STOCK MARKET WATCH, Wednesday 1 June

[ozymandius]

Wednesday June 1, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 234 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 164 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 227 DAYS
DAYS SINCE ENRON COLLAPSE = 1284
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54


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




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90

AT THE CLOSING BELL ON May 31, 2005

Dow... 10,467.48 -75.07 (-0.71%)
Nasdaq... 2,068.22 -7.51 (-0.36%)
S&P 500... 1,191.50 -7.28 (-0.61%)
10-Yr Bond... 4.01% -0.07 (-1.64%)
Gold future... 418.90 -3.50 (-0.84%)

GOLD, EURO, YEN, Dollars and Loonie




PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Ike Iossif - WEEKLY CHARTS

Pay close attention to the "fan formation" in this chart. Notice that this major index since April '04 has been breaking trend-line support, rallying up against it, failing to get above it, breaking down, and then finding support at an ever lower trendline! The implication at this point is this: if the Dow can't overcome resistance and it turns back down again, assuming that the patterns holds, then the blue support line will be violated and the next support will be found along the green line. There is more room to the upside; resistance comes into play at 10625.

-cut-


SP500: Pay close attention to the "fan formation" in this chart. Notice that this major index since April '04 has been breaking trendline support, rallying up against it, failing to get above it, breaking down, and then finding support at an ever lower trend-line! The implication at this point is this: if the SP500 can't overcome resistance and it turns back down again, assuming that the patterns holds, then the blue support line will be violated and the next support will be found along the green line.

-cut-


NASDAQ: Stuck between major support and major resistance--what a "conundrum!" The point here is rather straightforward. If "purists" cared to take the price action "face value" and didn't try to "interpret" it through their own pre-existing bullish/bearish biases, NASDAQ's current predicament suggests that until there is a break above resistance or below support, the intermediate term trend has simply turned neutral from previously negative at best--in spite of the recent blistering advance.

more...

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

[UpInArms]

2. daily dollar watch

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

Last trade 88.07 Change +0.31 (+0.35%)

Dollar Could Find Resistance As Regional Manufacturing Surveys Give Little Hope To National ISM

http://www.dailyfx.com/index.php?option=com_content&task=view&id=1336&Itemid=39

US Dollar

It has been a great day for the US dollar even though most of the up-move occurred during last night’s Asian trading session and in this morning’s early European session. For those who were anxiously awaiting today’s Chicago PMI report and Consumer Confidence survey, there wasn’t much action from these reports thanks to the perfectly contrasting surprises in both releases. Chicago PMI followed the trend of its sister reports, falling from 65.6 to 54.1, which is the lowest level registered in 2 years. In fact, activity in Chicago’s manufacturing sector has slowed every month since last November. This means that the growth and recovery that we have seen thus far in the US economy is mainly concentrated within the service sector. At this point, it seems that tomorrow’s national ISM report is really at risk. Based upon the sharp moves lower in the regional releases, it would not surprise to us if ISM fell below 50, which is the threshold between growth and contraction. Yet amidst all of this, consumer confidence rebounded rather unexpectedly. The shift in sentiment appears to be mostly tied to the labor market and the prior retracement in oil prices. The next major catalysts for price action though probably won’t come until Friday’s non-farm payrolls report. Watch for our more detailed look ahead for NFPs, since there are quite a number of skeptics out there who believe April’s blockbuster number was nothing but an outlier.

Euro

With everyone back from their holidays, traders took the Euro down even further to eight-month lows in reaction to the disappointing developments in Europe. After France’s disastrous no vote, Prime Minister Jacques Chirac nominated his friend Dominique de Villepin to replace Jean-Pierre Raffarin as Prime Minister. Chirac also asked his nemesis Nicolas Sarkozy to rejoin the government in an unspecified capacity. Hopefully adding in his archrival and the President of the ruling UMP party to the government can help Chirac draft some much- needed reforms for his country. Unfortunately Eurozone economic data also didn’t lend much support to the euro either. French unemployment held near a five year high while German unemployment held near World War 2 highs despite the unchanged measure this month. Next up tomorrow is the Netherlands referendum. Yet at this point it is pretty much insignificant since there isn’t much of a likelihood that the Dutch will have a different mindset than the French. In fact, the latest polls indicate that there is an even higher margin in favor of a no vote in the Netherlands than there was in France this past weekend. The European Union has plunged into a crisis and it will be interesting to see how they crawl themselves out of it.

<snip>

Japanese Yen

The dollar is stronger against the yen despite some more encouraging Japanese economic data. It seems that even though the Japanese economy is gradually improving, it is doing so at a snail’s pace. Taking a look at last night’s data releases starting with the labor market, the jobless rate edged lower from 4.5% to 4.4% with the job to applicant ratio bumping higher to 0.94. Workers household spending rose 3.6% on a monthly basis thanks to an equally nice rise of 4.9% in incomes. Although household spending improved, on an annualized basis, spending in April of 2005 is still less than spending in the same month a year ago. The manufacturing sector also grew marginally faster in May, with the PMI index rising from 53.3 to 53.5. Finally, the Shoko Chukin small business confidence indicator increased from 47.9 to 48.8 in April.

...more...

Dollar Is About To Face A Retrace

http://www.dailyfx.com/index.php?option=com_content&task=view&id=1343&Itemid=39

EUR/USD – Euro longs finely received a break from the advancing dollar bulls and are currently getting ready to take back some of the territory lost to the greenback. A move to the upside by the euro longs will most likely be kept in check by the channel’s upper boundary at 1.2670, with advancing euro bulls aiming for the exotic options barrier at 1.2500, and stops placed by the dollar traders above the 1.2500 figure. Indicators remain in favor of the dollar longs with ADX (DMI) on the daily chart is at 32.66, signaling an existence of a strong trend. Stochastic remains extremely oversold on the daily chart at 7.93, which is indicative of strong trending conditions. The Stochastic on the dealer (4HR) chart is also oversold at 9.38, creating a possible retracement. RSI is oversold on the daily chart at 18.69 with the 4-hour chart RSI also oversold at 27.48. MACD remains below the zero line on both the daily chart and on the dealer 4(HR) chart. In case the reversal fails greenback longs will most likely resume their advance and push the pair toward the psychologically important 1.2000 figure.

<snip>

USD/JPY – Japanese Yen remains captivated by the 108.00 figure as the price action ground to a halt with neither side managing to gain an upper hand. As the Japanese Yen gets ready to move against the dollar longs, advancing JPY longs will most likely take out the stops placed below the 107.80, with a further advance breaking the exotic options barrier at 107.00. Indicators point to trending conditions, with ADX (DMI) at 25.42 continuing to signal a trending market. Stochastic remains overbought on the daily chart at 88.14, supporting a view that a trend might be in place. The Stochastic on the 4-hour chart is neutral at 69.28, thus providing yen bulls with more room to maneuver to the downside before the oscillator becomes oversold. RSI is treading below the overbought line at 69.49 on the daily chart, with dealer (4HR) chart RSI remaining neutral at 55.75. MACD continues to provide support to the dollar longs by remaining above the zero line on the daily chart, with MACD on the 4-hour chart continuing to tread along the zero line. If the yen bulls are continue to retreat a move to the upside will most likely see the USD/JPY rocket through 109.00 as strategically placed stops above the 108.88 and exotic options barriers in the 109.00-50 zone will most likely add to the momentum in case the dollar breaks the 109.00 figure. A break above the 109.00 will most likely see the pair aim for 110.00, a psychologically important figure and a significant zone for the exotic option strikes, with a high probability of a number of large stops placed by the institutional yen traders

...more...

Have a Great Day Marketeers!

[UpInArms]

20. Euro at multi-month lows as Dutch vote on EU

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38504.3811581366-836151904&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) - The euro remained at eight-month lows early Wednesday, as voters in Holland went to the polls for a referendum on the EU constitution. A rejection of a similar referendum by French voters on Sunday sparked concerns about the length of the integration process and weaker global growth. Holland also is expected to vote down the constitution, which should increase the jitters about the euro. In recent trades the euro was down 0.5% at $1.2245 and the dollar up 0.1% at 108.49 yen.

[UpInArms]

3. Today's Reports:

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

Jun 1	12:00 AM	Auto Sales		May	-	5.6M	5.7M	5.8M	-	
Jun 1	12:00 AM	Truck Sales		May	-	7.9M	7.8M	8.0M	-	
Jun 1	10:00 AM	Construction Spending	Apr	-	0.7%	0.7%	0.5%	-	
Jun 1	10:00 AM	ISM Index		May	-	53.0	52.2	53.3	-

[UpInArms]

29. U.S. April construction outlays up 0.5%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38504.4167187037-836154132&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Spending on U.S. construction projects increased 0.5% in April to a record $1.07 trillion annual rate, the Commerce Department estimated Wednesday. Economists were forecasting a gain of 0.7% in April. Outlays in March were revised higher to a 0.6% gain from 0.5% previously. Spending on private construction projects increased 0.8% in April to a record $828.9 billion annualized, led by a 1.3% increase in spending on nonresidential projects. Spending on private residential projects increased 0.6% in April to a record $595.6 billion. Spending on public sector construction projects fell 0.4% in April despite a record level of outlays by state and local governments.

10:00am 06/01/05 U.S. MARCH CONSTRUCTION SPENDING REVISED 0.6% VS. 0.5%

10:00am 06/01/05 U.S. APRIL PUBLIC CONSTRUCTION SPENDING DOWN 0.4%

10:00am 06/01/05 U.S. APRIL PRIVATE NON-RESIDENTIAL SPENDING UP 1.3%

10:00am 06/01/05 U.S. APRIL RESIDENTIAL CONSTRUCTION SPENDING UP 0.5%

[UpInArms]

32. YEAH for the housing boom! (or is that a bubble?)

US construction spending hits record high in April

http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=8666372§ion=investing

WASHINGTON, June 1 (Reuters) - U.S. construction spending jumped by a smaller-than-expected 0.5 percent in April but still reached another record high as low mortgage interest rates gave fresh wind to the long-running housing boom, a government report showed on Wednesday.

Construction outlays in April rose to a seasonally adjusted annual rate of $1.067 trillion from a revised $1.061 trillion in March, the Commerce Department said. Analysts were expecting a 0.7 percent increase.

Spending for all private construction, private residential construction, and for state and local public construction notched record highs in April. Construction spending has hit a new high every month since February 2004, while residential outlays have been hitting new monthly highs since November on persistently low interest rates.

<snip>

Federal Reserve officials have warned recently that fast-rising home values may be unsustainable in some areas.

...more at link...

[UpInArms]

30. U.S. MAY ISM MANUFACTURING INDEX 51.4%

10:02am 06/01/05 U.S. MAY ISM NEW ORDERS 51.7% VS 53.7% IN APRIL

10:01am 06/01/05 U.S. MAY ISM FACTORY INDEX BELOW 52.1% CONSENSUS

10:01am 06/01/05 U.S. MAY ISM MANUFACTURING INDEX 51.4% VS 53.3% APRIL10:02am 06/01/05 U.S. MAY ISM NEW ORDERS 51.7% VS 53.7% IN APRIL

[cosmicdot]

84. fifth straight decline

56.4 in January 2005
51.4 in May 2005

that's quite a drop in this leading economic indicator, isn't it?

http://www.ism.ws/ISMReport/PMIndex.cfm

with eception to a couple blips, the Purchasing Manager's Index (PMI) has been on a downward slope since July 2004 when it was 61.6

followed by
Aug 04 59.6
Sept 04 59.1
Oct 04 57.5
Nov 04 57.6
Dec 04 57.3
Jan 05 56.4
Feb 05 55.3
Mar 05 55.2
Apr 05 53.3
May 05 51.4


JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2005 56.4 55.3 55.2 53.3 51.4
2004 62.8 62.1 62.3 62.3 62.6 61.2 61.6 59.6 59.1 57.5 57.6 57.3
2003 52.8 49.9 46.4 46.1 49.8 50.4 52.5 55.6 55.1 57.7 61.3 62.1

I watched it back during Poppy's reign ... it was sinking ... and, then, he bombed Iraq; and, all the expedited/fast-tracked 'procurements' (Desert Shield) that occurred a month or so prior to Desert Storm (Nov/Dec) started showing up the following May.

```````````````````

The PMI is a composite index based on the seasonally adjusted diffusion indexes for five of the indicators (New Orders represents 30%, Production represents 25%, Employment represents 20%, Supplier Deliveries represents 15%, and Inventories represents 10%) by the varying weights.

A PMI reading above 50% indicates that the manufacturing economy is generally expanding; below 50%, that it is generally declining. A PMI over 42.7%, over a period of time, indicates that the overall economy, or Gross Domestic Product (GDP) is generally expanding, below 42.7%, that it is generally declining. The distance from 50% or 42.7% is indicative of the strength of the expansion or decline.

http://www.ism.ws/ISMReport/overviewofPMI.cfm

[UpInArms]

40. DaimlerChrysler May U.S. group sales fall 2%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38504.5012524884-836159601&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- DaimlerChrysler AG (DCX) said Wednesday that total U.S. group sales in May decreased 2% to 232,386 vehicles, compared with the year-ago period. Sales of the Chrysler Group, which includes Chrysler, Jeep and Dodge brands, fell 3% to 214,575 vehicles, and Mercedes-Benz USA's sales fell 2% to 17,811 from last year.

11:59am 06/01/05 CORRECT: DAIMLERCHRYSLER MAY U.S. SALES DOWN 2%

11:40am 06/01/05 MERCEDES-BENZ MAY U.S. SALES DOWN 2% AT 17,811

[UpInArms]

43. Ford May Sales DOWN 11%

12:06pm 06/01/05 FORD MAY U.S. SALES DOWN 11% AT 283,994

[UpInArms]

70. Ford U.S. sales down 12 straight months

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=8668410

DETROIT (Reuters) - Ford Motor Co. (F.N: Quote, Profile, Research) reported its 12th straight month of lower U.S. vehicle sales on Wednesday, as high gasoline prices and flagging demand for its fuel-thirsty sport utility vehicles cost it more market share that went to Asian rivals.

The sales slump, Ford's longest in recent memory, casts another shadow over Detroit's struggling automakers as they grapple with brutal competition and the impact of last month's credit rating downgrades to "junk" status.

Both Ford and larger rival General Motors Corp. (GM.N: Quote, Profile, Research) have been losing U.S. sales even as more nimble Asian manufacturers, led by Toyota Motor Corp. (7203.T: Quote, Profile, Research) , report strong gains.

Nissan Motor Co. Ltd. (7201.T: Quote, Profile, Research) , Japan's second-largest carmaker, said its May sales rose 15.5 percent, a new record or the month.

...more...

Thoughts to the tune of "Baby Won't You Drive My Car" :rofl:

[UpInArms]

44. Volvo May Sales DOWN 8.6%

12:09pm 06/01/05 VOLVO MAY U.S. SALES FALL 8.6% TO 10,826

[UpInArms]

46. Porsche May Sales UP 25%

12:10pm 06/01/05 PORSCHE CARS NORTH AMERICA MAY U.S. SALES UP 25%

[UpInArms]

58. Mazda May U.S. sales DOWN 3.2%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38504.5337503357-836161571&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Mazda North America on Wednesday posted a 3.2% decline in May U.S. sales to 26,657 vehicles. Truck sales plunged 38.3% to 5,524 while car sales gained 13.7% to 21,133. The automakers's top-selling Mazda3 sporty sedan turned in a 33.2% climb to 12,086 vehicles while the Tribute was the only Mazda truck to log increased year-over-year sales.

[UpInArms]

60. General Motors May U.S. sales fall 5%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38504.5826045486-836164383&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- General Motors (GM) on Wednesday posted a 5% decline in May U.S. sales to 393,147, adjusted for two fewer sales days this year. Truck sales fell 7% to 238,471 while car sales fell 1% to 154,726, buoyed by new vehicle launches from Chevrolet and Cadillac. GM left its second-quarter North America production forecast unchanged at 1.25 million vehicles, a 10% decline from last year. Third-quarter production was pegged at 1.1 million vehicles, down 9% from a year earlier.

1:50pm 06/01/05 GM U.S. MAY CAR SALES FALL 1.4% TO 154,726

1:50pm 06/01/05 GM U.S. MAY TRUCK SALES FALL 6.6% TO 238,471

1:48pm 06/01/05 GM US. MAY SALES FALL 4.7% TO 393,197

(edited to correct headline, add link and blurb)

[UpInArms]

69. GM to offer steep new U.S. incentives-dealers

http://news.yahoo.com/news?tmpl=story&cid=568&e=15&u=/nm/autos_gm_incentives_dc

DETROIT (Reuters) - General Motors Corp., suffering from a protracted slump in its U.S. auto sales, will announce on Wednesday that the same vehicle discounts available to its employees will now be offered to the general public, dealers said.

The new consumer incentives program is aimed at trimming bloated inventories of unsold cars and trucks and reversing the decline in sales and market share that prompted the world's largest automaker to report a massive $1.1 billion loss in the first quarter.

GM dealers based in Michigan said the employees discounts would be offered in addition to other incentives that include cash rebates, giving consumers thousands of dollars off the sticker price of virtually every 2005 model car and truck that GM sells.

GM and rival Detroit-based automaker Ford Motor Co. are both expected to report declines in May sales later on Wednesday. Ford has said it too was raising cash incentives on some of its slower-selling vehicles.

But GM has led Detroit's profit-gouging price war since it launched interest-free loan deals to draw customers into showrooms after Sept. 11, 2001, attacks on the United States.

...more...

Coming Soon! FREE cars and trucks!

[UpInArms]

79. GM offers employee deals to everyone

http://www.marketwatch.com/news/story.asp?guid=%7B819BF87B%2D9176%2D4724%2DAA04%2DDC90775964A8%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- General Motors, in another effort to stem steady sales declines, said Wednesday that from now until July 5 all new car and truck buyers will get the same deal as the automaker's employees.

"The 'GM Employee Discount for Everyone' provides very simple, very compelling prices for consumers and clarity regarding the final purchase price," said Brent Dewar, GM North America's head of marketing. "We believe it will cut through the clutter of all the other offers currently in the market."

The deal includes all 2005 GM cars and trucks, except for the Chevy Corvette and GMC medium-duty trucks, and works with most other incentives currently available. Listen to analyst's interview on GM.

During a conference call discussing May U.S. sales results, Paul Ballew, sales analyst for GM, responded to questions regarding the financial impact of such a move.

"You will find that we are more aggressive in terms of our pricing in the month of June, but when you look at it, I don't think you will see it unreasonable," he said.

...more...

[UpInArms]

71. Toyota May Sales UP 15.5%

from the link in Post #70:

Nissan Motor Co. Ltd. (7201.T: Quote, Profile, Research) , Japan's second-largest carmaker, said its May sales rose 15.5 percent

[UpInArms]

76. Big 3 car makers' May sales decline

http://www.marketwatch.com/news/story.asp?guid=%7B69DC074D%2D4CCD%2D47D1%2D84C1%2DE619C45ADAE7%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) - Ford Motor, General Motors and DaimlerChrysler on Wednesday all turned in lower May U.S. sales, setting the tone for what looked to be mildly disappointing monthly results for the automotive industry.

"May was not nearly as robust in the auto-sales sector as it was in March and April," said Ford sales analyst George Pipas in a conference call following the results.

Analysts polled by Thomson First Call expect to see a seasonally adjusted annual rate of sales, on average, of 16.6 million vehicles, down from 17.7 million a year ago.

...more...

[UpInArms]

4. AIG's goose cooked - caught cooking books

Insurer backs away from 15% a year growth target

http://www.marketwatch.com/news/story.asp?guid=%7B9C24F196-CA94-405D-B3A3-E2499051A39B%7D&siteid=google

SAN FRANCISCO (MarketWatch) -- American International Group Chief Executive Martin Sullivan said Tuesday that the giant insurer won't give earnings guidance anymore and that its profit will be more volatile in the future.

"We remain committed to achieving above-average earnings growth, but we will not be providing guidance," Sullivan said during a conference call with analysts and investors Tuesday. "Earnings volatility will occur."

Sullivan's comments came after AIG (AIG: news, chart, profile) restated five years of earnings and cut its 2004 net worth by more than $2 billion on Tuesday to correct accounting schemes that were designed to manipulate its results. See full story.

Before AIG's accounting came under regulators' microscopes this year, the company was renowned for steady earnings growth in an industry that's regularly tested by big losses.

The insurer often reiterated a long-term goal of 15% annual growth in operating profit. That predictability meant AIG shares were valued more highly than most rivals.

Now that AIG has admitted some of its accounting techniques were used to massage results, some analysts expect less impressive growth in the future.

...more...

[ozymandius]

15. Good morning UIA.

:donut:

I wonder if Warren Buffett knew about these accounting lapses when he bought a stake in AIG. He tends to be very thorough.

Ozy :hi:

[UpInArms]

18. Good morning to you, Ozy!

:hi:

I remember reading an interview with Buffett several years ago where he was talking about the reinsurance business that he had acquired - it seems that he ended up with it as a part of another deal and he seemed quite concerned about how it would be a problem and there were exposures that he didn't like and that he had spent quite a bit of money attempting to clean up its books and limit his exposure to a variety of problematic issues. He was not very specific (I guess that would have been a give-away), but he seemed genuinely concerned about how the reinsurance business was done and hedged and accounted for.

[UpInArms]

5. Amerindo Fund managers ousted for defrauding investors

http://www.marketwatch.com/news/story.asp?guid=%7B5C9802BF%2DDF4D%2D47D6%2DB9B0%2D4954328F1C65%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Legal troubles for Alberto Vilar and Gary Tanaka are evidently just beginning, but investors in their technology-stock mutual fund are long suffering.

Vilar and Tanaka were removed as managers of the Amerindo Technology D Fund (ATCHX: news, chart, profile) , according to a Securities and Exchange Commission filing Tuesday. The fund board's action on Friday came one day after the two men were arrested on federal charges of defrauding investors and stealing $5 million from an unnamed client. See related story.

The board also shut the fund to new investment and launched a search for a new manager to run the troubled portfolio.

Morningstar Inc. isn't waiting for further developments. On Tuesday, the influential investment research firm advised Amerindo Technology shareholders to sell.

"Charges of fraud against Amerindo Technology's managers are just the most obvious reason to avoid it," said analyst Dan Lefkovitz in a written report. "We're worried that impending redemptions will only exacerbate the fund's problems by forcing it to sell out of positions."

...more...

[UpInArms]

6. Semtech shares stumble after report

http://www.marketwatch.com/news/story.asp?guid=%7B50FA069C%2D74B0%2D410E%2D8697%2D033CDCFB97A9%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Shares of Semtech Corp. fell more than 3% in Tuesday's late session after the chipmaker posted a sharp decline in its quarterly profit as revenue came in lower than analysts expected.

The Nasdaq-100 After Hours Indicator, which tracks the evening action of the tech-heavy index's leading shares, was up 0.45 points to 1,543.08.

Semtech Corp. shares (SMTC: news, chart, profile) fell to $17.64. The company said fiscal first-quarter earnings fell to $10.8 million, or 14 cents a share, from $14.8 million, or 19 cents a share, in the comparable period a year ago. Revenue declined to $54.2 million from $61.9 million a year earlier.

The company was expected to earn 14 cents a share on revenue of $56 million, according to a Thomson First Call survey. Semtech, which makes analog and mixed signal semiconductors, said it expects second-quarter earnings of 14 cents a share.

...more...

[UpInArms]

7. When all else fails, blame the weather

Weather saps retailers' sales in final week of May

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38504.3401259491-836149145&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- U.S. retail chains' same-store sales slipped 1.0% in the week ended May 28 compared to the prior week, according to the latest data compiled by the Interational Council of Shopping Centers and UBS. Compared to the same week last year, retailers' same-store sales clocked in higher by 3.1%. While conceding that unseasonably cool weather hit retailers' results, "the industry performed reasonably well over the past four weeks," said Mike Niemira, ICSC chief economist. The industry group affirmed its forecast calling for monthly sales growth of 3.0% to 3.5% on a same-store basis.

[UpInArms]

9. US chain store sales fall in the latest week

http://www.reuters.com/financeNewsArticle.jhtml?jsessionid=R4N54JVIHDNDMCRBAEOCFEY?type=economicNews&storyID=8664452§ion=investing

NEW YORK, June 1 (Reuters) - U.S. chain store retail sales fell in the latest week, taking the index to its lowest reading in nine weeks as cooler weather curbed consumers purchases of seasonal goods, retail report said on Wednesday.

Sales fell 1.0 percent in the week ended May 28, compared with a 0.2 percent decrease the previous week, the International Council of Shopping Centers and UBS said in a joint report.

Compared with the same week a year ago, sales momentum also slowed to a 3.1 percent increase after a 3.7 percent rise the preceding week.

"Although there was a warm blast of weather for Memorial Day, the month as a whole was cooler than normal and the coldest May in at least a dozen years" said Michael Niemira, ICSC's chief economist and director of research.

"As a result, consumers' demand for hot weather goods such as air conditioners, fans, pool supplies, swim suits and the like was curbed. However, with the industry facing a tough comparison in May 2005 against May 2004's 5.7 percent increase and less than favorable weather, the industry performed reasonably well over the past four weeks," Niemira added.

...more...

(edited to fix link)

[ozymandius]

25. Retail chain stores sales fall due to alien ant invasion

Excuses... excuses....

[UpInArms]

8. Fairchild Semiconductor trims revenue view

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38504.344453912-836149390&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Fairchild Semiconductor (FCS) on Wednesday said it expects sales to be flat to down slightly, reduced from its earlier description of "flattish" sales. Orders in May were "slightly lower" than April and below expectations, the compay said. Fairchild reduced its forecast for gross margins to now be 100 - 200 basis points lower sequentially, compared to the earlier flat-to-slightly higher view. Shares of Fairchild Semiconductor fell 10 cents to $14.30 on Tuesday.

8:02am 06/01/05 FAIRCHILD SEMI SEES Q2 MARGINS DOWN 100-200 BP VS Q1

8:03am 06/01/05 FAIRCHILD SEMI REVISED OUTLOOK DUE TO WEAK ORDERS

8:03am 06/01/05 FAIRCHILD SEMI SAYS INVENTORIES HIGHER THAN NORMAL

8:01am 06/01/05 FAIRCHILD SEMI CUTS Q2 OUTLOOK

8:02am 06/01/05 FAIRCHILD SEMI NOW SEES Q2 SALES FLAT TO DOWN SLIGHTLY

[UpInArms]

10. U.S. mortgage applications decrease last week-MBA

http://www.reuters.com/financeNewsArticle.jhtml?jsessionid=R4N54JVIHDNDMCRBAEOCFEY?type=economicNews&storyID=8664330§ion=investing

NEW YORK, June 1 (Reuters) - Applications for U.S. home mortgages fell last week due to decreasing purchasing and refinancing activity even as mortgage rates eased, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity decreased 2.8 percent to 709.1, partially offsetting the previous week's 4.3 percent gain.

The MBA's seasonally adjusted index of refinancing applications dropped 1.2 percent to 2142.1, after rising 6.4 percent the prior week.

The MBA's purchase index, a gauge of loan requests for home purchases, fell 4.1 percent to 462.7, after climbing 2.8 percent the previous week.

According to the MBA, fixed 30-year mortgage rates averaged 5.61 percent last week, excluding fees, down 2 basis points from 5.63 percent the previous week. Rates are lower than early April, when the fixed 30-year mortgage was at 5.91 percent.

...more...

(edited to fix link)

[UpInArms]

11. 10-YR. TREASURY YIELD OF 3.974% IS LOWEST SINCE OCTOBER

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7BDEDEEAB6-BD12-452F-B86F-27B930BA0ABC%7D&

NEW YORK (MarketWatch) -- Treasurys rose Wednesday, sending yields to multi-month lows, bolstered by renewed dollar strength amid political and economic uncertainty in Europe. The yield on the benchmark 10-year note fell to as low as 3.974%, its lowest level since October 27. The yield stood at 4.00% at Tuesday's close.

[UpInArms]

16. U.S. Treasuries investors turn more neutral-survey

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8665655§ion=investing

NEW YORK, June 1 (Reuters) - U.S. Treasuries investors turned more neutral this week on talk of a shortage in cash notes and worries about the long-term economic integration of the euro zone, according to a survey released on Wednesday.

Investors polled on Tuesday who said they were net neutral on Treasuries climbed to 45 percent from 39 percent a week ago. The neutral reading is the highest since early April, J.P. Morgan Securities shows in its weekly poll.

Even the bank's active clients, which includes market makers and hedge funds that usually make risky bets, favored a neutral position in Treasuries. Eight percent of these clients said they were neutral, up from 6 percent a week earlier.

Yields on 10-year Treasuries (US10YT=RR: Quote, Profile, Research) fell to 5-month lows early Wednesday, buoyed by flight-to-safety demand for U.S. assets as the euro tumbled to a 7-1/2 month low against the dollar.

...more...

[UpInArms]

26. Fed adds temp reserves through overnight system RPs

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8666086§ion=investing

NEW YORK, June 1 (Reuters) - The Federal Reserve said on Wednesday it added temporary reserves to the banking system through overnight system repurchase agreements.

Fed funds last traded at 3.063 percent, above the Fed's 3.00 percent target for the rate on overnight loans between banks.

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

[UpInArms]

35. US Treasuries rally after ISM report comes in soft

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8666628§ion=investing

NEW YORK, June 1 (Reuters) - - U.S. Treasury debt prices rose after the influential Institute for Supply Management survey on the U.S. manufacturing sector came in below expectations and at its weakest level in about two years.

The 10-year note (US10YT=RR: Quote, Profile, Research) , building on earlier gains, was 21/32 higher to yield 3.907 percent, taking out a 3.93 percent low put in place in October of 2004. The yield was the lowest since April of 2004.

Two-year notes (US2YT=RR: Quote, Profile, Research) were 6/32 higher and yielding 3.49 percent compared with 3.58 percent late on Tuesday.

The spread between the two- and 10-year notes was at 40 basis points, 1 point narrower than late on Tuesday.

The Institute for Supply Management said factory activity in May came in at 51.4, just below expectations for a 52.1 reading and below 53.3 in April.

...more...

[ozymandius]

37. Julie... Oh YOOHOO Julie... Whatta you make of this?

To me - this is a bit counter-intuitive.

[UpInArms]

38. Futures market sees Fed stopping at 3.50% (WTF?)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38504.4747625-836157806&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- The Federal Open Market Committee will likely boost short-term rates two more times before pausing, according to the futures market in Chicago. The chances of a third rate hike in November plunged from 58% to 6% on Wednesday following a less-than-stellar reading on the Institute for Supply Managment index and comments from Dallas Fed President Richard Fisher suggesting the FOMC is nearly at the end of its tightening cycle. The federal funds futures market is pricing in a 96% chance of a rate hike at the end of June to 3.25% and about a two-in-three chance of a hike in August to 3.50%.

[ozymandius]

52. This is a gimme to the housing industry.

The Fed knows that if housing goes the way of manufacturing there will be no place to hide the ugliness of it all. Every piece of rhetoric that has disguised the illusion of prosperity will be blown. Real estate equity is all they've got left to keep money flowing through the system.

[UpInArms]

54. looks like they're hoping that the euro will continue to weaken

with the French and Holland no votes - so that it won't cost them on the dollar index -

generally that type of announcement would send it spiralling out of control :shrug:

Last trade 88.15 Change +0.39 (+0.44%)

Settle 87.76 Settle Time 16:35

Open 87.66 Previous Close 87.76

High 88.18 Low 87.54

Last tick: 2005-06-01 12:09:19 ET
30-min delayed quote.

[UpInArms]

72. House prices could fall 6% if rates rise

http://www.marketwatch.com/news/story.asp?guid=%7B433AEDA3%2D84E6%2D4F9D%2D9157%2DFCBED8767611%7D&siteid=mktw

WASHINGTON (MarketWatch) - U.S. home prices could fall by as much as 6% if the average mortgage rate rose to 6.5% as expected early next year, a Federal Reserve economist has concluded.

Much of the increase in home prices over the past 10 years can be explained largely by the drop in mortgage rates and the increase in incomes, Richard Rosen, senior economist at the Chicago Federal Reserve Bank, wrote in a recent paper. Read his paper.

Earlier Wednesday, a federal agency reported that U.S. housing prices had risen 12.5% in the past year and 50.5% in the past five years. See full story.

Despite huge price increases in the past 10 years, the proportion of income needed to make the average mortgage payment has barely budged. It now takes 15.8% of the median household income to pay the mortgage on the home with the median sales price, he said.

"If potential homeowners determine the price they are willing to pay by the size of the mortgage payment it generates, then lower interest rates can lead to higher prices," Rosen said.

Similarly, higher interest rates would lead to lower prices, assuming that potential buyers aren't willing to spend a greater proportion of their income on the monthly payment.

...more...

Burnin' Down the House now playing...

[amandabeech]

48. The Euro's in the tank after the French "non" and the anticipated

Netherlands "nee." What's more, there was a Euro meeting today or yesterday on the topic of extreme differentials in growth rates among countries in Euroland. A private sector economist even brought up the possibility of the withdrawal of the Euro and the return of individual countries' currencies. Of course, I can't find the site now, but I read it earlier today.

In other news, yesterday on CNBC Art Cashin muttered something about the German dissenters reviving their call for a popular referendum on the EU Constitution, which would mean a change in the German basic law. A serious revisit to the issue could cause splits in the German political parties, since there are factions in most which oppose and others which support. My understanding is that if a referendum were held, a "no" vote would be a real possibility.

All this uncertainty in Europe might be causing a flight to a temporarily safe haven until things settle out.

Thanks to all of you for such a great daily posting from a long-time lurker.

[UpInArms]

50. Hiya amandabeech!

:hi:

Come on it, the water's fine!

[amandabeech]

57. Thank you. I'll come in for a dip more often! n/t

[UpInArms]

12. Enron execs seek case dismissal

Former officers contend prosecutors failed to prove a conspiracy at the defunct energy company.

http://money.cnn.com/2005/06/01/news/midcaps/scandal_enron.reut/

HOUSTON (Reuters) - Five former executives at Enron Corp.'s Internet unit asked a federal judge on Tuesday to dismiss several criminal charges against them, arguing prosecutors had failed to prove they were part of a conspiracy at the failed energy company.

The move came after prosecutors finished presenting witnesses last week in their case against the five men, who are charged with lying about Enron Broadband Services' (EBS) prospects and bolstering its revenues through bogus bookkeeping.

Lawyers for several of the defendants argued the government's case centered on a presentation to analysts and a contested accounting maneuver, but they said prosecutors did not show all five had participated in a master plan to defraud investors.

"We can't ask the jury to guess which of the schemes is incorporated" in the charges, Edwin Tomko, lawyer for Rex Shelby, the former EBS senior vice president for engineering operations, told U.S. District Court Judge Vanessa Gilmore.

<snip>

The five are charged with conspiracy and fraud. Hirko, Shelby and Yeager are also charged with money laundering and insider trading.

...more...

[UpInArms]

13. Whitehall Jewellers posts wider quarterly loss

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8664199§ion=investing

NEW YORK, June 1 (Reuters) - Retailer Whitehall Jewellers Inc. (JWL.N: Quote, Profile, Research) on Wednesday reported a wider first-quarter loss, hurt by declining sales.

The loss reached $4.9 million, or 35 cents a share, in the quarter ended April 30, compared with a loss of $3.7 million, or 27 cents a share, a year earlier.

Earlier this month the Chicago-based retailer said quarterly sales at stores open at least a year, a key measure of retail performance, fell 3.8 percent in the quarter.

...more...

To the tune of: This diamond ring doesn't shine for me anymore :D

[UpInArms]

14. pre-opening blather

briefing.com

9:00AM: S&P futures vs fair value: +0.5. Nasdaq futures vs fair value: +0.5. Futures trade pulls back slightly, now suggesting a relatively flat open for the cash market... However, the release of economic data after the open could set a more definitive tone to trading... At 10:00 ET, May ISM Index (consensus 52.2) and April Construction Spending (consensus +0.7%) will be released while May Auto Sales (consensus 5.7 mln) and Truck Sales (consensus 7.8 mln) are also expected during market hours

8:30AM: S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: +1.5. Still shaping up to be modestly higher open for the indices as futures indications hold steady above fair value... Note that the early favorable bias also comes on the first trading day of the month, typically a strong day for stocks as new inflows hit the market... Meanwhile, homebuilders should be in focus after Hovnanian (HOV) beat forecasts by a penny but issued mixed guidance and UBS upgraded Ryland Group (RYL) to Buy

8:00AM: S&P futures vs fair value: +1.3. Nasdaq futures vs fair value: +0.5. Futures market versus fair value suggesting a slightly higher open for the cash market... Contributing to an improved sentiment in the wake of yesterday's weakness has been another upbeat note on Google (GOOG) - CSFB has raised its price target to $350... Perhaps also providing a floor of support for stocks has been strong follow-through buying in bonds, which has knocked yields on the 10-yr note down to 3.95%

ino.com

The June NASDAQ 100 was slightly higher overnight due to light short covering as it consolidates above the 10-day moving average crossing at 1542.20. Stochastics and the RSI are overbought and are neutral to bearish hinting that a short-term top might be in or is near. Closes below the 10-day moving average crossing at 1542.20 would signal that the short covering rally off April's low has come to an end. If June extends this spring's rally, the March high crossing at 1564.50 is the next upside target. The June NASDAQ 100 was down 1.00 pts. at 1546 as of 5:45 AM ET. Overnight action sets the stage for a steady to higher opening by the NASDAQ composite index later this morning.

The June S&P 500 index was higher overnight due to short covering as it consolidates above the 10-day moving average crossing at 1193.53. However, stochastics and the RSI are overbought and are turning neutral to bearish hinting that a short-term top might be in or is near. Closes below the 10-day moving average crossing at 1193.53 would signal that a short-term top has been posted. If June extends this month's rally, the 75% retracement level of the March-April decline crossing at 1209.52 is the next upside target. The June S&P 500 Index was up 1.50 pts. at 1193.80 as of 5:50 AM ET. Overnight action sets the stage for a steady to higher opening when the day session begins later this morning.

[ozymandius]

17. pre-open blather

Ha! Should've checked before I clicked the 'post' button.

:silly:

[UpInArms]

22. it was a shiny coin

:)

[ozymandius]

19. Manufacturing, Auto-Sales Data Due Out

Wall Street Investors Waiting on Manufacturing and Construction Data, As Well As May Auto Sales

NEW YORK (AP) -- U.S. stock futures are in positive territory Wednesday ahead of manufacturing and construction data and May auto sales reports. Economists also are expecting a modest slide in the Institute for Supply Management's manufacturing index in May.

-cut-

The Institute for Supply Management is due to release the May manufacturing report at 10 a.m. EST. Economists expect a decline to a reading of 52.0 in May for the ISM manufacturing index, compared with 53.3 in April.

The Commerce Department is scheduled to release construction spending data for April, also at 10 a.m. Economists are expecting a 0.6 percent increase in construction spending in April, up from a 0.5 percent boost in March.

Major auto makers report their May domestic sales Wednesday. Sales at the two largest U.S. auto makers, General Motors and Ford, are expected to show a decline, as overall U.S. auto sales come in about even with a year ago. Chrysler Group, the U.S. unit of DaimlerChrysler, likely will show a sales increase for the month, along with most foreign auto makers.

more...

http://biz.yahoo.com/ap/050601/wall_street.html?.v=2

By describing sales as "even" - isn't this a euphemism for "flat"?

[ozymandius]

21. Crude prices climb past $52 mark

VIENNA, Austria (AP) — Crude oil futures climbed past the $52 mark on Wednesday, suggesting that expectations for modest builds in crude and gasoline supplies in the next U.S. inventory data report were already factored into the market.

Analysts said the report would have to show substantial growth in stocks to bring prices down, adding that the hospitalization of Saudi ruler King Fahd might also have been putting upward pressure on prices over the past few days. Longer term, they said the market would be choppy until the fall, with its increased heating oil demands driving up prices.

Light, sweet crude for July was up 43 cents to $52.40 a barrel on the New York Mercantile Exchange in Europe. Heating oil rose more than 1 1/2 cents to $1.4655 a gallon, while unleaded gas rose a nearly a cent to $1.4764 a gallon.

-cut-

Oil prices are about 23 percent higher than a year ago.

more...

http://www.mlive.com/newsflash/business/index.ssf?/base/business-41/111762947678370.xml&storylist=autonews2

[ozymandius]

23. U.S., EU declare biggest trade war

The U.S. and the European Union launched the largest trade war ever Tuesday, pitting the interests of two giant aircraftmakers as they vie for control of the lucrative market for commercial jetliners.

The U.S. launched its case Tuesday at the World Trade Organization in the face of mounting evidence that European governments plan to provide as much as $1.7 billion in low-interest loans to help Airbus launch its newest plane, the A350.

-cut-

However, the EU left out of its case an issue that Airbus has complained loudly about: $1.6 billion in subsidies expected to come from Japan to support Japanese suppliers that will build the wing section of the 787. Trade experts speculated the EU backed away because it feared opening the issue, since many European suppliers receive government support.

The huge dispute between two of the world's largest trading partners threatens to disrupt relations between the U.S. and EU at a time when they need to work together to advance their mutual interests. They are seeking to complete the latest round of World Trade Organization negotiations and deal with the sharp rise in Chinese textile imports, the theft of intellectual property and other concerns.

more...

http://www.chicagotribune.com/business/chi-0506010216jun01,1,2820037.story?coll=chi-business-hed

[ozymandius]

24. markets are open for bidness

9:33
Dow 10,471.39 +3.91 (+0.04%)
Nasdaq 2,068.74 +0.52 (+0.03%)
S&P 500 1,191.59 +0.09 (+0.01%)
10-Yr Bond 39.62 -0.44 (-1.10%)

NYSE Volume 33,317,000
Nasdaq Volume 56,170,000

[UpInArms]

28. 9:54 EST numbers and (GOOD NEWS!) blather (LOL!)

Dow 10,471.17 +3.69 (+0.04%)
Nasdaq 2,071.43 +3.21 (+0.16%)
S&P 500 1,192.66 +1.16 (+0.10%)
10-Yr Bond 3.956 -0.50 (-1.25%)

NYSE Volume 160,558,000
Nasdaq Volume 191,629,000

9:40AM: Market opens in lackluster fashion ahead of economic data that could show manufacturing growth in May slowed for a sixth consecutive month... Providing the lack of confidence around the upcoming data (10:00 ET) has been recent weakness in several regional manufacturing gauges (i.e. NY Empire Index, Philly Fed and Chicago PMI)... On a more positive note, should the May ISM index (consensus 52.0) check in below 50, further Fed tightening could come to an end sooner rather than later, since the Fed has never raised rates when the data reports below 50...

:wtf:

[UpInArms]

31. 10:05 EST numbers and blather (WHEE!)

Dow 10,506.20 +38.72 (+0.37%)
Nasdaq 2,078.26 +10.04 (+0.49%)
S&P 500 1,196.83 +5.33 (+0.45%)
10-Yr Bond 3.954 -0.52 (-1.30%)

NYSE Volume 230,131,000
Nasdaq Volume 266,222,000

10:00AM: Equities continue to run in place just above the flat line as sector leadership remains mixed... Energy has paced the way higher, as oil prices trade at three-week highs, while strength in chemicals and aluminum has prompted a modest rebound in the Materials sector... Retail has also shown relative strength, following May comps and reaffirmed Q2 guidance from Kohl's (KSS 50.48 +1.79), while Internet stocks have caught a bid after CSFB raised its price target on Google (GOOG 283.61 +6.34) to $350...

Telecom Services, however, has been modestly weak amid a 1.8% sell-off in Qwest (Q 3.85 -0.07) while Technology has been mixed, with gains in hardware and networking offsetting losses in software and semiconductor... Separately, May ISM index checks in at 51.4 (consensus 52.2) while construction spending checks in up 0.5% (consensus +0.6%), providing a modest lift to the indices... NYSE Adv/Dec 1288/1046, Nasdaq Adv/Dec 1287/979

[RawMaterials]

34. 10:30 EST Markets Flying High

Dow 10566.64 +99.16 (+0.95%)
Nasdaq 2091.20 +22.98 (+1.11%)
S&P 500 1202.24 +10.74 (+0.90%)
10-Yr Bond 3.920% -0.86

NYSE Volume 416,969,000
Nasdaq Volume 474,161,000

[UpInArms]

27. Nortel brings books current for 1st time since acctng scandal - shows loss

Nortel posts small first-quarter loss
Financial results up to date for first time since March 2004

http://www.marketwatch.com/news/print_story.asp?print=1&guid={8778FCEA-110A-4C82-A8BC-7EED2D49F667}&siteid=mktw

WASHINGTON (MarketWatch) -- Nortel Networks Corp. posted a small loss in the first quarter Wednesday owing to additional restructuring costs, as the company brought its financial results completely up to date for the first time in more than a year.

The maker of telecommunications equipment, which fired its chief executive last year after an accounting scandal, said it lost $49 million, or a penny a share, in the first three months of 2005. A year earlier, Nortel (NT: news, chart, profile) recorded net profit of $59 million, or a penny a share.

Revenue rose 3.8% to $2.54 billion from the comparable 2004 period, but sales fell from the prior quarter's level of $2.62 billion.

Analysts surveyed by Thomson First Call had been expecting breakeven per-share results on revenue of $2.52 billion.

<snip>

Last April, Nortel fired Chief Executive Frank Dunn after discovering a pattern of questionable accounting practices extending back to 2001. The Canadian vendor has spent the past year sorting out the accounting mess, which has punished its share price and damaged the Nortel brand.

...more...

[UpInArms]

33. Dallas Fed's Fisher-room to tighten rates further

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8666453§ion=investing

NEW YORK, June 1 (Reuters) - There is room to raise interest rates further with U.S. economic growth currently "going fine," Dallas Federal Reserve President Richard Fisher told CNBC TV on Wednesday.

"I think we've room to tighten a little bit further," Fisher said. "We're going fine," he said, referring to the U.S. economy.

Fisher said the puzzling fall in long-term interest rates, despite the Fed's steady, year-long program of raising short-term rates, reflects the market's confidence that the Fed will do its job in keeping inflation under control.

[ozymandius]

36. Explain these numbers, please.

11:54
Dow 10,584.23 +116.75 (+1.12%)
Nasdaq 2,093.94 +25.72 (+1.24%)
S&P 500 1,205.32 +13.82 (+1.16%)
10-Yr Bond 39.01 -1.05 (-2.62%)

NYSE Volume 800,175,000
Nasdaq Volume 833,426,000

11:30AM: Onward and upward remains a driving mantra this morning, as investors continue to rally around falling bond yields... While the ISM index has provided much of the spark behind aggressive buying efforts in Treasurys, knocking the 10-year yield down to 14-month lows, and gains of more than 1.0% for the major averages, comments from Dallas Fed Bank President Richard Fisher have also helped underpin a widely bullish sentiment...

Just before the 10:00 ET release of the ISM index, Fisher said on CNBC that rate increases are in the "8th inning" of the Fed's tightening cycle, implying that further hikes are nearing an end... NYSE Adv/Dec 2365/732, Nasdaq Adv/Dec 1961/854

[UpInArms]

41. LOL! U.S. stocks in relief rally after manufacturing data

http://www.marketwatch.com/news/story.asp?guid=%7BE93DBF9F%2D6122%2D43E7%2DA695%2D46BF352A1102%7D&siteid=mktw

Relief rally after factory data
Manufacturing growth slows but not as much as feared

NEW YORK (MarketWatch) - U.S. stocks rallied Wednesday amid relief that a report showing a slowdown in manufacturing growth in May was not as grim as some had feared.

The Dow Jones Industrial Average ($INDU: news, chart, profile) was last up 94 points at 10,562, after briefly posting a triple-digit gain to take it to its intraday high of 10,567.97.

The Nasdaq Composite ($COMPQ: news, chart, profile) rose 20 points to 2,089, a four-month high for the tech-rich index.

The S&P 500 Index ($SPX: news, chart, profile) climbed 11 points to 1,202.

Factory activity in the United States decelerated in May for the sixth straight month, the Institute for Supply Management reported Wednesday. The ISM index fell to 51.4% in May from 53.3%in April. The decline was sharper than expected, but stayed above 50, the threshold for growth in the factory sector. The consensus forecast of estimates collected by Marketwatch was for the index to slip to 52.1%. See full story.

"It was not as bad as people expected particularly after yesterday's Chicago PMI number," said Michael Malone, trading analyst at SG Cowen.

...more...

The patient has no pulse, but we haven't buried it yet!

[ozymandius]

49. The irony is killing me.

Stocks are up but manufacturing is down for the sixth straight month!

:rofl:

How bad does that number have to be? Zero?

[UpInArms]

39. U.S. hands out jail term in pension fraud

http://www.marketwatch.com/news/story.asp?guid=%7B6539C3D9%2DA0F1%2D4172%2DB7F6%2D525A9C7B239B%7D&siteid=mktw

WASHINGTON (MarketWatch) - A U.S. court sentenced a Connecticut man to 30 months in prison for his role in a state pension fund scam, the Securities and Exchange Commission announced Tuesday.

A federal jury in October 2003 found Ben Andrews guilty of nine counts including bribery, mail and wire fraud and conspiracy to launder money. On May 2, the U.S. District Court in New Haven, Conn., sentenced Andrews to 30 months in prison plus five years of supervised release.

Andrews received a consulting contract worth $1.5 million from former State Treasurer Paul Silvester. Andrews was to receive half of the consulting fees generated by an investment of $150 million of state pension assets in a private equity fund in 1998. Andrews agreed to share the other half with a close associate of Silvester's, the SEC said.

The SEC filed a civil action in U.S. court in October 2000, charging Andrews, Silvester and others with securities fraud based on their scheme to invest state pension fund money. The SEC's civil case against Andrews is still pending.

...more...

[UpInArms]

42. July crude hits $53 at midday

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38504.4974685185-836159282&siteID=mktw&scid=0&doctype=806&

DALLAS (MarketWatch) -- July-dated crude futures stood at $53 a barrel, up 2%, or $1.03, Wednesday on the New York Mercantile Exchange. "With prices advancing in the absence of a specific supply threat...it is hard for us to consider this current move as anything more than corrective in nature," said John Kilduff, managing director of energy research at Fimat, in a note to clients.

Well that ought to fix that "consumer confidence" glitch!

[UpInArms]

64. July Crude tops $54 bbl

Crude at highest level in three weeks
Heating oil up 5%, at highest level in five weeks

http://www.marketwatch.com/news/story.asp?guid=%7B66DB44B4%2D0143%2D4CD7%2DB85C%2DB2731644FA0F%7D&siteid=mktw

DALLAS (MarketWatch) -- Crude-oil prices topped $54 a barrel Wednesday amid mixed expectations for what the latest report on U.S. crude supplies from the Energy Department will show.

July-dated light sweet crude oil futures traded as high as $54.20 but last stood at $54.10 a barrel, up $2.13, good enough for a 4.1% gain on the New York Mercantile Exchange.

"Analysts and traders may be able to kid themselves into believing that there is some fundamental tightening behind this rally in crude oil, but it is pretty clear to us that very little has changed since July crude touched $48.05 on May 23," said Tim Evans, senior market analyst at IFR Markets, in a note to clients.

Trading and research firm Fimat expects an increase of 1 million barrels in U.S. crude inventories, while IFR Energy Services expects a decline of 1 million to 2 million barrels.

The Energy Department will release the inventory figures Thursday, a day later than usual this week due to the Memorial Day holiday.

Who the Hell cares!

[UpInArms]

77. July Crude closes at $54.60 bbl

3:05pm 06/01/05 JULY CRUDE CLOSES AT $54.60, UP 5.1%

[specimenfred1984]

45. PROP Goes the Weasel, Weasel Fed/Acct 990N That Is

If anyone has real-time quotes, take a look at the volume in the June mini-S&P futures.

You'll see very large buy volume spikes followed by very little volume. This, on the fake news that there's no inflation.

Other than the markets being fixed, the problem with trading this kind of crappy environment is that when the Fed leaves and stops propping this crap up, it'll selloff good.

So, a trader can buy during a lull, waiting for the next Fed prop or, the trader can take an even bigger gamble and try to guess when the corrupt Fed will stop intervening.

"Free markets" are a joke in this fascist admin. This is pure corruption.

[ozymandius]

51. Many here tend to agree.

Rich offerings

UNTIL RECENTLY THE FINANCIAL PLANNING INDUSTRY MARKETED TO THE MASSES. NOW, IT'S GOING AFTER THE HIGH NET WORTH INVESTOR

In the late 1980s and through the 1990s, financial institutions were marketing mutual funds to novices. Remember the term "GIC refugees?" Interest rates fell and investors needed alternative investments, so the mutual fund industry grew as investors put their hard-earned cash into equity mutual funds. Demand for investment services increased faster than supply, and the industry scrambled to keep up. For an indication of just how suddenly the industry grew, one need only look at the experience of investors and advisers: half of mutual fund investors have only five years' investment experience, and the average financial adviser has less than 10 years' experience.

-cut-

The small investor is smart enough, however, to know when he has been wiped out. Many Canadians suffered from Bell, Nortel and bank stock declines. The recent stock market bubble explosion has destroyed many investors. On top of that is the new theme for the past couple of years: financial scandals, played out in the US and followed closely by the Canadian media. The result is that many investors will not return to financial markets, believing that markets are rigged, accountants are crooked and business leaders are corrupt.

http://www.camagazine.com/index.cfm/ci_id/14508/la_id/1.htm

YOU ARE WHAT YOU EAT?

One myth I have found it necessary to 'discard' is that the capitalist system as we currently 'know it' is constituted of free markets. I find this necessary because I live in the real world. Regulator's insistence that our markets are "free" started off leaving a very sour taste in my mouth. Now, I can no longer swallow it at all. A large and continuously growing body of irrefutable evidence points to abuse at the highest levels and outright fraud. It suggests that our once sacrosanct financial markets and economic reporting at the core of the capitalist system might actually be a huge ponzi-scheme. As sure as vodka comes in three or more flavors, my current level of understanding is that financial markets are rigged and managed to such an extent that it would make the central planners of the former Soviet system jealously drunk with envy.

http://www.financialsense.com/fsu/editorials/kirby/2004/1008.html

Funny thing is -- there are 411 hits from googling "markets are rigged". Not just loony fringe sites either - reputable columnists (economists) and editorial boards have taken up support of the issue.

[specimenfred1984]

59. It's Really Obvious

I've been trading since '91 and I noticed the unusual volume spikes starting in May of last year.

The S&P used to trade like other high-volume markets in that a buy spike or sell spike would be followed by profit takers then the move would continue.

Now, the S&P just dies after these buy spikes as traders know the buyer(s) isn't basing the buys on economic reasons.

It's a sad statement for the entire U.S. that our gov't has to lie to us, steal from us and manipulate us.

Anyway, I see 1255 in the S&P futures as the near-term target if the Fed keeps propping. BTW, I loved that cartoon!

[amandabeech]

82. Do you think that Donaldson's seemingly sudden departure

has anything to do with his relatively serious stance toward market manipulation in the hedge and mutual fund businesses?

Are some people thinking that their income potential may be limited with someone like him, and not like Harvey Pitt, at the helm?

[UpInArms]

47. 12:14 EST numbers and blather

Dow 10,558.29 +90.81 (+0.87%)
Nasdaq 2,090.15 +21.93 (+1.06%)
S&P 500 1,202.67 +11.17 (+0.94%)
10-Yr Bond 3.898 -1.08 (-2.70%)

NYSE Volume 876,109,000
Nasdaq Volume 899,320,000

12:00PM: Market still trading near session highs midday as weaker than expected manufacturing data confirms economic growth but eases inflation concerns... While the May ISM index fell to 51.4 (consensus 52.2), versus an April read of 53.3, the fact that the data were not as weak as some had expected, coupled with a sharp decline in the prices paid component (which fell to 58.0 from 71.0), has confirmed that inflation remains under control...

Upbeat comments from Dallas Fed Bank President Richard Fisher suggesting that rate increases are in the "8th inning" of the Fed's tightening cycle, has also helped alleviate some worries about further rate hikes... To that end, Treasurys have extended yesterday's rally, perhaps no longer pricing in a rate increase for September and pricing in reduced expectations for an August rate hike... And with the yield on the benchmark 10-year note (+22/32) now down at 3.89% - the lowest level since April 2004 - and stock valuations becoming more attractive relative to bonds, broad-based buying efforts have lifted every economic sector... Pacing the way higher has been Energy (+1.8%), benefiting from a 1.9% surge in oil prices...

Crude oil futures have surged to $53.00/bbl (+$1.03), amid ongoing issues with ruptured gas pipelines at a Shell refinery in Texas and ahead of tomorrow's weekly inventories report... Financial (+1.4%) has been the most influential sector in positive territory while lower bond yields have also lent support to interest-rate sensitive groups like Utilities, REITs and Homebuilding... An analyst upgrade on Ryland Group (RYL 70.19 +1.69) has also helped the latter by offsetting weakness in Hovnanian (HOV 61.67 -0.43), which beat forecasts by a penny but issued mixed guidance...

[ozymandius]

53. manufacturing is DOWN FOR THE SIXTH STRAIGHT MONTH

But miracle of miracles - the Dow's listing of thirty industrials is doing okay.

12:37
Dow 10,564.21 +96.73 (+0.92%)
Nasdaq 2,089.76 +21.54 (+1.04%)
S&P 500 1,203.19 +11.69 (+0.98%)
10-Yr Bond 39.20 -0.86 (-2.15%)

NYSE Volume 950,289,000
Nasdaq Volume 961,845,00

[The_Casual_Observer]

56. They are taking it back up to 10,800 before they take it back down

to 10,000. The money accordion.

[UpInArms]

55. SEC CHAIRMAN DONALDSON WILL RESIGN -- WSJ

12:39pm 06/01/05 SEC CHAIRMAN DONALDSON WILL RESIGN -- WSJ

[catzies]

66. Yup. Here's the link

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1515208

[UpInArms]

67. Donaldson faced political pressure

http://www.marketwatch.com/news/story.asp?guid=%7BD1DFF7AB%2D7933%2D4271%2D9615%2D8594B46B36BB%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- William Donaldson's resignation as chairman of the Securities and Exchange Commission Wednesday came amid political pressure on the agency that's increased in recent years, according to the man who held the job before Donaldson.

Starting with the collapse of Enron in 2001, "a number of politicos thought they could make the SEC a political issue," said Harvey Pitt, who resigned as chairman of the SEC in November 2002 after 15 tumultuous months. "That's where a lot of the pressure has come."

Donaldson, a friend of President George W. Bush's family, was hired in the wake of corporate scandals and given the task of restoring confidence in U.S. business. But the Republican chairman, who once headed the New York Stock Exchange, has drawn fire from business interests and fellow Republicans on the commission for voting for some controversial regulations.

Donaldson managed to avoid getting involved in much of the politics and did a "remarkable" job responding to crises that unfolded during his tenure, such as the mutual-fund timing scandal, said Pitt, who now runs Washington D.C. consulting firm Kalorama Partners.

...more...

Yeppers - he didn't kowtow to the *Co mantra :eyes:

[UpInArms]

61. 2:00 EST delusional numbers

Dow 10,583.27 +115.79 (+1.11%)
Nasdaq 2,094.38 +26.16 (+1.26%)
S&P 500 1,205.64 +14.14 (+1.19%)
10-Yr Bond 3.923 -0.83 (-2.07%)

NYSE Volume 1,216,603,000
Nasdaq Volume 1,192,839,000

[UpInArms]

62. adding delusional blather

1:30PM: Stocks continue to hold their own as the bulk of sector leadership remains positive... Retailers have been one of the best performing groups, as evidenced by a 1.8% surge in the S&P Retail Index... Best Buy (BBY 56.19 +1.76) has surged 3.2% after Goldman Sachs upgraded the stock to Outperform from In-Line, citing solid promotional activity... But Kohl's (KSS 51.16 +2.47) has paced the way higher after reaffirming Q2 EPS guidance and reported a 0.2% increase in May comps...

Speaking of comps, after tonight's close and before the bell tomorrow, investors will sift through May same-store sales from more than 50 retailers - a good number of which are expected to miss forecasts due to colder than normal temperatures... NYSE Adv/Dec 2537/726, Nasdaq Adv/Dec 1982/1005

1:00PM: Little changed since the last update, but buyers remain in control of the action amid spirited leadership from a number of blue chips... On the Dow, last month's worst performer - IBM (IBM 77.25 +1.70) - has been today's biggest advancer, amid reports of additional restructuring efforts... Alcoa (AA 27.65 +0.55) has rebounded nicely with a 2.0% gain while C, CAT, HD, INTC, JPM, PG and WMT have been just a few others advancing more than 1.0%...

Of the four components losing ground, SBC Communications (SBC 23.29 -0.09), which plans to slash high-speed Internet access by 25% to $14.95/month, has paced the way lower while General Motors (GM 31.46 -0.07), amid an expected decline in May U.S. sales results, has also been under pressure...NYSE Adv/Dec 2467/767, Nasdaq Adv/Dec 1941/1022

[UpInArms]

63. auto rallies on falling sales!

2:00PM: Market continues to put together a solid advance as the indices hold steady at sharply higher levels... Meanwhile, auto makers have been in focus following Mar. auto sales figures... Shares of General Motors (GM 31.69 +0.16) have turned positive within the last 30 minutes after posting a smaller than expected decline of 5.0% in U.S. sales (consensus -5.4%)...

Ford Motor (F 10.00 +0.02) has clung to a modest gain following a larger than expected U.S. sales decline (11.0% versus forecasts of -3.8%) while total adjusted sales at DaimlerChrysler (DCX 40.59 +0.30) rose a better than expected 6.0% versus an estimated 2.9% increase NYSE Adv/Dec 2534/754, Nasdaq Adv/Dec 1968/1028

Guess these buffoons didn't read DaimlerChrysler's numbers:

DaimlerChrysler May U.S. group sales fall 2%

[UpInArms]

65. Enesco tumbles on credit line covenant default

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38504.5915500116-836164870&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Shares of Enesco Group (ENC) dropped 9.6% to $3.48 Wednesday afternoon after the Itasca, Ill., gift collectibles company said it's not in compliance with the minimum earnings before interest, taxes, depreciation and amortization covenant of its credit line with Fleet National Bank and LaSalle Bank as of April 30. The company blamed the impact of non-cash accruals related to the timing of the execution of its agreement with Precious Moments Inc. Enesco also said it has told Fleet that it needs to renegotiate the covenants for May and June and possibly additional months due to weak sales and lower gross margins. Enesco plans to negotiate with Fleet for a waiver of the April covenant and to revise other covenants but it offered no assurance that it would be successful.

[UpInArms]

68. Andersen Innocent? Think Again.

http://www.fool.com/News/mft/2005/mft05060109.htm

As a matter of law, the United States Supreme Court is always right -- at least until two-thirds of Congress and three-quarters of the states say otherwise. But as a matter of common sense, the "Supremes" sometimes get it wrong. Yesterday marked one such occasion: The highest court in the land threw out the "guilty" verdict handed down to accounting firm Arthur Andersen in June 2002.

But before I take off my lawyer hat and start practicing common sense, let's make one thing crystal clear: The Supreme Court did not declare Andersen "innocent" yesterday. It only pointed out that the trial court's instructions to the jury were too lax, thereby allowing the possibility that jurors convicted Andersen without the government proving the accounting firm's guilt. In essence, the high court said: "The judge goofed, and you need to try Andersen again." That's it.

So when Andersen's PR guy characterized the court's decision as dispelling "an unjustified cloud over the professionalism and integrity of the people of Arthur Andersen," that's a bit of a stretch. When he termed the shredding of 2 tons of documents on the eve of a subpoena a "routine business decision," it strained credibility. And when Andersen's attorney asserted that the company and its employees "never intended to do anything wrong" and "certainly never intended to obstruct justice," well, that's what he's paid to say, of course. But saying it doesn't make it so. Put all that self-congratulatory verbiage together, and it amounts to little more than the verbal equivalent of a pile of stinky red herring.

Don't buy that fish.

...more...

[UpInArms]

73. 2:51 EST numbers and blather (soma wearing off?)

Dow 10,511.30 +43.82 (+0.42%)
Nasdaq 2,079.07 +10.85 (+0.52%)
S&P 500 1,197.30 +5.80 (+0.49%)
10-Yr Bond 3,905 -1.01 (-2.52%)

NYSE Volume 1,458,326,000
Nasdaq Volume 1,404,542,000

2:30PM: Sellers show some resolve, as a 5.0% surge in crude oil futures ($54.58/bbl +$2.61) prompts some late afternoon profit-taking... The commodity, which has just closed near session highs, has traded higher all day on news of ruptured gas pipelines at a Shell refinery in Texas and the possibility of additional disruptions heading into hurricane season... NYSE Adv/Dec 2554/742, Nasdaq Adv/Dec 1959/1043

[ozymandius]

75. What? They've JUST realized there's a hurricane season?

:wtf:

[ozymandius]

74. SELL! SELL! SELL!

losing value by the minute...

2:53
Dow 10,518.24 +50.76 (+0.48%)
Nasdaq 2,080.41 +12.19 (+0.59%)
S&P 500 1,198.52 +7.02 (+0.59%)
10-Yr Bond 39.06 -1.00 (-2.50%)
NYSE Volume 1,469,504,000
Nasdaq Volume 1,415,309,000

[UpInArms]

78. Exodus from money-market funds ($16.2 Billion last week)

Investors pull $16.2 bln in latest week; yields still climbing

http://www.marketwatch.com/news/story.asp?guid=%7B22517B60%2D5F8A%2D4468%2D84DB%2D0770111F4F4D%7D&siteid=mktw

BOSTON (MarketWatch) -- Money-market mutual funds saw assets decline by $16.2 billion overall for the week ended May 31, investment research firm iMoneyNet reported Wednesday afternoon.

Assets in taxable funds fell by roughly $14 billion to $1.52 trillion, while institutional funds lost $6.8 billion and retail portfolios dropped $7.3 billion.

Meanwhile, tax-free assets declined $2.2 billion to $319.6 billion.

Average yields for taxable funds gained 2 basis points to 2.44%, their highest level since October 2001.

Yields on the tax-free side were unchanged during the week at 2.23%.

...more...

[ozymandius]

80. close

Dow 10,548.76 +81.28 (+0.78%)
Nasdaq 2,087.86 +19.64 (+0.95%)
S&P 500 1,202.22 +10.72 (+0.90%)
10-Yr Bond 39.07 -0.99 (-2.47%)
NYSE Volume 1,802,517,000
Nasdaq Volume 1,808,724,000

Close: The market erased yesterday's losses as weaker than expected manufacturing data raised the possibility that the Fed may pause its current pace of interest-rate hikes, igniting broad-based buying efforts that closed virtually every sector in positive territory... Even though the May ISM index fell for a sixth straight month to 51.4 (consensus 52.2) - the lowest level since June 2003 - both stock and bond investors embraced the fact that the economy is still growing, albeit slowly, as any number above 50 reflects growth...
A sharp decline in the prices paid component (which fell to 58.0 from 71.0) also helped confirm that inflation remains under control... Anticipation that the Fed may end its pace of rate hikes sooner than expected was also roused by comments from Dallas Fed Bank President Richard Fisher... Fisher suggested that the central bank is in the "8th inning" of its tightening cycle, referring to the next meeting (June 30) as the ninth inning, which is expected to boast another 25 basis point increase in the Fed Funds rate to 3.25%...

Eased inflation concerns also extended a rally in Treasurys that knocked yields on the benchmark 10-year note (+21/32) to 3.89% - the lowest rate since April 2004 and a yield so low that current stock valuations became more attractive relative to bonds... While a stronger dollar weighed on Energy and Materials yesterday, dollar strength failed to tame either sector today, as both finished as the best performing economic sectors... Energy (+1.9%) led the charge, taking advantage of a 5.1% surge in crude oil prices ($54.60/bbl +$2.63) - the largest advance in nearly six months.

[UpInArms]

81. NYSE glitch halts trading early

Hiccup due to 'communications' problem: spokesman

http://www.marketwatch.com/news/story.asp?guid=%7B26232A2D%2DCA67%2D41EE%2D959D%2DDD25E6B73AFE%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Trading on the New York Stock Exchange was halted four minutes before the official close Wednesday because of a "communications problem," a spokesman said.

The last trade took place at 3:56 p.m. Eastern and all orders that hadn't been processed by that time were cancelled, an NYSE spokesman said. Trading will resume at 9.30 a.m. on Thursday, he added.

The premature close was caused by a "systems-related communications problem," according to the spokesman, who declined to be identified or provide further explanation.

It's not clear how many trades were affected by the glitch, he added.

<snip>

The exchange usually closes at 4 p.m. New York time. After that, there are as many as four so-called crossing sessions in which baskets of stocks are traded based on the official closing price. More than 100 million shares often change hands during these sessions.

...more...

:wtf:

[ApBai]

83. Crap, the damn market just will not crash...

That is what we are hoping for, isn't it?

[cosmicdot]

85. you're just kidding right, ApBai?

that isn't what you think this thread is about, is it?

I'd say people desire better management of fiscal and economic matters.

[ozymandius]

86. Not at all.

Cosmicdot states our concerns quite clearly in that no one here is hoping for a crash. We are quite concerned that there will be a crash because of the heavy handed mismanagement of the markets. The markets are managed, BTW. Many here, including me, believe that manipulation of the markets are not aimed at some umbrella-like benevolent affect. It is our desire to see this practice end.

To this goal, we would like market prices to mirror actual productive values. Not just intrinsic values, rhetorical values. That's all.