a bond market
analyst with Stone & McCarthy Research Associates.

...more...

Hmmm... 13 yrs ago .... 2006 - 13 = 1993 ... oh, I get it! :think:

It's Clinton's fault!!!!

[loudsue]

69. Actually, it's bush Sr.,'s fault. 2005 - 13 = 1992. Bush LOST because of

it! Clinton WON!!

:kick:

[UpInArms]

80. Thanks loudsue!

Somehow I was thinking this was 2006 :crazy:

My how time flies when you're having fun :D

:hi:

[UpInArms]

53. ECRI - Gauge of US economy fell in latest week

(another report that is not on the "official" report list)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-28T143015Z_01_NAT001866_RTRIDST_0_ECONOMY-ECRI-WEEKLY-URGENT.XML

NEW YORK, Oct 28 (Reuters) - A leading gauge of the U.S. economy fell in the latest week due to weaker housing activity, lower stock prices, and higher interest rates, a report said on Friday.

This was countered in part by lower jobless claims, the report said.

The Economic Cycle Research Institute, an independent forecasting group, said its weekly leading index slipped to 135.6 in the week ended Oct. 21, compared with a 135.9 the previous week. The index's annualized growth rate is flat at 2.1 percent.

"With eight weeks of post-Hurricane Katrina data in hand, we see that the weekly leading index growth is still holding up affirming that no recession is on the horizon," said Lakshman Achuthan, managing director at ECRI.

...more...

[UpInArms]

7. Refco had 'life threatening' troubles in 1990s-WSJ

http://today.reuters.com/investing/financeArticle.aspx?type=fundsNews2&storyID=URI:urn:newsml:reuters.com:20051028:MTFH57042_2005-10-28_08-02-45_N28501107:1

NEW YORK, Oct 28 (Reuters) - Bankrupt brokerage Refco Inc. faced "life threatening" financial and regulatory problems in the late 1990s as customers began racking up trading losses, the Wall Street Journal reported, citing a fax sent to Refco's former chairman by an associate who had evaluated the firm.

The fax is contained in court files related to a dispute between Refco's (RFXCQ.PK: Quote, Profile, Research) former chairman, Thomas Dittmer, and Texas businessman Edwin Cox, the paper reported.

It said the two former investing partners were fighting over how to divide $85 million Dittmer received when Refco sold a majority stake last year.

Cox sent the fax to Dittmer on Aug. 4, 2004, and it was filed in court after Cox sued Dittmer in federal court in the eastern district of Texas for breach of contract last year.

<snip>

Some of the debts date back to the late 1990s, when many of the customers lost money in the Asian financial crisis.

...more...

[UpInArms]

8. Refco exec Maggio cooperating in widening inquiry

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-28T002505Z_01_N27483624_RTRIDST_0_FINANCIAL-REFCO-MAGGIO-UPDATE-2.XML

WASHINGTON, Oct 27 (Reuters) - A senior Refco Inc. (RFXCQ.PK: Quote, Profile, Research) executive who was put on leave earlier this month is cooperating with U.S. authorities in a widening fraud investigation of the futures and commodities broker, a person close to the case said on Thursday.

Santo Maggio, president of the Refco Capital Markets unit, was put on leave by the Refco board on Oct. 10 when it ousted chief executive Phillip Bennett, who has been arrested and charged with hiding $430 million of debt from the company and its shareholders.

<snip>

Investigators are focusing, in part, on ties between Bennett and Austrian bank BAWAG P.S.K., said a source close to the case.

BAWAG said on Thursday it was preparing lawsuits over its involvement in Refco's bankruptcy filing. BAWAG lent 350 million euros ($424 million) to Bennett on the day he was suspended by his company.

How that loan occurred and the timing of it are areas of interest to investigators, as are instances of possible misconduct unrelated to Bennett's alleged debt concealment, said the sources.

...more...

[UpInArms]

16. Refco's Bennett Seeks More Lenient Bail Conditions, People Say

http://www.bloomberg.com/apps/news?pid=10000103&sid=apWInYoJrNUk&refer=us

Oct. 28 (Bloomberg) -- Former Refco Inc. Chairman Phillip Bennett, charged with hiding a $430 million debt, asked for more lenient bail conditions after he couldn't find six people to co- sign a $50 million bond, people familiar with the request said.

After Bennett's arrest on Oct. 11, U.S. Magistrate Douglas Eaton released him subject to home detention and ordered him to post $5 million in cash and a $50 million bond, guaranteed by six people. At a hearing today, prosecutors alerted a different judge that only Bennett's wife had guaranteed the bond so far, according to two people present at the hearing.

U.S. Magistrate Judge Frank Maas ordered Bennett to submit by Nov. 1 a sworn statement detailing his finances, the people said. After that, Maas said he will rule whether to grant a request from Bennett's lawyer Gary Naftalis to require only Bennett's wife and son to guarantee the bond, the people said.

``I would be shocked if it results in him being remanded unless there's some evidence he acted in bad faith,'' said Barry Boss, a white-collar criminal defense lawyer with Cozen & O'Connor in Washington.

<snip>

The people gave this account: Naftalis told the judge Bennett wouldn't flee and leave family members responsible for the debt. He said Bennett had put up $5 million in cash and millions of dollars worth of property.

...more...

[UpInArms]

57. Refco: The Reckoning

http://www.businessweek.com/magazine/content/05_45/b3958095.htm

If investors needed a wake-up call about the potentially dangerous flood of money surging into private equity firms and hedge funds, they're getting it with the collapse of Refco Inc. (RFX ) Clients continue to flee the giant derivatives dealer that buyout legend Thomas H. Lee took public just two months ago. In bankruptcy court, other investment groups haggle over Refco's surviving futures-trading business. And federal investigators are expanding their search for wrongdoers beyond ousted CEO Phillip R. Bennett. He has been charged with fraud in a scheme that employed a New Jersey hedge fund to help hide $430 million in debt owed to his former company.

After a series of hedge-fund implosions in recent months, the Refco fiasco offers only the latest warning that peril lurks in arcane and secretive corners of the financial world. Investors frustrated with a lackluster stock market have pumped more than $1 trillion into lightly regulated hedge funds and private-equity firms, much of it in the past few years. Both types of investment pools promise outsize returns, and the technical distinctions between them are blurring. They are snapping up dozens of companies. Investment banks and auditors are rushing to help them realize gains by reselling those acquisitions or taking them public. Impressed investors are now giving the funds and buyout firms even more money -- starting the cycle all over again.

But some experts fear that too much money chasing too few good opportunities for investment will lead to further hedge fund blowups -- and possibly to future Refcos. Pointing to the late 1980s, Steven Kaplan, a professor at the University of Chicago Graduate School of Business, says: "The last time you had so much capital sloshing around and easy markets, a lot of deals were done with marginal companies that probably should not have been."

<snip>

In theory, Wall Street has gatekeepers -- the major investment banks -- to scrutinize dubious deals. But in practice, the banks are hungry for fees and sometimes appear to take this critical job more lightly than the public expects. The federal courts have held that banks underwriting securities can bear legal responsibility to investigate and verify the information presented to investors in a public offering. That's what U.S. District Judge Denise Cote of New York wrote in a ruling last December in the tangle of litigation that followed WorldCom's collapse in 2002. But after years of reforms designed to avoid a repeat of Wall Street scandals, says John C. Coffee, a securities-law professor at Columbia University Law School, "our current system of due diligence by underwriters seems to be dysfunctional." Investment banks, he adds, "are doing inadequate due diligence to catch the kind of frauds that should be caught."

...more...

[UpInArms]

12. GM weakens on SEC probe, bankruptcy speculation

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-27T231237Z_01_N27690082_RTRIDST_0_AUTOS-GM-STOCK-UPDATE-1.XML

DETROIT, Oct 27 (Reuters) - Shares of General Motors Corp. (GM.N: Quote, Profile, Research), already hurt by $3.8 billion in losses this year, fell almost 7 percent and its bonds weakened on Thursday after the company said U.S. regulators issued subpoenas as part of a probe into its accounting practices.

GM's announcement on Wednesday that the Securities and Exchange Commission (SEC) was investigating its pension accounting, retiree benefits and transactions with former unit Delphi Corp. (DPHIQ.PK: Quote, Profile, Research) led to speculation in financial markets that the world's largest automaker could file for Chapter 11 bankruptcy protection.

The automaker said on Thursday it was not considering a bankruptcy filing. Though many analysts consider bankruptcy unlikely any time soon, the speculation drove GM stock and bond prices lower and raised the cost of its default swaps -- the price an investor would pay to insure the company's debt.

...more...

[UpInArms]

13. US CREDIT - GM, GMAC widen on SEC subpoenas

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-27T204937Z_01_N27599870_RTRIDST_0_MARKETS-CREDIT.XML

NEW YORK, Oct 27 (Reuters) - Credit spreads of General Motors Corp. (GM.N: Quote, Profile, Research) and its finance arm GMAC ended wider on Thursday on concerns heightened regulatory scrutiny could delay GM selling a majority stake in its finance company to bolster its credit.

GM late on Wednesday said it had been subpoenaed by the U.S. Securities and Exchange Commission as part of a probe into its pension practices, retiree benefits, and transactions with former unit Delphi Corp. (DPHIQ.PK: Quote, Profile, Research).

GM said finance arm the General Motors Acceptance Corp. also received subpoenas related to certain insurance products.

In overnight trading, five-year protection on GM debt rose 50 basis points to about 850 basis points per year, with those levels holding during U.S. trading.

...more...

[UpInArms]

21. Delphi seeks far-reaching union givebacks-WSJ

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-28T100554Z_01_N28506685_RTRIDST_0_AUTOS-DELPHI.XML

NEW YORK, Oct 28 (Reuters) - Delphi Corp. (DPHIQ.PK: Quote, Profile, Research) is demanding concessions from the United Auto Workers beyond wage and benefits cuts that could undermine the union's ability to organize new members and hasten its deterioration, the Wall Street Journal reported on Friday.

The largest U.S. auto parts company, which filed for bankruptcy-court protection earlier this month, wants greater leeway to hire nonunion temporary and contract workers without union input and to buy materials and parts from nonunion sub-suppliers, the paper said, citing a summary of the company's demands.

Delphi also is proposing to move large numbers of traditional union jobs outside the union's protection. Jobs such as machine repairmen, carpenters and tool builders all would be outsourced to other companies, the paper reported.

Outsourced jobs also include the yard maintenance, snow removal and janitorial jobs, the paper said.

...more...

[UpInArms]

15. Wal-Mart Memo May Raise Litigation Risk

http://www.latimes.com/business/la-fi-walmart28oct28,0,4947455.story?coll=la-home-business

Lawyers for employers and employees agree: A leaked Wal-Mart memo proposing ways to cut healthcare costs could mean big legal trouble for the world's largest retailer.

Even if the company accepts none of the questionable suggestions it contains, the memo will furnish plaintiffs' attorneys with evidence to argue that Wal-Mart Stores Inc. discriminates against some workers, said Jeffrey Winikow, a Century City employee-rights lawyer. "The memo is a cesspool of legal violations."

The memo — acquired and publicized this week by Wal-Mart Watch, a nonprofit group allied with labor unions — virtually guarantees that the retailer, which already is fighting class-action lawsuits over its hiring and promotion practices, will face a slew of new discrimination claims, Winikow said.

Writing to Wal-Mart's board of directors in advance of their meeting next month, Executive Vice President of Benefits Susan Chambers proposed that benefits be redesigned to attract a "healthier, more productive workforce," potentially saving $670 million by 2011.

<snip>

Employment rules that discriminate against workers on the basis of age or a permanent physical disability run afoul of federal and state laws, whether the discrimination is intentional or not. The laws usually require employers to make reasonable accommodations for a worker's physical disabilities, including chronic medical conditions such as diabetes or heart disease.

...more...

[UpInArms]

17. "But you can't mandate morality."

http://www.startribune.com/stories/1069/5694012.html

excerpt:

"Sarbanes-Oxley costs us $2 million annually, and we can't see the benefit," said Tony Brausen, chief financial officer of Tennant Co. "It was passed in haste in the wake of the Enron and WorldCom scandals. It doesn't do what those legislators wanted it to do."

Brausen's boss, CEO Janet Dolan, is one of two Minnesota executives on the 21-member panel meeting this week in Washington. And Dolan, a former Tennant general counsel, and other Sarbanes critics are focusing most of their concerns on the internal control audit requirements known as Section 404.

And they note that insurance giant AIG as well commodities broker Refco both were compliant with Section 404, yet fraud was later detected at both companies.

<snip>

"You can have all the rules and policies in place," said Kaye O'Leary, the new CFO of Buca Inc. "But you can't mandate morality." O'Leary should know. Earlier this year, she succeeded former CFO Greg Gadel, who along with Joe Micatrotto, Buca's former CEO, is under SEC investigation for alleged fraud in 2000 and 2001.

...more...

See, this is the problem with that "morality" thing - people seem to be confused about their words.

You can mandate "ethics",

eth·ic (ĕth'ĭk)
n.
A set of principles of right conduct.

but not "morality"

mo·ral·i·ty (mə-răl'ĭ-tē, mô-)
n., pl. -ties.
The quality of being in accord with standards of right or good conduct.
A system of ideas of right and wrong conduct: religious morality; Christian morality.
Virtuous conduct.
A rule or lesson in moral conduct.

[UpInArms]

18. BofA agrees to settle lawsuit (WorldCom)

http://www.charlotte.com/mld/charlotte/business/13017348.htm

Bank of America Corp. has settled another investor lawsuit for selling securities in a company that filed for bankruptcy.

The Charlotte bank and 13 other investment banks have agreed to pay $639 million to investors in WorldCom, the telecommunications company whose bankruptcy reorganization was the largest in U.S. history.

Bank of America will pay $78 million, in proportion with its sales of the company's bonds. The banks denied wrongdoing. A Bank of America spokesman said the company simply wanted to resolve the litigation.

<snip>

Bank of America still faces lawsuits over its sale of securities in Enron Corp. and Refco Inc. Enron trails only WorldCom for the title of largest bankruptcy. Refco became the fourth-largest earlier this month.

...more at link...

[UpInArms]

20. Bernanke's a shoe-in, but...

http://money.cnn.com/2005/10/28/markets/bondcenter/fed_markets_bernanke/

NEW YORK (CNN/Money) - Right after President Bush nominated Ben Bernanke to be chairman of the Federal Reserve, stock investors partied while bond investors grew more nervous about inflation.

Now stocks have caught on to the concerns of their more inflation-wary brothers and sisters in the Treasury market.

Why? There are a lot of complex reasons but they mostly distill down to this: people on Wall Street are nervous about Bernanke's credibility as an inflation-fighter, something that hasn't been lacking at the Fed since Paul Volcker preceded Alan Greenspan at the helm of the nation's central bank.

<snip>

That entails a willingness to preserve the value of the dollar at nearly all costs, and an ability to keep markets calm if the fight takes the economy into a recession, which happened under both Greenspan and his predecessor, the cigar-smoking, 6-foot, 7-inch Volcker.

...more...

[UpInArms]

30. Treasury prices up; yields down, after core prices news

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38653.3640461111-847989469&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Treasury prices rose, pushing yields down a bit, after news from the Commerce Department that core consumer prices increased at a 1.3% rate in the third quarter, down from a 1.7% rate in the second quarter. Gross domestic product increased 3.8% in the quarter just ended, outstripping economists' expectations for a 3.6% rise. Separately, the Labor Department said employment costs rose 0.8% in the third quarter, in line with expectations. The yield on the benchmark 10-year Treasury note last stood at 4.552%, down from 4.560% before the reports.

[UpInArms]

41. Printing Press Warm-Up: Fed adds reserves via five-day system RPs

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-28T133737Z_01_N28344872_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Oct 28 (Reuters) - The Federal Reserve on Friday said it was adding temporary reserves to the U.S. banking system through five-day system repurchase agreements.

The benchmark federal funds rate last traded at 3.938 percent, above the Fed's target of 3.75 percent for the overnight lending rate.

Further details of the operations are available at: http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

65. Treasurys turn lower by midday

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38653.5091742593-848013462&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

CHICAGO (MarketWatch) -- Early, data-driven gains for Treasurys had been sapped by midday. Strength in equities has weighed somewhat, said analysts at Action Economics. Some anxiety over the impending possible indictment of White House aides is also impacting at the margin, as is weakness in European markets, where German government bonds closed for the weekend at their lows, the analysts said. The bond market was also turning more defensive ahead of next week's busy calendar, which includes a likely Fed rate increase, the jobs report, quarterly Treasury auction announcements and congressional testimony from Fed chief Alan Greenspan. The 10-year note was down 3/32 at 97 17/32, yielding 4.56% vs. 4.55%

[UpInArms]

79. U.S. Treasuries continue retreat after Libby news

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-28T171349Z_01_N28541589_RTRIDST_0_MARKETS-BONDS-LIBBY-URGENT.XML

CHICAGO, Oct 28 (Reuters) - U.S. Treasury debt prices, already on the retreat from early highs, continued to edge lower after news that a top aide to Vice President Dick Cheney had been indicted.

The move had been widely anticipated, and many dealers said the announcement had little or no impact.

Still, the 10-year Treasury note yield rose above 4.58 percent from the day's low of 4.53 percent.

"It encumbers execution of policies, losing key staff people. With (President George W. Bush's) poll numbers down, this doesn't help much," said Gary Schlossberg, senior economist at Wells Fargo Capital Management.

...more...

[UpInArms]

89. Treasurys end week with biggest yield rise since March

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38653.6410336343-848034431&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- The benchmark 10-year Treasury note finished lower on the day and on the week, recording the biggest weekly jump for its yield in nearly seven months. Bonds were on the defensive despite mild inflation readings in two reports, as a strong growth report was seen doing little to prevent the Federal Reserve from raising interest rates at each of its next three meetings, beginning with Tuesday's. The 10-year note was dwon 4/32 at 97 16/32, shaving around $1.25 per each $1,000 worth of securities. It was yielding 4.57% vs. 4.55%.

[UpInArms]

37. pre-opening blather

9:01AM: S&P futures vs fair value: +4.4. Nasdaq futures vs fair value: +8.5. Stocks remain poised to start the session higher as traders digest the better than expected GDP data and find relief in further evidence of a continuing strong economy. The economic calendar offers one more item today; at 9:45 ET, the University of Michigan's revision to its October Consumer Sentiment report will be released. Analysts expect a read of 76.0.

8:33AM: S&P futures vs fair value: +4.7. Nasdaq futures vs fair value: +7.0. Futures trade heads slightly higher following economic data, indicating an upside open for the indices... Advance Q3 GDP checked in at 3.8% (consensus +3.6%), marking the tenth consecutive quarter of growth over 3%. The chain deflator - a key inflation measure - has come in at 3.1% (consensus +2.8%)... The Q3 employment cost index rose 0.8% (consensus +0.8%)... Bonds have also held their ground as the 10-yr note is down two ticks to yield 4.56%

8:03AM: S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +3.0. The cash market may open slightly higher today. The week's last round of earnings reports has arrived in mixed fashion, with Avon Products (AVP), Baker Hughes (BHI), Olin (OLN), and Frontier Airlines (FRNT) amongst those beating estimates and Anadarko Petroleum (APC), Bristol-Myers (BMY), Constellation Energy (CEG), and Peoples Energy (PGL) falling short of expectations. Last night, Microsoft (MSFT) came in a penny ahead of EPS estimates, but its downside fiscal Q2 guidance has garnered more attention. Separately, traders await a handful of economic reports - with Q3 GDP data and the Q3 Employment Cost Index slated for the bottom of the hour.

[ozymandius]

39. blathery headbump

Thanks UIA!

Ozy :hi:

[UpInArms]

43. open for bidness and hi!

hiya Ozy!

here's the early morning casino roll

9:47 EST

Dow 10,284.14 +54.19 (+0.53%)
Nasdaq 2,077.95 +14.14 (+0.69%)
S&P 500 1,185.95 +7.05 (+0.60%)
10-Yr Bond 4.547 -0.11 (-0.24%)

NYSE Volume 160,015,000
Nasdaq Volume 184,414,000

:woohoo: Everybody's Happy!

[UpInArms]

45. 9:56 EST Markets say "Who Cares What You Think!"

"We got you by the 'nads, suckers!"

Dow 10,301.75 +71.80 (+0.70%)
Nasdaq 2,078.57 +14.76 (+0.72%)
S&P 500 1,186.92 +8.02 (+0.68%)
10-Yr Bond 4.542 -0.16 (-0.35%)
NYSE Volume 224,515,000
Nasdaq Volume 243,497,000

[UpInArms]

51. Novell Plans To Layoff 20% Of Workforce (to please Wall Street)

http://informationweek.com/story/showArticle.jhtml?articleID=172901197

Novell is expected to layoff as much as 20 percent of its workforce as part of a massive cost cutting measure to placate Wall Street.

Sources familiar with the company's plans said roughly half of the cuts -- 10 percent -- will come from Novell's operations in Provo, Utah and Waltham, Mass. The other 10 percent will impact Novell's European division, including SUSE Linux operations in Nuremberg, Germany. Novell's North American sales force will not be affected.

"The cuts will be deep across the board, as much as 20 percent," said one source close to the company who preferred to remain anonymous. "SUSE is being decimated, and layoffs will include SUSE developers."

As the company's fiscal year end approaches on Oct. 31, employees and observers await an official announcement. Sources expect more than 1,000 of the company's 5,800 employees will be fired. Novell would not confirm that information.

<snip>

At least one partner fears the tarnish from Novell's layoffs will rub off on the channel. " Layoffs will impact Novell's partners, especially when it comes to winning customers," said the partner, who asked not to be identified. "It is killing our image with the customer. These layoffs pretty much spell out to the customer that there's a problem in paradise."

...more...

[UpInArms]

55. 10:48 EST revellers leaving (?) and blather

Dow 10,257.65 +27.70 (+0.27%)
Nasdaq 2,065.87 +2.06 (+0.10%)
S&P 500 1,180.83 +1.93 (+0.16%)
10-Yr Bond 4.547 -0.11 (-0.24%)

NYSE Volume 553,915,000
Nasdaq Volume 522,754,000

10:30 The market's majors hold steady, but a vacillating Tech sector poses somewhat of challenge to upward efforts. While the sector draws support from the gains offered by nearly every bellwether, it's pressured by the deterioration of its semiconductor equipment group. In particular, KLA-Tenecor's (KLAC 44.76 -2.48) 5.3% tumble takes down the group. Although the company surpassed analysts' fiscal Q1 EPS expectations by $0.02 last night, its downside guidance for fiscal Q2 earnings and revenues has captured more attention. In sympathy, Applied Materials (AMAT 16.25 -0.46), Novellus (NVLS 21.05 -0.52), and Teradyne (TER 13.21 -0.35) have fallen substantially. ..NYSE Adv/Dec 1904/883. ..NASDAQ Adv/Dec 1572/974.

10:00 Heading higher, the indices are supported by gains extended by all ten of the economic sectors. After faring as one of yesterday's worst performers, Consumer Discretionary (+1.2%) has emerged as the early leader. Retailers are primarily responsible for the sector's rise, gaining 1.5% after Q3 GDP data showed strong consumer spending growth of 3.9%, up from Q2's 3.4%. The current laggard is the Technology sector, challenged by especial weakness in semiconductors. Separately, the revision to the University of Michigan's October Consumer Confidence checked in at 74.2 (consensus 76.0), but is overshadowed by the read on actual consumer spending. ..NYSE Adv/Dec 1942/584. ..NASDAQ Adv/Dec 1668/645.

9:40 Following futures indications, the equity market started the session on positive turf. A better than expected 3.8% rise in third quarter GDP has catalyzed some early optimism. The data reflects the tenth consecutive quarter of economic growth above the decades-long trend of 3.1%, and notable rises in business investment (8.9%) and consumer spending (3.9%) further evidence a continuing strong U.S. economy. Separately, today's earnings results are mixed, with Microsoft (MSFT) sitting center stage. While the Dow component surpassed analysts' expectations by a penny, its guidance disappointed investors. Reports from Chevron (CVX) and Bristol-Myers (BMY) came in below estimates, but, for the time being, the strong GDP read has eclipsed the earnings front.

[UpInArms]

58. Fannie Mae portfolio slashed in 11th monthly fall

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-28T145336Z_01_N28328944_RTRIDST_0_FINANCIAL-FANNIE-PORTFOLIO-UPDATE-2.XML

NEW YORK, Oct 28 (Reuters) - Fannie Mae (FNM.N: Quote, Profile, Research), the largest U.S. home funding company, on Friday said its mortgage portfolio shrank by an annualized 47.8 percent in September, its eleventh consecutive monthly decline.

That sharp fall followed a 27.1 percent drop in August.

Fannie Mae's retained portfolio totaled $727.8 billion at the end of September, down from $768.3 billion at the end of August, it said in its monthly summary report.

Year-to-date, the portfolio has shrunk at an annualized 25.2 percent as the Washington-based company strives to meet the core capital requirement imposed by its regulator, the Office of Federal Housing Enterprise Oversight, following a multibillion-dollar accounting scandal.

Portfolio purchases were $10 billion and sales were $31.1 billion, which, net of portfolio liquidations, resulted in a negative 47.8 percent annualized growth rate of the mortgage portfolio, the company said.

...more...

[UpInArms]

59. Twin Spikes at 11:17 (pre-emptive buying?)

Dow 10,296.79 +66.84 (+0.65%)
Nasdaq 2,072.58 +8.77 (+0.42%)
S&P 500 1,185.12 +6.22 (+0.53%)
10-Yr Bond 4.547 -0.11 (-0.24%)

NYSE Volume 730,199,000
Nasdaq Volume 658,115,000

11:00 ET Dow +42.35, Nasdaq +4.01, S&P +3.54
Reversals in Energy (-1.3%) and Technology (-0.4%) have pushed the indices lower, but each retains positive footing on account of gains in eight other sectors. Lower than expected earnings delivered by Chevron (CVX) this morning has sent shares 2.5% lower, sparking selling that leaves most of the market's energy issues trending negative. Crude's downtick (it's currently trading at $60.90/bbl), alongside similar pullbacks in natural gas and gasoline, has not helped the sector this morning. ..NYSE Adv/Dec 1768/1120. ..NASDAQ Adv/Dec 1492/1138.

10:30 ET Dow +52.59, Nasdaq +9.02, S&P +5.55
The market's majors hold steady, but a vacillating Tech sector poses somewhat of challenge to upward efforts. While the sector draws support from the gains offered by nearly every bellwether, it's pressured by the deterioration of its semiconductor equipment group. In particular, KLA-Tenecor's (KLAC 44.76 -2.48) 5.3% tumble takes down the group. Although the company surpassed analysts' fiscal Q1 EPS expectations by $0.02 last night, its downside guidance for fiscal Q2 earnings and revenues has captured more attention. In sympathy, Applied Materials (AMAT 16.25 -0.46), Novellus (NVLS 21.05 -0.52), and Teradyne (TER 13.21 -0.35) have fallen substantially. ..NYSE Adv/Dec 1904/883. ..NASDAQ Adv/Dec 1572/974.

[UpInArms]

61. 11:49 EST taller spikes (to counter 12 o'clock announcement?)

Dow 10,312.64 +82.69 (+0.81%)
Nasdaq 2,077.06 +13.25 (+0.64%)
S&P 500 1,187.91 +9.01 (+0.76%)
10-Yr Bond 4.553 -0.05 (-0.11%)

NYSE Volume 887,586,000
Nasdaq Volume 790,458,000

11:30 ET Dow +71.88, Nasdaq +8.96, S&P +7.17
Marching ahead, the equity market's averages remain strong going into the lunch hour. Aside from gains of more than 1.0% in Dow components HD, HPQ, MO, MRK, JNJ and MSFT, which paces the day's gains on the price-weighted index, Verizon (VZ 31.22 +0.46) has also lent support, jumping 1.5% after Merrill Lynch upgraded the stock to Buy from Neutral. With respect to Microsoft (MSFT 25.44+0.59), investors appear to have deemphasized the companies disappointing fiscal Q2 guidance and instead directed their focus towards the upside earnings delivered last night. Perhaps lending further support to MSFT shares is an analyst upgrade; CSFB changed their opinion on the stock to Outperform from Neutral, and upped their price target. ..NYSE Adv/Dec 1888/1090. ..NASDAQ Adv/Dec 1627/1116.

[UpInArms]

62. 11:58 EST YeeHaw! We're RICH! RICH! RICH! I Tell You!

Dow 10,328.65 +98.70 (+0.96%)
Nasdaq 2,079.71 +15.90 (+0.77%)
S&P 500 1,189.86 +10.96 (+0.93%)
10-Yr Bond 4.555 -0.03 (-0.07%)

NYSE Volume 941,767,000
Nasdaq Volume 832,187,000

[UpInArms]

63. US stocks rise on strong GDP, but CIA case looms

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-10-28T155324Z_01_N28533608_RTRIDST_0_MARKETS-STOCKS-UPDATE-6.XML

NEW YORK, Oct 28 (Reuters) - U.S. stocks rose on Friday, buoyed by a report showing faster-than-expected third-quarter economic growth. But investor enthusiasm was tempered by lingering concerns about possible indictment of key White House officials in the leak of a CIA agent's identity.

<snip>

"We had a pretty dramatic sell-off yesterday, so it's to be expected that you are going to get some type of 'dead cat' bounce in this market. GDP numbers are helping somewhat, but it was pretty much in line," said Angel Mata, managing director of listed equity trading at Legg Mason Wood Walker.

He added that the CIA case was muting the effect of the good economic news.

"There are a lot of bad things happening right now in the Bush White House," Mata said. "Obviously, leadership at the highest level is very important to investors feeling comfortable about making investment decisions. This is probably the darkest or the lowest point in the Bush presidency."

...more...

That's one hell of a "dead cat bounce". :eyes:

[ozymandius]

66. rubberized dead cat bounce

12:29
Dow 10,331.93 +101.98 (+1.00%)
Nasdaq 2,078.78 +14.97 (+0.73%)
S&P 500 1,190.19 +11.29 (+0.96%)
10-Yr Bond 45.63 +0.05 (+0.11%)
NYSE Volume 1,091,479,000
Nasdaq Volume 941,346,000

[UpInArms]

64. Stocks rally ahead of CIA leak probe announcement

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38653.5061579167-848012951&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- U.S. stocks rallied Friday, with the Dow Jones Industrial Average posting a triple-digit gain, ahead of the release of paperwork linked to special prosecutor Patrick Fitzgerald's probe of a leak that revealed the identity of an undercover CIA agent. The paperwork may show the indictment of key Bush administration officials. The Dow industrials ($INDU) was last up 106 points at 10,335. The Nasdaq Composite Index ($COMPQ) rose 18 points to 2,081 while the S&P 500 Index ($SPX) was up 12 points at 1,191.

12:12 EST

Dow 10,333.69 +103.74 (+1.01%)
Nasdaq 2,079.91 +16.10 (+0.78%)
S&P 500 1,190.46 +11.56 (+0.98%)
10-Yr Bond 4.561 +0.03 (+0.07%)

NYSE Volume 1,025,856,000
Nasdaq Volume 894,089,000

Um...Yeah...Right...Whatever :eyes:

[UpInArms]

67. Gold futures fall, but set to close higher for the week

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38653.5215997338-848015310&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- December gold fell $2.50 to $473.20 an ounce in afternoon dealings. "It almost seems like the fund interest in gold is being compacted into very brief but concentrated buying bursts," Nell Sloane, an analyst at NSFutures.com, said in daily commentary. Gold prices were still set to close around $4 higher for the week.

[UpInArms]

74. Dec Gold closes @ $474.80 oz

1:39pm 10/28/05 DEC GOLD CLOSES AT $474.80, DOWN 80C FOR THE DAY

1:39pm 10/28/05 DEC GOLD CLOSES UP $5.70, OR 1.2%, FOR THE WEEK

[ozymandius]

70. 1:19 numbers and blather

Dow 10,332.41 +102.46 (+1.00%)
Nasdaq 2,078.16 +14.35 (+0.70%)
S&P 500 1,190.25 +11.35 (+0.96%)
10-Yr Bond 45.79 +0.21 (+0.46%)
NYSE Volume 1,293,727,000
Nasdaq Volume 1,089,710,000

1:00PM: The averages maintains strength an inch higher... While the strong GDP data fanned interest rate hike fears within the bond market today, the dollar got a lift after the latest GDP report showed that the U.S. economy expanded at a faster pace that expected. Over the past half an hour and following reports that Scooter Libby has been indicted on five counts in the CIA leak probel, the greenback has popped to session highs. With respect to Treasuries, the benchmark 10-year is heading towards is largest weekly drop since March; it's currently off eight ticks and yielding 5.8%.NYSE Adv/Dec 2148/972, Nasdaq Adv/Dec 1749/1104

[54anickel]

71. CEO salaries jumped 30 percent in 2004

Typical top dog's compensation package came in at $5.74 million

http://www.msnbc.msn.com/id/9844475/

NEW YORK - When it comes to chief executives and their compensation, a new survey makes it clear: It’s nice work if you can get it.

A typical chief executive at the biggest U.S. companies was last year awarded $5.74 million of compensation, 30.2 percent more than in 2003, according to a survey released Thursday by the Corporate Library, a corporate governance research group in Portland, Maine.

The average CEO at companies in the Standard & Poor’s 500 index was paid even more — $11.71 million.

The median increase was more than nine times last year’s 3.3 percent rise in U.S. consumer prices, and double the 15 percent increase a year earlier. The average increase was 91 percent, a number distorted by the 27 CEOs whose compensation swelled more than 1,000 percent.

“We’re seeing the kinds of pay increases we saw in the 1990s,” said Paul Hodgson, senior research associate at the Corporate Library, in an interview.

more...

[UpInArms]

72. 2:00 EST Market ADORES Criminals in the Whitehouse

Dow 10,341.73 +111.78 (+1.09%)
Nasdaq 2,078.88 +15.07 (+0.73%)
S&P 500 1,190.76 +11.86 (+1.01%)
10-Yr Bond 4.583 +0.25 (+0.55%)

NYSE Volume 1,437,825,000
Nasdaq Volume 1,206,101,000

1:30PM: The indices establish fresh highs as buyers' momentum accelerates. Today's action has sent the Utilities sector back to the top of the S&P; up 1.5% and sporting gains in 31 of its 33 constituents, it places first amid the nine other rising sectors. Tech continues to stand last, although pressure in semiconductors has somewhat eased and allowed the sector to maintain a 0.3% gain. Microsoft (MSFT 25.40 +0.55) and Verizon (VZ 31.64 +0.88) continue to shine brightest, countering substantial losses in KLAC, AMAT, QCOM, and MXIM.NYSE Adv/Dec 2155/995, Nasdaq Adv/Dec 1792/1091

1:00PM: The averages maintain their strength and inch higher... While the strong GDP data fanned interest rate hike fears within the bond market today, the dollar got a lift after the latest GDP report showed that the U.S. economy expanded at a faster pace than expected. Over the past half an hour and following reports that Scooter Libby has been indicted on five counts in the CIA leak probe, the greenback has popped to session highs. With respect to Treasuries, the benchmark 10-year is heading towards is largest weekly drop since March; it's currently off eight ticks and yielding 5.8%.NYSE Adv/Dec 2148/972, Nasdaq Adv/Dec 1749/1104

[UpInArms]

73. Heartless Dick Sneers:ACCEPTS LIBBY RESIGNATION 'WITH DEEP REGRET'

1:56pm 10/28/05 CHENEY ACCEPTS LIBBY RESIGNATION 'WITH DEEP REGRET'

[54anickel]

75. Big 2:00 spike

Edit for html

Dow 10,354.76 +124.81 (+1.22%)
Nasdaq 2,081.39 +17.58 (+0.85%)
S&P 500 1,192.20 +13.30 (+1.13%)
10-Yr Bond 4.591% +0.03
NYSE Volume 1,460,742,000
Nasdaq Volume 1,225,771,000

[UpInArms]

76. 2:05 and still spiking (or is it another "snapback"?)

Dow 10,360.51 +130.56 (+1.28%)
Nasdaq 2,082.37 +18.56 (+0.90%)
S&P 500 1,192.91 +14.01 (+1.19%)
10-Yr Bond 4.593 +0.35 (+0.77%)

NYSE Volume 1,471,121,000
Nasdaq Volume 1,234,632,000

[UpInArms]

77. U.S. stocks rise on GDP data, unfazed by CIA case

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-28T173750Z_01_N28367952_RTRIDST_0_MARKETS-STOCKS-UPDATE-9.XML

NEW YORK, Oct 28 (Reuters) - U.S. stocks rose sharply on Friday on a report showing faster-than-expected third-quarter economic growth as investors showed little concern over news that Vice President Dick Cheney's chief of staff was charged with perjury and other crimes.

A 24 percent rise in Microsoft Corp.'s (MSFT.O: Quote, Profile, Research) earnings also heartened investors despite a disappointing revenue outlook from the world largest software company.

Microsoft's stock was up 2.3 percent at $25.42 on Nasdaq.

The indictment of Lewis Libby was returned by a grand jury investigating the leak of a covert CIA operative's identity. The White House announced that Libby had resigned from his position soon after.

"It's clearly not good, but the market is probably more focused on the economic front," Hans Olsen, chief investment officer at Bingham Legg Advisers in Boston, said.

...more...

[54anickel]

81. See, and yesterday there was all that worry talk about the indictments.

Nothin' to worry about, everything is just peachy. :eyes:

I would have thought it would be rough day on the street. Guess everything is just at such a bargain price right now. Can't help but go on a buying spree.

[UpInArms]

82. they call it a bargain

the best I ever had

(hmmm... did I hear someone say "bend over"?)

[AnneD]

95. Well.....

It would have been worse if they had gotten Rove or Cheney cause then we would not have had any leadership in the WH, and WS is relieved. I don't think it is a done deal yet. Will Libby take the fall all by himself??? The WH credibility is in the toilet, as with most GOP leadership in the eyes of Main St. I still think we will have major changes.

[UpInArms]

78. Moody's cuts Doral (Financial)'s debt rating deeper into junk

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-28T171757Z_01_WNA1481_RTRIDST_0_FINANCIAL-DORAL-MOODYS-URGENT.XML

NEW YORK, Oct 28 (Reuters) - Moody's Investors Service on
Friday cut its ratings on Doral Financial Corp. (DRL.N: Quote, Profile, Research) deeper
into junk territory because the company will not be able to
file restated financial reports as previously indicated.

Doral, Puerto Rico's largest residential mortgage lender,
on Tuesday said the U.S. Securities and Exchange commission is
formally investigating its accounting and it no longer expects
to file its 2004 amended annual report by Nov. 10.

Moody's cut Doral's senior debt rating by two notches to
"Ba3," the third-highest junk rating, from "Ba1." The outlook
is negative, meaning another rating downgrade is likely over
the next 12 to 18 months. Rating downgrades usually raise
borrowing costs.

[UpInArms]

83. Fitzgerald Press Conference Highlights:

3:22pm 10/28/05 FITZGERALD SAYS WAS NO POLITICAL INTERFERENCE WITH PROBE

3:01pm 10/28/05 FITZGERALD: 'THIS INDICTMENT IS NOT ABOUT THE WAR'

2:48pm 10/28/05 FITZGERALD: DON'T HAVE AUTHORITY TO WRITE REPORT ON PROBE

2:43pm 10/28/05 FITZGERALD: REPORTERS SHOULDN'T BE SUBPOENAED 'ROUTINELY'

2:30pm 10/28/05 FITZGERALD: 'SUBSTANTIAL BULK' OF INVESTIGATION COMPLETED

2:28pm 10/28/05 FITZGERALD: LIBBY WAS FIRST TO DISCLOSE PLAME'S CIA ROLE

2:19pm 10/28/05 FITZGERALD: WILSON'S CIA COVER WAS BLOWN IN JULY 2003

(updating line items on edit)

[54anickel]

91. What's he mean it's not about the war? I don't like the sound of that

highlight at all.

[UpInArms]

85. 2:44 EST rally mode still in effect

Dow 10,366.11 +136.16 (+1.33%)
Nasdaq 2,082.91 +19.10 (+0.93%)
S&P 500 1,193.48 +14.58 (+1.24%)
10-Yr Bond 4.583 +0.25 (+0.55%)

NYSE Volume 1,647,929,000
Nasdaq Volume 1,370,374,000

2:30PM: Showing no sign of losing steam, the market extends its reach...

Topping the S&P's best performers list today, the personal products group has surged 12% on account of Avon's (AVP 28.47 +3.76) early morning earnings report. Gains levied by Avon, Alberto Culver (ACV 44.09 +0.77) and Gillette (which was acquired by Proctor & Gamble this month) have sent personal products higher not only today, but have placed the group number ten of the S&P's 139 subsects during the fourth quarter. On that quarter-to-date basis, however, the metal and glass sect reigns, followed by diversified chemicals, airlines, and internet software and services. The quarter's laggard is IT consulting and services, off 23.8% and trailed by auto manufacturers and construction materials.NYSE Adv/Dec 2251/922, Nasdaq Adv/Dec 1380/1087

[UpInArms]

87. 3:17 EST still shooting for the moon

Dow 10,387.56 +157.61 (+1.54%)
Nasdaq 2,086.20 +22.39 (+1.08%)
S&P 500 1,195.90 +17.00 (+1.44%)
10-Yr Bond 4.571 +0.13 (+0.29%)

NYSE Volume 1,841,752,000
Nasdaq Volume 1,513,200,000

adding blather on edit:

3:25PM: Going into the week's close, the market's rally maintains its momentum. A look at the market's breadth further evidences the bearish tone that took early root and that's dominated trading today. On the Big Board, advancers have a 3-to-1 edge over decliners. Advancing issues on the Composite, meanwhile, have nearly a 2-to-1 lead over decliners. At this time yesterday, advancers were down 9-to-23 at the NYSE and 7-to-23 at the Nasdaq. Separately, the Q3 earnings season continues next week, and an extension of the upside earnings trend may help sustain today's sentiment.NYSE Adv/Dec 2361/838, Nasdaq Adv/Dec 1941/1043

[54anickel]

90. Huh? Bearish tone? What's that blatherer talkin' bout?

[daleo]

92. I guess the market is glad Rove didn't get indicted.

That's the only thing I can see.

[UpInArms]

93. closing numbers (they appear to ecstatic)

Dow 10,402.77 +172.82 (+1.69%)
Nasdaq 2,089.88 +26.07 (+1.26%)
S&P 500 1,198.39 +19.49 (+1.65%)
10-Yr Bond 4.567 +0.09 (+0.20%)

NYSE Volume 2,276,632,000
Nasdaq Volume 1,820,787,000

:shrug:

gotta run - have a great Fitzmas weekend! :hi: