STOCK MARKET WATCH, Monday 6 June

[ozymandius]

Monday June 6, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 229 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 169 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 232 DAYS
DAYS SINCE ENRON COLLAPSE = 1289
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 3, 2005

Dow... 10,460.97 -92.52 (-0.88%)
Nasdaq... 2,071.43 -26.37 (-1.26%)
S&P 500... 1,196.02 -8.27 (-0.69%)
10-Yr Bond... 3.98% +0.09 (+2.29%)
Gold future... 425.80 +1.00 (+0.23%)

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 Tim W. Wood

THE DOW REPORT
"The Speculative Episode"
This article appeared originally December 12, 2003...
Mr. Wood is unavailable today, but thought this article
would be appropriate for today's market.

The following text is a quote from the book A Short History of Financial Euphoria by John Kenneth Galbraith. I found this material to be very fitting and for that reason I wanted to share it with you.

“Anyone taken as an individual is tolerably sensible and reasonable…as a member of a crowd, he at once becomes a blockhead.” …Friedrich Von Schiller, As quoted by Bernard Baruch

That the free-enterprise economy is given to recurrent episodes of speculation will be agreed. These--great events and small, involving bank notes, securities, real estate, art and other assets or objects--are, over the years and centuries, part of history. What have not been sufficiently analyzed are the features common to these episodes, the things that signal their certain return and have thus the considerable practical value of aiding understanding and prediction. Regulation and more orthodox economic knowledge are not what protect the individual and the financial institution when euphoria returns, leading on as it does to wonder at the increase in values and wealth, to the rush to participate that drives up prices, and to the eventual crash and its sullen and painful aftermath. There is protection only in a clear perception of the characteristics common to these flights into what must conservatively be described as mass insanity. Only then is the investor warned and saved.

-cut-

The more obvious features of the speculative episode are manifestly clear to anyone open to understanding. Some artifact or some development, seemingly new and desirable--tulips in Holland, gold in Louisiana, real estate in Florida, the superb economic designs of Ronald Reagan--captures the financial mind or perhaps, more accurately, what so passes. The price of the object of speculation goes up. Securities, land, objets d’art, and other property, when bought today, are worth more tomorrow. This increase and the prospect attract new buyers; the new buyers assure a further increase. Yet more are attracted; yet more buy; the increase continues. The speculation building on itself provides its own momentum.

-cut-

For built into this situation is the eventual and inevitable fall. Built in also is the circumstance that it cannot come gently or gradually. When it comes, it bears the grim face of disaster. That is because both of the groups of participants in the speculative situation are programmed for sudden efforts at escape. Something, it matters little what--although it will always be much debated--triggers the ultimate reversal. Those who had been riding the upward wave decide now is the time to get out. Those who thought the increase would be forever find their illusion destroyed abruptly, and they, also, respond to the newly revealed reality by selling or trying to sell. Thus the collapse. And thus the rule, supported by the experience of centuries: the speculative episode always ends not with a whimper but with a bang. There will be occasion to see the operation of this rule frequently repeated.

more...

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

[AnneD]

54. Belated good morning marketeers

:donut: Although I have not posted in a few days, my thoughts have been with you. I was/am very upset with the nom. of Cox to head up SEC. It is truly a bad day for the small investor such as myself. Ozy, it is interesting that you posted this wrap up. I went out and purchased some summer reading material. I am currently reading The Great 401(k) H()ax by Wm Wolman and Anne Colamosca. I know, I know...I am such a nerd. Really thought provoking and doesn't paint too pretty a picture for the majority of American families that are investing in 401K for retirement. The fact that Cox heads it up now makes me glad I stopped the 401 contributions. I am working on debt reduction so my money has a place for now....but the 60k question is....where do you put the retirement money...red or black and what number???? So my watercooler question today is what financial and tech book are you reading or would you recommend. I notice I am reading more nonfiction these days...why???? Well, I think I get enough fantasy via TV and WS reports. Happy hunting and watch out for the bears.

[ozymandius]

56. Hi AnneD. I recall this thread in the Econ forum

with some good suggestions.

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=114&topic_id=12820#13175

[AnneD]

60. Thanks Ozy...

that is just what I was looking for. You guys are so smart, my IQ goes up a couple of points logging on daily. I know my financial IQ has improved as well.

[UpInArms]

2. daily dollar watch

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

Last trade 87.70 Change -0.34 (-0.39%)

“Dollar Bull Is About To Lose Its Horns”

http://www.dailyfx.com/index.php?option=com_content&task=view&id=1410&Itemid=39

EUR/USD – Euro bulls are finally getting a chance to exalt their revenge upon the greenback bulls as the dollar long lost momentum when the pair approached the 1.2150 level. As the euro bulls finally getting their chance to take back some of the territory lost to the dollar, their advance will most likely will be capped by the 1.2700-30 range a strong resistance which marked the previous 2005 low. Also traders should expect quiet a few exotic option strike barriers to be placed around the 1.2500 figure, making it a perfect target for the institutional traders to aim for. Indicators signal a maturing trend with ADX (DMI) on the daily chart is at 38.55. Stochastic remains extremely oversold on the daily chart at 9.05, which is indicative of a strong trend. The Stochastic on the dealer (4HR) chart is neutral at 38.36. RSI is extremely oversold on the daily chart at 19.17 with the 4-hour chart RSI neutral at 44.33. MACD remains deep below the zero line on both the daily chart and is slopping upward toward the zero line 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 traders managed to take the upper hand in the latest chapter of the yen versus the dollar saga and pushed the dollar below the 108.00 figure. As the yen continues to retrace the latest move made by the greenback, traders should expect the price action to heat up around the 107.00 figure as the break below, will most likely see the pair aim for 106.00, a logical place to find a number of large institutional exotic option barriers. Indicators signal trend reversal, with ADX (DMI) dropping to 25.6. Stochastic is slopping downward above the overbought line on the daily chart at 83.17, supporting a view that a trend might be weakening. The Stochastic on the 4-hour chart is treading below the oversold line at 14.57, thus providing dollar bulls with a chance to mount a counterattack. RSI is neutral at 54.29 on the daily chart, with dealer (4HR) chart RSI slopping downward toward the oversold line at 39.14. MACD is making a bearish crossover above the zero line on the daily chart, with MACD on the 4-hour chart crossing below the zero line. If the yen bulls 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...

Return of the Euro

http://www.dailyfx.com/index.php?option=com_content&task=view&id=1422&Itemid=39

Well it sure must have been fun for the dollar bulls. The unit gained an astounding 13 cents against the euro in merely 2 months and reversed the whole euro rally of late 2004. At that time Newsweek came out with its infamous “The Incredible Shrinking Dollar” cover story proving once again that there are no worse traders than the popular press. Of course now that the tide has turned we are waiting for the Time magazine article to solemnly proclaim “The End of the Euro!” which will no doubt mark the top of the dollar rally

Meanwhile, the euro seems to need no help from mass media as the unit is recovering smartly in European session tonight buoyed by a recovery in Retail PMI figures which have moved back up above the 50 expansionary level to 50.2. In fact Germany’s retail sales jumped to the highest reading in 5 months while French numbers increased for the 1st time in 4 months.

Talk, both in Europe and US is turning to interest rate policy with European officials suggesting that ECB lower it ‘s benchmark rate while some analysts project that US may soon cease hiking the Fed funds rate further. German Deputy Finance Minister Pfaffenbach was the latest European politician to press the ECB for a rate cut in a Bloomberg TV interview tonight. We doubt that ECB will be swayed by the rhetoric, given that the euro has already declined by 1300 points and may have already done the stimulative work for the bank. However, even if it does lower rates the ECB rate cut is unlikely to be more than 25bp. The ECB is far more concerned with price stability rather than spurring growth and is loathe to enact inflationary policies. In US meanwhile traders will follow Alan Greenspan’s testimony to Congress on Thursday to ascertain if last Friday’s soft NFP figures may have tempered his enthusiasm for additional rate hikes. If US is indeed in the final phase of its tightening cycle then the carry trade advantage enjoyed by the greenback may soon lose its luster, and the market will begin refocusing on US’s deteriorating Balance Sheet position.

...more...

(edited because I wasn't really ready to hit "post")

[UpInArms]

15. Dollar weaker ahead of Greenspan

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38509.3762983912-836329592&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) - The dollar was weaker against other major currencies early Monday ahead of an appearance by Federal Reserve Chief Alan Greenspan at a Beijing monetary conference. Overnight the dollar weakened after strong Japanese corporate investment data raised expectations that Japan's economy may have performed better than previously thought in the first quarter. The euro was up 0.4% at $1.2268 and the dollar down 0.5% at 107.09 yen.

[UpInArms]

30. Metal futures open higher as dollar weakens

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38509.4286161343-836332078&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Metal futures opened higher across the board Monday after the dollar weakened overnight in the wake of strong Japanese data, which raised expectations that Japan's economy may have performed better than previously thought in the first quarter. August gold rose $2.30 to $428.1 an ounce, while August palladium made the biggest gain, adding $4.60 to $191 an ounce.

[UpInArms]

63. Dollar slips on Japan spending news

http://www.marketwatch.com/news/story.asp?guid=%7B77E6FB69%2D43C6%2D436C%2DA336%2DD5888532756C%7D&siteid=mktw

NEW YORK (MarketWatch) - The dollar was lower against the euro and yen Monday, under pressure from overnight news of stronger-than-expected first-quarter capital spending in Japan.

In recent trades, the euro was up 0.4% at $1.2274 and the dollar down 0.7% at 106.85 yen.

The dollar lost strength after Japan's Ministry of Finance released data showing that Japanese companies' first-quarter capital outlays rose for the eighth straight quarter.

Capital expenditures rose 7.4% on year in the January-March period, faster than the previous quarter's 3.5% on-year rise, the Ministry of Finance said in a quarterly report.

The data raised hopes that the economy is stronger than previously believed and that government will upwardly revise preliminary gross domestic product figures. See full story.

...more...

peeking at the buck:

Last trade 87.59 Change -0.45 (-0.51%)

Settle 88.04 Settle Time 23:36

Open 87.74 Previous Close 88.04

High 88.05 Low 87.51

Last tick: 2005-06-06 14:58:12 ET
30-min delayed quote.

[UpInArms]

3. Day-trading retirees?

They're blowing bubbles
Irrational exuberance is back and 'I'm mad as hell!'

http://www.marketwatch.com/news/story.asp?guid=%7BF401FDEF%2D08B0%2D4A2A%2D8009%2D628DF0D2FD31%7D&siteid=mktw

ARROYO GRANDE, Calif. (MarketWatch) -- Remember the 1976 movie, "Network;" the over-the-top warning of the anchorman screaming at people to open their windows and shout: "I'm mad as hell, and I'm not going to take this anymore!"

Well, folks, that's how I feel. No more mincing words. I worked at Morgan Stanley during the 1970s market collapse and have been through a few since. And lately I'm seeing telltale signs everywhere warning us that despite all the bullish propaganda, a bubble's about to burst. Something will pull the trigger -- real estate, hedge funds, deficits, something.

One reader email convinced me we're going over the edge. Jack (not his real name) went to a seminar promoting an active stock-trading system: "Boy, does this sound like a great way to make money in the stock market during my retirement years. The class only costs a few thousand. I'm thinking about signing up and playing with $50,000 of my retirement funds. What do you think?"

"Playing" the market? Great way to make money? For a retiree? I think he's nuts!

Remember "irrational exuberance?" It's back! The lessons of the 2000 crash? Forgotten. Even if Jack has a few million and can afford to lose $50,000, his timing is bad. Plus the odds are against winning. And "playing the market" is the wrong message when our national savings rate has fallen to zero and the average retirement nest egg is not even $50,000.

...more...

[UpInArms]

4. Far-reaching impact for stocks if home prices tumble

http://www.marketwatch.com/news/story.asp?dist=signin¶m=archive&siteid=mktw&guid=%7B45205EAC%2DCA8A%2D4B08%2D9622%2DAE7BC2761FCD%7D&garden=&minisite=

(free registration or try www.bugmenot.com)

BOSTON (MarketWatch) -- If a much-feared crash in U.S. housing prices does indeed come to pass, many homeowners are likely to discover that more than just their house could be vulnerable to losses.

Of course, the stock-market value of home builders would likely bear the brunt of the damage. But that would only be the beginning.

Analysts say the impact of a sharp downturn could also be profound in industries ranging from mortgage lenders, home-improvement retailers and construction-materials companies to a host of other businesses that became high-flyers during the remarkable real-estate bonanza of the past five years.

"It's hard to think of anything more potentially damaging to the U.S. economy than a downturn in the housing markets," said William Seidman, former chairman of the Federal Deposit Insurance Corp. "Since home construction is one of the main engines driving the U.S. economy, if there is a downturn it could be a real threat to the economy."

<snip>

Many of those stocks could be at perilous heights and on shaky ground should the real-estate market soften, particularly those that own big chunks of land relative to their sales. Among the top home builders in the last quarter, Pulte Homes (PHM: news, chart, profile) controlled the largest amount of land as a percentage of sales, according to Standard & Poor's.

...more...

[UpInArms]

5. BofA cuts equity weighting, ups cash

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38509.3135667708-836326814&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Banc of America lowered its recommended equity weighting to 55% from 60% citing valuation and the belief that pressure on earnings will continue through 2005. The cash weighting was increased to 30% from 25% and the balance remains in inflation protected Treasurys. While investors appear to believe the Federal Reserve will stop raising interest rates soon, BofA doesn't expect stocks to rally as a result as they did in 1995 given the current high valuations and optimism. In addition, BofA expects rates are more likely to move up from current levels.

I guess that BofA hasn't heard the *Co spiel that those Treasuries are just "worthless IOUs".

[UpInArms]

6. China will not be a scapegoat for US domestic problems

http://www.chinadaily.com.cn/english/doc/2005-06/06/content_449068.htm

China will never accept being a scapegoat for US domestic problems, the China Daily said after Washington urged Beijing to understand the pressure it is under over booming exports of Chinese textiles.

During talks in Beijing on Saturday, US Commerce Secretary Carlos Gutierrez explained that the US side was under mounting pressure at home to do something about a surge in Chinese textiles that are threatening jobs.

But in an editorial the China Daily, said this could never be a valid excuse for violating international trade agreements.

"US Secretary of Commerce Carlos Gutierrez called on the Chinese side to understand the political pressure the US government bears over the textile issue. He is honest but his point is weak," it said.

"Domestic politics is no excuse for violating international agreements. Domestic problems should be resolved domestically.

...more...

[UpInArms]

7. Snow says China ready to reform yuan

http://www.reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=8701935

MADRID (Reuters) - U.S. Treasury Secretary John Snow said in an opinion piece published on Monday he had few doubts that China was ready to reform its currency regime and warned risks of delay far outweighed concerns about immediate reform.

Writing in Spanish financial daily Cinco Dias, Snow also said the United States was not seeking a "total immediate flotation" of the yuan currency with fully liberalised capital markets, as that would be an error at the moment.

"What we demand is an immediate measure that reflects the underlying market conditions and allows a smooth transition, when timely, to a total flotation," he wrote.

He said a recent report to Congress on currency practices which said China was not now manipulating its currency for unfair trade advantage should not be read as U.S. consent for China's policy.

"The current system is a risk for China's economy, its trading partners and world economic growth." China keeps the yuan pegged at about 8.28 to the dollar, which U.S. firms complain undervalues it by up to 40 percent and allows China to flood U.S. markets with cheap goods and rack up record trade surpluses.

...more...

[Tempest]

35. Snow is dreaming

Any chances of China reforming it's monetary policy went out the window when RumsFAILed criticized their defense spending this weekend.

[UpInArms]

8. Winter (?) worries boost oil

Unseasonable concern about heating demands offset surge in crude inventories; traders eye $60 mark.

http://money.cnn.com/2005/06/06/markets/oil.reut/

LONDON (Reuters) - Oil prices breached a six-week peak Monday above $55 a barrel as early worries about thin winter supplies offset the impact of brimming crude stocks in the United States.

OPEC's president told Reuters on Monday that the cartel might increase its formal output when it meets in Vienna next week, but said raising the ceiling would not affect actual production because members are already pumping above official limits.

U.S. light sweet crude for July delivery rose 20 cents to $55.23 a barrel in premarket electronic trading, off a session peak of $55.55 and extending gains of $1.40 posted Friday.

London's Brent crude futures gained 6 cents to $54.23 a barrel.

Distillate products, including heating oil and gas oil, led the gains. U.S. heating oil gained 0.3 cent a gallon to $1.6020, after soaring as high as $1.6084. It holds a rare premium of nearly five cents to U.S. gasoline, reflecting trader concern distillate inventories are less adequate than gasoline and overall stocks.

"The first week in June is an odd time for the market to surge on heating oil concerns, but that is what happened," Washington-based PFC Energy said in a briefing note.

...more...

[UpInArms]

22. Iran Urges OPEC to Reduce Output to Quota Levels

http://www.bloomberg.com/apps/news?pid=10000085&sid=aKiYLKwQUyHQ&refer=europe

June 6 (Bloomberg) -- Iran, OPEC's second-largest oil producer, will urge other members to stop overproduction to reduce output to quota levels when the 11-nation group meets June 15 in Vienna, a senior Iranian oil official said.

Excess production by the Organization of Petroleum Exporting Countries isn't lowering prices or helping consumers because much of that crude is heavy, sour crude that refiners don't want, Iran's OPEC Governor Hossein Kazempour Ardebili said.

``More heavy and sour crude would only end up in widening the differential between sour crude and light crude, which will neither help the consumer nor the producers,'' he said in an interview by telephone from Iran today. ``What I call for is discipline among OPEC members, especially given that crude stockpiles are building heavily and oil-product prices are increasing at the same time.''

Iran's view is similar to Venezuelan calls for a possible reduction in output and is at odds with Saudi Arabia, OPEC's largest producer, which is responsible for most of the group's overproduction. Saudi oil minister Ali al-Naimi told a conference in Washington on May 17 ``we have no plans to reduce production, period.''

...more...

Doesn't Iran know that if they reduce output, they will get the WMD tag applied even sooner?

[UpInArms]

29. July crude at 6-week high to open the week

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38509.4252723611-836331901&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

DALLAS (MarketWatch) -- July-dated crude futures rose 25 cents to $55.28 a barrel Monday on the New York Mercantile Exchange amid conflicting views about output from OPEC members and continued concerns about the adequacy of heating oil supplies. July heating oil rose 1.05 cents to $1.61 a gallon after an almost 11% climb last week.

[UpInArms]

31. Airlines decline amid even higher oil prices

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38509.4310980671-836332141&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Airline stocks moved slightly lower Monday as crude oil prices extended last week's rally. The Amex Airline Index ($XAL) lost less than 1% to 51.54 points as oil topped $55.50 a barrel in overnight trading. Shares of bankrupt UAL Corp. (UALAQ) jumped 12% to $1.93 after touching a new 52-week high of $2.01 in early action. United Airlines said traffic and load factor rose in May. JetBlue shares (JBLU) rose 1% to $22.29 after the carrier said traffic in May increased by a third while load factor gained 4.8 percentage points. Delta Air Lines (DAL) and Northwest Airlines (NWAC) also logged fractional gains. AMR Corp. (AMR) , parent of American Airlines, led percentage decliners, off 1.5% at $13.73.

[UpInArms]

9. GM to face shareholder questions at annual meeting

http://www.freep.com/news/statewire/sw116746_20050605.htm

DETROIT (AP) -- In the first five months of this year, General Motors Corp. investors have seen their shares tumble to the lowest price in more than a decade. They've seen the company's U.S. market share fall from 27 percent to 25.4 percent, its bond rating reduced to "junk" status and its losses top $1 billion in the first quarter.

What they haven't seen -- or heard -- is a comprehensive plan to turn around the company's fortunes. And that's certainly what they'll hope to get Tuesday at GM's annual shareholders' meeting in Wilmington, Del.

"Shareholders are feisty, and they own the company," said David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich. "They've got some very tough questions."

The normally sleepy meeting could be heated this year, as billionaire investor Kirk Kerkorian looks to increase his stake in the world's largest automaker. Kerkorian's tender offer to purchase 28 million GM shares -- which would increase his stake from 4 percent to nearly 9 percent -- expires Tuesday.

...more...

[UpInArms]

41. GM dips ahead of annual shareholder meeting

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38509.4747535069-836333911&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- General Motors shares (GM) lost 1.1% to trade at $30.58 on Monday, one day ahead of the automaker's annual shareholder meeting in Delaware. Big Three rivals Ford Motor (F) and DaimlerChrysler (DCX) both traded flat while top Japanese manufacturers, with Honda Motor (HMC) leading the way, all logged nominal advances.

[UpInArms]

50. Investors ponder GM board's game plan

http://www.marketwatch.com/news/story.asp?guid=%7BD8B73F1E%2D190A%2D4CAE%2D8A29%2D31F0FBDC87C4%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) - With General Motors's share price struggling back from a recent 12-year low, investors are looking for signs of intervention from on high - the boardroom.

The 11-member board of directors, blamed for inaction in days gone by, has done little to prove that they are a tougher crowd than their predecessors when it comes to demanding accountability from Chief Executive Rick Wagoner and the team leading the world's biggest car company.

"This board has indicated that it's not prepared to pressure Wagoner into doing the right things," said Peter Morici, a business professor at the University of Maryland.

<snip>

GM's dilemma is reminiscent of the early 1990s, when a recession sent the company to the brink of bankruptcy. From June 1990 to September 1991, GM recorded five consecutive quarterly losses, totaling $5.8 billion.

<snip>

Armando Codina, a Florida real-estate tycoon with strong business ties to the family of President George W. Bush, could emerge as a key player if the board makes any significant changes. Triggering an upheaval at the top would be nothing new for Codina, who, as a director at AMR Corp. (AMR: news, chart, profile) , played a role in ousting CEO Don Carty.

...more...

[UpInArms]

10. Weak hedge fund returns won't dry up inflows

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8704126§ion=investing

LONDON, June 6 (Reuters) - Institutional investors such as pension funds are likely to keep investing in hedge funds even after recent poor returns because they offer diversification and often deliver better risk-adjusted returns, analysts say.

But investors are likely to switch to strategies that focus on price inefficiencies between securities -- known as relative value -- and away from loss-making strategies in convertible bond and other credit markets.

Analysts say hedge fund returns in April -- around minus one percent -- were probably the lowest since the emerging market crisis and subsequent liquidity crunch caused the collapse of U.S.-based Long Term Capital Management in August 1998.

Returns in May could be worse than in April, possibly by up to 20 percent for some hedge funds who were caught in the turbulence of corporate debt markets after credit downgrades of General Motors Corp. (GM.N: Quote, Profile, Research) and Ford Motor Co. (F.N: Quote, Profile, Research) .

"It's likely you will see a slowdown in money coming in this quarter, but I don't think there will be net outflows," Derek Doupe, executive director, fund of hedge funds at Schroders said.

...more...

Gack! Do you want your pension to be dependent upon "hedge funds"?????

[UpInArms]

11. Wall St Week Ahead: Stocks to heed Greenspan, greenback

http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=8698260§ion=investing

NEW YORK, June 5 (Reuters) - Federal Reserve Chairman Alan Greenspan's view of the U.S. economy and the dollar's response to the latest trade deficit data will set the tone for the U.S. stock market this week.

Most of the drama will come toward the end of the week, with the Fed chairman set to testify on Thursday about the outlook for the economy before the Joint Economic Committee, a congressional panel of U.S. senators and representatives.

On Friday, the U.S. international trade deficit figures for April will be released by the Commerce Department. The forecast calls for the trade deficit to swell in April after contracting in March. The dollar's reaction will be watched closely for any signs of weakness.

Oil inventory data will grab Wall Street's attention on Wednesday following last week's jump in U.S. crude futures prices above $55 a barrel. And a mid-quarter update from Intel Corp. (INTC.O: Quote, Profile, Research) , the world's dominant computer-chip maker, will get scrutiny after Thursday's closing bell.

...more...

[UpInArms]

12. Treasury prices lower ahead of Greenspan

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38509.3700893056-836329243&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Treasury prices fell, pushing up yields, early Monday, ahead of a scheduled appearance by Federal Reserve Alan Greenspan at a monetary conference in Beijing. There are no scheduled economic reports Monday. On Friday the Treasury market had a hectic session, during which prices first rose on news of unexpectedly weak jobs creation last month, but later fell on hawkish rhetoric from a Fed official. The yield on the 10-year Treasury was 3.967%, up from 3.803% late Friday.

[UpInArms]

27. Fed adds reserves through overnight system RPs

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8706198§ion=investing

NEW YORK, June 6 (Reuters) - The Federal Reserve said on Monday it added temporary reserves to the banking system through overnight system repurchases.

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

Printing Press speed set to "high" :eyes:

[UpInArms]

46. US Treasury to sell $22.0 bln in 5-yr, 10-yr notes

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8707329§ion=investing

WASHINGTON, June 6 (Reuters) - The U.S. Treasury Department said on Monday it will sell $14.00 billion of five-year notes on Wednesday, June 8 and $8 billion of reopened 10-year notes on Thursday June 9.

The five-year notes will be issued June 15 and will mature on June 15, 2010. The 10-year notes will be issued on June 15 and will mature on May 15, 2015.

Treasury said $4.90 billion of the 10-year notes can be excluded when bidders calculate their net long positions. The net long reporting threshold for the five-year notes is $4.90 billion and for the 10-year notes it is $2.80 billion.

...more...



The estimated population of the United States is 296,258,913
so each citizen's share of this debt is $26,312.30.

The National Debt has continued to increase an average of
$1.67 billion per day since September 30, 2004

[UpInArms]

47. US Treasury to sell $13 bln 4-week bills Tuesday

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8707146§ion=investing

WASHINGTON, June 6 (Reuters) - The U.S. Treasury Department said on Monday it will sell $13.00 billion of four-week bills on Tuesday, June 7.

The bills will be issued on June 9.

Proceeds from the sale will be used to refund about $8 billion of publicly held four-week securities maturing on June 9 and to raise new cash of $5 billion.

The four-week bills announced on Monday mature July 7.

Treasury said $12.00 billion of bills can be excluded when bidders calculate their net long positions. The net long position reporting threshold is $4.55 billion.

...more...



The estimated population of the United States is 296,258,913
so each citizen's share of this debt is $26,312.30.

The National Debt has continued to increase an average of
$1.67 billion per day since September 30, 2004

[UpInArms]

13. Cox To Make A Biz-Friendly SEC

http://www.forbes.com/home/business/2005/06/06/cz_0606oxan_cox.html

President George W. Bush yesterday nominated Republican Congressman Christopher Cox to replace U.S. Securities and Exchange Commission Chairman William Donaldson who resigned on Wednesday. Cox faces the difficult task of forging a regulatory consensus that relaxes perceived SEC "overreach" without sacrificing agency credibility.

President Bush nominated Donaldson as SEC chair in December 2002. Donaldson's tenure has been contentious, as the SEC worked to restore faith in the integrity of corporate practices and earnings results after the bankruptcies of Enron and Worldcom, and to offset the regulatory missteps of his predecessor, Harvey Pitt.

The SEC's five commissioners have been deeply divided on the general direction of appropriate policy. By law, no more than three commissioners can be from one political party. Many key decisions were taken by a 3-2 vote, with Donaldson (a Republican commissioner) voting with the two Democratic commissioners.

Under Donaldson's chairmanship, most of the nearly two dozen rule-making procedures necessary to implement the wide-ranging 2002 Sarbanes-Oxley Act were completed on schedule. However, he has faced heavy business criticism for increasing regulations perceived as an overreaction to "yesterday's" problems. By contrast, other critics assert that the SEC has been too lax in responding to new challenges.

...more...

[UpInArms]

14. (Brystol-Myers) $300M deal may end Justice probe (cooked accounting)

http://news.cincypost.com/apps/pbcs.dll/article?AID=/20050606/BIZ/506060344/1001

NEW YORK - Pharmaceutical company Bristol-Myers Squibb Co. is expected to settle a federal probe of its past accounting practices for $300 million, according to published reports. An announcement of the agreement could come this week, the reports said.

As part of the so-called "deferred prosecution" agreement with the Justice Department, the company would be able to avoid criminal charges if it complies with certain terms, the New York Times and the Wall Street Journal both reported Sunday night on their Web sites, citing unnamed sources familiar with the settlement talks. Among them is separating the jobs of chairman and chief executive.

No current Bristol-Myers Squibb executives are expected to be indicted, thought it's possible former executives may be, according to the Journal.

...very short newsblurb...

[loudsue]

16. Happy (?) Monday, Marketeers!

:donut: Let's hope there's some good news today for the underdogs in the market! :applause: We NEED some good news!

I'll be on the phone and e-mailing all day to find work, but I'll be checking in on the market watch thread.

:cry: I wanna work!! And I can't find any!! :cry:

Thanks for keeping us up on the latest $$ news! :hi:

:kick::kick::kick:

[UpInArms]

17. G'Morning loudsue!

:hi:

Good luck with your job hunting! :thumbsup:

My weekend out in the real-life stream of things was relatively discouraging. People did not seem upbeat or happy. Stress was apparent on many faces - lots of anecdotal tales of economic woes among many groups of people (artists, clients, strangers all seemed to have their own fears and insecurities).

I am hoping that we can all weather this *Co economic storm that hovers on the horizon, creeping ever closer from the fringes to the mainstream.

[loudsue]

51. What you saw out there, is happening here, too.

Thanks, UIA, for wishing me luck...I sure do need it! Skills and experience don't count for much these days -- it's just who you know that hasn't already hired their brother-in-law for the job. So, from where I sit, it looks like "luck" is about all that's going to get me a job!

Seems like people are really defensive and on edge, doesn't it? I asked someone about work (networking in my field), and they acted like I was going to try to get their job, or something...like it was a threat that I was asking about work.

Thanks, republicans! :patriot: Can't wait til you guys steal the next election, too!

Let's see what happens in the casino today!

:kick::kick::kick:

[ozymandius]

39. Thanks loudsue!

And good luck with your search. It wasn't too long ago that I was in your situation. Have faith in your talents!

Ozy :hi:

[loudsue]

52. I remember it well, Ozy. I'm REALLY glad you're employed now.

It's weird, isn't it? Wondering if you'll EVER find work in your field again? Or, if you do, that it will actually PAY something?

This country is in a huge mess right now. I know as a fact that there are lots and lots of people out there, particularly in our generation (baby boomers), who are not counted under the "unemployment numbers", because we're either independent contractors, or we've run out of unemployment benefits a long time ago. I wonder how many of us are either unemployed or severely under-employed at this point. Of course, the republicans will NEVER let that figure get out.

I know a woman who works at the unemployment office of the county adjacent to mine in North Carolina. She says that, counting all the people she's aware of that have lost benefits and are still looking, that the unemployment rate in her county would actually be closer to 15 or 16%.

That is America under republicans. :patriot: Next thing they'll do, they'll PRIVATIZE the unemployment office! That way, some CEO can make $12 Million per year, plus options, and a contract with sweet clauses that pay him extra when he bankrupts the company and leaves. In the meantime, he's cut unemployment benefits to where it costs more to get to the unemployment office once a week for a check than a person is getting in their unemployment check! After all, it's the republican way!

Thanks for the support, Ozy. I'll keep trying 'til I find something. The last independent contract I got lasted all of 6 weeks, and then the client's buddy got laid off....so the client laid me off, and brought in his buddy. That hurt.

The project manager was really upset, because he knew that I knew the work and had done a good job up 'til that point. He offered to write me letters, etc., which was really good of him to do. But I was still out of a job.

Up until then, the last project I had was in September -- 3 weeks worth of work. All hail the republican party, ey?

:kick::kick::kick:

[AnneD]

57. Amen

You are so right in your observations Loudsue. We were hit hard here in Houston in the late 80's when oil hit $10 a barrel and under. Our real estate market crapped out and the unemployed couldn't sell their homes due in part to lack of secure jobs and high interest so we had foreclosure. The foreclosures screwed the savings and loans (remember that). Many of us Boomers went through that cycle. That is when I learned the fallacy of the unemployment numbers. I was one of those that was unemployed so long I was dropped from the rolls. I think our offical unemployment went up to 8+ percent but it was much higher than that on the streets. I know now that our unemployment is bad now because I volunteer at the church food pantry and we have new people and more families than ever show up on Thursdays. My heart goes out to you Loud Sue.

[ozymandius]

62. Thanks. I remember how it was under Papa Bush. Junior's the same.

Odd that - my most comfortable years were under Clinton. Under the first Bush administration, money was never not tight. Good jobs were elusive. Gas was high. At least housing was affordable.

The Clinton years brought me outof debt. New opportunities opened up for me in my full time gig (broadcasting) as well as freelance work. I went into business for myself. And did pretty well for about six months. Then Bush came to town.

The stock market tanked. 9/11 happened. Stocks tanked some more. Work dried up. It was a hand-to-mouth for over three years until my only choice was to shutter my business. I tried to go back into broadcasting but the climate is the same as it was in 1990-92. It felt as though the recession took an eight year break.

Luck prevailed for me to find the job I have now.

[AnneD]

66. Ozy

I think Jr is worse and that we will not recover as Jr has rigged the system to a greater degree than Dad ever could.

[loudsue]

78. Guess what! I just got a 1-2 week contract for work!!!!

:woohoo: You guys have magical "luck" wishes! :applause:

I was networking around, and called an old friend who I thought had left the industry, and he has one to two weeks worth of work that I can do! It's not much, but I jumped on it!

I've got to fly out in the morning, so I'm going to go pack! :bounce:

Thanks, Ozy, UIA, AnneD, for the support!

Oh, happy day!

:kick::kick::kick:

[UpInArms]

80. Hurrah! Hurrah! Hurrah!

I am so happy for you loudsue!

:yourock:

Lots of good wishes to pack in your bags!

Let us know when you get back

:pals:

[loudsue]

81. Thanks, UIA!! I'll sure let you know!

A sigh of relief ....sure feels good!!

:kick:

[UpInArms]

18. pre-opening blather

briefing.com

9:00AM: S&P futures vs fair value: -0.2. Nasdaq futures vs fair value: +2.0. Still shaping up to be a mixed start for the cash market, as futures indications continue to trade near fair value... Technology, however, could get a boost following reports that Apple Computer (AAPL) will begin using Intel (INTC) chips next year and news that Agilent (A) may sell its underperforming semiconductor products division

8:30AM: S&P futures vs fair value: -0.3. Nasdaq futures vs fair value: +2.5. Futures trade pull back slightly, now suggesting a mixed open for the indices... While a fresh round of M&A activity has somewhat improved sentiment following Friday's sell-off, oil prices at six-week highs and the absence of notable economic data this morning to set a more distinctive tone for the market could be leaving investors with mixed indications about economic growth

8:00AM: S&P futures vs fair value: +1.1. Nasdaq futures vs fair value: +4.5. Futures market versus fair value suggesting a slightly higher open for the cash market as new M&A activity provides a floor of early buying support for stocks... Washington Mutual (WM) has agreed to acquire Providian Financial (PVN) for $6.45 bln, ProLogis (PLD) plans to buy Catellus Development (CDX) for $3.6 bln and E*Trade (ET) has raised its bid for Ameritrade (AMTD)

ino.com

The June NASDAQ 100 was steady overnight as it consolidates some of last Friday's key reversal down but remains below the 10-day moving average crossing at 1551.25. Stochastics and the RSI are overbought but are neutral to bearish signaling that a short-term top is in or is near. Closes below last 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 then the 75% retracement level of this year's decline crossing at 1588.36 are the next upside targets. The June NASDAQ 100 was steady at 1550.50 as of 5:54 AM ET. Overnight action sets the stage for a steady opening by the NASDAQ composite index later this morning.

The June S&P 500 index was slightly lower overnight as it extends last Friday's decline but remains above the 62% retracement level of this year's decline crossing at 1196.55. Stochastics and the RSI are overbought and are neutral hinting that a short-term top might be in or is near. Closes below last Tuesday's low crossing at 1191.70 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 down 0.30 pts. at 1198.20 as of 5:56 AM ET. Overnight action sets the stage for a steady to lower opening when the day session begins later this morning.

[UpInArms]

19. Brown Shoe to close 80 stores in brand restructuring

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38509.3890529282-836330296&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Brown Shoe Co. (BWS) said it would close 80 stores -- 60 in the U.S. and 20 in Canada -- as part of a restructuring of its Naturalizer brand. The company said it would also open 30 outlet stores over the next 2 to 3 years, and consolidate its buying, merchandise planning and allocation functions into its St. Louis headquarters. The company expects the moves to cost $14 million to $17 million, or 45 to 55 cents a share, which will be recognized over the rest of 2005. The company projects annual savings of $5 million, or 15 cents a share. As a result, the company lowered its 2005 earnings forecast, including restructuring costs, to $1.75 to $2.00 a share from $2.30 to $2.45. For the second quarter, the company expects earnings including charges of 11 to 18 cents a share. The stock closed Friday down 47 cents at $35.63.

[ozymandius]

38. Just being obnoxious --

They might start by changing their name.

Brown Show Co. = Dullsville Co.

[UpInArms]

40. they could do an entirely new marketing strategy

if they became "The Blue Suede Shoes" :evilgrin:

[AnneD]

58. nothing worse...

than being caught flat when it comes to marketing. It really clogs up the manufacturing process. So I guess more employees will get the boot. Of course all those well heeled exec will tout the layoffs as a patent way to pump up profits.

[UpInArms]

59. she said, as her arches raised.

:rofl:

[AnneD]

64. look for

the spike in unemployment. But who needs thes platforms, it is just a way to creat a wedge among employees. Those in uppermanagement are such sneakers. The CEO's view their employees as mules, and they are the saddles.

[UpInArms]

65. and they just go clog things up

with their clodhoppers and unshod hooves.

[ozymandius]

70. They're nothin' but a bunch of heels. n/t

[MARALE]

76. Maybe now they will get some sole....

I had to join in.

[UpInArms]

77. maybe they just need some polish

You all are so punny! :ouch!:

[UpInArms]

20. 9:36 EST markets are open (and upbeat)

Dow 10,471.39 +10.42 (+0.10%)
Nasdaq 2,074.47 +3.04 (+0.15%)
S&P 500 1,196.70 +0.68 (+0.06%)
10-Yr Bond 3.969 -0.10 (-0.25%)

NYSE Volume 43,374,000
Nasdaq Volume 69,946,000

[Roland99]

21. Bad jobs report? Oil rising again? BUY! BUY! BUY!

[UpInArms]

23. up is down, black is white, war is peace

[Roland99]

24. Debt is good, saving is bad, All Hail Consumerism!

[AnneD]

67. Great

now I have the Jefferson Airplane Go ask Alice stuck in my head. One pill make you bigger and one makes you small....

[UpInArms]

25. 9:54 EST numbers (in reverse) and blather

Dow 10,456.17 -4.80 (-0.05%)
Nasdaq 2,070.81 -0.62 (-0.03%)
S&P 500 1,195.31 -0.71 (-0.06%)
10-Yr Bond 3.964 -0.15 (-0.38%)

NYSE Volume 138,038,000
Nasdaq Volume 193,599,000

9:40AM: Market opens slightly higher, as a fresh batch of M&A deals totaling more than $10.0 bln improves sentiment following Friday's widespread selling efforts and provides a floor of modest buying support in the early going... This morning's largest announcement is a proposed deal between two S&P constituents - Washington Mutual (WM 40.89 -0.68) and Providian Financial (PVN 17.99 +0.03) - whereby WM plans to acquire PVN for $6.45 bln in cash and stock...

9:15AM: S&P futures vs fair value: +0.2. Nasdaq futures vs fair value: +2.0.

[UpInArms]

26. Wife of ex-Enron exec released from prison

http://abclocal.go.com/ktrk/news/060605_local_fastow.html

6/06/05 - HOUSTON) — Lea Fastow, wife of former Enron Corp. finance chief Andrew Fastow, left federal prison early Monday morning en route to a halfway house to serve the rest of her sentence, according to news reports.

Mrs. Fastow, who was serving a yearlong sentence for lying about income from an Enron deal on her tax return, was taken to a downtown Houston facility where she will be held until July 10, Houston television station KTRK and the Houston Chronicle Web site reported.

Her soon-to-be-incarcerated husband, a key figure in the Enron scandal, was at her side, the newspaper said.

<snip>

Andrew Fastow has pleaded guilty to conspiracy in the energy company's collapse in exchange for a 10-year prison term that was to be served after his wife's release. He also has agreed to help the prosecution in pending cases against Enron founder Kenneth Lay and former CEO Jeffrey Skilling.

Mrs. Fastow pleaded guilty in May 2004 to helping her husband hide ill-gotten income from financial schemes that fueled Enron's December 2001 crash.

...more...

[AnneD]

69. she was released...

to a half way house I heard. Wonder if she will have a register as a tax offender. I know many that would protest her in their neighborhood.

[UpInArms]

28. Fannie Mae to sell $6.5 billion bills Wednesday

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8706366§ion=investing

NEW YORK, June 6 (Reuters) - Fannie Mae (FNM.N: Quote, Profile, Research) , the largest U.S. home funding company, on Monday said it plans to sell $5.0 billion of three-month benchmark bills due Sept. 7, 2005, and $1.5 billion of six-month bills due Dec. 7, 2005, on Wednesday in a Dutch auction.

In a Dutch auction, or uniform price auction, successful bidders pay only the price of the lowest accepted bid rather than the actual price as in a conventional multiple-price auction.

Bids will be accepted from all authorized dealers for the bills starting at 9:00 a.m. EDT (1300 GMT) and closing at 10:00 a.m. EDT (1400 GMT).

...a bit more...

[UpInArms]

32. 10:43 EST numbers and blather

Dow 10,460.53 -0.44 (-0.00%)
Nasdaq 2,071.14 -0.29 (-0.01%)
S&P 500 1,195.08 -0.94 (-0.08%)
10-Yr Bond 3.962 -0.17 (-0.43%)

NYSE Volume 345,476,000
Nasdaq Volume 419,506,000

10:30AM: More of the same for stocks as a lack of notable economic and earnings data leave investors with little incentive to more aggressively jump back into the market following Friday's broad-based weakness... Thursday's initial claims data could set a more definitive tone to trading in Treasurys while stocks, especially technology, could struggle to find much direction until Intel's mid-quarter update after the bell that same day... NYSE Adv/Dec 1290/1517, Nasdaq Adv/Dec 1272/1336

10:00AM: Major indices now trade in split fashion as the bulk of sector leadership remains mixed... Energy has paced the way higher, as oil prices hover above $55/bbl, while continued pressure on the dollar has also made the Materials sector more attractive... Solid gains in Drug and Biotech have helped the Health Care sector catch an early bid while gains in retail have provided a slight boost to Consumer Discretionary... Financial, however, has been an influential leader to the downside while follow-through selling interest in chip stocks and hardware continues to weigh on Technology...NYSE Adv/Dec 1401/1157, Nasdaq Adv/Dec 1234/1150

[studiovoltaire_us]

33. naked option writing

Not that anyone who is not an initiate (or, perhaps, an idiot) should consider naked option writing, but:

with this flat iron non-building market going on the way it has, has anybody out there been using that dicey strategy.

NOTA BENE: stock and index options are not for everyone, and writing uncovered options against, say, a T-bill or two for collateral, is sometimes very good thinking, unless something goes wrong (read: volatility when you wanted deadness); so N.O.W. is for almost nobody. Unless you hit a dull lull that stays that way. Do not, however, speculate with the rent. You could lose well more than your collateral.

[UpInArms]

34. Welcome to DU studiovoltaire_us!

We, here at the SMW, make no recommendations as to trading - we merely document the activities that occur withing the trading and fiscal policy community.

Glad to have you here and all observations are welcome :hi:

[UpInArms]

36. info on Hedge Funds in May

Dow Jones hedge indexes rise in May
Convertible arbitrage is only strategy that lost money

http://www.marketwatch.com/news/story.asp?guid=%7B7C5D8744%2DD000%2D41C7%2D8CD6%2DBCABE1779499%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) - Most managers tracked by the Dow Jones Hedge Fund indexes made money in May, helped by a rebounding stock market and rising bond prices.

Merger arbitrage, equity long/short (U.S.) and event-driven hedge funds gained 1.06%, 0.93% and 0.53%, respectively, Dow Jones said Monday.

Equity market-neutral and distressed securities managers climbed 0.40% and 0.21%, respectively.

Performance was helped by rising stock and bond markets in May. The Dow Jones Corporate Bond Index was up 1.66% for the month, while the Dow Jones World Total Market Index gained 2.06%.

Convertible arbitrage funds lost 2.5% in May, leaving them down 9.18% this year, Dow Jones said.

...very short blurb...

[ozymandius]

37. 11:11 numbers and blather

Dow 10,440.28 -20.69 (-0.20%)
Nasdaq 2,067.11 -4.32 (-0.21%)
S&P 500 1,193.10 -2.92 (-0.24%)
10-Yr Bond 39.96 +0.17 (+0.43%)

NYSE Volume 457,152,000
Nasdaq Volume 537,317,000

11:00AM: Indices slip to session lows even as oil prices ($54.75/bbl -$0.28) fall more than 1.0% over the last 30 minutes... With oil prices having rebounded roughly 20% since hitting a 14-week low of $46.20/bbl (May 20), it appears some profit-taking has taken some steam out of the commodity' recent recovery efforts... However, investors have so far failed to take advantage as the Energy sector, which has provided some leadership with regards to strong earnings growth, has turned negative... Further deterioration in the influential Financial sector has also contributed to recent weakness...NYSE Adv/Dec 1389/1512, Nasdaq Adv/Dec 1259/1438

[ozymandius]

43. 11:43

Dow 10,446.49 -14.48 (-0.14%)
Nasdaq 2,068.25 -3.18 (-0.15%)
S&P 500 1,193.79 -2.23 (-0.19%)
10-Yr Bond 39.76 -0.03 (-0.08%)
NYSE Volume 562,800,000
Nasdaq Volume 638,568,000

11:30AM: Major averages back off their worst levels but market internals still suggest a slightly bearish bias... Decliners on the NYSE hold a 16 to 13 advantage over advancers while declining issues on the Nasdaq hold a 15 to 12 edge over advancing issues... The ratio of down to up volume, however, reflects a slightly more negative tone to trading at both the Big Board and the Composite... Meanwhile the Dow, S&P and Nasdaq have all recently found modest support near key technical levels of 10448, 1194 and 2065, respectively...NYSE Adv/Dec 1347/1651, Nasdaq Adv/Dec 1215/1546

[UpInArms]

42. S&P 500 company buybacks rise 91% in 1Q -- S&P

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38509.4814546991-836334270&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Standard & Poor's said Monday that S&P 500 company buybacks rose 91% during the first quarter of 2005, to $82 billion from $43 billion in the same quarter a year earlier. "Standard & Poor's is seeing an increase in companies actually reducing their share count, which directly benefits existing shareholders," S&P equity market analyst Howard Silverblatt said. "In addition, many companies are actively trying to reduce their share count to assist in boosting earnings per share, as growth and comparisons become more difficult." The agency said it expects 2005 buybacks to significantly outpace 2004 and to easily outpace actual 2005 dividend payments.

I guess if no one else steps up to buy a company's stock, here's how to fill that void and keep those prices up!

[UpInArms]

44. Layoffs Ahead at Hewlett-Packard

http://cbs5.com/topstories/local_story_157095111.html

New Hewlett-Packard CEO Mark Hurd is expected to initiate major layoffs, several analysts are reporting.

<snip>

The Palo Alto-based company has not made any formal announcements but Hurd has indicated that HP will incur a $100 million charge this quarter related to workforce reductions.

Several analysts said they expect HP to eliminate 7,500 to 15,000 positions from its global workforce of 151,000 employees.

...more at link...

[cthrumatrix]

61. economic expansion is kicking in ..... just ask CNBC

[UpInArms]

45. General Re exec pleads guilty (to conspiracy) in AIG -transaction - WSJ

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&dateid=38509.4908779167-836334631&

SAN FRANCISCO (MarketWatch) -- An executive at Berkshire Hathaway Inc.'s (BRK.B) (BRK.A) General Re unit has pleaded guilty to a charge of criminal conspiracy in relation to the company's transaction with American International Group Inc. (AIG) , the Wall Street Journal reported on its Web site Monday, citing two unnamed people familiar with the matter. John Houldsworth, who headed up General Re's reinsurance unit in Dublin, reportedly faces up to five years in prison for his role in a 2001 transaction between insurance giant AIG and General Re. He has pleaded guilty to helping AIG mislead shareholders and auditors with the transaction, according to the Journal, which improperly boosted AIG's reserves by $500 million. Houldsworth will cooperate with the Justice Department and the Securities and Exchange Commission in their investigation into nontraditional insurance products, the Journal reported. The Justice Department will file a criminal complaint in the Eastern District of Virginia and the SEC will file a civil complaint in the Southern District of Manhattan later today, the Journal reported, citing an unnamed familiar with the matter.

Isn't that sweet? :sarcasm:

Yet another company conspiring to defraud the public :argh:

Doesn't it just give you the warm fuzzies about investing your retirement funds in these "ethical" corporations? :sarcasm:

:banghead:

[UpInArms]

48. Chicago Fed conference sees US 2005 GDP at 3.2 pct

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8707731§ion=investing

CHICAGO, June 6 (Reuters) - U.S. economic growth is expected to be moderate in 2005 and 2006, capped by higher interest rates, according to participants at a Federal Reserve Bank of Chicago conference whose forecasts were released on Monday.

Real gross domestic product growth was forecast at 3.2 percent in 2005, down from 4.4 percent in 2004, and at 3.3 percent for 2006.

"Growth was forecast to be solid but not spectacular. They are saying interest rates will rise further and energy prices will not recede," William Strauss, senior economic at the Chicago Fed, told Reuters on Monday.

<snip>

The average price of crude oil for 2005 was forecast in the survey at $41.57 per barrel, rising to $43.24 in 2006.

...more...

:rofl:

Get ready for those "surprised economists" just around the corner, in the next quarter, any day now!

[UpInArms]

49. 12:08 EST numbers and blather

Dow 10,456.17 -4.80 (-0.05%)
Nasdaq 2,069.70 -1.73 (-0.08%)
S&P 500 1,194.76 -1.26 (-0.11%)
10-Yr Bond 3.984 +0.05 (+0.13%)

NYSE Volume 635,555,000
Nasdaq Volume 706,961,000

12:00PM: Stocks still struggle to find much traction midday, as looming economic concerns outweigh a fresh batch of M&A news... While M&A deals totaling more than $10.0 bln suggest companies remain flush with cash and are more confident about the economy, the absence of notable economic data to set a more definitive tone to trading has countered such optimism, preventing buyers from offsetting modest follow-through selling interest that has kept nine out of ten economic sectors in negative territory...

This morning's two largest deals include Washington Mutual's (WM 40.60 -0.97) proposed $6.45 bln bid for Providian Financial (PVN 17.69 -0.27) and ProLogis' (PLD 40.19 -1.18) $3.6 bln offer for Catellus Development (CDX 33.05 +3.81)... Meanwhile, Technology has paced the way lower, dragged lower in large part to weakness in shares of Intel (INTC 27.02 -0.31), IBM (IBM 75.12 -0.67) and Apple Computer (AAPL 37.70 -0.54)... It has been reported that Apple will begin using Intel's chips in its Macintosh computer line, possibly ending a decade-long partnership with IBM...

Financial has also been an influential leader to the downside, as modest gains in Brokerage - amid reports that E*Trade (ET 12.46 +0.06) has raised its bid for Ameritrade (AMTD 15.02 +0.12) - have been unable to offset losses in Banks and Insurance... Health Care, due in part to a pullback in Biotech, and Energy, amid a reversal in crude oil prices ($54.55/bbl -$0.48), have also traded lower... The Materials sector, due largely to dollar weakness, has eked out a modest gain, while Airline, Drug and Retail have been a few notable groups posting modest gains...

[RawMaterials]

53. 1:45 Market Update and Blather

Dow 10457.35 -3.62 (-0.03%)
Nasdaq 2073.52 +2.09 (+0.10%)
S&P 500 1195.43 -0.59 (-0.05%)
10-Yr Bond 3.976% -0.03

NYSE Volume 876,782,000
Nasdaq Volume 928,774,000



1:30PM: Range-bound trading persists, as investors find few catalysts to push the indices in either direction... Partially contributing to the subdued action in stocks today has been quiet trade in Treasurys, which dictated much of last week's action and was most evident in last Friday's 18 basis point reversal in the 10-year note, which lifted yields on the benchmark note from around 3.80% to as high as 3.98%... NYSE Adv/Dec 1607/1549, Nasdaq Adv/Dec 1380/1529

1:00PM: Little changed since the last update as the major averages continue to vacillate below the flat line... Catching a bid, however, has been Retail... Leading the charge has been a 3.5% surge in shares of Albertson's (ABS 21.59 +0.73) while CVS Corp (CVS 58.10 +0.83), which was upgraded to Hold from Sell at A.G. Edwards, has also contributed to the Retail index's (RLX +0.7%) solid advance... Other notable retailers making large moves to the upside include ODP (+3.1%), JWN (+2.0%), CC (+1.6%), JCP (+1.6%) and BBY (+1.4%)...NYSE Adv/Dec 1596/1529, Nasdaq Adv/Dec 1378/1503

[ozymandius]

55. 2:33 info

Dow 10,469.04 +8.07 (+0.08%)
Nasdaq 2,076.56 +5.13 (+0.25%)
S&P 500 1,196.97 +0.95 (+0.08%)
10-Yr Bond 39.68 -0.11 (-0.28%)

NYSE Volume 1,027,869,000
Nasdaq Volume 1,096,430,000


2:00PM: Buyers show some resolve as the market inches back into positive territory... Making the most notable turnaround has been the Nasdaq, amid confirmation that Apple Computer (AAPL 38.44 +0.20) will sever its long-term relationship with IBM (IBM 75.22 -0.57) and begin using Intel's (INTC 27.18 -0.15) microprocessors in its Macintosh computer line... Shares of Apple have pared as much as a 1.8% decline, clawing back above the flat line, while Intel and IBM also trade at improved levels... NYSE Adv/Dec 1633/1538, Nasdaq Adv/Dec 1426/1473

[UpInArms]

68. 3:39 EST numbers and blather (everybody's happy!)

Dow 10,477.38 +16.41 (+0.16%)
Nasdaq 2,076.81 +5.38 (+0.26%)
S&P 500 1,198.56 +2.54 (+0.21%)
10-Yr Bond 3.962 -0.17 (-0.43%)

NYSE Volume 1,285,860,000
Nasdaq Volume 1,336,430,000

3:30PM: Market still confined to a tight trading range, as the major indices hold their own around the unchanged mark going into the close... While a lack of economic data has provided little motivation for investors, so too has a dearth of earnings reports limited overall market participation... While it is currently a bit early for earnings warnings, with about one month left until Q2 comes to a close, such potentially market-moving guidance is likely to pick up in the final two weeks of the quarter... ..NYSE Adv/Dec 1808/1459. ..NASDAQ Adv/Dec 1560/1427.

3:00PM: Stocks show little vigor, having moved little in the past hour, but the indices continue to trade near their best levels... Meanwhile, the benchmark 10-year note (+4/32) continues to trade near session highs, pushing yields to 3.95%, but the rebound has been modest at best in light volume trade and had little impact on equities... NYSE Adv/Dec 1869/1373, Nasdaq Adv/Dec 1595/1369

2:30PM: Stocks continue to trade at improved levels and market internals now suggest a more postitive tone to trading, but the recent recovery effort seems to have stalled... Also, with volume running well below recent sessions and below average at both the NYSE and the Nasdaq, as the latter has just surpassed 1.0 bln shares, there has been little conviction behind recent moves to the upside... NYSE Adv/Dec 1858/1360, Nasdaq Adv/Dec 1625/1302

[UpInArms]

71. "Chopper" Ben nomination vote on Thursday

4:29pm 06/06/05 SENATE PANEL TO VOTE ON BERNANKE NOMINATION THURSDAY

[UpInArms]

72. After the Bell: Bob Evans Farms 4Q earns drops 71%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38509.6881232986-836341637&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Bob Evans Farms Inc. (BOBE) after Monday's closing bell reported fiscal fourth-quarter earnings of $5.5 million, or 16 cents a share, down 71.4% from $19.3 million, or 54 cents a share, a year ago. Revenue was $382.6 million, down from $313.9 million a year ago. Same-store sales for the quarter fell 3.4% from the year-ago period. The Columbus, Ohio-based restaurant chain operator said it will temporarily halt its practice of providing specific earnings-per-share forecasts, adding that it expects earnings to be "down significantly" in the first quarter.

something's a bit screwy with those numbers :crazy:

[ozymandius]

75. screwy is right

Probably overextending themselves with too much pork barrel spending. :eyes:

[UpInArms]

73. U.S. money market funds struggle to draw investors

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8709459

NEW YORK, June 6 (Reuters) - U.S. money market funds are struggling to attract investor dollars despite rising yields, in part because of investors' high-risk appetite for long-dated bonds, analysts and fund managers said on Monday.

Investors, who are confident in the Federal Reserve's inflation fighting ability, have taken huge bets on long-term bonds via "curve flattener" trades with money that would have otherwise gone into money market funds, one analyst said.

"There's less risk aversion. People are stretching out the curve," Richard Gordon, fixed-income market strategist at Wachovia Securities, said on Monday.

Last week, taxable money market funds lost $14 billion in assets, while tax-free funds saw $2 billion in outflow, although their average yields hit their highest levels since October 2001, according to iMoneyNet, a financial data firm based in Westborough, Massachusetts .

"The yields are not there," Gordon said. "They're probably not going to outperform 10-year Treasuries."

...more...

[ozymandius]

74. at the close

Dow 10,467.03 +6.06 (+0.06%)
Nasdaq 2,075.76 +4.33 (+0.21%)
S&P 500 1,197.51 +1.49 (+0.12%)
10-Yr Bond 39.62 -0.17 (-0.43%)
NYSE Volume 1,504,512,000
Nasdaq Volume 1,513,111,000

Close: The major averages closed slightly higher, finding just enough motivation behind $10.0 bln in new M&A deals to offset underlying economic uncertainty... However, below average volume at both the NYSE and the Nasdaq, coupled with a lack of notable economic and earnings data, provided little conviction behind the day's modest advance that closed eight out of ten economic sectors in positive territory...

Also limiting market gains was some nervousness ahead of Fed Chairman Greenspan's comments via satellite to a Chinese banking group tonight (21:00 ET) and his testimony Thursday before the Joint Economic committee... With regard to M&A news, Washington Mutual (WM 40.55 -1.02) agreed to purchase Providian Financial (PVN 17.63 -0.33) for $6.45 bln in cash and stock while ProLogis (PLD 40.11 -1.26) said it will acquire Catellus Development (CDX 32.99 +3.75) for $3.6 bln... Despite a 1.0% decline in crude oil prices ($54.49 /bbl -$0.54), Energy paced the way higher...

Financial, the most influential leader to the upside, benefited primarily from strength in Brokerage, following reports that E*Trade (ET 12.63 +0.23) raised its bid for Ameritrade (AMTD 14.93 +0.03), which earlier in the day touched a new 52-week high, to $2.0 bln in cash and a 49.5% stake in the combined company... Also providing some support for the sector was a late-day rebound in Treasurys, which closed the benchmark 10-year note up 4 ticks to yield 3.95%... Health Care, which benefited from modest gains in Pharmaceutical and Drug Wholesalers, as well as Consumer Discretionary, which got a boost from strength in Retail and Homebuilding, also traded higher...

[loudsue]

79. I JUST GOT SOME WORK!!!!

I replied in Post #78 about it!

:bounce: This is a copy of that post!

You guys have magical "luck" wishes!

I was networking around, and called an old friend who I thought had left the industry, and he has one to two weeks worth of work that I can do! It's not much, but I jumped on it!

I've got to fly out in the morning, so I'm going to go pack!

Thanks, Ozy, UIA, AnneD, for the support!

Oh, happy day!

[faithnotgreed]

82. congratulations loudsue! heres to it leading to more work

[loudsue]

83. Thanks, FnG!

I need to get off DU now, and go pack! I'll check back in whenever I can!

:hi:

[faithnotgreed]

84. great plan! we look forward to it...

[ozymandius]

85. Congratulations!

:yourock: That's super loudsue! :thumbsup: Have a great trip. And have fun!

Ozy :hi: