STOCK MARKET WATCH, Thursday 2 June

[ozymandius]

Thursday June 2, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 233 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 165 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 228 DAYS
DAYS SINCE ENRON COLLAPSE = 1285
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 June 1, 2005

Dow... 10,549.87 +82.39 (+0.79%)
Nasdaq... 2,087.86 +19.64 (+0.95%)
S&P 500... 1,202.22 +10.72 (+0.90%)
10-Yr Bond... 3.91% -0.10 (-2.47%)
Gold future... 417.70 -1.20 (-0.29%)

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 Mike Hartman

Interest Rates Move Lower on Weak Economic Data

The Institute for Supply Management’s factory index was expected to come in at 52.1 following last months reading of 53.3, but the index declined further than expected to 51.4. This was the sixth consecutive monthly decline for the ISM Manufacturing Index, but the stock market bulls are reading the number as positive since anything above 50 indicates growth, albeit at a slower rate. Bond prices are moving higher on economic weakness and stock prices are also moving higher because the ISM data wasn’t as bad as some traders had expected. Stocks are also getting a boost from comments made by Richard Fisher, the new head of the Dallas Federal Reserve Bank.

According to a Reuter’s article, Dallas Fed President Richard Fisher said, “‘I think we’ve room to tighten a little bit further’, but using a baseball analogy, added that the U.S. central bank is in the eighth inning of its tightening cycle and entering the ninth, and usually final, inning this month.” This statement from the Fed is the best indicator so far that the cycle of rate increases is coming to an end for now. Mr. Fisher also noted that the Fed’s job with interest rates is to keep inflation at bay and to maintain economic growth. With all the signs of economic weakness, the Feds need to be certain they don’t raise rates far enough to choke off the economy. One of the big indicators to watch on Friday is the employment report for May. Today we got a possible head’s-up for a weak report to come on Friday. Contained within the ISM manufacturing data, the ISM employment index fell to 48.8% from 52.3%. This is the first time the employment index has dropped below 50% in the last 18 months…signs of further weakness ahead.

-cut-

The soft stance on interest rates from overseas and from the Fed here at home will help to keep some strength in real estate markets around the country. Construction spending rose 0.5% in April and year over year construction spending is higher by 8.2%. The Office of Federal Housing Enterprise Oversight said housing prices gained 12.5% in the first quarter versus the previous year. Prices rose 21.3% in the Pacific region, 15.0% in the South Atlantic and 13.8% in the Middle Atlantic region. As you can see, home prices are higher, but activity in the mortgage sector is showing signs of fatigue. The Mortgage Bankers Association reported its application index declined 2.8% with the purchase index down by 4.1% and the re-finance index lower by 1.2%. The 30-year fixed rate mortgages fell two basis points to 5.61% and the average one-year ARMS rate fell 12 basis points to 4.09%. If we continue to see money pouring into bonds with further signs of economic weakness, I’ll be ready to grab a 30-year fixed rate at 5%...it could happen with the yield on the ten-year note falling below 4.0% today (see chart).


more...

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

[UpInArms]

2. daily dollar watch

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

Last trade 87.84 Change -0.27 (-0.31%)

Euro Squeezes the Shorts

http://www.dailyfx.com/index.php?option=com_content&task=view&id=1378&Itemid=39

Although, the Dutch overwhelmingly voted No on the EU referendum, rejecting the pact by 62% to 38%, the euro staged a furious short covering rally rising for the first time in a week, almost reaching the 1.2300 figure in early European trade. As we noted yesterday, with the everyone in the market leaning to the sell side, the price action over the past few days was reminiscent of a capitulation bottom as the last of the long term euro bulls bailed out of their positions after the currency broke key support at 1.2500 figure earlier this week.

While the resounding defeat of the EU Constitution clearly put a halt to further European political integration, the region’s economic reforms may continue to progress unabated. French media is suggesting that Tony Blair, who takes over the EU presidency this month, may seize the opportunity presented by the disarray in political arena to push ahead with ’liberal’ economic reforms, leaving the institutional infrastructure to languish. If this scenario plays out as planned, it may in fact be a blessing in disguise as it enacts much needed economic changes in the Euro-zone without creating a massive bureaucratic stronghold in Brussels.

As Europe comes to grip with its political crisis the market’s attention may turn back to US economic data. Yesterdays comments by Dallas Federal Reserve President Richard Fisher that the Fed was in the “eighth inning” of its rate hike cycle almost flew under the radar as the market only focused on EU developments. But should Mr. Fisher’s comments prove to be accurate, dollar’s rapid climb may come to a grinding halt. Our proprietary studies show that over the past 15 years, transitions from restrictive to neutral monetary policies by the Fed led to a decline in the currency as markets quickly discounted regime changes.

...more...

Dollar Braces For a Move By Majors

http://www.dailyfx.com/index.php?option=com_content&task=view&id=1370&Itemid=39

EUR/USD – Euro longs were lulled into complacency and were instantly punished for letting their guard down as greenback bulls exploited the momentum and tried to push the pair below the 1.2200 figure. As the euro bulls continue to recover from the shock they have received after the dollar longs launched another surprising attack. The next move by the pair will most likely going to be dominated by the single currency as the latest dollar advance is becoming overextended. Euro bulls will most likely try to recapture some of their lost territory with 1.2700 being a logical objective as a move above will most likely be capped by the strong resistance at 1.2730. Indicators continue to signal strong trending conditions with ADX (DMI) on the daily chart is at 35.7, pointing to a strong trend. Stochastic remains extremely oversold on the daily chart at 8.58, which is indicative of strong trending conditions. The Stochastic on the dealer (4HR) chart is also oversold at 12.3. RSI is oversold on the daily chart at 16.05 with the 4-hour chart RSI also oversold at 28.87. 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 remained defiant to the advances by the dollar bulls as the pair failed to retest the 108.88, a 2005 high. A doji star on the charts currently signals a potential reversal of fortune for the dollar bulls with the pair most likely aiming for the 106.00 figure. Indicators signal trending conditions, with ADX (DMI) at 26.84 continuing to point to a trend. Stochastic remains overbought on the daily chart at 88.76, supporting a view that a trend might be in place. The Stochastic on the 4-hour chart is treading below the overbought line at 74.50, thus providing yen bulls with more room to maneuver to the downside before the oscillator becomes oversold. RSI is treading along the overbought line at 71.7 on the daily chart, with dealer (4HR) chart RSI remaining neutral at 54.41. 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 about to make a bearish crossover above the zero line. If the yen bulls continue to retreat, a move to the upside will most likely see the USD/JPY rocket through 109.00 and target the 110.00 figure, with a breakout targeting the 115.00.

...more...

Have a Great MaeveDay Marketeers!

[UpInArms]

6. Banks' c/a balance at BOJ seen again below target

http://today.reuters.com/investing/FinanceArticle.aspx?type=bondsNews&storyID=URI:urn:newsml:reuters.com:20050602:MTFH38498_2005-06-02_09-21-30_T282046:1

TOKYO, June 2 (Reuters) - Banks' current account balances at the Bank of Japan are likely to fall below the central bank's policy target on Friday for the second day in a row, money traders said.

The balance for Friday is expected to be around 29.4 trillion yen ($270.5 billion), below the official target for how much money banks are expected to keep at the BOJ, now set at a total 30-35 trillion yen.

On Thursday, the BOJ allowed a breach below the lower end of its target for the first time since it introduced "quantitative easing" in March 2001.

At a board meeting two weeks ago, the central bank decided to relax its policy commitment, in which it floods the market with funds, virtually pegging short-term interest rates at zero.

<snip>

The BOJ has faced growing difficulty in lending excess funds to banks, as demand has receded due to the healthier finances of banks as they write off bad loans.

...more...

