STOCK MARKET WATCH, Tuesday 18 October

[ozymandius]

Tuesday October 18, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 96 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1762 DAYS
WHERE'S OSAMA BIN-LADEN? 1461 DAYS
DAYS SINCE ENRON COLLAPSE = 1423
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
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON October 17, 2005

Dow... 10,348.10 +60.76 (+0.59%)
Nasdaq... 2,070.30 +5.47 (+0.26%)
S&P 500... 1,190.10 +3.53 (+0.30%)
10-Yr Bond... 4.49% -0.00 (-0.04%)
Gold future... 476.60 +4.80 (+1.01%)






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 Rob Kirby

PASSING GAS, ROYALTY AND INCOME TRUSTS AND MORE

This past week, more than a few investors took a pass on gas – so to speak - selling their oil and gas investments. This is illustrated in the daily chart below which depicts trade in the S & P Energy Sector Index . It should be clear for all to see that for the past six trading sessions in particular, the energy complex has been ‘sucking wind’ rather than blowing the same:

With the energy stocks being so “hot” for much of the year to date, pullbacks are not only inevitable but they often provide the opportunity to add quality names that have inadvertently been sold off in any broad based consolidation in the context of a secular bull market like the energy complex is currently experiencing.

-cut-

What follows is the body of a piece from my Macro Economic News Letter, available through my web site. It outlines the energy complex from a macro perspective and embodies the most important investment advice I have ever received in my life from a very good friend who has traded professionally and very successfully for a living for many years. His over riding investment ‘axiom’ is this: If you’ve got a clear and accurate view of the BIG PICTURE – it almost becomes a chore to lose money over the long run. He spends most of his time trying to understand the big picture – often telling me there is literally ‘mountains’ of research available on an endless list of companies in the public domain. The trick - in his words - is understanding how the pieces best fit together.

I’ll have to leave my diatribe about the Refco fiasco for next week!(more...)

[ozymandius]

2. Crude Oil Prices Fall

VIENNA, Austria - Crude-oil futures fell Tuesday as fears eased over the threat of Tropical Storm Wilma, with the storm now expected to stay away from oil facilities in the U.S. Gulf of Mexico.

But the approach of the Northern Hemisphere winter was expected to keep a firm floor under prices, primarily because of heating oil demand in Europe and the United States.

Light, sweet crude for November delivery slipped 72 cents to $63.64 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange.

-cut-

Traders watched Tropical Storm Wilma closely as it churned in the Caribbean Sea. New forecast models placed the storm closer to western Cuba than Mexico's Yucatan Peninsula by Friday. The storm was forecast to then turn sharply in the Gulf of Mexico toward Florida over the weekend.

more

[UpInArms]

16. Current Energy Futures:

7:24am 10/18/05 NOV HEATING OIL DOWN 3.83C AT $1,945 A GALLON

(I hope they meant $1.945!)

7:24am 10/18/05 NOV NATGAS FUTURES DOWN 4.17C AT $13.47 PER MILLION BTUS

7:24am 10/18/05 NOV CRUDE FUTURES DOWN 98C AT $63.38 A BARREL

7:24am 10/18/05 NOV UNLEADED GASOLINE FUTURES DOWN 5.37C AT $1.7616/GALLON

[UpInArms]

39. Nov Crude @ $63.60 bbl - NatGas @ $13.37 mln btus

10:03am 10/18/05 NOV CRUDE FALLS 76C, OR 1.2%, TO $63.60/BRL IN EARLY TRADE

10:03am 10/18/05 NOV NATURAL GAS DROPS 51.7C, OR 3.7%, TO $13.37/MLN BTUS

[UpInArms]

88. Nov Crude closes @ $63.20 bbl - NatGas @ $13.42 mln btus

2:56pm 10/18/05 NOV CRUDE CLOSES AT $63.20/BRL, DOWN $1.16, OR 1.8%

2:56pm 10/18/05 NOV NATURAL GAS ENDS AT $13.42/MLN BTUS, DOWN 46.6C, OR 3.4%

[UpInArms]

75. Businesses may see NatGas svc curtailed if supplies run low this winter

http://www.marketwatch.com/news/story.asp?guid=%7BD39227AA%2D9A16%2D4837%2DA2D2%2DB4C47E8FE245%7D&siteid=mktw

WASHINGTON (MarketWatch) -- Energy industry officials warned lawmakers on Tuesday that businesses relying on natural gas may see their service interrupted this winter if temperatures plunge and supplies run low.

Larry Downes, chairman of the American Gas Association, told members of the Senate Energy and Natural Resources Committee that industrial and commercial customers that have signed up for "interruptible" service in return for a discount on their supply contracts "may see temporary interruptions."

"Much of the market is comprised of interruptible contracts that do not guarantee delivery of natural gas," said John Walker, chairman of the Independent Petroleum Association of America, in a letter sent to lawmakers. The trade group represents oil and natural-gas producers.

"Some of this energy can be replaced from alternative energy sources, but much of it will compete for available gas supplies and drive the price accordingly," the group warned.

There are about 5.2 million industrial and commercial natural-gas customers in the United States, representing 51% of total natural-gas domestic consumption.

<snip>

On cold winter days, spiking demand for natural gas can leave local distributors without access to adequate supplies, prompting them to halt service to select users.

...more...

[ozymandius]

3. Prices Make Biggest Jump in 25 Years

WASHINGTON - Consumer prices soared last month by the biggest amount in a quarter-century, propelled by Hurricanes Katrina and Rita and the record gasoline costs in their wake. The storms caused industrial production and consumer confidence to plunge, raising new worries about the economy's ability to bounce back.

The Labor Department reported Friday that inflation jumped 1.2 percent last month. Ninety percent of the increase came from a record-shattering 12 percent surge in energy prices, reflecting tight supplies after widespread shutdowns of refineries and oil and natural gas production along the Gulf Coast.

Those shutdowns contributed to 1.3 percent drop in industrial production in September, the biggest falloff in 23 years.

On the consumer front, retail sales managed to eke out just a 0.2 percent gain in September which would have been a 0.2 percent decline if it had not been for a jump in gasoline sales that reflected the soaring prices that went above $3 per gallon. Much of the weakness reflected a big drop in auto sales after two big months of incentive-induced sales.

more

[Capn Sunshine]

25. Not good

I was alerted out of a sound sleep this morning , and thisis why.

Batten down the hatches?

[UpInArms]

27. Is it time to

:hide: ?

[AnneD]

30. Morning Marketeers,

:hangover: The 'Stros lost a close one so we are all flying a little low here in Clutch City...but hey, we are use to tight spots.

Hope everyone has battened down the hatches or if you prefer, please lower your tray in the upright position and locked. The seat sign is on, please extinguish all smoking materials...including all mutual fund reports, government economic outlook reports, etc.:hide:
I realized that those of us getting paid every 2 weeks will get a third check in Nov. That may cushion the first blows of oil and increased credit card mins, but I see allot of trouble in the near future (and, of course, more surprised economists).

Happy hunting, be safe, and watch out for the bears.....

[UpInArms]

4. daily dollar watch

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

Last trade 90.42 Change 0.62 (+0.69%)

(check out that drop to 89.25 at midnight ???)

Dollar Rallies As Market Ponders 5% Rates

http://www.dailyfx.com/index.php?option=com_content&task=view&id=4242&Itemid=39

US Dollar
The US dollar has gained strength in a relatively quiet day as the market prepares for tomorrow’s heavy dose of global economic data. Here in the US, we are expecting reports from all facets of the US economy including inflation, foreign appetite for US securities and the housing sector. Inflation will remain on the top of everyone’s list of things to watch as producer prices are expected to grow just as fast as consumer prices, if not faster. It is hardly a secret that producers have borne the brunt of higher input prices over the past few months as they watch their margins continue to get squeezed. Higher inflation seems to be the market’s only focus these days as the futures market has now fully priced in at least 2 more rate hikes to 4.25% with a more than 50% likelihood of another rate hike on January 31st to 4.50%. After last Friday’s sharp surge in consumer prices, we saw analysts from the leading investment banks step out to tout the possibility of 5% rates. Although we think that this is a bit far fetched given the dark clouds hanging over nearly every piece of data we have seen over the past few weeks, it does confirm that the dollar will continue to benefit from higher interest rates and hold onto its title as the favorite carry trade currency to go long in 2005. With no less than ten Fed speeches this week, nine of who are voters this year or next, we doubt that the Fed will let the market forget about how concerned they are for inflation. Therefore the risk for the dollar this week appears to be on the upside, but we will first have to see how the results of tomorrow’s TIC report of foreign purchases of US securities fares in the month of August. So far, foreign inflows are expected to reach $60B, which is less than the previous month, but just about meets the funding needs for the same month’s trade deficit. If the dollar is lucky enough, as it has been over the past few weeks, the market could shrug off a weak report like they did this morning and proceed on with its rally. The Empire Statement manufacturing survey shrank from a downwardly revised 15.6 to 12.1. The dollar barely budged even though the rise was primarily led by the growth in the prices paid component. The employment component as well as the outlook component both softened.

...more...

Yen Continues Tumble On Fed Rate Hike Fears

http://www.dailyfx.com/index.php?option=com_content&task=view&id=4248&Itemid=62

The Yen continued to slide against the greenback on Tuesday hitting two year lows as the market refocused on the Fed Rate hike in the upcoming FOMC meeting on November 1st. USD bought 115.34 Yen as of 0545 GMT, up from trading at 114.90 against the Yen at 1700 EST on Monday. With several Federal officials scheduled to speak across the US this week, the market expects Fed officials will renew their calls for interest rate rises in order to combat the threat of rising inflation in America.

Tuesday saw the release of Japan’s Leading Economic index and Coincident index numbers for August. Both indicators came in line with market expectations at 100.0% and 80.0% respectively, and could not alleviate Yen’s suffering against the greenback.

...more...

[UpInArms]

14. Greenspan,Tanigaki discussed US,Japan economies-MOF

(do I smell a whiff of intervention?)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T074356Z_01_TKU002244_RTRIDST_0_ECONOMY-JAPAN-GREENSPAN.XML

TOKYO, Oct 18 (Reuters) - Federal Reserve Chairman Alan Greenspan and Japanese Finance Minister Sadakazu Tanigaki discussed the state of the U.S. and Japanese economies in a meeting on Tuesday, a Japanese Finance Ministry official said.

"The main topic of discussion was the U.S. economy," the official told reporters after Greenspan's meeting with Tanigaki.

He also said Tanigaki had briefed Greenspan on the Japanese economy, with Tanigaki having given assurances that the impact of high oil prices on growth would be limited.

Greenspan, in Tokyo for a two-day visit, delivered a speech to Japanese business leaders earlier on Tuesday.

[UpInArms]

19. Dollar at Two-Year High Vs. Yen

http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=AP&Date=20051018&ID=4160094

The dollar hit a two-year high against the Japanese yen Tuesday and also pushed higher against other major currencies after optimistic remarks about the U.S. economy by Federal Reserve Chairman Alan Greenspan.

The dollar rose to 115.89 yen in Tokyo, the highest since September 19, 2003, and up from the 114.97 yen it bought late Monday in New York.

...short blurb...

[UpInArms]

56. Why does the IMF want Columbia to be poor?

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T152359Z_01_N18547429_RTRIDST_0_ECONOMY-COLOMBIA-RESERVES.XML

excerpt:

Colombia's reserves remained 22.6 percent above the level held a year ago and comfortably above the $12.2 billion it has promised the International Monetary Fund to have at the end of the year.

Colombia's central bank has been regularly buying U.S. dollars in the foreign exchange market, seeking to restrain the strength of the peso, which has risen more than 10 percent against the dollar over the last 12 months.

...more at link...

[RawMaterials]

80. drug money laundering ?? n/m

[UpInArms]

5. Today's Reports:

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

Oct 18	8:30 AM	Core PPI		Sep	-	0.2%	0.2%	0.0%	-	
Oct 18	8:30 AM	PPI			Sep	-	1.5%	1.2%	0.6%	-	
Oct 18	9:00 AM	Net Foreign Holdings	-	-	-	-	-	-

[UpInArms]

21. US PPI up 6.9% y-o-y - most in 15 yrs - overall largest gain in 31 yrs!

8:30am 10/18/05 U.S. SEPT. CORE INTERMEDIATE PPI UP 3.5% Y-O-Y

8:30am 10/18/05 U.S. SEPT. PPI ENERGY UP 7.1%, 15-YEAR HIGH

8:30am 10/18/05 U.S. SEPT. CRUDE PPI UP 10.2%

8:30am 10/18/05 U.S. SEPT. INTERMEDIATE PPI UP 2.5%, MOST IN 31 YEARS

8:30am 10/18/05 U.S. CORE PPI UP 2.6% YEAR-ON-YEAR

8:30am 10/18/05 U.S. PPI UP 6.9% YEAR-ON-YEAR, MOST IN 15 YEARS

8:30am 10/18/05 LARGEST GAIN IN PPI IN 31 YEARS

8:30am 10/18/05 U.S. SEPT. CORE PPI UP 0.3% VS. 0.2% EXPECTED

8:30am 10/18/05 U.S. SEPT. PPI UP 1.9% VS. 1.2% EXPECTED

[UpInArms]

22. PPI surges 1.9%, most since 1974

http://www.marketwatch.com/news/story.asp?guid=%7B3FD81095%2D93C4%2D40EE%2D9A20%2DA41888A0E4F8%7D&siteid=mktw

WASHINGTON (MarketWatch) - U.S. wholesale prices rose 1.9% in September, the biggest jump in 31 years, the Labor Department said Tuesday.

Price increases were led by a 7.1% rise in wholesale energy prices, the biggest jump in 15 years. Food prices also soared, rising 1.4% on a record 49% increase in egg prices.

The producer price index for finished goods has increased 6.9% in the past 12 months, the fastest rise in prices in 15 years and nearly double the rate seen in June.

Core prices, which exclude food and energy, increased 0.3% as prices for capital goods increased 0.3%. Car prices increased 0.9% and truck prices climbed 1%.

The core rate is up 2.6% in the past year, down from 2.8% in August.

The PPI data come days after the Labor Department said consumer prices increased 1.2% in September on higher energy prices, which peaked in September after two devastating hurricanes disrupted much of the oil and gas production and distribution in the Gulf Coast region.

<snip>

Core intermediate goods prices increased 1.2% as building materials, chemicals and metals jumped in price. It's the largest gain the core intermediate PPI in 25 years. The year-over-year increase in the core intermediate rose to 3.5% in September from 3.2% in August.

...more...

[JNelson6563]

23. We are so screwed

I wondered how much longer teh spinners would get away with the claim that inflation is nothing to worry about and things are great. Looks like the party's over.

Julie

[UpInArms]

26. Aug Capital Flows:

9:00am 10/18/05 U.S. AUG. CAPITAL FLOWS $91.3 BLN VS REV $87.5 BLN IN JULY

U.S. Aug. capital flows rise to $91.3 bln

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38643.3754155093-846493122&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Capital flows into the United States rose in August, the Treasury Department said Tuesday. Total net capital inflows rose to $91.3 billion in August from a revised $87.5 billion in July. The increase was unexpected. Most analysts were generally expecting a decline in net capital flows. Despite the increase in capital flows, private foreign investors and foreign central banks trimmed their purchases of U.S. securities in August. U.S. residents sold a net $3.5 billion in foreign securities in August compared with purchases of $13.8 billion in July.

More from the Pirates of the Carribean?

[UpInArms]

28. more info:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T130706Z_01_WAT004212_RTRIDST_0_ECONOMY-INFLOWS-URGENT.XML

excerpt:

Net capital inflows, excluding foreign stocks and bonds, fell in August to $87.9 billion from July's $101.3 billion.

Net foreign purchases of U.S. corporate bonds surged to $40.3 billion in August from $24.9 billion. Net U.S. equities purchases slipped to $3.8 billion from $10.0 billion in July.

Foreigners' net buying of U.S. Treasuries fell slightly to $28.1 billion in August from $28.5 billion in July. Net purchases of U.S. agency bonds also decreased to $15.7 billion from July's $37.8 billion as foreign official institutions cut their holdings.

While markets watch the inflow data keenly as a measure of foreign investors' appetite for U.S. assets, the Treasury Department says its report does not fully reflect the nation's ability to fund its trade deficit because it does not include direct investment or bank accounts.

...more at link...

[UpInArms]

35. more info that clarifies:

http://www.marketwatch.com/news/story.asp?guid=%7B1DB62B23%2DF8AF%2D4131%2D95D0%2D7D856723DF48%7D&siteid=mktw

excerpt:

Despite the increase in capital flows, private foreign investors and foreign central banks trimmed their purchases of U.S. securities in August.

The only reason that capital flows increased was that U.S. residents sold a net $3.5 billion in foreign securities in August after buying $13.8 billion in July. As a result, there was a smaller capital outflow overseas.

Foreigners bought $87.9 billion of Treasury notes and bonds in August, down from $101.3 billion in July, according to the Treasury International Capital data.

Foreign central banks accounted for only $4.4 billion of the August purchases.

...more...

[Gronk Groks]

92. Does this mean that foreign banks are...

...no longer willing to bankroll the U.S. Government deficit spending?

If so, does this imply inflation? I assume the CPI upsurge to 1.9% is in response or am I reading to much into that?

Amateur with a loose appreciation of economics, wishing enlightenment...

[UpInArms]

94. seems the foreign central banks were more interested in

buying corporate bonds than government paper.

Perhaps the appetite for US debt is waning?

The inflation problem is really a global thing at this point - energy is more expensive for all countries really - not just for us.

In my personal opinion, it is not the inflation, it is the risk attached.

Hope that answered your questions - glad to have you here at the SMW, Gronk Groks! :hi:

[Gronk Groks]

98. Ok, then they are risk adverse to U.S. Government debt...

...which seems to be spiraling out of control, but not adverse to the U.S. economy/corporations which seems to be surviving the oil shocks?

Or is everyone in the same boat/supertanker problem and they see the U.S. economy as surviving better than any other investment.

Next silly question...SMW = ?

[UpInArms]

100. SMW =

"Stock Market Watch" - this thread that runs daily - started every morning by our best guru - Ozymandius :toast:

and peopled by the most intrepid DUers :grouphug:

Looks like the market hit a pothole and forgot to snapback - must be time for a :beer:

[Gronk Groks]

103. And how have I missed you guys...

...must have had a serious blind spot. Nice to find people who can help me understand some of the more arcane aspects of our economy.

Time for a bookmark...

[UpInArms]

105. ack! don't bookmark this link

because it changes every weekday morning - just look at the LBN (Late Breaking News) Forum and you will generally find this thread on the first page every day.

See you tomorrow!

:hi:

[UpInArms]

6. Refco spurs questions on market oversight

http://today.reuters.com/business/newsarticle.aspx?type=ousiv&storyID=2005-10-17T200834Z_01_BAU772376_RTRIDST_0_BUSINESSPRO-FINANCIAL-REFCO-REGULATION-DC.XML

WASHINGTON (Reuters) - U.S. regulators have cracked down hard on financial markets in the post-Enron period, but they were caught off guard -- again -- by the latest Wall Street scandal, this one at Refco Inc. (RFX.N: Quote, Profile, Research).

Last week's debacle at the giant futures and commodities broker is adding new urgency to questions about how U.S. brokerages and exchanges are policed.

The problem, said regulation experts and market academics, is simultaneously one of too much oversight and not enough.

"While we might have a lot of regulation, we don't have necessarily appropriate regulation that has real power to change," said Richard Ferlauto, director of pension and benefit policy at the American Federation of State, County and Municipal Employees labor union.

Under the present system, "self-regulatory organizations" (SROs) -- such as the New York Stock Exchange and NASD -- deal with the daily routine of policing brokerages and exchanges, while government agencies handle the big issues.

Refco, for instance, was subject to regulation from a dozen separate U.S. exchanges, the NASD and the NYSE's regulatory unit, as well as the Commodity Futures Trading Commission and the Securities and Exchange Commission.

...more...

[UpInArms]

7. Fund Says Law Firm Saw Refco Transactions

http://www.thestreet.com/_googlen/markets/matthewgoldstein/10247702.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA

The circular transactions at the center of the accounting scandal at Refco (RFX:NYSE - commentary - research - Cramer's Take) were reviewed by one of the nation's largest law firms, an attorney for a hedge fund linked to the scandal said.

Kevin Marino, the attorney for Liberty Corner Capital Strategies, the New Jersey hedge fund that was involved in the questionable transactions with Refco, says lawyers with Mayer, Brown, Rowe & Maw drafted some of the loan documents.

Marino wasn't more specific about the law firm's role.

A spokeswoman for Mayer, Brown said the firm's policy is not to comment on client matters.

Marino claims that Mayer Brown's involvement in the deal is one reason officials with Liberty Corner never questioned the legitimacy of the loans, which federal prosecutors say were used by former Refco CEO Phillip Bennett to conceal a $430 million accounting fraud from the company.

Mayer Brown is one of the law firms that represented Refco in preparing the registration statement for the broker's $583 million IPO in August. Its attorneys were not immediately available for comment.

...more...

[UpInArms]

8. Refco sells core futures unit, files for bankruptcy

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T105742Z_01_N17266510_RTRIDST_0_FINANCIAL-REFCO-CHAPTER11-UPDATE-4.XML

NEW YORK, Oct 18 (Reuters) - Futures and commodities firm Refco Inc. (RFX.N: Quote, Profile, Research) has agreed to sell its core futures brokerage business to an investor group for $768 million and filed for bankruptcy protection along with several subsidiaries.

Private equity fund J.C. Flowers & Co. LLC, run by former Goldman Sachs (GS.N: Quote, Profile, Research) partner Christopher Flowers, is leading the investor group, which includes Enstar Group Inc. (ESGR.O: Quote, Profile, Research), a financial services investment firm in which Flowers is the largest shareholder.

The moves, announced late on Monday, came two months after Refco went public and a week after its stock sank on news that Chief Executive Phillip Bennett controlled an entity that hid $430 million in debt from Refco. Bennett was arrested last week and charged with securities fraud.

Silver Point Capital, MatlinPatterson Global Advisers LLC and Texas Pacific Group are also part of the investor group.

But Flowers could face competition. Dubai Investments, an investment arm of the Dubai government, has hired The Blackstone Group to advise it on a potential $1 billion acquisition of the entire company, a source close to the matter said on Tuesday.

...more...

[UpInArms]

15. Austria's BAWAG lent 355 mln eur to Refco CEO

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T095807Z_01_L18734841_RTRIDST_0_FINANCIAL-REFCO-BAWAG.XML

VIENNA, Oct 18 (Reuters) - Most of Austrian bank BAWAG P.S.K.'s exposure to Refco Inc. (RFX.N: Quote, Profile, Research), which filed for bankruptcy, was a loan to the commodities broker's chief executive and was backed by his stake in Refco, BAWAG said.

BAWAG, which is owned by Austria's trade unions, loaned 355 million euros ($428 million) to a company owned by Refco's Chief Executive Phillip Bennett, said the finance chief of trade union federation OeGB in an interview with local news agency APA late on Monday.

Bennett was arrested last week and charged with securities fraud.

The loan was secured "almost completely" with Bennett's stake of "around a third" in Refco as a collateral, OeGB's Guenter Weninger was quoted as saying by APA. Weninger also chairs BAWAG's supervisory board.

The rest of BAWAG's total exposure of 425 million euros was a loan of 70 million euros directly to Refco, Weninger said. He did not if it was secured.

...more...

Whoopsie!

[UpInArms]

52. Moody's may cut BAWAG (Austria) on Refco exposure

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T145704Z_01_WNA0392_RTRIDST_0_FINANCIAL-BAWAG-MOODY-S-URGENT.XML

NEW YORK, Oct 18 (Reuters) - Moody's Investors Service on Tuesday said it may cut the debt ratings of Austrian Bank BAWAG P.S.K., citing a $425 million line of credit at risk linked to Refco Inc. (RFX.N: Quote, Profile, Research), which filed for bankruptcy protection this week.

"Moody's is concerned that the potential loss content of this exposure could negatively affect the bank's capitalization," the rating agency said.

Moody's said it may cut the bank's "A2" long-term rating and its "C-plus" financial strength rating.

Moody's affirmed the bank's "P-1" short-term rating.

...a bit more...

[UpInArms]

53. What About the Rest of Refco?

http://www.businessweek.com/bwdaily/dnflash/oct2005/nf20051017_2707.htm

Selling the futures brokerage is a solution for only half of the tainted firm's business. The other half is where things could get messy


Now that Refco (RFX ) has an agreement to sell its futures brokerage, which is about half its operation, the firm's remaining units are facing rapid liquidation in bankruptcy, people familiar with the firm's restructuring efforts say. And that could leave hedge funds and other big investors scrambling to get their money out (see BW Online, 10/17/05, "Refco's Painful Lesson for Investors").

