STOCK MARKET WATCH, Wednesday 4 January

[ozymandius]

Wednesday January 4, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 18 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1840 DAYS
WHERE'S OSAMA BIN-LADEN? 1539 DAYS
DAYS SINCE ENRON COLLAPSE = 1501
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
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 January 3, 2006

Dow... 10,847.41 +129.91 (+1.21%
Nasdaq... 2,243.74 +38.42 (+1.74%)
S&P 500... 1,268.80 +20.51 (+1.64%)
10-Yr Bond... 4.37% -0.03 (-0.57%)
Gold future... 532.50 +13.60 (+2.55%)






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. Today's Reports

12:00 AM Auto Sales Dec
Briefing Forecast 5.8M
Market Expects 5.7M
Prior 5.5M

12:00 AM Truck Sales Dec
Briefing Forecast 7.7M
Market Expects 7.6M
Prior 7.0M

10:00 AM Factory Orders Nov
Briefing Forecast 2.6%
Market Expects 2.4%
Prior 2.2%

[UpInArms]

22. Manufacturing Orders "flat" for November

10:00am 01/04/06 U.S. NOV. INVENTORY-TO-SALES RATIO HOLDS AT 1.18

10:00am 01/04/06 U.S. NOV. MOTOR VEHICLE ORDERS FALL 7.8%

10:00am 01/04/06 U.S. NOV. INVENTORIES RISE 0.2%

10:00am 01/04/06 U.S. NOV. TRANSPORTATION ORDERS RISE 15.8%

10:00am 01/04/06 U.S. NOVEMBER FACTORY ORDERS RISE 2.5%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38721.4168781944-856193744&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Orders for U.S.-made factory goods rose 2.5% in November, led by a nearly 16% jump in demand for transportation equipment, the Commerce Department said Wednesday. The rise was slightly higher than economists expected. October orders were revised to rise 1.7% after initially estimated to climb 2.2%. Excluding transportation equipment, manufacturing orders were flat in November. Orders for motor vehicle bodies, parts and trailers fell 7.8%. Inventories rose 0.2%, while total unfilled orders climbed 3%. The inventory-to-sales ratio held at 1.18 for the third consecutive month.

[UpInArms]

42. Factory Orders Boosted in November by Aircraft

http://www.bloomberg.com/apps/news?pid=10000087&sid=aXfIvuxYqsS4&refer=top_world_news

Jan. 4 (Bloomberg) -- U.S. factory orders increased in November, aided by surging aircraft bookings that offset the biggest decline in business equipment demand since July.

The 2.5 percent jump in orders placed with manufacturers followed a 1.7 percent October rise, the Commerce Department said today in Washington. Excluding transportation equipment such as planes, bookings were unchanged for a second month.

The decrease in business equipment orders suggests companies were hesitant about expanding as consumer spending slowed last quarter. Manufacturing tapered off at the end of 2005 following a stretch of inventory additions and rebuilding after two hurricanes, a report showed yesterday.

``Business spending on capital goods away from aircraft has downshifted from the flood of new orders'' earlier in 2005, said Chris Rupkey, senior financial economist at Bank of Tokyo- Mitsubishi Ltd. in New York. ``An air of caution entered the boardroom at the end of 2005.''

...more...

[UpInArms]

34. Ford sales drop 4.9% - DaimlerChrysler sales rise 4%

http://www.marketwatch.com/news/print_story.asp?print=1&guid={C2BAD877-2983-4978-9BAE-056E3866C665}&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Ford Motor Co. on Wednesday said it sold fewer trucks last year than it did in 2004, even as car sales rose for the first time since 1999. At the same time, rival DaimlerChrysler posted a year-over-year increase.

Overall, Ford (F) posted a 4.9% decline in 2005 U.S. sales to nearly 3.17 million vehicles, with a 2% gain in car sales more than offset by an 8% dip in trucks amid record gas prices.

The ailing Jaguar brand saw its sales clipped by a third, to 30,424 vehicles, in 2005, while Land Rover turned in the best performance by brand, up 30% to 46,175. Mercury was the only other Ford nameplate to show an annual sales increase.

For December, unit sales fell 9% to 267,881 from last year, with cars off 5.8% and trucks down 10.2%. Analysts polled by Thomson First Call had forecast a sales decline, on average, of 11.2%, with targets ranging from down 4% to off 19%.

Separately, DaimlerChrysler (DCX) posted a 4% rise in 2005 U.S. auto sales to nearly 2.43 million vehicles sold.

In the last month of the year, sales fell 2% from a year ago to 220,641 cars and trucks. The Chrysler side posted a 5% drop in December to 189,449 vehicles, while the Mercedes-Benz division turned in a 17% surge to 31,192.

Last month, the total sales rate came in at 15.74 million vehicles, an improvement from 14.75 million in November, which marked the lowest monthly totals since 1998, according to Autodata. Wall Street forecast that number to grow to 16.8 million for December, still off the year-ago pace of 18.4 million. See full story.

...more...

[UpInArms]

43. GM sales fall 10.3% vs yr ago

1:59pm 01/04/06 GM 2005 U.S. PONTIAC SALES DOWN 7.7%

1:58pm 01/04/06 GM 2005 U.S. OLDSMOBILE SALES DOWN 93.5%

1:58pm 01/04/06 GM DEC. U.S. OLDSMOBILE BRAND SALES DOWN 87.9%

1:59pm 01/04/06 GM DEC. U.S. ISUZU BRAND SALES DOWN 11.4%

1:59pm 01/04/06 GM 2005 U.S. ISUZU SALES UP 0.5%

1:59pm 01/04/06 GM DEC. U.S. PONTIAC BRAND SALES UP 1.2%

1:57pm 01/04/06 GM DEC. U.S. CHEVROLET BRAND SALES DOWN 11.8%

1:57pm 01/04/06 GM 2005 U.S. GMC SALES DOWN 5.9%

1:58pm 01/04/06 GM DEC. U.S. GMC BRAND SALES DOWN 17.2%

1:58pm 01/04/06 GM 2005 U.S. HUMMER SALES UP 93.3%

1:58pm 01/04/06 GM DEC. U.S. HUMMER BRAND SALES UP 111.8%

1:56pm 01/04/06 GM 2005 U.S. BUICK SALES DOWN 8.8%

1:55pm 01/04/06 GM DEC. U.S. TRUCK SALES DOWN 4.9% VS YR AGO

1:55pm 01/04/06 GM 2005 U.S. TRUCK SALES 2.77M VS 2.82M

1:55pm 01/04/06 GM DEC. U.S. TRUCK SALES 260,354 UNITS VS 273,867 UNITS

1:54pm 01/04/06 GM DEC. U.S. CAR SALES DOWN 19.4% VS YR AGO

1:55pm 01/04/06 GM 2005 U.S. CAR SALES 1.75M VS 1.89M

1:55pm 01/04/06 GM DEC. U.S. CAR SALES 131,687 UNITS VS 163,294 UNITS

1:55pm 01/04/06 GM 2005 U.S. TRUCK SALES FALL 2%

1:53pm 01/04/06 GM 2005 U.S. SALES FALL 4%

1:53pm 01/04/06 GM DEC. U.S. TOTAL SALES DOWN 10.3% VS YR AGO

1:54pm 01/04/06 GM 2005 U.S. SALES 4.52M VS 4.71M

1:54pm 01/04/06 GM 2005 U.S. CAR SALES FALL 7.1%

1:54pm 01/04/06 GM DEC. U.S. TOTAL SALES 392,041 UNITS VS 437,161 UNITS

[ozymandius]

2. Factories cool but construction ramps up

NEW YORK (Reuters) - U.S. factories cranked out goods at a much slower pace than expected in December, while spending on construction edged up to a record in November, reports on Tuesday showed.

The cooling in the manufacturing sector -- one of the economy's strongest performers -- pointed to more subdued economic growth ahead and little need for more rate hikes from the
Federal Reserve.

Indeed, the minutes from the Fed's last meeting on December 13, released on Tuesday, showed policy-makers aimed to signal that a 1-1/2 year rate rise campaign was likely near its end.

more...

[ozymandius]

3. Oil Prices Dip Below $63 a Barrel

SINGAPORE - Oil prices retreated below $63 Wednesday after rising more than $2 a barrel on the previous day amid speculative buying.

Light, sweet crude for February delivery was down 16 cents to $62.98 a barrel on the New York Mercantile Exchange in Asian electronic trading. Heating oil dipped slightly to $1.7925 a gallon, while gasoline dropped one cent to $1.74 a gallon.

Natural gas futures fell 22 cents to $10.4 per 1,000 cubic feet following Russia's efforts to ensure gas supply despite a pricing dispute with Ukraine. On Tuesday, European buyers of OAO Gazprom's natural gas said they had started receiving full supplies after the Russian monopoly increased shipments through Ukraine.

-cut-

Some investors looking for better returns than U.S. stock markets have delivered in the past year are piling into energy futures, creating unusually high demand for crude oil, gasoline and heating oil contracts.

more...

[ozymandius]

4. Bernanke may have to grow up fast

NEW YORK (CNNMoney.com) - Alan Greenspan was Fed chairman less than 10 weeks when he faced his first major test -- the stock market crash of 1987.

Hopefully, any test incoming Fed chairman Ben Bernanke faces this year will be less severe.

But economists say there are several issues looming that could pose their own challenges for the man slated to succeed Greenspan on Feb. 1.

How Bernanke responds to these or other unforeseen problems will tell a lot about how successful he is as the nation's top central banker. And while several Fed watchers say he's up to the task, even his fans admit they can't be sure until he faces -- and passes -- one of these tests.

more...

[Tace]

5. MOGAMBO: 'Hahaha! You Were Killed By Your Own Banks, You Stupid Morons!'

Richard Daughty -- World News Trust
email: [e-mail]

I was, as I do every year, trying to get really stinking drunk after Christmas, trying to forget the bitter disappointment of Santa, who, as usual, brought me NOTHING that was on my list, including the stuff at the freaking TOP of the list, like a young and beautiful trophy wife who begs me not to hate her because she is rich, no frozen pizzas loaded with pork products, no flame throwers or armaments of any kind. I was still, unfortunately, still sober enough to be shocked when I saw that Total Fed Credit expanded by a whopping $9.2 billion last week, and my face drained of blood when I saw that Currency in Circulation jumped by an incredible $8.2 billion last week, too. Gulp.

Through bleary eyes I noted that the Required Reserves at the banks fell to an astonishingly low $41.8 billion. Being at the end of the year, perhaps it is customary to look back and see what bank reserves were a year ago. Hmmmm. It looks like it averaged about the same $41.8 billion! Now let's take a look at the assets and liabilities of the banks, against which these reserves are supposed to provide a cushion against loans going bad and depositors wanting their money back and The Mogambo cashing bad checks all over town. Hmmmm. I see that in Loans and Leases alone, the banks are up almost $2 trillion! About 50% more! In one year!

And savings deposits (which is the few paltry dollars that that we somehow managed to keep away from the luxuriating "family," all the time with their incessant whining "We're cold and hungry! We're cold and hungry! Waaa waaa waaa!" like I am supposed to, I guess, go out and spend precious money on food and heat, like I am some kind of Mister Moneybags or something), is up a cool trillion dollars in the last year, too. And yet, rubbing my forehead in a vain attempt to comprehend the situation, against all of this trillions of dollars of vastly increased risk exposure and liability, Required Reserves have not increased so much as a lousy dime? Nada? Zipola? It just goes to prove that The Mogambo was right when he said that financial crises are always caused by banks, the greedy, grubby and gangrenous banks, getting themselves in trouble by acting irresponsibly and allowing others to act irresponsibly, too, and ruining everyone and everything else in the process.

Speaking of banks ruining everything, thanks to ContraryInvestor.com we now have the Office of the Comptroller of the Currency noting that, "But it's at the top of the credit cycle where stresses and weaknesses typically appear, so what we are seeing today should not surprise anyone." I jump to my feet and shout, "Not to anyone who has ever read history!"

more

http://worldnewstrust.org/modules/AMS/article.php?storyid=2031

[UpInArms]

6. daily dollar watch

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

Last trade 89.35 Change -0.20 (-0.22%)

Dollar Sees Largest One Day Slide in 4 Years

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/5806_dollar_sees_largest_one_day_slide_in_4.html

US Dollar
On the first day of official trading in 2006, the dollar has weakened significantly against the majors, with the dollar index seeing its largest one day decline since September 11, 2001. Given that a new year long uptrend began on the first trading day of last year, we wonder if today’s breakout move would be indicative of a new trend that may be emerging this year. So far, the cards are stacking higher against the dollar, but with a busy week ahead and Greenspan bowing out at the end of this month, it remains to be seen if the current downside momentum can be sustained. Today, the combination of weaker economic data, dovish FOMC minutes and higher oil prices all weighed on the greenback. The national ISM manufacturing activity index slipped to 54.2 from 58.1. The market was only expecting a moderate retracement to 57.4, but broad based weakness dragged the overall index lower, raising concerns about whether the sector is growing fast enough to spur job growth. Construction spending hit a new record high in the month of November, but with only a 0.2 percent rise, the growth was far below the market’s 0.7 percent forecast and slower than the previous month’s 0.8 percent growth. Oil prices are up close to $2 following the Russian – Ukraine gas dispute that disrupted flow to most of Western Europe. Although gas supplies to Europe have since returned to normal, this is a far more deep seeded conflict that could resurface since Russia is adamant about increasing prices to the Ukraine while the Ukraine acts as Russia’s doorway to Europe. 90 percent of Russia’s gas exports pass through Ukraine, supplying 40 percent of the EU’s oil. At present, it seems that Russia is only siphoning out enough oil to meet their customers’ needs, leaving no spare supply for the Ukraine. For the time being, the Ukraine has enough supplies to last for a few weeks which will keep oil speculators at bay and this issue on the back burner, but if they exhaust that supply and resort to extracting oil from the pipeline before negotiations are completed, Russia would accuse them of stealing the oil and we could see another shock to oil markets once again. In the meantime, the bigger focus continues to be the Fed. The FOMC minutes released today reflected the varying views on the degree of future rate hikes. Additional increases “probably would not be large” and “members thought that the policy outlook was becoming considerably less certain.” With the yield curve inverting last week and now near flat, the Jan 31 rate hike could be the last one before we see a pause. If so, then today’s move could very well be indicative of a new trend this year.

...more...

[UpInArms]

41. Is the buck toilet-bound?

Last trade 89.08 Change -0.47 (-0.52%)

Open 89.55 Previous Close 89.55

High 89.87 Low 89.01

2006-01-04 13:19:14, 30 min delay

[UpInArms]

7. US home loan applications fall 4th straight week

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-04T121143Z_01_N04316988_RTRIDST_0_ECONOMY-MORTGAGES-UPDATE-1.XML

NEW YORK, Jan 4 (Reuters) - U.S. mortgage applications fell for a fourth straight week as a robust rebound in loan refinancings failed to lift activity from more than a 3-1/2-year low, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Dec. 30 decreased 1.5 percent to 545.9 from the previous week's 554.1. Volume was at its lowest level since the week ended May 24, 2002, when the index reached 516.9.

The group's seasonally adjusted index of refinancing applications increased 8.3 percent to 1,363.2 compared with 1,259.1 the previous week. The index rose for the first time in four weeks.

Volume, however, was at its lowest level since the week ended June 4, 2004, when the index reached the same point.

A steady fall in interest rates on fixed-rate loans have led borrowers to refinance out of their existing adjustable-rate mortgages into fixed-rate loans last week.

...more...

[converted_democrat]

14. Good morning to ya, UIA....

:hi:
How are you this glorious morning?? You may be wondering why I'm in such a good mood after our discussion yesterday..You know that "writing" I did...I read it to Hubby..and he cried..He told me to call up my Mom and read it to her..So, I did..She was weepy by the end, and then handed the phone to my Dad while saying "Listen to what your daughter wrote, you're going to be very proud of her." I read it to him, and he said.."Kiddo, I had no idea you felt this way..Thank you for the reality check about the real issues here..I'm really proud of you." Now, I realize that these aren't "gushing" reviews, but my Dad hasn't said he was proud of me since I was 10, and I fell off a horse I was breaking, and it trampled me to the tune of 15 stitches and a compound fracture in my arm..And I didn't "cry" the entire time..So, in essence the last time he said he was really proud of me was at 10, because I didn't cry after being trampled by a horse...It really meant alot for me to hear those words from him....He's proud of me.. Even though I hate their politics, it was so cool that I got through to them..And they liked it..I'm feeling a bit more hopeful about the future of our nation this morning.. Thank you..Thank you for helping me find my voice..Thank you from the bottom of my heart.


:party:

[UpInArms]

16. Now THAT is definitely more than a

"good morning" message!

:hug:

When you can reach through and get people to understand that we all are trying to do what is good for this country, the divisions will melt away and the real enemies will be revealed. That kool-aid has been very powerful and the past 30 years of mind-control and programming with buzzwords has left a large portion of our country unable to think for themselves and turn away from the darkside.

I'm proud of you, not only for your words, but for who you are.

:pals:

[converted_democrat]

18. Thank you...

If you had not taken me under your wing, and helped me understand that it was "okay" to just be myself, I wouldn't be who I am today. You gave me my voice, and you gave me the courage to stand for what I believe in.. Thank you from the bottom of my heart..

:hug:


:yourock:

[AnneD]

20. Morning Marketeers,

:donut: And a special G'day to you converted dem. What a special moment. I find myself more and more outspoken re: what has happened to our country. We are certainly bigger than our leaders-and to put a cowboy (or cowgirl) spin, they are all hat no cattle and need to be hung on a tall tree with a short rope. In order to retain their power, they have to keep us divided. Once the truth comes out...it is hard to defend their actions. Kudos to you. Maybe you can share parts of you letter sometime-or post it on DU.
Happy hunting and watch out for the bears.

[converted_democrat]

23. Check your inbox.. I sent it to you...

on edit- I can't post it on here..It's a long story, but I can't post it here..So, I sent it to your inbox..

[AnneD]

24. Thanks...

look forward to the read...

[UpInArms]

8. Politicians take cover as lobbyist prepares to talk

http://smh.com.au/news/world/politicians-take-cover-as-lobbyist-prepares-to-talk/2006/01/04/1136050496869.html

UP TO 20 members of the US Congress may eventually face criminal charges after the powerful Republican lobbyist Jack Abramoff pleaded guilty to fraud and conspiracy charges and agreed to co-operate with federal prosecutors conducting a wide-ranging corruption and bribery investigation.

<snip>

Among those under threat is the former Republican leader of the House of Representatives, Tom DeLay, already facing charges of money laundering. DeLay once described Abramoff as "one of my closest friends".

Three other senior Republicans - Bob Ney, John Doolittle and Conrad Burns - are already facing serious allegations of misconduct.

<snip>

Abramoff, 47, who was the most powerful and influential lobbyist in Washington until he was indicted on more than a dozen charges of fraud and other offences six months ago, had organised political contributions to 220 members of Congress totalling about $US2 million between 2001 and 2004.

Some 201 of them are still in Congress, most of them Republicans. Since Abramoff was indicted, most have been desperately trying to find ways of returning the donations.

...more...

[UpInArms]

12. Records show at least 200 contacts with *Co administration by Abramoff

http://www.usatoday.com/news/washington/2006-01-04-abramoff-q-a_x.htm

excerpt:

A: Though many lawmakers and Bush administration officials deny knowing Abramoff, lobbying invoices for 2001 alone show more than 1,000 contacts between his lobbying team and members of Congress and at least 200 with the Bush administration in Bush's first 10 months in office. Campaign reports show hundreds of thousands of dollars flowing from Abramoff, his associates and clients to politicians' campaigns and political action committees, often around the time lawmakers took action on behalf of Abramoff's clients.

A former Bush administration official already has been charged in the case. David Safavian, the government's former chief procurement official, a former Abramoff lobbying colleague and a former aide to Utah Republican Rep. Chris Cannon, is accused of hiding from investigators the fact that Abramoff was trying to get government business when Safavian, then a General Services Administration official, went on a golf trip with him to Scotland in 2002.

Q: How many politicians are involved?

A: The corruption investigation is believed to be focusing on as many as 20 members of Congress and aides, including former House Majority Leader Tom DeLay, R-Texas, and House Administration Committee Chairman Bob Ney, an Ohio Republican.

...more...

[UpInArms]

25. Tony Snow, Brit Hume and Chris Matthews tied to Abramoff

http://www.hollywoodreporter.com/thr/article_display.jsp?vnu_content_id=1830226

excerpt:

It's called the Interactive Spy Game Gala. Scheduled for March 26 at the International Spy Museum in Washington, the event's purpose is to raise about $300,000 for the Capital Athletic Foundation, a 4-year-old charity effort run by Abramoff that awards grants to boys and girls clubs, youth soccer organizations and others that help at-risk youth through organized sports.

<snip>

Being honored at the gala with the Capital Athletic Foundation's first lifetime achievement award is full-time philanthropist James Kimsey, the founding chairman of America Online. If the name's not immediately familiar, perhaps it's because Kimsey joined what's now AOL Time Warner before America Online existed. He was there even before there was a Quantum Computer Services, which was AOL's predecessor.

<snip>

Fox News Channel's Tony Snow is master of ceremonies, and Fox's Brit Hume and MSNBC's Chris Matthews are aboard. Opera great Placido Domingo is an event committee member. But, this being Washington, the event will be mostly populated by powerful lawmakers, including Rep. Tom DeLay, R-Texas; Sen. Rick Santorum, R-Pa.; and Rep. Dana Rohrabacher, R-Calif.

"The Spy Museum is wonderful. So many people want to see it," says Julie Doolittle, the foundation's director of community relations.

Being the wife of Rep. John Doolittle, R-Calif., she has been to many a Washington function. She promises that the March 26 spy game will be unlike other Capitol Hill gatherings.

...more...

[UpInArms]

36. Abramoff scandal sends waves across Washington

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-01-04T174511Z_01_N04369614_RTRIDST_0_CRIME-ABRAMOFF-CONGRESS.XML

WASHINGTON, Jan 4 (Reuters) - Lobbyist Jack Abramoff's guilty plea in a U.S. corruption probe sent shock waves across Washington on Wednesday as top Republicans sought to avoid being tainted by the scandal and Democrats pressed the issue.

President George W. Bush and House of Representatives Speaker Dennis Hastert of Illinois were among Republicans who donated to charity campaign contributions they had received from Abramoff, while Democrats said the issue would loom large in November's congressional elections.

<snip>

Abramoff's cooperation makes the Justice Department's case much easier, a former prosecutor said.

"The real issue is intent -- what was the intent with which an official committed an act?" said Roma Theus, a Florida lawyer who prosecuted corruption cases with the Justice Department. "Testimony of an insider is critical, because it shows what the actual mind-set was, the thought process was."

...more...

Q: If a "fence" is caught with stolen goods, are not those goods confiscated and the fence is prosecuted for selling such?

Giving those ill-gotten funds to "charity" reeks - these people need to put that money in the hands of a trustee for those that have been robbed blind and then the ones having the dye from that money on their greedy mitts need to be prosecuted to the full extent of the law.

[UpInArms]

39. Shivers on Capitol Hill: Lobbyist agrees to testify

http://www.indystar.com/apps/pbcs.dll/article?AID=/20060104/NEWS06/601040436/1012

WASHINGTON -- The nation's capital braced Tuesday for a mushrooming political scandal after a well-connected lobbyist pleaded guilty to federal criminal charges and prepared to testify about members of Congress caught in his web of corruption.

Jack Abramoff, 46, apologized and pleaded guilty before a federal judge to one charge each of conspiracy, mail fraud and tax evasion. He faces a maximum of 30 years in prison.

Now it is likely that Abramoff will help federal prosecutors go after as many as 20 members of Congress -- expected to be mostly Republicans but likely a few Democrats as well.

"This is going to grow and multiply," said Bill Mateja, a former top official in the Bush Justice Department who is now a Dallas lawyer. "If I were on Capitol Hill, I would be shaking in my boots. Because if anyone knows where the skeletons are buried, it's Jack Abramoff."

<snip>

Abramoff also admitted defrauding four Indian tribes and other clients, taking millions in kickbacks from a one-time business partner, misusing a charity (Capital Athletic Foundation) he had established and failing to pay income taxes on millions of ill-gotten gains.

...more...

http://www.washingtonpost.com/wp-dyn/content/article/2005/12/28/AR2005122801588_pf.html

excerpt:

The nonprofit Capital Athletic Foundation, for example, allowed him to schmooze with Washington's movers and shakers at charity affairs. He put a congressional spouse -- Julie Doolittle, wife of the California lawmaker -- on his payroll to plan at least one event. The congressman's office has said that there was no connection between his wife's work and official acts.

The foundation was ostensibly created to help inner-city children through organized sports. There is no evidence money went to city kids, but the foundation did fund some of Abramoff's pet projects: a sniper school for Israelis in the West Bank, a golf trip to Scotland for Ohio congressman Ney and others, and a Jewish religious academy in Columbia that Abramoff founded and where he sent his children to be educated.

Another Abramoff financial vehicle was the nonprofit American International Center, a Rehoboth Beach, Del., "think tank" set up by Scanlon, who staffed it with beach friends from his summer job as a lifeguard. The center became a means for Abramoff and Scanlon to take money from foreign clients that they did not want to officially represent. Some of the funds came from the government of Malaysia. Banks and oil companies there were making deals in Sudan, where U.S. companies were barred on human rights grounds. Sudan was among several oil-rich nations in Africa, Asia and the Middle East that Abramoff eyed as venues for lucrative energy deals. Abramoff told associates he wanted to become a go-to person for U.S. companies seeking to do business with oil-patch nations.

...more...

[RawMaterials]

9. Copper Rises to Record in London as Chilean Miners Plan Strike

Jan. 4 (Bloomberg) -- Copper advanced to a record in London as workers planned to strike at Chile's Codelco, the world's largest copper producer, threatening to reduce supplies amid forecasts of a production shortfall for 2006.

A group of 28,000 contract workers are asking for a bonus of 50,000 pesos ($963) from the Santiago-based state company after copper prices rose 40 percent in 2005. President Ricardo Lagos said yesterday the government won't pay the bonus.

The strike ``is just another reason to buy more copper,'' said Andrew Silver, a trader in London at Natexis Metals, one of the 11 companies that trade on the floor of the London Metal Exchange, in a telephone interview. ``This is already a fantastic commodity market.''

Copper for delivery in three months on the London Metal Exchange traded as high as $4,550 a metric ton, beating by $32 the previous record set on Dec. 28. The metal gained $105, or 2.4 percent, to $4,545 a ton as of 10:01 a.m. London time.

snip..

Speculative Investors

Copper users may fill the shortfall with inventory. Stockpiles tracked by the London Metal Exchange rose 4.3 percent to 96,175 tons, the exchange said today in a daily report. Inventory monitored by the LME and commodity exchanges in New York and Shanghai is 161,530 tons.

Pension funds and speculative investors such as hedge funds are buying more metals and other commodities after the asset class outperformed other types of investments in 2005. Copper, aluminum and other base metals climbed yesterday as investment funds put more money into metals, said Gordon Buchanan, a trader in London at Stratton Metal Resources.

``There are quite a few pension funds in the U.S. that have been given the green light,'' Buchanan said yesterday in a telephone interview.

Aluminum prices rose to a 17-year high on the LME. The lightweight metal, used to make beverage cans, gained $25, or 1.1 percent, to $2,308 a ton. Earlier it traded at $2,310.50, the highest since January 1989.

Zinc increased $12 to $1,935 a ton after trading at $1,948, the highest in 17 years. Lead rose $11 to $1,088, nickel gained $150 to $14,050 and tin climbed $75 to $6,725




http://www.bloomberg.com/apps/news?pid=10000086&sid=aP9F7esgrBU4&refer=latin_america

morning marketers :hi:

[RawMaterials]

10. European Inflation Exceeds ECB Target for 11th Month (Update1)

Jan. 4 (Bloomberg) -- Inflation in the dozen nations sharing the euro remained above the European Central Bank's target for an 11th month in December, reinforcing the likelihood of higher interest rates this year.

snip..

``Inflation is still above target and as long as the economic data keeps coming in strong we expect the ECB will raise rates,'' said Matthias Rubisch, an economist at Commerzbank AG in Frankfurt.

The ECB on Dec. 1 raised the benchmark refinancing rate for the first time in five years, increasing it to 2.25 percent from a six-decade low of 2 percent. Crude oil prices reached a record high of $70.85 a barrel in August before easing price pressures by declining 12 percent since. Today's figure showed inflation slowed for a third month in December and is now the lowest since August.

snip..

The ECB remains concerned that as economic growth in the euro region gathers pace, prices will rise faster as companies and workers try to compensate for higher energy costs. The bank, whose primary mandate is fighting inflation, expects consumer prices to rise about 2.1 percent in 2006, exceeding its ceiling for a seventh year.

Government and industry reports yesterday showed that economic growth is strengthening. European manufacturing grew at the fastest pace in 16 months in December and German unemployment dropped the most in more than 15 years.

The ECB's 18 rate-setting governing council is next scheduled to decide on rates on Jan. 12 in Frankfurt. Eurostat will release a more detailed inflation report on Jan. 19.

http://www.bloomberg.com/apps/news?pid=10000100&sid=akKxhq6crz0o&refer=germany

[RawMaterials]

11. Gold Smashes Dollar in 2006

The boys on CNBC were back at it again on Tuesday. The cheerleading anchors couldn't wait to start the year off on a high note for the equity markets. After all, there is speculation that we are nearing the end of the Fed rate hike cycle which equates to nothing but blue skies ahead for equity markets. In addition, real estate has cooled off which means that mom and pop may choose to reallocate their savings to stocks rather than investment properties. Finally, stocks haven't moved anywhere in two years, so it is only logical that they should be ready to take off again. Ahh, optimism is in the air!

Let's break down these assumptions one by one:

Rates - Allowing mild inflation (loose monetary policy) is always more politically acceptable than credit-crunching deflation (tight monetary policy). So in the short run, it is very possible that the Fed will stop hiking or even start cutting should the economy slow. This is the consensus view on Wall Street and we think it is a reasonable one. In the long run, however, we see rates reverting back to their mean, which on the 10-yr is approximately 7% since 1960 - this not good for overpriced stocks and bonds.

Real Estate - The notion that real estate has moderated is balderdash. If an overvalued sector becomes more overvalued but at a slower rate, it still is a bubble. Mom and pop will not pull out of real estate until we start to see meaningful depreciation in property prices nationwide. Yes, Miami, Las Vegas, California and New York are all out of control, but a true real estate slowdown will affect prices in every region.

Stocks - The market, which trades at a trailing P/E of 18x (20-40x for many techs and small caps), is not cheap on a historical basis. If the economy is at the end of the expansion cycle (as the yield curve predicts) then earnings will not see meaningful increases anytime soon.

One topic that seems to have been forgotten is the decline of the U.S. Dollar. While the greenback staged a moderate (10%+) recovery in 2005, it is still nowhere close to its highs versus the Euro & Yen. The Dollar did well in 2005 for a number of reasons, but two critical factors were the relative short-term interest rate differential and the American Jobs Creation Act, which encouraged multinational corporations to repatriate overseas cash into Dollars before year end. With rate hikes ending and the AJCA expiring, the U.S. Dollar should begin to resume its downfall. The greenback's fundamentals have gotten a lot worse over the last twelve months as both the U.S. trade and current account deficit have soared to record levels.

We think 2006 will be the year that the average investor wakes up to the U.S. Dollar's vulnerability and begins to use gold & silver as a way to protect his savings. The Euro & Yen have proven their fallibilities as hedges. Gold is now available to be purchased through two ETFs (tickers: GLD & IAU) with silver about to join.




http://www.321gold.com/editorials/texashedge/texashedge010406.html

[UpInArms]

21. Feb Gold @ $534.50 oz - March Copper @ $2.096 lb

9:53am 01/04/06 FEB GOLD CLIMBS $2 TO $534.50/OZ IN MORNING TRADING

9:53am 01/04/06 MARCH COPPER UP 2.3% AT $2.096/LB AFTER A RECORD $2.11

[UpInArms]

40. Feb Gold closes @ $535.60 oz (highest level since April 1981)

1:46pm 01/04/06 GOLD FUTURES CLOSE AT THEIR HIGHEST LEVEL SINCE APRIL 1981

1:46pm 01/04/06 FEB GOLD CLOSES AT $535.60/OZ, UP $3.10, OR 0.6%

[OrangeCountyDemocrat]

44. Sell Stocks = Get Cash = Buy Gold = Get Security nt

[UpInArms]

13. pre-opening blather

08:59 am : S&P futures vs fair value: +1.2. Nasdaq futures vs fair value: +2.5. Futures indications still suggest a flat open for the S&P, but the Nasdaq now heads for a slightly higher start. The Technology sector's 2% rise had been largely responsible for sustaining yesterday's afternoon rally, and may enjoy some extended buying interest today. Along with Google's early rise, upside Q4 and FY05 guidance from Tower Semiconductor (TSEM) may have helped catalyze bullishness across the tech board. On a separate note, the dollar made its biggest two-day drop in almost two years following yesterday's clue that an end to the current Fed tightening cycle is nearing. Rising interest rates have been supporting the buck's rise against major currencies.

08:30 am : S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: -20.5. The cash market remains poised to begin the session within proximity of the unchanged mark. Aside from the auto industry, pharmaceuticals may enjoy some added attention today, on the heels of yesterday's 2% surge; Pfizer (PFE), Merck (MRK), and Schering-Plough (SGP) are expected to give presentations at a Morgan Stanley conference. Also vying for some spotlight may be Google (GOOG), which has received an analyst upgrade, another target hike, and is set to unveil a $200 computer that does not use the Microsoft (MSFT) operating system.

[RawMaterials]

15. Hybrid Loan Time Bomb

The HeraldTribune is reporting the clock is winding down on the Hybrid Loan and Sub-Prime mortgage time bombs.

Starting in 2006 and accelerating into 2007, as much as $2.5 trillion worth of the fancy mortgages called "hybrids" are coming to the end of the free-lunch part of the deal. Economists are still trying to put numbers on this reset factor, particularly when it comes to the riskiest home loans, referred to as "sub-prime."

"We don't have enough data to know how big a problem this will be," said David Berson, chief economist at Fannie Mae, the nation's largest mortgage packager.

The ticking clock.

Sarasota's John Barron is typical of the new crop of homeowner-investors. He and his wife, Lauren Wood, are sitting on big profits at two 2004 purchases in the up-and-coming Gillespie Park neighborhood, close to downtown Sarasota.

But the couple made their big moves using ARMs that are about to be reset. If they don't act soon, their monthly bills will rise by hundreds of dollars per month. They used two separate three-year, interest-only, adjustable-rate mortgages from SunTrust Bank to buy the homes within the past two years.

"Besides the two ARMs, we also took out a home equity line on the Seventh Street house to put down a deposit on the Fifth Street house. There was no cash that we had in our pockets to put down on the Fifth Street house. All we had was our shining credit record. And the faith that the banks have in this real estate market that allows you to borrow 100 percent."

snip..

"I can say that the first half of this year, ARM share was 55 percent nationally," said SMR's George Yacik. "For the full year 2004, it was 50 percent." Making matters worse, it is the the sub-prime lenders issuing the most adjustable-rate mortgages. With those who participate in the survey, 80 percent of their loans were ARMs compared to 55 percent in the broader market.

Fannie Mae looked at 2002-2004 loan data to determine what portion of the existing loan pool would be "adjusted," and when. Fewer than 10 percent of the conventional conforming loans will reset in 2006-2007, but nearly two-thirds of sub-prime loans will. That is because a large portion of the sub-prime loans are two-year adjustables, says Berson, the Fannie Mae chief economist.


snipp..

So why bother with the ARM?

This is the key: The minimum payment today on a $200,000 option ARM would be only $678, a little more than half the cost on a 30-year, fixed-rate loan. On that $200,000 loan, a 30-year fixed would be $1,248 per month in principal and interest. With the option ARM, there are three other payment choices: $958, $1,167 or $1,661.

The $678 payment doesn't even cover all the interest, Bangasser acknowledged.

He guesstimated that if somebody borrowed $250,000 on a typical option ARM and made minimal payments for five years they would be "going to be in the hole 15 percent to 20 percent of your original balance, meaning $285,000 to $300,000."

"You don't have to have negative am," Grande said. "As long as you make that fully-indexed payment, you're fine. But most folks aren't doing that. They take the easy way out, get themselves in trouble."

There is one more ingredient to add to this layer cake, and it is one that barely occurs to most borrowers today: What if someday, loans were difficult to get?

"Consumers have become so accustomed to very liquid mortgage markets, where credit is available for almost any circumstance, that they are not aware this is unusual in the market," HSH's Gumbinger warned. "Somewhat tighter credit availability and somewhat higher interest rates are much more normal."

"Borrowers think they can always refinance. That is not always a safe bet."

http://www.321gold.com/editorials/shedlock/shedlock010406.html

[UpInArms]

17. Printing Press Report:Fed adds banking reserves via two-day system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-04T143514Z_01_N04342825_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Jan 4 (Reuters) - The Federal Reserve said on Wednesday that it added temporary reserves to the U.S. banking system through two-day system repurchase agreements.

The benchmark fed funds rate last traded at 4.25 percent, the Fed's current target for the overnight lending rate.

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

[UpInArms]

19. US Treasuries mixed after Fed hints at rate pause

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-01-04T144034Z_01_N04332676_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Jan 4 (Reuters) - U.S. Treasury debt prices were mixed on Wednesday as the effect of Federal Reserve minutes from its December policy meeting, which suggested a pause to U.S. rate increases, continued to ripple through the market.

The spread between 2- and 10-year bond yields widened further on Wednesday, though the market was also looking ahead to important data this week, particularly the government's report on non-farm payroll growth in December.

Data the market is expecting on Wednesday include U.S. November factory orders <USFORD=ECI>, due at 10 a.m EST (1500 GMT), and U.S. vehicle sales for December <USCAR=ECI>, which will be released throughout Wednesday's session.

The market remains convinced the Fed will raise rates at least one more time, at Chairman Alan Greenspan's final meeting on Jan. 31, and probably again at the March meeting, the first presided over by Ben Bernanke. But, beyond that, the market is not considering any further rate hikes as a given.

...more...

[54anickel]

27. Bonds Embrace Dovish Fed

http://www.thestreet.com/_pbear/markets/keynumbers/10259869.html

The spread between the two- and 10-year yields widened Tuesday after the release of the minutes of the Federal Open Market Committee's Dec. 13 meeting, which raised hopes that the central bank would soon end its rate hike campaign and boosted the short end of the curve.

After seesawing in afternoon trading, the benchmark 10-year ended the session up 6/32 to 101-2/32, to yield 4.36%, down from 4.39% Friday. Just before the minutes were released, the 10-year had given back all of the morning's gains as the market braced itself for the possibility of unexpectedly hawkish comments.

Instead, the possibility that rate hikes may soon be over and attendant inflation speculation weighed on the 30-year, which lost 8/32 to yield 4.55%, up slightly from 4.54% in the previous session.

In shorter-dated debt, the two-year gained 4/32 to yield 4.33%, and the five-year added 8/32 to yield 4.30%. This steepened the two- and 10-year yield spread by about 3 basis points, after hovering near 1 for most of the day. Bond prices and yields move in opposite directions.

Last week, the 10-year yield fell below that of the two-year for the first time since 2000 on speculation that the Fed would continue to raise rates to stay tough on inflation.

more...

[UpInArms]

33. Printing Press Alert: Fed buying coupons, adding permanent reserves

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-04T154507Z_01_N04365573_RTRIDST_0_ECONOMY-FED-COUPON-PASS.XML

NEW YORK, Jan 4 (Reuters) - The Federal Reserve said on Wednesday it was buying coupons in the open market, adding permanent reserves to the banking system.

The maturities purchased, for delivery on Jan. 5, range from May 15, 2010 to Feb. 15, 2013.

All callables and all Treasury Inflation Indexed Securities are excluded, the Fed said.

Fed funds were trading at 4.25 percent at the time of the operation, the Fed's current target for the rate.

Earlier, the Fed added temporary reserves to the banking system through two-day system repurchase agreements.

[54anickel]

26. Stocks Barely Move As Gains Are Digested

Heh-heh, should we really be way up here?

http://biz.yahoo.com/ap/060104/wall_street.html?.v=9

Stocks Barely Move As Traders Digest Tuesday's Gains After Fed Signals It May End Rate Hikes


NEW YORK (AP) -- Stocks barely moved Wednesday as traders digested Tuesday's gains, which followed the Federal Reserve's signal that it may be nearing the end of its streak of short-term interest rate hikes.

The day's scant economic news was mixed. While November orders to U.S. factories posted their biggest gain in three months, the increase came entirely from higher demand for commercial aircraft. Without transportation, orders were essentially unchanged, the fourth month of the past five that this broad category of the economy's health has either fallen or shown no growth.

Traders are quietly cheering for a minor economic slowdown, in the hopes that it will bring a quicker end to the Federal Reserve's interest rate hikes. The Fed has raised short-term interest rates 13 straight times in the past year-and-a-half.

more...

[54anickel]

28. Japan seeks free trade deals with China

http://www.chinadaily.com.cn/english/doc/2006-01/03/content_508882.htm

Japan is likely to pursue free-trade agreements with China and India as well as Australia to give it more clout in a proposed East Asian community, a leading Japanese daily reported on Tuesday.

Japan has been stepping up its pursuit of free-trade agreements (FTAs) but has signed only three to date. Many of the negotiations have faced difficulties because of Japan's highly protected agriculture sector.

The agreements are likely to be one part of a global economic strategy the Japanese government is expected to finalize around March, the Japanese daily Mainichi Shimbun said.

According to the paper, Japan plans to start FTA negotiations with India and Australia in 2007, and with China in 2009. It might also negotiate a trilateral deal with China and South Korea.

more...

[54anickel]

29. Six Asian Themes to Keep an Eye on in 2006

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_pesek&sid=aQ_rR04_dTLc

Jan. 4 (Bloomberg) -- Call it the prediction itch, a phenomenon that grows out of the media's sense of duty to presage the next 12 months.

In Asia, though, it may be best just to come clean: No one really has a clue what's in store for this increasingly eclectic, cacophonous and unpredictable region in 2006.

Who, after all, would have expected South Korean stocks to surge 57 percent in 2005, while the Dow Jones Industrial Average was almost unchanged? Or that a recovering Japan would see the yen slide 13 percent versus the U.S. dollar? Or that China's growth wouldn't slow, but actually accelerate?

How many thought a year ago that China would get away with a measly 2.1 percent revaluation in the yuan? Or that the Dec. 26, 2004, tsunami that killed 220,000 and displaced millions would be such a minor event for Asia's markets?

Well, here's a prediction anyway -- of six themes confronting Asia in the next 12 months.

more...

[54anickel]

32. Korea becomes king of derivatives hill

http://news.ft.com/cms/s/ab3fe208-7c8b-11da-936a-0000779e2340.html

South Korea’s strengthening economy, a soaring stock market and a population increasingly keen on new investment products have coincided to make it the world’s busiest market for equity derivatives.


Only a few years after stock index derivative products were introduced to Asia’s fourth largest economy, Korea has overtaken the US to record the highest turnover volumes globally, on the back of a stock market that repeatedly hit all-time highs last year.

“While the world has been focusing on the strong growth in China and India, 2005 has turned out to be the year of Korea,” says Andy Xie, chief Asia-Pacific economist at Morgan Stanley.

“Its stock market and currency have been the best performing in Asia. Its economy appears to be transitioning successfully from ‘developing’ to ‘developed’ – a change that, outside the west, only Japan has achieved to date,” he writes in a research report.

more...

Hmmm, might make the top of my list for the next currency crisis. There's got to be one brewing somewhere. The Won isn't pegged to the buck, is it? :shrug:

[54anickel]

30. Russia here to stay as energy superpower

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2006-01-03T145313Z_01_HO351431_RTRUKOC_0_US-RUSSIA-UKRAINE-DEPENDENCE.xml

"If this builds into a more major row, then you can't rule out some commercial impact. But I doubt this will happen -- the Russians are very sensitive about their image in Europe," said Jonathan Stern of the Oxford Institute of Energy Studies.

snip>

Gas monopoly Gazprom (GAZPPE.RTS: Quote, Profile, Research) warned on Tuesday there was still a risk of supply disruptions to Europe if Ukraine continues to expropriate Russian gas from the pipeline crossing its territory.

Europe relies on Russia for a quarter of its gas imports. Russia plans to increase its gas exports to Europe by a third to 200 billion cubic meters a year by 2020 but its market share will remain constant as European demand grows.

snip>

The country produces every tenth barrel of oil in the world and is the world's second largest crude exporter after Saudi Arabia, with supplies going mainly to Europe.

snip>

But companies' options are limited. The mature North Sea is starting to run out of gas and once self-sufficient Britain has now become a gas importer.

The main alternative is to import liquefied natural gas (LNG) from more distant producers such as Egypt, Nigeria and Qatar. Over 20 LNG import projects are planned in Europe.

more...

Here we go...resources are getting might scarce these days. :scared:

[54anickel]

31. 12:15 lunchtime check, then I've gotta run

Lots of work to do the next couple of weeks. It's a good thing I guess, keeps me busy and my mind off of my sorrows.

Dow 10,881.18 +33.77 (+0.31%)
Nasdaq 2,265.02 +21.28 (+0.95%)
S&P 500 1,274.77 +5.97 (+0.47%)
10-yr Bond 4.362% -0.01
30-yr Bond 4.546% -0.01
NYSE Volume 1,144,773,000
Nasdaq Volume 926,850,000

[UpInArms]

35. How much discounting drove holiday sales, analysts ask

http://www.marketwatch.com/news/print_story.asp?print=1&guid={716FCCD8-6E11-4AA5-A41C-B8C77F97E64D}&siteid=mktw

CHICAGO (MarketWatch) -- Investors will scrutinize retail-sales numbers due out Thursday for evidence of just how far discounting went in the final days of the holiday-shopping season.

The nation's largest retailers are expected to deliver a mixed bag of December numbers. Some specialty and big-box retailers likely did quite well, but others could report miserable figures, analysts believe. Still, the industry as a whole is expected to post reasonable results.

On Wednesday, the International Council of Shopping Centers said chain-store sales slipped in the final week of December by 0.8% but that for the month overall sales were on track to gain 3% to 3.5% over December 2004.

But at what price? If retailers cut prices to get items off the shelves, it means they trimmed profit margins in the process.

...more...

[UpInArms]

37. McAfee CFO charged with Revenue Inflation Scheme (1998-2000)

1:24pm 01/04/06 MCAFEE CHARGED WITH OVERSTATING REVS FROM 1998-2000

1:24pm 01/04/06 SEC SAYS MCAFEE SCHEME DIRECTED BY CFO

[UpInArms]

46. McAfee agrees to settle SEC charges, will pay $50 mln

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38721.6023308912-856217965&siteID=mktw&scid=0&doctype=806&

BOSTON (MarketWatch) - The Securities and Exchange Commission said McAfee Inc. has agreed to settle securities fraud charges the SEC filed Wednesday, and will pay a $50 million penalty. The SEC's complaint alleges that, from the second quarter of 1998 through 2000, McAfee (MFE) , a Santa Clara, Calif.-based manufacturer and supplier of computer security and antivirus tools, misled investors when it engaged in a fraudulent scheme to overstate its revenue and earnings by hundreds of millions of dollars. McAfee consented, without admitting or denying the allegations of the complaint. The SEC will seek to distribute the $50 million civil penalty to harmed investors pursuant to the Fair Funds provision of the Sarbanes-Oxley Act of 2002.

[UpInArms]

38. US fines ABN AMRO unit $16.9 mln over loan claims (defrauding HUD)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-04T174118Z_01_N04369560_RTRIDST_0_FINANCIAL-ABNAMRO-UPDATE-2.XML

WASHINGTON, Jan 4 (Reuters) - U.S. officials on Wednesday fined Dutch bank ABN AMRO's (ABN.N: Quote, Profile, Research) (AAH.AS: Quote, Profile, Research) U.S. mortgage division $16.9 million, settling charges the company made false claims on federally insured home loans.

The agreement, announced by the U.S. Attorney's office and the U.S. Housing and Urban Development Department (HUD), was valued at $41 million -- the largest monetary settlement of an enforcement action in the history of the HUD's Federal Housing Administration.

It includes the cash payment and requires that ABN AMRO Mortgage not submit hundreds of defaulted loans to HUD, saving the Federal Housing Administration insurance fund an estimated $24.35 million in losses.

The agreement settles allegations that ABN AMRO Mortgage made false certifications to HUD connected with more than 28,000 federally insured mortgages. The government said 229 of those mortgages led to defaults and resulted in losses to the housing agency of $6.25 million.

The settlement with ABN AMRO's mortgage unit follows an $80 million fine against the Dutch bank by U.S. bank regulators in December in connection with findings that ABN AMRO failed to comply with U.S. anti-money-laundering laws.

...more...

[UpInArms]

45. 2:25 EST numbers and blather

Dow 10,841.97 -5.44 (-0.05%)
Nasdaq 2,254.25 +10.51 (+0.47%)
S&P 500 1,269.40 +0.60 (+0.05%)
10-Yr Bond 4.366 -0.04 (-0.09%)

NYSE Volume 1,697,867,000
Nasdaq Volume 1,373,267,000

2:00 pm : Tight range-bound trading persists. Each of the three major auto manufacturers have now disclosed December same-store sales. At Ford (F 7.97 +0.14), sales declined a slightly less than expected 9%; the Briefing.com consensus estimate had been pegged at a 10.5% fall. DaimlerChrysler (DCX 53.39 -0.36) reported a 5% drop in December sales, versus the -5.3% consensus. Last and in this case least, General Motors (GM 19.19 +0.29) announced a 10% drop in sales during November, slightly worse than the expected 9.6% drop.DJ30 +9.79 NASDAQ +15.76 SP500 +2.40 NASDAQ Dec/Adv/Vol 1168/1828/1.27 bln NYSE Dec/Adv/Vol 1054/2226/1.12 bln

1:30 pm : Blue chips continue to float just above the flat line; the Nasdaq, meanwhile, remains comfortably ahead of it. Crude's return from the red, and hurdle over the $63.00 per barrel mark, serves as a bearish backdrop for the broader market. Although the Energy sector managed to rise alongside crude's morning decline, the sector has not benefited from the commodity's reversal. Perhaps behind the action is the fact that Russia surprised many investors by quickly ending the gas dispute with Ukraine. The move caused momentum traders to lock in gains after yesterday's run-up in crude oil. At the same time, natural gas continues to trade at levels not seen since August. Note that Volume is not very heavy on the NYMEX, as traders square positions ahead of tomorrow's inventory data (which was postponed due to the holiday). DJ30 +2.80 NASDAQ +15.19 SP500 +2.27 NASDAQ Dec/Adv/Vol 1169/1786/1.66 bln NYSE Dec/Adv/Vol 1019/2226/1.03 bln

[Roland99]

47. Heading for the wire it's a small gain....

DJIA 10,880.20 +32.80
Nasdaq 2,263.46 +19.72
S&P 500 1,273.46 +4.66
Russell 2000 689.25 +5.20
CBOE Volatility 11.37 +0.23
30 Yr Bond 4.54 -0.01
10 Yr Bond 4.36 -0.01



GM sales down 10% for the year? Pfffft
Ford sales down 5% for the year? Big deal
Gold at 25-year highs? <yawn>

[trogdor]

48. Not bad.

3/10 of a percent for the day. That's pretty damn good, if you ask me. Of course, I just took my chips off the table, so I'm laughing all the way to the cashier's window.

[ozymandius]

49. closing numbers

blather still missing

Dow 10,880.15 +32.74 (+0.30%)
Nasdaq 2,263.46 +19.72 (+0.88%)
S&P 500 1,273.46 +4.66 (+0.37%)
10-Yr Bond 43.56 -0.14 (-0.32%)
NYSE Volume 2,515,331,000
Nasdaq Volume 1,979,847,000

[54anickel]

50. Blather - just cuz it's so stoooopid

4:20 pm : Though caught within a tight trading range from open until close, the equity market's major averages managed to sustain positive footing following yesterday's broad-based, Fed-induced rally with which they rang in 2006. Gains were modest, but buyers nonetheless dominated trading.

Nine of the ten economic sectors closed higher. Extending yesterday's 2.0% run, the Technology sector served as the broader market's best source of support and further substantiated the Over Weight rating Briefing.com maintains on the sector. A surging internet consulting and services industry teamed with relative strength in the communication equipment, semiconductors, and electronics industries in driving a weighty 1.1% gain. On a related note, rising Google (GOOG 445.56 +10.33) shares, following an analyst upgrade and another price target hike, helped to underpin a sense of bullishness across the tech board -- while fueling the Nasdaq's outperformance. Prolonged pharmaceutical strength helped Healthcare register a market-lifting 0.8% gain, and an upped price target on, and positive analyst comments regarding, Colgate-Palmolive (CL 55.56 +0.65) aided the Consumer Staples sector (+0.2%) in clearing the flat line. Solid earnings from Monsanto (MON 80.86 +0.26), meanwhile, helped pull the Materials sector (+0.6%) north.

Rocky energy price action served as somewhat of a bearish backdrop today. The commodity surged to a two-month high yesterday, pulled back this morning, but eventually returned from the red and closed at $63.10 per barrel. At the same time, its rise did little to spark aggressive buying within the Energy sector (+0.5%). Traders may have stuck closer to the sidelines considering Tuesday's 4.5% jump an ahead of the EIA's inventory stats that have been postponed until tomorrow. The crude action joined particular weakness in home improvement retail in stunting the Discretionary sector (0.0%). J.P. Morgan downgraded Lowe's (LOW 66.24 -0.83) shares, and its citation of a cautious outlook on the macro housing environment sent Home Depot (HD 40.46 -0.78) spinning in sympathy. While automakers' December same-store sales reports were dismal, a market that appeared to have expected worse sent the auto industry north. Apparel also emerged as a pocket of Discretionary support.

Just as gains were modest, so were losses. The Financial sector (-0.2%) stood solo in the red, and a halving of its intra-day decline helped the indices close at the high end of the session's range. Ultimately, though, the submerged status of the marker's most influential sector capped an overall advance. Banks, which rallied yesterday following a bullish interpretation of the December 13 FOMC minutes, lost steam on account of Citigroup's (C 48.44 -0.85) downgrade. Bank of America cited industry concerns; as a result, one of the S&P's heaviest issues slumped and took its peers down with it. Strength in insurers and a somewhat steepening yield curve, following last week's inversion, helped limit the sector's slide. Since the release of yesterday's minutes, which said the number of remaining rate hikes would "probably not be large," the spread between the two and 10-year notes has widened nearly six basis points.

Separately, today's economic calendar delivered an expected 2.5% increase in November factory orders. Strong aircraft orders were behind the rise; excluding transportation, orders were flat.
DJ30 +32.74 NASDAQ +19.72 SP500 +4.66 NASDAQ Dec/Adv/Vol 1159/1891/1.95 bln NYSE Dec/Adv/Vol 951/2401/1.83 bln