[UpInArms]

16. Dollar continues lower after mixed data

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38505.3670370486-836200591&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - The dollar continued lower against the euro and yen early Thursday, after a mixed batch of economic data. First-quarter productivity was revised upward to show a 2.9 percent annual growth rate, up from the 2.6 percent estimate of a month ago. Unit labor costs, a key measure of inflationary pressures from compensation, rose a revised 3.3% annualized in the first quarter, up from an initial estimate of 2.2%. Another report showed a larger-than-expected increase in weekly jobless claims. The euro was last up 0.06% at $1.2267 and the dollar down 0.4% at 108.20 yen.

[UpInArms]

47. Dollar lower as euro pounding ceases

http://www.marketwatch.com/news/story.asp?guid=%7B812DECC6%2DD961%2D41EC%2DA7FD%2DCEAEAAC92FFE%7D&siteid=mktw

NEW YORK (MarketWatch) -- The dollar was lower Thursday, breaking from a recent rally linked to nervousness about the euro after both France and Holland voted down referendums on the E.U. constitution.

In recent trades, the euro was up 0.06% at $1.2266, after earlier touching a high of $1.2294. The dollar was down 0.3% at 108.28 yen.

While the French and Dutch rejections of the referendum have serious implications, the dollar fell on the view that the fallout will not be near-term and the euro was punished excessively earlier in the week.

"The predominant theme in currency markets right now seems to be profit taking amongst traders from the overbought dollar," said Tim Wilbraham, senior foreign exchange dealer at CMC Group.

<snip>

Here is the lie of the day:

There was limited reaction to news that jobless claims rose by 25,000 to 350,000 in the latest week, contrasting with expectations for an increase of just 1,000. The big jump was attributed to temporary layoffs in the auto sector.

...more...

That LIE is refuted by the Challenger Report stating that the majority of the layoffs were in TECHNOLOGY!

http://msnbc.msn.com/id/8073094/

excerpt:

The outplacement firm Challenger, Gray & Christmas Inc. said employers announced 82,283 job cuts in May, up from 57,861 in April, and up 12 percent from May 2004.

Computer companies announced 17,886 job cuts in May, eight times higher than April’s level and accounting for more than one-fifth of all job cuts in May, Challenger said.

...more...

[UpInArms]

58. US yields still support dollar despite 'conundrum'

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8682125§ion=investing

NEW YORK, June 2 (Reuters) - Financial markets may be paring back expectations of how much higher U.S. interest rates will go, yet bond yields and yield spreads should still help support the dollar for a while yet.

That's because, on a global basis, U.S. rates are still relatively attractive to investors, say analysts.

Amid falling U.S. bond yields and the "conundrum" of a flattening yield curve, to quote Federal Reserve Chairman Alan Greenspan, buyers of longer-dated U.S. fixed income assets can still earn a higher rate of return than that offered by similar paper in the euro zone, Japan, Switzerland or Canada.

<snip>

"It's quite remarkable that even though the market has reduced expectations of Fed tightening the dollar has remained strong and near its highs," said Sophia Drossos, currency strategist at Morgan Stanley in New York. "It's as much a euro story as a dollar story."

...more...

Operative words: "for a while yet"

[UpInArms]

3. Today's Reports:

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

Jun 2	8:30 AM		Initial Claims		05/28	-	320K	325K	323K	-	
Jun 2	8:30 AM		Productivity-Rev.	Q1	-	3.0%	3.0%	2.6%	-	
Jun 2	10:00 AM	Factory Orders		Apr	-	1.2%	1.1%	0.1%	-

[UpInArms]

12. OUCH! U.S. jobless claims up 25,000 to 350,000

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38505.3544410417-836199655&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - First-time claims for state unemployment benefits rose sharply in the latest week, largely due to temporary layoffs in the auto sector, the Labor Department reported Thursday. The number of initial claims in the week ending May 28 rose 25,000 to 350,000. It's the highest level since the week ended March 26. A Labor Department official said "a good portion of the increase in claims was due to temporary layoffs in the auto sector." The large increase was unexpected. The consensus forecast of Wall Street economists was for claims to rise 1,000 to 324,000. Claims in the previous week were revised to an increase of 3,000 to 325,000 compared with the initial estimate of a rise of 1,000 to 323,000. The four-week average of initial claims rose 3,500 to 334,500.

8:30am 06/02/05 U.S. CONTINUING JOBLESS CLAIMS UP 32,000 TO 2.60 MLN

8:30am 06/02/05 U.S. 4-WEEK AVG. JOBLESS CLAIMS UP 3,500 TO 334,500

8:30am 06/02/05 JOBLESS CLAIMS RISE LARGELY DUE TO AUTO SECTOR: LABOR

8:30am 06/02/05 U.S. WEEKLY JOBLESS CLAIMS UP 25,000 TO 350,000

[UpInArms]

14. U.S. productivity revised to 2.9% in Q1 (fear factor in real life?)

http://www.marketwatch.com/news/story.asp?guid=%7B19D4B865%2D5BE5%2D4382%2D88C2%2D1504886E631C%7D&siteid=mktw

WASHINGTON (MarketWatch) -- Productivity growth in the U.S. nonfarm business sector was stronger in the first quarter than previously estimated.

Productivity was revised to a 2.9 percent annual growth rate from the 2.6 percent estimate a month ago, the Labor Department said Thursday.

The increase was in line with economists forecasts, considering the upward revision to first-quarter gross domestic product.

<snip>

In the manufacturing sector, productivity increased a revised 4.4%, compared with the previous estimate of a 3.9% gain.

Productivity is measured by units of output per hour worked. It's an essential factor in long-term economic health, but is extremely difficult to measure in the short-run.

In the nonfinancial corporate sector, productivity increased 2.7% in the first quarter after rising 9.0% in the fourth quarter.

...more at link...

8:30am 06/02/05 U.S. Q1 FACTORY PRODUCTIVITY REVISED UP 4.4% VS. 3.9%

8:30am 06/02/05 U.S. Q1 UNIT LABOR COSTS REVISED UP 3.3% VS 2.2% PREV

8:30am 06/02/05 U.S. Q1 PRODUCTIVITY REVISED TO UP 2.9% VS. 2.6% PREV

(edited to add link and info)

[UpInArms]

19. filling in the 8:30 report blanks (see last week's claims revision)

Jun 2	8:30 AM	Initial Claims		05/28	350K	320K	325K	325K	323K	
Jun 2	8:30 AM	Productivity-Rev.	Q1	2.9%	3.0%	3.0%	2.6%	-

[UpInArms]

33. final blanks for reports

Jun 2	10:00 AM	Factory Orders	Apr	0.9%	1.2%	1.1%	0.7%	0.1%

[UpInArms]

30. U.S. April factory orders rise 0.9% (below concensus)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38505.4167282176-836203354&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Demand for new U.S.-made factory goods increased 0.9% in April, the fastest gain in five months, the Commerce Department reported Thursday. Shipments of factory goods increased 0.7%, while inventories increased 0.1%. The inventory-to-shipment ratio fell to 1.24 from 1.25 in March. Economists were expecting orders to rise about 1.1%. Orders in March were revised up sharply to a 0.7% gain from 0.1% previously. Orders for durable goods rose 1.9%, unchanged from last week's estimate. Orders and shipments for nondurable goods fell 0.2%, on a drop in petroleum.

10:00am 06/02/05 U.S. APRIL FACTORY INVENTORIES UP 0.1%

10:00am 06/02/05 U.S. APRIL FACTORY SHIPMENTS UP 0.7%

10:00am 06/02/05 U.S. APRIL CORE CAPITAL GOODS ORDERS UP 1.7%

10:00am 06/02/05 U.S. MARCH FACTORY ORDERS REVISED 0.7% VS. 0.1%

10:00am 06/02/05 U.S. APRIL NONDURABLE GOODS ORDERS FALL 0.2%

10:00am 06/02/05 U.S. APRIL DURABLE GOODS ORDERS UNREVISED AT 1.9%

10:00am 06/02/05 U.S. APRIL FACTORY ORDERS UP 0.9% VS. 1.1% EXPECTED

[UpInArms]

35. DOE Petroleum Inventory Report

10:30am 06/02/05 US GASOLINE SUPPLIES UP 1.3M BARRELS IN LATEST WK: DOE

10:30am 06/02/05 US GASOLINE SUPPLIES UP 1.3M BARRELS IN LATEST WK: DOE

10:30am 06/02/05 U.S. CRUDE SUPPLIES UP 1.4M BARRELS IN LATEST WK: DOE

[UpInArms]

36. API Petroleum Inventory Report

10:33am 06/02/05 US WEEKLY GASOLINE SUPPLIES DOWN 1.4M BARRELS: API

10:34am 06/02/05 US WEEKLY DISTILLATE SUPPLIES UP 783K BARRELS: API

10:33am 06/02/05 US WEEKLY CRUDE SUPPLIES UP 1.3M BARRELS: API

[ozymandius]

52. Oil Prices Slip but Stay Above $54

Oil Prices Slip but Stay Above $54 a Barrel After U.S. Says Domestic Supplies Rose Last Week

VIENNA, Austria (AP) -- Crude oil futures declined but remained above $54 a barrel Thursday after the U.S. government said domestic supplies of oil, gasoline and distillate fuels rose last week.

Prices shot up by 5 percent a day earlier on persistent concerns about strong demand. Some concern that increased OPEC production had failed to put a lasting dent in prices and forecasts of an active hurricane season in the United States -- with the potential for disruptions in refining and downloading crude -- added to sentiment that has prompted prices to surge from the $47 level in two weeks.

-cut-

In its weekly petroleum supply report, the U.S. Department of Energy said inventories of crude oil rose last week by 1.4 million barrels to 333.8 milllion barrels, or 11 percent above last year. Gasoline inventories grew by 1.3 million barrels to 216.7 million barrels, up 6 percent from a year ago. The supply of distillate fuel, which includes heating oil, diesel and jet fuel, increased by 700,000 barrels to 106.4 million barrels, about even with a year ago.

more...

http://biz.yahoo.com/ap/050602/oil_prices.html?.v=12

[UpInArms]

4. SEC boss quits, raising reform questions

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=8675073&src=rss/businessNews

WASHINGTON (Reuters) - U.S. Securities and Exchange Commission Chairman William Donaldson said on Wednesday he will resign on June 30, raising doubts about whether the agency's tougher post-Enron stance on corporate misconduct will be sustained.

President Bush must name a successor soon for Donaldson, who backed a strong enforcement agenda at the SEC and pushed through new rules affecting mutual fund governance, hedge fund advisers and stock market trading and pricing.

Several newspapers, including The New York Times and The Wall Street Journal, reported that Bush was expected to nominate Rep. Christopher Cox, a California Republican, to head the SEC.

Some of Donaldson's initiatives angered business executives and their allies in the Bush administration, who said they raised the costs of doing business and discouraged risk taking.

Business lobby groups wasted little time in calling for a change in tone at the top of the SEC.

The U.S. Chamber of Commerce, which is suing the agency over a mutual fund governance rule backed by the chairman, said his successor will have "a fundamentally different job than the one that Mr. Donaldson walked into, which was a job to focus on restoring confidence, transparency in our capital markets."

...more...

Guess we're going to rid ourselves of those nasty goals: restoring confidence, transparency in our capital markets

[UpInArms]

39. Bush picks Rep. Cox to head SEC, major shift seen

http://www.reuters.com/financeNewsArticle.jhtml?jsessionid=1D1ENTRREOY2CCRBAELCFEY?type=governmentFilingsNews&storyID=8680629§ion=investing

WASHINGTON, June 2 (Reuters) - President George W. Bush on Thursday named Rep. Christopher Cox -- a champion of curbing investor lawsuits -- as the White House's choice to head the U.S. Securities and Exchange Commission, prompting academics to predict a major shift in the market-regulating agency's focus.

<snip>

Cox, who has also pushed in Congress for lower taxes on investment income, is a graduate of both Harvard Law School and Harvard Business School. He has been in Congress since 1988 and was the first chairman of the Homeland Security Committee.

<snip>

He was an author of a 1995 law that critics charged made it more difficult to sue corporations.

From 1978 to 1986, Cox specialized in venture capital and corporate finance with the international law firm of Latham & Watkins in Southern California, a high-tech industry center.

...more scary stuff at link...

:scared:

(edited to fix link)

[UpInArms]

5. Boeing job cuts will top 1,000

http://www.kansas.com/mld/kansas/11793987.htm

The number of jobs cut at Boeing Wichita will rise to more than 1,000 over the weekend and may go higher as Onex Corp. presses ahead with plans to buy the plant by June 16.

On Friday and Saturday, Onex will send certified letters to all 7,600 workers at the commercial jet operation and some of the 1,700 workers at the plant's Shared Services Group. That's when employees will learn whether they should come back to work on Monday.

An official with the Society of Professional Engineering Employees in Aerospace said Wednesday that Onex plans to buy Boeing Wichita without negotiating a contract with the union.

<snip>

"We firmly believe this is the best option for employees, their families and communities," Wright said. "This sale will bring new customers, new investments, new work and, ultimately, new jobs to these facilities and the people who rely on them."

...more...

[UpInArms]

7. Guidant sold possibly flawed devices after fix-NYT

http://www.reuters.com/financeNewsArticle.jhtml?type=governmentFilingsNews&storyID=8673562§ion=investing

NEW YORK, June 2 (Reuters) - Guidant Corp. (GDT.N: Quote, Profile, Research) continued to sell a heart device containing a possible electrical flaw even after it had manufactured versions that fixed the problem, the New York Times reported on Thursday.

Citing data the medical device maker provided to a Minnesota hospital, the newspaper said Guidant sold the potentially defective implantable defibrillators for several months after it had addressed the problem, rather than recalling the older devices that might fail.

In response to questions from the paper, Guidant said it continued to sell the older units out of inventory because it believed the devices were reliable.

Implantable cardioverter defibrillators, or ICDs, are potentially life-saving devices used to shock a dangerously racing heartbeat back into its normal rhythm.

Last month, Guidant notified doctors that a line of its ICDs contained a flaw that has caused a small number of them to malfunction, but it did not recommend replacing them in the 24,000 people who still have the units implanted.

...more...

With Donaldson leaving, I guess corporate honesty is no longer going to matter :eyes:

[amandabeech]

37. Tort reform will take care of the rest. n/t

[Maeve]

8. Reports due at 8:30--Initial Claims and Productivity for Q1

Inital Claims last week--323K, expected to go :shrug: up to 325 or down to 320, take your pick of predictors.

Productivity was 2.5%, expected to report at 3%

The bond market is where the interest is this morning, tho.

[UpInArms]

9. HiHo Maeve!

So glad to see you here this bright and shiny morning! :hi:

:toast:

Would you like some :donut: or should we just get the :popcorn: ?

[Maeve]

11. Coffeeeeeee!!!

Y'know, all the ups and downs make it look like the market is vital and active, but look at a longer view (longer than say, a couple of days) and the market is relatively flat. "Good jump in May"= back up to where it was at the beginning of March.

A bit Shakespearean--full of sound and fury, signifying nothing.

Okay...so my hand is still healing and I've been working on a booklet about Irish Wakes and I'm less than cheerful...

[Maeve]

13. Productivity revised to 2.9%

http://www.marketwatch.com/news/story.asp?guid=%7B19D4B865%2D5BE5%2D4382%2D88C2%2D1504886E631C%7D&siteid=mktw

WASHINGTON (MarketWatch) - Productivity growth in the U.S. nonfarm business sector was stronger in the first quarter than previously estimated.

Productivity was revised to a 2.9 percent annual growth rate from the 2.6 percent estimate a month ago, the Labor Department said Thursday.

The increase was in line with economists forecasts, considering the upward revision to first-quarter gross domestic product.

[ozymandius]

21. All hail Maeve, Queen of Connacht!

:donut: :donut: :donut:

Good to see you around this morning Maeve! I am still looking forward to that folk tales book. Let me kow when the details are sorted out.

Ozy :hi:

[Maeve]

23. It's on Amazon.com now

Search for "Seamus McSeamus". Also at barnesandnoble.com and http://www.bookmasters.com/marktplc/01430.htm

[ozymandius]

25. Thank you!

By the way - B&N supports Dems overwhelmingly with their campaign contributions. Amazon does not.

FYI

[Maeve]

26. Check your inbox

Poor authors have to look to maximum publicity, I'm afraid. But I expect most of my sales will be personal and I ONLY support Dems with my campaign contributions!

[UpInArms]

10. U.S. Treasuries fall in Asia on profit-taking

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8673308§ion=investing

TOKYO, June 2 (Reuters) - U.S. Treasury prices fell in Asia on Thursday as investors locked in gains after a sharp rally in the previous session which brought benchmark 10-year yields to their lowest levels in move than a year.

With chances emerging that the Federal Reserve may halt its rate increases sooner than the market had assumed, traders said bond yields still had some room to fall.

Data showing waning manufacturing growth and remarks on Wednesday by a Fed official suggesting the central bank may be nearing the end of a series of rate increases spurred Treasury buying.

The Institute for Supply Management said its index of national manufacturing activity fell to 51.4 in May from 53.3 in April, its lowest point in almost two years.

Indices for prices paid and employment in the ISM weakened, prompting some traders to speculate that Friday's release of U.S. nonfarm payrolls could fall below economists' forecast.

"The 10-year yield falling below 4.0 percent is excessive and is prompting profit-taking," said a trader at a Japanese bank.

...more...

[UpInArms]

15. Treasurys rise as traders digest mixed batch of data

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38505.3616348843-836200244&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Treasurys rose early Thursday, sending yields lower, as traders digested a mixed batch of data on jobless claims, productivity and labor costs. Jobless claims rose sharply in the latest week, mainly due to temporary layoffs in the auto sector, the Labor Department said. Claims rose by 25,000 to 350,000, against expectations of a rise of just 1,000. First-quarter productivity was revised up to 2.9% from 2.6%, in line with forecasts. But unit labor costs, a key measure of inflationary pressures from wages, rose a revised 3.3% from the initial estimate of 2.2%. The yield on the benchmark 10-year note fell to a low of 3.895% immediately after the data from 3.909% just before.

[UpInArms]

17. Fed adds temporary reserves through 14-day RPs

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8678587§ion=investing

NEW YORK, June 2 (Reuters) - The Federal Reserve said on Thursday it added temporary reserves to the banking system through 14-day system repurchase agreements.

Fed funds last traded at 3.00 percent, matching the Fed's current 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]

40. US Treasury to sell $12 bln cash management bills

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8680704§ion=investing

WASHINGTON, June 2 (Reuters) - The U.S. Treasury Department said on Thursday it will sell $12.00 billion of 8-day cash management bills on Monday, June 6.

The bills will be issued on June 7 and mature June 15.

Treasury said $9.10 billion of bills can be excluded when bidders calculate their net long positions. The net long position reporting threshold is $4.20 billion.

Noncompetitive bids must be received by 11:00 a.m. EDT (1500 GMT) and competitive bids by 11:30 a.m. EDT (1530 GMT).

The CUSIP for the 8-day bills is 912795TM3.

Check-Kiting???

[UpInArms]

41. U.S. Treasury to sell $32 bln bills Monday

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8680578§ion=investing

WASHINGTON, June 2 (Reuters) - The U.S. Treasury Department said on Thursday it will sell $17 billion of three-month bills and $15 billion of six-month bills on Monday, June 6.

The bills will be issued on Thursday, June 9.

Proceeds from the sale will be used to refund an estimated $37.03 billion of publicly held bills maturing June 9 and to pay down about $5.03 billion.

The three-month bills mature on Sept. 8, while the six-month bills mature on Dec. 8.

Treasury said $6.30 billion of the three-month bills can be excluded when bidders calculate their net long positions. The net long reporting threshold for the three-month bills is $5.95 billion and for the six-month bills it is $5.25 billion.

...more...

$32,000,000,000 !

[UpInArms]

18. Roach: Global: Rethinking Bonds

(sorry if this is a repost, but it is definitely timely and worth the read)

http://www.morganstanley.com/GEFdata/digests/20050531-tue.html#anchor0

When I first wrote of an interest rate conundrum in January, little did I know how deeply this concept was about to become ingrained in the heart and soul of central banks and financial markets (see my 18 January dispatch, “The Real Interest Rate Conundrum”). But conundrum it is, as real rates remain at unbelievably low levels at the short and long end alike -- in the US, Europe, Japan, and even emerging markets. Given my concerns over the US current account deficit, I have long in the bearish camp with respect to the US bond market outlook. A rethinking is now in order. The likelihood of a China-led slowing of Asia has prompted me to change my view. I now suspect bond yields will stay low for the foreseeable future, and I wouldn’t rule out the possibility that they might even drift lower.

Recent trading action in fixed income markets has revealed a lot about the character of the interest rate conundrum. During the credit scare of early May, the so-called riskless asset -- namely, US Treasuries -- have benefited from a classic safe-haven bid. Yields on 10-year Treasury notes fell from close to 4.3% to nearly 4.0%. Yet something strange has occurred as the angst of the credit event faded -- long-term yields haven’t returned to their earlier levels. As always, there are a multitude of factors bearing down on financial markets that make it difficult to dis-entangle the impacts of any one development. The mid-May release of a surprisingly benign CPI report -- a core rate of inflation that was unchanged for April on a month-to-month basis and decelerating on a year-over-year basis for the second month in a row -- certainly stands out as a new and constructive piece of information for the bond market. But I don’t think that was enough to neutralize the typical reflex effect that almost always occurs as the urgency of a flight-to-quality bid fades. Something else is going on in the bond market.

The asset-allocation flows of a low-return world are obviously an important part of this equation. The demographic imperatives of funding ever-mounting asset-liability mismatches have put a natural bid under long duration assets. With the days of heady, late 1990s-style returns on equities long thought to be over, fixed income instruments have become the new asset class of choice for fund managers. Central banks have encouraged this tilt by holding policy rates near the zero threshold in real terms for the past several years. The result has been a succession of carry trades that became the icing on the cake for ever-frothy fixed income markets -- also bringing hedge funds and speculators into the game. The migration of bets along the risk curve has had a stunning logic. Investors have been vulture-like in squeezing excess returns out of one type of instrument and then moving on to the next. It started with sovereign bonds and has then spread in rapid succession to investment-grade corporates, high-yield corporates, emerging-market debt, and, more recently, the exotic structured credit products.

...much more...

[UpInArms]

20. pre-opening blather

briefing.com

9:00AM: S&P futures vs fair value: -2.6. Nasdaq futures vs fair value: -5.0. Still shaping up to be a lower open for the cash market, as mixed same-store sales figures help prompt early profit taking following yesterday's strong run-up... Wal-Mart (WMT) reaffirms May comps of 2.5% and now sees June comps in the 2-4% range while Target (TGT) has reported a 5.1% increase in May comps (consensus 4.6%)... Better than expected May comps have also come from JCP, COST, AEOS, ANF, LTD, JWN and TLB, but GPS, ANN, FDO, PIR and TJX have missed expectations

8:32AM: S&P futures vs fair value: -3.1. Nasdaq futures vs fair value: -5.0. Futures trade pulls back a bit following economic data, still indicating a lower open for the indices... Weekly jobless claims rose 25K to 350K, above forecasts of 325K, while Q1 Productivity was revised upward to 2.9%, versus consensus of 3.0% and a prior read of 2.6%, but unit labor costs - a key inflation measure - rose 3.3%, versus estimates and a prior read of 2.2%

8:00AM: S&P futures vs fair value: -1.4. Nasdaq futures vs fair value: -4.5. Futures market versus fair value suggesting a lower open for the cash market following yesterday's rally in both stocks and bonds... Meanwhile, investors continue to sift through May same-store sales figures from more than 50 retailers ahead of economic data... At 8:30 ET, the Labor Dept. will release initial jobless claims (consensus 325K) while investors will also get a revision on Q1 productivity (consensus +3.0%)

ino.com

The June NASDAQ 100 was slightly higher overnight as it consolidates above the 62% retracement level of this year's decline crossing at 1554.75. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. Closes below Tuesday's low crossing at 1540 would signal that the short covering rally off April's low has come to an end. If June extends this spring's rally, the February high crossing at 1574.50 is the next upside target. The June NASDAQ 100 was up 0.50 pts. at 1558 as of 5:23 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 slightly higher overnight as it consolidates above the 62% retracement level of this year's decline crossing at 1196.55. 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. 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 Tuesday's low crossing at 1191.70 would signal that a short-term top has been posted. The June S&P 500 Index was up 0.60 pts. at 1201.80 as of 5:26 AM ET. Overnight action sets the stage for a steady to higher opening when the day session begins later this morning.

[Maeve]

22. Today's Wash. Post column from Samuelson

The curse of cheap credit?

Call it cheap credit's revenge. We seem to have arrived at the curious juncture where the low interest rates that rescued us from the last recession might be the cause of the next -- or, at any rate, might be the cause of some serious economic or financial unpleasantness. It turns out (not surprisingly) that cheap credit, when continued too long, inspires suspect and speculative borrowing. It becomes a formula for its own undoing.

William Rhodes, senior vice chairman of Citigroup, puts it this way: "The speculation here is more evident than people seem to realize. . . . I've seen this movie." The script is familiar. Too much cheap credit induces overborrowing. During the borrowing phase, the economy seems to do fine. But sooner or later the prices of things bought on credit rise to artificially high levels. Prices stop rising -- and perhaps crash. Lenders and borrowers suffer losses. Their spending slows or declines, dragging down the economy.


The present recovery is built largely on cheap credit. Striving to prevent a punishing recession after the 1990s' stock "bubble," the Federal Reserve lowered interest rates. The federal funds rate (the rate on overnight loans between banks) dropped to 1 percent. That policy worked. Americans borrowed heavily, particularly for housing. The result was a construction boom and a helpful rise in home prices. The higher housing values fortified confidence and provided -- through the refinancing of mortgages at lower rates -- huge cash windfalls that fueled consumer spending.
<more>
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/01/AR2005060101643.html

[ozymandius]

24. Investors are losing 2 friends

Investors are about to lose their two strongest allies on the five- member Securities and Exchange Commission.

Chairman William Donaldson will retire June 30, about two years before his term expires. Harvey Goldschmid is scheduled to leave in July.

Goldschmid, a Democrat and securities lawyer, was expected to be a staunch investor advocate and turned out to be one.

The surprise was Donaldson. Although he is a Republican nominated by President Bush, Donaldson sometimes sided with the two Democrats on the commission instead of his two fellow Republicans, resulting in 3-2 votes that ushered in some important new regulations.

more...

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/06/02/BUGIVD1UDH1.DTL&type=business

[UpInArms]

27. 8:38 EST markets are open

Dow 10,516.76 -33.11 (-0.31%)
Nasdaq 2,083.92 -3.94 (-0.19%)
S&P 500 1,198.66 -3.56 (-0.30%)
10-Yr Bond 3.915 +0.08 (+0.20%)

NYSE Volume 73,910,000
Nasdaq Volume 117,236,000

9:15AM: S&P futures vs fair value: -2.7. Nasdaq futures vs fair value: -4.5. Stage remains set for stocks to open lower as the futures market continues to trade below fair value... Lack of support from lower bond yields, consolidation of gains on the heels of yesterday's strong performance and a larger than expected jump in jobless claims continue to weigh on early sentiment... However, Sun Microsystems' (SUNW) $4.1 bln cash offer for StorageTek (STK) could be a bright spot for technology

[ozymandius]

28. ha! I sometimes forget that you're not on east coast time.

Not doing much better at 9:49

Dow 10,516.32 -33.55 (-0.32%)
Nasdaq 2,087.90 +0.04 (+0.00%)
S&P 500 1,199.51 -2.71 (-0.23%)
10-Yr Bond 39.11 +0.04 (+0.10%)
NYSE Volume 165,788,000
Nasdaq Volume 214,906,000

[ozymandius]

29. blather

9:40AM: Market opens lower following yesterday's rally as investors digest an unexpected increase in weekly jobless benefits... Initial claims rose 25K to a two-month high of 350K (consensus 325K), due largely to temporary automobile-industry layoffs, lending further credence to arguments about slowing economic growth...

However, while the weekly data have been extremely volatile - as the 4-week average of 335K better reflects the near term trends and also reflects the strengthening labor conditions - the data have no implications for the May employment figures, which will have far more impact when released tomorrow morning... Separately, April Factory Orders (consensus +1.1%) will be released at 10:00 ET...

[UpInArms]

31. LOL!

It's that my sleep patterns are so disturbed - I seem to rise way too early for being CST :D

Then - when I forget to really look at the Yahoo page time and see my computer clock instead ......

:crazy:

[UpInArms]

32. 10:06 EST numbers and blather

Dow 10,527.04 -22.83 (-0.22%)
Nasdaq 2,088.92 +1.06 (+0.05%)
S&P 500 1,200.36 -1.86 (-0.15%)
10-Yr Bond 3.909 +0.02 (+0.05%)

NYSE Volume 275,289,000
Nasdaq Volume 324,033,000

10:00AM: Major indices now trade in split fashion as sector leadership remains mixed... Financial has paced the way lower after several analysts cut their estimates on J.P. Morgan (JPM 35.17 -0.59), which said Q2 trading profits would be the worst in recent memory... Health Care has been weak after Biogen Idec Inc. (BIIB 38.10 -1.67) told the FDA of a fourth patient contracting PML while weakness in Chemicals and Steel has weighed on the Materials sector...

Energy has also lost ground amid falling oil prices and ahead of the EIA's weekly oil report (10:30 ET) - crude oil inventories (consensus +125K), gasoline supplies (consensus +400K) and distillates (consensus +1.45 mln)... Technology, however, has posted a modest gain, benefiting from Sun Microsystems' (SUNW 3.79 -0.10) proposed $4.1 bln cash offer for StorageTek (STK 36.45 +5.22) and strength in Semiconductor... NYSE Adv/Dec 857/1553, Nasdaq Adv/Dec 1120/1182

(edited for html)

[UpInArms]

34. U.S. May layoffs up 42% to 82,283, Challenger says

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38505.4230067477-836203757&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Corporate layoff announcements increased by 42% in May to 82,283, according to a monthly tally released Thursday by outplacement firm Challenger Gray & Christmas. So far in 2005, layoff announcements are running 4.6% ahead of last year's pace. Job cuts in the computer industry surged to 17,886 in May as companies reacted to weak demand in European markets. "With so many question marks in this economy, employers appear to be in a holding pattern," said John Challenger, CEO of the firm. "More companies are retaining their workers, but they seem reluctant to add workers."

edited to add Reuters blurb:

http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=8679906§ion=investing

U.S. job cuts surge 42 pct in May - report

NEW YORK, June 2 (Reuters) - Planned layoffs in the United States jumped 42 percent in May from April, led by hefty job cuts in the computer industry, a report said on Thursday.

The outplacement firm Challenger, Gray & Christmas Inc. said employers announced 82,283 job cuts in May, up from 57,861 in April, and up 12 percent from May 2004.

Okay - it was 82,283 jobs cut, not announcements made.

[UpInArms]

38. Bear Stearns lowers 2005 S&P 500 target by 8% to 1,150

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38505.479997662-836206445&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Bear Stearns lowered its S&P 500 Index ($SPX) target for year-end 2005 by 8% to 1,150 from 1,250, given the slowdown in economic growth. That would imply a decline of 4.2% from the current level of 1,201. "Equities will not likely stage a major rally as long as the economy is losing steam," said equity strategist Francois Trahan. "Downside risks to equities will persist as leading indicators remain under pressure." Meanwhile, Trahan feels the Federal Reserve will end the interest rate tightening cycle soon, which should set the stage for a rally in 2006. He initiated a year-end 2006 target for the S&P 500 at 1,350, suggesting a gain of 17% over his 2005 target.

Did someone fail to play the *Co song of the "economy is strong and getting stronger"?

[UpInArms]

42. View banks too big to fail imposes costs-Fed's Stern

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8680214§ion=investing

NEW YORK, June 2 (Reuters) - The belief that some massive U.S. financial institutions are too big to fail imposes costs on the U.S. economy, Gary Stern, President of the Minneapolis Federal Reserve, said on Thursday.

The problem could be alleviated if policy-makers acted to reduce the threat of bank failures having a systemic effect, Stern said in a speech to the Conference of State Bank Supervisors in San Antonio monitored in New York.

...more...

Why are we talking about BANK FAILURES!!!!???!?!!??!!

[UpInArms]

43. Gold's slide reversing

http://www.marketwatch.com/news/story.asp?guid=%7BA473A898%2D490E%2D4FDB%2D8BCC%2DBDA9A2D81374%7D&siteid=mktw

excerpt:

Late last year, when it became clear that the long-term trend of the dollar had nowhere to go but down, everyone with a pulse went short the dollar and long gold. Gold got way ahead of itself, and the dollar plummeted. Both have spent the last few months correcting.

With gold, besides the underlying economic fundamentals, there's the battle between the commercial traders on the one side, and the hedge funds on the other. The insiders are the commercial interests who control the flow of the physical commodity.

By holding product off the market or short-selling, the commercials exert pressure on bullion that drives the market. Once the public gets in and pushes prices up, the commercials sell into the rally. Then, by short-selling near the top, they lock in high prices for themselves while scaring prices lower. When the cycle is complete, they start over again.

I closely follow the actions of these Insiders. They provide a very good indicator of where gold is headed in the short-term. Right now that indicator is solidly bullish. These runs can last anywhere from six weeks to six months, and I can usually tell from the insiders' actions when the rally is going to lose steam. Therefore, I have a high degree of confidence that now is a good time to own gold stocks.

...more...

[UpInArms]

44. Fed's Stern unfazed by relaxed credit standards (Bubble Blowers Unite!)

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8680922§ion=investing

SAN ANTONIO, June 2 (Reuters) - Shifting trends in home mortgages and the increased use of adjustable-rate terms are not a huge risk to banks, Gary Stern, President of the Minneapolis Federal Reserve, said on Thursday.

Stern told reporters after a speech to the Conference of State Bank Supervisors that, at least in the first instance, ARMs actually reduce banks' risk by shifting more risk to the borrower.

An informal meeting on the issue at the Minneapolis Fed in 2004 uncovered concerns from some sectors about the housing situation, he said.

"It sounded to me like credit standards have been relaxed. Some people expressed concern then and continue to express concern. There's some smoke there, but is there a fire? Not yet, anyway," Stern said.

...very short newsblurb...

[UpInArms]

45. 11:53 EST numbers and blather

Dow 10,531.84 -18.03 (-0.17%)
Nasdaq 2,090.34 +2.48 (+0.12%)
S&P 500 1,201.30 -0.92 (-0.08%)
10-Yr Bond 3.899 -0.08 (-0.20%)

NYSE Volume 741,651,000
Nasdaq Volume 797,370,000

11:30AM: Little changed since the last update as the major averages continue to vacillate in roughly the same ranges... Meanwhile, aside from two reports from the Labor Dept., investors have also digested data from the Commerce Dept... April factory orders rose 0.9%, the fastest rate in five months, but checked in below the 1.1% economists' had anticipated... However, due to the predictability of the report, the data have had little impact on the market... NYSE Adv/Dec 1611/1441, Nasdaq Adv/Dec 1350/1384

11:00AM: Market improves its stance somewhat following a larger than expected build in weekly inventories... The EIA has reported that crude oil inventories rose 1.49 mln barrels (consensus +250K) and gasoline inventories rose 1.30 mln barrels (consensus +400K)... While crude oil futures initially fell on the data to around $54.40/bbl (-$0.20), oil futures have since turned positive and now trade at $55.25/bbl (+$0.65)...

However, the market has perhaps found more support from a turnaround in the Energy sector (+0.1%), which reported Q105 earnings growth roughly 42% higher than in Q104, as a result of oil's reversal...NYSE Adv/Dec 1413/1570, Nasdaq Adv/Dec 1376/1299

10:30AM: While consolidation continues to weigh on stocks, so too have Treasurys succumbed to some early profit-taking... Following a solid two-day rally in bonds, traders have taken a breather this morning, locking in some gains after an unexpected jump in Q1 unit labor costs to 3.3% (consensus +2.2%) sparked labor-based inflationary pressures and countered recent indications of a potential end to further Fed tightening... However, Q1 productivity was revised higher to a 2.9% annual rate, versus economists' expectations of 3.0% and a previously reported 2.6% rate...

[UpInArms]

46. 12:08 EST numbers and noon blather

Dow 10,540.26 -9.61 (-0.09%)
Nasdaq 2,092.29 +4.43 (+0.21%)
S&P 500 1,202.03 -0.19 (-0.02%)
10-Yr Bond 3,901 -0.06 (-0.15%)

NYSE Volume 795,713,000
Nasdaq Volume 843,692,000

12:00PM: Market still trades with a tinge of caution midday, as investors show some reluctance ahead of tomorrow's influential employment data and consolidate gains following yesterday's rally, following mixed economic data and May retail comps... Weekly jobless claims unexpectedly rose 25K to a two-month high of 350K (consensus 325K), due in large part to temporary automobile-industry layoffs, lending further credence to concerns about slowing economic growth...

Even though the data have no implications for the May employment figures, which will have far more impact on the market when released tomorrow morning (8:30 ET), market participants have taken a breather following a rally that lifted the Dow and S&P to their best levels since March and the Nasdaq up 1.0%... Also weighing on sentiment has been an unexpected jump in Q1 unit labor costs to 3.3% (consensus +2.2%), which has sparked labor-based inflationary pressures and countered recent indications of a potential end to further Fed tightening...

The data, which more positively showed an upward revision in Q1 productivity (to 2.9% versus a prior read of 2.6%), have subsequently taken some steam out of a solid two-day rally in Treasurys, as the benchmark 10-year note is off 3 ticks to yield 3.89%... With regards to sector strength and weakness, Financial has paced the way lower... J.P. Morgan (JPM 35.37 -0.39) said Q2 trading profits would be the worst in recent memory while Merrill Lynch has trimmed Q2 EPS estimates on Morgan Stanley (MWD 49.42 -0.65) and Goldman Sachs (GS 97.28 -1.36)... Health Care has also been weak after Biogen Idec Inc. (BIIB 38.03 -1.74) told the FDA of a fourth patient contracting PML while weakness in Chemicals and Steel has weighed on the Materials sector...

[ozymandius]

48. watching paint dry

12:25
Dow 10,540.56 -9.31 (-0.09%)
Nasdaq 2,092.09 +4.23 (+0.20%)
S&P 500 1,202.18 -0.04 (-0.00%)
10-Yr Bond 39.01 -0.06 (-0.15%)

NYSE Volume 850,289,000
Nasdaq Volume 889,582,000

[ozymandius]

49. Bush picks Cox (a champion of curbing investor lawsuits) to head SEC

WASHINGTON (Reuters) - President Bush on Thursday named Rep. Christopher Cox -- a champion of curbing investor lawsuits -- as the White House's choice to head the U.S. Securities and Exchange Commission, prompting academics to predict a major shift in the market-regulating agency's focus.

The California lawmaker, who faces a U.S. Senate review, would replace William Donaldson. On Wednesday, amid mounting criticism from some in business for his aggressive post-Enron reforms, Donaldson said he will step down on June 30.

At a White House announcement with Cox, Bush said, "In the years ahead, Chris will vigorously enforce the rules and laws that guarantee honesty and transparency in our markets and corporate boardrooms."

Cox, who has also pushed in Congress for lower taxes on investment income, is a graduate of both Harvard Law School and Harvard Business School. He has been in Congress since 1988 and was the first chairman of the Homeland Security Committee.

more...

http://www.reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=8680680

[ozymandius]

50. Oops - sorry.

I see UIA covered this detail in post #39.

[UpInArms]

51. Cree to close its silicon microwave business

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38505.5205646644-836208228&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Cree Inc. (CREE) on Thursday said that it plans to close the silicon radio frequency and microwave semiconductor business of its Cree Microwave Inc. subsidiary and focus on wide bandgap RF and microwave products based on its silicon carbide and gallium nitride technology. The Sunnyvale, Calif.-based company will accept final buy orders through June. It plans to wind down the operations of the business by December. Cree expects to incur $13 million to $15 million in pre-tax charges to close the Sunnyvale facility. It expects to record $7 million to $9 million of the charges in the fourth quarter of fiscal 2005 and record the rest in the first and second quarters of fiscal 2006.

I can't find how many jobs are involved, but here is the facility:

http://www.cree.com/Employment/microwave.asp

Located in Sunnyvale California, Cree Microwave's manufacturing plant comprises 25,000 sq. ft for operations, 8500 sq. ft of class 100 clean room space with 10 cells under clean hoods, as well as an assembly area of 5000 sq.ft.

The modern, specialty, semiconductor wafer fabrication line is one of the few processing silicon for high power RF LDMOS and RF bipolar transistors with gold interconnect. As a result, Cree Microwave plays a critical role in assuring key RF transistor and module supplies to meet the ever increasing Wireless demand.

If you are interested in being considered for a challenging opportunity within a fast-paced, progressive organization, please indicate the position for you which you wish to be considered and submit a resume to:

...more...

[UpInArms]

53. Honeywell plans aerospace division restructuring, job cuts

http://phoenix.bizjournals.com/phoenix/stories/2005/05/30/daily33.html?jst=b_ln_hl

Honeywell International Inc. will restructure its Phoenix-based aerospace division to improve customer service.

The actions will result in job cuts, although the company has not disclosed a number at this point.

The restructuring is aimed at creating three segments: air transport and regional aircraft, business jets and general aviation, and defense and space contracts.

The changes will start to go into effect July 5.

<snip>

Honeywell has nearly 13,500 workers in Arizona and is the state's fourth-largest private employer.

...more...

[ozymandius]

54. Getting Crushed in a Housing Collapse

Ask Chuck Dannis about how it feels when a housing bubble bursts and he talks about elevators. A real estate appraiser in Texas for the past 30 years, he well remembers 1986, when crude prices dropped below $10 a barrel, mass layoffs in the oil-dependent economy followed, and the Texas real estate bubble deflated. Home prices across the Southwest fell from 10% to 20%.

"You'd get on an elevator, and it would be quiet," recalls Dannis, president of appraisal firm Crosson Dannis in Dallas and a lecturer at Southern Methodist University's Cox School of Business. "No one would talk." "For sale" signs dotted neighborhoods, with families unable to sell simply mailing their keys to the bank and walking away from homes destined to go into foreclosure.

But there was also a pervasive change in mood, a shift that affected everyone -- even those secure in their ability to remain in their homes -- and which contrasted sharply with the euphoria that reigned from 1982 to 1985, says Dannis. Back then, "everyone was happy and optimistic about the future, and they'd talk to each other on elevators," he says. But after the real estate market fell, "everyone was morose," recalls Dannis. "It felt like there had just been a funeral."

-cut-

MASHED IN MASSACHUSETTS. That's why economists -- even Federal Reserve Chairman Alan Greenspan -- are worrying lately about "froth" in the housing market. It's not that they expect home prices to plummet across the country or mass foreclosures to ruin banks (although, if things were to get really bad, that's a possibility in some regions). Rather, they see that an almost inevitable retrenchment in home price appreciation will act like rain on the economy's real estate-fueled parade.

more...

http://biz.yahoo.com/bizwk/050601/nf200505316480_db042.html

[ozymandius]

55. latest update (drumming fingers)

1:01
Dow 10,538.12 -11.75 (-0.11%)
Nasdaq 2,091.81 +3.95 (+0.19%)
S&P 500 1,202.26 +0.04 (+0.00%)
10-Yr Bond 39.05 -0.02 (-0.05%)

NYSE Volume 955,353,000
Nasdaq Volume 988,656,000

12:30PM: Stocks remain mired in a tight trading range, as investors find few catalysts to prompt much follow-through buying interest... Retail (+0.8%), however, has been one of the best performing groups in an uncertain market following May same-store sales results from more than 60 retailers... Wal-Mart (WMT 48.19 +0.27), which reported a 2.5% in May comps over the weekend, has traded higher after guiding June comps growth of 2-4%, while shares of rival Target (TGT 54.76 +0.93) have surged 1.8% after it posted a 5.1% increase in May comps (consensus 4.6%)...

Better than expected April comps have also come from Dept. Stores like JCP and JWN, as well as specialty apparel stores like AEOS, ANF and TLB... However, GPS, ANN, PIR and FDO have been a few notable names that missed forecasts, failing to weather the coldest May in 12 years and gas prices that were 9% higher than May 2004... NYSE Adv/Dec 1831/1295, Nasdaq Adv/Dec 1528/1319

[ozymandius]

56. slow trading today - just passed the billion mark

1:30
Dow 10,536.05 -13.82 (-0.13%)
Nasdaq 2,089.25 +1.39 (+0.07%)
S&P 500 1,201.90 -0.32 (-0.03%)
10-Yr Bond 39.09 +0.02 (+0.05%)

NYSE Volume 1,040,930,000
Nasdaq Volume 1,068,531,000

1:00PM: Although gains remain moderate at best, the Nasdaq continues to extend its reach into positive territory... While Disk Drive (+3.6%) has been the best performing tech group, amid news of SUNW's acquisition of STK, continued strength in chip stocks has helped the PHLX Semi Index surge 1.1%... Of the 18 index components (out of 19) trading higher, KLA-Tencor (KLAC 46.22 +0.92) has surged 2.0% after Wells Fargo initiated coverage with a Buy and $55 target, amid improvements in order momentum... Other notable movers to the upside include TER (+3.5%), BRCM (+2.2%), AMD (+1.9%) and INTC (+1.3%)... NYSE Adv/Dec 1833/1305, Nasdaq Adv/Dec 1529/1347

