STOCK MARKET WATCH, Friday 21 October

[ozymandius]

Friday October 21, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 93 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1765 DAYS
WHERE'S OSAMA BIN-LADEN? 1464 DAYS
DAYS SINCE ENRON COLLAPSE = 1426
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 20, 2005

Dow... 10,281.10 -133.03 (-1.28%)
Nasdaq... 2,068.11 -23.13 (-1.11%)
S&P 500... 1,177.80 -17.96 (-1.50%)
10-Yr Bond... 4.46% -0.00 (-0.09%)
Gold future... 463.20 -2.60 (-0.56%)






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 Jim Puplava

STILL CHEAP AFTER ALL THESE YEARS

The time to buy a stock is when the short-term owners have finished their selling, and the time to sell a stock is often when short-term owners have finished their buying.

- John Templeton

Energy prices and energy stocks rose rapidly in the wake of Katrina and Rita. Short-term speculators and the momentum crowd moved into the market, pushing up prices at an accelerating pace. This was the “hot money” crowd looking to make a fast buck. It was money that was looking for $75-$85 oil. After rising to $69.98 on September 1, oil prices retreated and have fallen steadily since that time. Disappointed, the speculative money has now been exiting the market looking for the next trade. Predictably, the result has been a fall in prices. Many on Wall Street claim energy stocks are overvalued. Some analysts believe the bull market in commodities is over, while others believe the energy market has made a top. I disagree. Yes, demand has softened; yes, prices have retreated, and yes, the economy is slowing down.

However, demand globally is still growing and the demand/supply balance remains decidedly fragile. There is very little slack left in the energy markets. There is very little room for weather, geopolitical uncertainties or any other form of supply shock. Demand has fallen, but that is normal this time of the year. We are in the “soft shoulder” months of the year when we transition from warm to colder temperatures. The summer driving has ended, the family vacations are over, the motor home is parked in the garage and the country is experiencing milder temperatures. The result is less demand for energy. This is temporary. Colder temperatures are directly in front of us and most weather experts from the National Weather Service to the Farmers Almanac are calling for colder than normal temperatures this winter.

-cut-

In contrast to growing demand, non-OPEC production is expected to remain weak with the loss of production in the Gulf of Mexico, production declines in the North Sea, and a slowdown in Russian oil production. Spare production capacity is at a three-decade low. The only one left with spare capacity is Saudi Arabia. While OPEC production is flat out, OECD oil inventories have not increased significantly due to increasing demand. The net result is at a time when demand is growing faster than supply, there is no spare capacity left in the system to handle a loss of production in the Gulf of Mexico, bad winter weather or geopolitical risks in Iran, Iraq, Nigeria, or Venezuela. We may be heading into "The Perfect Energy Storm.” Demand is growing, supply is falling, and inventories remain tight. There is no margin for error. To avoid a crisis, everything must go well.

This brings me back to the energy markets. The pullback in energy may be the lull before the storm. I don’t believe the energy market has topped out or that energy stocks are overvalued. Nor do I believe that inflation is contained. Look at any economic report—the ISM price component, the CPI, PPI, or the trade deficit price index—and you'll see inflation is on the rise. Stagflation has arrived and will be with us a long, long time. The world is awash with liquidity. According to Grant’s Interest Rate Observer “…global liquidity (defined as the U.S. monetary base plus central bank holdings of foreign exchange, mainly dollars) grew by 20% in both 2003 and 2004. It was the fastest two years of growth since 1975.” We are living in an inflationary age and it is getting harder to hide it.

more...

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

[Kenneth ken]

7. Why I Suck As A Capitalist

First, thanks for starting up this thread every market day. I do peruse it every day, though I think this is only the second time I've posted on one of these threads. :hi:

Second, cute cartoon, may it be a harbinger of the not-too-distant future. :)

And now on to capitalism. From a dispassionate view, it makes sense to me to be invested in energy markets, and one probably ought to have been more than a year ago, with a view toward holding onto them for at least another couple years. But as a real person, it just seems ghoulish; the idea of trying to maximize personal profit on the pain and burdens of others.

As an investor, the more the cost of energy goes up, the more profit to be made, but conversely, the higher the cost of energy the more hardship it creates for many, many people. But that's pretty much capitalism, at least as practiced in the US, in a nutshell. Cut jobs, depress wages, stocks soar!

So, of course, I'm not invested in energy. Money markets, and my mattress for me, until I figure out something that might be reasonably safe, somewhat profitable, and not too ghoulish.

[ozymandius]

9. Good luck.

Social equity, enviro-friendly funds that provide a decent return are difficult to find. Not impossible. Just difficult.

[AnneD]

24. Morning Marketeers,

:donut: Ken, I am a fiscal conservative and social liberal. I believe in getting the most for my money but I like to use my money for activities that benefit mankind.
How did you get your money. Bet you worked. You traded your time for money. Instead of going out, killing a bear and dragging it back to the cave, you went out and earned a paycheck. We all have a certain amount of time in our life. Everyone has varying amounts. It cannot be bought or sold. Once you use it, it's gone.
Now when you look upon that money as compensation for your time-it puts a different perspective on things. There is nothing wrong with investing that money-you are just being more efficient with your time (you are stretching that bear meat further).
Now here is the wonderful thing. If you invest and earn profit, you not only meet your needs now, but for the future when you cannot go bear hunting. If you earn enough, you don't have to hunt...you can sit in your cave and draw pictures all day long. You can even give some of that bear meat to that elder woman that lost her husband, or the mother and children that lost their dad on that last hunting trip. Hope that helps with some of the guilt....
Happy hunting, and watch out for the bears....

[feminazi]

84. anne, i like that explanation

i have some of the same guilt feelings as ken.

:dilemma:

[bemildred]

36. "maximize personal profit on the pain and burdens of others"

Yes, you will make a lousy Capitalist.
Good for you.

[ozymandius]

2. Crude Oil Prices Dip Below $60 a Barrel

VIENNA, Austria - Crude oil futures briefly dipped below $60 a barrel Friday, as supply concerns eased on signs of adequate fuel stocks in the United States, the world's largest consumer.

Prices for related products — gasoline, heating oil and natural gas — were mostly steady, further indicating that worries about short-term shortfalls were easing.

Light, sweet crude for December delivery fell as low as $59.65 a barrel in electronic trading on the New York Mercantile Exchange before recovering to $60.07, up 5 cents by midday in Europe.

more

[UpInArms]

35. Dec Crude @ $59.55 bbl - NatGas @ $12.74

10:03am 10/21/05 DEC CRUDE FALLS 47C TO $59.55/BRL IN EARLY NY TRADE

10:03am 10/21/05 NOV NATURAL GAS DROPS 23.7C, OR 1.8%, TO $12.74/MLN BTUS

[54anickel]

47. What was it Capn Sunshine was speculating last night about a large

oil trader with strong convictions going short? Or did I misunderstand that post...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1864014#1865871

[UpInArms]

50. Dec Crude @ $59.40 gal - NatGas @ $12.80 mln buts

12:04pm 10/21/05 DEC CRUDE FALLS 62C TO $59.40/BRL AFTER 3-MO LOW OF $59.10

12:04pm 10/21/05 NOV NATURAL GAS DOWN 17.7C, OR 1.4%, AT $12.80/MLN BTUS

12:04pm 10/21/05 NOV UNLEADED GAS FALLS 0.5%; NOV HEATING OIL DOWN 1.9%

[UpInArms]

67. Few natgas utilities hurt by nonpayment-Citigroup

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T173006Z_01_N21627603_RTRIDST_0_UTILITIES-CITIGROUP-STUDY.XML

NEW YORK, Oct 21 (Reuters) - Most of the 42 U.S. natural gas utilities examined in a Citigroup study should see little effect from bad debt caused by nonpayment from their customers, analyst Faisel Khan said in a research note on Friday.

Despite soaring natural gas costs and expectations of similarly high heating bills this winter, Khan said that the utilities' earnings should only be reduced an average of 2 percent for 2006 due to the bad debt.

"The relatively mild impact to earnings from higher gas prices is generally a result of utilities obtaining rate relief ... in recent years," Khan said in the note. "Without these mechanisms, the impact to earnings would be more severe."

He said that federal and state assistance programs have also dampened the effect of bad debt expense.

...more...

Isn't it a bit early to be so optimistic and cheery? Winter is not even here!

[UpInArms]

73. Dec Crude closes @ $60.63 bbl - Nov NatGas @ $12.872 mln btus

2:59pm 10/21/05 NOV NATURAL GAS ENDS AT $12.872/MLN BTUS, DOWN 0.8% ON DAY

2:59pm 10/21/05 NOV NATURAL GAS ENDS THE WEEK 34.7C, OR 2.6%, LOWER

2:57pm 10/21/05 DEC CRUDE CLOSES AT $60.63/BRL, UP 61C, OR 1% FOR THE DAY

2:57pm 10/21/05 DEC CRUDE CLOSES DOWN $1.63, OR 2.2%, FOR THE WEEK

[UpInArms]

78. Daily Gulf oil, natural-gas output slows ahead of Wilma

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38646.6227025579-847079774&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Production in the Gulf declined Friday with some facilities closing down ahead of Hurricane Wilma and many still recovering from Hurricanes Katrina and Rita. Nearly 66% of daily oil production and over 53% of daily natural-output in the region was offline, according to the U.S. Minerals Management Service on Friday. That's a deterioration from the almost 65% of daily oil production and 52% of daily natural-gas output that was offline on Thursday.

[ozymandius]

82. Oil gets boost as Wilma halts recovery

NEW YORK (Reuters) - Oil prices got a boost on Friday, rising from a three-month low as powerful Hurricane Wilma showed signs of hindering the recovery of oil operations in the storm-battered Gulf of Mexico.

"There have been signals within the industry that mobile rigs operating in areas that might be in the way of Wilma are moving out of the way," said William Ferer, president of investment management firm W. H. Reeves and Co.

-cut-

The boost came after the U.S. Minerals Management Service reported the offshore oil and gas industry's recovery from Katrina and Rita had stalled -- reinforcing concerns that Hurricane Wilma could disrupt operations.

Some 65.8 percent of the Gulf of Mexico's 1.5 million barrels of daily crude production capacity was shut Friday, a larger amount than the 64.5 percent reported Thursday, the MMS said in its daily report.

more

[ozymandius]

3. Key Economic Indicator Declines Sharply

WASHINGTON - An important gauge of future economic activity declined sharply in September as fallout from the Gulf Coast hurricanes continued to batter the U.S. The toll on jobs lost from the storms rose to nearly a half-million.

The 0.7 percent drop in the Index of Leading Economic Indicators, reported Thursday by the Conference Board, was bigger than expected. The gauge now has fallen three straight months for the first time since the recession year of 2001.

One rule of thumb says three monthly declines in a row could signal an impending recession. But analysts said this time the index was merely flashing signs of slower growth.

-cut-

Many analysts believe that growth during the last half of this year will slow by as much as one percentage point because of the hurricanes. The storm caused heavy job losses along the Gulf Coast as well as widespread shutdowns of refineries and oil platforms. Oil prices surged briefly above $70 per barrel while pump prices at gasoline stations climbed above $3 per gallon.

more

[ozymandius]

4. topical redux: Yet another sign of inflation ahead

NEW YORK – In a worrisome sign, inflation is starting to ripple through the US economy in the form of higher prices for products that businesses use to make things.

Prices for aluminum, steel, paper, plywood, and plastic resins are now ticking upward. Although it's not definite that consumers will ultimately pay more for final products containing such materials, at least some of these price hikes are likely to end up on price tags in the months ahead, primarily because the economy is running closer to capacity and because manufacturers appear to have more leeway to raise prices.

-cut-

"The inflation number ensures the Fed will keep tightening and implies slower growth next year," says Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Fla. "These are pretty scary numbers."

more...

http://www.csmonitor.com/2005/1019/p02s01-usec.html

[ozymandius]

5. U.S.: Consumers Are Finally Shifting Into Lower Gear

Since this economic upturn began almost four years ago, the consumer has powered the gains in demand. But now this Energizer Bunny looks to be slowing down. That's not necessarily a bad thing, since the business sector and the government's hurricane-rebuilding effort will pick up much of the slack, and a spending pause will give shoppers time to pare down debt loads and add to savings. But considering that household buying accounts for more than two-thirds of real gross domestic product, any turn in this sector changes the direction of the overall economy as well.

-cut-

This is no temporary downshift. Higher fuel prices aren't going away, and the growing fear is that they are seeping into the prices of other goods and services. The Fed seems intent on raising short-term rates further, and inflation worries in the bond market are pushing up long rates, too. All this will put a strain on households, especially low-income families, at the same time that huge heating bills hit monthly budgets this winter.

Consumers will no longer be able to rely on the same supports that had propped up their spending through much of this expansion. Instead, gains in demand will depend even more crucially on the performance of the labor markets and how workers perceive their own job security. Real consumer spending has grown at nearly a 4% annual rate for the past two years. But for the end of 2005 and into early 2006, the pace will probably ease to about 3%. A slowdown to that level is no disaster, but it suggests that retailers could be disappointed during the holiday shopping season and into the new year.

THE KEY WILL BE THE LABOR MARKETS. They still look to be in good shape. Because of work disruptions from Hurricanes Katrina and Rita, payrolls fell by 35,000 in September. But that was far fewer than what economists had expected, perhaps because many large companies continued to pay their workers even if facilities were closed. The Labor Dept. counts workers as employed if they are receiving a paycheck.

more...

[AnneD]

29. Ozy

does that mean if it keeps dropping in Nov, Dec, Jan, and Feb we can finally call it a recession....or are we going to have more 'suprised' economists.:eyes: Just exactly how much does it cost to buy a clue on Wall St.

[jamesinca]

6. Good morning Ozy

10,281 is less than 10,578. Why invest my Social Security in the market again? If George is going to push that plan and have it accepted by the public, he better get the market doing a lot better than it is. I will admit, Clinton followed Reagan and Bush so he had an easy time of looking good financially. George followed Clinton so he is not having as easy of a time. LOL.

Your work is much appreciated keep it up.

[ozymandius]

8. Good morning James.

As the bumper sticker saying goes: "Another Bush. Another Recession." Small wonder why that Social Security piratization plan is dead, eh?

Thanks for checking in.

Ozy :hi:

[UpInArms]

10. daily dollar watch

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

Last trade 89.66 Change -0.25 (-0.28%)

Dollar Extends Slide as Leading Indicators Fall for Third Month

http://www.dailyfx.com/index.php?option=com_content&task=view&id=4336&Itemid=39

The dollar extended its losses today as the greenback continued to trade between a 1.1875-1.2125 trading range against the dollar. It will be interesting to see if the recent trend of lower lows and lower highs will remain the prevailing theme in the EURUSD. If that is the case, we could see the currency pair’s rally exhaust around the 1.2050 level. Economic data released from the US today was very mixed – leading indicators dropped for the third consecutive month as weaker confidence, higher jobless claims and rising energy prices weighed on the outlook for the overall economy. The Conference Board even admitted, “we could be in for slower economic growth through the end of the year." The Philly Fed index however painted a different picture. The index jumped from 2.2 to 17.3, beating the market’s expectation of 10.0 with across the board improvements in all of the report’s underlying components. Taking a more closer look at today’s price action, the push higher in the EURUSD did not occur until the late afternoon session when stops were triggered at 1.20 and the stock market took a big tumble later in the day. With no significant economic releases expected tomorrow, there may not be meaningful catalyst to push the dollar lower. Only consumer confidence is worth watching but at this point, a weaker reading is all but expected.

...more...

No Reports today.

[UpInArms]

71. Critics fear currency report will spare Beijing

http://www.marketwatch.com/news/story.asp?guid=%7B575E6ABB%2D1281%2D4FBA%2D8432%2DAB984F914434%7D&siteid=mktw

WASHINGTON (MarketWatch) - Critics of China's exchange rate policy are expressing doubts the Bush administration will name Beijing as a currency manipulator when the Treasury Department releases a study of foreign exchange practices next month.

The doubts come as President Bush prepares for a Nov. 19 and 20 trip to China in which economic and security issues are certain to figure. Following Treasury Secretary John Snow's own trip to China this week and late last week, labor and manufacturing groups are worried the U.S. will give Beijing a pass in the report to Congress.

"Are they going to find guilty of currency manipulation?" asked Bob Baugh of the AFL-CIO's industrial union council. "I'm damn skeptical."

Snow visited China to discuss the economy with top officials and to tour parts of the country. The trip was seen as a critical information-gathering mission for the closely watched currency report, which is expected as early as the first week in November. The U.S. could take retaliatory action if China is found to be manipulating the value of its currency, the yuan.

But to the dismay of labor and other interests, Snow used the trip more to nudge China to open up its financial system than to press for further flexibility in the value of the yuan.

...more...

[UpInArms]

11. Refco probe widens, fallout spreads

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=businessNews&storyID=uri:2005-10-21T032658Z_01_FOR112359_RTRUKOC_0_US-FINANCIAL-REFCO.xml

WASHINGTON/NEW YORK (Reuters) - The federal investigation into Refco Inc. is expanding further, sources familiar with the situation said on Thursday, as investors and regulators around the world survey the damage from the big commodities brokerage's descent into bankruptcy.

Federal investigators are moving beyond their probe into Chief Executive Phillip Bennett, sources familiar with the situation said on Thursday, and are now looking at auditors, underwriters, lawyers and former Bennett subordinates.

Bennett, who last week was charged with securities fraud, also is being investigated for further wrongdoing, sources said.

The fallout from Refco (RFXCQ.PK: Quote, Profile, Research) is spreading internationally. Austria's finance minister on Thursday questioned why Austrian bank BAWAG loaned Bennett 350 million euros, and in Venezuela, securities authorities are investigating local firms' exposure to the broker.

In the United States, a former customer of Refco -- Liberty Corner Capital Strategies LLC -- said it is not a target of the criminal investigation. Liberty Corner faces at least one investor lawsuit accusing it of being a willing participant in Refco transactions meant to mislead investors.

...more...

[UpInArms]

13. Austria's BAWAG says loan to Refco's Bennett legal

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-20T203300Z_01_L202995_RTRIDST_0_FINANCIAL-REFCO-BAWAG-BOARD-UPDATE-1.XML

VIENNA, Oct 20 (Reuters) - The supervisory board chairman of Austrian bank BAWAG P.S.K. said on Thursday a 350 million-euro ($419 million) loan to former Refco Inc. Chief Executive Phillip Bennett, made on the day he was suspended, was granted in line with the country's banking laws.

"We could not find any legal violations," said Guenter Weninger, finance chief of BAWAG's owner, the Austrian trade union federation, and chairman of BAWAG's supervisory board, after an emergency board meeting in Vienna.

BAWAG, Austria's fourth-largest bank, paid the 350 million euro loan to Refco Group Holding, a company controlled by Bennett, on Oct. 10, the day he was suspended for hiding bad debt worth $430 million.

Bennett was arrested and charged with securities fraud the following day.

Weninger said the bank tried to stop the transfer when it learned that Bennett had been suspended, but it was too late.

"The loan was paid. Two or three hours later, when a Reuters report (on the suspension) arrived ... the management board tried to stop the payment. But that was not successful."

...more...

[UpInArms]

43. Austrian watchdog brings forward BAWAG probe

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T151728Z_01_L21520648_RTRIDST_0_FINANCIAL-REFCO-BAWAG.XML

VIENNA, Oct 21 (Reuters) - Austria's financial watchdog FMA said it brought forward to Friday the start of a probe into BAWAG P.S.K.'s 350 million euro ($419 million) loan to the former head of insolvent futures trader Refco Inc (RFXCQ.PK: Quote, Profile, Research).

Officials of the FMA and Austria's National Bank, which originally planned to begin their work on Monday, will investigate whether BAWAG followed proper rules when it paid the loan to Refco Chief Executive Phillip Bennett on the day he was suspended.

The supervisory board of BAWAG, the country's fourth-largest bank and owned by Austria's trade union federation, concluded on Thursday that no laws had been violated when the loan was granted and decided not to dismiss any senior management over the incident.

The supervisory board reprimanded the management board, however, for not having submitted the loan to the bank's credit committee. It said management had argued that the loan was covered by an existing and approved credit line.

The head of the FMA, Kurt Pribil, said the board's statement was not sufficient for the watchdog and summoned the bank's chief executive, Johann Zwettler, and other senior executives involved in the loan.

...more...

[UpInArms]

14. Moscow hedge fund's money tied up in Refco-sources

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T114957Z_01_L21743379_RTRIDST_0_FINANCIAL-REFCO-RUSSIA.XML

MOSCOW, Oct 21 (Reuters) - Moscow-based hedge fund VR Group, possibly the biggest creditor of Refco Inc. (RFX.N: Quote, Profile, Research), has most of its money tied up by the U.S. broker's bankruptcy filing, financial sources said on Friday.

Distressed debt specialist VR Global Partners is owed $380 million by Refco, putting it third on a list of creditors behind Austrian bank BAWAG and U.S. Wells Fargo, U.S. court filings show.

But, adding two other creditors listed at its address in the Russian capital, VR's total exposure rises to $472 million -- making it the largest creditor of Refco, the largest U.S. independent commodities and futures brokerage.

VR, founded in 1999 by American Richard Deitz, has an estimated $600 million under management with clients in Moscow, London, New York and Geneva, the Moscow-based sources said.

<snip>

"He tried to argue that he is a client, and (the money is) not part of Refco, but he moved too late," the source said. "Two-thirds of his assets are now frozen. They had too many eggs parked in one basket."

...more...

[UpInArms]

16. Hedge fund VR Group to challenge Refco bankruptcy

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T122808Z_01_L21677394_RTRIDST_0_FINANCIAL-REFCO-VR-URGENT.XML

MOSCOW, Oct 21 (Reuters) - Moscow-based hedge fund VR Group, named by Refco (RFXCQ.PK: Quote, Profile, Research) as a major creditor, said on Friday it would challenge the U.S. broker's bankruptcy filing and that its operations were not under threat from the case.

VR-related entities were named in Refco's Chapter 11 suit this week as creditors to the tune of $472 million.

But Richard Deitz, who founded VR in 1999, said the funds were being held in custody by Refco and should thus not be considered as part of the bankruptcy process.

"Those assets are our assets," Deitz told Reuters. "We vigorously reject the notion that any assets form part of the estate of Refco."

...more...

[UpInArms]

12. Washington home market softens as investors sell

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-10-20T221256Z_01_N20330212_RTRIDST_0_CONSTRUCTION-WASHINGTON.XML

NEW YORK/WASHINGTON, Oct 20 (Reuters) - In the Washington D.C. area, once one of the strongest residential real estate markets, things are going soft, and that's becoming hard on home sellers and some home builders.

After hitting a high in May, the number of contracts in Washington D.C. and its surrounding Virginia areas of Prince William, Loudoun, Fairfax and Arlington counties have fallen by about half, according to the Greater Capital Area Association of Realtors. Meanwhile, inventory of houses for sale has doubled and in some cases tripled, and homes are staying on the market 30 percent longer.

In Falls Church City, contracts peaked in April and inventory is double that seen in December.

Too many houses are for sale, experts said. Speculators -- who last year bought homes, not to live in, but to sell or "flip" within a year -- are trying to cash in on the price increases now. "For Sale" signs are sprouting on lawns and depressing prices throughout the market, analysts and Realtors said.

"Anything over $500,000, especially in the suburbs, is just sitting." said Gay Ruth Horney, of Long & Foster Real Estate Inc. in Maryland's Montgomery County, where inventory rose 5 percent and homes stayed on the market 7 percent longer than in September 2004.

Would-be landlords have discovered that they are not able to achieve rents high enough to cover their mortgages. she said.

...more...

[Tandalayo_Scheisskopf]

32. Would-be landlords have discovered that they are not able to achieve rents

high enough to cover their mortgages. she said.

There is a telling line. We see this around here all the time, people who bought the 12 tape set on how to become independently wealthy through rental property.They buy at pretty much any ridiculous price, then rent their cheesy box at outrageous amounts, to get them some "cash flow". In some cases, the properties just sit empty.

I have been predicting that this would be the leading edge of the coming pain in real estate. Looks like I was right.

Oh boyee, there is gonna be some mess at the municipal and county levels, when the real estate prices(and their fall) start to effect tax rates...

[wordpix]

37. DC suburban housing market was ridiculously high

you can't touch (or couldn't touch) a a small house in the Md. suburbs like Chevy Chase or Bethesda for much less than a million---absurd. Wonder when this bursting bubble will spill to New England---a two-acre lot featuring rocks and poison ivy gets a seller about $150,000 in my area 90 mi. north of NYC.

[OrangeCountyDemocrat]

38. Look Out Below!!!!

My housing payments are about to Crash down on me!!

[AnneD]

61. It will hurt...

only when you have to resell and get less than what is owed on the mortage or you can't get out what you have paid in.

[UpInArms]

15. Weyerhaeuser to close two Wash. operations

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T120922Z_01_WEN1797_RTRIDST_0_TIMBER-WEYERHAEUSER-CLOSURES-URGENT.XML

NEW YORK, Oct 21 (Reuters) - Weyerhaeuser Co. (WY.N: Quote, Profile, Research) on Friday said it will close a pulp mill and a large-log sawmill in southwest Washington state due to a mix of old machinery, high costs and small operations.

The company said the closures would affect 342 hourly and salaried jobs.

...short blurb...

[wordpix]

39. sorry about the job loss but...

...I don't care if those forest rapists go out of business entirely. They cut and shipped the Northwest national forests to Japan and elsewhere while US taxpayers subsidized the rape. I really hate this company.

[UpInArms]

17. Fed officials say can keep inflation low

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=businessNews&storyID=uri:2005-10-21T024930Z_01_SCH102560_RTRUKOC_0_US-ECONOMY-FED.xml

ROCK HILL, South Carolina (Reuters) - Federal Reserve officials said on Thursday it was essential that unwelcome inflation be kept in check, bolstering expectations for more interest-rate increases from the central bank.

Building on a chorus of tough inflation talk this week from fellow policy-makers, Richmond Fed President Jeffrey Lacker said the Fed would respond to economic developments as needed to preserve its credibility as an inflation fighter.

<snip>

Lacker's comments echoed those earlier in the day by Atlanta Fed President Jack Guynn, who said it was appropriate for the Fed to continue to raise rates to a "neutral" level to keep inflation and inflation expectations in check.

<snip>

A third official, St. Louis Fed President William Poole, said inflation expectations appeared to be under control despite soaring energy prices, suggesting financial markets trusted the central bank.

...more...

Was that acapella in the key of "D"?

[UpInArms]

21. Lehman attempts to read the tea leaves

9:07am 10/21/05 LEHMAN UPS FED FUNDS FORECAST TO 4.75%, SEES CPI AT 4.6%

(edited to add link and blurb)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38646.3834066319-847039504&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- The Federal Open Market Committee will likely drive short-term rates to 4.75% by March to counter higher inflation and growth, Lehman Bros. chief economist Ethan Harris said Friday in a note to clients. Previously, Lehman was forecasting a top federal funds rate of 4.50%, up from 3.75% currently. Harris increased his forecast for consumer price inflation to 4.6% from 4.1% in both the fourth and first quarters, while gross domestic product will grow at a 3.5% rate in the first quarter, up from a forecast of 3% earlier. Lehman stills expects the FOMC to cut rates late next year.

[UpInArms]

27. Printing Press Warming Up: Fed adds temporary reserves via 6-day RPs

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T133747Z_01_N21345175_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Oct 21 (Reuters) - The Federal Reserve said on Friday it was adding temporary reserves to the U.S. banking system through six-day system repurchase agreements.

The benchmark federal funds rate last traded at 3.750 percent, the Fed's 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.

[OrangeCountyDemocrat]

40. So, Does This Mean.....

that they dilute the $ even more by constantly adding these reserves? Or are they just short-term, and end up being paid back?

I've noticed posts recently about the increasing money supply, and wonder if my thinking that it's not a good thing, is correct.

[UpInArms]

42. if anyone has more clear info regarding this, jump in!

it appears that the reserves are increased "temporarily" and then the amount of USBonds that are sold are then increased for longer periods - imho this is part of how they keep growing the M3

[UpInArms]

34. U.S. Treasury prices rise with technical support

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T145723Z_01_N21626122_RTRIDST_0_MARKETS-BONDS-REPEAT.XML

NEW YORK, Oct 21 (Reuters) - U.S. Treasury debt prices were stronger on Friday, driven higher after a key technical level on yields failed to break despite numerous attempts all week.

Yield on the 10-year note has repeatedly bumped up against a technical point at 4.50 percent through the week, but has been unable to break convincingly above that level despite evidence that the Federal Reserve bank will continue to raise interest rates.

"All of the economic statistics have been pointing toward worse inflation, stronger economic growth, the Fed governors are banging on the drums about how inflation is a concern, and through all of that Treasuries not able to break through some very key support levels," said Alan De Rose, a trader at CIBC World Markets in New York.

"When you have a situation like that, when the market can't go with the news, then ultimately you get in a situation where the market is going to try to test it the other way," De Rose said.

...more...

[54anickel]

51. Are we witnessing a flight to safety, or are the "vigilantes" giving the

a hard time? Someone hedging a bet somewhere?

[UpInArms]

52. Katrina and Rita Hurt U.S. Economy, the Conference Board Reports

http://www.infozine.com/news/stories/op/storiesView/sid/10909/

Washington, D.C. - infoZine - Soaring energy prices and the enormity of Hurricanes Katrina and Rita will have a significant impact on the U.S. economy, putting upcoming holiday retail sales at risk. But the economic havoc generated by the two deadly hurricanes in and of itself is unlikely to trigger a recession, The Conference Board reports.

"While the economic damage assessment is still underway, it is already clear that the impact from Hurricanes Katrina and Rita will be the biggest among natural disasters in recent U.S. history," says Ken Goldstein, Senior Economist of The Conference Board. "But economic growth could slow down enough to make it feel like a recession, even if one does not occur technically."

The economy will feel like it is moving forward as early as the first quarter of 2006 and this momentum will continue into the spring as massive rebuilding gets underway. Long-term trend growth should be back on track in the second half of 2006.

But the fallout from the hurricanes will have a major impact on the economy and the business cycle:

It has already produced energy-price shocks that will cut into consumer spending.
The magnitude of damage to lives and property is still being measured.
Consumer confidence has fallen, a further danger sign for consumer spending.
The labor market continues to cool off.

...more...

Wow! Isn't that wonderful! Now we can know that it's coming in the second half of next year! We have been just around the corner, in the next quarter, any day now, right on the cusp for 5 freakin' years!

[54anickel]

55. Sounds more like they're lining up the scapegoats for when the fecal

matter hits the fan. "We're on the cusp" The economy was going great until Katrina, Rita, Wilma, Greenspin retired, indictments came down, etc, etc, etc....

Fed Officials May Dissent More, Upset Markets Under New Chief

http://biz.yahoo.com/ibd/051020/general.html?.v=1

No matter who replaces him, when Alan Greenspan goes, listen closely for a sucking sound.

After 18 years, the void left by the departure of the Federal Reserve chairman could create a vacuum after his stable leadership.

Investors used to hearing the Fed speak with a single voice are likely in for some surround sound -- with numbers and analysis coming from all over.

snip>

"The culture of the chairmanship is to be the dominant voice in the Fed. If you have a weak chairman ... the markets could be very unsettled," said David Jones, head of Denver-based DMJ Advisors and a long-time Fed watcher.

more...

[UpInArms]

48. US Treasury asks dealers about budget uncertainty

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T160617Z_01_WAT004257_RTRIDST_0_ECONOMY-TREASURY-DEALERS-URGENT.XML

WASHINGTON, Oct 21 (Reuters) - The U.S. Treasury Department on Friday said it is asking bond dealers about major risks and uncertainties related to the U.S. budget in fiscal year 2006.

Treasury officials are scheduled to meet with primary dealers Oct. 27-28 and to announce quarterly refunding plans Nov. 2.

[54anickel]

56. Huh? Is this something new, or has the Treasury gone to bond dealers

for advice in the past?

[UpInArms]

63. dunno, but here's some more info

from an updated article:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T163530Z_01_N21632270_RTRIDST_0_ECONOMY-TREASURY-DEALERS-UPDATE-1.XML

excerpt:

Treasury officials are scheduled to meet with primary dealers Oct. 27-28 and to announce quarterly refunding plans Nov. 2, the department said in an agenda for its meetings with dealers that it released Friday.

"Do you think Treasury's current financing schedule provides enough flexibility to handle uncertain financing needs going forward?" the government asked dealers.

Treasury also asked dealers to comment on moving 5-year note auctions to the end of the month, rather than the middle of the month, to accommodate 30-year bond offerings, which the government is expected to resume in the first quarter of 2006.

Treasury also asked dealers on how best to set terms for a special lending facility it is considering launching for instances when demand for Treasury securities exceeds supply in the debt repurchase market.

"How should Treasury set these terms so that borrowing from the facility is economical only when delivery fails in a security become chronic or systemic?" officials asked.

...more at link...

[54anickel]

65. Do you ever get that feeling in the pit of your stomach telling you

there's something drastically wrong, but you can't put your finger on it?

That's the feeling I got reading that article. Considering a new, special lending facility - just in case? ... Ewwwwww.

[AnneD]

60. Maybe.....

they should issue Barber Shop Quartet Alerts.:rofl:

[54anickel]

66. Fed Poker

http://www.dinl.net/latest_letters_05/20051019_ll.html

snip>
We know that inflation is caused by an expansion in the quantity of money just as deflation is caused by shrinkage in the quantity of money. Therefore, just to set things straight, we must get the cause and effect nailed down. An increase in overall prices at the petrol station or in the supermarket is not inflation. That is simply price swings which may be caused by supply & demand in the marketplace, e.g. oil supplies are scarce, therefore prices rise, or harvests fail and vegetables are more expensive. This is very noticeable in consumables like PCs and printers. They have dropped dramatically in price. Nobody is screaming about deflation. These are falling in price due to factors like consumer demand, component prices and market saturation. They are not falling in price because nobody has any money.

The interesting facts in the charts below show that indeed, the consumer is strapped for money on both ends even as housing prices continue to climb, which is counterintuitive, since if one has no money, how could prices for expensive items continue to climb incessantly? Both the personal savings rate and the financial obligations as a percentage of disposable income show horrific developments over the last 30 years even as housing prices have increased by 1000% percent. This simply means that persons are farther and farther in debt and have no savings cushion to speak of.

How can this be? Some would argue that these are just numbers and do not show the true robustness and flexibility of the US economy. I beg to differ. Facts are facts and cannot be simply distorted or talked away. A very important thing to remember is that in other economies shrinkage often sets in and/or personal savings must increase in order to make up the difference for an economy which spends more than it produces.

Getting back to our original premise, that of inflation or deflation, i.e. what is happening with the money supply?, we see that the "narrow money" M1 has been expanding steadily for the last 35 years at approximately a 700% increase. M3, (the category of the money supply that includes M1 plus M2 as well as all large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets. This is the broadest measure of money; it is used by economists to estimate the entire supply of money within an economy) however, has been growing even faster which could be seen as intuitive since one must take into account extended fractional reserve banking and the growth of financial derivative instruments - this is corroborated in the chart showing growth of 1600% for M3.

So in fact, narrow money growth has been trailing broad money growth by a factor of roundabout 2:1. Does anybody still have any questions as to whether the quantity of "money" is growing? The final graph shows the "robust" US economy from 1947 to today. Even taking into account business cycles, there can be no disregarding that from 1975 onwards, the US become a slow net importer of goods and that from the dot.com mid 1990s it became a hyper-importer of goods from abroad, which coincides precisely with the steepening M1 and M3 curves in the charts at 1995 and a dropping-off-the-cliff for net exports. Consumption not inward investment and a re-tooling for global competitiveness was the key. The US is really no longer a global producer and manufacturer but rather is a voracious consumer. The Fed has no choice but to print money and has turned away from Volckeristic aggressive monetary policy of the late 1970s as likely to be too painful for the public, but more importantly, too dangerous to the intertwined imbalances currently reigning in the global marketplace.

more...

[UpInArms]

75. Joining in for the Chorus: IMF chief says Fed should up rates

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-10-21T170939Z_01_BAU161276_RTRUKOC_0_US-ECONOMY-IMF-RATO.xml

BRUSSELS (Reuters) - The Federal Reserve should increase interest rates gradually while the European Central Bank should keep its rate on hold for now, the Inrternational Monetary Fund chief Rodrigo Rato said.

"We believe that the Federal Reserve has to carry on with a progressive increase in interest rates as a consequence of the American economy," Rato told news channel EuroNews in an interview to be broadcast on Friday.

"In Europe we think that the current policy of the ECB is appropriate... At least that is until there is a clear and stable recovery," Rato added.

[UpInArms]

76. Will the Washed-Up Has-Been Partisan Hack Sing on Key Too?

Greenspan to testify on economic outlook Nov 3

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T184721Z_01_WAT004259_RTRIDST_0_ECONOMY-GREENSPAN-URGENT.XML

WASHINGTON, Oct 21 (Reuters) - Federal Reserve Chairman Alan Greenspan will testify on the U.S. economic outlook before the Joint Economic Committee of Congress on November 3, the panel said on Friday.

The hearing will be held at 10 a.m. (1500 GMT), it said. The location is to be determined.

[AnneD]

79. Maybe.....

if they get their stories straight...maybe they can get more people into the tent...
Either way what happens after the meeting should prove to be interesting.

[UpInArms]

18. Maytag hurt by energy, distribution costs

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-10-21T123703Z_01_MOR140289_RTRUKOC_0_US-MANUFACTURING-MAYTAG-EARNS.xml

NEW YORK (Reuters) - Home appliance maker Maytag Corp. (MYG.N: Quote, Profile, Research) on Friday reported a bigger-than-expected third-quarter loss, hurt by higher energy and distribution costs and weakness at its Hoover vacuum division.

The company, which has agreed to be acquired by larger rival Whirlpool Corp. (WHR.N: Quote, Profile, Research) for about $1.7 billion, posted a loss of $18.2 million, or 23 cents a share.

Excluding merger-related charges of $8.5 million, but including preannounced restructuring charges, Maytag posted a loss of 16 cents a share, according to Reuters Estimates data. This was worse than analysts' average estimate of a loss of 8 cents a share.

<snip>

Maytag said costs related to underutilized manufacturing facilities in the United States were rising as the company increasingly used overseas sources.

...more...

and

Maytag posts steep loss amid restructuring

http://www.marketwatch.com/news/story.asp?guid=%7B549DFDAA%2D1752%2D4477%2DAC45%2DCA560261EC95%7D&siteid=mktw

NEW YORK (MarketWatch) - Maytag Corp. swung to a steep third-quarter loss Friday as it struggled with fading demand for some of its appliances and a costly ongoing restructuring ahead of its planned merger with Whirlpool Corp.

Maytag (MYG) said it lost $18.2 million, or 23 cents a share, in the three months ended Oct. 1, wider than the 4 cents a share loss predicted by the average of analysts surveyed by Thomson First Call. A year ago, the Newton, Iowa, maker of dishwashers, refrigerators and floor-care products posted a profit of $7.5 million, or 9 cents a share.

Sales rose 6.5% to $1.26 billion from $1.19 billion.

"Despite the top-line sales successes, our excess manufacturing capacity in some product categories continues to worsen as consumer demand shifts to our products that we source from lower cost manufacturers," according to a statement from Ralph Hake, Maytag's chairman and chief executive.

...more...

[UpInArms]

19. Xerox profit falls 61%; $500 mln in buybacks planned -

http://www.marketwatch.com/news/story.asp?guid=%7B43E7C24F%2DA881%2D45D1%2DA314%2DDB72F23D2792%7D&siteid=mktw

NEW YORK (MarketWatch) -- Xerox Corp. reported Friday a third-quarter profit that dropped about 61% from a year ago and said it would buy back up to $500 million of its shares.

The lower profit that Xerox (XRX) posted was in line with analysts' expectations on an adjusted basis.

The Stamford, Conn.-based copier manfacturer said third-quarter net income fell to $63 million, or 5 cents a share, from $163 million, or 18 cents, earned in the year-ago period.

...more...

[UpInArms]

20. Raw material costs hit Caterpillar

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-10-21T125356Z_01_MOR141677_RTRUKOC_0_US-MANUFACTURING-CATERPILLAR-EARNS.xml

NEW YORK (Reuters) - Heavy equipment maker Caterpillar Inc. (CAT.N: Quote, Profile, Research) on Friday posted disappointing quarterly results and warned that higher raw material costs and production bottlenecks would crimp profits, sending shares down almost 7 percent.

Caterpillar, a component of the Dow Jones Industrial Average that makes machines used in construction and mining, said it's not able to keep up with strong demand, a scenario it also struggled with at the end of 2004.

...more...

[ozymandius]

22. pre-open blather

9:00AM: S&P futures vs fair value: +2.8. Nasdaq futures vs fair value: +8.5. The equity market remains poised for a higher start. Earnings results have upheld the trend - approximately two-thirds of companies have surpassed expectations - and the Technology-driven momentum may help usher buyers back to the table today. On the other side of the column is Caterpillar (CAT); with earnings of $0.94 per share, the Dow component fell $0.12 short of analysts' estimates. A positive write-up in the Wall Street Journal may, however, help limit the stock's slide today.

8:31AM: S&P futures vs fair value: +2.7. Nasdaq futures vs fair value: +10.0. Futures trade continues to suggest an upside open for the cash market. In addition to Google-induced enthusiasm, a number of other technology issues have contributed to the early tone. In particular, semiconductor shares are on the rise. Sandisk (SNDK) has jumped 17% after reporting Q3 EPS $0.19 ahead of estimates yesterday evening, while bullish guidance and upside EPS have sent Broadcom (BRCM) up 3%. In addition, Xilinx (XLNX) and Genesis Microchip (GNSS) exceeded expectations.

[UpInArms]

23. query

Isn't it interesting that any manufacturing biz with actual materials and other associated costs are suffering, while Google - with mostly services related income - is soaring?

(edited to leave only my query)

[UpInArms]

25. Hibernia posts 3rd-qtr loss on hurricanes

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T131657Z_01_WEN1809_RTRIDST_0_FINANCIAL-HIBERNIA-EARNS-URGENT.XML

NEW YORK, Oct 21 (Reuters) - Hibernia Corp. (HIB.N: Quote, Profile, Research), Louisiana's largest bank, on Friday posted a third-quarter loss, citing the impact of Hurricanes Katrina and Rita.

The New Orleans-based company, which is being acquired by Capital One Financial Corp. (COF.N: Quote, Profile, Research), posted a net loss of $58.1 million, or 37 cents per share, compared with a profit of $76.5 million, or 49 cents per share, a year earlier.

Looks like Hibernia and its employees in Louisiana got whacked pretty hard.

[AnneD]

31. As per an earlier post

Hibernia stood by their employees and did the right thing. Hubby and I are shopping for a bank now and Hiberna is a top contender. We closing our mega bank accounts---tired of being treated like dirt. I figure if they treat their workers well, how will they treat their customers? Yes, they had a tough quarter, but I wouldn't bet against them over the long haul.

[UpInArms]

26. 9:42 EST and the buyers rush in

Dow 10,324.73 +43.63 (+0.42%)
Nasdaq 2,083.67 +15.56 (+0.75%)
S&P 500 1,183.26 +5.46 (+0.46%)
10-Yr Bond 4.432 -0.27 (-0.61%)

NYSE Volume 211,614,000
Nasdaq Volume 211,020,000

[UpInArms]

28. 9:46 EST buyers leave town in a hurry

Dow 10,273.58 -7.52 (-0.07%)
Nasdaq 2,082.73 +14.62 (+0.71%)
S&P 500 1,181.98 +4.18 (+0.35%)
10-Yr Bond 4.432 -0.27 (-0.61%)

NYSE Volume 249,224,000
Nasdaq Volume 241,765,000

[Algorem]

30. Business group sponsors SEC critics

http://www.hillnews.com/thehill/export/TheHill/News/TheExecutive/102005_sec.html

By Elana Schor

The Financial Services Roundtable, which represents nearly 100 top U.S. banks and securities traders, will release a study tomorrow calling for major reforms at the Securities and Exchange Commission (SEC) and charging the agency with neglecting efficiency in an effort to protect investors.

Peter Wallison, a White House counsel during the Reagan administration, and Cameron Smith, a former SEC counsel now working for Inet ATS, an electronic stock trader, wrote the report. Seizing on the ascension of former Rep. Christopher Cox (R-Calif.) to the commission’s chairmanship this summer, the study calls for the SEC to revisit several controversial regulations past commissions have enacted.

“The commission has failed ... to understand that Congress was seeking a balance in the SEC’s rulemaking activities,” Wallison and Smith wrote. While a 1996 law required the SEC to consider “whether its action will promote efficiency, competition and capital formation,” the study adds, “the commission has largely ignored this statutory obligation.”

The so-called independent-chairman rule receives particular scrutiny in the study, which contends that the SEC “revealed the narrowness of its vision” with its bid to make mutual funds retain independent chairmen and largely independent boards. The U.S. Chamber of Commerce has vigorously challenged the rule, and its ongoing court battle with the SEC will culminate in a federal appeals hearing in January...

[UpInArms]

33. 11:15 EST DOW wallows in the red

Dow 10,228.91 -52.19 (-0.51%)
Nasdaq 2,083.18 +15.07 (+0.73%)
S&P 500 1,180.47 +2.67 (+0.23%)
10-Yr Bond 4.394 -0.65 (-1.46%)

NYSE Volume 864,360,000
Nasdaq Volume 691,878,000

11:00AM: The blue chip average fades further on account of the extended selling pressure Pfizer (PFE 21.29 -0.61) faces. As such, the Healthcare (-0.3) sector has lost its footing and joins Industrials (-0.2%) on negative turf. A drop in Wyeth (WYE 45.44 -0.79) pulls the sector lower; despite beating Q3 earnings estimates by a nickel, in-line FY05 guidance appears to have dissatisfied traders. With respect to the Dow, follow-through weakness in the Honeywell (HON 32.80 -0.56) and American Express (AXP 47.30 -0.06), alongside declines in United Technology (UTX 51.20 -0.62), Boeing (BA 66.76 -0.54), Microsoft, Proctor & Gamble (PG 54.98 -0.19), joins Caterpillar's (CAT 48.46 -5.57) 10.3% drop in shoving it lower. NYSE Adv/Dec 2073/886, Nasdaq Adv/Dec 1756 /889

10:30AM: Little has changed over the past half hour: The Dow still sits below the flat line while the S&P and Nasdaq maintain solid standings. Tech's 0.8% gain fosters the latter's outperformance and serves as the strongest overall support. Google's (GOOG 340.90 +37.70) report has directed traders' attention to the sector, and surging SanDisk (SNDK 53.96 +7.58) shares stand as one of its brightest spots. Last night, the company reported profit that nearly doubled, and delivered EPS that beat the consensus estimate by $0.19.NYSE Adv/Dec 1965/875, Nasdaq Adv/Dec 1725/799

[54anickel]

46. Hey UIA, did I read that curbs kicked in yesterday? Still crazy around

here so haven't been able to keep up with the game.

[UpInArms]

49. According to the marketwatch ticker -

about 1/2 an hour before closing - curbs were triggered when the DOW was down 160 points.

Hope all is going well with you and yours :hi:

[54anickel]

53. Going well, just busy. That's what I get for hangin' up a shingle

that says "Anything for a buck". Little odd jobs popping up here and there now that I've taken on a bunch of chores around the homestead (along with a couple of classes). Not enough hours in the day...when it rains it pours.

It's not like folks are knockin' my door down or the phone's ringin' off the hook - it's just a matter of timing, and the timing's not good.

:hi:

[UpInArms]

41. Morgan Stanley moves to seal Perelman affidavit

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T153651Z_01_N21628697_RTRIDST_0_FINANCIAL-MORGANSTANLEY-UPDATE-1.XML

NEW YORK, Oct 21 (Reuters) - Morgan Stanley (MWD.N: Quote, Profile, Research) on Friday asked a Florida state judge to seal an affidavit, the contents of which might lead to criminal sanctions against the investment bank and some top executives, people involved in the case said.

The sanctions relate to a March ruling that Morgan Stanley misled the court as to why it failed to produce e-mails in a fraud lawsuit brought by Ronald Perelman.

Three months later, the billionaire financier was awarded $1.58 billion after a jury trial over the bank's role in advising appliance maker Sunbeam Corp. in its 1998 purchase of Perelman's camping goods company, Coleman Co.

Morgan Stanley contends that the affidavit, provided by former executive Arthur Riel, contains information protected by attorney-client privilege, a spokesman for the bank said.

...more...

[UpInArms]

44. 12:02 EST red spreading

Dow 10,213.79 -67.31 (-0.65%)
Nasdaq 2,078.31 +10.20 (+0.49%)
S&P 500 1,177.55 -0.25 (-0.02%)
10-Yr Bond 4.396 -0.63 (-1.41%)

NYSE Volume 1,097,067,000
Nasdaq Volume 863,601,000

(updating blather on edit)

12:05PM: Early enthusiasm that Google sparked has paled against anguishing Caterpillar (CAT 48.66 -5.37) shares, and the Dow component's 9.9% drop has dragged the blue chip average while overshadowing another solid slate of Q3 earnings reports. Before the bell, Caterpillar announced earnings that fell $0.12 short of analysts' estimates, alongside Q4 guidance that roiled investors. As a result, the Industrials sector (-0.6%) stands as the session's laggard. Aside from Telecommunications' 1.7% gain - fueled by Upside Q3 earnings announced by Alltel (AT 60.22 +1.56) and AT&T (T 19.05 +0.47) and by follow-through buying interest in SBC (SBC 23.07 +0.53) - spirited leadership lacks. Healthcare trails Industrials on the laggard list, off 0.6% and extending yesterday's weakness alongside the further selling pressure Pfizer (PFE 21.32 -0.58) faces. The stock is down 2.8% today, on top of yesterday's 9.3 guidance-driven loss. Wyeth (WYE 45.16 -1.07) exacerbates the sector's situation. Despite having beaten Q3 earnings estimates by a nickel, in-line FY05 guidance appears to have dissatisfied traders. Energy prices stay on their southbound path today, but yet again do little to excite buyers. Crude has remained below $60.00/bbl this morning, but has not managed to steal much attention from Caterpillar. Reversing course, however, the Energy sector (+0.8%) avoids further profit-taking that declining crude has catalyzed. Google's (GOOG 339.18 +35.98) blowout third quarter, during which net revenues rose more than sevenfold, has directed some attention to the Tech sector (+0.2%). Relative strength in semiconductors, on account of upside earnings reports from the likes of Xilinx (XLNX 23.19 +0.38), Broadcom (BRCM 43.44 -0.86), Genesis Microchip (GNSS 19.83 -2.02), and Sandisk (SNDK 54.05 +7.67), further helps to keep the sector on positive ground. With respect to Sandisk, the company reported EPS $0.19 ahead of the consensus estimate after posting profit that nearly doubled. Its subsequent 16% jump stands as one of the session's brightest spots and is largely responsible for helping the Nasdaq maintain its gain. Ultimately, though, broad-based selling minimizes the Tech sector's gain and mutes the earnings-effects of Google and SanDisk. While the quarter reflects the tradition of two-thirds of companies beating expectations, the market appears focused upon fourth quarter guidance and the forecasted earnings deceleration next quarter, overlooking the fact that Q4 is still expected to reflect double-digit growth.NYSE Adv/Dec 1863/1226, Nasdaq Adv/Dec 1638/1121

11:30AM: Since the previous comment, the stock's market's stance has been static...

Although the price of crude has slumped to a fresh session low - off 1.2% to $59.30/bbl - and while both gasoline and natural gas similarly trend lower, the stock market appears little affected. Supporting the Consumer Discretionary sector, which is most sensitive to prices at the pump, is the homebuilding group (+1.3%). Recovered eBay (EBAY 39.90 +0.75) shares, after yesterday's guidance-induced plunge, have further helped the sector retain its modest 0.2% gain. In terms of falling crude's impact, the airlines segment is an area that has gotten a lift. Up 2.8%, the rise helps to somewhat counter the Caterpillar (CAT 48.44 -5.59) effect upon the Industrials sector (-0.5%).NYSE Adv/Dec 2009/1028, Nasdaq Adv/Dec 1707/997

[UpInArms]

45. Accused spyware installer settles lawsuit

http://www.businessweek.com/ap/financialnews/D8DC17E8I.htm?campaign_id=apn_tech_down&chan=tc

OCT. 20 6:01 P.M. ET The former chief executive of a company accused of secretly installing adware and spyware on millions of home computers agreed to pay $750,000 in penalties after an investigation, New York Attorney General Eliot Spitzer said Thursday.

In April, Spitzer sued Los Angeles-based Intermix Media Inc., saying the company was responsible for sending software tens of millions of times on computers across the country and three million times in New York.

Adware and spyware deliver nuisance pop-up advertisements and can slow and crash personal computers. Spitzer said such programs are fraudulent and threaten to discourage e-commerce.

Shortly after filing the suit, Spitzer's office began investigating Intermix's founder and former CEO Brad Greenspan, Spitzer spokesman Brad Maione said.

Greenspan, 32, served as CEO of Intermix from July 2002 to October 2003. Investigators said he directed employees to bundle adware with other free programs and to make the software difficult to remove.

...more...

[UpInArms]

54. RIM denied stay pending Supreme Court appeal-NTP

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh00549_2005-10-21_16-08-09_n21634343_newsml

TORONTO, Oct 21 (Reuters) - A U.S. District Court will be asked to reconfirm an injunction that could shut down Research In Motion Ltd.'s (RIM.TO: Quote, Profile, Research) (RIMM.O: Quote, Profile, Research) BlackBerry service in the United States after a motion to stay the case was denied, NTP Inc. said on Friday.

NTP, which successfully sued RIM for patent infringement in 2002, said the U.S. Court of Appeals for the Federal Circuit denied RIM's motion to stay or suspend the case, pending a request for a U.S. Supreme Court review.

RIM shares sank earlier this month when the same U.S. appeals court refused to rehear and reconsider the patent infringement ruling.

NTP said the case will move back to the District Court it was first heard in for re-confirmation of the injunction that could halt U.S. sales of the BlackBerry e-mail device and shut down its service in the United States.

NTP first won the injunction in 2003, but it was stayed by the judge in the case pending the appeal process.

...more...

[54anickel]

57. Holy crap, look at gold just now - up over $5? Buck up, oil down, gold up

:wtf:

[54anickel]

58. Gold futures set for small weekly loss

http://www.marketwatch.com/news/story.asp?siteid=mktw&dist=moreover&guid={DBBA0523-61DF-4F8F-B5EF-49DF1B6E53A9}

Last Update: 12:21 PM ET Oct. 21, 2005

snip>

Gold for December delivery rose 90 cents to trade at $464.10 an ounce on the New York Mercantile Exchange. The contract's losses came to $13.40 over the past three sessions. It's trading around 1.6% below the week-ago close of $471.80.

Gold has been under pressure because "oil prices are backing down relieving inflationary pressures and ... the prospects that the fed will continue to raise interest rates which are aimed at cooling inflationary pressure will also temper consumer spending," said John Person, president of National Futures Advisory Service.

"Overall gold needs to hold the $460 level of support otherwise it could trade back down as low as $445 in the next 30 days," he said.

In the short term, Moore expects to see a "fund-led correction" in gold back to the $445-to-$450 range. But "physical buying from India is set to emerge around the $450 level and should prevent gold from falling much lower," he said.

more...

[54anickel]

70. Gold rallies; closes with minor weekly loss

http://www.marketwatch.com/news/story.asp?siteid=mktw&dist=moreover&guid={DBBA0523-61DF-4F8F-B5EF-49DF1B6E53A9}

snip>

"In true secular bull market fashion, gold has once again gone through a sharp and short correction in its 'two steps up, one step back' climb to $500," said Peter Grandich, editor of the Grandich Letter.

"Perceived negatives have no lasting affects and are eventually overcome to the upside -- leaving bears wondering what will it take to keep gold down," he said.

Indeed, gold prices climbed Friday despite strength in the dollar, which usually eases investment interest in the yellow metal. See Currencies.

snip>

Sudden move

Earlier Friday, gold prices had only been making modest gains. It logged the bulk of its climb for the session in the last hour of trading.

"This looks 100% technical in nature," said Tim Evans, a senior analyst at IFR Markets. "It just looks like found technical support at Thursday's $462 low ahead of the 461.20 low from September 27 and now we're seeing an upward reversal off that support."

more...

[54anickel]

59. 1:00, stocks up too?

edit for html

Dow 10,270.06 -11.04 (-0.11%)
Nasdaq 2,088.45 +20.34 (+0.98%)
S&P 500 1,184.39 +6.59 (+0.56%)
10-yr Bond 43.84 -0.75 (-1.68%)
30-yr Bond 46.07 -0.73 (-1.56%)
NYSE Volume 1,373,818,000
Nasdaq Volume 1,063,046,000


12:05PM : Early enthusiasm that Google sparked has paled against anguishing Caterpillar (CAT 48.66 -5.37) shares, and the Dow component's 9.9% drop has dragged the blue chip average while overshadowing another solid slate of Q3 earnings reports. Before the bell, Caterpillar announced earnings that fell $0.12 short of analysts' estimates, alongside Q4 guidance that roiled investors. As a result, the Industrials sector (-0.6%) stands as the session's laggard. Aside from Telecommunications' 1.7% gain - fueled by Upside Q3 earnings announced by Alltel (AT 60.22 +1.56) and AT&T (T 19.05 +0.47) and by follow-through buying interest in SBC (SBC 23.07 +0.53) - spirited leadership lacks. Healthcare trails Industrials on the laggard list, off 0.6% and extending yesterday's weakness alongside the further selling pressure Pfizer (PFE 21.32 -0.58) faces. The stock is down 2.8% today, on top of yesterday's 9.3 guidance-driven loss. Wyeth (WYE 45.16 -1.07) exacerbates the sector's situation. Despite having beaten Q3 earnings estimates by a nickel, in-line FY05 guidance appears to have dissatisfied traders. Energy prices stay on their southbound path today, but yet again do little to excite buyers. Crude has remained below $60.00/bbl this morning, but has not managed to steal much attention from Caterpillar. Reversing course, however, the Energy sector (+0.8%) avoids further profit-taking that declining crude has catalyzed. Google's (GOOG 339.18 +35.98) blowout third quarter, during which net revenues rose more than sevenfold, has directed some attention to the Tech sector (+0.2%). Relative strength in semiconductors, on account of upside earnings reports from the likes of Xilinx (XLNX 23.19 +0.38), Broadcom (BRCM 43.44 -0.86), Genesis Microchip (GNSS 19.83 -2.02), and Sandisk (SNDK 54.05 +7.67), further helps to keep the sector on positive ground. With respect to Sandisk, the company reported EPS $0.19 ahead of the consensus estimate after posting profit that nearly doubled. Its subsequent 16% jump stands as one of the session's brightest spots and is largely responsible for helping the Nasdaq maintain its gain. Ultimately, though, broad-based selling minimizes the Tech sector's gain and mutes the earnings-effects of Google and SanDisk. While the quarter reflects the tradition of two-thirds of companies beating expectations, the market appears focused upon fourth quarter guidance and the forecasted earnings deceleration next quarter, overlooking the fact that Q4 is still expected to reflect double-digit growth.NYSE Adv/Dec 1863/1226, Nasdaq Adv/Dec 1638/1121

[UpInArms]

62. stock markets are enthused about "certain" rate hikes!

Ain't no stopping us now
Fed officials clear that more rate hikes to come

http://www.marketwatch.com/news/story.asp?guid=%7B88FA0581%2D8E4D%2D47D1%2D91CE%2D2132427860E2%7D&siteid=mktw

WASHINGTON (MarketWatch) - A flurry of Fed speeches this week delivered a single message to financial markets: the Fed will continue hiking interest rates over the next several meetings, Wall Street economists said.

"Basically, the Fed continues to telegraph to the market that they are not in a rush to stop the pace of rate hikes," despite the impact of Hurricanes Katrina and Rita, said Steven Ricchiuto, chief U.S. economist at ABN Amro Inc. The FOMC has already raised short-term interest rates by a quarter-percentage point eleven straight meetings since June 2004.

While it used to be fashionable to complain that the Fed was being opaque, the speeches by top Fed officials, particularly one Wednesday by Fed governor Donald Kohn, were crystal clear, economists said. Read story on Kohn speech

"They all seem to be on the same page," said Mike Moran, chief economist at Daiwa Securities.

The unified message is that the risks are tilted toward higher inflation. While there will be a slowdown as consumers grapple with higher energy costs associated with the storms, it is less of a concern, Moran said.

"So the natural call is more increases in interest rates," Moran said.

...more...

Whee!

[54anickel]

64. The Mathematics of the Double-Down Presidency

http://www.truthout.org/docs_2005/102005Q.shtml

Imagine there is a good for nothing gambler. He has only two resources: First, he's good for nothing, he's got an unlimited amount of time. Second, he's well born, and has an unlimited amount of credit at no interest. He offers you a chance to play a game, a simple game. It's the flip of a coin. If he loses, then you get what he bet; if he wins, you pay him what he bet, plus a dollar. He can stop any time he wants to, but you always have to accept his bet. Here's the catch: it is with a very loaded coin, and you get to choose which side. You might think that if the coin were loaded enough, the good for nothing gambler would be a fool. He certainly sounds like one.

But the reality of mathematics takes hold. He has an unlimited amount of credit. Each time he loses, he doubles the bet. You can't stop him from placing a new bet, and he has an unlimited amount of time. Eventually, even if the coin is very loaded, he will get back everything and pay back his creditors. Because the payoff is, effectively, one dollar for every time he wins, and the rest doesn't matter. Eventually, no matter how loaded the coin, your money will drizzle into his pocket. This strategy of betting is called a "martingale," and the term has entered into financial theory. The martingale betting strategy doesn't work at the casino, because casinos don't pay off true odds and because even normal runs of bad luck will bankrupt the gambler. The gambler has to have access to astronomical amounts of money to make it work. But rational economic actors, so long as they are convinced there is enough money, will lend to him, because eventually there is risk-free profit to be had.

This is the basic mathematics of George Bush, the double-down President. Each time he fails, he goes back to his backers among the privileged and doubles the bet. Eventually, he will bankrupt anyone with a finite amount of money. And compared to any ordinary player, the government has an infinite amount of money. In fact, the key economic theory of the rational expectations school of economics is exactly that: the government has an infinite amount of money. This idea is embodied in the work of Robert J. Barro, who wrote an influential paper entitled "Are Government Bonds Net Wealth?"

His argument is complex and relies on the mathematics of a concept known as the "rational economic actor." In it, he concludes that under very interesting sets of conditions, if a government runs a deficit, then people will just buy government bonds to pay the expected future tax increases. While this doesn't apply to most governments, or to people, it does apply to the anchor currency in a financial system and to other governments. In effect, the hegemonic power has unlimited credit, so long as they can credibly show to other governments that someday, there will be a shortage of the anchor currency. This is the method that George Bush, the double-down President, is using - going to foreign central banks, and telling them that if they don't back his next throw, they will lose their money and that, anyway, eventually his luck will turn.

more...

[ozymandius]

68. What a bi-polar day (2:12 update)

Dow 10,257.49 -23.61 (-0.23%)
Nasdaq 2,089.38 +21.27 (+1.03%)
S&P 500 1,184.65 +6.85 (+0.58%)
10-Yr Bond 44.02 -0.57 (-1.28%)
NYSE Volume 1,687,698,000
Nasdaq Volume 1,284,187,000

1:30PM: The Dow clears the flat line for the first time since the morning's bell. For the first time since July, the price of crude oil fell below $60.00/bbl yesterday. That level has been sustained throughout today's session, and is accompanied by extended pullbacks in both gasoline (off 1.1%) and natural gas (down 0.5%). While recent energy price downswings has left the Energy sector languishing, and paring its year-to-date gain down to 19.9%, the sector demonstrates resilience today. Its weakness of late has perhaps enticed bargain hunters, who have pushed 27 of the S&P's 29 energy consituents to gains - 62% of which are in excess of 2.0%. The sector's standing helps support the overall market, teaming with Materials (+1.5%), Utilities (+1.3%), and Telecomm (+2.6%) in leading the way higher. Separately, energy price action has bolstered the spectrum of transportation issues and pulled the Dow Jones Transportion Average to a 0.6% gain. DOT +0.6, NYSE Adv/Dec 2135/1032, Nasdaq Adv/Dec 1753/1089

[54anickel]

69. Hmm, will there be the 2:00 bounce to make this a good weekend to

be holding stocks after all?

Should it turn out to be a bad weekend, I wonder if the closing blather will do the Fred Flintstone imitation.... "WILMA!!!!"

[54anickel]

72. 2:47 and the DOW still hurtin'

Dow 10,237.17 -43.93 (-0.43%)
Nasdaq 2,085.49 +17.38 (+0.84%)
S&P 500 1,182.26 +4.46 (+0.38%)
10-yr Bond 4.392% -0.07
30-yr Bond 4.612% -0.07
NYSE Volume 1,857,429,000
Nasdaq Volume 1,395,394,000

2:30PM: Mixed footing amid the indices persists...
Heading towards the close of this week's trade, here's a look at the best performances put it over the past five days. The S&P's top five are human resources & employment services, driven 7.3% higher largely on account of Robert Half's (RHI 37.82 +5.41) earnings report; Internet software & services, bolstered by Yahoo (YHOO 35.36 +0.10); computer storage (the S&P issues are EMC, LXK, NTAP, QLGC); application software (ADSK, CTXS, CPWR, INTU, MERQ, PMTC, SEBL), and asset management (BK, FII, BEN, JNS, MEL, NTRS, STT, TROW). The groups have extended respective 7.3%, 5.7%, 4.6%, 4.0%, and 3.9% to the broader market.NYSE Adv/Dec 2212/994, Nasdaq Adv/Dec 1868/1040

2:00PM: The Dow's recent attempt to rise has been halted, and the blue chip average returns to the red. Notching a 0.8% gain, the Technology sector continues to drive the Nasdaq's outperformance today. Within the sector, Xerox (XRX 13.10 +0.69) has emerged as a significant bright spot and has pushed the office electronics group to the top of the S&P. The XRX shares reversed the week's downturn today, rising 5.6% after disclosing in-line Q3 earnings of $0.18 per share, in-line Q4 guidance, and a $500 mln share buyback plan. The company's upbeat conference call that it conducted this morning, during which Xerox discussed its particularly improved performance in Russia and central and Eastern Europe amid exceptionally strong, appears to have further attracted buyers today.NYSE Adv/Dec 2174/1012, Nasdaq Adv/Dec 1839/1056

[UpInArms]

74. 3:10 EST DOW still bleeding

Dow 10,222.03 -59.07 (-0.57%)
Nasdaq 2,083.07 +14.96 (+0.72%)
S&P 500 1,180.53 +2.73 (+0.23%)
10-Yr Bond 4.386 -0.73 (-1.64%)

NYSE Volume 1,966,426,000
Nasdaq Volume 1,467,044,000

3:00PM: Moving lower since the last comment, the Dow retains its negative stance but has still magaged to halve its lunchtime low. While 11 of the average's 30 components extend losses, Caterpillar remains the primary culprit behind its performance. Aside from the Nasdaq and S&P posting solid gains, the market's breadth reveals an underlying sense of bullishness that Caterpillar's decline mutes. Presently, advancers have an 11-to-5 edge over decliners on the NYSE; on the Nasdaq, advancers outpace decliners 18-to-11.NYSE Adv/Dec 2197 /1025, Nasdaq Adv/Dec 1775/1137

[UpInArms]

77. Derivatives group creates protocol for Delphi

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-21T183950Z_01_N21668718_RTRIDST_0_AUTOS-DELPHI-ISDA.XML

NEW YORK, Oct 21 (Reuters) - The International Swaps and Derivatives Association said on Friday it has created a protocol that will allow some buyers of protection against bankrupt Delphi Corp. (DPHIQ.PK: Quote, Profile, Research) to settle the contracts with cash payments.

Some credit derivatives players had been concerned that the auto supplier's bankruptcy would pose challenges to the credit derivatives market, because the amount of protection sold on Delphi in credit derivatives likely dwarfs the amount of its debt.

When a default occurs, buyers of credit protection usually turn over bonds or loans to the seller of protection and receive the par amount in cash. In many cases protection buyers do not own the debt and have to purchase -- a situation likely to create a bond squeeze.

Delphi filed for Chapter 11 bankruptcy protection on October 8, hurt by high wage and benefits costs.

Under the protocol, investors in index or tranche trades including Delphi will not be required to deliver the bond, but may instead settle the contract with a cash payment, ISDA said.

...more...

Building a better bet? :eyes:

[ozymandius]

80. closing numbers

I've come up with a new name for a color: Dow Red.

Dow 10,215.22 -65.88 (-0.64%)
Nasdaq 2,082.21 +14.10 (+0.68%)
S&P 500 1,179.59 +1.79 (+0.15%)
10-Yr Bond 43.90 -0.69 (-1.55%)
NYSE Volume 2,435,272,000
Nasdaq Volume 1,771,182,000

blather to come

[ozymandius]

81. and the blather

Have a great weekend folks! Ozy :hi:


Trading at opposite ends of the spectrum today, the Dow and Nasdaq were driven by an opposing pair of reports. Enthusiasm that Google (GOOG) kindled yesterday evening with its remarkable third quarter set an early bullish stage, but the disappointment delivered by Caterpillar quickly countered traders' tone and catalyzed yet another down day for the Dow. Google, for its part, reported net earnings that grew over sevenfold, posted EPS that blew away the Street by $0.16, and saw a 12% surge in its shares. Caterpillar, meanwhile, missed EPS expectations by $0.12 and added to the list of Dow components that have issued Q4 guidance below expectations. The resulting 10% drop in its shares stood almost solely responsible for stunting the overall market today, as traders appeared to turn some attention towards the steady stream of upside Q3 reports. The trend of two-thirds exceeding expectations continued today, but nonetheless still lies in the shadows of forecasted Q4 earnings declaration - which is still expected to reflect double-digit growth - and disappointing guidance. As such, Pfizer's shares took another hit today, and served as a secondary drag on the Dow. Its decline coupled with weakness in Wyeth (WYE) to take Healthcare down 0.7%. Despite having beaten Q3 earnings estimates by a nickel, in-line FY05 guidance dissatisfied traders. In terms of the laggards, the sector's decline was trumped by Industrials' 0.8% loss. As Caterpillar was responsible for its decline, surging Robert Half (RHI) shares, in the wake of its upside earnings news, and soaring airlines issues helped minimize the sector's slide. Another series of pullbacks in energy prices reversed late in the day, adding to wide-spread selling in the Consumer Discretionary sector (-0.2%) to close it below the flat line. Although crude spent most of the session below $60.00/bbl, further profit-locking within the Energy sector (+0.7%) was halted as traders perhaps seized bargains left in the wake of recent declines. In terms of sector standing, Telecom stole the show for the second straight session, rising 2.1% and fueled by upside earnings-induced jumps in Alltel (AT 60.20 +1.54) and AT&T (T 18.92 +0.34), as well as by respectable follow-through buying interest in SBC (SBC). The trio of performances simultaneously upheld the Tech sector, but, despite their contributions and despite the attention Google's report directed towards the Tech sector, it closed with a modest 0.3% gain. Tech was also home to one of the day's brightest spots - SanDisk (SNDK) - but selling pressure within shares of several bellwethers helped cap the sector's rise. For its part, SanDisk posted profit that nearly doubled, beat estimates by $0.19 this morning, and extended a gain in excess of 20%.NYSE Adv/Dec 2133/1120, Nasdaq Adv/Dec 1804/1159

[AnneD]

83. Right back atcha kid...

Thanks for keeping up such a fun thread. Who knew you could keep up to date in economics, learn something new every day, and have fun too. Cheers :toast: