STOCK MARKET WATCH, Monday May 7

[ozymandius]

Source: DU

Monday May 7, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 623 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2318 DAYS
WHERE'S OSAMA BIN-LADEN? 2028 DAYS
DAYS SINCE ENRON COLLAPSE = 1988
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

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

AT THE CLOSING BELL ON May 4, 2007

Dow... 13,264.62 +23.24 (+0.18%)
Nasdaq... 2,572.15 +6.69 (+0.26%)
S&P 500... 1,505.62 +3.23 (+0.21%)
Gold future... 689.70 +5.30 (+0.77%)
30-Year Bond 4.80% -0.03 (-0.68%)
10-Yr Bond... 4.64% -0.03 (-0.73%)






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 [e-mail]

For information on protests and other actions Citizens For Legitimate Government

---

Read more: DU

[ozymandius]

1. Today's Market WrapUp

More Questions On the 4-Year Cycle That Refuses To Be
BY TIM W. WOOD

Where’s the 4-year cycle low? Did it bottom last summer? Could it have bottomed this past March? What would it mean if the Dow goes to 15,000? Hasn’t this advance proven that cycles are no longer relevant? Doesn’t it appear that history is no longer relevant? I continue receiving e-mail on these questions and in today’s WrapUp I want to address these topics.

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

[Roland99]

9. Or something else is helping stretch that 4-year cycle out *cough*FedReserve*cough*

[Roland99]

2. HA! Great cartoon

I've noticed people aren't slowing down on the interstates despite $3.19/gal prices.

[ozymandius]

4. I've noticed the same.

I lucked out yesterday, found gas for $2.88/gal beyond the exburbs of Atlanta.

[Roland99]

11. It's about $0.15 cheaper here in so. IN (where I work) than in Louisville

I'm hoping it all drops a few more cents before I have to fill up again (mid-week) and then I'll use my Kroger $0.10 discount, too.

But, this time last year I was seeing people slowing down on the interstates and even wrote about my summer trip to Disney World last July/Aug. I was cruising about 72mph and had VERY few people pass me.

Heading out into the edge of exurbia for a Derby party over the weekend, I was cruising again about 72mph and was being passed constantly.

[AnneD]

38. Morning Marketeers...

:donut: and lurkers. I thought about you this weekend Roland, knowing how you admire good horse flesh. I had to work so no Derby parties for moi. And I so wanted a piece of derby pie. I did get to look at the high price of gas though.

If I bet money, I would bet that the fed don't do a thing with the rate.The real inflation numbers are such that they would love to raise interest rates, but the economy is doing so badly they don't dare. They either over react or act too late and they want to avoid it this time. We will know soon enough.


Happy hunting and watch out for the bears.

[Roland99]

41. The ponies left me high and dry Sat. but I had fun. I do wonder about those at the Fed...

Are they geniuses for keeping the markets going along this far into the 4-year up-cycle (from the 2nd post in this thread) or are they merely just lucky bastards riding a 99-1 shot to an apparent victory, only to falter and fall, shattering bones worse than Barbaro and turning the economy into glue?

[AnneD]

52. Roland, Roland....

Remember, I told you what Unckle leonard always said "Never play the ponies, they will only break your heart".

Good question. If they are lucky, I think it is about to play out.

[Roland99]

54. My problem is I wasn't drunk enough when I made my bets. Can't say the same for the Fed!

[ozymandius]

3. Today's Report

3:00 PM Consumer Credit Mar
Briefing Forecast $4.0B
Market Expects $4.5B
Prior $3.0B

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

[ozymandius]

5. Pump prices hit $3 a gallon (this is news?)

NEW YORK - The average price of gasoline topped $3 a gallon at the pump Friday, amid growing concerns that refineries are simply not making enough gas to meet peak summer demand.

But oil and gasoline futures fell on light volume Friday. Analysts said traders had little news to drive buying or selling, but may have sensed that the gasoline market has topped out.

"We're probably pretty close to the peak on retail gasoline," said Kevin Lindemer, executive managing director of Global Insight's energy group.

According to the Oil Price Information Service and AAA, the national average price of a gallon of gasoline hit $3.012 Friday, up 2.1 cents overnight. Prices at the pump generally lag the futures markets, so consumers can end up paying more for gas even as futures prices drop.

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

So the refineries get to make more money for producing less gasoline. How is this a mystery?

[ozymandius]

6. Malaysia to build 7 billion dollar oil pipeline project: Abdullah

KUALA LUMPUR (AFP) - Malaysia will build a seven billion dollar pipeline to transport Middle East oil across the north of its peninsula to East Asian countries, Prime Minister Abdullah Ahmad Badawi said Monday.

-cut-

The News Straits Times reported Monday that Trans-Peninsula Petroleum Sdn Bhd, the company that will construct the 312-kilometre (194-mile) pipeline, said it will invest as much as seven billion dollars in the ambitious project over eight years.

The pipeline will run from northwestern Kedah state, across Perak state to northeastern Kelantan state which faces the South China Sea, which chairman Rahim Kamil Sulaiman said will bypass the piracy-prone Malacca Strait.

Half of the world's oil shipments currently pass through the 960-kilometre strategic strait, the busiest seaway in the world.

http://news.yahoo.com/s/afp/20070507/bs_afp/malaysiamideastiranenergyoil_070507060847

[Ghost Dog]

32. Blast destroys part of Ukraine pipeline

http://investing.reuters.co.uk/news/articlenews.aspx?type=worldNews&storyID=2007-05-07T141703Z_01_L07318986_RTRUKOC_0_UK-UKRAINE-GAS.xml
Mon May 7, 2007 3:17 PM BST (GMT+1)

KIEV (Reuters) - An explosion has destroyed a 30-metre section of a gas pipeline crossing Ukraine, stopping the flow of Russian gas to Europe, the Emergencies Ministry said on Monday.

"There was a powerful explosion that destroyed 30 metres of the pipeline. There are no casualties and no threat to local residents," ministry spokesman Oleskander Trigub said by telephone.

"I cannot say how long it will take to restore the flow of gas."

[Ghost Dog]

33. Blast cuts Russia-EU gas pipeline

http://www.afp.com/english/news/stories/070507142422.1yj3gi65.html
07/05/2007 14h34
©AFP/File - Sergei Supinsky

KIEV (AFP) - An explosion Monday in Ukraine knocked out of service one of the main pipelines exporting Russian natural gas to the European Union, the Ukrainian emergency situations ministry told AFP.

A "large explosion" cut the pipeline, which carries Siberian gas through Ukraine to Germany and other EU clients, ministry spokeswoman Viktoria Ruban said.

The blast occurred at about 1125 GMT on a section near the Ukrainian capital Kiev, she said.

A 30-metre (32-feet) length of pipeline was torn off, with debris hurled 150 metres away.

There was no immediate information regarding the effect of the incident on deliveries to the European Union, the biggest foreign gas market for Russia, the world's leading natural gas producer.

[cosmicdot]

66. regular 'hit' $3.53 just up the street

wheeeeeeeeeee

[fasttense]

7. Another winner ozy with that cartoon. It made me laugh out loud and woke my dog.

I've taken some tips from hyper milers and have got my Nissan doing 50 miles per gallon. I didn't know changing the way you drive could affect your mileage so much. I use to average about 30. Who knew?

[ozymandius]

10. Please share.

I drive a Volvo that gets about 24/32 at the moment. It needs a few new parts to help it breathe better and better the gas mileage. Otherwise I would greatly appreciate any tips that could improve on the improvements.

Thanks!

:hi:

[Roland99]

14. I'm guessing the following but can't wait to hear the real tips!

1) New ignition wires and plugs
2) Tune-up
3) Driving no faster than 65mph and using cruise control as much as possible (where safe)
4) Coasting to stop signs, traffic lights, exit ramps, etc. (modern fuel-injected engines shut off the fuel flow when coasting in gear until idle speed is approached (typically below 1200rpm). Putting a car in neutral negates this benefit as the engine is forced to remain at idle via fuel flow instead of engine braking.
5) Turning off ignition when stopped at a light for more than 15 secs. (Take more fuel to start a warm car than it does to idle more than 15 secs)
6) Stop using drive-thru lanes at banks, fast food places, etc.

[fasttense]

22. Hey, Roland, you described exactly what I do.

Drive as slow as possible. Never, ever speed. Got a tune up just the other day and made sure my oil was changed. Coast, coast, and more coasting. Avoid hitting your breaks whenever possible. We've got lots of hills here so coasting is about half of my driving time. Plan ahead and slow down so you don't have to come to a full stop for turns and red lights. Don't use the AC, avoid rolling windows down. In the heat of summer, I may not do as well.

[Roland99]

23. Yeah, coasting can work wonders and shutting off ignition at a long light in summer is hard

:)

[AnneD]

60. Can...

coasting through work do the same thing. I notice I save energy, but I am still using the same amount of gas to get here.

[Roland99]

62. It depends on if you have Mgr or Supv as an abbreviation in your title.

If you have Dir. or V.P. or even Pres., omg you are *in*!

[ozymandius]

8. U.S. stock head for higher open

NEW YORK - U.S. stocks appeared headed for a moderately higher open Monday as investors examined a hostile $33 billion bid by Alcoa Inc. for Canadian aluminum rival Alcan Inc.

Early Monday, Alcoa offered $58.60 in cash and 0.4108 of a share for each share of Alcan. Based on the closing prices Friday, Alcoa's offer carries a 20 percent premium. Alcoa said it took its offer to shareholders after Alcan rejected the company's overtures for two years.

The move by Alcoa, one of the 30 stocks that makes up the Dow Jones industrials, could give stocks a lift Monday as investors often regard merger and acquisition activity as a bullish bet by companies on corporate profits.

With little earnings and economic data to go on Monday, investors will be awaiting further signals to try to determine where stocks might be headed and whether Wall Street's record rally will continue. Investors will also be awaiting the
Federal Reserve's decision on interest rates on Wednesday.

http://news.yahoo.com/s/ap/20070507/ap_on_bi_st_ma_re/wall_street

[ozymandius]

12. Microsoft Woos Yahoo; Ad Sales Lost to Google May Be $2 Billion

May 7 (Bloomberg) -- Microsoft Corp. Chief Executive Officer Steve Ballmer interrupted a Hawaiian vacation to call his top Internet ad man, Yusuf Mehdi, on April 16 after Google Inc. announced its $3.1 billion purchase of DoubleClick Inc.

Mehdi says Ballmer offered money, personnel, acquisitions or whatever he needs to fight the threat that buying Web advertising company DoubleClick will advance Google's dominance of the $28.8 billion market.

Ballmer may be about to follow up on his pledge. Microsoft, the world's biggest software maker, has held talks with Yahoo! Inc. about a partnership to develop Web search and advertising programs to fight Google, people briefed on the discussions said. That would help remedy what Mehdi says is his one regret in the past year.

-cut-

Microsoft's discussions with Yahoo are in the early stages and focus on a partnership rather than a merger, said one of the people, who asked not to be identified because the talks are private. The New York Post said May 4 that Microsoft may want to buy Yahoo. Both companies declined to comment.

Even together, the combined company would have 38 percent of the U.S. search market, 10 points less than Google, according to ComScore Inc. Yahoo CEO Terry Semel has come under fire after the stock sank 35 percent last year amid delays in new ad programs and earnings that disappointed investors.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aoG0KxNlwxbY&refer=news

[UpInArms]

13. dollar watch

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

Last trade 81.605 Change -0.030 (-0.04%)

Dollar Down But Not Out- Reversal in the Making?

http://www.dailyfx.com/story/strategy_pieces/trade_or_fade/Dollar_Down_but_Not_Out_1178512454798.html

Friday’s US Non-Farm Payrolls printed at 88K slightly below the already muted expectations of 100K as US economy displayed clear evidence of deceleration. Every component of the report was worse than forecast with Average Hourly earnings growing only 3.7% vs. 3.9% consensus and manufacturing payrolls shrinking yet another -19K vs. -14K consensus. Furthermore, prior data was revised downward for the second consecutive month. Despite the less than impressive US results, the EURUSD was unable to muster much of a rally. As we have noted before, the currency pair was grossly overbought and traders needed to see recessionary-like numbers from the US employment report in order to propel the euro higher.

Still not all was bleak for the US economy. Earlier in the week both ISM Services and ISM Manufacturing surprised to the upside suggesting that US growth continues to be expansionary despite the negative impact of the slowdown in housing. In short while the greenback may be down, it not quite out. There appears to be no imminent threat of a recession in the US and with market sentiment so virulently dollar bearish, the greenback is primed for a reversal next week if it can find some support from fundamentals. Indeed on a technical basis the dollar index traced out an outside week suggesting that at least for now the selling may be done.

Next week the calendar provides plenty of event risk, starting with the FOMC decision on Wednesday. While no one expects the Fed to make a move either way, the persistently high level of inflation is likely to produce a decidedly hawkish communiqué, that will emphasize risks to price levels rather than economic growth. Should that tone be confirmed by hotter than expected PPI and buoyant Retail Sales on Friday, all the ingredients for dollar rally will be in place. – BS



...more...

Could Dollar Find Its Footing This Week?

http://www.dailyfx.com/story/dailyfx_reports/daily_brief/Could_Dollar_Find_Its_Footing_1178532888553.html

A very quiet night of trade as London takes a holiday for Labor Day and Tokyo returns from week long hiatus of Golden Week. The yen saw a smattering of strength in Asia and early European trade as USDJPY traded below 120.00 level mainly on EURJPY selling. The minutes from the latest BOJ meeting contained no surprises, noting that adjustment would be “gradual”. With Japanese economic data strictly 2nd tier all week long, yen bulls best hopes for a rally in the currency lie with the correction in global equity stock markets which would trigger another wave of risk aversion and force some liquidation in the carry trade. As the parabolic rise of the Shanghai index continues, PBOC Governor Zhou acknowledged on Sunday that a bubble in the country's stock market was a concern and said that the central bank was monitoring asset prices along with inflation. Therefore the probability of a pullback in Chinese equity index grows stronger this week as Asia returns to work.

Little wonder then, that Hiroshi Watannabe, Japan's Vice Finance Minister for International Affairs, known universally in the currency markets as “Mr. FX”, tried to minimize any potential fallout from such a scenario by stating that “hasty unwinding of carry trade is unlikely.” Japanese officials would like to orchestrate a slow appreciation of the yen, in order to control any negative impact on the country’s critical export sector. However, the history of carry trade unwinds almost always argues for sharp corrections that can shave 500- 1000 points from the exchange rate in a matter of days. Nevertheless, for now talk of carry trade unwind remains idle speculation as neither the Japanese economic data, nor the buoyant global stock markets have provided yen shorts with any reason to abandon their trade.

Meanwhile, the EURUSD hovered near the 1.3600 level after setting a record high last week. Despite the soft US NFP data on Friday, the pair continues to have trouble pushing higher as EZ data last week suggested that growth in the region may have already peaked while US data on the other hand shows no signs of an imminent recession. With positioning wildly skewed to the euro long side, the market may have overestimated the disparity between EZ and US economic prospects. If US data, most notably the Retail Sales report on Friday, shows moderate expansion, while this week’s EZ Industrial data falters as the result of the high exchange rate environment, the dollar could stage a rally correcting some of the overly bearish sentiment that has dogged the currency for the past month.

...more...

[Ghost Dog]

28. Tokyo precious metals surge, spot gold firm

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=goldMktRpt&storyID=2007-05-07T071155Z_01_T341575_RTRIDST_0_MARKETS-PRECIOUS-UPDATE-2.XML

TOKYO, May 7 (Reuters) - Tokyo gold futures rose more than 2 percent to a two-month high and platinum futures hit a record high on Monday as strength in cash gold, which held near a two-week high due to dollar weakness, encouraged active buying.

Precious metals drew broad demand from investment funds as the dollar weakened against the euro <EUR=> after Friday's soft U.S. payrolls report reinforced expectations that the U.S. Federal Reserve could lower interest rates later this year.

"A weaker dollar is a distinct factor to buy gold now," said Tatsuo Kageyama, an analyst at Kanetsu Asset Management in Tokyo. "The market is also confident to buy after seeing the cash price being supported around $670."

At 0641 GMT spot gold <XAU=> was trading at $689.00/689.50 an ounce, up from $687.60/688.10 late in New York on Friday, when it hit a peak of $690.65, the highest since April 24.

Spot gold fell as low as $667.30 on May 2, but it has attracted strong bargain-hunting near the low point.

Tokyo precious metal prices rallied across the board as investors actively bought to catch up with gains made in European and U.S. markets during a four-day holiday in Japan.

/...

[mojavekid]

61. Faber: U.S. Dollar Collapse not Imminent, But Start Buying Gold and Silver Now

http://www.dailyreckoning.com.au/us-dollar-collapse/2007/05/04/

If any longish marriage is an exercise in irritation management, so is listening to the hype by media commentators about the soundness and superiority of the US economy and about how well US stocks are performing. I suppose that if Larry Kudlow were living in Zimbabwe, where the economy has been contracting for eight straight years and has shrunk by 50% since 1999, and where hunger is spreading and life expectancy is down to 35 years, he would also be enthusiastic about the prospects of Zimbabwe’s stock market, which is currently soaring as inflation is likely to reach 5,000% this year. (Michael Lewitt of Harch Capital Management recently commented on the Zimbabwe stock market and noted that on March 20, the Zimbabwe stock exchange rose in that one single day by as much as in the previous 40 years to December 2006 combined.)

As in the case of the US, but in a more extreme way, while stocks are soaring in Zimbabwe, the currency is collapsing. (In fact, it is an exact replica of what happened during the Weimar hyperinflation of 1919-1923, in local currency terms, the stock market index soared into the trillions but collapsed in gold terms.) John Paul Koning, an analyst at Pollitt & Co in Toronto and writing for the Mises Institute, has made the following pertinent observation about the Zimbabwe Stock Exchange:

“The ZSE is growing some three times faster than consumer prices. This relative outperformance versus general prices is a result of stocks being a chief entry point for the flood of newly created money. Keep Zimbabwean dollars in your pocket, and they’ve already lost a chunk of their value by the next day. Putting money in the bank, where rates are pithy, is not much better. Investing in government bonds is the equivalent of financial suicide.

plenty more...

[ozymandius]

15. I'll check in later.

I have to take my son to school. Work is at home today so I'll be close by.

Ozy :hi:

[UpInArms]

16. Pulpit Poll: Will IBM Global Services really layoff 100,000+ U.S. workers?

http://www.pbs.org/cringely/pulpit/2007/pulpit_20070504_002027.html

Last year I wrote a series of columns on management problems at IBM Global Services, explaining how the executive ranks from CEO Sam Palmisano on down were losing touch with reality, bidding contracts too low to make a profit then mismanaging them in an attempt to make a profit anyway, often to the detriment of IBM customers. Those columns and the reaction they created within the ranks at IBM showed just how bad things had become.

Well they just got worse.

This is according to my many friends at Big Blue, who believe they are about to undergo the biggest restructuring of IBM since the Gerstner days, only this time for all the wrong reasons.

The IBM project I am writing about is called LEAN and the first manifestation of LEAN was this week's 1,300 layoffs at Global Services, which generated almost no press. Thirteen hundred layoffs from a company with more than 350,000 workers is nothing, so the yawning press reaction is not unexpected. But this week's "job action," as they refer to it inside IBM management, was as much as anything a rehearsal for what I understand are another 100,000+ layoffs to follow, each dribbled out until some reporter (that would be me) notices the growing trend, then dumped en masse when the jig is up, but no later than the end of this year.

LEAN began last week with a 10-city planning meeting for Global Services, which wasn't, by the way, to decide who gets the boot: those decisions were apparently made weeks ago, though senior managers have been under orders to keep the news from their affected employees.

If you work at IBM Global Services, ask your boss outright if you are on the list to be fired. It puts the boss in a bind, sure, but might lead to a sort of "Alice's Restaurant" effect in which hypocrisy is confronted and exposed.

...more plus poll at link...

[DemReadingDU]

17. I saw that in another thread yesterday

posted by Tandalayo_Scheisskopf

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x832657

[UpInArms]

18. 'mornin DemReadingDU

:donut:

Thanks for the link - I had heard the rumor last week, but this was the first time I had seen the layoff spelled out.

:hi:

[DemReadingDU]

21. Terrible news, what is happening to the middle class?

There are no comparable jobs left in America for these 100,000 - 150,000 people. Just so sad. :(


Good morning UIA, and all the stock watchers!

:hi:

[AnneD]

39. By laying off just a few at a time....

they get around the federal notification laws. Don't want to frighten the herd while you are cullin, don't you know.

[capi888]

36. Interesting..low unemployment...why??

Just heard on the local Michigan News, that people who are unemployed are now working 2-3 jobs to make ends meet. Does this tell you why unemployment is so low. Imagine thousands taking day,evening, and weekend jobs, being reported to the govt as new jobs, when in reality, it is one person taking the place of three people. Not new jobs for the unemployed, just families trying to save their skin!!! I am so discouraged!

[UpInArms]

19. Conrad Black trial readies for key witness Radler

http://www.reuters.com/articlePrint?articleId=USN0122881820070506

CHICAGO (Reuters) - Much-anticipated testimony this week by David Radler, the ex-partner of former media baron Conrad Black, will likely make or break the criminal case against Black and three fellow executives, lawyers said.

The trial, which is entering its eighth week, will reach a crescendo when Radler, who was once operations chief at Hollinger International Inc., takes the witness stand some time on Monday and then faces what is sure to be withering cross-examination from each of the four defendants' lawyers.

Federal prosecutors get first crack and will try to paint Radler, 64, as Black's co-conspirator in skimming $60 million from Hollinger as the two dismantled the Chicago-based company they had built into one of the world's largest newspaper publishers.

Radler, a Canadian living in Vancouver, pleaded guilty nearly two years ago in exchange for a 29-month sentence and a promise to testify for prosecutors.

Just before the trial began in March, Radler also agreed to pay $29 million to settle with the U.S. Securities and Exchange Commission and paid millions more to settle with Hollinger's successor company, the Sun-Times Media Group.

The Canadian-born Black, 62, is charged with fraud, racketeering, money laundering and obstruction of justice. He faces up to 101 years in prison, millions in fines and $92 million in forfeitures if convicted.

...more...

[UpInArms]

20. Carlyle refinancing buyout of Japan's Qualicaps

http://www.reuters.com/article/bondsNews/idUST18362520070507

TOKYO, May 7 (Reuters) - Private equity group Carlyle Group is refinancing its acquisition of Japanese health-care products group Qualicaps, so that the company can make acquisitions, sources familiar with the situation said.

The 25 billion yen ($210 million) refinancing package will be made up of debt and preferred shares, they said.

U.S. investment bank JPMorgan (JPM.N: Quote, Profile, Research has been asked to organise the syndication of the loan to other banks.

Qualicaps, based in Nara, western Japan, makes hard two-piece capsules and related manufacturing equipment used in the pharmaceutical and the dietary supplement industries.

<snip>

Banks compete fiercely to take part in the refinancing of buyouts as they can often charge more than for other types of corporate financing deals.

...more...

[AnneD]

40. Gots to take...

that profit up front. Wonder when they will try to re sell?

[Ghost Dog]

24. Asian Stocks Advance to a Record; Japan Air Gains on Profit

http://www.bloomberg.com/apps/news?pid=20601080&sid=aBdsqXiPAqd0&refer=asia

May 7 (Bloomberg) -- Asian stocks climbed to a record, led by companies due to announce results this week, after Japan Airlines Corp. said operating profit rose to an all-time high.

Japan Air, Asia's biggest carrier by sales, jumped the most in a month. Tokyo Electron Ltd., the world's No. 2 supplier of chip-making equipment, had its largest gain in three weeks after a newspaper reported the company's profit this year will climb to a record on demand for chips used in personal computers.

The Topix index posted its biggest advance since March as Japan's shares resumed trading after a two-day holiday last week, when benchmarks in Australia, Hong Kong, South Korea, Singapore, Malaysia and Indonesia set new highs.

``Technology stocks are my favorites because I expect the companies will achieve a better profit growth than other sectors,'' said Yoshinori Nagano, who helps oversee about $70 billion at Daiwa Asset Management Co. in Tokyo. ``Japan's market had a broad rally because it lagged behind overseas markets.''

Sumitomo Metal Mining Co. led mining shares higher after the price of copper climbed and nickel reached a record high. Canon Inc. and Samsung Electronics Co. rose, buoyed by lower oil prices and speculation the U.S. Federal Reserve will cut interest rates in the region's biggest export market this year.

The Morgan Stanley Capital International Asia-Pacific Index added 1.6 percent to 149.72 at 4:11 p.m. in Tokyo, the biggest rise since April 4. All 10 industry groups rose.

Japan's Nikkei 225 Stock Average gained 1.6 percent while the broader Topix climbed 1.7 percent. The nation's markets were closed for three days last week. All indexes in the region advanced, except New Zealand. China and Thailand are closed for holidays.

Hong Kong's Hang Seng Index jumped 0.6 percent, led by developers after the South China Morning Post said Wheelock Properties Ltd. has offered to buy a local residential site on speculation land prices are set to rebound.

/...

[Ghost Dog]

25. Tokyo stocks rise sharply after Dow's continued rally

http://asia.news.yahoo.com/070507/kyodo/d8ovco080.html

(Kyodo) Tokyo stocks rose sharply Monday on the back of solid gains in U.S. shares Friday with the Dow Jones Industrial Average finishing at a record high for the fourth straight day.

The 225-issue Nikkei Stock Average gained 274.91 points, or 1.58 percent, on the day to 17,669.83 from Wednesday's close. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 28.81 points, or 1.69 percent, to 1,733.03.

Japan's financial markets were closed Thursday and Friday for national holidays.

The key Nikkei index began Monday with a gain of more than 200 points due to upbeat U.S. shares over the past several days, when Japan's markets were mostly closed for the Golden Week holidays.

In New York on Friday, the Dow rose 23.24 points, or 0.18 percent, from the previous day to 13,264.62. At one point, it reached a new intraday high of 13,284.53. The tech-heavy Nasdaq Composite Index gained 6.69 points, or 0.26 percent, to 2,572.15.

"Not only U.S. shares, but also Asian stocks performed well during the holidays in Japan, and Tokyo stocks reflected the good market sentiment," said Yuya Yamaguchi, manager of the equity marketing department of Daiwa Securities SMBC Co.

Hiroichi Nishi, equities chief at Nikko Cordial Securities Inc., said, "Compared with solid recovery in U.S. stocks and others in global markets from the global stock plunge at the end of February, Japanese equities have been lagging."

"Thus, dip-buying set in as many investors perceived that Tokyo stocks were low priced," he added.

The Nikkei rose more than 300 points at one point but later came down from the earlier highs with investors becoming tentative to wait for a series of Japanese corporate earnings reports to be released later this week, brokers said.

"After a round of buying, the market lacked major trading incentives which lulled the index," Daiwa's Yamaguchi said.

/...

[Ghost Dog]

26. Japan Economy Probably Cooled as Companies Spent Less

http://www.bloomberg.com/apps/news?pid=20601080&sid=aJjWj9hm0a20&refer=asia

May 7 (Bloomberg) -- Japan's economic growth probably cooled in the first quarter from the fastest expansion in three years as companies spent less in anticipation of a U.S. slowdown.

The world's second-largest economy grew at an annual 2.7 percent rate in the three months ended March 31, according to the median estimate of 20 economists surveyed by Bloomberg News, slowing from 5.5 percent in the fourth quarter. The report is due May 17 in Tokyo.

Japan's expansion, now in its sixth year, is likely to lose more steam as exports slow and four straight months of wage declines subdue spending by consumers. Toyota Motor Corp.'s U.S. sales fell for the first time in two years in April.

``Growth will moderate,'' said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management Co. in Tokyo. ``Export demand is already showing signs of slowing and consumer spending won't be able to accelerate with wages stagnant.''

Gross domestic product probably grew 0.7 percent from the fourth quarter, down from 1.3 percent. Domestic demand, which includes corporate and consumer spending and housing investment, probably added 0.4 percentage point to quarter-on-quarter growth, down from 1.2 percent in the final three months of last year.

Capital spending probably increased just 0.6 percent after a 3.1 percent jump in the fourth quarter as companies anticipate slower growth in the U.S., Japan's largest market. The U.S. economy expanded at a 1.3 percent annual rate last quarter, the slowest in four years.

/...

[Ghost Dog]

27. BOJ minutes show members back gradual rate hikes

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070507:MTFH43191_2007-05-07_07-49-55_T23797&type=comktNews&rpc=44

TOKYO, May 7 (Reuters) - Bank of Japan Policy Board members agreed at their March 19-20 meeting that the central bank should adjust interest rates gradually based on the economy and prices, while maintaining accommodative monetary conditions for the time being, the minutes of the meeting showed on Monday.

The nine-member board voted unanimously at the March meeting to keep monetary policy unchanged.

The BOJ has kept policy on hold since raising its key interest rate by a quarter percentage point to a decade-high 0.5 percent in February, which was the first rate hike since last July.

The March minutes showed many board members saw no significant change in the market's view of the future course of interest rates after the February increase.

"The market participants had adapted smoothly to the policy change," the minutes said.

One member said the BOJ could have waited to raise rates until April when it released its twice-yearly economic outlook report to explain economic and price conditions, but added that it was appropriate to maintain current monetary policy.

"Reversing policies frequently could cause unnecessary confusion in the market," the member said.

"The present policy interest rate of around 0.5 percent seemed warranted for maintaining and strengthening the proper functioning of the money market."

/...

[mojavekid]

29. Daily Pfennig 5/7/07: The Bermuda Triangle (of weak data)

http://www.kitcocasey.com/displayArticle.php?id=1367

OK... The currencies are rallying this morning with the euro leading the way, ratcheting up 1/4 cent so far... German Manufacturing Orders rose 2.4% in March, rising for a second consecutive month...

The reality of Friday's Jobs Jamboree must be finally entering into their trading equations! Did you see that awful showing of jobs created in April? Only 88K... With the unemployment rate inching up to 4.5%... That's not a good sign for the economy at all, but did you see the TV media report on it? Instead of showing the unemployment rate moving higher, they showed that 95.5% of the people in the U.S. have a job! Balderdash! What a crock! How can they get away with lies like that? When the Bureau of Labor Statistics (BLS) doesn't count people who have had their unemployment benefits expire... When the BLS doesn't count people in jail as unemployed, as if they even have a chance to get a job! Oh, and the list goes on and on...

But don't let the facts get in the way of a media-driven "feel good story"... Unemployment, in my opinion, is probably more in the neighborhood of 12%...

So... In the past week we had GDP fall to 1.8%, Personal Consumption (inflation) weaken, and this awful showing of job creation... Oh, there was some smoke-and-mirror manufacturing numbers in between, but I'm sure future revisions will see to making those reports fall in line with the overall trend, which is a weaker economy... Maybe even one heading toward a recession... But that's not a clear picture just yet.

I told my audience in Panama last week that I believe the economy is heading to the dumpster, and that the Fed would most likely go for a rate cut in August... The Fed Funds Futures are pricing in a rate cut in October... I think if Big Ben Bernanke and the Fed heads wait until October, it could be curtains, Batman!

I also told my audience last week that I believe the European Central Bank (ECB) will not raise rates this week, but prepare the markets for a June hike, while the Bank of England (BOE) will opt for a rate hike... And here's where I really went out on a limb... I said the BOE would make a statement and hike 50 BPS this week! That's right! I said 50 BPS! Let's just hope the Monetary Policy Committee at the BOE sees it the same way I do, eh?

more...

[Ghost Dog]

30. European shares dip as ABN AMRO, oil stocks weigh

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-05-07T105708Z_01_L07195366_RTRIDST_0_MARKETS-STOCKS-EUROPE-UPDATE-2.XML

LONDON, May 7 (Reuters) - European share indexes dipped on Monday, weighed on by a decline in ABN AMRO (AAH.AS: Quote, Profile , Research) and French oil group Total (TOTF.PA: Quote, Profile , Research), while a holiday in the UK kept a cap on activity.

ABN AMRO fell 2.2 percent after the company rejected a $24.5 billion offer for the Dutch bank's U.S. bank LaSalle from a consortium led by Royal Bank of Scotland (RBS.L: Quote, Profile , Research). Analysts had said the offer was below expectations and ABN AMRO's takeover still remained uncertain.

Merger activity has been a major driver in the broader European equities market this year, helped also in the last month by robust company results and optimistic outlooks. Monday's modest decline followed last week's 1.7-percent weekly gain.

"There are two drivers with regards to equities, the first is what is going on with the corporate profitability side ... we think earnings will come in better than expected, which should give the market a nice support ... the second is M&A activity," said AXA strategist Franz Wenzel, in Paris.

By 1042 GMT the DJ Euro Stoxx 50 index <.STOXX50E> was down 0.1 percent at 4,441.14. The pan-European FTSEurofirst 300 index <.FTEU3> was flat at 1,593.59 after earlier rising to 1,596.8, its highest since December 2000, for a gain of more than 7 percent so far this year.

/...

[Ghost Dog]

51. European shares flat in thin trade, ABN slides

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-05-07T153414Z_01_WEA2375_RTRIDST_0_MARKETS-STOCKS-EUROPE-CLOSE-URGENT.XML

FRANKFURT, May 7 (Reuters) - European shares closed flat on Monday, with rises for utility Suez (LYOE.PA: Quote, Profile , Research) and Deutsche Bank (DBKGn.DE: Quote, Profile , Research) offset by falls for bank ABN AMRO (AAH.AS: Quote, Profile , Research) as well as oil stocks Total (TOTF.PA: Quote, Profile , Research) and Royal Dutch Shell (RDSa.AS: Quote, Profile , Research).

Trading volumes were light due to a holiday in Britain.

The pan-European FTSEurofirst 300 index <.FTEU3> ended unofficially at 1,594.30 points, up 0.02 percent, after earlier rising to 1,596.77, its highest since December 2000.

France's CAC 40 index <.FCHI> rose 0.04 percent and Frankfurt's DAX <.GDAXI> gained 0.1 percent.

[mojavekid]

31. Golden Jackass: GOLD BREAKOUT DELAYED

http://www.financialsense.com/fsu/editorials/willie/2007/0504.html

All the conditions were there, a euro currency breakout, a British sterling currency breakout, and pronounced USDollar weakness. The sterling exchange rate even hit $2.00 to capture a tremendous amount of attention. The denials streamed in on how the weaker USDollar is not such a big deal, which always serves as a confirmation of a dire situation. Imagine a harlot on a London Piccadilly Square citing her extra 30 pounds around the haunches, her heavy paint to cover remnants of faded femininity, the complexion lost long ago, and her deep whisky voice, as she actually claims she still possesses her intense sexual spark. The crippled USDollar cannot buck the passage of time and inexorable destruction through unfettered monetary inflation abuse and colossal irresponsibility. The protection racket actually open the door for executive perks which dwarf whatever was condoned at Tyco with lavish Roman toga parties and gold bathroom fixtures. The world reserve currency is in the process of upchuck rejection.

GOLD SLAMMED BUT FIRM

Anyone wondering why gold has not made new highs during a time when the USDollar is teetering need only look to the official Euro Central Bank gold sales. Thanks to the Gold Anti-Trust Action (GATA) organization for their steady professional reporting on activity behind the scenes. Intrepid Blanchard reports the ECB sold a whopping 76 tonnes of gold bullion in the five weeks ending April 24-th, including 17 tonnes in the fifth week. That is a huge jump over their pattern in the last six months. They clearly waited for a time when the USDollar was exceptionally weak to dump gold. They call it dishoarding, in blatantly irresponsible fashion, since bullion is bank collateral for currency, the banking system, and their economy. These Keystone Gold Cops can only succeed in delaying the inevitable crescendo of a gold breakout. In the process they will destroy their currencys and banking systems. New highs for gold come soon!

In the spring of 2006, when the ECB last dumped a tremendous volume of gold bullion on the market, the gold price fell from $730 to $550. So the resilience of gold is vividly clear, powerfully strong. In the same cited five week time span during the most recent ECB gold dump, gold actually rose from $640 to $690, only to take a hit and find some temporarily stability near $680. When official ECB gold sales abate, look for gold to easily surpass the $700 mark and make new highs. Pressure is relentless and ECB sales will dwindle. Gold will continue to be disgorged from the vaults of these crippled and mindless central banks, intent on supporting an unsustainable fiat system. Experts believe Western banks are underwritten by gold pledges from the US Dept of Treasury in what is called in Orwellian style ‘deep storage gold’ to mean future mine output. But there is much more to the story.

more...

[ozymandius]

34. 10:45 update

Dow 13,289.57 Up 24.95 (0.19%)
Nasdaq 2,577.04 Up 4.89 (0.19%)
S&P 500 1,509.55 Up 3.93 (0.26%)
10-Yr Bond 4.634% Down 0.006
NYSE Volume 656,613,000
Nasdaq Volume 442,327,000

10:30 am : The Energy sector has recently turned the corner, which is noteworthy since oil prices are falling for a sixth straight session. However, Energy's leadership has not been enough to offset pullbacks in more influential areas.

As evidenced by the Nasdaq seeing its opening gains more than halved and decliners on the tech-heavy Composite recently edging past advancers, Technology now clinging to a miniscule 0.08% advance is contributing to the lack of conviction on the part of buyers. Brokerage stocks failing to take advantage of more M&A news is also acting as an offset to the stronger gains enjoyed at the onset of today's trading. DJ30 +24.94 NASDAQ +2.91 SOX -0.1% SP500 +3.40 NASDAQ Dec/Adv/Vol 1434/1307/318 mln NYSE Dec/Adv/Vol 1204/1663/202 mln

10:00 am : The indices are holding steady near their opening highs as the bulk of industry leadership remains positive. Of the nine sectors trading higher, Materials (+1.1%) is pacing the way; but that is to be expected since the 20% premium Alcoa is paying for Alcan earmarks Aluminum (+5.2%) as today's best performing S&P industry group.

Unfortunately for the bulls, the sector is the least influential on the S&P 500, holding only a 3.1% weighting. Telecom (+0.7%) and Utilities (+0.6%) round out today's top three; but again, their combined weighting of 7.4% is also why overall market gains remain modest in scope. DJ30 +33.50 NASDAQ +5.65 SP500 +4.61 NASDAQ Dec/Adv/Vol 1096/1467/142 mln NYSE Dec/Adv/Vol 951/1663/74 mln

[Gregorian]

43. THIRTEEN WHAT?!

Is this stock market thing a parody of our economy?


I'm not even comfortable with my money in the bank.

[ozymandius]

47. Today they're gonna party like it's 1999.

Everybody wants in because everybody's going in.

[ozymandius]

35. Delphi Says First-Quarter Loss Widens to $533 Million (Update2)

May 7 (Bloomberg) -- Delphi Corp., the biggest U.S. auto- parts maker, said its first-quarter loss widened to $533 million because of costs to cut jobs in its bankruptcy reorganization and a drop in sales to General Motors Corp.

The net loss was 95 cents a share, compared with 65 cents, or $363 million, a year earlier, Troy, Michigan-based Delphi said in a statement today. Sales fell 4.3 percent to $6.7 billion.

Delphi, spun off from GM in 1999, is buying out workers and selling off businesses under a plan to exit bankruptcy later this year. The company filed for Chapter 11 protection for its U.S. operations in October 2005 and is trying to reach an agreement with investors to help it emerge from bankruptcy.

The company is expanding its business with customers other than GM while trimming expenses to stem losses, Chief Executive Officer Rodney O'Neal said in the statement. ``These actions should enable Delphi to emerge from Chapter 11 as a technology leader with a competitive cost structure later this year.''

http://www.bloomberg.com/apps/news?pid=20601103&sid=a4lNK0sVVV94&refer=us

[capi888]

37. More people to get that 3rd job...

to support their family in Michigan. Then they get counted as a benefactor of a new job count!!!

[Roland99]

42. What's wrong with being "uniquely American"?

"You work three jobs? … Uniquely American, isn't it? I mean, that is fantastic that you're doing that." — (Bush) to a divorced mother of three, Omaha, Nebraska, Feb. 4, 2005

[capi888]

44. RIGHT Roland!!!

He is such an idiot! What happens to her kids, while she is trying to put food on the table!!! I know, as I was a single MOM of 4 kids. I was in the Hair Salon Business, and I was able to keep track of my kids, as the salon was their second home!!! But those that work out don't have the opportunity. Bush uses that as a good thing, while bragging about the increase in jobs. Maybe hairstyles, can be the new manufacturing business along with Burger King and McDonalds..Grrrrrr

[Hugin]

55. I call those, 'Potato Chip Jobs'...

Because ya can't just have one... ;)

[Roland99]

56. And with childcare programs being cut more and more, just how in the hell are...

people supposed to become self-sufficient by furthering their education or working to get a better job?!?!

[Roland99]

45. Dow industrials on track to match record streak from 1927

http://www.marketwatch.com/news/story/dow-industrials-track-match-record/story.aspx?guid=%7B2AA5E053%2D5991%2D4C23%2D94F7%2DA67426C73D1D%7D

The Dow Jones Industrial Average is on track Monday to match an 80-year record for the longest streak of gains with three declining sessions in between, if the blue-chip barometer can maintain gains through the close.

As of Friday's close, the Dow industrials had closed higher in 23 of the previous 26 sessions, dating back to March 29. The last time the index posted 24 gains in 27 sessions was starting on July 1, 1927, according to Dow Jones Indexes.

The index has climbed a total of 964.26 points, or 7.8%, during the streak, as of Friday's close.

The three biggest point gains during the streak have been 153.35 points on April 19, 135.95 points on April 25 and 128 points on April 3. The three sessions in which the Dow fell were April 11 (89.23 points), April 23 (42.58 points) and April 30 (58.03 points).

Just what we need. MORE parallels to the Roaring 20s. We all know how *that* ended!

[ozymandius]

48. 1927...27...27...

Hey! That's just two years before 1929, isn't it?

:sarcasm:

[fasttense]

58. Ok, someone has to say it....

Happy days are here again.....:)

[Roland99]

59. The skies above are clear again....

Oh wait? What's that black thing? LOOK! It's blotting out the sun!!!!

[ozymandius]

46. lunchtime check-in

Everybody gets a free pony today! :party: :woohoo: :eyes:
12:20
Dow 13,307.28 Up 42.66 (0.32%)
Nasdaq 2,575.01 Up 2.86 (0.11%)
S&P 500 1,509.43 Up 3.81 (0.25%)
10-Yr Bond 4.638% Down 0.002
NYSE Volume 1,147,241,000
Nasdaq Volume 772,267,000

12:00 pm : Stocks are trading modestly higher midday as some M&A news lends further support for the underlying bullish momentum that has lifted stocks for five consecutive weeks.

Per usual for a Monday, at least lately, today's most notable deal comes from Alcoa (AA 38.04 +2.38). The Dow component is soaring nearly 7%, helping the index climb even further into record territory, as investors applaud its decision to make a hostile cash and stock bid for rival Alcan (AL 81.27 +20.24). While the proposed blockbuster deal carries an enterprise value of about $33 bln and earmarks Aluminum as today's best performing S&P industry group (+6.7%); the Materials sector carries only a 3.1% weighting, making it the least influential on the S&P 500.

Investors are also finding comfort in some upbeat commentary from Warren Buffett. The billionaire investor said over the weekend at Berkshire Hathaway's annual shareholder meeting that it is open to making a "huge" acquisition of between $40 and $60 bln.

With economic data of late showing that inflation measures have eased a bit and that recession fears have abated, the absence of potentially troubling data scheduled this morning has also helped investors stay focused on the liquidity factor that continues to drive up valuations. However, with Fed officials meeting in two days to discuss monetary policy, it's also not surprising to see investors avoid making huge bets before an accompanying policy directive that will garner added attention Wednesday since it is a foregone conclusion that rates will remain unchanged for a seventh straight time. DJ30 +35.84 NASDAQ +3.96 SP500 +3.84 NASDAQ Dec/Adv/Vol 1443/1445/685 mln NYSE Dec/Adv/Vol

[Roland99]

49. NASDAQ Adv/Dec about 50/50. But at least it's positive.

NASDAQ has WAY lagged behind the Dow's triumphant rise of late.

[Hugin]

50. I'll have a Palomino...

They have a great resale. :bounce:

(and Trigger was a palomino!)

http://en.wikipedia.org/wiki/Palomino

[AnneD]

53. Dibs

on the mule, not all asses are on WS or in the WH.

[Hugin]

57. I already have a full team of those...

:rofl:

[Roland99]

63. 2:55pm - Holding steady

DJIA 13,314.19 +49.57 +0.37%
Nasdaq 2,573.45 +1.30 +0.05%
S&P 500 1,509.66 +4.04 +0.27%
Dow Util 530.54 +4.30 +0.82%
NYSE 9,828.15 +35.15 +0.36%
AMEX 2,254.06 +10.89 +0.49%
Russell 2000 832.51 -0.37 -0.04%
Semcond 504.60 -1.01 -0.20%
Gold future 690.30 +0.60 +0.09%
30-Year Bond 4.80% -0.01 -0.17%
10-Year Bond 4.64% -0.00 -0.04%

[TrogL]

64. 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

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

2007-04-09 Monday, April 9 0.867905 USD
2007-04-10 Tuesday, April 10 0.871156 USD
2007-04-11 Wednesday, April 11 0.873439 USD
2007-04-12 Thursday, April 12 0.880127 USD
2007-04-13 Friday, April 13 0.878812 USD
2007-04-16 Monday, April 16 0.884251 USD
2007-04-17 Tuesday, April 17 0.885504 USD
2007-04-18 Wednesday, April 18 0.885897 USD
2007-04-19 Thursday, April 19 0.886054 USD
2007-04-20 Friday, April 20 0.89071 USD
2007-04-23 Monday, April 23 0.890869 USD
2007-04-24 Tuesday, April 24 0.890631 USD
2007-04-25 Wednesday, April 25 0.897183 USD
2007-04-26 Thursday, April 26 0.892698 USD
2007-04-27 Friday, April 27 0.8967 USD
2007-04-30 Monday, April 30 0.903506 USD
2007-05-01 Tuesday, May 1 0.901876 USD
2007-05-02 Wednesday, May 2 0.901957 USD
2007-05-03 Thursday, May 3 0.903424 USD
2007-05-04 Friday, May 4 0.903424 USD
2007-05-07 Monday, May 7 0.907112 USD


Current values

Last trade 0.9086 Change
Previous Close 0.9044 Open 0.9077
Low 0.9071 High 0.9098


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

July soybeans closed lower on Monday and below the 20-day moving average crossing at $7.44 3/4. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are turning neutral hinting that a short-term top might be in or is near. Closes below the 10-day moving average crossing at 7.42 1/4 are needed to confirm that a short-term low has been posted. If July renews the rally off April's low, the 38% retracement level of the decline off February's high crossing at 7.62 1/4 is the next upside target. This afternoon's planting progress report showed that 10% of the soybean crop is now in the ground. This compares with the 5-year average of 17% planted.


Analysis

OK, I think the guy with the blather above is having a bad day. Yesterday I was cleaning out the back yard and found a loonie that had planted itself in my garden but it hadn't grown any, however some security-type folks in the US got all wierd and paranoid about the poppy-headed quarter so I guess I could try planting one of those and see what happens what with it being nanotech and all.

I'm seeing my nice safe stock sitting on the brink and the loonie going up and I'm so, so tempted. Somebody talk me out of it.

[UpInArms]

65. closing up shop time

Dow 13,312.97 48.35 (0.36%)
Nasdaq 2,570.95 1.20 (0.05%)
S&P 500 1,509.48 3.86 (0.26%)
10-Yr Bond 4.636% 0.004

NYSE Volume 2,555,674,000
Nasdaq Volume 1,754,469,000

4:20 pm : The indices finished mixed Monday as investors weighed another round of M&A activity and falling oil prices against growing concerns that stocks are overbought at current levels.

With notable quarterly results now few and far between to keep investors on the buying track, a proposed blockbuster deal from the very blue chip that officially kicked off the Q1 earnings season four weeks ago helped the Dow close in record territory again and log its 24th advance in 27 sessions. Alcoa (AA 38.57 +2.91) soared more than 8% as investors applauded its decision to launch a hostile bid for rival Alcan (AL 82.49 +21.46).

The proposed blockbuster deal carries an enterprise value of about $33 bln, easily earmarking Aluminum as today's best performing S&P industry group (+8.3%) and Materials as the day's best performing sector (+1.3%). However, even though all 10 S&P 500 sectors finishing higher on the surface speaks to the broad-based nature of yet another blue-chip advance, the fact that Materials only sports a 3.1% weighting is also why gains on the Dow and S&P 500 were minimal.

Investors also embraced some upbeat commentary from Warren Buffett. The billionaire investor said over the weekend at Berkshire Hathaway's annual shareholder meeting that it is open to making a "huge" acquisition of between $40 and $60 bln.

Oil falling for a sixth straight session, the commodity's longest losing streak since last September, was also noteworthy, as was the Energy sector's ability to still eke out a small gain and lend some additional leadership.

Crude for June delivery fell 0.7% to $61.47/bbl as traders unwound some more of the risk premium that has been priced into potentially inadequate gasoline supplies to meet summer driving demand. Nonetheless, Energy's 0.1% advance was mirrored by three other notable sectors, one of which was Technology. The latter sector's inability to exhibit more convincing leadership to the upside contributed to the Nasdaq's recent four-day winning streak being snapped.

With recent economic reports showing that inflationary pressures have eased a bit, alongside more evidence to sideline the worst of recession fears, the absence of any key data today to possibly upset the apple cart was also viewed as a net positive since it allowed investors to stay focused on the liquidity factor that continues to drive up valuations.

With Fed officials meeting just two days from now to discuss monetary policy, though, it also wasn't overly surprising to see investors avoid making any huge bets before an accompanying policy statement that will garner added attention.

As has been the case for weeks, the bulk of today's performance was again dictated by strength in a only handful of large-cap names. Alcoa, for one, accounted for nearly half of the Dow's 48-point intraday advance. DJ30 +48.35 NASDAQ -1.20 SP500 +3.86 NASDAQ Dec/Adv/Vol 1624/1428/1.67 bln NYSE Dec/Adv/Vol 1463/1781/1.26 bln

3:30 pm : So much for the Nasdaq keeping its head above water as a renewed wave of modest selling interest within the last 30 minutes pushes the index back below the flat line.

A reversal in the software space, coupled with further deterioration among several semiconductor stocks and networking names, have contributed to the tech-heavy Composite's pullback. The index's decline is minimal, though, and only relevant to note from a psychological standpoint since the underlying bullish tone has lifted every index virtually unabated since bottoming in mid March. DJ30 +40.17 NASDAQ -1.08 SOX -0.3% SP500 +3.16 NASDAQ Dec/Adv/Vol 1686/1362/1.35 bln NYSE Dec/Adv/Vol 1495/1739/1.02 bln