STOCK MARKET WATCH, Thursday 25 May

[ozymandius]

Thursday May 25, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 972 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1979 DAYS
WHERE'S OSAMA BIN-LADEN? 1679 DAYS
DAYS SINCE ENRON COLLAPSE = 1640
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 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 May 24, 2006

Dow... 11,117.32 +18.97 (+0.17%)
Nasdaq... 2,169.17 +10.41 (+0.48%)
S&P 500... 1,258.57 +1.99 (+0.16%)
Gold future... 637.50 -36.20 (-5.68%)
30-Year Bond 5.13% -0.02 (-0.47%)
10-Yr Bond... 5.03% -0.03 (-0.63%)






GOLD, EURO, YEN, Loonie and Silver


PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Mike Hartman

THE FED CAN MAKE IT HAPPEN!

It’s a busy day in the financial markets. The Federal Reserve has said they will be “data dependent” on whether to hike rates again at the end of June, or pause for a time at the 5% level. This morning we got data on durables goods orders being much worse than expected and new home sales much better than expected. The conflicting data heightens the debate whether the Fed should raise rates again or not, but all the while this is happening, the U.S. Treasury is busy borrowing a cool $36 billion from the markets via the sales of bonds today and tomorrow. The high energy costs and higher interest rates are clearly working to slow growth in the economy, and I will extend that by saying the entire global economy, not just here in the USA. Stock prices got a bounce higher with the strong housing data, but have rolled-over to negative territory in early afternoon trading. We have conflicting data, but a sharp rise higher for the U.S. dollar and a pounding for gold along with energy prices lower across the board.

I found it quite interesting the dollar is launching higher today with most of the market spin revolving around the great news for new home sales. I’ve been saying for some time now that the Federal Reserve and the U.S. Treasury have every intention to try and keep the U.S. dollar as the sole reserve currency to use in global trade. It is their mutual tool of influence and control used around the world. It is imperative the dollar be preserved and with today as an official government borrowing day, it’s no surprise to see the dollar higher, bonds reversing to move higher, and gold getting absolutely hammered. If the Working Group on Financial Markets has anything to say, they would be screaming to “Buy our paper…paper dollars and debt!” “Do not buy that barbarous relic called gold!” and finally, “Watch us keep a lid on the oil price!” All those objectives are being met with the action in today’s trading.

-cut-

Economic Reports

Aside from the Treasury debt auctions today, we got data on orders for durable goods and new home sales. Durable goods orders were expected to decline by 0.5%, but instead fell by a much larger 4.8% according to the Commerce Department. According to MarketWatch, “This was the first and sharpest decline in durable goods orders since January. The decline was broad-based. There was a sharp drop in aircraft orders. Only orders for metals and electrical equipment increased in April.” A slowdown is ahead and should work to keep downward pressure on stock prices overall and work to keep a bid in bond prices to keep interest rates from going through the roof. The Fed has wanted to slow down the booming housing market, but not cave-in the whole economy.

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

[ozymandius]

2. Today's Reports-a-plenty

8:30 AM Chain Deflator-Prel. Q1
Briefing Forecast 3.3%
Market Expects 3.3%
Prior 3.3%

8:30 AM GDP-Prel. Q1
Briefing Forecast 5.8%
Market Expects 5.8%
Prior 4.8%

8:30 AM Initial Claims 05/20
Briefing Forecast 315K
Market Expects 318K
Prior 367K

10:00 AM Existing Home Sales Apr
Briefing Forecast 6.60M
Market Expects 6.75M
Prior 6.92M

10:00 AM Help-Wanted Index Apr
Briefing Forecast 38
Market Expects 38
Prior 38

[UpInArms]

30. 8:30 reports tumbling in

8:29 AM ET 5/25/06 U.S. SEASONALLY ADJUSTED INSURED UNEMPLOYMENT RATE 1.9%

8:29 AM ET 5/25/06 U.S. CONTINUING JOBLESS CLAIMS RISE 38,000 TO 2.42 MILLION

8:29 AM ET 5/25/06 U.S. 4-WEEK INITIAL CLAIMS AVERAGE RISES 3,250 TO 337,000

8:29 AM ET 5/25/06 U.S. WEEKLY INITIAL JOBLESS CLAIMS FALL 40,000 TO 329,000

8:30 AM ET 5/25/06 U.S. Q1 CORPORATE PROFITS UP 23.8% YEAR-ON-YEAR

8:30 AM ET 5/25/06 U.S. Q1 CORPORATE PROFITS UP 7.9% VS 14.4% RISE IN Q4

8:30 AM ET 5/25/06 U.S. Q1 CORE PCE PRICE INDEX UP 2%, UNREVISED FROM PREV EST

8:30 AM ET 5/25/06 U.S. Q1 GDP REVISIONS DUE TO INVENTORY RISE, LOWER TRADE GAP

8:30 AM ET 5/25/06 U.S. Q1 GDP GROWTH REMAINS FASTEST SINCE Q3 2000

8:30 AM ET 5/25/06 U.S. Q1 GDP REVISION BELOW 5.8% FORECAST

8:30 AM ET 5/25/06 U.S. Q1 GDP UP 5.3% VS 4.8% PREV EST.

[UpInArms]

31. GDP revised higher to 5.3% rate in first quarter - below 5.8% forecast

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BB6B15F97%2D20BE%2D47A7%2D9EEA%2D813141334071%7D&symbol=

WASHINGTON (MarketWatch) - The U.S. economy grew at a 5.3% annual rate in the first quarter, the Commerce Department said Thursday in its first revision of gross domestic product estimates.

<snip>

The upward revision was largely due to higher inventory investment and a lower trade deficit than the government had initially estimated.

Commerce said that lower consumer spending on services and weaker investment in equipment and software offset some of the upward revision.

In the first quarter, corporate profits rose 7.9% after rising 14.4% in the fourth quarter. Corporate profits are up 23.8% on a year on year basis, the largest increase since the third quarter of 2002.

Meanwhile, the inflation picture was unchanged.

The core personal consumption expenditure price index rose at a 2.0% annual rate in the period, unrevised from the initial estimate last month.

All consumer prices, including food and energy, also rose at a 2.0% rate.

...more...

[UpInArms]

32. U.S. weekly initial jobless claims @ 329,000 - last wk rev'd up 2K

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B6D31A406%2D1606%2D49B5%2DA959%2D4184B53322DA%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- First time claims for unemployment benefits fell to 329,000 in the week ending May 20, the Labor Department said Thursday, a decrease of 40,000 from the prior week. Initial claims for the week ending May 13 were revised slightly upward, to 369,000, from the previously reported 367,000. The four-week moving average of new claims rose by 3,250, to 337,000. The previous week's average was revised to 333,750. The number of people collecting unemployment benefits, meanwhile, rose by 38,000 to 2.42 million in the week ending May 13. The four-week moving average of continuing claims hit a four-and-a-half-year low of 2.41 million. The initial claims number was unexpected. Economists surveyed by MarketWatch were forecasting claims to fall to 319,000.

[AnneD]

50. Morning Marketeers,

:donut: and lurkers. Since more folks are unemployed, that means our economy is booming. So I guess that means stocks will again rise and WS once again takes a dump on Main Street.:crazy::wtf:

What happened to the days when unemployment meant that the economy was weak. If you don't have jobs and manufacturing-as a nation you have a big exposed Achilles tendon. And if that wasn't bad enough, there is precious little quality coming out of China at the moment. So my choice as a consumer is to choose which product is the least crappy and pay for it with my devalued dollar. These foolish policies will come back and bite us in the ass.

Once again I am forced to declare war. I will continue to seek out American manufactures and buy their products. I will shop at stores that treat their employees like humans. I will refuse to use the automated checkouts as it takes work from someone needing an entry level job.

My guerrilla campaign in the book store has been very successful-over 3 weeks now and only 1/4 of the books were changed. I think that after I finish moving, I will expand my campaign to give makeovers to the political science sections of as many bookstores on my routine travels (hey I need to get my summer reading materials).:evilgrin: :smoke:

Happy hunting and watch out for the bears.

[Ghost Dog]

60. Morning AnneD. I think your bookshop campaign's Ok.

But I don't think you'd want to do the same in a public library, right?

As regards "precious little quality coming out of China", "seek out American manufactures", I'm not so sure. For example, my local hard-disk filling up, I just invested in a 40Gb external hard disk. From French Co. LaCie (LaCie S.A., 33 Boulevard du Général Martial Valin, 75015 PARIS. [phone]). Design by Porsche Design GmbH (Porsche Lizenz- und Handelsgesellschaft mbH & Co. KG , based in Bietigheim-Bissingen). Components manufactured and whole thing put together in China, Taiwan, Thailand, Malaysia, Korea, etc. My opinion so far: excellent quality and ease of use. My only problems have been concerned with an extra USB 2.0 PCMCIA card (also Asian manufactured, but also Asian design/management company) that required extra time spent on the internet searching for updated drivers...

Then again, on the other hand, I plug the latest 'digital' sounds off my computer into a forty-or-so--year-old Kenwood 'Solid State' amplifier (with matching speakers) Model KA-2002. And I remember thinking at the time: "this is not the same quality as the kind of real 'steam'-valve (those old glass-bulb things?) amplifier" I'd previously been accustomed to.

The bottom line: I guess European (and US) companies and economies can still extract some value out of, indeed, making sure good designs and adecuate quality gets manufactured in, and distributed from, Asia and elsewhere.

(ed: keyboard still sticky).

[UpInArms]

43. 10:00 Existing Home Sales fall 2%

10:00 AM ET 5/25/06 FLA, CALIF., ARIZ. HOUSING MARKETS COOLING: NAR

10:00 AM ET 5/25/06 U.S. APRIL SINGLE-FAMILY HOME SALES DOWN 2% TO 5.92 MILLION

10:00 AM ET 5/25/06 U.S. APRIL MEDIAN HOME SALES PRICE UP 4.2% Y-O-Y TO $223,000

10:00 AM ET 5/25/06 U.S. APRIL EXISTING HOME INVENTORIES UP 5.8% TO 3.38 MILLION

10:00 AM ET 5/25/06 U.S. APRIL EXISTING HOME SALES FALL 2% TO 6.76 MILLION

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BB34C5FCA%2DBA83%2D4E6E%2D8752%2D5D736BFEC912%7D&symbol=

WASHINGTON (MarketWatch) - Sales of existing homes fell 2% in April to a seasonally adjusted annual rate of 6.76 million, the National Association of Realtors said Thursday.

The decline was close to the 6.74 million expected by economists.

Inventories rose by 5.8% to 3.38 million homes for sale, a 6-month supply at the April sales pace. It's the largest supply relative to sales since January 1998.

The median sales price rose 4.2% in the past year to $223,000, the lowest price gain since September 2001.

The housing market peaked in August, said David Lereah, chief economist for the real estate group. "This may be the bottom. It appears May is a little better."

Sales are down 5.7% year-over-year.

...more...

[UpInArms]

45. US newspaper, Net help-wanted ads decline in April to 35

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-25T140020Z_01_NAT002098_RTRIDST_0_ECONOMY-HELPWANTED-URGENT.XML

NEW YORK, May 25 (Reuters) - Help-wanted ads in U.S.
newspapers and on the Internet fell in April, a private
research group said on Thursday.

The Conference Board said its gauge measuring help-wanted
ad volume in the United States was 35 in April, down from 37 in
March, which was revised down from a prior estimate of 38. The
index was 39 in April 2005.

New online job ads fell 6 percent in April from the prior
month to 2.26 million, the research group said.

"The latest data shows that job advertising softened in
April," said Conference Board economist Ken Goldstein, in a
statement discussing the data. "Total employment in April was
only 1.7 percent higher than one year ago."

In the last three months, help-wanted advertising declined
in all nine regions tracked, the research group said.

[ozymandius]

3. Oil prices rebound above $70 a barrel

SINGAPORE - Oil prices rebounded above $70 a barrel Thursday after a sharp decline overnight as traders remained concerned about the approach of the U.S. summer driving and Atlantic hurricane seasons.

Benchmark oil futures had fallen in the previous session after weekly U.S. government data showed rising domestic gasoline supplies and flat demand.

Market participants said the prospect of an active hurricane season — which starts June 1 — is one of many factors encouraging funds to pour cash into commodities.

-cut-

According to the data, U.S. gasoline stocks grew by a larger-than-expected 2.1 million barrels to 208.5 million barrels last week. The report showed that over the past four weeks, gasoline demand averaged 9.24 million barrels per day, just a hair above year-ago levels, suggesting higher pump prices may be having an impact on consumption.

more

[ozymandius]

4. Kazakh pipeline begins delivering oil to China

BEIJING (AFP) - A pipeline from Kazakhstan capable of supplying China with nearly a sixth of its current annual oil imports began its first deliveries, the official Xinhua news agency reported.

The 1,000-kilometre (620-mile) pipeline linking Atasu in the central Asian state of Kazakhstan to northwestern China's Xinjiang region began operations early Thursday morning, Xinhua said.

The 700-million-dollar pipeline has an annual delivery of capacity of 20 million tonnes, opening up an important fresh energy source for China which last year imported 130 million tonnes of oil.

China is the second biggest importer of oil behind the United States and has been scouring the world in recent years for more supplies to meet fast-rising demand that has accompanied the nation's staggering economic growth.

more

[Ghost Dog]

22. This is big news. n/t

[Oversea Visitor]

41. n/t

[TrogL]

109. Dubya wanted that oil

So much for the Afghanistan war.

[ozymandius]

5. Boaters throttle back as gas soars

LANETT, Ala. — Bo and Ima Gravitt have a lifestyle that many would envy: They're retired, and they live half the year aboard their houseboat on pristine West Point Lake here at the Georgia-Alabama border. They usually spend the late spring floating, fishing and partying.

Not this year, though. The high cost of gas has grounded the Gravitts. Asked whether fuel prices affect life here in this fisherman's paradise, Bo Gravitt, 73, answers: "Damn right it does. That's the reason why we're sitting on the bank. Any other time, we'd be out on the water."

-cut-

'Good old boys' hurting

It might be hard for some cash-strapped commuters who have given up movies or dinner out to pay $3 a gallon for gas to feel much sympathy for boaters. But boaters are everywhere — there are about 70 million in the USA and 13 million registered boats.

Soaring gas prices have the biggest impact on owners of small boats and boaters on fixed incomes, says Robbie Nichols, owner of Southern Harbor Resort & Marina on West Point Lake. "The people fishing in the big tournaments, you don't see a drop with these guys," he says. "But you've got some regular good old boys coming and fishing in the smaller club tournaments, and they've had to cut back."

http://www.usatoday.com/news/nation/2006-05-23-gas-boating_x.htm?csp=34

[Ghost Dog]

25. Energy worries dominate Russia-EU summit in Sochi

http://www.afp.com/english/news/stories/060525115218.68p5ea2q.html
25/05/2006 12h07
©AFP - Denis Sinyakov

SOCHI, Russia (AFP) - President Vladimir Putin assured EU leaders that Russia will do everything to ensure stable energy supplies to the West, as a Russia-EU summit got underway in the Black Sea resort of Sochi.

At the start of the meeting, Putin said Russia was taking measures to "strengthen the energy security of the European continent" with the aim of "improving the quality of life of Europeans."

Austria's Chancellor Wolfgang Schussel, currently president of the 25-member European Union, also emphasised the importance of energy cooperation between Moscow and Brussels. "We have more than 40 years of constructive partnership. We want to keep this," he said.

European Commission President Jose Manuel Barroso said energy would be a "very important part" of talks between EU and Russian officials.

/more...

[stop the bleeding]

35. Energy = $$$ - thanks for all of the info guys

you are doing an awesome service

[UpInArms]

48. July Crude @ $70.45 bbl - June NatGas @ $5.96 mln btus

10:13 AM ET 5/25/06 JULY CRUDE CLIMBS 59 CENTS, OR 0.8%, TO $70.45/BRL

10:13 AM ET 5/25/06 JUNE NATURAL GAS NEAR FLAT, DOWN 0.4 CENT AT $5.96/MLN BTUS

[UpInArms]

49. US NatGas Supply up 83 bln cubic feet - June NatGas @ $6.01 mln btus

10:31 AM ET 5/25/06 U.S. NATURAL GAS SUPPLY UP 83 BLN CUBIC FEET: ENERGY DEPT

10:31 AM ET 5/25/06 JUNE NATURAL GAS LAST UP 4.6 CENTS AT $6.01/MLN BTU

[UpInArms]

58. July Crude @ $70.40 bbl - June NatGas @ $5.92 mln btus

11:33 AM ET 5/25/06 JULY CRUDE UP 54 CENTS AT $70.40/BRL AFTER $70.60 HIGH

11:33 AM ET 5/25/06 JUNE NATURAL GAS FALLS 4.4 CENTS TO $5.92/MLN BTUS

[UpInArms]

102. July Crude closes @ $71.32 bbl - June NatGas @ $5.975 mln btus

3:01 PM ET 5/25/06 JULY CRUDE CLOSES AT $71.32/BRL, UP $1.46, OR 2.1%

3:02 PM ET 5/25/06 JUNE NATURAL GAS ENDS AT $5.975/MLN BTUS, UP 1.1 CENTS

[Ghost Dog]

6. Global market adjustments temporary-Japan ex-MOF

http://yahoo.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=urn:newsml:reuters.com:20060525:MTFH54473_2006-05-25_10-13-15_T17146&rpc=44
Thu May 25, 2006 6:13 AM ET

By Tamawa Kadoya

TOKYO, May 25 (Reuters) - Recent adjustments in global markets, such as stock price declines, are temporary and unlikely to have an adverse effect on the economy but fund flows are large and need watching, Japan's former top financial diplomat said on Thursday.

"It is unlikely that recent adjustments will have a large effect on real economic conditions" because the fundamental outlook for global expansion remains intact, Zembei Mizoguchi, former vice finance minister for international affairs, told a small group of reporters.

However, "fund flows are getting larger and an adjustment in one market affects others, so close watch is needed," he said.

The global expansion is continuing into its fourth year, but inflation concerns and uncertainty over the outlook of U.S. interest rates have prompted a sell-off in equities and commodities, with funds shifting to cash and bonds.

On possible capital outflows from emerging markets, Mizoguchi, now president of the Japan Center for International Finance, a think tank, said that emerging Asian markets were more resilient toward external shocks, moving to build up their external reserves and taking steps against inflation.

/more...

[Ghost Dog]

7. SE Asia Stocks-S'pore at 4-mth lows, Thailand down on yr

http://asia.news.yahoo.com/060525/3/2l2d5.html

SINGAPORE, May 25 (Reuters) - Southeast Asian stocks extended losses on Thursday, with Singapore sliding to a four-month low and Thai shares slipping below end-2005 levels on concerns of slower global growth and higher interest rates.

Singapore's Straits Times Index dipped 1.32 percent, led by losses in CapitaLand which fell 4.0 percent.

Malaysian stocks eased 0.41 percent, Philippine stocks slid 1.03 percent, and by 0910 GMT, Thai stocks had dropped 1.36 percent. Indonesia's stock market was closed for a holiday.

Asian stock markets have plunged in the last two weeks as foreign funds pulled out of emerging markets, worried by uncertainty over interest rates in the U.S. and by high commodity prices and their implications for global growth and inflation.

"I have seen some $5 billion funds exit emerging Asia in the last three weeks," said Wong Kok Hoi, chief investment officer of APS Asset Management, which oversees $3 billion worth of funds in Asia Pacific.

Wong, however, said that a lot of money had been invested in the region before the sell-off. He estimated that about $7 billion worth of funds were invested in emerging Asian equities in the month of April alone.

The MSCI's main emerging markets index has slid about 16 percent since hitting a record closing high on May 8.

But despite the sell-down, Asian markets are still attractive to investors, thanks to their strong macroeconomic fundamentals and attractive valuations, Wong said.

"If investors are truly long-term investors, they will ride this out," he said.

In Singapore, shares were weighed down by losses in the Hong Kong and Japan markets, traders said.

"All eyes are now on Hong Kong and Nikkei. Everyone is ready to sell if they fall," a trader with a local bank said, adding that many investors expected stocks of Chinese companies listed in Singapore to track the performance of Hong Kong shares.

/plenty more...

[Ghost Dog]

9. Japanese Stocks Fall; Dollar Down vs. Yen

http://asia.news.yahoo.com/060525/ap/d8hqnr080.html

(AP) Japanese stocks fell Thursday following sharp advances the previous day, with electronics, metals and auto issues leading the decline.

The benchmark Nikkei 225 index fell 213.45 points, or 1.34 percent, to finish at 15,693.75 points on the Tokyo Stock Exchange. The index rose 308.00 points, or 1.97 percent, on Wednesday, rebounding from a three-month low.

The dollar's recent recovery was enticing foreign investors to repatriate any gains make in Tokyo, traders said.

"Japan is getting caught up in the sell-off engulfing Asian markets, and for foreign investors it's a good time to take some chips off the table, seeing as they're still a few percent up on this year in dollar terms," said Trevor Hill, head of client trading and execution at UBS in Tokyo.

Banking and other financial sector stocks in particular were hard hit by Thursday's sell-off, with Resona Holdings Inc. falling 3.33 percent to 319,000 yen ($2,823.01).

Losers also included Mitsubishi Electric Corp., which shed 2.07 percent to 899 yen ($7.96) and Toshiba Corp., which shed 2.46 percent to 715 yen ($6.33). Sumitomo Metal Mining Co. fell 3.11 percent to 1,466 yen ($12.97).
ADVERTISEMENT

Auto issues also fell, with Mazda Motor Corp. shedding 2.42 percent to 685 yen ($6,06), as did technology issues like Kyocera Corp., which posted a 2.87 percent fall to 9,460 yen ($83.72).

The Topix index, which includes all shares on the market's first section, fell 21.30 points, or 1.33 percent, to 1,584.71. The Topix added 26.75 points, or 1.69 percent, on Wednesday.

First-section volume fell to 1.690 billion shares, from Wednesday's 2.036 billion shares. Decliners beat advancers 917 to 697, with 80 issues unchanged.

<snip>

The yield on the 10-year Japanese government bond rose to 1.8600 percent from Wednesday's finish of 1.8200 percent. Its price fell 0.33 to 101.16 points.

/more...

[ozymandius]

11. BoJ pumps liquidity into market to curb rates rise

The Bank of Japan on Thursday injected Y500bn ($4.4bn) into the money market to help curb a sharp rise in overnight rates, in a sign that present monetary policy might be nearing its limit.

The injection, the first since the bank abandoned five years of unorthodox ultra-loose monetary policy in March, pushed the rate of unsecured call money down from 0.08 per cent to about 0.065 per cent.

The bank's current policy is to encourage the overnight call rate - the rate at which banks borrow uncollateralised funds from each other - to stay at "effectively zero per cent".

One economist said 0.08 per cent clearly did not satisfy this commitment, obliging the bank to step in with emergency funds.

more

[Ghost Dog]

15. Wow, a liquidity-withdrawal polical reversal!

(from the above link)

Until March, the BoJ was flooding the market with far more liquidity than the estimated Y7,000bn to Y9,000bn thought necessary to pin overnight rates to zero. When it abandoned its ultra-loose policy, liquidity levels were above Y30,000bn. Since then, the bank has rapidly drained liquidity from the system.

This week, as liquidity fell towards Y12,000bn, overnight rates flickered into life as the balance between supply and demand tilted.

Takehiro Sato, economist at Morgan Stanley, said Thursday's injection was a mechanical response to the spike in the overnight rate and did not carry a "political message" about the likely timing of a policy move. However, he said the rising overnight rate demonstrated a tightness in the call market. The three Japanese mega-banks, having recovered their creditworthiness, were flush with cash, he said, while some smaller foreign banks were struggling to obtain overnight funds. That meant the level of liquidity required to push overnight rates to zero might be higher than previously thought, he said.

Toshihiko Fukui, BoJ governor, last week denied any link between reaching certain liquidity levels and raising interest rates. But markets have speculated that when liquidity falls to levels no longer sufficient to keep overnight rates at zero, the bank will raise its interest rate target to 0.25 per cent.

Minutes of the BoJ's April meeting, the first after the policy change, reveal there was already concern about the effect of cutting liquidity too sharply. One member said there had been "growing speculation among market participants that the zero interest rate policy would be terminated earlier than expected". He said such speculation might mount "if the bank reduced too rapidly".

/more...

So, presumably by international agreement, The (overnight) Zero Interest Rate Policy (ZIRP) is still the highest priority...

[Ghost Dog]

44. Jeezus, these typos, x'd tongues. Donde dije 'polical' digo 'policy' n/t

[Ghost Dog]

21. Turkish bond yields climb, eyes on rates decision

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060525:MTFH54292_2006-05-25_10-03-25_L25511881&rpc=44&search=.XU100&searchtype=symbol&norics=1
Thu May 25, 2006 6:03 AM ET

ISTANBUL, May 25 (Reuters) - Turkish benchmark bond yields rose to a new peak for 2006 on Thursday as investors continued to fret about the country's political and economic outlook and particularly inflation expectations.

The lira, which hit its weakest level against the dollar in two years on Wednesday, eased while shares were firm, finding a measure of stability after three weeks of sharp declines.

Market attention was focused on the meeting of the Central Bank's Monetary Policy Committee and its interest rate decision which will be announced between 5 pm and 7 pm (1400-1600 GMT).

/more...

Note, this could equally have been posted in Europe thread, or in FOREX discussion.

[Ghost Dog]

26. Japan's trade surplus shrinks 31.8 percent in April

http://www.afp.com/english/news/stories/060525032433.ie7h3ef4.html
25/05/2006 04h55
©AFP/File - Yoshikazu Tsuno

TOKYO (AFP) - Japan's trade surplus shrank 31.8 percent in April from a year earlier as oil import costs remained high but brisk exports helped to underpin the economic recovery, the government said.

The trade surplus fell to 646.2 billion yen (5.77 billion dollars) from 947.5 billion a year earlier, the finance ministry said. It was the 16th straight monthly deterioration in the trade balance and more severe than the drop to about 830 billion yen expected by the market. Exports rose 11.2 percent to 6.12 trillion yen while imports jumped 20.2 percent to 5.48 trillion yen. The value of imports was driven up mainly by rising prices of energy and non-ferrous metals, the ministry said.

Japan has to buy most of its oil supply from the Middle East. "The surge in cost of crude oil continued to inflate the overall value of imports," a finance ministry official said.

The trade surplus with the rest of Asia fell 23.3 percent to 478.9 billion yen as the surplus with the United States rose 26.9 percent to 803.2 billion yen.

<snip>

Exports to the United States climbed 14.9 percent in April year-on-year, while shipments to the European Union increased 6.6 percent. Exports to the rest of Asia gained 8.0 percent with shipments to China alone up 21.6 percent.

/more...

[ozymandius]

8. Bourses give up early gains

European bourses gave up early gains on Thursday morning. They had initially recouped some of Wednesday's losses thanks to a late upward turn on Wall Street as US oil slipped below $70 a barrel. But weak US futures eroded sentiment.

-cut-

Volume is low in Frankfurt and Paris due to the Ascension Day holiday.

On Wednesday, European equities continued their volatile run, suffering fresh losses, and pushing the FTSE Eurofirst 300 down 1.4 per cent to 1,284.27.See more on Wednesday's Europe

more

[Ghost Dog]

12. Risk aversion weighs on stocks, dollar

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060525:MTFH53748_2006-05-25_09-33-52_L25792132&symbol=.FTEU3&rpc=44
Thu May 25, 2006 5:33 AM ET

By Lincoln Feast LONDON, May 25 (Reuters) - Oil and metal prices steadied on Thursday but investors remained wary of stocks after a bout of volatility that has pummelled asset prices from recent peaks, while risk aversion trades also weighed on the dollar.

Uncertainty about the outlook for U.S. interest rates and inflation has rattled all financial markets this month, prompting a sell-off in previously high-flying commodities and equities in favour of the safe-havens of cash and bonds.

Tristan Hanson, a strategist at London-based stock broker Cazenove, said it was uncertain whether worries about higher inflation and interest rates were valid concerns or merely an excuse to book profits after a strong run. "I think it's more to do with market psychology than it is a coherent economic explanation of what's going on," Hanson said, noting that bond yields, which would ordinarily rise along with interest rate expectations, have fallen in recent weeks.

European stocks see-sawed around break-even in morning trade, while Asian shares erased gains made on Wednesday and early indications were for a softer open on Wall Street.

At 0917 GMT the FTSEurofirst 300 <.FTEU3> Index was up 0.1 percent to 1,281.5 points, having fallen 1.3 percent in the previous session and almost 9 percent from its five-year high on May 11.

"We now see global equities as being very oversold, but it's likely that we will need to see a period of stabilisation for a few days before we make any sort of sustainable rally," Hanson said.

<snip>

"The market is looking for safe havens in this environment. It's quite good for the dollar, but it's very good for the euro and also very good for the Swiss franc."

The dollar was down about 0.2 percent versus the Swiss franc <CHF=> at 1.2155 francs and down 0.4 percent against the yen at at 112.45 <JPY=>. The euro <EUR=> was 0.3 percent firmer at $1.2790.

News that Russia was investing more of its $71.5 billion stabilisation fund in euros also supported the single currency.

/more single-sentence paragraphs with further detail...

edit to add:

[Ghost Dog]

17. London higher as Tate & Lyle profits sweeten mood

http://news.ft.com/cms/s/590ce122-ebbf-11da-b3e2-0000779e2340.html
By Donna Haddaway
Published: May 25 2006 08:56 | Last updated: May 25 2006 11:17

The FTSE 100 was up 14.5 points, 0.3 per cent at 5,601.8.

The mid-cap FTSE 250 shed 34 points, 0.4 per cent to 9,020.0 led by a fall of 9.4 per cent for London Stock Exchange shares to £10.78. The shares fell to reflect an adjustment to a late fat-finger trade at around £11.80 a share.

/more detail...

[Ghost Dog]

68. European stocks end up but tone remains cautious

http://investing.reuters.co.uk/investing/MarketReportArticle.aspx?type=eurMktRpt&storyID=2006-05-25T154224Z_01_L2525687_RTRIDST_0_MARKETS-EUROPE-STOCKS-URGENT.XML
Thu May 25, 2006 4:42 PM BST

LONDON, May 25 (Reuters) - European stocks made headway on Thursday, clawing back from recent lows as oil producers and miners rose, but worries about interest rates continued to gnaw at investor sentiment.

The pan-European FTSEurofirst 300 index <.FTEU3> closed unofficially up 1.1 percent at 1,298.94 points in quieter-than-usual volumes with parts of Europe closed for the Ascension Day holiday.

The index remains around 8 percent below a May 11 near-five year high of 1,407.5 points.

Around Europe, London's miners-rich FTSE 100 <.FTSE> index added 1.6 percent, as did Paris's CAC 40 <.FCHI>, while Germany's DAX <.GDAXI> gained 2.1 percent.

Among miners, BHP Billiton (BLT.L: Quote, Profile, Research) gained 3 percent while among oil producers, Total (TOTF.PA: Quote, Profile, Research) added 2.1 percent and BP (BP.L: Quote, Profile, Research) traded up 2.3 percent as oil prices held slightly above $70 a barrel.

[ozymandius]

10. Commodities steady after recent choppy trading

Commodities were steadier on Thursday with the market looking for direction as the recent sharp increase in volatility and lower liquidity has forced many investors to withdraw until more normal trading conditions return.

Simon Heale, chief executive of the London Metal Exchange, defended the exchange against claims that the market had become virtually untradeable because of recent unprecendented volatility.

"It is not the role of the exchange to decide what the price should be or to speculate or forecast what it should be," said Mr Heale at a plastics seminar in London: "We cannot protect participants from losses."

more

[UpInArms]

40. June Gold @ $644.50 oz - July Silver @ $12.48 oz - July Copper @ $3.66 lb

9:43 AM ET 5/25/06 JUNE GOLD UP $7, OR 1.1%, AT $644.50/OZ IN MORNING TRADE

9:43 AM ET 5/25/06 JULY SILVER FALLS 3.5 CENTS, OR 0.3%, TO $12.48/OZ

9:43 AM ET 5/25/06 JULY COPPER GAINS 2.1 CENTS, OR 0.6%, TO $3.66/LB

[Ghost Dog]

67. Where are the corrective limits for gold?

http://www.kitco.com/ind/Wiegand/may252006.html
By Roger Wiegand
May 25, 2006

www.tradertracks.com

“The only way to discover the limits of the possible is to
go beyond them into the impossible.” –Arthur C. Clark

<snip>

It's unfortunate, but sellers of beaten down stocks in the main indexes are selling everything including tossing out premium precious metals stocks. We forecast this would happen months ago as this is a herd instinct result when major markets go sour. PM stocks remain excellent long term buy and hold investments as well as good trading stocks in some cases. Today, however, stock owners see not only a top in USA stock markets but hear of crashing exchanges in Saudi Arabia, Brazil and Russia with several in Asia. Majority reaction says call your broker and tell him or her to dump everything.

In our opinion, we expect gold the metal to have a shallower selling posture and a faster recovery in preparation for June’s new beginning. This happens as gold is viewed as (1) a jewelry commodity (2) a safe and secure safe haven investment (3) a more secure proxy for holding cash savings (4) and has the holding and staying power premium far and above any paper money from any nation. (5) Sadly, gold is viewed as the arch enemy of fiat paper money by most national governments and they have done their best in a mutual, global conspiracy to suppress the price of gold. In our view, that battle is over and gold is the clear victor. It’s not easy to report the news when you lose.

In contrast with stocks, pure gold does not have the potential to melt down in value like anybody’s stock. The beauty of precious metals stocks for traders is the great upside leverage when gold the metal is in a large rally. This is our recent experience driving gold, silver, base metals and their stocks to new higher prices.

Recent Behavior of Precious Metals Markets

Precious metals markets are in transition trying to settle down and find new footing; a base that will hold after the current partial and incomplete correction. The fundamentals have not changed in these markets and the primary long trend remains up. Gold and silver are in a longer term three phase bull trend with phase one being just completed with a following correction still in progress. It is important traders understand precious metals are commodities but do not behave like base metal commodities which have also enjoyed this rally run. As commerce slows, the base metals will slow with it while gold and silver divorce their trading companionship with the base metals and will rocket rally.

/more and some fine charts...

[UpInArms]

91. June Gold closes @ $648.50 - July Silver @ $12.60 - July Copper @ $3.7075

1:48 PM ET 5/25/06 JUNE GOLD CLIMBS $11, OR 1.7%, TO CLOSE AT $648.50/OZ

1:40 PM ET 5/25/06 JULY SILVER UP 8.5 CENTS, OR 0.7%, TO CLOSE AT $12.60/OZ

1:37 PM ET 5/25/06 JULY COPPER UP 6.85 CENTS, OR 1.9%, TO END AT $3.7075/LB

[ozymandius]

13. NYSE caught in sector sell-off

The share price of the NYSE Group, which controls the New York Stock Exchange, on Wednesday slid below the price at which it went public in March, as the global sell-off of exchange stocks gathered pace.

The Dow Jones Global Exchanges Index, the best broad indicator of the sector internationally, reached 595.69 on May 11, a rally of 147 per cent since January of 2005. By the close on Tuesday, it had dropped 13 per cent to 518.84, and there was continued heavy selling on Wednesday.

US exchanges, which have seen the greatest activity on the back of bullish hopes for increases in trading revenues and for profits from consolidation, have seen the worst setbacks.

The NYSE, which became a publicly traded company after completing its merger with the already public Archipelago Holdings in early March, has suffered a particularly sharp reverse. It fell 3 per cent to $58.20 in early trading on Wednesday.

more

[ozymandius]

14. Vonage slips 12.7% in its market debut

NEW YORK -- Internet telephone service provider Vonage Holdings Corp. yesterday rang in the steepest decline of any market debut this year as its shares slid nearly 13 per cent on concern about stiff competition.

The shares fell $2.15 (U.S.) or 12.7 per cent to close at $14.85 on the New York Stock Exchange after falling as low as $14.50.

Vonage has acknowledged it may never be profitable and is viewed with skepticism by many analysts, who cite the growing competition it faces in providing voice over Internet protocol (VoIP) services.

"It's very hard to see what their competitive advantage is," said Richard Greenfield, an analyst at Pali Research. "We basically believed, pre-IPO, that the price should be $10 or less."

http://www.theglobeandmail.com/servlet/story/LAC.20060525.IBVON25/TPStory/Business

[ozymandius]

16. `Buy' Advice Drives Up GM Stock

General Motors Corp.'s stock rose 8% on Wednesday after a Merrill Lynch analyst issued a strong "buy" recommendation, citing a comment from United Auto Workers officials that 12,400 union workers had accepted buyouts from the beleaguered automaker.

Investors were so pleased with the news, after the report by Merrill Lynch auto industry analyst John Murphy, that GM's shares gained $2.03 in heavy trading to close at $26.51.

GM announced buyouts and early-retirement incentives in March that were worth as much as $114,000 to 113,000 union workers in a bid to trim its payroll and future pension and healthcare costs.

-cut-

GM never announced the number of employees it would like to accept the buyout offers, but executives have said they hope the plan will get the carmaker closer to its goal of a 30,000-job reduction in North America.

more

[UpInArms]

52. More than 20,000 GM workers accept buyouts-report

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-25T144151Z_01_N25288495_RTRIDST_0_AUTOS-GM-BUYOUTS-UPDATE-1.XML

DETROIT, May 25 (Reuters) - More than 20,000 blue-collar workers at General Motors Corp. (GM.N: Quote, Profile, Research) have accepted buyout offers, surpassing the automaker's internal target with a month to go before the deadline, the Detroit News reported on Thursday, citing people familiar with the situation.

GM spokeswoman Katie McBride, while declining to comment on specific buyout numbers, said: "We are pleased with the acceptance rate so far."

The automaker, which made the offers to all 113,000 of its U.S. hourly workers, had expected 20,000 employees to come forward by the June 23 deadline, the sources told the newspaper.

GM will continue to offer buyouts to workers who sign up by the deadline as the the automaker plans to take as many buyouts as it can get, the sources said.

<snip>

GM is in the midst of a comprehensive restructuring, which includes closing a dozen plants and laying off 30,000 workers, to return its auto operations to profit.

...more...

[Ghost Dog]

18. FOREX-Dollar falls amid risk aversion, China bank comments

http://yahoo.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=urn:newsml:reuters.com:20060525:MTFH54575_2006-05-25_10-18-18_L25726075&rpc=44
Thu May 25, 2006 6:18 AM ET
By Veronica Brown

LONDON, May 25 (Reuters) - The dollar fell broadly on Thursday, with growing risk aversion supporting safe-haven currencies while a call for China to rein in property lending created further drag on the greenback. The euro was also supported by news that Russia has decided to invest 45 percent of its $71.5 billion stabilisation fund in euros.

<snip>

The dollar had been bolstered in the previous session by upbeat U.S. April housing data that tilted expectations towards the Federal Reserve raising rates in June. But April durable goods orders, also published on Wednesday, were below forecast.

China's chief bank regulator Liu Mingkang said in comments carried by the China Banking Regulatory Commission on its Web site (www.cbrc.gov.cn), that lending curbs were needed to reduce macro economic risks and for the health of the banking sector.

Analysts said the comments were a possible precursor to China raising interest rates. "The financial market doesn't work very well in China so they often have to do administrative measures like warning banks not to lend too much," Tony Norfield, head of foreign exchange research at ABN AMRO, said. "There's every reason why there should be an interest rate hike in China. It may not crimp growth too much, but should help reduce the attractiveness of the dollar," he added.

By 0947 GMT, the dollar was down almost 0.4 percent on the day against the yen at 112.51 <JPY=>, off Wednesday's two-week high of 112.97. Against the Swiss franc, it was down around 0.2 percent at 1.2156 francs <CHF=>, whilst the euro was a quarter perent stronger at $1.2781 <EUR=>.

/more...

[Ghost Dog]

19. Yuan bounces off 8-week low, narrow trade seen

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060525:MTFH54615_2006-05-25_10-20-57_SHA252477&symbol=3988.HK&rpc=44
Thu May 25, 2006 6:20 AM ET

SHANGHAI, May 25 (Reuters) - China's yuan closed moderately higher against the dollar on Thursday, bouncing back from the weakest level in eight weeks hit a day earlier, but dealers said trade was directionless and the yuan was likely to move narrowly.

The yuan <CNY=CFXS> finished at an intraday high of 8.0240 to the dollar, versus Wednesday's close of 8.0265, which was its lowest closing level since March 30.

"The yuan has hit the bottom according to our technical charts," said a Shanghai-based dealer at a foreign bank. "But its movements can no longer be predicted technically due to its general weakening for nearly two weeks, contrary to market expectations."

Dealers said Thursday's bounce was sparked by late buying in the yuan due to a slight global weakening of the dollar.

The dollar edged lower against most major currencies on Thursday, with trade volumes seen relatively light as much of Europe is closed for the Ascension Day holiday.

/more...

[Ghost Dog]

20. Daily Chinese yuan and money market update

http://yahoo.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=uri:urn:newsml:reuters.com:20060525:MTFH54660_2006-05-25_10-23-42_YUAN&pageNumber=0&summit=
Thu May 25, 2006 6:23 AM ET

SHANGHAI, May 25 (Reuters) - Following is a summary of market
activity and news articles on Thursday relating to the yuan and
China's money market.

DLR/CNY EUR/CNY YEN/CNY* 1-YR NDF** 1-YR VOLS**
Close 8.0240 10.2388 n/a 7.7138 3.60/4.20 pct
Mid-point 8.0268 10.2448 7.1179***
Pvs close 8.0265 10.0366 7.1601 7.6890 3.50/4.10 pct

Sources: <CNYX=CFXS>, <CNYNDF=>, <CNYVOL>

* Yuan per 100 yen.

** Offshore NDF/VOLS figures as at 1015 GMT, compared with levels at around the same time in the previous session.

*** The mid-point is a benchmark set by the central bank. The yuan may rise or fall 0.3 percent from its mid-point versus the dollar each day and 3.0 percent for non-dollar currencies.

-- One-year onshore yuan forwards were quoted at 7.754 against the dollar, the China Foreign Exchange Trade System said on its Web site (www.chinamoney.com.cn), anticipating that the yuan would be 3.5 percent stronger in a year's time. Three deals in other durations were done.

<snip>

OPEN MARKET ACTIVITY

** China c.bank injects money as IPOs resume

SHANGHAI - China's central bank injected a net 10 billion yuan ($1.25 billion) into the banking system this week, in contrast to a net drain last week, suggesting Beijing wants to keep liquidity ample as it resumes initial public offers in domestic stock markets.

/more data...

Edit: A little formatting. Pity no tables in DU.

[Ghost Dog]

23. (UK) Employees to work until 68

http://today.reuters.co.uk/news/newsArticle.aspx?type=topNews&storyID=2006-05-25T115627Z_01_LAL001793_RTRUKOC_0_UK-BRITAIN-PENSIONS-DETAIL.xml
Thu May 25, 2006 12:56 PM BST

LONDON (Reuters) - The government unveiled plans on Thursday to make Britons work until they are 68 and encouraging them to save more in an effort to defuse a future pensions time bomb.

In its proposals, the government endorsed an experts' plan to automatically enrol workers into a national pension savings scheme to help close an estimated 57 billion pound savings gap but said the details needed more study.

/more...

[UpInArms]

24. daily dollar watch

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

Last trade 84.96 Change -0.15 (-0.18%)

Expectations for Strong GDP Tempts Dollar Bulls to Shrug Off Weak Durable Goods

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Expectations_for_Strong_GDP_Tempts_1148506715541.html

The US dollar is stronger today but the move has been primarily based upon the retracement in commodity prices rather than meaningfully strong US data. Gold prices experienced its biggest drop since August of 1993 while oil prices are hovering back around $70 a barrel. New home sales came in better than expected, rising to 1.198 million in April, but it should not go unnoticed that home sales were revised down quite significantly the previous month as well, offsetting most of the April rise. Existing home sales due for release tomorrow is not expected to be as pretty as homeowners are less flexible in giving discounts and upgrades like home builders can offer. Overall, the report indicates that so far we have been seeing a soft landing in the housing market but the path is still downwards with inventories rising. MBA mortgage applications fell 6 percent last week after rising 4.6 percent the previous week. The question is whether this will have an impact on consumer spending. Meanwhile durable goods were very disappointing, falling by a whopping 4.8 percent last month against expectations for only a modest 0.5 percent fall. The less volatile ex transportation indicator also fell 1.1 percent, against expectations for a 0.5 percent rise. This is the biggest decline in 10 months and suggests that second quarter growth could be weaker than what we have seen in the first quarter. Tomorrow we are expecting the first quarter GDP report and the market is reaching very high with expectations set at 5.8 percent growth for the first three months of the year. With the market able to shrug off the extremely bad durable goods number and focus primarily on the good headline new home sales figure, sentiment for the time being seems skewed towards more dollar recovery. After such a deep sell-off over the past few weeks, we would not be surprised to see a retracement, but it should not be forgotten that the pressures on the dollar still exist and are growing by the day. On a side note, the large Bank of China IPO on the HK stock exchange illustrates how protectionism in the US is hurting the US dollar. In the past, rarely have IPOs this size been down outside of the NYSE. The listing on the HK exchange and the desire of funds to participate will send more capital to the East and keep less here in the US.

...more...

[UpInArms]

33. Dollar slips after weaker Q1 GDP

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFA50D36F%2DA339%2D43FB%2DAE43%2D3166D5C24094%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- The dollar edged lower versus the euro and yen early Thursday in the wake of a weaker-than-expected U.S. first-quarter gross domestic product reading. The U.S. economy grew at a 5.3% annual rate in the first quarter, faster than the 4.8% estimated a month ago, the Commerce Department said. Economists were predicting a revision to about 5.8%. The inflation picture was unchanged. The core personal consumption expenditure price index rose 2.0%, unrevised from the initial estimate. Separately, first time claims for unemployment benefits fell to 329,000 in the week ending May 20. Economists were forecasting claims to fall to 319,000. The euro rose 0.2% to $1.2791, while the dollar was down 0.7% at 111.92 yen.

[54anickel]

27. This time, inverted yield curve may signal US slump

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2006-05-24T195507Z_01_N24300976_RTRUKOC_0_US-MARKETS-BONDS-YIELDS.xml

NEW YORK (Reuters) - The inversion of the Treasury yield curve earlier this year, dismissed by many market players as an anomaly, may soon prove to have been a preamble to a deeper, sustained dip in yields on long-maturity debt below their shorter-dated counterparts.

And this time around, against the backdrop of a weakening housing market and the Federal Reserve's inflation-fighting interest-rate hikes, analysts warn that such an inversion could be a harbinger of economic slowdown -- and perhaps even recession.

"If the curve reinverts, it will be because the Fed will be more inclined to control inflation and allow a little slackening of GDP growth," said Jane Caron, chief economic strategist at Dwight Asset Management, in Burlington, Vermont.

snip>

Many market observers are skeptical that the wafer-thin curve flip late last year, followed by a shallow inversion in February and March, pointed to an economic slump.

snip>

Historically, an inverted yield curve has signaled a potential recession in the ensuing six- to 12 months.

"All recessions have been presaged by an inverted curve, but not all inverted curves have resulted in a recession," Ader noted.

more...

[UpInArms]

38. US Treasuries narrowly mixed after revised Q1 GDP

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-25T133737Z_01_N25336423_RTRIDST_0_MARKETS-BONDS-UPDATE-1.XML

NEW YORK, May 25 (Reuters) - U.S. Treasury debt prices were narrowly mixed on Thursday after a reading of first quarter economic growth came in below estimates but failed to significantly alter expectations for Federal Reserve interest rate policy.

The revised reading of first-quarter gross domestic product was lower than forecasts, but the 5.3 percent annual rate still represented the fastest growth in 2-1/2 years. For details see .

Within the preliminary GDP figures, the Fed's favorite measure of inflation -- the year-on-year personal consumption expenditures index, excluding food and energy prices -- was unchanged from an initial first quarter reading of an increase of 1.9 percent. The Fed's presumed comfort level for core inflation is 1-2 percent.

The shorter end of the Treasury debt market, which is more susceptible to Fed interest rates changes, received a slight bid as investors took the below-forecast reading on first quarter growth as a signal the central bank may pause in raising rates.

...more...

[UpInArms]

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

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-25T133313Z_01_N25343243_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, May 25 (Reuters) - The Federal Reserve on Thursday said that it was adding temporary reserves to the banking system through overnight system repurchase agreements.

Fed funds were trading at 5 percent, the Fed's target for the benchmark overnight lending rate, at the time of the operations.

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

[UpInArms]

56. U.S. Treasury to sell $29 bln bills on Tuesday (Fuzzy Math Application)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-25T151109Z_01_WAT005433_RTRIDST_0_ECONOMY-BILLS-URGENT.XML

WASHINGTON, May 25 (Reuters) - The U.S. Treasury Department said on Thursday it will sell $15 billion of three-month bills and $14 billion of six-month bills on Tuesday, May 30.

The bills will be issued on Thursday, June 1.

Proceeds from the sale will be used to refund an estimated $37 billion of publicly held 13- and 26-week bills maturing June 1 and to pay down about $8 billion of debt.

Also maturing is an estimated $8 billion of publicly held 4-week Treasury bills, the disposition of which will be announced on May 30.

...more...

Can anyone tell me how $29 billion refunds $37 Billion and pays down $8 billion in debt?

[UpInArms]

82. 5-yr Treasury Auction has Dismal Results

1:03 PM ET 5/25/06 5-YR NOTE AUCTION HAS 2.02 BID-TO-COVER RATIO

1:04 PM ET 5/25/06 5-YR NOTE AUCTION HAS LOW 22.1% INDIRECT BID

1:02 PM ET 5/25/06 5-YR NOTE AUCTION PRODUCES HIGH YIELD 4.945%

1:03 PM ET 5/25/06 5-YR NOTE AUCTION PRODUCES MEDIAN YIELD 4.918%

[UpInArms]

100. Bonds pushed lower after weak 5-year note auction

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B7B7A5BA6%2DEA5A%2D4955%2D8C98%2D0DE33B94110C%7D&symbol=

NEW YORK (MarketWatch) - Long-term Treasury prices were lower Thursday afternoon, sending yields higher, after an auction of 5-year notes received a lackluster response, reviving concerns that foreigners are backing away form U.S. assets.

Earlier there was limited response to data showing a milder-than-expected upward revision to first-quarter gross domestic product and a plunge in weekly initial jobless claims linked to a one-off event.

Both reports were distorted by exceptional events, making it difficult to gauge their significance for the economy going forward.

<snip>

Prices were mildly higher in morning trade, but weakened after an afternoon Treasury Department auction of $22 billion in new 5-year notes produced a somewhat low 22.1% indirect bid.

The indirect bid is carefully watched because it includes foreign central banks and investors are concerned that foreign institutions are diversifying away from Treasurys due to dollar weakness.

The bid-to-cover - bids rendered to bids accepted - ratio was 2.02, indicating fairly weak overall demand.

...more...

[Ghost Dog]

104. Interesting. Plenty of "lacklustre" responses, recently.

"lackluster response, reviving concerns that foreigners are backing away form U.S. assets"

W·ait a minute, I feel a literary quote coming on:

All That is Gold Does Not Glitter
by J R R Tolkien
1892-1973

All that is gold does not glitter,
Not all those who wander are lost;
The old that is strong does not wither,
Deep roots are not reached by the frost.
From the ashes a fire shall be woken,
A light from the shadows shall spring;
Renewed shall be blade that was broken,
The crownless again shall be king.

[AnneD]

105. I'll see your Tolkien...

and raise you a Robert Frost.

Robert Frost
From Simran Khurana,

Nothing Gold Can Stay

Nature's first green is gold,
Her hardest hue to hold.
Her early leaf's a flower;
But only so an hour.
Then leaf subsides to leaf.
So Eden sank to grief,
So dawn goes down to day.
Nothing gold can stay.

:smoke:

[Ghost Dog]

120. Excellent. It's late now. Maybe I''ll raise you

(though I'm not sure you've raised me, in this game (but, We'd miss you, playing - I'm listening to some Shakti right now)) tomorrow.

Hummm. Let's see. Some Walt Whitman, or some Damiel Hammet, perhaps?

[Ghost Dog]

121. But, meanwhile, this:

http://eliotswasteland.tripod.com/

April is the cruelest month, breeding
Lilacs out of the dead land, mixing
Memory and desire, stirring
Dull roots with spring rain.
Winter kept us warm, covering
Earth in forgetful snow, feeding
A little life with dried tubers.
Summer surprised us, coming over the Starnbergersee
With a shower of rain; we stopped in the colonnade,
And went on in sunlight, into the Hofgarten,
And drank coffee, and talked for an hour.
Bin gar keine Russin, stamm' aus Litauen, echt deutsch.
And when we were children, staying at the arch-duke's,
My cousin's, he took me out on a sled,
And I was frightened. He said, Marie,
Marie, hold on tight. And down we went.
In the mountains, there you feel free.
I read, much of the night, and go south in the winter.
What are the roots that clutch, what branches grow
Out of this stony rubbish?Son of man,
You cannot say, or guess, for you know only
A heap of broken images, where the sun beats,
And the dead tree gives no shelter, the cricket no relief,
And the dry stone no sound of water. Only
There is shadow under this red rock,
(Come in under the shadow of this red rock),
And I will show you something different from either
Your shadow at morning striding behind you
Or your shadow at evening rising to meet you;
I will show you fear in a handful of dust.

/more...

[UpInArms]

28. Dell says India plant to be operational by year end

http://today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-05-25T104306Z_01_DEL41878_RTRUKOC_0_US-INDIA-DELL.xml&src=rss

NEW DELHI (Reuters) - Dell Inc. (DELL.O: Quote, Profile, Research) expects its proposed Indian plant to begin production by end-2006 and help the world's largest personal computer maker to win share in a booming market by cutting delivery time.

"We would like to have this manufacturing facility up and running within this year," Paul-Henri Ferrand, Dell's vice president for South Asia, told reporters on Thursday. He did not say where the plant would be set up or how much Dell will invest.

"Local manufacturing will enable us to have the same supply and delivery chains as we have in many other markets."

Texas-based Dell has a 5 percent share of the Indian market, which is estimated at 4.6 million units a year and is growing nearly 30 percent annually.

<snip>

India will be the seventh location where Dell has a plant. It has two manufacturing sites in China and one in Malaysia in the region, where demand for computer hardware is soaring due to relatively lower penetration rates compared with western markets.

...more...

[UpInArms]

29. Lenovo reports 85 pct. drop in net profit

http://news.yahoo.com/s/ap/20060525/ap_on_bi_ge/earns_hong_kong_lenovo

HONG KONG - China's Lenovo Group Ltd. said Thursday its net profit fell 85 percent in the company's first fiscal year since it bought IBM's personal computer business.

Lenovo also reported a fiscal fourth quarter net loss of HK$903 million — compared to a net profit of HK$166 million a year earlier. The company blamed the loss on restructuring charges and seasonal factors.

In the three months ended March, the Hong Kong-listed company's revenue was HK$24.4 billion ($3.14 billion), up fivefold from the HK$4.7 billion it reported for the same period last year.

Lenovo said that PC shipments to China were up 31 percent in the fourth quarter, but U.S. shipments were flat and they declined by 5 percent in the Asia-Pacific region — excluding China. Shipments were also down 3 percent in Europe, the Middle East and Africa, the firm said.

For the year ended March 31, Lenovo's net profit fell to HK$173.24 million ($22.33 million) — lower than analysts expected — from HK$1.12 billion in the previous fiscal year.

...more...

[UpInArms]

34. pre-opening blather

09:15 am : S&P futures vs fair value: +8.1. Nasdaq futures vs fair value: +11.3.

09:00 am : S&P futures vs fair value: +7.7. Nasdaq futures vs fair value: +10.0. Stage remains set for the cash market to extend yesterday's gains as futures indications remain comfortably above fair value. With the market still extremely sensitive to economic data, some upbeat news on the economy without sparking inflation is helping undermine the recent exaggerated fears that economic growth is slowing sharply.

08:35 am : S&P futures vs fair value: +6.2. Nasdaq futures vs fair value: +7.0. Still shaping up to be a higher open for equities as economic data do little to alter the modestly bullish disposition. As expected, Q1 GDP was adjusted up to 5.3% (consensus 5.8%) from 4.8%, due in part by a lower trade deficit, while the chain deflator – a key inflation measure – held steady at 3.3%. Initial claims fell 40K to 329K (consensus 318K). Bonds, which were down slightly ahead of the report, have also held relatively steady, as the 10-yr note is down 2 ticks to yield 5.04%.

08:00 am : S&P futures vs fair value: +4.7. Nasdaq futures vs fair value: +5.5. Futures versus fair value suggest that yesterday's wave of late-day buying will carry over into this morning, opening the indices on an upbeat note. However, since there are no specific reasons behind the positive bias other than a debatable sense that stocks are oversold on a near-term basis, early gains could be challenged by another batch of economic data. A revision to Q1 GDP and weekly initial claims will be out at 8:30 ET while existing home sales will be released at 10:00 ET.

[stop the bleeding]

36. thank you - let the games begin! n/t

[UpInArms]

37. 9:36 EST All is Well in the Land of LaLa

Dow 11,161.43 +44.11 (+0.40%)
Nasdaq 2,184.87 +15.70 (+0.72%)
S&P 500 1,266.01 +7.44 (+0.59%)
10-Yr Bond 5.040 +0.06 (+0.12%)

NYSE Volume 77,012,000
Nasdaq Volume 98,464,000

[RUMMYisFROSTED]

42. *twinkle*

[UpInArms]

46. 10:10 EST numbers and blather

(love those faeries!)

Dow 11,154.54 +37.22 (+0.33%)
Nasdaq 2,182.68 +13.51 (+0.62%)
S&P 500 1,265.07 +6.50 (+0.52%)
10-Yr Bond 5.040 +0.06 (+0.12%)

NYSE Volume 361,721,000
Nasdaq Volume 345,530,000

10:00 am : Major averages continue to sport broad-based gains as all 10 economic sectors are in positive territory. Energy is pacing the way higher as oil prices pare some of yesterday's 2.7% sell-off and are back above $70 a barrel. Also rebounding at the expense of a pullback in the dollar are gold and copper, which has lifted Materials more than 1.0% as well. Providing even more influential leadership are Financial, amid confirmation of a $10 bln merger between Regions Financial (RF 36.16 +0.63) and AmSouth Bancorp (ASO 29.30 +0.40), and Technology, following reports of a multi-year partnership between Yahoo (YHOO 33.04 +1.25) and eBay (EBAY 32.64 +2.44). DJ30 +41.30 DOT +0.9% NASDAQ +17.32 SP500 +7.90 XOI +2.0% NASDAQ Dec/Adv/Vol 544/1877/264 mln NYSE Dec/Adv/Vol 364/1596/190 mln

09:40 am : Strong follow-through seen in stocks as encouraging GDP data eases recent concerns about slowing economic growth. Earlier, the Commerce Dept. showed that the economy picked up steam in Q1, but didn't grow too fast to ruffle inflation hawks' feathers. First quarter real GDP was upwardly revised from 4.8% to show a large 5.3% annual rate of growth, below economists' larger forecasts of 5.8% growth but nonetheless confirmed that economic growth remains solid. The accompanying chain deflator holding steady at 3.3% was also reassuring since it suggests the economy is growing enough to sustain respectable profit growth while keeping inflation under control. An upward revision in the closely watched inflation indicator might have caused a negative reaction in stocks and exacerbated an already cautious tone.DJ30 +38.02 NASDAQ +14.89 SP500 +6.80 NASDAQ Vol 122 mln NYSE Vol 76 mln

[UpInArms]

47. U.S. to repeal long-distance phone tax (in effect since 1898) Huh?

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-25T140450Z_01_WAT005650_RTRIDST_0_ECONOMY-TELECOMS-TAX-URGENT.XML

WASHINGTON, May 25 (Reuters) - The U.S. Treasury Department on Thursday conceded defeat in a legal dispute over the federal excise tax on long-distance telephone service and said the Internal Revenue Service will refund tax paid on the service over the past three years.

In a statement, U.S. Treasury Secretary John Snow also urged Congress to repeal the excise tax on local telephone service.

The Justice Department will no longer pursue litigation on the long-distance issue, the statement said.

The Treasury Department said taxpayers can claim a refund on their 2006 returns for the long-distance tax, which was established in 1898 as a luxury tax on wealthy Americans who owned telephones.

According to a Wall Street Journal report, the decision will lead to billion of dollars in refunds to U.S. consumers and businesses who have paid it, with the impact of the refunds and lost revenue over the next five years amounting to some $60 billion. The Treasury statement did not cite a figure.

Now how in the world is that going to work????

[stop the bleeding]

51. Charts are having a hard time finding a direction

it looks like things would like to go up - but who knows at this point

[UpInArms]

53. 11:03 EST numbers and blather

Dow 11,149.26 +31.94 (+0.29%)
Nasdaq 2,176.89 +7.72 (+0.36%)
S&P 500 1,263.76 +5.19 (+0.41%)
10-Yr Bond 5.038 +0.04 (+0.08%)

NYSE Volume 701,842,000
Nasdaq Volume 638,832,000

11:00 am : Little changed since the last update as the major averages settle into a relatively tight trading range now that all of today's economic data have been released. Meanwhile, investors are digesting the long-awaited debut of MasterCard (MA 43.50 +4.50), the biggest IPO in two years. In contrast to yesterday's lackluster IPO from Vonage Holdings (VG 13.05 -1.80), which continues to sell off, shares of MA are up more than 11%. DJ30 +37.52 NASDAQ +8.72 SP500 +5.57 NASDAQ Dec/Adv/Vol 908/1807/610 mln NYSE Dec/Adv/Vol 800/2169/490 mln

10:30 am : Equities are still on the offensive but a recent reversal in semiconductor has pushed the Nasdaq to session lows. Separately, sales of existing homes fell 2.3% in April to an adjusted annual rate of 6.76 mln units but relatively in line with economists' forecasts. Even though data are very much consistent with expectations of a slowing housing market, the report follows yesterday's unexpected rise in new home sales, which offered some relief that housing isn't about to roll over. To wit, the PHLX Housing Sector index is still posting a modest gain despite a profit warning from Ryland (RYL 51.87 -0.67). DJ30 +37.06 NASDAQ +7.54 SOX -0.7% SP500 +5.34 NASDAQ Dec/Adv/Vol 815/1846/466 mln NYSE Dec/Adv/Vol 678/2208/368 mln

[UpInArms]

54. ENRON JURY HAS REACHED A VERDICT -- CNBC - No Idea what that verdict is (?

11:07 AM ET 5/25/06 ENRON JURY HAS REACHED A VERDICT -- CNBC

[UpInArms]

55. Enron Trial (Lay/Skilling) Verdict to be released at 12 noon EST

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC85739D1%2DF40A%2D4347%2D81A0%2D61E1116293C1%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The jury in the fraud and conspiracy case against former Enron chiefs Kenneth Lay and Jeffrey Skilling has reached a verdict, CNBC reported Thursday. The jury is reportedly set to read the verdict at 12 noon ET.

[carolinalady]

62. Skilling guilty 4 securities charges guilty Lay all six counts

guilty

[UpInArms]

66. Lay GUILTY of ALL 6 Counts!

12:05 PM ET 5/25/06 ENRON JURY FINDS LAY GUILTY OF ALL 6 COUNTS: CNBC

:woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce::woohoo::bounce::bounce:

[UpInArms]

97. SEC task force says Lay could have saved Enron

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B2447E329%2D933B%2D43FE%2D90BB%2D0837228DB42B%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) - The Securites and Exchange Commission task force assigned to the Enron case said company founder and former Chief Executive Ken Lay had a golden opportunity to save the Houston energy trader, but he chose instead to put his own interests ahead of those of Enron's investors and employees. The jury conviction of Lay and Jeffrey Skilling, who also served as the company's CEO, proves that CEOs can't hide behind accountants or lawyers, task force member John Hueston said.

And just where was the SEC when it came to Enron -

sleeping soundly.

Now they are run by the GOP free market close your eyes and give the corporations everything Cox.

Still, sleeping soundly.

[UpInArms]

77. Sentencing is Set for September 11 (911 anniversary)

12:41 PM ET 5/25/06 SENTENCING IN ENRON TRIAL SET FOR SEPT. 11: CNBC

[Ghost Dog]

85. Hope that means he'll be prevented from leaving the country

in the meantime...

[UpInArms]

83. Lay, Skilling should go to prison, watchdogs say

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCFF5B2BE%2D64F3%2D41A2%2DA088%2DE882338F4D39%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- Convicted Enron executives Kenneth Lay and Jeffery Skilling should be sent to prison, corporate watchdogs said Thursday. "I'm very happy with the verdict," said Nell Minow, co-founder of the Corporate Library, after a jury found Lay and Skilling guilty on multiple counts of fraud and conspiracy. "I want to see them go to jail. I don't want a community service thing," Minow said. Ann Yerger, executive director of the Council of Institutional Investors, agreed that there "should be some jail time." Tom Lehner of the Business Roundtable said the Enron case proved "the process worked." He said those who don't respect good corporate governance "should pay a heavy price."

[UpInArms]

63. Skilling GUILTY of Conspiracy!

12:02 PM ET 5/25/06
ENRON JURY FINDS SKILLING GUILTY OF CONSPIRACY: CNBC

[UpInArms]

64. Lay GUILTY of 2 Wire Fraud Counts!

12:04 PM ET 5/25/06 ENRON JURY FINDS LAY GUILTY OF 2 WIRE FRAUD COUNTS :CNBC

[stop the bleeding]

65. So how will the market react to this? n/t

[UpInArms]

70. Jury: Enron CEOs Lay, Skilling found guilty of fraud (w/link)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B7FEA1FC5%2DBF30%2D4EA9%2DA3FB%2D0132E319ECCD%7D&dist=newsfinder&symbol=&siteid=mktw

HOUSTON (MarketWatch)-- A jury on Thursday found Enron founder and former CEO Kenneth Lay guilty on all six counts of fraud and conspiracy charges while former CEO Jeffrey Skilling was found guilty on all securities fraud counts but acquitted of insider trading charges.

12:09 PM ET 5/25/06 ENRON JURY: SKILLING GUILTY OF 2 FALSE STATEMENT CHRGS: CNBC

12:07 PM ET 5/25/06 ENRON JURY FINDS SKILLING GUILTY OF 18 CHARGES: CNBC

12:08 PM ET 5/25/06 ENRON JURY FINDS SKILLING NOT GUILTY OF INSIDER TRADING:CNBC

12:05 PM ET 5/25/06 ENRON JURY FINDS LAY GUILTY OF ALL 6 COUNTS: CNBC

12:04 PM ET 5/25/06 ENRON JURY FINDS LAY GUILTY OF 2 WIRE FRAUD COUNTS :CNBC

12:02 PM ET 5/25/06 ENRON JURY FINDS SKILLING GUILTY OF CONSPIRACY: CNBC

[AnneD]

99. I knew Skilling would be found guilty...

but all of Lay's convictions surprise me a bit.

[UpInArms]

80. Enron timeline

http://www.theglobeandmail.com/servlet/story/RTGAM.20060525.wenrontimeline0525/BNStory/Business

Enron was founded in 1985 and over the subsequent decade and a half became the No. 1 energy trader in the U.S. :

August 2000 — Enron shares reach high of $90.


2001:


Oct. 16 — Enron announces $638 million in third-quarter losses and a $1.2 billion reduction in shareholder equity stemming from writeoffs related to failed broadband and water trading ventures as well as unwinding of so-called Raptors, or fragile entities backed by falling Enron stock created to hedge inflated asset values and keep hundreds of millions of dollars in debt off the energy company's books.


Oct. 19 — Securities and Exchange Commission launches inquiry into Enron finances.


Dec. 2 — Enron goes bankrupt, thousands of workers laid off.


2002:


Jan. 9 — Justice Department confirms it has begun a criminal investigation of Enron.

...more...

[UpInArms]

95. When will Americans be truly Victorious? When will *Co be Accountable?

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B609FEB6A%2D1B3E%2D4218%2D809B%2D916AF917C67A%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- The guilty verdict in the Enron trial "is a victory for all Americans whose jobs and economic security depend on the integrity of our capital markets," said Christopher Cox, chairman of the Securities and Exchange Commission. "The verdict makes clear that high-level corporate executives who deceive the investing public for personal gain will be held fully accountable." A jury in Houston found former Enron executives Ken Lay and Jeff Skilling guilty on multiple counts of fraud and conspiracy. "The verdict leaves no doubt that corporate executives are obligated to conduct business honestly and to present a true and accurate picture of the company's business and finances to the public," said Linda Thomsen, director of enforcement for the SEC.

These fucktwits have a lot of god****n nerve.

Where were they during this entire trial?

Were they taking pictures of Lay/Skilling slinking into the courtroom day after day and pasting their lying freakin' mugs on the evening news every night (ala Martha Stewart)???

NO! They have waited until the PEOPLE of the jury had the nerve and courage to call LIARS their real names.

NOW WHERE ARE THE PEOPLE DEMANDING ACCOUNTABILITY FROM THE BUSH/CHENEY MAL-ADMINISTRATION?????

The loss of VA information will cost taxpayers up to $500,000
The illegal war - brought to you by the LIARS - up to $10 TRILLION (war and equipment and the loss of a generation of productive citizens)

I am steaming mad.

[TrogL]

57. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.H06&v=s

Current TSE



Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2006-04-24 Monday, April 24 0.879275 USD
2006-04-25 Tuesday, April 25 0.883626 USD
2006-04-26 Wednesday, April 26 0.887233 USD
2006-04-27 Thursday, April 27 0.890076 USD
2006-04-28 Friday, April 28 0.892618 USD
2006-05-01 Monday, May 1 0.898473 USD
2006-05-02 Tuesday, May 2 0.903424 USD
2006-05-03 Wednesday, May 3 0.903179 USD
2006-05-04 Thursday, May 4 0.903669 USD
2006-05-05 Friday, May 5 0.903261 USD
2006-05-08 Monday, May 8 0.899604 USD
2006-05-09 Tuesday, May 9 0.907276 USD
2006-05-10 Wednesday, May 10 0.908678 USD
2006-05-11 Thursday, May 11 0.910001 USD
2006-05-12 Friday, May 12 0.90212 USD
2006-05-15 Monday, May 15 0.897505 USD
2006-05-16 Tuesday, May 16 0.899928 USD
2006-05-17 Wednesday, May 17 0.899604 USD
2006-05-18 Thursday, May 18 0.89214 USD
2006-05-19 Friday, May 19 0.890313 USD
2006-05-22 Monday, May 22 0.893336 USD
2006-05-23 Tuesday, May 23 0.894935 USD
2006-05-24 Wednesday, May 24 0.890631 USD


Current values

Last trade 0.9035 Change +0.0097 (+1.09%)
Previous Close 0.8940 Open 0.8966
Low 0.8965 High 0.9050


Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The June Canadian Dollar was higher due to short covering overnight and is trading above the 10-day moving average crossing at .8973. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. If June extends this month’s decline, the 50% retracement level of the April-May rally crossing at .8817 is the next downside target. Closes above the 20-day moving average crossing at .9007 are needed to confirm that a short-term low has been posted. Overnight action sets the stage or a higher opening in early-day session trading.


Analysis

Somethin's going on.

I've been too busy (and depressed) to put up a loonie watch but today looks like it's gonna be "one of those days".

Frankly, I'm confused one chart shows up going up two cents since this morning, the other only shows 1/2 a cent.

A guess time will tell.

[TrogL]

108. update

Current values

Last trade 0.9045 Change +0.0107 (+1.20%)
Low 0.8965 High 0.9053

[UpInArms]

59. Stagflation Warnings

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BECEA6E50%2DC40A%2D4A07%2D8D00%2DE83F362462A2%7D&symbol=

Meanwhile, adding pressure to the dollar Thursday were upbeat Japanese economic data and figures from several countries indicating less of a willingness to hold dollars in their reserves and perhaps more gold, said Nadler.

He used Qatar and Sweden as examples of countries less willing to hold dollars, and said countries such as Russia and China were more willing to add more gold to their reserves.

"The U.S. economy could indeed be heading towards a stagflation scenario, as housing shows a cooling trend (consumer spending thus cannot be far behind) and inflation shows a stubborn tendency to keep showing up as the uninvited guest," said Nadler.

Given that, "bargain hunters of gold and other precious metals are beginning to be sighted more frequently as perceptions grow that the correction in prices may be drawing to a close in coming days," he said.

Still, "the possibility of additional waves of selling cannot be discounted," he said.

At the same time, "there is also an argument to be made in favor of stabilizing very near current levels and then resuming a (more moderate) pattern of higher values," he said.

[UpInArms]

61. A Glut of Chickens?

Well, I knew there was a "glut" of chickenhawks!

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BDD9FEDB8%2DBFE4%2D4AB2%2D8FDB%2DEF301EB859D8%7D&symbol=

excerpt:

"The combination of sluggish demand for poultry products in the domestic market with the decline in exports has depressed market prices compared with the levels we experienced in the prior year period," said Joe Sanderson Jr., chairman and chief executive, in a news release.

Poultry producers are cutting production to bring supply in line with demand. Sanderson said it will reduce weekly production by about 4.3% and will postpone construction of a new poultry facility in Waco, Texas for 90 days, deferring about $29 million in capital expenditures until fiscal 2007.

Sanderson, the sixth-largest poultry producer in the U.S., has a market share of 4.4%, according to Watt Poultry USA and Harris Nesbitt. By comparison, Tyson, the largest producer, holds almost 22% of the market; No.2 Pilgrim's Pride commands a 16.3% market share and the third-largest producer, Gold Kist Inc. (GKIS : 14.89, +0.37, +2.5% ) , has 9%.

...more at link...

Hmmmm.... a decline in exports? Well, sending those chickens back and forth to China should help that! :eyes:

[AnneD]

103. Hey, UIA

isn't the export of American chickens to China the absolute STUPIDEST thing you ever heard. I have been overseas. I thought some of our processing standard were unhealthy, but some places are downright abysmal :puke:. In fact, I did not eat ANY beef in Europe and absolutely NO MEAT what so ever in India. Like are they going to send them to Guangdong Provence...flu capital of the world for processing. Oh, wait...they will irradiate everthing and that will make it all better. I switched to organic and support local suppliers. This is a microbiological disaster waiting to happen.

[Ghost Dog]

106. Organic? Check out Cuba, AnneD, folks:

(Google #2 "organiponico" thread here: http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=1678228&mesg_id=1678733

[AnneD]

107. I might trust them with my veggies

but not the meat.

[UpInArms]

114. I do think that the roundtrip-to-China-and-back is assinine

and Tyson is the pits -

I've been doing the "Smart Chicken" thing - it's as close to organic as my local stores get :eyes:

[UpInArms]

69. 12:14 EST Market Happy In Spite of Corporate Corruption

Dow 11,192.64 +75.32 (+0.68%)
Nasdaq 2,188.09 +18.91 (+0.87%)
S&P 500 1,268.30 +9.73 (+0.77%)
10-Yr Bond 5.034 0.00 (0.00%)

NYSE Volume 1,104,098,000
Nasdaq Volume 970,984,000

12:00 pm : Market extends its reach into positive territory and now trades at session highs midday.

Supporting the bulk of follow-through buying on the heels of yesterday's late-day uptick has been encouraging GDP data. As expected, Q1 GDP was upwardly revised from a strong advance read of 4.8%, checking in at a large 5.3% annual rate of growth but below economists' larger forecasts of 5.8% growth, which helps undermine the recent exaggerated fears in the market that economic growth was slowing sharply. Also reassuring was the fact that the accompanying chain deflator -- a closely watched inflation indicator -- held steady at 3.3%, suggesting the economy is growing enough to sustain respectable profit growth while keeping inflation under control.

With regard to industry strength, upside leadership from all 10 economic sectors is also providing some relief as broad-based buying efforts underscore a sense that stocks are oversold on a near-term basis. The renewed enthusiasm for equities reduces the risk of further fear-based selling, suggesting the market could move into more of a sideways pattern as opposed to the downtrend that has weighed on the stock market of late.

Turning in the best performance so far has been Energy, with has surged more than 2.0% in sympathy with a 1.0% rebound in the price of crude. Also trading higher at the expense of continued deterioration in the dollar has been Materials, led by rebounds in gold (+1.5%) and copper (1.9%). Providing even more influential leadership, though, is Financial, due in large part to a 1.5% surge in brokerage stocks following the successful debut of MasterCard (MA 43.40 +4.40), the biggest IPO in two years, and confirmation of a $10 bln merger between Regions Financial (RF 35.27 -0.26) and AmSouth Bancorp (ASO 28.68 -0.22). Technology has also posted a noticeable gain following reports of a multi-year partnership between Yahoo (YHOO 32.87 +1.08) and eBay (EBAY 32.50 +2.30). DJ30 +81.12 NASDAQ +19.80 SP500 +11.15 NASDAQ Dec/Adv/Vol 902/1930/902 mln NYSE Dec/Adv/Vol 820/2248/744 mln

11:30 am : Range-bound trading persists in both stocks and bonds as buyers remain in control of the early action. Even though the market stability yesterday and so far this morning doesn't eliminate the chances of further fear-based selling, especially ahead of tomorrow's core PCE deflator, some renewed enthusiasm does reduce the risk and suggest the market may move into a sideways pattern rather than the downtrend that has plagued equities over the last couple of weeks. DJ30 +38.82 NASDAQ +8.98 SP500 +6.02 NASDAQ Dec/Adv/Vol 956/1850/740 mln NYSE Dec/Adv/Vol 854/2172/602 mln

[Zynx]

71. Historically the market likes corporate crooks being caught.

I remember in the middle of the 2002 Panic when the Adelphia charges came down the market rallied almost 500 pts in a day. The market hates finding out about corporate corruption, but it loves it when it is resolved.

[UpInArms]

73. I would think that this case would spotlight the fact that there is

so much corruption within the halls of the executive suites, they might be a bit more nervous about what they don't currently know.

:eyes:

[Zynx]

74. 2002 was the year we worried about that.

The market has never really been the same since that year. Sure we have recovered all of the losses, but the paranoia that gripped the market over the veracity of corporate earnings has had a lasting impact. The feeling is now that there is corruption out there, but it isn't as bad as it was. For example, we've had AIG, Dana, Delphi, GM, and other companies restating results since 2002. It still happens, but the systemic fear that there was in 2002 isn't there anymore.

[UpInArms]

75. This should make them nervous - Intelligence Czar Can Waive SEC Rules

http://www.businessweek.com/bwdaily/dnflash/may2006/nf20060523_2210.htm

President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.

Unbeknownst to almost all of Washington and the financial world, Bush and every other President since Jimmy Carter have had the authority to exempt companies working on certain top-secret defense projects from portions of the 1934 Securities Exchange Act. Administration officials told BusinessWeek that they believe this is the first time a President has ever delegated the authority to someone outside the Oval Office. It couldn't be immediately determined whether any company has received a waiver under this provision.

The timing of Bush's move is intriguing. On the same day the President signed the memo, Porter Goss resigned as director of the Central Intelligence Agency amid criticism of ineffectiveness and poor morale at the agency. Only six days later, on May 11, USA Today reported that the National Security Agency had obtained millions of calling records of ordinary citizens provided by three major U.S. phone companies. Negroponte oversees both the CIA and NSA in his role as the administration's top intelligence official.

FEW ANSWERS. White House spokeswoman Dana M. Perino said the timing of the May 5 Presidential memo had no significance. "There was nothing specific that prompted this memo," Perino said.

In addition to refusing to explain why Bush decided to delegate this authority to Negroponte, the White House declined to say whether Bush or any other President has ever exercised the authority and allowed a company to avoid standard securities disclosure and accounting requirements. The White House wouldn't comment on whether Negroponte has granted such a waiver, and BusinessWeek so far hasn't identified any companies affected by the provision. Negroponte's office did not respond to requests for comment.

Securities-law experts said they were unfamiliar with the May 5 memo and the underlying Presidential authority at issue. John C. Coffee, a securities-law professor at Columbia University, speculated that defense contractors might want to use such an exemption to mask secret assignments for the Pentagon or CIA. "What you might hide is investments: You've spent umpteen million dollars that comes out of your working capital to build a plant in Iraq," which the government wants to keep secret. "That's the kind of scenario that would be plausible," Coffee said.

...more...

Who knows exactly what we won't be knowing in the future about a variety of corporations?

[Zynx]

79. Okay. That's scary.

[Ghost Dog]

87. Sorry. Not allowed to know. Not allowed to comment. end of message.

[AnneD]

98. I think you have hit on a fact...

zynx, many an average American has gradually gotten out. I myself am not pleased with the 'reforms' that has happened on WS and I certainly think that CEO compensation and 'bonuses' have taken a chunk out of the bottom line profits. Makes no sense to cut worker that produce only to make the CO look good on paper AND NOT PRODUCE A DAMN THING. It is looking more and more like a shell game (the companies are nothing but shell to steal investors money).

[BeTheChange]

78. With the dollar falling.. I'd appreciate your advice..

My husband and I arent big investors, we normally squirrel money away and dont make it work for us. If you had cash and no debt other then a mortgage.. what would you do with it? Pay down your mortgage? Put it in metals? Canadian dollars? Is anything likely to make the dollar rally a bit even for the short term?

Anyone have thoughts on currency trading for the long haul?

[UpInArms]

81. Hi there, BeTheChange!

Welcome to the SMW :hi:

We, here at the SMW, are not able to give advice on how to or where to invest.

We merely attempt to give information regarding the markets, corporations and fiscal policies that affect the daily lives of everyone.

Maybe others who are more capable can direct you and I wish you the best in all of your financial endeavors.

[stop the bleeding]

84. I wish I could help

but my forte is option trading, I wish I knew more about precious metals and currencies

oops on edit:

Welcome to SMW - these guys are awesome

[Ghost Dog]

90. This here's no serious advice (disclaimer) but, maybe,

your top priority ought to be to pay off ALL debt. Set yourselves free.

[AnneD]

101. If I were you....

I'd pay off the house first. Paying off early saves you money in interest. Then I would have 6 months of living expenses in a money market account for a cushion. The rest...Roths are ok. I'd want something that paid dividends. Gold is safe in that it keeps up with inflation. If I really had money burning a whole in my pocket and could do something risky....I might play in the Forex market for grins. But I would only do that if I had all my other bases covered.

On edit...I am not endorsing anything in particular, just telling what I would do if I were in your shoes. Debt is risk and I would want to cut as much of my exposure to risk. You want to preserve your assets. I hope I answered your questions without giving out an endorsement.

[BeTheChange]

115. Thanks..

Im not going to hold anyone liable.

The only debt we have is our mortgage.. no credit cards, student loans, car loans.. yadda yadda. Our rate is so low that I honestly have no problem keeping that debt. We will have no problem making our mortgage for a couple years should we have no income. That seems to be enough of a cushion.

I do know that it would be better to make our money work for us and also to shield it from the falling dollar. Im really not confident in putting it in any american government backed assests. I've looked at all the options and am really attracted to the currency market.. but I just wanted to do a reality check to see if I was falling for the hype.

I figure Canadian dollars should be pretty safe either way our economy goes. It's a hedge, if you will.

[girl gone mad]

116. I have to disagree about paying off your mortgage early.

Well, not necessarily disagree, just be a contrarian voice.

If you have a fixed interest loan and your interest rate is below 5%, within the year you could be earning more just by parking your extra money in a money market account or CD. I don't think that tying up all of your money in real estate is a wise idea, especially on the tail end of the current RE bubble.

Of course, paying off your mortgage early, if you can afford to do so and still be diversified into stocks, bonds, some cash and foreign investments, is a good idea.

Diversification is the key. Having your house entirely paid off, but no retirement savings or other investments, is risky.

[AnneD]

117. I guess because

Hubby and I travel alot, we always end up with money from every country we visit. We hold it until it is worth more and usually make a profit. To my way of thinking, it might be fun to do. I am attracted to Forex, what can I say. I can understand it. Some one's buck will always be going up in the market. Are you looking at one of the computer programs that they sell to help you plot the market?

While you are in good shape, I would still bite the bullet and pay off the house. Remember, paying early saves you money (and puts it in your pocket where it belongs). Once it is paid off-you can devote all your income to investments. Your paid for house is an important cornerstone of your overall retirement. Congrats to you...you seem to be on a good road. Oh :hi: Welcome to SW thread.

[BeTheChange]

122. FXCM.com

We pay double our mortgage every month, so we should have our house paid off in about 9 years. In retrospect we should have just put down a larger down payment and not kept so much in ready reserve in case unexpected things were needed for the house. Perhaps we should weigh doing that sooner. I can definately understand the reasoning behind it.

I guess what I was more looking for was something along the lines of traditional moneymarket accounts that still allow you some liquidity, but are in it for the 1-5 year range. With the dollar falling it just doesnt seem to be the best investment to let it sit around in a standard bank account. I guess that is what draws me to the currency market. I can diversify while still making pretty safe trades and keep the money fairly liquid incase Bush Jr goes postal and decides to start shooting up Iran.

It seems like we are kinda in the eye of our economic hurricane and all bets should be thoroughly reasoned and placed. ;)

[UpInArms]

72. OT: Testimony: Cheney angered over envoy's column on war (Joe Wilson)

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2006/05/25/MNGSDJ21111.DTL

Washington -- Vice President Dick Cheney was personally angered by a former U.S. ambassador's newspaper column attacking a key rationale for the war in Iraq, and he repeatedly instructed his former chief of staff, Lewis "Scooter" Libby, to "get all the facts out" related to the critique, according to excerpts from Libby's 2004 grand jury testimony released late Wednesday by Special Counsel Patrick Fitzgerald.

Libby also told the grand jury that Cheney raised as an issue that the former ambassador's wife worked at the CIA and that she allegedly played a role in sending him to investigate the Iraqi government's interest in acquiring nuclear weapons materials. That issue formed the basis of former ambassador Joseph Wilson's published critique.

In his evening court filing, which included the formerly secret testimony, Fitzgerald did not assert that Cheney instructed Libby to tell reporters the name and role of Valerie Wilson, Joseph Wilson's wife. But he said Cheney's interactions with Libby on that topic were a key part of the reason that Libby allegedly made false statements to the FBI about his conversations with reporters around the time her name was disclosed in news accounts.

<snip>

The prosecutor also left open the possibility that Cheney will be called as a witness during Libby's trial, scheduled to begin next year, and denied an assertion last week by Libby's lawyers that Cheney would not be called.

...more...

The corruption of our government and corporations goes hand in hand.

[UpInArms]

76. More on Lobbyist-Bought Gov't:Safavian Defense Says No Abramoff Favors

http://www.forbes.com/technology/ebusiness/feeds/ap/2006/05/25/ap2773503.html

A Bush administration official acted properly and was not trying to arrange government real estate deals for long-time friend Jack Abramoff, a defense lawyer suggested Thursday.

<snip>

Safavian is on trial for allegedly lying when he told investigators that Abramoff had no business with the GSA. Safavian's attorney contends he is being prosecuted simply because he was friends with the now convicted lobbyist.

On Wednesday, Costa, whose GSA office oversees 350 million square feet of federal office space, testified about his puzzlement over Safavian's focus on a single government property in Silver Spring, Md.

Safavian, said Costa, was tying up agency time on behalf of a nonprofit group that hoped to use government property for a private school.

"We were spending a lot of time" on a project that was "probably going nowhere," Costa testified.

Costa wasn't told that Abramoff, the school's founder, was behind the push.

...more...

[stop the bleeding]

86. Seems like energy is climbing again - anyone know the price of oil

compared to the earlier numbers from this morning?

thank you in advance

[Nickster]

88. 70.90 right now, up 1.04 since this morning's open. n/t

[UpInArms]

89. here's what I found at the futures charts

http://quotes.ino.com/exchanges/futboard/

CL.N06 CRUDE OIL Jul (NYMEX)	71.15	+1.29	0	285359	13:43	all months	
CL.N06.E CRUDE OIL Jul (NYMEX)	70.33	+0.47	9568	285359	09:47	all months	
DC.K06.E CRUDE OIL DUBAI (CALENDAR SWAP) May (NYMEX)	64.84	+0.55	0	1150	set 16:48	all months	
CS.Z06.E CRUDE OIL WTI (CALENDAR SWAP) Dec (NYMEX)	72.68	-1.95	0	3117	set 15:20	all months

(scroll down to energy futures)

[UpInArms]

92. here's the current cash price - $71.10 bbl

1:59 PM ET 5/25/06 JULY CRUDE UP $1.24, OR 1.8%, AT $71.10/BRL IN NY TRADING

1:59 PM ET 5/25/06 JUNE UNLEADED GAS RISES 6.2 CENTS, OR 3.1%, TO $2.081/GAL

1:59 PM ET 5/25/06 JUNE NATURAL GAS ADDS 2.6 CENTS TO TRADE AT $5.99/MLN BTUS

[stop the bleeding]

93. thanks to both of you - man that was fast

you guys are awesome!!!

[Zynx]

94. Oil stocks are very undervalued given the price of crude.

If oil stays in the range of $65-70 all year, oil stocks should be at least 30% higher.

[UpInArms]

96. New U.S. housing loans declining - OTS - New S&L Crisis Coming?

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-25T175841Z_01_N25458018_RTRIDST_0_FINANCIAL-HOUSING.XML

WASHINGTON, May 25 (Reuters) - New U.S. housing loans are declining nationwide in response to rising interest rates, the director of the U.S. Office of Thrift Supervision said on Thursday.

John Reich, whose agency supervises savings institutions whose main business activity is mortgage lending, spoke to reporters after testifying to a House Financial Services subcommittee.

"There are some markets that are continuing to be fairly strong," he said. "There are other markets, I think, such as Washington D.C., where there are signs that the market is beginning to slow, inventories are picking up, it's beginning to take a few weeks longer to sell homes than it has in the past."

In prepared testimony for the panel, Reich said the number of new loans by mortgage lenders across the United States was starting to decline.

<snip>

"Further deterioration in any of the fundamentals that affect housing strength, such as worsening unemployment rates or rising interest rates, could adversely affect thrifts' asset quality," Reich told the panel.

...more...

[RUMMYisFROSTED]

110. Last week was a bad dream...

[Roland99]

111. Closing: Happy Hour!!

DJIA 11,211.05 +93.73 +0.84%
Nasdaq 2,198.24 +29.07 +1.34%
S&P 500 1,272.88 +14.31 +1.14%
Dow Util 399.36 +3.71 +0.94%
NYSE 8,187.40 +124.47 +1.54%
AMEX 1,925.65 +34.82 +1.84%
Russell 2000 725.58 +14.31 +2.01%
Semcond 462.99 -2.05 -0.44%
Gold future 648.50 +11.00 +1.73%
30-Year Bond 5.17% +0.04 +0.82%
10-Year Bond 5.07% +0.04 +0.79%

[stepnw1f]

112. I Guess The Kenny/Lay Verdict was a Good Thing for Wallstreet

disclaimer: I am being a wise ass.

[AnneD]

119. Nahhhh...

it was the unemployment numbers...They love that.

[UpInArms]

113. blithering happy blather

For the first time since early May, the market closed on an upbeat note for a second consecutive session as investors finally began to embrace some upbeat news on the economy. Before the market opened, there wasn't any specific reasoning behind the early positive tone other than traders simply trying to keep some semblance of a good thing going in the wake of so many down days fueled by a change in focus on the negatives. That is until encouraging GDP data hit the wires at 8:30 ET.

As expected, first quarter real GDP was upwardly revised from a strong advance read of 4.8%, checking in at a large 5.3% annual rate of growth. While 5.3% growth helped undermine the recent exaggerated fears in the market that economic growth was slowing sharply, the fact that such expansion was also below economists' larger forecasts of 5.8% growth showed that the economy picked up steam in Q1, but didn't grow too fast to ruffle the inflation hawks' feathers. To wit, the accompanying chain deflator -- a closely watched inflation indicator -- held steady at 3.3%, suggesting the economy is growing enough to sustain respectable profit growth while keeping inflation under control.

With regard to industry strength, which has been waning of late as concerns about the Fed going too far with its tightening has prompted investors to lock in profits across every sector, upside leadership from all 10 economic sectors provided some relief and underscored a sense that stocks are still oversold on a near-term basis. Even though the market stability yesterday and today doesn't eliminate the chances of further fear-based selling, especially ahead of tomorrow's core PCE deflator, some renewed enthusiasm has reduced the risks and suggests the market may at least stall the downward bias that has plagued equities over the last couple of weeks.

Despite the inflationary impact of rising commodity prices, Energy and Materials paced the day's gains, surging 3.1% and 2.1%, respectively. Crude oil prices erased most of the 2.7% lost yesterday and gold reclaimed about 2% following its biggest one-day loss in 12 years. Evidently, investors chose to return their focus to earnings prospects from the most profitable of all the sectors. Also providing some influential leadership to the upside was Financial, as resurgence in M&A activity and the successful debut of MasterCard (MA 45.40 +6.40), the biggest IPO in two years, played into our bullish outlook for brokerage stocks. Birmingham-based banks Regions Financial (RF 34.40 -1.13) and AmSouth Bancorporation (ASO 28.01 -0.89) announced a merger of equals valued at around $10 bln.

Technology, which has been one of the biggest sore spots of late, also closed sharply higher, as evidenced by the tech-heavy Nasdaq turning in the best performance among the majors. A multi-year partnership between Yahoo (YHOO 32.92 +1.13) and eBay (EBAY 33.88 +3.68) and a 1.7% surge in networking helped offset further deterioration in chip stocks. Consumer Staples also tacked on a 1.0% gain, getting a huge boost from Wal-Mart (WMT 49.43 +1.40), which hit its best levels of the year after it was upgraded. BTK +1.89% DJ30 +93.73 DJTA +1.05% DJUA +0.94% DOT +1.44% NASDAQ +29.07 NQ100 +1.23% R2K +1.93% SOX -0.44% SP400 +1.21% SP500 +14.31 XOI +3.08% NASDAQ Dec/Adv/Vol 797/2227/1.99 bln NYSE Dec/Adv/Vol 773/2469/1.66 bln

[girl gone mad]

118. Marketwatch: "Last hurrah for the robust U.S. economy?" Uh-oh.

WASHINGTON (MarketWatch) -- A growth rate above 5% in the first quarter may be the grand finale for the U.S. boom, some economists say.

The growth rate is likely to slow sharply to 3% or less in the current quarter, close to the economy's long-run potential, they say. The recent data show that consumers' incomes are being squeezed by rising interest rates, higher energy costs and a slumping housing market. The manufacturing sector could also be cooling off.

If these economists are right, the Federal Reserve could hold its overnight target rate at 5% for an indefinite period of time, instead of raising the federal funds rate as some expect it will in June. See our complete coverage of the Fed.

"The strong first-quarter data may well be the last hurrah of this phase of the current expansion," said Nariman Behravesh, chief economist for Global Insight. "A soft landing in housing, along with a deceleration in consumer spending will be key drivers of this growth slowdown."

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFCF57CC2%2DDCFF%2D4868%2D8DF2%2DAA8E2E39450C%7D&siteid=bigcharts&dist=bigcharts