[UpInArms]

57. 2:22 EST numbers and blather

Dow 10,540.85 -9.02 (-0.09%)
Nasdaq 2,091.01 +3.15 (+0.15%)
S&P 500 1,202.47 +0.25 (+0.02%)
10-Yr Bond 3.901 -0.06 (-0.15%)

NYSE Volume 1,212,631,000
Nasdaq Volume 1,234,601,000

2:00PM: Still not a strong sense of conviction on either the bullish or bearish side of the aisle, as market internals now suggest a mixed bias... Advancers on the NYSE hold an 18 to 14 advantage over decliners while declining issues on the Nasdaq hold a 15 to 13 edge over advancing issues... The ratio of up to down volume, however, reflects a slightly positive tone to trading at both the Big Board and the Composite... Meanwhile, the Dow, S&P and Nasdaq continue to trade above initial support levels but all three have run into resistance near 10586, 1205 and 2095, respectively... NYSE Adv/Dec 1831/1360, Nasdaq Adv/Dec 1397/1527

1:30PM: More of the same for the averages as the Dow and Nasdaq continue to trade in opposing directions... DuPont (DD 46.37 -0.69) continues to pace the way lower on the Dow, under pressure after competitor Engelhard was downgraded at Deutsche Bank... JP Morgan (JPM 35.27 -0.49) has not been far behind, losing 1.4% after several analysts trimmed their estimates... However, losses on the blue chip index have been minimal, as no other components have lost more than 1.0%...NYSE Adv/Dec 1827/1364, Nasdaq Adv/Dec 1489/1413

[ozymandius]

61. Just in: water remains "wet"

"market internals now suggest a mixed bias"

File this under: "No Shite"

[UpInArms]

59. US 30-yr mortgages fall, poised for near-term rise

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8681913§ion=investing

WASHINGTON, June 2 (Reuters) - Average U.S. interest rates on 30-year mortgages fell to their lowest levels in more than three months, but mortgage finance company Freddie Mac said on Thursday a growing economy will begin pushing rates higher.

U.S. 30-year mortgage rates eased to an average of 5.62 percent this week from 5.65 percent last week. The average 30-year mortgage rate is the lowest since mid-February.

Freddie Mac said 15-year mortgages fell to an average of 5.20 percent from 5.21 percent. One-year adjustable rate mortgages (ARM) bucked the downward trend as they rose to an average 4.26 percent from 4.21 percent.

A year ago, 30-year mortgage rates averaged 6.28 percent, 15-year mortgages 5.63 percent and the ARM 3.98 percent.

"Improvements in the job market and rising wages will likely put upward pressure on mortgage rates in the coming months," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

...more...

[UpInArms]

60. New FHLB notes draw record amount of foreign buying

(Federal Home Loan Bank notes are not Treasury Notes)

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8681582§ion=investing

NEW YORK, June 2 (Reuters) - Overseas investors bought a record 65 percent of a new Federal Home Loan Bank $4 billion global note issue on Thursday, displaying their fever-pitched quest for safe U.S. assets.

Foreign central bank holdings of U.S. agency debt, recently leaping by up to $10 billion a week, are at all-time highs and unlikely to ebb soon, currency and bond strategists say.

"If they did slow down their buying of fresh bonds, they would need to convert their U.S. dollar holdings to another currency to do that, and we just don't see them doing that," said Michael Woolfolk, senior currency strategist at Bank of New York.

FHLB's two-year deal yielded 3.69 percent, 17 basis points more than U.S. Treasuries. Asia sopped up 55 percent of the notes, overshadowing the 35 percent sold in the United States, 4 percent in Europe and 6 percent in other regions.

...more...

[RawMaterials]

62. Closing Numbers and Blather

Dow 10553.49 +3.62 (+0.03%)
Nasdaq 2097.80 +9.94 (+0.48%)
S&P 500 1204.29 +2.07 (+0.17%)
10-Yr Bond 3.890% -0.17

NYSE Volume 1,797,231,000
Nasdaq Volume 1,747,151,000



Close: Decent follow-through seen in stocks, as modest buying efforts closed the major averages near session highs ahead of tomorrow's May employment report... The market struggled to find much direction throughout most of the session, as mixed economic data prompted investors to consolidate some gains following yesterday's rally that lifted all the major indices to their best levels since March...

But upon further analysis of this morning's data, coupled with a late-day pullback (-1.8%) in oil prices ($53.63/bbl -$0.97), improved sentiment enough to close 7 out of 10 economic sectors in positive territory... Meanwhile, initial claims unexpectedly rose 25K to a two-month high of 350K (consensus 325K), due in large part to temporary automobile-industry layoffs, lending further credence to concerns about slowing economic growth... However, since the volatile data have no implications for the May employment figures, the report was sidelined in favor of Friday's far more influential jobs data... Another piece of economic data that had investors questioning yesterday's potential Fed pause was the Labor Dept.'s revision on Q1 productivity...

While Q1 productivity was revised higher to a 2.9% annual rate, versus economists' expectations of 3.0% and a previously reported 2.6% rate, an unexpected 3.3% jump in Q1 unit labor costs - a key inflation metric - countered recent indications of a potential end to further Fed tightening... As a result, the largest two-day rally in Treasurys since December came to an end, as the benchmark 10-year note closed unchanged to yield 3.89% and bond traders geared up for tomorrow's employment figures...

With regards to sector strength and weakness, Technology paced the way higher, getting a boost from new M&A activity - Sun Microsystems' (SUNW 3.75 -0.15) proposed $4.1 bln cash offer for StorageTek (STK 36.45 +5.22)... Strength in Semiconductor, due in part to a 3.5% surge in KLA-Tencor (KLAC 46.22 +0.92) after Wells Fargo initiated coverage with a Buy rating and $55 target, as well as gains in Disk Drive (i.e. SUNW/STK deal) and Networking, helped the Nasdaq close at its best level since January 18...

Telecom Services (+0.5%) was also strong following an update regarding next month's shareholder vote to approve the proposed $35 bln Sprint/Nextel merger and a 4.2% surge in shares of Alltel (AT 60.67 +2.42), which is acquiring WWCA... Health Care was also an influential leader to the upside, as strong follow-through interest in HMOs helped weakness in Biotech, after Biogen Idec Inc. (BIIB 38.07 -1.70) told the FDA of a fourth patient contracting PML... Consumer Discretionary (+0.6%) was also strong, even though May same-store sales growth of 2.9% checked in at the low end of the trade association ICSC's 3.0 to 3.5% range... Target (TGT 54.55 +0.72) and Nordstrom (JWN 63.92 +2.57) both hit 52-week highs after posting May comps growth of 5.1% and 7.4%, respectively...

May comps from Federated Department Stores (FD 69.09 +1.39) and May Department Stores (MAY 38.70 +0.39), however, missed analysts' expectations, but shares of both retailers climbed amid news that Citigroup (C 47.71 -0.01) will their credit-card portfolios... Energy eked out a modest gain as oil prices closed lower following larger than expected inventory builds... Crude oil inventories rose 1.49 mln barrels (consensus +250K) while gasoline inventories climbed 1.30 mln barrels (consensus +400K)...

The Materials sector, however, paced the way to the downside, as a surge in gold amid profit-taking in the dollar was not enough to offset weakness in Chemicals, Steel and Paper... Financial was also weak, losing ground after J.P. Morgan (JPM 35.71 -0.05) said Q2 trading profits would be the worst in recent memory and Merrill Lynch trimmed Q2 EPS estimates on Morgan Stanley (MWD 49.28 -0.79) and Goldman Sachs (GS 97.65 -0.99)... NYSE Adv/Dec 1948/1362, Nasdaq Adv/Dec 1607/1428


Check out oil creeping back up over 54$
night everyone :hi: