STOCK MARKET WATCH, Monday 9 January

[ozymandius]

Monday January 9, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 13 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1845 DAYS
WHERE'S OSAMA BIN-LADEN? 1544 DAYS
DAYS SINCE ENRON COLLAPSE = 1506
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 6, 2006

Dow... 10,959.31 +77.16 (+0.71%)
Nasdaq... 2,305.62 +28.75 (+1.26%)
S&P 500... 1,285.45 +11.97 (+0.94%)
10-Yr Bond... 4.38% +0.02 (+0.53%)
Gold future... 541.20 +13.40 (+2.48%)






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. LEAST YOU CAN SAY YOU DIDN'T KNOW

(no WrapUp today)
by Toni Straka, CEFA

Returning to my compassionate routine of trying to make sense from all the economic and political white noise that fills airwaves and bandwidths I come to the conclusion that a shortlist of the most pressing problems for the US (and therefore the global) economy listed in June has basically not changed.

Quite the opposite. Galloping monetary expansion - US M3 has expanded 8.3% in the last 12 months and is has been running at an annualized rate of more than 10% in the last 3 months - and the exploding gold price sum up all the inflationary fears we rightfully project into the future. While the dollar reversed its downward trend against the other majors a year ago I get the feeling that the change from 2005 to 2006 will mark the end of the year-long bear market rally we have seen in the greenbacks of which ever more get printed. And while the official world tries to discard M3 growth as an outdated indicator I point you to this story of CNN online where former Deutsche Bundesbank president Hans Tietmeyer - 10 years ago the second most powerful central banker in the world - is described as a central banker who was "trained in the monetarist school that teaches rapid money supply growth is a sure predictor of inflation and requires a firm policy response."

-cut-

Foreseeable Pivot Points For 2006

January 31 - Greenspan Hands Over To Bernanke

The first test for the dollar will come around the end of the month, or a little earlier as markets are very diligent at discounting future events. Greenspan will leave at a point of time when US debt will have grown close to $8.2 trillion, an ever bigger part of it monetized by the Fed itself which buys public US debt at a rapidly growing speed.

-cut-

The Iranian Oil Bourse - Or One More War Soon?

Another most worrisome event is the coming de-dollarization in commodities markets through the planned inception of the Iranian Oil Bourse in early April. Is it more than a coincidence that the Fed will stop publishing M3 figures a week before that memorable event?

more...

http://financialsense.com/fsu/editorials/2006/0108b.html

[ozymandius]

2. One Report today

Jan 9 3:00 PM Consumer Credit Nov
Briefing Forecast $5.0B
Market Expects $4.6B
Prior -7.2B

[UpInArms]

71. U.S. consumer credit falls for 2nd month in a row (1st time in 13 years)

3:00pm 01/09/06 U.S. NOV. NONREVOLVING CREDIT FALLS $984 MILLION

3:00pm 01/09/06 U.S. NOV. REVOLVING CREDIT RISES $335 MILLION

3:00pm 01/09/06 U.S. OCT. CONSUMER CREDIT REVISED TO -$8.4B VS. $7.2B

3:00pm 01/09/06 U.S. CONSUMER CREDIT OFF 2 MONTHS IN ROW 1ST TIME IN 13 YRS

3:00pm 01/09/06 U.S. NOV. CONSUMER CREDIT FALLS $649 MILLION, OR 0.4%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38726.6252742014-856778884&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Outstanding U.S. consumer debt fell in November for the second month in a row for the first time in 13 years, the Federal Reserve said Monday. Outstanding credit dropped at an annual rate of 0.4%, or $649 million, in November to $2.156 trillion. In October, credit fell a revised $8.4 billion, or a 4.7% annual rate. Economists surveyed by MarketWatch were expecting credit to increase about $4.8 billion in November. In November, revolving, or credit card, debt, increased $335 million, or 0.5%. Nonrevolving debt, such as auto loans, fell $984 million, or 0.9%.

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-09T200155Z_01_WBT004507_RTRIDST_0_ECONOMY-CREDIT-URGENT.XML

excerpt:

After a record drop by a revised $8.4 billion in October, it was the first time since May-June 1992 that consumer credit has declined for two months in a row, the Fed said.

The central bank said total consumer debt outstanding fell 0.4 percent to a seasonally adjusted $2.156 trillion from a revised $2.157 trillion in October.

Wall Street analysts polled by Reuters had expected a rise of $5 billion in consumer credit in November.

The Fed said non-revolving credit -- made up of closed-end loans for cars, boats, education expenses and holidays -- fell $984 million in November, the third consecutive monthly decline.

...more...

[UpInArms]

72. The last time credit fell in two straight months was in May & June of 1992

Like father, like son?

http://www.marketwatch.com/news/story.asp?guid=%7BF9579094%2D658D%2D409F%2DB2B0%2D0B2EF6D14A18%7D&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - Outstanding U.S. consumer debt fell for the second month in a row in November for the first time in 13 years, the Federal Reserve said Monday.

Outstanding credit dropped at an annual rate of 0.4%, or $649 million, in November to $2.156 trillion. In October, credit fell a revised $8.4 billion, or 4.7% annual rate.

The last time credit fell in two straight months was in May and June of 1992.

Economists surveyed by MarketWatch were expecting credit to increase about $4.8 billion in November.

In November, revolving, or credit card, debt, increased $335 million, or 0.5%. Nonrevolving debt, such as auto loans, fell $984 million, or 0.9%.

The recent slowing in credit balances is largely a function of a slump in auto sales.

...more...

[ozymandius]

3. Oil Prices Hover Above $64 a Barrel

VIENNA, Austria - Oil prices rose Monday, hovering above $64 a barrel, and natural-gas futures dropped amid a mild start to winter in the United States.

Gasoline prices also eased but analysts suggested that relatively mild U.S. temperatures would keep demand high and stocks tight.

Light, sweet crude for February delivery rose 19 cents to $64.40 a barrel on the New York Mercantile Exchange by midday in Europe. The contract gained $1.42 to settle at $64.21 on Friday.

-cut-

Heating oil declined slightly to $1.7960 a gallon. Gasoline fell by nearly a penny to $1.8061 a gallon. But Vienna's PVM Oil Associates suggested prices would gain soon, saying that "with warmer weather forces at least in the short- to medium-term — perhaps the next two weeks — gasoline is expected to stay in the spotlight."

more...

[UpInArms]

24. Feb Crude @ $64.10 bbl - Feb NatGas @ $9.34 mln btus

10:08am 01/09/06 FEB CRUDE FALLS 11C TO $64.10/BRL IN EARLY NY TRADING

10:08am 01/09/06 FEB NATURAL GAS DROPS 29.2C, OR 3%, TO $9.34/MLN BTUS

[UpInArms]

68. Feb Crude closes @ $63.50 bbl - Heating Oil @ $1.7677 gal

2:59pm 01/09/06 FEB CRUDE CLOSES AT $63.50/BRL, DOWN 71C, OR 1.1%

2:59pm 01/09/06 FEB HEATING OIL FALLS 3.29C TO CLOSE AT $1.7677/GAL

[ozymandius]

4. 'January Effect' May Be Hard to Keep Up

NEW YORK - If one is to believe Wall Street lore, the first five trading days of a new year can predict the course of trading for the entire year. But while stocks had an outstanding showing last week, it's still far too early to start counting your returns.

According to the Stock Trader's Almanac, the so-called "January Effect" is startlingly accurate. The last 35 times that the first five days of trading resulted in a net gain for stocks, stocks posted full-year gains in 30 of those years — 85.7 percent of the time.

-cut-

ECONOMIC DATA

An important gauge of inflation, the Producer Price Index, will be released by the Labor Department. The index, which measures inflation at the wholesale level, is expected to rise 0.4 percent in December, compared to an 0.7 percent drop the previous month. So-called "core" PPI, with energy and food prices removed, is expected to climb just 0.2 percent, up from a 0.1 percent increase in November.

The Commerce Department will round up the nation's retail sales as well. Total retail sales are expected to have risen 0.8 percent in December, better than November's 0.3 percent rise. With auto sales removed, retail sales are expected to climb 0.4 percent for December, countering the 0.3 percent drop seen the previous month.

more...

[JNelson6563]

10. Hmmm. I dunno.....

I guess I lack the faith in Corporate America that the optimistic Bulls have. Throw in the fact that we live in a time where what was once considered unthinkable has become pretty commonplace and Voila! You have a healthy dose of skepticism that the year in stocks will resemble the past week.

Julie the Doubter

[54anickel]

21. Got Stevie Wonder stuck in my head after reading that piece

The last 35 times that the first five days of trading resulted in a net gain for stocks, stocks posted full-year gains in 30 of those years — 85.7 percent of the time.


When you believe in things that you don't understand
Then you suffer
Superstition ain't the way, no, no, no

[AnneD]

26. Play it again...(emphasis mine)

Very superstitious, WRITING ON THE WALL.
Very superstitious, LADDER BOUT'TO FALL....

7 years of bad luck, THE GOOD THINGS IN YOUR PAST.

Thank goodness it was this song and not 'the other'. Got to go pet my black cat for some luck.

[54anickel]

31. What's "the other"? eom

[AnneD]

34. I just called to say I love you...

dang, now it will be stuck in the old carnium for a while...

[54anickel]

36. Sheesh that one's almost as bad as Yellow Submarine for getting

stuck!

I sort of remembered an old Stevie Wonder tune from the same album as Superstition I had in the 70's (Talking Book) . I had to go and look up the lyrics -


Your name is big brother
You say that you're watching me on the tele,
Seeing me go nowhere,
Your name is big brother,
You say that you're tired of me protesting,
Children dying everyday,
My name is nobody
But I can't wait to see your face inside my door.

Your name is big brother
You say that you got me all in your notebook,
Writing it down everyday,
Your name is I'll see ya,
I'll change if you vote me in as the pres,
The President of your soul
I live in the ghetto,
You just come to visit me 'round election time.

I live in the ghetto,
Someday I will move on my feet to the other side,
My name is secluded, we live in a house the size of a matchbox,
Roaches live with us wall to wall,

You've killed all our leaders,
I don't even have to do nothin' to you,
You'll cause your own country to fall.

[AnneD]

38. a sure fire way to unstick a song..

is to think of or hum the lyrics to the Star Spangled Banner. :think:

[54anickel]

40. ARRRGH!!!! eom

[pat_k]

37. Asset Hyperflation isn't sustainable -- but reality never stops them...

...They'll just keep expanding the money supply until it all comes crashing down.

http://www.investmentrarities.com/bestofjimcook07-04-05.html

[ozymandius]

5. Earnings take focus as 2006 starts strong

NEW YORK (Reuters) - The nascent rally in U.S. stocks could find nourishment in the taste of corporate earnings reports trickling forth this Monday and Tuesday.

Dow component Alcoa Inc. (NYSE:AA - news), the world's largest aluminum producer, is set to post quarterly earnings on Monday, while Supervalu Inc. (NYSE:SVU - news), one of the nation's largest food wholesalers, is due to report the following day.

Earnings for companies in the Standard & Poor's 500 Index (^SPX - news) are expected to have risen 13.9 percent from a year ago, according to Reuters Estimates.

But with key inflation data also on tap and a handful of Fed officials lined up for speaking engagements, investors could tread with some degree of caution.

more...

[ozymandius]

6. Earnings Schedule for Week of 1/9/06

Major companies tentatively scheduled to report quarterly earnings next week, with ticker symbol and Thomson Financial profit estimates:

Monday - Alcoa Inc (AA), 37 cents per share

Tuesday - Genentech Inc. (DNA), 34 cents

very short blurb

[mdmc]

7. thanks for the info and links

peace and low stress

[ozymandius]

8. You're welcome. And thanks!

:hi:

[AnneD]

11. Morning Marketeers,

:donut: Well, I had my first Costco experience. I will never go back to WalMart if I can help it. I walked in and explained to the greeter that I was a non member wanting to check it out. She gave me instructions and paused. She asked me where did I get that shirt. I realized that I was wearing a shirt I had bought at the Crawford Peace house during the August protests. Normally I am outspoken but was careful as some people can't handle free speech. I explained where I got it. The woman ask if she could shake my hand began enthusiastically pumping my hand. She thanked me for speaking out and what an honour it was to meet me. Well, I was speechless but muster enough to thank her for her support. I have been cursed at, spit on, and flipped off...but that was a first! Maybe things are changing. By the way, the prices were competetive, the quality was better and the sales folk were great.
Happy hunting and watch out for the bears.

[54anickel]

27. Costco's great. But I have quite a drive to get to one (across the WI/IL

border - reminds me of the "oleo runs" when I was I kid). Still another "big box" store, but a much better employer than Squal-mart. Seems "big box" is in (no stopping "progress" if that's what you call it). :eyes: If you're going to have a "big box" move in anyway, I'd much rather see one that helps the labor side of the local economy.

I haven't shopped on-line with Costco - I'm not much of an on-line shopper beyond a few specialty items or books, CDs, DVDs. I'm more of a hands on shopper.

When a nearby town was considering allow their Squal-mart to build a new "superstore", I spoke to a couple of folks I knew on the board and asked them to "court" Costco. I explained how the original Wal-mart ran many of the small shops out of business and that at least Costco would offer better employment opportunities. They wouldn't even consider it. Wal-mart offered them such a great deal. :eyes: Oh yeah, it was just great alright! They paid for the damned road, and got a break on their property taxes at the same time. The local municipality is now going to be stuck with the bill for the traffic lights and until they get around to putting some up, that intersection will remain dangerous - there's at least one accident there a week now. Meanwhile we are stuck with the eyesore of the old Squal-mart building, looking worse with every passing month and no takers wanting it since there aren't a lot of businesses willing to try to compete with the "super squal-mart". We also lost another local grocery store to them. :-(

[AnneD]

35. My solutions.....

Costco for bulk and sundries. My church is close to the Farmer's Market Co-op, so I pick up great veggies and fruits from the farmers. Maybe some of your growers can band togather and do something like that. They get more money and people get better produce and the local money circulates more.

[ozymandius]

9. early morning blah blah

08:02 am : S&P futures vs fair value: -1.5. Nasdaq futures vs fair value: -1.0. Versus fair value, futures trade suggests a slightly lower start for stocks today. Weighing upon early sentiment is J.P. Morgan's downgrades of IBM shares to Neutral from Overweight; the firm asserted that, while they remain encouraged with IBM's momentum in mainframes, microelectronics, and its cost structure, they believe the stock already reflects these factors. Further, the firm cited increased competition, and believes that several risk factors in services and hardware are not yet being considered by investors. Presenting some additional downside is the price of crude -- currently up 0.5% to $64.50 per barrel.

[UpInArms]

12. daily dollar watch

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

Last trade 89.31 Change +0.47 (+0.53%)

Has US Growth Peaked?

The NFPs did not please. In fact the more we analyze the figures the uglier they look. The headline number printed at 108K against projections of 200K and although Novembers numbers were revised upward by nearly 100K making the two month average almost in line the overall expectation, the tone of the report showed little good news as wage growth remained stagnant. As General Glut’s blog pointed out, “The seasonally unadjusted tally for private sector jobs in December was -197,000, the worst December since 2002. This follows on the heels of the worst
September since 2001 and the worst October since 2002. Since Katrina hit, the US has added 416,000 seasonally adjusted private sector jobs. But of course, nobody actually works an SA job. The NSA tally of actual jobs in the US since Katrina is -162,000 -- the worst September-December stretch since 2002.”

With these numbers in tow, many speculators are now asking if US growth has peaked. As short rates edge closer to 4.5% and housing shows a discernable slowdown, US GDP growth in 2006
may be markedly less then the consensus call of 3.5%. None of this bodes well for the greenback of course as the unit lost serious ground across the board dropping to 2.65% against the euro.

Next week, however may see a bounce as the EUR is now approaching major long term resistance at 2250 level and US data including Trade Balance and Retail Sales are slated to show positive
month to month comparisons.

...more...

[54anickel]

59. Yen Shines on Dollar`s Fed Doubts

http://www.forexnews.com/NA/default.asp

It was only the first trading week of the year and the dollar lost over 2.5% alone against the yen and the euro amid a combination of escalating market perception that the Fed interest rate hike policy could be concluded by month end and last week’s disappointing US jobs report aiding to confirm these perceptions. The technical picture of the dollar also looks bleak (see latest Articles&Ideas on www.forexnews.com) as the dollar index broke 3 key measures; the 50% retracement of the 86.04-92.73 move; breach below the 100-day MA; and the 22-month trend line support. The 200 day MA now follows at 87.70.

whether the dollar selling is merely technical has been raised. We feel the sell-off reflects more than technical unwinding of accumulated dollar longs and extends to a fundamental change in the currency’s interest rate and growth foundation. In otherwords, the dollar’s cyclical superiority could become increasingly challenged when the unwinding in the interest rate story is complemented by a cooling in US growth. We go one step further to predict a Fed rate cut in Q4.

Given the considerable certainty of a January 31 rate hike (current market probability at 80%), the probability curve can only change towards a decision to hold, a rude awakening for the dollar. As for the Fed March 28 meeting (where we continue to expect no move), it remains too far ahead to serve as a reliable foundation for dollar bulls, especially given the Fed’s increasingly data-dependent stance. If anything, the odds for a no change would likely increase the current 40-45% probability—again another dollar negative outcome.

The dollar foundation could be further damaged by Thursday’s release of the November trade deficit, which we expect to have eased to $67 billion from $68.9 bln. Tuesday’s release of the January ZEW survey from Germany is expected to show broad improvements, thereby potentially adding to the euro’s gains. Neither of the Bank of England nor the European Central bank are expected to change interest rates on Thursday, paving the way for Friday’s release of the US report on December retail sales, which is expected to show broad strengthening, even without the increase in auto sales.

Yen hit 3-month highs amid Tanigaki’s comfort

more...

[UpInArms]

13. IMF urges more China FX moves as cenbankers meet

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-08T215244Z_01_L08555652_RTRIDST_0_ECONOMY-CENTRALBANKERS.XML

BASEL, Switzerland, Jan 8 (Reuters) - China needs to take further steps to loosen its currency regime, the International Monetary Fund chief said on Sunday as top central bankers met on the outlook for emerging markets in 2006.

Asian countries are worried that upward pressure on their currencies compared with China's will hurt otherwise strong growth prospects this year.

China announced last week fresh steps towards allowing markets to set some rates for the yuan currency within its tightly managed floating rate system, adopted last July. But IMF Managing Director Rodrigo Rato said more needs to be done.

"We see the importance of the Chinese government and the Chinese authorities to make more use of that flexibility and to make their currency a clearer reflection of the market forces," he told Reuters at the Bank for International Settlements here.

Currencies, including the Chinese yuan, will be on Monday's agenda for the global economy discussion among central bankers from top industrialised and emerging nations, who meet six times a year here at the BIS.

...more...

[UpInArms]

14. US banks may post lackluster 4th-quarter results

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-08T183100Z_01_N08355435_RTRIDST_0_FINANCIAL-BANKS.XML

NEW YORK, Jan 8 (Reuters) - Many big U.S. banks may post lackluster
fourth-quarter results, hurt by volatile interest rates, increased credit
losses and a slowdown in mortgages, analysts said.


Larger banks, including those with big non-U.S. operations, may offset
weakness elsewhere with strength in asset management, investment banking and
trading. But competition intensified for deposits, and a surge in bankruptcy
filings may hurt companies with big credit card operations.


"People expect negative or sluggish results from regional banks, yet their
stocks are still selling at a premium because of takeover speculation," said
Steve Roukis, managing director at Matrix Asset Advisors Inc. in New York,
which invests $1.8 billion. "Bigger banks have global franchises and more
diversified businesses, and they have done very well."


Lehman Brothers Inc. analyst Jason Goldberg and Merrill Lynch & Co. analyst
Edward Najarian expect earnings at banks they cover to be unchanged from the
third quarter.


Goldberg, who covers 49 banks, expects earnings to rise 10.5 percent from a
year earlier. Najarian expects a 6.7 percent increase at 13 large regional
banks.


Buffalo, New York's M&T Bank Corp. (MTB.N: Quote, Profile, Research), which counts Warren Buffett
among its largest investors, kicks off earnings season on Wednesday. Citigroup
Inc., JPMorgan Chase & Co., Wachovia Corp. and Wells Fargo & Co. report the
following week. Bank of America Corp. reports on Jan. 23.

...more...

[UpInArms]

15. Argentina Cenbank to buy euros to rebuild reserves

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-08T211130Z_01_N08309455_RTRIDST_0_ECONOMY-ARGENTINA-RESERVES.XML

BUENOS AIRES, Argentina, Jan 8 (Reuters) - Argentina's Central Bank will begin buying euros in the foreign exchange market to help bolster its foreign reserves, which were sharply reduced to pay back the country's debt with the IMF, a Central Bank official said on Sunday.

The bank habitually buys dollars in the market to pad its reserves, but as of Monday, will also buy euros, the source said.

The government of President Nestor Kirchner slashed the bank's reserves last Tuesday to $18.5 billion from $28.05 billion previously, using the funds to pay its full $9.5 billion debt to the International Monetary Fund.

The Central Bank began diversifying its reserves several years ago to include euros, yens, sterling pounds and gold, as well as U.S. dollars. It now intends to continue that process.

"The accumulation of reserves following the payment of the total debt to the IMF last week will be carried out incorporating into our portfolio not only U.S. dollars but other currencies as well," the source said.

...more...

[UpInArms]

16. Soros sees chance of U.S. recession in 2007

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-01-09T101758Z_01_SP179518_RTRIDST_0_MARKETS-SOROS-UPDATE-2-PICTURE.XML

SINGAPORE, Jan 9 (Reuters) - Billionaire investor George Soros said on Monday the U.S. Federal Reserve might overshoot in its bid to tighten monetary policy, deflating housing prices and tipping the economy into recession in 2007.

A collapse in U.S. housing prices could be associated with a dollar decline, scuppering the Fed's attempt to engineer a "soft-landing" for the economy, Soros told an audience at the Singapore Institute of International affairs.

Soros -- best known for his famous bet against sterling as Britain was forced to pull its currency out of the European currency grid in 1992 -- said he expected the federal funds rate, now at 4.25 percent, to peak at 4.75 percent.

Nevertheless, the Fed could be late in estimating when to stop raising rates, he said, creating a "reasonably significant chance" of a "hard-landing."

"If housing continues to cool while rates are slowing then it could turn into a hard landing," Soros said.

"That's why I expect a recession to happen in 2007, not 2006."

...more...

[UpInArms]

17. 9:38 LaLa in confusion

Dow 10,954.59 -4.72 (-0.04%)
Nasdaq 2,307.19 +1.57 (+0.07%)
S&P 500 1,285.09 -0.36 (-0.03%)
10-Yr Bond 4.389 +0.10 (+0.23%)

NYSE Volume 112,423,000
Nasdaq Volume 118,732,000

[UpInArms]

18. Printing Press Report:Fed adds banking reserves via overnight system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-09T143217Z_01_N09342659_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Jan 9 (Reuters) - The Federal Reserve on Monday said that it added temporary reserves to the U.S. banking system through overnight 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]

22. Treasuries steady to lower ahead of Fed speakers

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-09T150009Z_01_N09306489_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Jan 9 (Reuters) - U.S. Treasury debt prices were steady to lower on Monday with little economic news to move the market as investors waited to hear from two Federal Reserve officials for any possible hints to the central bank's thinking on interest rates.

Traders have been increasingly mulling the possibility Fed officials are considering an end to their year-and-a-half long campaign of raising rates. Minutes from the Fed's December meeting, released last week, suggested the bank may be nearly finished raising rates.

Atlanta Fed President Jack Guynn will give a speech on the economic outlook at 12:40 p.m. EST (1740 GMT), while Kansas City Fed President Tom Hoenig will speak before Kansas City area business people at 1 p.m. EST. (1800 GMT).

However, traders said they expect the bond market to remain relatively range bound this week until December producer prices and December retail sales figures are released on Friday.

"We have couple of Fed speakers today and they might enlighten us a little bit as to what the thought is over at the Fed, but really what we need is more economic information and we are not going to be getting any of that until Friday," said Alan De Rose, a bond trader at CIBC World Markets in New York.

...more...

[UpInArms]

52. Hoenig stutters

1:34pm 01/09/06 HOENIG: FED FUNDS RATE AT LOW END OF NEUTRAL RANGE

1:35pm 01/09/06 HOENIG: PATH OF MONETARY POLICY DEPENDS ON DATA

1:30pm 01/09/06 HOENIG FORECASTS CORE INFLATION TO REMAIN LOW, STABLE

1:29pm 01/09/06 HOENIG: MAIN ECONOMIC RISK IS FAST GROWTH SPURRING INFLATION

1:30pm 01/09/06 HOENIG: JOB GROWTH WILL SLOW IN 2006

1:24pm 01/09/06 FED'S HOENIG SEES 2006 GDP GROWTH 3.25% TO 3.5%

[UpInArms]

53. Fed Guynn:Vital to keep inflation expectation anchored

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-09T181530Z_01_WAT004667_RTRIDST_0_ECONOMY-FED-GUYNN-URGENT-CORRECTED.XML

ATLANTA, Jan. 9 (Reuters) - Federal Reserve Bank of Atlanta President Jack Guynn on Monday said the U.S. economy was on track for a third consecutive year of good growth in 2006, and it was essential policy-makers keep inflation risks at bay.

Guynn, who is a voting member of the Fed's policy-setting committee this year, also said that as the central bank got closer to ending its campaign of raising interest rates, the direction of policy would be less clear.

"The closer we get, the less explicit we can be on that point. One reason is that we don't yet know the full economic effect of the policy moves we have already made," Guynn told a luncheon hosted by the Rotary Club of Atlanta.

"So in the months ahead, we'll have to watch the data very carefully to make sure that growth is still on track and inflation expectations are well anchored," he said.

[UpInArms]

62. Fed's Guynn says U.S. fiscal gap not sustainable

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-09T190208Z_01_WBT004505_RTRIDST_0_ECONOMY-FED-HOENIG-BUDGET-URGENT.XML

KANSAS CITY, Mo., Jan 9 (Reuters) - Kansas City Federal Reserve Bank President Thomas Hoenig said on Monday the United States cannot sustain its budget deficits indefinitely, saying interest rates would eventually rise.

"Because the U.S. is such a large and important economy in the world today, it can sustain these deficits for a considerable period of time ... However, it probably cannot sustain it indefinitely," Hoenig told a business luncheon in answer to a question.

"As the economy itself accelerates toward its potential growth rate, then you will have increasing, if you will, demands for capital by the private sector ... and by the public sector," he said. "If we fail to (cut the U.S. budget gap) then you will see, I think ... a creeping up in the cost of capital, because your savings isn't there to support that."

[54anickel]

69. But he does say it in such a nice way....

...a creeping up in the cost of capital... Bwahahaha!!!! :evilgrin:

[UpInArms]

30. Printing Press Report: U.S. to sell $8 billion of 4-week bills on Tuesday

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-09T160435Z_01_WBT004503_RTRIDST_0_ECONOMY-BILLS-ANNOUNCEMENT-URGENT.XML

WASHINGTON, Jan 9 (Reuters) - The U.S. Treasury Department on Monday said it will sell $8 billion of four-week bills on Tuesday, Jan. 10.

The bills, which will be issued on Jan. 12, mature on Feb. 9. Treasury said the net long position reporting threshold is $2.80 billion.

Noncompetitive bids must be received before 12:00 noon EST (1700 GMT) and competitive bids by 1:00 p.m. EST (1800 GMT).

...more...

[UpInArms]

32. Printing Press Report: US to sell $13 bln 5-year notes,$9 bln 10-year TIPS

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-09T161710Z_01_WBT004502_RTRIDST_0_ECONOMY-TIPS-URGENT.XML

WASHINGTON, Jan 9 (Reuters) - The U.S. Treasury on Monday said it will sell $13 billion of five-year notes on Jan. 11 and $9 billion of 10-year inflation-protected securities, or TIPS, on Jan. 12.

The five-year notes will be issued Jan. 17 and mature Jan. 15, 2011. Treasury said the net long position reporting threshold is $4.55 billion.

The CUSIP for the five-year bills is 912828ES5.

The 10-year TIPS will also be issued Jan. 17 and mature Jan. 15, 2016. Treasury said the net long position reporting threshold is $3.15 billion.

The CUSIP for the TIPS is 912828ET3.

Treasury said up to $1 billion in noncompetitive bids from Foreign and International Monetary Authority accounts will be included within the offering amount of the TIPS auction. Those bids will have a limit of $100 million per account.

...more...

[54anickel]

19. Forecast 2006: On the Gripping Hand (Muddlin' Mauldin)

http://www.frontlinethoughts.com/printarticle.asp?id=mwo010606

snip>

Bretton Woods 2 Keeps on Rolling Along

In 2005 the United States is projected to run a trade deficit of $806 billion, up from $668 billion in 2004. The International Monetary fund forecasts that the trade deficit will rise to $890 billion in 2006 and then to what can only be called a staggering $980 billion in 2007. How in the wide, wide world of global trading can one country run an almost $1 trillion dollar trade deficit? What is the rest of the world going to do with all those dollars?

Will central banks really want to buy almost $2 trillion more in US debt in just the next two years? They own approximately (and at least) $1.5 trillion today, accumulated over many years. Do they want to own all of our government debt? At the level of projected trade deficits, that could happen in just a few years. Is this really sustainable?

The simple answer is no, but the correct answer is that this situation can go on a lot longer than one would think. And all because of an odd arrangement many call Bretton Woods 2. I wrote about Bretton Woods 2 last February, but it is worth going over again briefly, as it is the lynchpin to our global economy.

Things Fall Apart; the Center Cannot Hold

snip>

Under Bretton Woods 1, Nixon could end the agreement by closing the gold window. Under Bretton Woods 2, foreign central banks have us in their gripping hand. For now, they have no incentive to change the rules, as it would hurt them to do so. Who would buy their widgets and keep their factories going and employment rising? But at some point, as a small but growing number of foreign central bankers have pointed out, the deal is going to have to change. You can have too much if a good thing, especially if you have to swallow a trillion of them a year.

What is so uncomfortable about this situation is that we will not know when the equilibrium equations will change until they have already changed. As Martin Barnes of Bank Credit Analyst puts it, "Of course, there is a limit to how high the US current account deficit can get. Unfortunately, we will only know that limit has been reached when markets start to riot. The dollar's strength argues against any near-term problem, but markets can be fickle, and we cannot rule out a marked reversal in sentiment toward the dollar. The crucial assumption is that Asian central banks would then step in quickly to restore calm to the markets."

snip>

The Fed Is Targeting the Price of Your House

more....

[54anickel]

25. Issues 2006 (Last entry in the Credit Bubble Bulletin)

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

Issues 2006:

Global markets and economies enter 2006 buoyed by intense optimism. The tonic of abundant global liquidity has worked its magic. Almost across the board, economies are either booming or in upswings. Booming global equity markets are out of the blocks with a flurry, with emerging markets sprinting to new record highs. The great commodities bull market also shows little sign of waning (CRB index ends at all-time high today!); ditto for the global M&A boom and the global onslaught of Wall Street “structured finance.” Crude prices are defying all the talk of ample global supplies. Meanwhile, international interest-rate markets remain extraordinarily sanguine. In short, the Global Liquidity Glut continues to foster unparalleled loose financial conditions both at home and abroad – and securities markets are relishing it.

Not surprisingly, there is today keen analytical focus directed at Federal Reserve policy, the U.S. housing market, bond yields and the shape of the Treasury yield curve. A popular consensus view has taken shape that inflation and the Fed are both well under control, while housing is poised to cool significantly. Beloved Goldilocks has returned. Bond yields are said to have peaked (apparently concluding the most merciful of bear markets), and the lagged effect of restrictive Fed policies is working just as prescribed. While not necessarily arguing that all facets of consensus thinking are misguided, I do suggest that a Credit Bubble analytical framework offers a more fruitful perspective for what will surely be a most extraordinary year.

Last year was a seminal period for the U.S. Credit Bubble. Prudent Federal Reserve policy would have implemented sufficient rate increases to engender a much needed tightening of financial conditions and a commencement of an imbalance-rectifying adjustment processes. The soon-to-depart Fed chairman had other plans. Ongoing telegraphed baby-steps provided no impediment whatsoever to an overheated Financial Sphere; blow-off excesses were further accommodated. Mortgage Credit excesses went to only greater extremes; already unparalleled trade deficits ballooned; the global pool of speculative finance became only more massive; over-liquefied global markets became much more so; energy and commodities prices surged; and myriad Credit and speculative Bubbles took firm hold throughout. Bubble dynamics enveloped scores of markets, economies and financial systems, and this remarkable circumstance must now play a prominent role in how we analyze prospects for 2006.

As they say, “There is a thin line between love and hate.” Late-cycle excesses are as powerfully alluring and intoxicating as bursting Bubbles are devastating. Always, it is the euphoric indulgence associated with intense highs that set the stage for heart-breaking disappointment and revulsion. Major Bubbles surely can – and, let’s face it, have a propensity to - last for years. Forecasting the duration, pattern of evolution or the circumstance of their demise is too close to an exercise in futility. This, however, in no way detracts from the validity and utility of Macro Credit and Bubble Analyses. And it is a given that Macro Credit Analysis will be of greatest value when it is held in complete disrepute by the manic crowd.

As we look ahead to 2006, there are key aspects with respect to this most atypical financial backdrop that we understand with a high degree of confidence. For one, the U.S. Credit system is very much immersed in “blow-off” excesses. The extreme nature of asset inflation and leveraged speculation preclude the financial sector from safely turning back. We should instead anticipate great enthusiasm to justify, rationalize and perpetuate the boom. To be sure, the Credit system is primed for continued massive mortgage Credit growth (perhaps marginally below 2005’s record), robust corporate borrowings, and large government (Federal and S&L) deficits. We have, as well, a freshman Fed chairman openly inimical to reining in Bubbles; the marketplace is gaga.

more...

[54anickel]

33. Death Chants, Breakdowns, and Forecasts for 2006 (Bonner)

http://www.321gold.com/editorials/bonner/bonner010606.html

Mercy Otis Warren on the ratification of the Constitution in 1788:

"When fortune throws her gifts into the lap of fools, let the sublimer characters, the philosophic lovers of freedom who have wept over her exit, retire to the calm shades of contemplation, there they may look down with pity on the inconsistency of human nature, the revolutions of states; the rise of kingdoms, and the fall of empires."

We warn our dear readers. What follows is more of a churlish lament than a real forecast. As we have confessed more than once, and proven more often, we get the news no sooner than anyone else. Still, we have two advantages over most forecasters: We know our limitations, and we don't watch television.

So, today, we begin by describing the world, not as it will be, but as we think it is. It is a world where individuals who mind their own business can live better than at any time in history. Painless dentistry, air-conditioning, automobiles, the Internet - we are humbled by the majesty of our own creations. Year after year there are more of them. Now we can eat pineapple in London in the wintertime. We can read books written by dead Chinese scholars in our native languages. We can chat with a friend on the other side of the globe, at almost no expense. And we can have an erection where and when we want one (so we are told), thanks to the wonders of modern biochemistry, rather than the mysteries of old-fashioned hoochie coochie. The thought of it is almost too much for us. We swoon, and ask the gods: what next?

While the progress of the world swells up before our eyes, we turn our eyes to the newspaper and wonder what has gone wrong, for there is the story of 100 dead in Iraq. Reading more carefully, we find that the news from Iraq could have been written 100 years ago, when the British Empire was fighting insurgents in the area. It could have been written nearly 1000 years ago, when Baghdad was under assault from the Great Khan. We also might have read it 2,000 years ago, when similar battles were fought with the Romans.

Has nothing changed? Why is our own Texas Tiberius repeating the errors made by virtually every empire that ever was: pushing beyond the limits of its resources, until it finally falls apart? And he does so at the very moment when life seems so sweet in so many ways. We Americans can barely brush our teeth often enough.

more...

[UpInArms]

20. Feb Gold @ $538.20 oz - March Silver @ $9.07 oz

9:51am 01/09/06 FEB GOLD FALLS $3 TO $538.20/OZ AFTER $542.80 HIGH

9:51am 01/09/06 MARCH SILVER FALLS 10.3C TO $9.07/OZ

[UpInArms]

29. Gold futures resume climb, trade above $544

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38726.4578866782-856769397&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Gold futures headed higher Monday, reversing from an earlier low of $536.50 an ounce. February gold touched a nearly 25-year high of $546 in overnight trading and climbed as high as $544.50 in intraday trading in New York -- surpassing the $543 high from December, which was the highest futures price since 1981. "Gold continues to rally on continued U.S. dollar weakness, a trend I expect to continue over the next week when gold will break through $550," said Matthew Parry, an economist at Moody's Economy.com.

[InsultComicDog]

44. I'm no Dr. Bernanke...

hell, the last economics course I took was probably 30 years ago, and I haven't exactly stayed on top of things...

...but when the price of gold shoots up, doesn't that imply that the value of currency is going down? And if the value of currency is going down, doesn't that mean that the price of just about everything is going to go up; i.e. the speculators are gambling that there will be big time inflation?

[AnneD]

51. I am in the same boat as far as economic wisdom....

but people buy for security as well as a hedge against inflation. I remember the last time gold ran up (wasn't it before the crash in the 80's). So many things I see know remind me of the boom and crash in the 80's. But unlike the 80's there are many more things in play: oil, military actions, a robust Chinese economy, a debt that is down right embarrassing and eclipses anything in history, etc.
I have heard that the best gold can do is keep up with inflation-but when faced with loosing everything...that doesn't seem like a bum deal.

[Tace]

67. I'm No Economist Either -- Yet, I See Gold As A Value Constant

I see its value as remaining essentially fixed. That's not to say that a speculator can't make money off of it by buying low and selling high. But those dollars will have lost value in the meantime.

[54anickel]

39. Hedge funds may help drive gold to higher levels

http://www.chicagotribune.com/business/chi-0601090006jan09,1,6822323.story?coll=chi-business-hed

Gold prices may extend gains for a sixth year in 2006 as hedge funds buy the precious metal to diversify from stocks, bonds and currencies.

The price of bullion may rise 18 percent, to average $525 an ounce, up from $445 last year, according to the median forecast of 29 analysts, traders and investors surveyed by Bloomberg News.

Hedge funds and other speculators more than tripled their net long positions, or bets prices will rise, in New York gold futures in the past five months. Inflation, the U.S. budget and current account deficits, and the dollar led investors to buy gold.

"It's all about fund diversification; that's the bottom line," said Peter Hillyard, head of commodities sales in London at ANZ Banking Group. Investors have been "heavily dependent on equities, bonds and currencies."

Investors are buying gold because it's outperforming stocks and bonds. Gold rose 90 percent in five years, while the Standard & Poor's 500 index returned 2.7 percent with dividends reinvested. An index of Treasuries maturing in two years or more returned about 30 percent including interest reinvested, Merrill Lynch & Co. indexes show.

A sixth year of gains would be the longest winning streak since central banks allowed the price of gold to find its own level in the free market in 1968.

more single sentence paragraphs....

[54anickel]

41. Recklessness in Indonesia (The ugly side of gold)

http://www.nytimes.com/2006/01/09/opinion/09mon2.html?ex=1137474000&en=0dae132a16a6fff6&ei=5040&partner=MOREOVERFEATURES

Freeport-McMoRan, an American company that operates a giant open-pit copper and gold mine in Papua, is a major contributor to Indonesia's economy. The company is also one of Indonesia's most reckless polluters and a source of hard cash - cash the company concedes is protection money - for the Indonesian military, which has one of the worst human rights records anywhere.

A recent report in The Times by Jane Perlez and Raymond Bonner described Freeport's activities in great detail. The report was part of a series of articles over the past year detailing environmental and other abuses by American mining companies at home and abroad.

Several of these companies are being sued by local governments that argue that these companies' environmental practices would never be tolerated in America and that local citizens are seeing too few of mining's benefits while paying too heavy a price. Newmont Mining, based in Denver, has been sued by the Indonesian government for dumping poisoned wastes in local waters, and Placer Dome, based in Canada, has been sued by a Philippine province for similar infractions.

Freeport's activities are particularly disheartening. Over the past decade, the company has built what amounts to an industrial city in Indonesia's easternmost province. On the plus side, the company provides jobs for 18,000 people and, according to company estimates, has provided Indonesia with $33 billion in direct and indirect benefits from 1992 to 2004, almost 2 percent of the country's gross domestic product.

snip>

Freeport's environmental record and its support for the Indonesian military have caused rumbles in Washington, particularly among human rights advocates like Patrick Leahy, a Democratic senator from Vermont. Citing human rights abuses, Congress in 1992 restricted arms sales and most American training for Indonesian officers, and it enacted new prohibitions in 1999 after a rampage by army-backed militia in what was then East Timor Province. Mr. Leahy sharply criticized Secretary of State Condoleezza Rice's decision to resume aid last year, which the administration described as a reward for Indonesia's improved human rights record and its cooperation with the post-Sept. 11 counterterrorism campaign.

more...

[UpInArms]

57. Gold futures close above $550 an ounce - $550.50 oz

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38726.5844429051-856776861&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- February gold closed at $550.50 an ounce in New York, up $9.30 at its highest close since January 1981, according to weekly charts. The contract climbed as high as $551.40 earlier, the highest intraday level since March 1981. Matthew Parry, an economist at Moody's Economy.com, expects prices to head to $575 from here, in large part on expectations of a weaker U.S. dollar.

:wow:

[54anickel]

60. ZOWIE-WOW-WOW!!! So what's holding the buck up today anyway?

Or the USofA for that matter?

[54anickel]

61. Chinese Reserve Diversification Could Spell Doom for Dollar

http://www.resourceinvestor.com/pebble.asp?relid=15912

snip>

Recently, the Chinese government has been unwilling to reduce the proportion of its dollar holdings lest it initiate a rapid collapse in the currency’s value, which would likely substantially diminish the hitherto esurient appetite of U.S. consumers for Chinese exports, possibly undermining China’s meteoric economic growth trajectory.

However, this argument only goes so far. The Chinese may have now determined that a controlled diversification would bring about only a manageable decline in U.S. demand for their exports; that the potential returns on their gargantuan foreign exchange reserves are simply too alluring to forego any longer; that domestic and non-U.S. foreign demand has grown sufficiently to sustain China’s economic growth despite a loss of U.S. export demand; and that therefore the time has come to cease subsidizing U.S. profligacy by supporting the dollar.

Of course, this decision will be made fundamentally on the basis of Chinese self interest, so the Chinese government should still look to avoid an abrupt harpooning of U.S. consumer demand even as the Chinese economy depends on it less, thanks to the ongoing growth of Chinese domestic demand, and thanks to a resurgence of demand for Chinese exports in the E.U., South Korea and Japan.

Ultimately, in taking this course, China will be estimating that the likely loss of demand from U.S. consumers as the dollar loses value in relation to other currencies will be more than offset by the benefits of having full use of its foreign exchange reserves to gain financial returns or for other economic purposes, and that the situation in China and the rest of the world has evolved in a sufficiently positive manner to make the fall in U.S .export demand virtually immaterial.

It is beginning to look like this is the case. The economies of Japan and South Korea are both recovering strongly from their recent malaises, and their currencies are appreciating, both of which factors will increase their demand for Chinese exports. A similar story may be told of Europe, where the German economy, the continent’s largest, has recently shown signs of being less sickly than previously thought; Eastern Europe is by and large recuperating from decades of communist economic retardation; and the euro may be positioned to benefit from a growing role as a global reserve currency as the dollar becomes less and less suitable for this.

more...


Another interesting headline, though I can't seem to access the article????

FOCUS: Gold Mkt Too Small For Chinese Diversification
http://sg.biz.yahoo.com/060109/15/3xr9z.html

On edit
Here's a working link that I followed from another story at Resource Investor that I'll post separately

http://au.biz.yahoo.com/060109/18/gn71.html

LONDON (Dow Jones)--The world gold market is too small for China to achieve any meaningful diversification into the precious metal, leaving it likely the country will instead follow a more cautious, dollar-bound investment path, analysts said Monday.


Sentiment towards gold has been boosted since Friday, when it was reported that China may start to diversify its foreign exchange reserves away from the U.S. dollar and government bonds.


Hu Xiaolian, director OF China's State Administration of Foreign Exchange, said in a statement last week that the agency plans to "further improve the structure of currency assets in the foreign exchange reserve portfolio and continue to broaden foreign exchange reserves' investment channels."


Taken by many market participants to be a plan to move into gold, the precious metal jumped from an intraday low of $523.15/oz to around $540/oz as the possibility was widely welcomed by gold traders. The metal reached a fresh 25-year high of $544.40/oz Monday.

more...

[54anickel]

63. Is the world gold market too small for China to meaningfully diversify int

Is the world gold market too small for China to meaningfully diversify into gold?

http://www.resourceinvestor.com/pebble.asp?relid=15939

[UpInArms]

23. Mills Corp. takes another hit - restating acct'ng errors 2000-2005

I call bullshit - 2000 through 2005 shows willful intent to deceive :eyes:

http://www.marketwatch.com/news/print_story.asp?print=1&guid={0B3849EC-A53A-456D-958C-103019FE0322}&siteid=mktw

BOSTON (MarketWatch) -- Mills Corp. shares traded nearly 3% lower Monday after the troubled retail and entertainment real-estate investment trust said it would restate earnings, take fourth-quarter charges for several projects and focus on its core operations.

Late Friday, the company (MLS) said it plans to restate audited financial results from 2000 through 2004 as well as unaudited quarterly results for 2005 to correct accounting errors related primarily to certain investments by subsidiary Mills Enterprises Inc.

For the first nine months of 2005, the impact of the adjustments is expected to reduce net loss by 3 cents a share and increase funds from operations by 4 cents a share, the Arlington, Va.-based REIT said. Funds from operations, or FFO, is the benchmark commonly used by analysts to measure REIT performance, and excludes gains or losses on the sale of assets and non-cash charges for depreciation.

The adjustments are expected to reduce net income by 3 cents a share in 2004, 8 cents a share in 2003 and 23 cents share in 2002. The adjustments are also expected to reduce FFO by 3 cents a share in 2004, 7 cents a share in 2003 and 23 cents a share in 2002.

The impact of the adjustments for the years prior to 2002 is expected to be an increase in accumulated deficit of about $9 million as of Dec. 31, 2001.

...more...

[54anickel]

28. GM helps Dow toward 11,000 (Oh the irony!!!)

http://biz.yahoo.com/rb/060109/markets_stocks.html?.v=2

NEW YORK (Reuters) - U.S. stocks inched up on Monday as an upgrade of blue-chip General Motors Corp. (NYSE:GM - News) helped the Dow edge toward the psychologically significant 11,000 mark, while an upgrade of XM Satellite Radio Holdings Inc. (NasdaqNM:XMSR - News) helped tech stocks outpace the broader market.

The last time the Dow hit 11,000 was June 13, 2001, after failing three times to break through that level last year.

On Friday, the Dow Jones industrial average (^DJI - News) closed at 10,959.31, about 41 points below the 11,000 mark, as U.S. stocks capped a week-long rally and pushed the major indexes to their highest closes in 4 1/2 years. The rally was driven by hopes that the U.S. Federal Reserve would soon wrap up its 18-month cycle of interest-rate hikes.

"Friday's close on decent volume bodes well for the rally," said Dan McMahon, head of listed trading at CIBC World Markets Inc. "The tech sector is leading the charge this morning and I wouldn't be surprised to see that continue."

The Dow Jones industrial average (^DJI - News) was up 14.49 points, or 0.13 percent, at 10,973.80. The Standard & Poor's 500 Index (^SPX - News) was up 1.48 points, or 0.12 percent, at 1,286.93. The technology-laced Nasdaq Composite Index (NasdaqSC:^IXIC - News) was up 8.04 points, or 0.35 percent, at 2,313.66.

more...

[54anickel]

42. GM gears up to sell finance stake

http://news.ft.com/cms/s/d1cb5392-809d-11da-8f9d-0000779e2340.html

General Motors has opened a data room to a shortlist of possible bidders for a $10bn-$15bn majority stake in its finance arm and remains confident that the sale process is on track, Fritz Henderson, incoming chief financial officer, said on Sunday.


Mr Henderson, who is two weeks into the job at the troubled US carmaker, said speculation that the sale of a 51 per cent stake in GM Acceptance Corp had hit trouble was incorrect.

“We have had interest in the business,” he said at the Detroit motor show. “Several parties are involved in the discussions with us and we are sharing data. I think it is moving pretty fast.”

There has been concern on Wall Street that GMAC has attracted less interest than expected and that GM could be forced to pull the sale, a prospect that has driven down the value of GMAC’s bonds.

bit more...

[54anickel]

43. Interest grows in overseas equities

http://news.yahoo.com/s/ft/20060108/bs_ft/fto010820061702012655

The trading and investment value of foreign companies' shares listed in New York and London surpassed $1,000bn for the first time last year in a reflection of heightened investor appetite for international equities, the Bank of New York (NYSE:BK - news) is due to report Monday.

The growth of 17 per cent in trading value and of 5 per cent in the trading volume of the shares, known as depositary receipts (DRs), are among the few positive aspects of a market that continued to lag in 2005, amid nervousness by foreign equity issuers about US regulatory regime and the expenses required to comply with it.

However, the new capital raised by such listings rose to $32.5bn last year, from $11.3bn the previous year. Leading the charge were companies from emerging Asian economies. Chungwa Telecom's $17.4bn DR listing set a new record for the largest such single new capital raising of all time.

snip>

Data from the US Federal Reserve, referenced by BoNY, shows the total value of US investment in non-US equities grew by 29 per cent by the end of the third quarter to a total of $2,800bn, comprising about 15.8 per cent of all US equity investment.

In addition, last year's net inflows of capital into international stock funds outpaced inflows into US-only equity funds for the first time in 15 years, according to Strategic Insight, a consultancy referenced by BoNY.

more...

[54anickel]

45. Beyond Keynes to Inflation

http://www.321gold.com/editorials/benson/benson010906.html

Orthodox economic training in the United States in the post-World War II world, centered on the observations of John M. Keynes who claimed that to keep an economy rolling, spending (aggregate demand) needed to be kept alive at all costs. The biggest post-depression fear was that saving too much could cause spending to fall short and recession, or worse, could befall the economy (from 1929 to World War II, the worse did happen). The Keynesian trick used for our central bank was to cut interest rates to a level low enough to encourage businesses to spend excess savings. Low interest rates encourage low financing costs and urge businesses to recycle savings into productive investment, which keeps the economy humming especially if consumer spending is weak.

In the hallowed Ivy League halls of academia (where this author spent too many happy years before having to work for a living), they preach that it is the government's duty, and the central bank's mandate, to spend and print money to keep the economy afloat. The Keynesian trick is certainly easier to pull off when there is some inflation and the Fed can drop interest rates. Interest rates that are below the rate of inflation clearly subsidize old and new borrowers alike, and give an extra boost to the economy. Subsidized borrowers borrow and always find ways to spend money. Even though this economic stimulus trick consisted of a little extra government spending, recycled savings, and credit creation, recycled savings gave the economy the biggest boost, with credit creation adding some inflation to the spending mix. Then, everything began to change.

In the late 1990's, this economic model was scrapped. After Alan Greenspan gave his famous "irrational exuberance" speech about the stock market, he stopped being rational and prudent, and became rational and profligate. He discovered that the stock market bubble - fostered by too much easy credit - made consumers feel really wealthy. By letting money and credit run wild the economy roared, and rising stock market prices created such a false sense of wealth that consumers stopped saving. By 2000, Americans had hardly saved anything and domestic savings to recycle didn't exist. Around this time, Mr. Greenspan declared that "bubbles should not be popped" but the Federal Reserve's job would be to clean up the mess if the bubbles collapsed on their own. So, how does a popped bubble get cleaned up? With easy money, of course!

Cleaning up the first bubble required dropping interest rates to virtually nothing and creating an even bigger bubble in housing. The real estate bubble was far more powerful for spending because of the asset-backed and mortgaged-backed debt markets, which allowed for the virtual unlimited creation of new mortgage credit and money. Moreover, it was seductive telling a potential homeowner to feel comfortable about spending a lot of money to buy a home because property values were always going up. By 2004, it was time to help another sitting President to get re-elected. The housing market was booming and home equity extraction added about $800 billion (a year) to spending, even though this spending left a massive trail of debt.

In looking back now, you can't help but notice how the economic model has changed. For decades, America had an economic model built around recycling savings into investment. In a few short years, those savings have simply vanished and our society has become comfortably cavalier about borrowing far more than they earn.

more...

[Roland99]

46. Come on 11! Come on 11!

DJIA 10,995.80 +36.50
Nasdaq 2,317.82 +12.20
S&P 500 1,288.37 +2.92
Russell 2000 706.07 +6.68



WHEEEEEEEE!!!!!

[54anickel]

47. Why do you build me up (build me up) Buttercup, baby,

Just to let me down (let me down)
and mess me around
And then worst of all (worst of all)
you never call, baby,
When you say you will (say you will)
....

[AnneD]

54. Dizzy....I'm so dizzy my head is spinning...

like a whirlpool it never ends...:puke:




edited for effect.

[54anickel]

48. Fleeting Lessons (Roach)

http://www.morganstanley.com/GEFdata/digests/20060106-fri.html#anchor0

Confession time: I am still not ready to let go of 2005. I’ve gone through my annual ritual of trying to make sense of what went right and wrong on the global macro scene in the year just ended (see my 3 January dispatch, “The Lessons of 2005”). In the spirit of mark-to-market accountability, it was as dispassionate and honest an assessment as I could muster. But the catharsis that normally accompanies such an introspective endeavor is missing. As I look back, I still have a gnawing feeling in the pit of my stomach that 2005 was a year of suspended animation.

The year just ended most assuredly did not go according to my script. An unbalanced world turned out to be more stable than I had thought. And despite a wide array of serious shocks -- from hurricanes to spikes in energy prices -- the expansion was both resilient and durable. The broad consensus of investors, businesspeople, and policy makers has taken great comfort from this benign outcome -- hoping that a similar scenario is in the offing for 2006. A frothy start in the first few trading days of the new year underscores this hope. While I’ve learned never to say never, I must confess that I will be stunned if this year unfolds without a hitch.

It is quite possible that we’re being too analytical in attempting to discern why it all went so well on the global macro front in 2005. It may simply be that the stars were in near perfect alignment, enabling the world to buy an extra year of time. I think the odds are low that an unbalanced world economy will continue to draw support from such a favorable constellation of forces. Reversals are possible on three fronts -- the liquidity cycle, the US property market, or the dollar. Shifts in any one of these areas could well be enough to transform the global outcome from benign to malign. The interplay between these forces could be especially lethal.

A turn in the global liquidity cycle would be the most worrisome development. This will come about only through the conscious design of central banks. Yet that’s exactly what now seems to be under way. The world’s major central banks all seem focused on the same objective -- a normalization of policy rates. The Federal Reserve was first to embark on this campaign, and some 325 basis points later, America’s monetary authorities are signaling that their mission is just about accomplished. The ECB has just begun the march toward normalization, but with Euroland activity now on the rebound, there is reason to believe that additional progress will occur sooner rather than later. Even the Bank of Japan, which has gone to extraordinary measures with its zero interest rate policy for nearly seven years, is dropping strong hints that the first step toward normalization -- in its case, an end of “quantitative easing” -- is just around the corner.

more...

[54anickel]

49. Pension Crisis Could Hit Balance Sheets

http://biz.yahoo.com/ap/060107/wall_main.html?.v=2

YORK (AP) -- The pension system is heading for a crisis, or maybe two.
The first is the most worrisome for workers: Too many pension plans aren't adequately funded or are already in default. The companies in the Standard & Poor's 500 with traditional pension plans need to put aside another $40 billion this year to fully fund the plans, according to S&P.

The second impending crisis is an accounting change that may make pension issues more painful for corporations. Accounting regulations for both pensions and retiree health care costs are poised to change in the next five years, in what could be the largest shift in accounting rules in more than 30 years.

"We believe this project will have a significant impact on evaluations, income and balance sheets, and will become the major issue in financial accounting over the next five years," said Howard Silverblatt, equity market analyst at Standard & Poor's.

The Financial Accounting and Standards Board, the arbiter of the nation's accounting rules, has said it will require companies to add their net pension and retiree-healthcare costs to their balance sheets within the next year. Then, over the next three or more years, the accounting methods for pensions and retiree-healthcare costs will also change.

The first change, which will move pension and retiree-healthcare costs from financial footnotes to balance sheets, could be dramatic, increasing companies' leverage and changing computed returns, book value and shareholder equity ratios. These ratios are closely watched, since many loans and bonds deals cap a company's leverage ratio. And the changes could be eye-popping. The aggregate drop in shareholder equity, for instance, will be 10 percent, Silverblatt wrote in a December report.

more...

[54anickel]

50. Dow Crosses 11,000 for 1st Time Since 2001 (Fleeting moment - they

must have had this story all set for release for quite a while)
http://biz.yahoo.com/ap/060109/wall_street.html?.v=18

Monday January 9, 1:16 pm ET

Dow Jones Industrials Cross 11,000 for First Time Since Before 9/11 Attacks


NEW YORK (AP) -- The Dow Jones industrial average crossed 11,000 Monday for the first time since before the 9/11 terrorist attacks, buoyed by a rally that has sent stock prices soaring through the first five sessions of 2006.

Wall Street's best known stock indicator reached 11,003.50 shortly after 1 p.m. EST, the first time since June 13, 2001 that the index of 30 blue chip stocks traded above that milestone. It last closed above 11,000 on June 7, 2001, when it stood at 11,090.74.

Monday's advance following a 241-point surge last week as investors grew increasingly optimistic that the Federal Reserve will soon end its string of interest rate hikes. The Dow came within 16 points of 11,000 last March 7, but fell back amid worries about inflation and higher oil prices, concerns that dogged the market for much of 2005.

The blue chips are still more than 6 percent below their all-time high of 11,722.98, reached Jan. 14, 2000, as the high-tech boom approached its peak, but they have recovered well from their low of 7,286.27, reached on Oct. 9, 2002, while the nation wrestled with an economic slowdown spurred by the terrorist attacks on the World Trade Center and Pentagon the year before.

more...


Meanwhile at 1:28 (16 minutes later):

Dow 10,994.93 +35.62 (+0.33%)
Nasdaq 2,317.06 +11.44 (+0.50%)
S&P 500 1,287.87 +2.42 (+0.19%)
10-yr Bond 4.379% 0.00
30-yr Bond 4.564% -0.00
NYSE Volume 1,289,072,000
Nasdaq Volume 1,167,054,000


edit to add link

[oneoftheboys]

55. Now, if she will only hold...

and not drop back before the bell.

Yeah!

[ozymandius]

56. While I briefly poke my head in here...

Dow keeps hanging onto 11,000 by its pinky nails.

1:57
Dow 11,016.40 +57.09 (+0.52%)
Nasdaq 2,321.46 +15.84 (+0.69%)
S&P 500 1,290.28 +4.83 (+0.38%)
10-Yr Bond 43.75 -0.04 (-0.09%)
NYSE Volume 1,425,738,000
Nasdaq Volume 1,283,235,000

1:30 pm : After four consecutive sessions of gains that enabled each of the ten sectors to commence 2006 on positive ground, the Utilities sector (-0.8%) is today's primary profit-taking target. Nearly the entire sector is submerged, with over 90% of the S&P 500's utility stocks booking losses. TXU Corp. (TXU 41.41 -0.99) leads the way lower; even Duke Energy (DUK 27.75 -0.04), which had been on the rise due to reports of a $1.5 billion asset divesture, sits in the red. While that sector's loss is the most substantial thus far, selling pressure has been kept somewhat in check. Separately, the Dow has recently touched 11,000 - an important technical level above which the blue chip average has not closed since June 7, 2001.DJ30 +36.17 NASDAQ +11.43 SP500 +2.54 NASDAQ Dec/Adv/Vol 1144/1813/1.17 bln NYSE Dec/Adv/Vol 1135/2083/946.6 mln

[54anickel]

64. 2:49 and 11K appears to be "hard werk"

Dow 10,975.64 +16.33 (+0.15%)
Nasdaq 2,312.90 +7.28 (+0.32%)
S&P 500 1,286.68 +1.23 (+0.10%)
10-yr Bond 4.375% -0.00
30-yr Bond 4.562% -0.00
NYSE Volume 1,663,247,000
Nasdaq Volume 1,507,430,000


2:30 pm : Holding near the high end of today's trading range, the market has little changed since the previous update. The Tech sector has gained steam this afternoon -- doubling its earlier gain largely to the credit of still-surging semiconductors. Underpinning 2006's bullish bias within the space, Piper Jaffray asserted this morning that it's incrementally more positive on semiconductor equipment stocks, noting that it foresees sustainable bookings growth over the next three quarters, positive surprises for capital spending guidance by large chip makers such as Intel and TSMC, and robust end-market demand driving share prices higher. To that end, Piper upgraded KLAC, MTSN, and KLIC today. Still working to limit the sector's advance, though, is downgrade-plagued IBM shares. The stock's rating cut at Prudential follows a target cut at UBS last week. DJ30 +43.23 NASDAQ +12.74 SP500 +3.92 NASDAQ Dec/Adv/Vol 1101/1891/1.40 bln NYSE Dec/Adv/Vol 1042/2215/1.14 bln

2:00 pm : Each of the market's major averages edge further north as the Dow remains above the psychologically important 11,000 mark. On the heels of surging GM (GM 22.72 +1.42) shares and the emergence of relative strength within the retail industry, the Consumer Discretionary sector has jumped into the market's front-running position. Buying action is broad-based, as evidenced in the span of leadership: GM and Ford (F 8.79 +0.27) shine brightest, while Home Depot (HD 41.03 +0.65), McDonald's (MCD 34.56 +0.50) - a Briefing.com recommended holding for active investors - Nike (NKE 87.68 +1.88), Bed Bath & Beyond (BBY 47.97 +0.92), KB Home (KBH 79.68 +3.94), Dillard's (DDS 26.40 +0.92), and Hasboro (HAS 20.42 +0.43 ) currently post some of the most significant gains. DJ30 +58.04 NASDAQ

[UpInArms]

58. NASD charges Oppenheimer, CEO Lowenthal -knowing producing inaccurate data

http://www.businessweek.com/ap/financialnews/D8F18NA80.htm?campaign_id=apn_home_down&chan=db

JAN. 9 11:13 A.M. ET Oppenheimer & Co. and its chief executive Albert Lowenthal were charged with "knowingly producing inaccurate data" by the National Association of Securities Dealers as part of a probe of discount practices in the selling of mutual funds.

The NASD said Monday that in a separate action, it fined the Toronto-based investment firm $250,000 for being late in reporting potential misconduct by brokers.

A spokesman for Oppenheimer couldn't immediately be reached for comment.

The NASD said the complaint stems from a March 2003 report showing a number of mutual-fund transactions in front-end loaded mutual funds that appeared eligible for a breakpoint discount didn't receive one.

...more...

[Tace]

65. Dang -- What Happened?

Dow 10,975 @ 2:50 EST

[TheWatcher]

70. Prinitng Presses Jammed? A Whiff Of Reality Taking over?

[54anickel]

66. The World Isn't Flat, but Its Yield Curve May Be

http://www.nytimes.com/2006/01/08/business/yourmoney/08view.html

This yield curve inversion, as the phenomenon is known, sent the stock market into a brief tailspin and inspired a round of intense chin-tugging among economic analysts. After all, inverted yield curves have generally been viewed as the black cats of the economy, heralding slowdowns at best and recessions at worst.

Still, many economists urged investors to ignore the ill omen because of the uniqueness of the United States economy and the role it plays in the global economy.

Alan Greenspan, the departing Federal Reserve chairman, has labeled the persistence of very low long-term interest rates in the face of solid growth and rising short-term rates as "the conundrum." It is generally agreed that the conundrum can be explained by a combination of factors that keep a lid on long-term rates: an exceptionally flexible and resilient economy, a huge trade deficit that spurs heavy purchases of long-term government bonds by foreign investors, particularly Asian central banks, and the inflation-fighting credibility of the Federal Reserve.

But there are signs that the United States no longer has a monopoly on the conundrum. In recent months, the yield curves in Japan and Germany, the second- and third-largest economies in the world, have been flattening, while the yield curve in Britain has already inverted. "Long-term interest rates are even lower in Europe and Japan than they are in the U.S.," said Kenneth Rogoff, a professor of economics at Harvard.

Yet these economies lack some of the structural features of the United States economy. And each is at a different phase in the business cycle. While America may very likely have a slowdown in growth in the second half of this year, Mr. Rogoff says, Europe and Japan are likely to gain economic strength as the year progresses.

What gives?

more...

[54anickel]

73. 3:31 All the king's horses and all the king's men reporting for duty -

But can they lift the DOW above 11 again?

Dow 10,994.69 +35.38 (+0.32%)
Nasdaq 2,314.17 +8.55 (+0.37%)
S&P 500 1,288.20 +2.75 (+0.21%)
10-yr Bond 4.379% 0.00
30-yr Bond 4.565% 0.00
NYSE Volume 1,892,801,000
Nasdaq Volume 1,711,973,000

No new blather since the 2:30 drivel.

on edit: Are bonds really still flat or is YaHoo "broken"? Can't believe they are still at 0.00

on 2nd edit 3:36 and here comes the blather with the answer on bonds

3:30 pm : As the closing bell approaches, the market's major averages hang on to gains and remain in the midst of the session's relatively narrow range - despite the fact that outperforming Tech has fallen to the flat line. As for the Treasury market, it has stuck within a meager range today as volume has remained thin and trade lacked a spirited driver. The only potential catalyst -- Fed speak -- came up flat and was well within market expectations. Presently, the 10-year note's yield sits at 4.369% while the 2-year's holds at 4.349%, to tilt the 2-10-year yield spread at a slightly narrower 2.0 basis points on the session.DJ30 +28.18 NASDAQ +7.48 SP500 +2.14 NASDAQ Dec/Adv/Vol 1219/1799/1.69 bln NYSE Dec/Adv/Vol 1133/2146/1.38 bln

3:00 pm : Well-paring its afternoon gains, the market heads lower and shoves the indices back to lunch-time levels. The action appears to be related to technical factors, and has most affected the Financial (+0.2%) and Tech (+0.1%) sectors. Each of those remains on positive ground, but have retraced recent advances for which the broader market's rise had been largely credited. At the same, selling across the three lagging sectors has not been exacerbated. Separately, the session's single piece of economic data -- November consumer credit -- has recently been released. Checking in at -$0.6 billion, the read fell below economists' expectations for a $5 billion increase. The data is not expected to much impact trading within either the stock or bond markets, and has had an initial muted effect.DJ30 +20.86 NASDAQ +8.52 SP500 +1.90 NASDAQ Dec/Adv/Vol 1218/1808/1.56 bln NYSE Dec/Adv/Vol 1131/2140/1.28 bln

[UpInArms]

75. 3:52 YEEHAW! 11,000! WHEE!

Dow 11,009.74 +50.43 (+0.46%)
Nasdaq 2,318.31 +12.69 (+0.55%)
S&P 500 1,289.84 +4.39 (+0.34%)
10-Yr Bond 4.379 0.00 (0.00%)

NYSE Volume 2,059,459,000
Nasdaq Volume 1,847,212,000

3:30 pm : As the closing bell approaches, the market's major averages hang on to gains and remain in the midst of the session's relatively narrow range - despite the fact that outperforming Tech has fallen to the flat line. As for the Treasury market, it has stuck within a meager range today as volume has remained thin and trade lacked a spirited driver. The only potential catalyst -- Fed speak -- came up flat and was well within market expectations. Presently, the 10-year note's yield sits at 4.369% while the 2-year's holds at 4.349%, to tilt the 2-10-year yield spread at a slightly narrower 2.0 basis points on the session.DJ30 +28.18 NASDAQ +7.48 SP500 +2.14 NASDAQ Dec/Adv/Vol 1219/1799/1.69 bln NYSE Dec/Adv/Vol 1133/2146/1.38 bln

[UpInArms]

74. New Refco management can't run own affairs -- U.S.

(so what? they're gonna make millions!)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-09T202231Z_01_N09179749_RTRIDST_0_FINANCIAL-REFCO-TRUSTEE.XML

NEW YORK, Jan 9 (Reuters) - The federal government on Monday urged the appointment of an independent bankruptcy trustee for Refco Inc. (RFXCQ.PK: Quote, Profile, Research) arguing the futures and commodities broker's new management and creditors are incapable of running its affairs.

Refco and its official committee of unsecured creditors oppose the naming of a trustee and want to entrust Refco's affairs to its new chief executive, Harrison Goldin.

The committee said Goldin, who as New York City comptroller helped the city rebound from near bankruptcy in the mid-1970s, was "uniquely qualified" to maximize the value of company assets and treat creditors and customers fairly.

In a brief filed with U.S. Bankruptcy Judge Robert Drain in Manhattan, however, U.S. Trustee Deirdre Martini said naming an independent representative would avoid potential conflicts of interest. Refco listed $16.8 billion of liabilities after it filed for Chapter 11 protection last Oct. 17.

"The reorganization needs to be entrusted to someone on the debtors' behalf," Martini wrote. "Neither the debtors nor the committee are legally capable of carrying out those important fiduciary duties."

...more...

[ozymandius]

76. fork-stickin' time

Dow 11,011.90 +52.59 (+0.48%)
Nasdaq 2,318.69 +13.07 (+0.57%)
S&P 500 1,290.15 +4.70 (+0.37%)
10-Yr Bond 43.79 0.00 (0.00%)
NYSE Volume 2,277,418,000
Nasdaq Volume 2,010,547,000

4:20 pm : For the fifth consecutive session, the equity market's major averages closed higher and extended the momentum with which they rang in 2006. While they had maintained positive footing since the morning, the Dow's clearance of a key technical level at which it had not closed since 2001, 11,000, helped increase afternoon buying efforts.

The market lacked much trading catalyst today, as both the corporate and economic fronts were deficient of much market-moving news. Nonetheless, a bullish bias dominated and sent seven of the ten economic sectors higher. On account of a surging auto manufacturing industry, soaring homebuilders, several pockets of relative strength across the retail board, and a sharp pullback in the price of crude futures, the Consumer Discretionary sector (+0.9%) assumed the driver's seat. With respect to auto makers - the commencement of the Detroit Auto Show put the industry in the spotlight as investors attempt to gauge the prospects for returns to profitability. Optimistic comments from GM's (GM 22.40 +1.60) CEO Rick Wagoner and Goldman Sachs' upgrade of GM shares to In-Line from Underweight sent the Dow component and its peers (F and DCX) to the top of the market. Pulling back from recently-hit three-month highs, crude futures dropped 1.3% to $63.40 per barrel and served as another measure of support. As a separate result, the Energy sector's leadership was stunted; the sector demonstrated resilience, however, and closed at the unchanged mark.

A 0.4% advance in the weighty Financial sector lent the most substantial muscle to today's market. A pair of bellwether upgrades - Prudential raised its rating on both J.P. Morgan (JPM 40.67 +0.65) and Merrill Lynch (MER 69.68 +0.98) - helped lengthen the advance that last week's FOMC minutes initiated. Although the Fed's tightening cycle may be nearing its end, the recognition that interest rates will still go higher may have capped the sector's rise; continued attention to the flat yield curve also remains a bearish overhang. Technology wavered somewhat, but still-soaring semiconductors and relative strength in hardware, despite IBM's (IBM 83.73 -1.22) downgrade, helped the sector maintain the spotlight and extend the 5.6% gain it's registered this year. Positive comments on the semi equipment industry out of Piper Jaffray, along with a handful of upgrades and target increases across the sector (including CSCO, KLAC, QCOM), underpinned the bullish bias that has pervaded Technology.

Broad-based buying took Healthcare +0.5% north; following Boston Scientific's (BSX 25.88 -0.36) assertion that it will divest over $4 billion in assets to Abbott Labs (ABT 42.41 +1.52) as part of its acquisition of Guidant (GDT 69.00 +1.65), ABT emerged as a particular bright spot. With respect to the BSX and GDT deal, the former formalized its $25 billion offer, which represents a 12% premium to the revised Johnson & Johnson (JNJ 62.99 +0.39) bid, over the weekend. Further to the M&A front, Tyco (TYC 31.04 +1.06) is reportedly considering a plan to further break up the conglomerate, and Texas Instruments finalized the sale of its sensors and control business to private equity firm Bain Capital for $3 billion. Meanwhile, Duke Energy (DUK 27.05 +0.06) will purchase Duke Energy North America's entire fleet of power generation assets outside the Midwest for about $1.54 billion. The action is reflective of the M&A wave that is expected to persist during 2006.

Today's single piece of economic data was the November consumer credit report - which unexpectedly showed a $0.6 billion decline (consensus +$5 billion). The data did not have much affect on trading within the either the stock or bond markets, though. Two rounds of Fed speak similarly went largely unnoticed, as comments from Atlanta Fed president Guynn and Kansas City Fed president Hoenig delivered little surprise.DJ30 +52.59 NASDAQ +13.07 SP500 +4.70 NASDAQ Dec/Adv/Vol 1193/1872/2.00 bln NYSE Dec/Adv/Vol 1090/2208/1.67 bln

[greiner3]

77. Broke 11 k today;

May it have another 'correction' to deflate bushco talking points. Damn snow is a jerk. how far did he get in school? Did someone actually give him a Bachelor's degree? In what? Poetry? Western Lit?

[54anickel]

78. WILL AMERICANS SACRIFICE MORE OF THEIR OWN FOR THE BANKERS?

http://www.newswithviews.com/Devvy/kidd154.htm

"This notion that the United States is getting ready to attack Iran is simply ridiculous. And having said that, all options are on the table." George Bush, Brussels, Belgium, February 22, 2005.

On December 15, 2005, Bush called Iran "a real threat" and repeated his 2002 harangue that Iran is part of an "axis of evil". Bush went on to say, "I called it part of the 'axis of evil' for a reason. It's a real threat."

Apparently Congress didn't get the message because counterfeit U.S. Sen. Sam Brownbeck, R-Kan., unlawfully got $3 million dollars put in the recent budget to "promote democracy" in Iran! "This money should be made available immediately for those seeking to express their opposition to the hard-line Islamic government and to promote internationally recognized human rights," said Brownback.

Think Bush didn't know about that unconstitutional $3 million dollars in the budget he signed? The president calls Iran evil and Congress turns right around and steals from the people's treasury to fund the very same country's political factions. Since there is no money left in the people's treasury (it's overdrawn by $8.1 trillion dollars and counting), this $3 million dollars will have to be borrowed from the private banking cartel, the "FED."

How long will it take you to earn $3 million dollars? Americans have become little better than beasts of burden, trudging off to one, two or three jobs everyday to pay the money lenders for this type of economic flogging. It is NOT the responsibility of the American taxpayer to fund any foreign countries political parties or factions. Jefferson, Madison, Washington, Patrick Henry - they must all be spinning in their graves sickened by the stupidity of the American people for continuing to support such unlawful actions by any sitting president or Congress. On Nov. 4, 2005, Congress passed a another grossly unconstitutional foreign-aid appropriations bill in the amount of $20.9 billion borrowed dollars. In this monstrous new rape of the people's treasury is a $4 million dollar expenditure to fund Russian political parties. How long does it take you to earn $4 million dollars? How hard is it for you to put food on the table and pay the rent?

more...