The once-formidable derivatives broker said late on Monday, Oct. 17, that it had reached a $768 million deal to sell its futures unit, Refco LLC, to a group of investors led by hedge fund J.C. Flowers & Co. Because Refco has more than $1 billion of debt on its balance sheet as of May 31 -- and other creditors like landlords are likely to clamor for the money -- the Flowers deal isn't expected to aid Refco shareholders much, if at all. Goldman Sachs (GS ) and boutique investment bank Greenhill & Co. advised Refco. The completion of the deal also marked the end of the assignment for Goldman, which has been criticized for its involvement, given its work as an underwriter on Refco's IPO.

<snip>

Whether the freeze will harm any customers is yet to be seen. Hedge funds that borrowed money by putting up Treasury bonds as collateral, a common transaction known as a repurchase agreement, or repo, could be stuck. I wonder how many of those Treasury RePos that were "unexpectedly high" belonged to Refco? "It's clearly good news that nothing bad has happened so far, but it doesn't mean that you're out of harm's way," says Leslie Rahl, president of New York-based Capital Market Risk Advisors, which advises financial firms on risk-management practices.

Unwinding trades that went through Refco or those with other brokers that depended on earlier trades that did go through Refco will take time, she added. "I don't think we'll really know until we see the second- and third-order effects. That could easily take several weeks to unravel."

...more...

[UpInArms]

74. S&P cuts Refco's debt ratings to default

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T172915Z_01_N18337126_RTRIDST_0_FINANCIAL-REFCO-S-P-URGENT.XML

NEW YORK, Oct 18 (Reuters) - Standard & Poor's on Tuesday cut its rating on Refco Group Ltd. to default, citing the bankruptcy filing of its parent Refco Inc. (RFXCQ.PK: Quote, Profile, Research).

The debt rating downgrades come after Refco Inc. announced some of its subsidiaries filed for bankruptcy protection, S&P said.

The futures and commodities firm has battled a widening accounting scandal after its Chief Executive Phillip Bennet was charged last week with securities fraud.

S&P cut the Refco Group's long-term counterparty credit and senior debt rating to "D" or default, from "CC." The ratings agency also cut the subordinated debt rating to "D" from "C."

1:20pm 10/18/05 S&P CUTS REFCO GROUP LTD. SUBORDINATED DEBT RATING TO 'D'

1:21pm 10/18/05 S&P CUTS REFCO GROUP LTD. COUNTERPARTY CREDIT RATING TO 'D'

1:19pm 10/18/05 S&P CUTS REFCO GROUP LTD. SENIOR DEBT RATING TO 'D'

1:18pm 10/18/05 S&P DOWNGRADES REFCO GROUP LTD. RATINGS

[UpInArms]

89. Refco's 95% decline marks 2005's worst IPO YTD performance

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38643.6204194792-846528047&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- With a drop of about 95% to $1.11 a share since its Aug. 10 IPO pricing at $22 a share, Refco (RFX) has the worst year-to-date initial public offering, according to Thomson Financial. The derivatives broker beat out an 85% drop from Odimo (ODMO) for the biggest fall of the year. Odimo debuted at $9 a share on Feb. 14 and closed Monday at $1.37 a share. ECC Capital Corp. (ECR) has fallen 63% for the No. 3 slot.

[UpInArms]

91. Interesting background info on Bennett (Refco CEO)

http://www.smh.com.au/news/business/an-englishman-in-new-york-and-in-big-trouble/2005/10/18/1129401257844.html

excerpt:

But anyone outside the financial world is likely to ask more basic questions: how could one man borrow so much money that, in dollar bills, you'd need 30 trucks to carry it all? And how could no one notice?

But there is another question: just who is Phillip R. Bennett? For a man who was chief executive of a company once valued at more than $US3 billion, he has kept a remarkably low profile.

What quickly becomes apparent is that although Bennett's company was listed on the New York Stock Exchange, he was still very much part of what is, in the UK, dubbed the "Secret City".

This hidden world consists of hedge funds, private equity groups, traders and proprietary or "prop trading" desks of investment banks, which bet their respective banks' money in the markets. Perhaps because their work can be controversial executives in these businesses rarely come out of the shadows.

...more at link... (but not really :( )

[UpInArms]

93. more about the UK's "Secret City"

Revealed: the City's top 100 who are worth £9bn

http://business.timesonline.co.uk/article/0,,14689-1143283,00.html

MORE than half of the City of London’s 100 richest people, controlling personal wealth of £9 billion, come from the two most secretive sectors in the financial capital, according to research by The Sunday Times.

A total of 39 of the 100 are owners of hedge funds, loosely regulated pools of capital investing in options, futures and other complex financial instruments. Hedge funds made headlines in 1992 when George Soros bet against sterling and broke the Bank of England.



Another fifth of the richest 100 City professionals run private-equity firms, businesses that use borrowed money to buy companies, turn them round and sell at a profit. Private-equity firms came to public attention in 1989, when Kohlberg Kravis & Roberts (KKR) won a hostile bid for the US food and tobacco giant RJR Nabisco. KKR came to be known as the Barbarians at the Gate.

“Five years ago, hedge funds and private-equity firms were bit-players in London,” said City historian Tony Golding. “Today they are leading lights, even though remarkably little is known about them.”

<snip>

Six London-based partners of the US investment bank Goldman Sachs, including ex-partner and former BBC chairman Gavyn Davies, make the list.

...more...

and

The secret city

Keeping it in the family pays off for the well-connected

http://business.timesonline.co.uk/article/0,,8211-1677145,00.html

In the first of an occasional series on privately owned city institutions, our correspondent describes how the Fleming banking dynasty has already made a ninefold return from its new business, Fleming Family & Partners

A BURLY man in a suit stands guard outside 37 Dover Street in the heart of Mayfair. Undesirables are not welcome inside this elegant Georgian townhouse, the former London palace of the Bishop of Ely.

Inside, all is well-ordered peace. An ornate grandfather clock ticks soothingly. Every wall is covered with charming landscapes and other Scottish art. There are vases of flowers everywhere. Well-worn Turkish carpets cover the floors.

Apart from the occasional computer screen, the effect is of the interior of a country house where not much has changed for 150 years.

In fact, we are in an investment house, and one that is less than five years old. Fleming Family & Partners is the new vehicle of the Fleming banking dynasty.

With impeccable timing, the family sold their merchant bank, Robert Fleming, to Chase Manhattan at the very top of the equity cycle in the spring of 2000.

<snip>

FF&P immediately set about baling out of JP Morgan Chase shares — the paper the family received for their holdings. The family had at the outset about £600 million of exposure to a bank they no longer ran and set out to reduce this rapidly through derivatives deals.

...more...

Secret City - Funds that watch the other funds have found a niche of their own

http://p196.ezboard.com/fredcatsboardsfrm2.showMessage?topicID=14308.topic&index=6

For investors in hedge funds, picking the right ones has never seemed so important. Charlatans, incompetents and crooks flourish in this industry, as in any corner of the financial world.

Yet because information is thin and regulation non-existent, the risks can seem especially acute. Add the temptation posed by the large chunks of money involved, and the obfuscatory jargon that the industry spews out, and you have a recipe for disappointment.

Investors can be badly burnt. Last month one anxious client turned up at the New England office of one hedge fund, Bayou Management, to find nothing but a jumble of papers and a suicide note. Investigators — including the FBI and the Securities and Exchange Commission (SEC) — believe that wealthy individuals, each with more than $200,000 (£108,000) to invest, paid around $500 million (£272 million) into the fund over seven years. Most of the money is unaccounted for.

Even where there is no malpractice, hedge funds can go wrong — or “blow up”, in the parlance of this most secretive of industries.

Bailey Coates is a classic example of a once highly regarded manager deserted by its golden touch. The London fund, which at one point had $1.3 billion under management, closed down this year after losing its investors almost a quarter of their money.

...more...

[UpInArms]

9. Washed-Up Has-Been Partisan Hack Spews Absolute Shit

Oil prices to hurt, but not like 1970s - Greenspan

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-10-18T004854Z_01_N17261780_RTRIDST_0_ECONOMY-GREENSPAN.XML

WASHINGTON, Oct 17 (Reuters) - Skyrocketing energy prices will weigh on global growth but will likely exact a much smaller toll than surging oil prices did in the 1970s, U.S. Federal Reserve Chairman Alan Greenspan said on Monday.

"Although the global economic expansion appears to have been on a reasonably firm path through the summer months, the recent surge in energy prices will undoubtedly be a drag from now on," Greenspan said in remarks prepared for delivery in Tokyo to a group of Japanese businessman on Tuesday morning local time.

"The effect of the current surge in oil prices, though noticeable, is likely to prove significantly less consequential to economic growth and inflation than the surge in the 1970s," he said.

Greenspan noted that oil prices remained below their inflation-adjusted peak of 1981 and said the world's economy had grown more energy-efficient in recent decades.

A text of his speech, which did not address the outlook for U.S. monetary policy, was made available in Washington.

<snip>

But, as he has in the past, Greenspan said market prices were providing the signals that could shift economic behavior in a way that would bring better balance to supply and demand.

...more...

[AnneD]

41. Hey UIA...

do you remember the battle scene in Braveheart...the one where they lifted their kilts and gave a scottish salute....Isn't it time now. Can we give him a send off. Can we, can we, can we....... pretty plueeze. I'll pull out my tartan skirt just for the occasion.

[UpInArms]

42. I'll join you in that salute

while I wait for this sack of shit to die - and I truly want to know where they plant his carcass. :evilgrin:

[AnneD]

55. EEEWWWWHHHH

you're too bad :evilgrin:

[54anickel]

54. James Jones and Global Finance

http://www.prudentbear.com/internationalperspective.asp

For those with a generation gap with the author, Jimmy Jones led a group of several hundred cultists dominated by him to “Jonestown” Guyana some years ago and convinced them all to drink “Kool-Aid” laced with cyanide with 100% mortality. It is our contention that the “maestro” has managed to do the same for the various heads of Ministries of Finance, Treasuries and Central Banks around the world. Sadly, unlike cyanide, the poison of below 0% effective interest rates in the global reserve currency is slow acting and therefore far more devastating!

Having retreated in panic at the reaction to the words “irrational exuberance” he correctly uttered in the mid-1990’s and permitted the so-called “dot-com” bubble, the “maestro” had to justify the consequences with a comment that bubbles cannot be foreseen and are best addressed after the fact.

THE FACT IS THAT THIS “maestro”HAS BEEN ADDRESSING FINANCIAL DISTRESS SINCE 1987 WITH A SINGLE INSTRUMENT WITH BUT TWO RELATED STRINGS: DRASTIC INTEREST RATE CUTS AND EXCESSIVE MONEY SUPPLY CREATION!

The policy worked well in the “crash” of 1987 since he had plenty of room on the downside and a basically strong economy. The mini-recession of 1991 yielded as well, as did the Mexican Mess, the Thailand tango, the Russian fraud, the LTCM fatcat bailout and the pitiful little 1 quarter “recession” of 2001. For that one, however, Sir Alan had to push fed funds down to 1% and keep them there.

The rest of the world followed the lead of Sir Printsalot with glee. European rates bottomed at 2% as they actually give lip service to price stability. Even the Russians got down to 6%. Not only did sovereign short and long term rates plunge, but risk premiums vanished. Halcyon days for borrowers of all descriptions, but virtual Nirvana for the asset class and the users of credit in that asset class known as “real estate.” Even the name sounds impregnable! The Japanese had shown that 0% rates had merit. What our Fedhead might have missed was Japan’s willingness to save 15% of income at 0% yield. Different culture, different mechanism. While that mono-culture saved for 14 years and bailed out a defunct banking system that had only to pay 0% and take a 1% spread from the Government since none of the depositors were borrowing, they were repaying, our multi-culture went on a spending and debt spree never seen (much less envisioned) in economic history.

more...

[UpInArms]

10. U.S. prosecutors bring new indictment in KPMG case

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-17T220517Z_01_N17253355_RTRIDST_0_FINANCIAL-KPMG-UPDATE-1.XML

NEW YORK, Oct 17 (Reuters) - U.S. prosecutors on Monday indicted 10 more people associated with accounting firm KPMG (KPMG.UL: Quote, Profile, Research) in a case related to the use of certain types of tax shelters to help wealthy clients avoid paying tax.

KPMG's former chief financial officer Richard Rosenthal was among the latest group to be charged.

Prosecutor Justin Weddle told Manhattan Federal Judge Lewis Kaplan that additional charges were also brought against several existing defendants.

U.S. regulators said this raised the number of individuals charged in this case to 19.

Regulators said in a statement this is now believed to be the largest criminal tax case ever filed, which generated at least $11 billion in fraudulent phony tax losses and resulted in at least $2.5 billion in tax evaded by wealthy individuals.

In August, Big Four accounting firm KPMG agreed to pay $456 million to settle a federal tax shelters investigation.

...more...

[UpInArms]

11. Higher U.S. rates to cool housing froth-Santomero

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-17T215315Z_01_NAT001846_RTRIDST_0_ECONOMY-FED-SANTOMERO-HOUSING-URGENT.XML

RALEIGH, NORTH CAROLINA, Oct 17 (Reuters) - There is some evidence of froth in the U.S. housing market, but that should work itself out as U.S. interest rates rise, Federal Reserve Bank of Philadelphia President Anthony Santomero said on Monday.

"Based on previous history, as interest rates move up, we see a dampening in the demand for housing and the acceleration of demand slows," Santomero said in answer to a question following a lecture at the North Carolina State College of Management.

Santomero also said capital was likely to continue to flow into the United States as long as the economy remained vibrant.

He also noted that the country has been able to withstand the sharp rise in oil prices because it has become more energy efficient over the years, adding that conservation ought to continue.

[UpInArms]

67. FDIC head warns of mortgage credit losses ahead

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T161542Z_01_N18324700_RTRIDST_0_ECONOMY-HOUSING.XML

WASHINGTON, Oct 18 (Reuters) - Residential mortgage lenders should be prepared for an increase in credit losses as interest rates rise and pull the reins on a years-long boom in the U.S. housing market, the chairman of the Federal Deposit Insurance Corp. said on Tuesday.

Donald Powell, in comments to the America's Community Bankers conference in Orlando, said record home price increases have led to nontraditional mortgage products, such as loans that require little documentation and interest-only loans.

But as interest rates begin to climb, borrowers will face higher debt service on some of those products.

"Credit losses are very low now, but mortgage lenders need to be prepared for higher losses," Powell said in comments prepared for the conference.

Powell said bank regulators are evaluating the risk to lenders, and would issue guidance where appropriate.

...more...

[UpInArms]

77. Financial complexity alters risk-Fed's Geithner

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T173217Z_01_NAT001850_RTRIDST_0_ECONOMY-FED-GEITHNER-URGENT.XML

NEW YORK, Oct 18 (Reuters) - The increased complexity of financial systems reduces the vulnerability of individual firms to risk, but adds to uncertainty over how well the financial system would respond to a major shock, New York Federal Reserve President Timothy Geithner said on Tuesday.

"The developments have contributed to what seems to be a significant improvement in the overall stability and resilience of the U.S. financial system by reducing the vulnerability of individual institutions to a broader range of potential shock," Geithner said in prepared remarks to a banking group.

"They may also, however, add to uncertainty about how well the system might function in the context of a major systemic shock," he said.

[UpInArms]

81. Five Fed banks wanted to hold discount rate steady

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T180446Z_01_WAT004220_RTRIDST_0_ECONOMY-FED-DISCOUNT-URGENT.XML

WASHINGTON, Oct. 18 (Reuters) - Five of the United States' 12 regional Federal Reserves wanted to hold the discount rate steady in the immediate aftermath of Hurricane Katrina, documents released by the U.S. central bank showed on Tuesday.

Board directors of the five -- Cleveland, Atlanta, St Louis, Dallas and San Francisco -- wanted to keep the discount rate steady at 4.5 percent until more was known of the impact the storm's destruction would have on U.S. growth.

"Those in favor of maintaining the primary credit rate generally preferred to wait until a fuller assessment could be made," according to minutes of the discount rate meetings.

"Some directors noted, however, that the damage and disruption caused by the hurricane had prompted them to lower their expectations for economic growth for the remainder of the year," they added.

The central bank's Federal Open Market Committee voted on Sept. 20 to raise the federal funds overnight rate by a quarter percentage point to 3.75 percent and the discount rate by the same amount to 4.75 percent.

...more...

Why do these guys even bother voting if it is "largely symbolic" and whatever they say is ignored anyway?

[UpInArms]

86. Yellen Yaps Like Trained Puppy

2:40pm 10/18/05 YELLEN: MANY COMPANIES CAN'T PASS ENERGY PRICES TO CUSTOMERS

2:40pm 10/18/05 YELLEN: NO SIGN HIGH GAS PRICES IMPACTING WAGE BARGAINING

2:40pm 10/18/05 YELLEN: KEY GOING FORWARD IS WHETHER ENERGY IMPACTS WAGES

2:40pm 10/18/05 YELLEN: MEDIUM TERM OUTLOOK FOR CORE PRICES FAVORABLE

2:40pm 10/18/05 YELLEN: CORE PCE YR-ON-YR NEAR TOP OF 'MY COMFORT RANGE'

2:40pm 10/18/05 YELLEN: CONSUMER SPENDING HOLDING UP WELL SO FAR

2:40pm 10/18/05 YELLEN: HEALTH OF CONSUMER CRUCIAL AS RATES NEAR NEUTRAL

2:40pm 10/18/05 YELLEN: MIDPOINT OF NEUTRAL RATE RANGE IS 4.5%

2:40pm 10/18/05 YELLEN: MORE RATE HIKES NEEDED TO BRING POLICY TO NEUTRAL

2:40pm 10/18/05 YELLEN: ECONOMY ON 'SOLID TRACK' DESPITE STORMS

2:40pm 10/18/05 FED'S YELLEN: GRADUAL RATE HIKES STILL MAKE SENSE

[UpInArms]

12. National City profit falls 19 pct on mortgages

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T104131Z_01_N18110547_RTRIDST_0_FINANCIAL-NATIONALCITY-EARNS-UPDATE-2.XML

NEW YORK, Oct 18 (Reuters) - National City Corp. (NCC.N: Quote, Profile, Research), the eighth-largest U.S. bank, on Tuesday said third-quarter profit fell 19 percent on weakness in mortgage banking.

Net income for the Cleveland-based company fell to $478 million, or 74 cents per share, from $591 million, or 86 cents a share, a year earlier.

Analysts polled by Reuters Estimates on average forecast profit of 77 cents per share.

Mortgage profit fell to $25 million from $139 million and mortgage revenue fell 51 percent to $183 million, reflecting lower margins and a drop in hedging gains on mortgage servicing rights.

...more...

[UpInArms]

13. Fifth Third 3rd-quarter profit falls

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T110630Z_01_WEN1275_RTRIDST_0_FINANCIAL-FIFTHTHIRD-EARNS-URGENT.XML

NEW YORK, Oct 18 (Reuters) - Fifth Third Bancorp Inc. (FITB.O: Quote, Profile, Research), a large U.S. Midwest bank, on Tuesday said third-quarter profit fell as it had difficulty managing interest-rate changes and suffered weaker-than-expected deposit growth.

Net income for the Cincinnati-based company fell to $395 million, or 71 cents per share, from $471 million, or 83 cents per share, a year earlier.

[UpInArms]

17. Calif. Man Pleads Guilty in Ponzi Scheme

http://www.newsday.com/business/nationworld/wire/sns-ap-unlicensed-financier,0,5476866.story?coll=sns-ap-business-headlines

SANTA ANA, Calif. -- A man accused of operating one of the largest Ponzi schemes in U.S. history pleaded guilty Monday to one count each of mail fraud and money laundering in a deal with prosecutors.

James Paul Lewis Jr., 59, could face up to 30 years in prison for the scheme, which cost nearly 3,300 investors around $70 million, prosecutor Greg Staples said.

Prosecutors allege Lewis raised more than $300 million overall. He had faced 14 counts in the case, but agreed to help prosecutors recover more of the investors' assets in exchange for a plea deal, said his attorney, Scott Schlegel.

Authorities said many of the investors scammed by Lewis were fellow members of the Mormon church. Lewis, president of Financial Advisory Consultants Inc. in Lake Forest, promised investors annual returns of 18 percent to 40 percent, authorities said.

<snip>

Staples said Monday that Lewis used investors' money to trade in currency futures -- where he lost $22 million -- and to buy several homes. He also bought luxury cars and jewelry for himself, his girlfriend and family members, Staples said.

...more...

[UpInArms]

18. CalPERS Asks Insurers to Cut Exec Bonuses

http://www.newsday.com/business/nationworld/wire/sns-ap-pacificare-united-health,0,928300.story?coll=sns-ap-business-headlines

SACRAMENTO, Calif. -- California Public Employees Retirement System board members urged PacifiCare Health Systems Inc. and UnitedHealth Group Inc. on Monday to trim a proposed $345 million executive bonus package included in the companies' planned merger.

Under the proposed $8.1 billion deal, the Minnesota-based United Health would acquire PacifiCare Health Systems. If approved, the combined companies would have about 25 million customers.

State Treasurer Phil Angelides, a CalPERS trustee, urged the board to oppose the bonus package, which would include $230 million in accelerated stock options and payments for PacifiCare executives -- plus another $85 million in "signing bonuses" for top executives who stayed with the company.

...more...

[UpInArms]

20. How the Lobbyists buy our government

http://www.usatoday.com/news/washington/2005-10-17-delay-politics_x.htm

excerpt:

His (DeLay's) former aides are in powerful posts throughout Washington. Former chiefs of staff are prominent lobbyists, including Tim Berry, who just went to work for Time Warner. Other former aides represent top corporations — FedEx, Verizon, Microsoft, Pfizer, Motorola, Walt Disney, ChevronTexaco — and key trade groups.

The former aides multiply DeLay's clout by steering money from their wealthy clients to help DeLay and GOP causes. In 2002, former DeLay legislative director Drew Maloney, a lobbyist, rounded up $152,500 from energy corporations for DeLay's leadership PAC. The money bought entree to an exclusive golf outing at the Homestead resort in western Virginia, as Congress was putting the final touches on a major energy bill, according to records compiled for a House ethics investigation.

Lobbyist Richard Bornemann described the need to donate in a confidential memo to his client, the electric utility Western Resources (now Westar Energy): "The most beneficial way to spend corporate dollars — as opposed to cutting personal or PAC (political action committee) checks — is with the House leadership. That means joining the fold, so to speak, of House Majority Leader Tom DeLay." The memo was posted on the House ethics committee's website.

"DeLay knows that reciprocity is the strongest norm in Washington," said James Thurber of American University. "The clients know they have a relationship and that they have to come up with the money. It's very clear to them, and they do it."

<snip>

The reach of DeLay's influence was no accident. With GOP anti-tax activist Grover Norquist, he created the K Street Project, named after the downtown Washington corridor that is home to many lobbying firms. The project places Republicans in high-paying, high-powered lobbying jobs with access to top officials in the corporate and political worlds.

...more...

[UpInArms]

24. Treasuries fall on higher-than-expected core PPI

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T124350Z_01_NYG000066_RTRIDST_0_MARKETS-BONDS-PPI-URGENT.XML

NEW YORK, Oct 18 (Reuters) - U.S. Treasury debt prices fell on Tuesday morning on higher-than-expected September core producer price inflation, suggesting the Federal Reserve's concern about rising prices is warranted.

The core September PPI reading, which excludes food and energy prices, rose 0.3 percent, higher than economists' expectations of a 0.2 percent increase and August's flat reading. The result suggested that higher energy prices are filtering through to affect non-energy components.

Prices of longer-dated Treasuries were affected a bit more by the news, with benchmark 10-year notes turning 3/32 lower for a yield of 4.51 percent, compared with 4.50 percent late on Monday.

Two-year notes trimmed what little gains they had ahead of the data and were trading unchanged for a yield of 4.28 percent.

[UpInArms]

32. Printing Press Report: Fed adds temporary reserves via overnight RPs

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T133323Z_01_N18342939_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Oct 18 (Reuters) - The Federal Reserve said on Tuesday it was adding temporary reserves to the banking system through overnight system repurchase agreements.

The benchmark federal funds rate last traded at 3.75 percent, the Fed's 3.75 percent target for the overnight lending rate.

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

See for recent Fed open market operations.

[Capn Sunshine]

34. Looks like the wave passed

The Treasury market seems to see the PPI and was lined up for worse, and the pervasive attitude is " Hey that wasn't a bad as we expected", and early action on the West coast lookslike those overnight trades were unwound, so yields are actually down a little this morning.

go figure.

[UpInArms]

36. what do you make of the information

in post #35?

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=1857671&mesg_id=1857973

and the "shunning of US investment"?

[Capn Sunshine]

78. I suppose it's inevitable

but many a trader will look you in the eye and say "cyclical adjustment"

With the dollar hitting new highs, there's still a need to hedge if you do contract Business in dollars. But not as much.

Sure, usually , when the FED says "rates are going up" the market has already made that move. This time it's different, because the FED has tried to lead, and too late in the game realized it wasn't going to happen.

Remember for a while there the market and the bond markets were in unison, not at cross purposes? ( ie both moving up or down together, not the traditional one up, the other down) Well, it's like that. Foreign buying is not the end all of the Bond market. It's been a very welcome leg under the bull, but just because it diminishes does not augur a rise interest rates as the demand for the bond exceeds just this one area.

That's a very complicated answer which translates into the "uncharted waters" scenario. For, as these things like Asian buying took us down that river, the cessation of this buying also puts us in a place we've never been.

So , just like your mom, I'm gonna answer with a definite "we'll see".

[UpInArms]

44. Treasurys gain as investment data trump PPI

http://www.marketwatch.com/news/story.asp?guid=%7B08F802C3%2D18A5%2D46FC%2D9EB6%2DD31CDF77BCE6%7D&siteid=mktw

CHICAGO (MarketWatch) - The bond market's inflation worries were upstaged Tuesday by a report that showed overseas investors kept up their appetitite for U.S. government debt.

The investment report shortly followed the release of producer price inflation figures that were heavily influenced by record-high energy prices - a mixed report that essentially stalled bond trading.

Core inflation figures, those outside of volatile food and energy, showed businesses having to absorb their energy costs, which poses a different set of challenges for a Federal Reserve widely expected to keep raising interest rates.

Treasury price gains eventually emerged, leaving the benchmark 10-year note up 9/32 at last check to 98 10/32. That adds just more than $2.50 per each $1,000 in securities at face value.

<snip>

A Treasury Department report showed foreigners were net purchasers of Treasurys for a 30th straight month in August, adding another $28.08 billion to their portfolios.

The increase leaves foreign holdings of Treasurys at more than $2 trillion or about half of the market's total $4 trillion in outstanding debt securities.

...more...

[UpInArms]

29. pre-opening blather

9:03AM: S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: -3.0. The equity market remains poised for a lower open as investors continue to absorb the most recent PPI data and maintain an overall sense of inflation-related caution. The vast majority of today's earnings reporters, though, have exceeded expectations and are lending a measure of support to the market. Some of the latest upside earnings reports incude those from Johnson & Johnson (JNJ), Wells Fargo (WFC), and Genzyme (GENZ).

8:34AM: S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: -4.5. Recently crossing the wires was the Sept. PPI report. Total PPI rose 1.9%, over last month's 0.6% increase and higher than the 1.2% rise that economists had expected. Core PPI, meanwhile, checked in at 0.3%. For the core rate, analysts had forecasted a 0.2% increase over last month's flat read. Initial reactions in both the stock and bond markets were negative ones; futures trade now suggests a lower open for the cash market.

8:02AM: S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: flat. Stocks are set to open in flat fashion today, as traders digest a deluge of earnings reports and await September's PPI report which is slated for release at the bottom of the hour. Providing a measure of support are positive reports from the likes of IBM (IBM), which was delivered after yesterday's close, 3M (MMM), Merrill Lynch (MER), State Street Corp. (STT), Sun Trust Banks (STI), United Technology (UTX), and US Bancorp (USB). On the other side of the aisle, Novellus' (NVLS) in-line report alongside slashed guidance - and a subsequent 9.6% early plunge - helps keep buyers in check this morning.

[UpInArms]

31. Fund managers more risk averse, shun U.S. - Merrill

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-10-18T133106Z_01_L1882185_RTRIDST_0_MARKETS-INVESTORS-MERRILL.XML

LONDON, Oct 18 (Reuters) - Investors are shunning U.S. equities at a rate not seen for six years, seeing them as expensive and threatened by poor profits and higher interest rates, a Merrill Lynch survey showed on Tuesday.

The investment bank also said its October survey generally showed growing risk aversion among the 311 fund managers it quizzes. Between them, the respondents manage more than $1 trillion in assets.

"What stuck out this month is how much people don't want U.S. equities. Anything but America," said David Bowers, Merrill's chief global investment strategist.

Japan, in particular, and the euro zone remained popular.

The survey showed 63 percent of respondents were underweight in U.S. equities, up from 54 percent a month earlier. Additionally, nearly a quarter of respondents described themselves as "aggressively" underweight in the asset class.

Merrill said that in net terms, subtracting the number of respondents who were underweight from those who were overweight, the finding on U.S. equities was the most negative in the survey for six years.

...more...

[UpInArms]

69. Wobbling investor confidence bodes ill for markets

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T160933Z_01_L18194323_RTRIDST_0_MARKETS-INVESTORS-CONFIDENCE-WRAPUP-1.XML

LONDON, Oct 18 (Reuters) - Pessimism appears to be tightening its grip on global investors as they look to a future threatened by slowing economies, rising interest rates and weaker corporate profits.

Three leading indicators of investor confidence suggested on Tuesday that, at the very least, big money asset managers are wary of what could be waiting for them just around the corner.

Investment bank Merrill Lynch's monthly survey of money managers across the world controlling $1.1 trillion of assets offered up a raft of evidence that the respondents were becoming more risk averse.

The October global investor confidence index issued by U.S. financial services firm State Street, based on actual allocations in $9.8 trillion-worth of assets, was at its lowest level since its inception in September 1998.

Germany's ZEW institute, meanwhile, said its monthly survey of analysts and institutional investors rose slightly in October. But the rise was far short of market expectations.

"We are starting to see a rise in risk aversion," said David Bowers, Merrill Lynch's chief global investment strategist.

...more...

[UpInArms]

33. 9:39 giving you the bidness

Dow 10,338.81 -9.29 (-0.09%)
Nasdaq 2,068.57 -1.73 (-0.08%)
S&P 500 1,187.78 -2.32 (-0.19%)
10-Yr Bond 4.477 -0.12 (-0.27%)

NYSE Volume 94,741,000
Nasdaq Volume 80,276,000

[UpInArms]

37. 9:50 EST downdate and blather

Dow 10,326.17 -21.93 (-0.21%)
Nasdaq 2,065.35 -4.95 (-0.24%)
S&P 500 1,186.60 -3.50 (-0.29%)
10-Yr Bond 4.471 -0.18 (-0.40%)

NYSE Volume 172,627,000
Nasdaq Volume 132,961,000

9:45AM: Opening in flat fashion but sinking soon after, inflation concerns appear to be winning out for the time being. While a large gain was expected after energy prices soared 7.1% in the month following Katrina, Sept. PPI jumped 1.9% (consensus +1.2%) and more than tripled the Aug. read. Of more interest, the core rate was up 0.3%. A gain of 0.2% was expected. This follows a 0.0% August change and one month does not make a trend, but the uptick raises modest concerns that broad-based inflationary pressures are building. The further-fanned inflation concerns has somewhat stolen the spotlight from overall positive Q3 earnings reports. As usual, about 65% are beating estimates; today's early upside reports include those from JNJ, UTX, MER, MMM, and NVS.

[UpInArms]

38. Mass Layoffs Possible for U.S. Car Makers, Experts Say (279,000 jobs)

http://www.infozine.com/news/stories/op/storiesView/sid/10866/

By David Kassabian - U.S. auto makers will be forced to lay off at least 297,000 employees if gas prices continue to rise, a panel of industry researchers and officials said Thursday.

Washington, D.C. - Scripps Howard Foundation Wire - infoZine - Most of the layoffs would be absorbed by General Motors Corp., Ford Motor Co. and DaimlerChrysler if the price of oil prices reaches $80 per barrel and stays there, said Walter S. McManus, director of the Office for the Study of Automotive Transportation at the University of Michigan Transportation Research Institute.

Light, sweet crude oil closed Thursday at $62.92 a barrel on the New York Mercantile exchange.

A third of the employees let go would be from Michigan, Ohio and Indiana, McManus said.

"Lots of groups realize there's a lot at stake here," McManus said. "Detroit has probably not been moving fast enough."

...more...

[UpInArms]

40. 10:15 EST Alfred E. Newman infiltrates trading floors

Dow 10,345.46 -2.64 (-0.03%)
Nasdaq 2,068.55 -1.75 (-0.08%)
S&P 500 1,187.36 -2.74 (-0.23%)
10-Yr Bond 4.471 -0.18 (-0.40%)

NYSE Volume 343,740,000
Nasdaq Volume 250,252,000

10:00AM: Maintaining their stance, each of the indices remain comfortably below the flat line. Early trading lacks leadership - leaving the Technology sector sporting the only gain, which is a modest 0.1% rise that can do little to counter broad-based pressure. While its internet software and services (+1.5%) and IT construction and services (1.4%) groups lend support, semiconductor equipment's 2.0% decline serves as a weighty drag. On the laggard list, Utilities is in last place and has slid 1.0% in the early going.NYSE Adv/Dec 846/1817, Nasdaq Adv/Dec 777/1588

[UpInArms]

43. FEMA: Hurricanes could cost flood program more than $22 bln

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38643.4262468519-846500745&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Claims from individuals hit by Hurricanes Katrina and Rita could cost the National Flood Insurance Program more than $22 billion, a Federal Emergency Management Agency official told the Senate Banking Committee Tuesday. David Maurstad, a FEMA division director, told the panel in prepared testimony the agency will need more than the extra $2 billion signed into law Sept. 20. Maurstad didn't say how much the agency needs but told senators "additional borrowing authority will be necessary."

[UpInArms]

45. Unisys swings to 3Q loss, will divest businesses, cut jobs (3,730 jobs)

http://www.marketwatch.com/news/story.asp?guid=%7B339D2A36%2D63A4%2D445A%2D8856%2DC41ED1BFA438%7D

BLUE BELL, Pa. (MarketWatch) -- Unisys Corp.(UIS) said it posted a preliminary third-quarter loss and announced plans to divest non-strategic businesses and reduce head count by 10% over the next year.

The company expects to return to profitability in the fourth quarter.

In a press release Tuesday, the information technology company said it swung to a loss of $54.3 million, or 16 cents a share, from net income of $25.2 million, or 7 cents, a year ago.

The latest quarter's results include a pretax charge of $10.7 million, or 2 cents a share, related to the cash tender for its 8 1/8% notes due 2006.

The year-ago third-quarter results also included a net benefit of $8.2 million, or 2 cents a share, which included a tax benefit and charge from cost-reduction actions.

<snip>

However, because of "disappointing results" the company plans to focus on high-growth market areas. It plans to reduce head count and use the proceeds from divesting businesses to implement cost reductions, fund business growth and pursue acquisitions.

...more...

Company at a Glance
Industry: Computer Services
Employees: 37,300

[UpInArms]

46. US Senate panel passes deposit insurance reform

(Yippee! Those that have none can now insure those that have more for even more!)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T143335Z_01_WAT004217_RTRIDST_0_CONGRESS-BANKING-URGENT.XML

WASHINGTON, Oct 18 (Reuters) - The U.S. Senate Banking Committee on Tuesday approved an overhaul of the federal deposit insurance system that combines two insurance funds and ties the current $100,000 limit on deposit insurance to inflation.

The legislation would merge the bank and savings association deposit insurance funds. The bill is now reported to the Senate Budget Committee for budget reconciliation.

It would index the current deposit insurance limit to inflation, giving the Federal Deposit Insurance Corp. authority to raise the insurance limit to match rising costs starting in 2010. The bill also would raise the limit to $250,000 for retirement accounts.

[UpInArms]

47. Mr. Peabody's Coaltrain

Coal miner Peabody's profit more than doubles

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T143830Z_01_N18301893_RTRIDST_0_MINERALS-PEABODY-EARNS-UPDATE-2.XML

NEW YORK, Oct 18 (Reuters) - Peabody Energy Corp. (BTU.N: Quote, Profile, Research), the largest U.S. coal producer, on Tuesday said quarterly profit more than doubled as high prices for oil and natural gas boosted demand for coal.

The company also said it expected the coal supply and demand balance in the United States to remain "extremely tight" for the foreseeable future, citing electricity demand growth and the need to replenish stockpiles.

Demand abroad is equally strong, driven by China, where coal consumption was up 17 percent over the summer, Peabody said.

Net income was $113.3 million or 84 cents per share, compared with $43.4 million, or 33 cents per share, in the same quarter last year, the St. Louis-based company said. Revenue rose 33 percent to $1.22 billion.

...more...

I feel a song comin' on!

When I was a child, my family would travel,
To western Kentucky, where my parents were born.
And there's a backwards old town that's often remembered.
So many times that my memories are worn.

And Daddy won't you take me back to Muhlenberg county,
Down by the Green River, where Paradise lay.
"Well I'm sorry, my son, but you're too late in askin'."
"Mr. Peabody's coal train has hauled it away."

Well, sometimes we'd travel right down the Green River,
To the abandoned old prison down by Aidrie Hill.
Where the air smelled like snakes: we'd shoot with our pistols,
But empty pop bottles was all we would kill.

And Daddy won't you take me back to Muhlenberg county,
Down by the Green River, where Paradise lay.
"Well I'm sorry, my son, but you're too late in askin'."
"Mr. Peabody's coal train has hauled it away."

Instrumental break.

Then the coal company came, with the world's largest shovel,
And they tortured the timber and stripped all the land.
Well, they dug for their coal till the land was forsaken.
Then they wrote it all down as the progress of man.

And Daddy won't you take me back to Muhlenberg county,
Down by the Green River, where Paradise lay.
"Well I'm sorry, my son, but you're too late in askin'."
"Mr. Peabody's coal train has hauled it away."

When I die, let my ashes float down the Green River.
Let my soul roll on up to the Rochester dam.
I'll be halfway to Heaven with Paradise waitin',
Just five miles away from wherever I am.

And Daddy won't you take me back to Muhlenberg county,
Down by the Green River, where Paradise lay.
"Well I'm sorry, my son, but you're too late in askin'."
"Mr. Peabody's coal train has hauled it away."

(thanks to John Prine)

[ozymandius]

48. G'morning again. Here's the latest.

10:46
Dow 10,340.41 -7.69 (-0.07%)
Nasdaq 2,065.56 -4.74 (-0.23%)
S&P 500 1,185.54 -4.56 (-0.38%)
10-Yr Bond 44.77 -0.12 (-0.27%)
NYSE Volume 525,441,000
Nasdaq Volume 373,397,000

10:30AM: Continuing to trend negative, the indices' advances are stunted by the overall lack of leadership and losses extended by nine of the ten economic sectors. Limiting the bluechip average's decline, however, are earnings-related rises in IBM (IBM 84.22 +1.63) and 3M (MMM 74.22 +1.75). Following yesterday's close, IBM reported Q3 EPS of $1.26 and beat estimates by $0.13; after a 2% rise in after hours trading, investors have sent shares up an additional 2% this morning. As for 3M, the company delivered Q3 EPS of $1.12, surpassing analysts' expectations by $0.04. In addition, 3M announced that an additional $300 mln share repurchase has been approved, which will increases the total repurchase authorization to $2.3 bln for 2006.NYSE Adv/Dec 1054/1806, Nasdaq Adv/Dec 953/1595

[UpInArms]

49. Freight Train heading for Consumers

If they are maintaining that consumers have so far been unaffected by inflation and the PPI has increased at a level not seen in 35 years, we are definitely about to be in a ditch in need of oxen to pull us out.

Report Hints Full Brunt of Energy Costs Not Yet Felt by Consumers

http://www.nytimes.com/2005/10/18/business/18cnd-econ.html?hp&ex=1129694400&en=cb6f1571c976b52b&ei=5094&partner=homepage

Wholesale prices surged at a faster pace than consumer prices last month, the government reported today, indicating that businesses are not passing on the full brunt of the energy price spike to customers.

The producer price index, which measures the prices received by producers of goods and services, jumped 1.9 percent in September, with energy costs up 7.1 percent, the Labor Department reported. Food prices increased 1.4 percent after falling for five straight months. Excluding the volatile energy and food categories, prices were up 0.3 percent.

Compared to September 2004, prices rose 6.9 percent overall and 2.6 percent excluding food and energy.

The latest report follows data released last week showing that consumer prices last month were up 1.2 percent overall and 0.1 percent excluding food and energy. Unlike producer prices, consumer prices include taxes, subsidies and distribution costs.

Economists were expecting a far smaller jump in producer prices - 1.2 percent overall and 0.2 percent excluding food and energy.

Prices rose even faster for raw materials (up 10.2 percent) and goods that are in intermediate stages of production (up 2.5 percent) than they did for finished goods, indicating that businesses are still not passing along the entire increase in their costs to each other and consumers. Economists have struggled to fully explain why that may be happening and whether it can continue for much longer.

...more...

[UpInArms]

50. Liars 'n Crooks Dept: NASD fines Instinet, INET $1.475M for rule violation

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38643.452519838-846504208&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- NASD on Tuesday said it has fined Instinet Group Inc.'s (INGP) Instinet LLC and INET ATS Inc. $1.475 million for rule violations relating to the publication of inaccurate reports on order execution quality, backing away from the firm's posted quotes, failure to report orders, improper "last sale" or trade reporting, supervision and other areas. The firms use automated systems to generate their reports on execution quality, the NASD said, but they failed to reasonably supervise the accuracy of the data generated and reported. The firms neither admitted nor denied the charges, but consented to the entry of NASD's findings and have agreed to get an independent regulatory auditor to conduct a comprehensive audit of their compliance with SEC Rule 11Ac1-5 during 2006. The NASD also said that the Securities and Exchange Commission has separately settled with Instinet and INET for $700,000 for the violations of the same rule as part of a parallel probe.

[UpInArms]

51. Liars 'n Crooks Dept: Staples unit pays $7.4M to settle false claims alleg

Staples unit pays $7.4M to settle false claims allegations

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38643.4481877199-846503596&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

Staples unit pays $7.4M to settle false claims allegations (SPLS) By Carla Mozee
SAN FRANCISCO (MarketWatch) -- The Department of Justice said Tuesday that Staples Inc.'s (SPLS) contract and commercial division has paid the U.S. $7.4 million to settle allegations that it submitted false claims when it sold office supply products manufactured in countries that don't have reciprocal trade agreements with the U.S., including China and Taiwan. The DOJ said the company was required by its contract with the General Services Administration to prevent such products from being offered for sale to U.S. government agencies.

[UpInArms]

66. Liars 'n Crooks Dept: NASD probes Merrill Lynch call centers-source

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T165142Z_01_N18328947_RTRIDST_0_FINANCE-MERRILLLYNCH-NASD-UPDATE-1.XML

NEW YORK, Oct 18 (Reuters) - The National Association of Securities Dealers and Merrill Lynch & Co (MER.N: Quote, Profile, Research) were close to announcing a settlement involving a fine and sanctions for the firm's poor advice to some small investors, a source familiar with the matter said on Tuesday.

The investigation has been underway for some time. The two sides are near a settlement with an undisclosed fine and other sanctions, the source said.

The NASD probe concerns allegations that Merrill failed to supervise some of its employees and that, as a result, brokers at the firm's two call centers in 2000 and 2001 steered some clients into unsuitable investments, the source said.

Call centers generally serve clients with less than $100,000 in assets.

...more...

[UpInArms]

96. Liars 'n Crooks: Humana settles physician dispute, to take charges

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T193940Z_01_N18477972_RTRIDST_0_HEALTH-HUMANA-UPDATE-1.XML

CHICAGO, Oct 18 (Reuters) - Humana Inc.(HUM.N: Quote, Profile, Research) said on Tuesday it has settled a six-year dispute with representatives of more than 700,000 physicians over reimbursement and will make a $40 million payment.

Humana also will pay up to $18 million in legal fees to be determined by the court.

Humana said it would record pretax expenses of about $72 million during the third quarter. After tax, the charge would be $45 million, 27 cents per diluted common share.

<snip>

Banc of America Securities analyst Joseph France said in a research note that he thinks the lawsuit was settled at a fair price and should end Humana's involvement in the class action case.

...more...

[UpInArms]

57. Bush's Panel May Propose Version of Flat Tax in Final Report

http://www.bloomberg.com/apps/news?pid=10000103&sid=aUQB0vv0InFo&refer=us

Oct. 18 (Bloomberg) -- U.S. President George W. Bush's tax advisory panel may recommend a fundamental overhaul of the current system, replacing it with a variation of the flat tax that would abolish most deductions and end levies on investment income.

The panel plans to present Bush with several options for restructuring the tax code, including the creation of a new system that rewards savings, discourages borrowing, stimulates business investment, and simplifies tax filing for individuals, according to panel members and outside experts on whom they relied. The modified flat-tax proposal will be considered and possibly endorsed during the panel's final meeting today, they said.

``I would bet big money'' that panelists will recommend such a plan, said William Gale, a senior fellow at the Brookings Institution, a research group in Washington, who testified before the panel.

<snip>

Individuals living off investments would pay nothing, while wage earners would continue to have taxes withheld from their paychecks; people earning higher salaries would pay higher rates without the benefit of popular deductions, such as breaks for mortgage interest.

The President's Advisory Panel on Federal Tax Reform, formed in January, is due to make its recommendations to the Treasury Department on Nov. 1. Chairman Connie Mack, a former Republican senator from Florida, has said it will offer at least two proposals that the Bush administration can use as a blueprint for a rewrite of the tax code.

...more...

[UpInArms]

61. Bush tax panel to recommend consumption tax

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38643.5161793981-846513267&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- President Bush's advisory panel on tax reform will likely include a recommendation for a modified consumption-oriented tax that would exempt most capital income from taxation. The panel, at its final public meeting, also agreed to recommend a proposal designed to significantly simplify the existing tax system. The panel decided against recommending a value-added tax. The committee must submit its recommendations to the Treasury Department by Nov. 1.

[AnneD]

65. Grandpa, while he was a yellow dog democrat...

had a healthy distrust of ALL politicians. He always said "Anytime they talk about tax reform....hold on to your wallet". How many times have they simplified the code only to have what we have today. The tax code shapes our society. What is the ultimate outcome....those that actually produce and create will be penalized. Those with money will retain money, thus stratifying wealth further more in our country. And those few in the upper middle class will be dropped down via higher tax rates AND fewer deductions. We will become a 2 tier society.
We flirted with socialism during the Great Depression...If wealth stratifies, and we have a depression...we might actually slide into socialism.

[llmart]

71. My Grandpa was a Socialist.....

and we used to have to listen to his warnings about how capitalism was evil. Of course, as teenagers, my siblings and I would roll our eyes whenever he got on his soapbox, but now we're all thinking he was a very wise man.

[UpInArms]

72. The United States now has two economies.

http://www.marketwatch.com/news/story.asp?guid={863aac47-93f8-4600-b400-b23f2a37cc6a}&siteid=mktw&dist=SignInArchive&archive=true¶m=archive&garden=&minisite=

(free registration or try www.bugmenot.com)

One of them suffered a one-two punch of the most destructive hurricanes in U.S. history. The other one didn't.

One of them suffered the largest increase in consumer prices in 25 years. In the other economy, core inflation remained as soft as a lullaby.

One of them saw retail sales fall short of expectations as auto sales collapsed. In the other economy, sales excluding autos were up solidly.

One of the economies saw industrial output fall at the fastest pace in more than 20 years. But if you exclude the impact of the hurricane and the strike against Boeing, output was fine.

In one economy, the Federal Reserve is committed to raising interest rates ever higher to prevent tight labor markets from fueling inflation. In the other economy, consumer confidence is shaken while real wages are falling.

Hurricanes Katrina and Rita made a mess of the economy in September and into October. With the economic data blowing around like so much flotsam and jetsam, Fed officials and investors want to know which economy will emerge.

...more on how Wall Street has no connection with Main Street...

[AnneD]

79. Gee, my favourite topic......

thanks...It is about time Wall St makes the connection.

[UpInArms]

58. Frist in Denial over being investigated on Insider Trading Charges

http://today.reuters.com/news/newsArticle.aspx?type=topNews&storyID=2005-10-18T150546Z_01_ROB854089_RTRUKOC_0_US-CONGRESS-FRIST-PROBE.xml

WASHINGTON (Reuters) - Senate Majority Leader Bill Frist said on Tuesday he was cooperating with federal investigators looking into possible insider stock trading, but he would not say whether he has been subpoenaed in the case.

U.S. prosecutors and the Securities and Exchange Commission are looking into whether Frist's sale this year of shares of hospital operator HCA Inc., co-founded by his family, violated federal laws.

"I am cooperating fully with the inquiry that is under way," said Frist, a Tennessee Republican and possible 2008 presidential candidate. He added, "I acted properly at every point."

The sales were initiated this spring, according to Frist, and completed just days before HCA's stock price fell sharply on a disappointing July 13 profit outlook.

Last week, sources close to the case said the SEC had subpoenaed Frist's records. Asked on Tuesday whether he had been subpoenaed to answer questions, Frist said it was not appropriate to discuss specifics of the investigation.

...more...

[WhiteTara]

106. I hope he gets Martha'd

he needs to see the inside of a prison cell for a lot longer than she did.

[UpInArms]

59. 12:22 EST - here's the nooner

Dow 10,357.46 +9.36 (+0.09%)
Nasdaq 2,071.98 +1.68 (+0.08%)
S&P 500 1,188.07 -2.03 (-0.17%)
10-Yr Bond 4.477 -0.12 (-0.27%)

NYSE Volume 932,111,000
Nasdaq Volume 656,448,000

12:05PM: Fixated upon inflation fears of late, traders found no relief this morning. While a large rise was expected after energy prices soared 7.1% in the month following Hurricane Katrina, Sept. PPI increased a more than expected 1.9% (consensus +1.2%) - more than tripling the Aug. read and rising most sharply since 1990. The core rate, which excludes food and energy and is arguably a more accurate inflation indication, was up 0.3% (consensus +0.2%) over last month's flat read. While one month does not make a trend, the uptick raises modest concerns that broad-based inflationary pressures are building. At the same time, recently released Sept. core CPI data has already shown investors that inflation remains contained at the consumer level, and has perhaps helped to counter today's PPI headlines. Inflation concerns have essentially challenged third quarter earnings reports for the session's spotlight. As usual, about 65% of reporters are beating estimates and have extended some support today; however, an overall lack of leadership leaves the indices vacillating around the unchanged mark, and keeps eight of the ten economic sectors in the red. Technology's 0.3% gain is thus far the session's best, and is driven largely by strength in IBM (IBM 84.01 +1.42) due to its upside earnings report - the tech titan beat estimates by $0.13 per share - delivered after yesterday's bell. Intel's rise (INTC 23.89 +0.43) ahead of its report, due to hit the post-close wires, pairs with IBM in offsetting broad-based selling pressure and particular earnings-induced weakness in Novellus (NVLS 21.50 -3.39). Healthcare has kept its nose above the flat line, pushed largely by the recovered Amgen (AMGN 76.93 +1.53). Wide-spread selling has affected that sector as well, with especial weakness in medical equipment stunting its advance. After Johnson & Johnson (JNJ 63.85 +0.85), which trends negative after reporting EPS a penny ahead of expectations but on light revenues, indicated it's considering alternatives to its Guidant (GDT 64.77 -7.61) acquisition agreement, GDT shares have plunged and weigh heavily upon the sector. Genzyme (GENZ 70.25 +0.93), however, helps offset Guidant's effect within the space after delivering a better than expected Q3 report. With respect to the deluge of upside earners, 3M (MMM 74.86 +2.39), United Technologies (UTX 50.56 -0.55), and Merrill Lynch (MER 61.60 +0.51) are amongst the most notable, but their effects have been somewhat muted by traders' focus upon inflation for the time being. Separately, the session's leading laggard is the Energy sector, off 1.4% alongside declines in energy prices that followed reports that Tropical Storm Wilma's path has headed away from the refinery-rich Gulf Coast.NYSE Adv/Dec 1090/1987, Nasdaq Adv/Dec 1142/1616

[Doctor_J]

60. Excellent Toon today

thanks for that.

[ozymandius]

64. You're welcome. And thanks! n/t

[UpInArms]

62. Gold futures trade under $475

http://www.marketwatch.com/news/story.asp?guid=%7B065900AE%2D70C7%2D44B4%2D878A%2D17EE75EBA089%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Gold prices dulled Tuesday, retreating from the previous session's nearly $5-an-ounce gain to trade under $475 and prompting a broad decline among the metals futures.

"We suspect that the gold market was a little overbought and possibly a little ahead of itself with the sharp gains on Monday, but we suspect that a minor corrective pause will soon give way to a resumption of the upside trend," said Nell Sloane, analyst at NSFutures.com, in daily commentary.

Adding to pressure on gold Tuesday, the dollar tapped a two-year high against the yen, helped by U.S. economic data in support of higher interest rates and a report that showed solid inflows of foreign money into the U.S. See Currencies. See Economic Report.

Against this backdrop, gold for December delivery traded at $474.60 an ounce on the New York Mercantile Exchange, down $2, or 0.4%. It rose a bit more than 1% Monday, finding support from inflation concern brought on by strength in oil prices, but oil futures weakened Tuesday. See Futures Movers.

...more...

Inflation up - gold down. Go figure :shrug:

[ozymandius]

63. lunchtime numbers and blather

12:38
Dow 10,352.90 +4.80 (+0.05%)
Nasdaq 2,070.54 +0.24 (+0.01%)
S&P 500 1,187.78 -2.32 (-0.19%)
10-Yr Bond 44.73 -0.16 (-0.36%)
NYSE Volume 981,733,000
Nasdaq Volume 687,746,000

12:05PM: Fixated upon inflation fears of late, traders found no relief this morning. While a large rise was expected after energy prices soared 7.1% in the month following Hurricane Katrina, Sept. PPI increased a more than expected 1.9% (consensus +1.2%) - more than tripling the Aug. read and rising most sharply since 1990. The core rate, which excludes food and energy and is arguably a more accurate inflation indication, was up 0.3% (consensus +0.2%) over last month's flat read. While one month does not make a trend, the uptick raises modest concerns that broad-based inflationary pressures are building. At the same time, recently released Sept. core CPI data has already shown investors that inflation remains contained at the consumer level, and has perhaps helped to counter today's PPI headlines. Inflation concerns have essentially challenged third quarter earnings reports for the session's spotlight. As usual, about 65% of reporters are beating estimates and have extended some support today; however, an overall lack of leadership leaves the indices vacillating around the unchanged mark, and keeps eight of the ten economic sectors in the red. Technology's 0.3% gain is thus far the session's best, and is driven largely by strength in IBM (IBM 84.01 +1.42) due to its upside earnings report - the tech titan beat estimates by $0.13 per share - delivered after yesterday's bell. Intel's rise (INTC 23.89 +0.43) ahead of its report, due to hit the post-close wires, pairs with IBM in offsetting broad-based selling pressure and particular earnings-induced weakness in Novellus (NVLS 21.50 -3.39). Healthcare has kept its nose above the flat line, pushed largely by the recovered Amgen (AMGN 76.93 +1.53).

[UpInArms]

68. US online help-wanted ads fell in September-survey

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T161358Z_01_N18323925_RTRIDST_0_ECONOMY-JOBS-ONLINE.XML

NEW YORK, Oct 18 (Reuters) - New online help-wanted postings on major U.S.-based Internet job boards fell in September, a private research group said on Tuesday.

The Conference Board said its measure of online help-wanted ad volume slipped to 2.04 million last month from 2.13 million in August.

"The September data indicate a general weakening in the job picture nationwide -- a trend we were seeing before the recent hurricanes," Ken Goldstein, labor economist at The Conference Board said in a statement.

September's data include the number of first-time online job advertisements posted each day and reflect the initial impact of Hurricanes Katrina and Rita which hit the U.S. Gulf Coast on Aug. 29 and Sept. 24, respectively, the board said.

The largest decline in online job postings was in the South Atlantic region, which includes East Coast states from Florida north to Delaware, followed by the West South Central Region, which includes Louisiana, Texas, Arkansas and Oklahoma.

...more...

[ozymandius]

70. diary: Inflation Now a Serious Problem; Threatens Economy

from Bondad

The news on wholesale prices followed a report Friday that consumer prices had risen by 1.2 percent in September, the biggest one-month increase in a quarter-century as gasoline prices at the pump climbed by a record 17.9 percent.

While the core rate of inflation at the consumer level was well-behaved, rising by a tiny 0.1 percent, the worry is that the sizable increases in energy will soon begin to spill over into more widespread inflation pressures.

Notice the emphasis on energy prices? Energy goes into everything we do. Right now - while typing this -- I'm consuming energy. There is no way to get around using. That's why it's so important - and why energy inflation is so deadly.

The news on wholesale prices followed a report Friday that consumer prices had risen by 1.2 percent in September, the biggest one-month increase in a quarter-century as gasoline prices at the pump climbed by a record 17.9 percent.

While the core rate of inflation at the consumer level was well-behaved, rising by a tiny 0.1 percent, the worry is that the sizable increases in energy will soon begin to spill over into more widespread inflation pressures.

-cut-

And the core Consumer Price Index number is too low. As I wrote yesterday It does not include the actual appreciation of homes nor does it have any measure fro health insurance. These are two of the largest expenses facing the US consumer - and they are not included in the core inflation measure.

How do you stop inflation? Raise interest rates. Considering the US economy's over-reliance on housing for financing consumer purchases and job creation, higher interest rates will absolutely kill this expansion.

more...

[UpInArms]

76. here's some more regarding how the CPI doesn't measure

correctly:

from:

http://www.marketwatch.com/news/print_story.asp?print=1&guid={863AAC47-93F8-4600-B400-B23F2A37CC6A}&siteid=mktw

excerpt:

U.S. financial markets initially rallied Friday on the mild core inflation numbers. But several economists pointed out that the tame core rate seemed unbelievable.

"This appearance of tame core inflation will not fool the FOMC into pausing" at the Nov. 1 meeting, said Stuart Hoffman, chief economist for PNC Financial.

For one thing, the Labor Department said hotel prices fell a record 2.5% in September. The decline "simply defies reality," said Stephen Stanley, chief economist for RBS Greenwich Capital. "Every anecdotal report over the last six months on the topic indicates that hotels are full and rates are rising."

The CPI report also showed that the cost of owning a home rose 0.1% in September. "Need I detail how silly this is?" said Barry Ritholtz, chief market strategist for Maxim Group. "Home prices are up dramatically, and recently we see that mortgage rates have ticked up significantly."

The Fed is well aware that the CPI has a significant conceptual problem with accurately measuring housing costs, which is one of the main reasons it prefers to look at a separate inflation gauge published by the Commerce Department known as the personal consumption expenditure price index.

These are no small matters, because shelter accounts for 33% of the CPI, far more than gasoline's 4% share.

Statistical anomalies aside, core inflation remains "downright cool," said Leslie Preston, an economist for CIBC World Markets.

...more...

[ozymandius]

84. Even anecdotal evidence rings truer than dry statistical data.

As I add more anecdotal evidence to the contrary of these "official" findings - how often do we read about "surprised" economists? Might these be the same ones who cooked up a batch of numbers on this laughable data to forecast future performance?

[AnneD]

87. I had always heard (common wisdom) that

Wall St reflected our economy going foreward....but honestly, I haven't seen that in a long time. I don't know why. Is it funny numbers, 2 sets of books, or what? Things have not jived since 1 1/2 years after Bush the unelected took office. There is such an increasing disconnect between the picture they paint and what I know.
The most blatent disconnects have been the refining and gas out put after Rita and Katrina and the shortage of fuel and the price increases. To not include food and fuel in the Core Inflation just does not give an accurate picture.

[UpInArms]

73. 1:25 EST and the joy and love have gone

Dow 10,314.96 -33.14 (-0.32%)
Nasdaq 2,063.12 -7.18 (-0.35%)
S&P 500 1,182.84 -7.26 (-0.61%)
10-Yr Bond 4.481 -0.08 (-0.18%)

NYSE Volume 1,221,147,000
Nasdaq Volume 828,932,000

1:00PM: The indices dig deeper as the Energy sector (-2.6%) suffers further selling pressure...

The Dow's 30 constituents are split, with half posting gains and the others trending lower. Of the laggards, General Motors (GM 29.42 -0.67), Altria (MO 73.85 -1.11), and Exxon Mobil (XOM 57.07 -1.77) top the list. While XOM's decline is correlated with crude's 0.7% slip upon reports that Tropical Storm Wilma has veered away from the refinery-rich Gulf Coast and the subsequent cue energy traders have taken in locking in more of the sector's year-to-date profit, the former two issues are heading south after recent run-ups. General Motors' shares soared yesterday after the auto giant announced its healthcare agreement with the United Auto Workers and the possibility of a GMAC sale, while Altria enjoyed buying attraction following a favorable court decision for the tobacco industry.NYSE Adv/Dec 1226/1911, Nasdaq Adv/Dec 1183/1655

[UpInArms]

82. Tech job cuts up 18.8% so far in '05

'Job creation simply has not materialized,' says John Challenger

http://www.computerworld.com/careertopics/careers/labor/story/0,10801,105516,00.html

OCTOBER 18, 2005 (COMPUTERWORLD) - Technology job cuts for the first three quarters of the year were up 18.8% over the same period in 2004, according to Challenger, Gray & Christmas Inc., a global outplacement company.

For the third quarter of 2005, U.S. businesses cut 41,439 technology jobs, an increase of 4.3% over the 39,720 tech jobs cut in the previous quarter, according to the Chicago-based company (see "Tech job cuts show Q2 dip, study says"). For the first three quarters of the year, tech job cuts are up 18.8% over the same period in 2004, with a total of 140,696 jobs lost. That compares with 118,427 tech jobs lost in the first three-quarters of last year.

Unlike other U.S. industries that have seen cuts -- even as new jobs were being added -- the tech segment has lost jobs without a similar rate of hiring to offset the cuts, John Challenger, CEO of Challenger, Gray & Christmas, said in a statement.

"The gradual slowdown in job cuts would be more encouraging if it were complemented by a rise in hiring, but job creation simply has not materialized," Challenger said. "The industry may indeed be recovering when it comes to revenue, profits and earnings, but certainly not when it comes to employment."

...more...

These people are so funny! They actually believe the lies that are spewed forth about job creation and they sit and scratch their arses when there are no jobs. They don't get that the BOL now makes a job up for every child that is born - you just come on into this country now squirming, squealing and working!

[UpInArms]

83. LAFF for the Day: NYSE: SEC should relax rules for derivatives

:rofl:

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38643.6049190857-846526008&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- The Securities and Exchange Commission should relax capital rules and margin rules to accomodate derivatives business that could come back to the U.S., the New York Stock Exchange's chief economist told a Senate Banking subcommittee Tuesday. NYSE Chief Economist Paul Bennett also said in prepared testimony the exchange and other regulators are working on a rule about portfolio margining. In separate testimony, New York Mercantile Exchange President James Newsome told senators a recent bill directing a federal study of natural gas trading on the NYMEX would result in higher prices of that commodity.

[ozymandius]

85. 2:39 numbers and 2pm blather

Dow 10,322.88 -25.22 (-0.24%)
Nasdaq 2,065.23 -5.07 (-0.24%)
S&P 500 1,183.31 -6.79 (-0.57%)
10-Yr Bond 44.83 -0.06 (-0.13%)
NYSE Volume 1,535,576,000
Nasdaq Volume 1,047,570,000

2:00PM: The indices sit at levels recently hit, continuing to be pressured by across-the-board selling that leaves eight sectors submerged and that has barred the emergence of any real leadership. To that end, Tech, which had offered the session's best gain, has nearly fully pared its session-high and currently is up just 0.1%. Healthcare has moved into the front-running slot, yet its gain is a modest 0.2%. The 2.3% crude as shave today has sent the Energy sector sliding by about as much, but has done nothing to help to pump-price sensitive Consumer Discretionary sector (-1.1%). General Motors' (GM) decline serves a strong drag on the sector, but its standing reflects that of the broader market. Of its 88 constituents, only ten maintain gains - none of which have grown to 1.0%. NYSE Adv/Dec 942/2233, Nasdaq Adv/Dec 968/1920

[UpInArms]

90. 3:18 EST late day "rally" in progress

Dow 10,318.64 -29.46 (-0.28%)
Nasdaq 2,061.03 -9.27 (-0.45%)
S&P 500 1,181.84 -8.26 (-0.69%)
10-Yr Bond 4.481 -0.08 (-0.18%)

NYSE Volume 1,746,906,000
Nasdaq Volume 1,195,301,000

3:00PM: The major averages carve out new session-lows as do each of the eight lagging sectors, but little has changed as the market heads into the final trading hour. After the close, traders will have a number of Q3 earnings reports with which to contend. Amongst some of those likely to garner considerable attention are Intel (INTC), Yahoo (YHOO), Motorola (MOT), Kraft Foods (KFT), Teradyne (TER), Linear Technology Corp. (LLTC), and Cheesecake Factory (CAKE). Ahead of tomorrow's bell, the likes of Abbott Labs (ABT), Altria (MO), Bank of America (BAC), Eastman Kodak (EK) EMC Corp. (EMC), Honeywell (HON), JP Morgan Chase (JPM), and McDonald's (MCD) are slated to report earnings.NYSE Adv/Dec 993/2212, Nasdaq Adv/Dec 953/1982

2:30PM: Although the stock market's static stance leaves it in the red, the Treasury market has held solidly positive throughout the session. While the morning's PPI report, which refelected the highest jump in wholesale prices in 15 years, was not good news for either market, the bond market appears to have had anticipated the large increase. Further, as the data fanned inflation fears, it, at the same time, gives traders further reason to expect the Fed to continue fighting inflation with its rate-hike tightening cycle. To that end, the 30-year note, which is the most sensitive to inflation, is up eight ticks and presently yielding 4.70%. The benchmark 10-year, meanwhile, is up three ticks and offering 4.48%.NYSE Adv/Dec 1028/2156, Nasdaq Adv/Dec 1016/1881

[UpInArms]

95. US HUD- Fannie lobbied through partnership offices

(gee, and I thought that they were supposed to work for the common good and housing and all that :shrug: - yet another bunch of thieving liars and crooks :grr: )

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-18T192834Z_01_N18341303_RTRIDST_0_FINANCIAL-FANNIEMAE.XML

WASHINGTON, Oct 18 (Reuters) - Mortgage finance company Fannie Mae (FNM.N: Quote, Profile, Research) used its regional partnership offices for lobbying rather than affordable housing initiatives alone, the U.S. Housing and Urban Development Department said on Tuesday.

HUD has not released a report of its review of Fannie's partnership offices, which the company is allowed to open under its congressional charter to carry out affordable housing activities.

But in a statement, HUD said the activities of the offices were not confined to affordable housing initiatives.

"Rather, a central purpose of the Partnership Offices was to engage in activities that were primarily designed to obtain access to or influence members of Congress," HUD said.

Fannie Mae spokesman Brian Faith said the company was refocusing the partnership offices, now called Community Business Centers, to better align activities with the needs of customers and business partners.

...more...

[AnneD]

99. How quaint, UIA

I bet you thought the Labor Departmant cared about the average worker, the EPA actually protected the enviroment, and the Treasury actually had money:rofl: I'm sorry I crack myself up sometimes.

[UpInArms]

101. oh my - you are so right, AnneD!

I should have checked the quaint drawer where a copy of the Constitution and the Geneva Convention now lives.

You crack me up, too!

:rofl: :rofl:

[AnneD]

107. Right back atcha kid...

sometimes I think we are twins seperated at birth or we went to the same economics class.

[UpInArms]

97. Who dumped 24.5 million shares of Exxon?

Exxon Mobil dragged down by $1.4B trade

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38643.6552095486-846532863&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Exxon Mobil shares fell as much as 4% Tuesday after a block grade of 24.5 million shares at $57 a share went through the market at about 1.00 p.m. Eastern Time. The trade, worth $1.4 billion, exceeded the stock's average daily volume of 19.6 million shares. By late afternoon, more than 61 million Exxon shares had changed hands. The stock was last down 3.9% at $56.55. The online edition of the Wall Street Journal said the trade came from the commodities trading desk at Goldman Sachs although there was no indication of who the seller was.

[Capn Sunshine]

108. Big derivative trade

XOM was the oilco sold to cover the constructive part; there was a corp bond trade which needed hedging is the excuse , errrr story.

But get this: it has something to do with the HAL station according to the overtly paranoid meth users who run options at PAC Ex.

[UpInArms]

110. Okay, color me stupid

:wtf:

But get this: it has something to do with the HAL station according to the overtly paranoid meth users who run options at PAC Ex.

Tell me you jest!

[UpInArms]

102. closing numbers - hit a pothole and did not snapback

Dow 10,285.26 -62.84 (-0.61%)
Nasdaq 2,056.00 -14.30 (-0.69%)
S&P 500 1,178.14 -11.96 (-1.00%)
10-Yr Bond 4.481 -0.08 (-0.18%)

NYSE Volume 2,151,537,000
Nasdaq Volume 1,460,111,000

blather to follow

[ozymandius]

104. blather

Close Dow -62.84 at 10285.26, S&P -11.96 at 1178.14, Nasdaq -14.30 at 2056.00:

Inflation concerns were fed this morning, catalyzing a downbeat day for equities that hindered the emergence of any leadership and sustained the indices relatively static stance below the unchanged mark. A post-lunch plunge in Exxon Mobil (XOM 56.31 -2.55), reportedly the result of a 24 mln share block trade initiated by Goldman Sachs for unknown reasons, led to a cascade of events that shoved the market lower. While the market anticipated a sizeable jump in the latest PPI read, due largely to the fact that energy prices soared 7.1% in the month trailing Katrina, total Sept. PPI rose 1.9% (consensus +1.2%) - reflecting a 6.9% year-over-year rise that was the sharpest in 15 years - and more than tripled the Aug. read. The core rate, which is arguably a more accurate inflation indication, increased 0.3% (consensus +0.2%); core PPI in Aug. was flat. Although one month of data does not signify a trend, the gain raises some concerns that broad-based inflationary pressures are building. However, the Sept. core CPI data that was delivered last week had already indicated that inflation remains in check at the consumer level, a realization that had perhaps helped temper today's PPI headlines and somewhat limit the broad-based selling that afflicted stocks. It was the fresh round of third quarter earnings reports that offered the strongest support today, but inflation concerns competed with the earnings front for the session's spotlight and took traders' attention off the fact that, thus far, roughly 65% of companies have beat analysts' estimates. To that end, an upside report delivered by IBM (IBM 83.48 +0.89), following yesterday's close, kept the Technology sector (-0.2%) trading on positive territory throughout the session, and earnings anticipation led to a respectable rise in Intel (INTC 24.08 +0.62) ahead of its evening report. Nonetheless, semiconductors extended a 1.2% loss that added to earnings-induced weakness in Novellus (NVLS 21.80 -3.09) to ultimately expunge the sector's gain just ahead of the bell. Healthcare also managed to keep its nose above the flat line during most of the session, but broad-based weakness in pharmaceuticals and particular weakness in medical equipment submerged the sector by session-end. Specifically, Guidant (GDT 64.13 -8.25) plummeted over 11% after Johnson & Johnson (JNJ 63.97 -0.03) - which posted a loss after delivering light revenues despite beating EPS estimates by a penny - indicated that it's considering alternatives to its Guidant acquisition agreement. Boston Scientific (BSX 22.95 -0.62) was an additional sore spot, off about 2.5% upon reports that the FDA instructed doctors to cease use of the company's Enteryx device; this counters the company's prior attribution of Enteryx problems to individual doctors'. Genzyme (GENZ 69.45 +0.13) stood as a bright spot within the within the space, following its better than expected Q3 report, but its gain faded late in the day and could not combat selling pressure that left the sector with a 0.2% loss. The list of upside earners also included Dow components 3M (MMM 74.65 +2.18) and United Technologies (UTX 50.00 -1.11), but their effects were muted by traders' focus upon inflation for the time being. While each sector closed in the red, Energy's 4.4% decline not only marked it the session's worst performer and erased another chunk of its market-best year-to-date gain, but also yanked the broader market down with it. While the aforementioned plunge in XOM shares exacerbated the sector's standing, a significant pullback in the price of crude sent the sector on a southward path from the early going. Reports that Tropical Storm Wilma veered from a track targeting the refinery-rich Gulf Coast induced the crude action, but, in the end, did nothing to help the overall market today. NYSE Adv/Dec 918/2338, Nasdaq Adv/Dec 952/2028

[54anickel]

109. Oh my, just had my first chance to check in on the numbers for the day.

Seems 10,200 is replacing 10,500 as the "place to hang around" these days for the DOW. Bad numbers on decent volume again.

Been hectic around here again lately so haven't had much time to hang out "witcha-all" these days. Thanks for keeping up on the latest!

Time to head back to LBN to see what ol' WhistleAss has been up to today. :hi: