STOCK MARKET WATCH, Thursday 12 January

[ozymandius]

Thursday January 12, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 10 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1848 DAYS
WHERE'S OSAMA BIN-LADEN? 1547 DAYS
DAYS SINCE ENRON COLLAPSE = 1509
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 11, 2006

Dow... 11,043.44 +31.86 (+0.29%)
Nasdaq... 2,331.36 +11.04 (+0.48%)
S&P 500... 1,294.18 +4.49 (+0.35%)
30-Year Bond 4.64% +0.03 (+0.69%)
10-Yr Bond... 4.46% +0.03 (+0.68%)
Gold future... 550.10 +4.40 (+0.80%)






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. Watch those spikes on the futures charts. You might put an eye out. n/t

[ozymandius]

2. WrapUp by Chris Puplava

The Dow Jones Industrial Average broke through 11,000 in midday trading after disappointing news from DuPont, which issued a profit warning causing concern over the upcoming 4th quarter earnings season. The profit warning from DuPont comes on the heels of poor reports from Alcoa (AA) and Phelps Dodge (PD) earlier in the week. PD slashed its forecast for 4th Q earnings by more than 70% due to production and sales shortfalls of copper and molybdenum and price hedges. PD production was down due to a delay producing higher ore grades at its Candelaria mine in Chile. Alcoa’s 4th Q profit fell 16% due to higher energy costs and impaired refinery activity from Gulf Coast hurricanes even in the face of higher product prices.

In economic news, the Energy Information Administration (EIA) petroleum status was released today. Crude inventories for the January 6th week fell 2.9 million barrels to 318.7 million barrels, declining more than expected though the news was offset by an increase in gasoline and distillate inventories that exceeded estimates. Gasoline stocks rose sharply, up 4.5 million to 208.8 million, with an increase of 4.0 million in distillates to 133.8 million, leaving distillate stocks in their upper half of their seasonal range. Refinery capacity stood at 89.8% though gasoline production fell sharply last week. The higher gasoline prices are keeping demand in check, with demand up only 1% year-over-year, while distillate demand is up 2.5%.

-cut-

The potential for another spike in energy prices this year seems almost inevitable. Weather forecasters are calling continued above-average hurricane activity due to multi-decadal fluctuations in Atlantic hurricane activity, with alternating periods lasting several decades of generally above-normal or below-normal activity. Adding to a high likelihood of above-normal hurricane activity that can raise oil prices is the geopolitical risk of Iran. Iran recently restarted its nuclear research after a two-year freeze by the U.N. despite Western opposition. Iran’s President Mahmoud Ahmadinejad shrugged off the international outcry saying his country will not be bullied and would push ahead with the program. An even sharper tone came from former President Hashemi Rafsanjani who said, “If they cause any disturbance, they will ultimately regret it. Even if (the Westerners) destroy our scientists, their successors would continue the job,” in a speech aired on state TV.

more...

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

[ozymandius]

3. Today's Reports

8:30 AM Export Prices ex-ag. Dec
Briefing Forecast NA
Market Expects NA
Prior -0.9%

8:30 AM Import Prices ex-oil Dec
Briefing Forecast NA
Market Expects NA
Prior -0.2%

8:30 AM Initial Claims 01/07
Briefing Forecast 325K
Market Expects 320K
Prior 291K

8:30 AM Trade Balance Nov
Briefing Forecast -$65.4B
Market Expects -$66.0B
Prior -$68.9

2:00 PM Treasury Budget Dec
Briefing Forecast $12.0B
Market Expects $4.2B
Prior -$2.9B

[UpInArms]

18. 8:30 reports tumbling in

8:30am 01/12/06 U.S. DEC. IMPORTED PETROLEUM PRICES FALL 0.9%

8:30am 01/12/06 U.S. NOV. TRADE GAP WITH CHINA $18.5 BLN VS $16.7 YR EARLIER

8:30am 01/12/06 U.S. DEC. NONFUEL IMPORTED INDUSTRIAL SUPPLY PRICES UP 0.8%

8:30am 01/12/06 U.S. NOV. TRADE GAP BELOW CONSENSUS OF $66.2 BLN

8:30am 01/12/06 U.S. DEC. IMPORTED NATURAL GAS PRICES FALL 4.7%

8:30am 01/12/06 U.S. NOV. TRADE GAP NARROWS 5.8% TO $64.2 BLN

8:30am 01/12/06 U.S. DEC. IMPORT PRICES EX-PETROLEUM UNCHANGED

8:30am 01/12/06 U.S. DEC. EXPORT PRICE INDEX RISES 0.1%

8:30am 01/12/06 U.S. DEC. IMPORT PRICE INDEX DOWN 0.2% VS 0.1% RISE EXPECTED

8:30am 01/12/06 U.S. CONTINUING JOBLESS CLAIMS RISE 12,000 TO 2.7M

8:30am 01/12/06 U.S. 4-WK AVG. INITIAL JOBLESS CLAIMS FALL 5,500 TO 311,500

8:30am 01/12/06 U.S. WEEKLY INITIAL JOBLESS CLAIMS RISE 17,000 TO 309,000

[UpInArms]

19. Initial Claims @ 309,000 - last wk rev'd up 1K

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38729.3544948032-857056054&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) - First-time claims for state unemployment benefits rose by 17,000 to a seasonally adjusted 309,000 in the week ending Jan. 7, the Labor Department said Thursday. Jobless claims had plunged to a revised 292,000 in the previous week, a 5-year low. The four-week average of new claims fell by 5,500 to 311,500, the lowest since early August, before hurricanes drove a million people from their homes. The claims data are very volatile this time of year. The number of people receiving unemployment benefits, meanwhile, rose by 12,000 to a seasonally adjusted 2.7 million in the week ending Dec. 31. The four-week average of continuing claims rose by 27,000 to 2.68 million.

[Maeve]

29. Employment--or lack thereof--remains the weak spot

From an article by Paul Craig Roberts:

The American Dream has become a nightmare for college graduates who cannot find meaningful work. This fact is made abundantly clear from the payroll jobs data over the past five years. December's numbers, released on January 6, show the same pattern that I have reported each month for years. Under pressure from offshore outsourcing, the US economy only creates low productivity jobs in low-pay domestic services.

Only a paltry number of private sector jobs were created-94,000. Of these 94,000 jobs, 35,800 or 38% are for waitresses and bartenders. Health care and social assistance account for 28% of the new jobs and temporary workers account for 10%. These three categories of low tech, nontradable domestic services account for 76% of the new jobs. This is the jobs pattern of a poor third world economy that consumes more than it produces.

America's so-called first world superpower economy was only able to create in December a measly 12,000 jobs in goods producing industries, of which 77% are accounted for by wood products and fabricated metal products-the furniture and roofing metal of the housing boom that has now come to an end. US employment declined in machinery, electronic instruments, and motor vehicles and parts.2,600 jobs were created in computer systems design and related services, depressing news for the several hundred thousand unemployed American computer and software engineers.

When manufacturing leaves a country, engineering, R&D, and innovation rapidly follow. Now that outsourcing has killed employment opportunities for US citizens and even General Motors and Ford are failing, US economic growth depends on how much longer the rest of the world will absorb our debt and finance our consumption.


http://www.truthout.org/docs_2006/011106N.shtml

[UpInArms]

59. more from that article:

In 2005 for the first time on record consumer, business, and government spending exceeded the total income of the country. Net national savings actually fell.

America can consume more than it produces only if foreigners supply the difference. China recently announced that it intends to diversify its foreign exchange holdings away from the US dollar. If this is not merely a threat in order to extort even more concessions from Bush, Americans' ability to consume will be brought up short by a fall in the dollar's value as China ceases to be a sponge that is absorbing an excessive outpouring of dollars. Oil producing countries might follow China's lead.

Now that Americans are dependent on imports for their clothing, manufactured goods, and even high technology products, a decline in the dollar's value will make all these products much more expensive. American living standards, which have been treading water, will sink.

A decline in living standards is an enormous cost and will make existing debt burdens unbearable. Stiglitz did not include this cost in his estimate.

[UpInArms]

69. India: TCS to hire 8,000 employees, wins $40 mn US deal

http://www.financialexpress.com/latest_full_story.php?content_id=114279

MUMBAI, JANUARY 12: Tata Consultancy Services, India's largest software services exporter, said on Thursday, it would add a gross 8,000 employees in the three months to March 2006. It has won a $40-million multi-year deal from a US consumer goods firm in its fiscal third-quarter to end-December.

The company said 3,500 employees would be directly recruited, while the remaining would come through acquisitions.

...a bit more...

[AnneD]

96. One of hubby's nephews in Bombay (Mumbai)

works for an American Co. He just got a big raise and some traditional Indian benefits (pension plan etc). He got the 4th of July off and traveled a great distance to see us when we were there. He was a sweetie (and drop dead georgous to boot). He is one smart guy that will not be leaving India. The growth and wealth will/is having a profound impact on India's culture.

[Danascot]

107. Retirement Toon

There's a great toon today on retirement... 12th toon down from thr top on the toon page:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x119374

(Sorry, I couldn't get the image directly 'cause I don't have the url to link it)

[UpInArms]

20. November Trade Gap at deficit of $64.2 billion

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38729.3544655093-857056037&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- The U.S. trade deficit narrowed by 5.8% in November to $64.2 billion from a record $68.1 billion in October, the Commerce Department said. The consensus forecast of Wall Street economists was for a deficit of $66.2 billion in November. Exports widened 1.8% to a record $109.3 billion. Imports slipped 1.1% to $173.5 billion. The U.S. trade deficit with China widened to $18.5 billion in November compared with $16.7 bln in the same month last year. Despite the improvement, the U.S. is on track to set a new record trade deficit in 2005. Already for the first eleven months of the year, the trade gap is $661.8 billion. This is above the record $617.6 billion annual deficit set in 2004.

[UpInArms]

24. more info:

http://www.marketwatch.com/news/print_story.asp?print=1&guid={AF46FA21-21D0-46B3-BECC-C6E1E9E5D2D1}&siteid=mktw

excerpt:

Exports widened 1.8% to a record $109.3 billion in November, the largest increase since April.

Imports slipped 1.1% to $173.5 billion, the first decline in imports since July.

Despite the improvement, the U.S. is on track to set a new record trade deficit in 2005. Already for the first eleven months of the year, the trade gap is $661.8 billion. This is above the record $617.6 billion annual deficit set in 2004.

<snip>

The U.S. trade deficit with China widened to $18.5 billion in November from $16.7 billion in the same month last year.

The U.S. deficit with China might top $200 billion this year. Already, the trade gap with China rose to $185.33 billion in the first eleven months of the year, up from $147.77 billion in the same period last year.

...more...

[UpInArms]

21. U.S. Dec. import price index falls 0.2%, 2nd straight drop

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38729.3545835995-857056063&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) - Prices of goods imported into the United States fell for the second consecutive month in December as petroleum prices dropped again, the Labor Department said Thursday. Import prices fell 0.2% in December after a revised 1.8% decline in November. Economists were expecting import prices to rise 0.1%. Excluding petroleum, import prices were unchanged in December. Excluding all fuels, prices increased 0.2%. Export prices, meanwhile, increased 0.1% in December. Excluding agricultural goods, export prices increased 0.1%.

[UpInArms]

76. Philly Fed revises down Dec factory activity index

Those "seasonally adjusted" numbers getting looked at :eyes:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T171756Z_01_N12439068_RTRIDST_0_ECONOMY-FED-PHILLY.XML

NEW YORK, Jan 12 (Reuters) - Factory activity in the U.S. Mid-Atlantic region was not as strong in December as originally reported, the Philadelphia Federal Reserve Bank said on Thursday.

Annual revisions to the Fed's factory activity index showed that the index in December was 10.9, compared with an originally reported 12.6. The revised number showed little change from the revised November reading of 10.7.

A reading above zero points to growth in the region's manufacturing sector.

New orders were also weaker than previously thought, at a revised 5.8 in December compared with an originally reported 8.2. The revisions came as part of the Philadelphia Fed's annual revision of seasonal adjustment factors.

...more...

[UpInArms]

86. Y-T-D Fed Deficit @ $119.3 Billion

2:00pm 01/12/06 U.S. YEAR-TO-DATE DEFICIT $119.3 BILLION

2:00pm 01/12/06 U.S. DEC. FEDERAL OUTLAYS RISE TO RECORD $231 BILLION

2:00pm 01/12/06 U.S. DEC. FEDERAL RECEIPTS $241.9 BLN

2:00pm 01/12/06 U.S. DEC. BUDGET SURPLUS $11 BLN VS. $12 BLN EXPECTED

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38729.5836719329-857092901&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - The U.S. government ran a lower-than-expected surplus of $11 billion in December, the Treasury Department said Thursday. Federal receipts and outlays largely matched expectations, with the government taking in $241.9 billion, the highest December on record. Outlays, meanwhile, rose to $231 billion, the highest ever. Corporate income taxes hit a record also, the Treasury said. Companies paid the U.S. $73.5 billion in income taxes in December. Year to date, the government is running a deficit of $119.3 billion.

[ozymandius]

4. Bankruptcy Filings Hit Record 2M in 2005

WASHINGTON - The rush of indebted consumers to file bankruptcy before a tough new law took effect pushed personal filings for 2005 to their highest annual level on record — more than 2 million, according to new data.

Significant increases in consumer bankruptcy filings occurred in every region, according to the data released Wednesday by Lundquist Consulting Inc., a financial research firm based in Burlingame, Calif. It tallied 2,043,535 new filings last year, up 31.6 percent from 1,552,967 in 2004 — meaning that one in every 53 households filed bankruptcy petitions, according to the company.

The new law, bringing the most sweeping overhaul of the U.S. Bankruptcy Code in a generation and making it harder to erase debts in bankruptcy, took effect on Oct. 17. In anticipation, personal bankruptcy filings jumped in September to the highest on record. They averaged more than 9,000 a day, up roughly 50 percent from 2004's average daily volume, during the first two weeks of September.

By contrast, Lundquist analysts noted a sharp drop in the number of filings since the Oct. 17 deadline. Within the smaller number overall, a greater proportion were made under Chapter 13 versus Chapter 7 of the code. Nearly 60 percent of filings made after Oct. 17 came under Chapter 13, compared with the usual 30 percent under the old regime, Lundquist said.

more...

[UpInArms]

13. Bankruptcy law pushed filings to record high

http://www.twincities.com/mld/twincities/business/13595775.htm

The rush of indebted consumers to file bankruptcy before a tough new law took effect pushed personal filings for 2005 to their highest annual level on record — more than 2 million, according to new data. Significant increases in consumer bankruptcy filings occurred in every region, according to the data released Wednesday by Lundquist Consulting Inc., a financial research firm based in Burlingame, Calif. It tallied 2,043,535 new filings last year, up 31.6 percent from 1,552,967 in 2004 — meaning that one in every 53 households filed bankruptcy petitions, according to the company. The new law, bringing the most sweeping overhaul of the U.S. Bankruptcy Code in a generation and making it harder to erase debts in bankruptcy, took effect on Oct. 17. In anticipation, personal bankruptcy filings jumped in September to the highest on record. They averaged more than 9,000 a day, up roughly 50 percent from 2004's average daily volume, during the first two weeks of September.

[ozymandius]

5. Oil Prices Climb Above $64 a Barrel

SINGAPORE - Oil prices rose Thursday amid market jitters over Iran's nuclear development and on traders' convictions that economic growth will cause energy consumption to rise.

The upward pressure came despite a U.S. report showing a surge in inventories of gasoline and heating oil.

-cut-

The threat of instability in the oil-rich Middle East raised concerns this week after Iran said Tuesday it would allow work at its nuclear research facilities to resume despite warnings from Western countries.

"We believe that Iran matters more than is currently priced in, and that Iran's external relations remain the key wildcard," Barclays Capital's Paul Horsnell wrote in a research note.

"We continue to see Iran as representing a severe upside risk for prices this year," he wrote.

more...

[ozymandius]

6. BP to make biggest profit in UK history despite hurricanes

BP has taken a billion-dollar battering from US hurricanes in the fourth quarter but is still on track to announce annual profits of over $21bn (£12bn) next month - the biggest in British corporate history.

The oil and gas group disclosed yesterday that it would take a $400m charge at its Texas City refinery alone but its 2005 profits would still be around a quarter better than in 2004, on the back of soaring oil prices. BP's profits in total could pay off a third of Britain's latest budget deficit and would be equal to the entire gross domestic product of Iraq in the latter days of Saddam Hussein.

The fourth quarter trading statement was seen as a mixed bag by the City, allowing the company's shares to tread water at 643p. But Britain's biggest company by market capitalisation felt the continuing aftermath of Katrina and other hurricanes with output down on a year ago. BP produced an average of 4.01m barrels of oil equivalent per day in the latest quarter, compared with 4.09m during the same period 12 months earlier.

-cut-

BP said yesterday that the total cost of hurricane damage across its facilities, in terms of lost profits and repairs, would amount to over $1bn in the three months. Barrels lost in the Gulf of Mexico hit the company particularly hard because they are among the most profitable in BP's global portfolio. There was no statement on when the Texas City plant would restart and some analysts believed it would not be before April.

more...

[UpInArms]

72. BP, New Jersey settle gasoline pricing claims

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T164903Z_01_N12265138_RTRIDST_0_ENERGY-BP-GASOLINE.XML

NEW YORK, Jan 12 (Reuters) - Oil major BP Plc (BP.L: Quote, Profile, Research) and the state of New Jersey have settled a dispute over the company's gasoline pricing practices, with BP agreeing to pay $315,000 in penalties.

BP Products North America Inc. did not admit any wrongdoing in settling the case, which stems from gas station inspections around the Labor Day weekend in 2005. The deal was announced on Wednesday.

The agreement covers both company owned-and-operated service stations as well as commissioned agents. The settlement funds will be used for various consumer initiatives.

New Jersey has pursued various gas retailers for pricing infractions in the wake of last August's Hurricane Katrina, which led to shortages of gas in some places and sent prices soaring over $3 a gallon or more in many communities.

...more...

[UpInArms]

12. Oil Rises a Second Day on Concern Iran Dispute May Cut Supplies

http://www.bloomberg.com/apps/news?pid=10000085&sid=al6.jIZ0rdo8&refer=europe

Jan. 12 (Bloomberg) -- Crude oil rose for a second day on concern Iran, OPEC's second-largest producer, may cut exports amid a dispute with Europe and the U.S. over a plan to resume research on uranium reprocessing.

Iran's decision is ``very serious indeed'' and likely to lead to its referral to the United Nations Security Council, U.K. Prime Minister Tony Blair said yesterday. U.K. Foreign Secretary Jack Straw will meet with his counterparts from France and Germany in Berlin today to discuss Iran's decision.

Iran's ``drive to nuclear arms is hugely worrisome to an oil world in which you do not have enough oil supplies,'' Jan Stuart, an energy economist at UBS AG, said in New York.

Crude oil for February delivery rose as much as 67 cents, or 1.1 percent, to $64.61 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $64.49 at 11:36 a.m. in Singapore, 39 percent higher than a year ago.

...more...

[UpInArms]

30. IntercontinentalExchange trading hit record volume Wednesday

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38729.3758829745-857059543&siteID=mktw&scid=0&doctype=806&

NEWS YORK (MarketWatch) -- IntercontinentalExchange said Thursday it reached record trading volume Wednesday both exchange-wide and on its IPE Gas Oil futures contract. Total exchange volume reached 299,585 contracts, exceeding the previous daily record 295,501 contracts set on Aug. 10. Volume in IPE Gas Oil contracts reached 94,646 contracts, compared with the previous daily record 92,982 contracts on Dec. 9. IntercontinentalExchange, Atlanta, operates an electronic global futures and over-the-counter market for energy commodities contracts.

[UpInArms]

40. Feb Crude @ $64.50 bbl - Feb NatGas @ $9.28 mln btus

10:06am 01/12/06 FEB CRUDE CLIMBS 56C TO $64.50/BRL IN NY

10:06am 01/12/06 FEB NATURAL GAS UP 4.2C AT $9.28/MLN BTUS AHEAD OF STK DATA

[UpInArms]

50. Oil Nears Three-Month High; UN Sanctions May Hurt Iran's Output

http://www.bloomberg.com/apps/news?pid=10000087&sid=a6kz.0SHdEQI&refer=top_world_news

Jan. 12 (Bloomberg) -- Crude oil approached a three-month high on speculation Iran's nuclear program would trigger United Nations sanctions, depriving the world's fourth-largest oil producer of the equipment and technology it needs to pump more crude.

Iran's decision to resume nuclear research will probably lead to its referral to the UN Security Council and possible sanctions, U.K. Prime Minister Tony Blair said yesterday. Iran is the second- largest oil producer in OPEC, whose member nations hold of most of the world's spare capacity to produce crude oil.

``The concern is that if they proceed with the uranium program, sanctions are going to be imposed,'' said Bruce Evers, an analyst with Investec Securities in London. ``Iran is still viewed as a pariah state by the Americans, who are good at hitting where it hurts.''

<snip>

After global demand for crude surged in the past two years, spare capacity to cope with supply disruptions has dwindled. Iran produces about 4 million barrels a day, almost 5 percent of world output. That's more than Saudi Arabia, the country with the largest extra capacity, could compensate for.

...more...

[UpInArms]

51. Gas Stockpile down 20 bln cubic ft - Feb NatGas @ $9.38 mln btus

10:32am 01/12/06 FEB NATURAL GAS CLIMBS 14.2C TO $9.38/MLN BTUS ON STK FALL

10:31am 01/12/06 U.S. NATURAL GAS STKS DOWN 20 BLN CUBIC FT: ENERGY DEPT

[UpInArms]

70. Feb Crude @ $64.75 bbl

11:45am 01/12/06 FEB CRUDE UP 81C AT $64.75/BRL AFTER 3-MO HIGH OF $65.05

[UpInArms]

83. Feb Crude @ $64.75 bbl - Feb NatGas @ $9.12 mln btus

1:04pm 01/12/06 FEB NATURAL GAS FALLS 1.3% TO $9.12/MLN BTUS

1:04pm 01/12/06 FEB CRUDE UP 71C AT $64.75/BRL IN NY

[UpInArms]

93. Feb Crude closes @ $63.94 bbl - Feb NatGas @ $8.943 mln btus

2:58pm 01/12/06 FEB CRUDE CLOSES FLAT AT $63.94/BRL AFTER $65.05 HIGH

2:55pm 01/12/06 FEB NATURAL GAS FALLS 29.5C, OR 3.2%, TO $8.943/MLN BTUS

[UpInArms]

7. daily dollar watch

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

Last trade 88.88 Change -0.01 (-0.01%)

Lower Oil Supplies Weigh on Dollar

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/5986_lower_oil_supplies_weigh_on.html

US Dollar

For once, we are seeing a bit of consensus price action in the dollar. Picking up from where it left off at the beginning of the year, the dollar has weakened across the board. The economic calendar is fairly barren today with the release of only weekly data. Mortgage applications for the week ending January 6th increased a seasonally adjusted 9.9 percent. This is the first increase in applications that we have seen in five weeks. The improvement was most likely attributed to the fall in mortgage rates. The relatively subdued action in the far end of the curve has helped keep the growth in mortgage rates relatively tame. The 30-year fixed rate mortgage rate decreased from 6.15 percent to 6.08 percent, which is also the lowest rate seen since October. Although this report, though volatile, should have been mildly dollar positive, the dip in inventories reported by the Energy Department offset any bullish momentum. Crude prices have ticked higher once again as lower supplies come at a time when there is growing tension in Iran, Venezuela and Russia. Tomorrow, we will finally receive some meaningful US data. The trade deficit for the month of November is expected to shrink from $68.9 billion to $65.4 billion thanks to a 10 percent slide in crude prices during the same month. With triple digit net foreign purchases of US securities in the last 2 months, worry about funding the deficit will be shoved onto the sidelines for the time being. In all likelihood, the stronger report will be taken quite positively by the market. The risk for another record high trade deficit seems unlikely in November, but we should not forget that even if the deficit does improve, funding of the deficit is becoming a greater concern with talk of reserve diversification throughout Asia.

...more...

Tomorrow's Economic Releases: Central Banks And U.S. Trade Balance Galore

http://www.dailyfx.com/story/calendar/key_events/5981_tomorrows_economic_releases_central_banks_and_us_trade.html

US Trade Balance (NOV) (13:30 GMT, 8:30 EST)
Consensus: -$65.9B
Previous: -$68.9B

Outlook: With expectations of interest rate hikes coming to a close, the United States trade balance emerges as one of the new topics of choice. The large negative sentiment following the previous month’s record deficit has led expectations of a contraction to $65.9 billion to rally against the Euro and Yen prior to the actual indicator’s release. Market participants and economist alike will closely monitor the November’s trade balance as Thursday’s report will present a clearer picture of the economy’s health and how the Fed will set monetary policy in the future. Even if crude prices decline and improve the deficit for the period; an expected 0.1 percent rise in imports, following October’s 1.7 percent drop, could indicate deeper woes. Major outflows of dollars to trade partners like China and the European Union could easily fill the gap reprieved by energy products. As a result, monetary policy makers could take a more dovish policy stance in the near future in an attempt depreciate the currency relative to others and attempt to repair the balance where fiscal policy has failed.

Previous: In October the US trade deficit unexpectedly ballooned to a record $69.9 billion exceeding expectations of a more reserved $66 billion. Exports for the period only grew 1.7 percent whereas imports rose to 2.7 percent with the highest imports coming from crude oil, automobiles, and televisions. Although the deficit indicates strong demand from Americans, the increase in imports eats away at GDP with US dollars flowing to foreign producers. Meanwhile, the deficit with China, the largest the US has with any individual country, continues to spark heated debates. As China keeps its Yuan artificially low by pegging it to a basket of currencies largely denominated in US dollars, it gives China an unfair advantage by making Chinese goods cheaper on the global market. Nevertheless, the US imports approximately 50 percent more goods and services abroad than it sells. Consequently, the deficit is likely to subsist well into the future.

...more...

[UpInArms]

15. U.S. dollar mostly lower ahead of trade data

http://www.marketwatch.com/news/print_story.asp?print=1&guid={34D1C8E2-6DD9-4DF7-95D8-219BEF212A5B}&siteid=mktw

NEW YORK (MarketWatch) -- The U.S. dollar was mostly lower early Thursday due to anxiety over upcoming merchandise trade data.

Decisions by the European Central Bank and the Bank of England to leave interest rates unchanged, as widely expected, had little effect on trading. A press conference at 8:30 a.m. Eastern may alter the scene.

The U.S. trade deficit, also due at 8:30 a.m., is expected to narrow to $66.2 billion in November from $68.9 billion in October.

"A renewed acceleration in the U.S. trade deficit and the looming conclusion of the Federal Reserve's tightening campaign both conspire to stand in the way of the dollar's yield-based rally, and should accelerate selling momentum in the currency in the short term," said Ashraf Laidi, chief currency analyst at MG Financial Group.

...more...

[UpInArms]

27. Euro edges up vs dollar after Trichet remarks

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T134952Z_01_NYH000123_RTRIDST_0_MARKETS-FOREX-EURO-URGENT.XML

NEW YORK, Jan 12 (Reuters) - The euro edged up against the dollar on Thursday after the European Central Bank President Jean-Claude Trichet said monetary policy in the euro zone remains accommodative.

The euro rose to $1.2120, up from $1.2100 shortly before the press conference with Trichet began, but relatively unchanged from late Wednesday.

"Our monetary policy stance remains accommodative, we will continue to monitor very closely all developments with respects to risks over the medium term," said Trichet.

[converted_democrat]

32. Good morning UIA!!

:hi: How are you today?? I'm going to spend the day brushing up on my Spanish skills.. Another DU'er sent this to me this morning.. Between this and the new "annoying email" law, I'm having a hard time seeing the light at the end of the tunnel.. Tu habla espanol?


http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x2363410

[UpInArms]

35. I guess I shall add Spanish language studies to my list

of this year's classes!

:banghead:

Have I said how much I hate the BFEE lately?

[skids]

44. Hablo Espanol.

That's "?Hablas Espanol?" (familiar, "tu" is implicit in the conjugation so most often omitted) or "?Habla usted Espanol?" (proper.) The form "Is Spanish spoken?" or actually to order the words the same "spoken Spanish?" ("?Se hablan Espanol?") is often used for "do they speak Spanish?"

I figured you might as well start brushing up there :-)

[converted_democrat]

52. I'm so screwed!! My high school Spanish teacher actually spoke French..

And knew about as much Spanish as I did..(none) I can remember Mrs. Blackstone like it was yesterday.. "This isn't really that important for you to learn, I mean, what are the chances you'll ever really need it? Why don't we just use this as an extra study hall?" I passed Spanish with straight A's and all I had to learn how to do was count to ten..

[Maeve]

71. Gee, you coulda passed after a viewing of Sesame Street

"Uno, dos, tres, qua...tro"....
Now I've got that tune stuck in my head! :argh:

[EuroObserver]

53. ¡Saludos skids!

(Desde otro mundo).

...Long lunch today. Time for a siesta now...

[skids]

60. Hola.

Uno dia, tengo que levar de mi grupa Americana perezosa y conocer a utilizando la "compound key" para hacer acentos y puntuacion. :-)

It took me about 5 minutes just to write that. Hace muchos anos desde habla Espanol.

[EuroObserver]

66. Hi. Dell computer over here sells

the quite international Spanish keyboard, full of accents and, eg: çoño!¡!

[AnneD]

74. Dios Meo...

Es muy malo. Estuda espanol y frances in escula muchas anos pasados. Hablo mas bueno que escribo. Mi gusto Canada. Donde es en pias bueno in America del Sur o Central. Costa Rica is buena. Mi esposa hablas muchas lingua y desia a vamos al India. La Estada Unidas no es mi pais.

This is bad. I studied spanish and french in school many years ago. I speak better than I write. I prefer Canada. Where is a good country in South or Central America. Costa Rica is nice. My hubby speaks many languages and wants to go to India. America is not my country.

[converted_democrat]

89. I'm thinking Mexico.. Canada would be great, but they are going through

their own issues with the right wingers, and I don't know if it's going to be the haven that it is now in a few years.. Same with Australia.. It's getting bad all over.. I'm sick to my stomach over this stuff. I never could've imagined this country could fall so far so fast.. I don't know where to go, and I don't know what to do..

[UpInArms]

8. Japan's Tanigaki, U.S. officials discuss yuan

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T021955Z_01_N11375741_RTRIDST_0_ECONOMY-JAPAN-TANIGAKI-UPDATE-3.XML

WASHINGTON, Jan 11 (Reuters) - Japanese Finance Minister Sadakazu Tanigaki discussed China's currency policy with U.S. officials on Wednesday, emphasising a shared concern over what they see as a lack of flexibility in the yuan.

Tanigaki, in Washington during a week-long visit to the United States, said he did not discuss dollar/yen rates in meetings with U.S. Treasury Secretary John Snow and Vice President Dick Cheney as markets had speculated they would.

"We had a broad-ranging exchange of views on foreign exchange and it was not about the dollar and yen, but about the Chinese yuan," he told reporters following the meetings.

"China has done various things to its (currency) system but I think there is room for it to do more in terms of managing its policy. Further flexibility would not only help China but help the global economy," he said.

China revalued the yuan in July by 2.1 percent and dropped a dollar peg, deciding instead to manage its value with reference to a basket of currencies. The yuan has consistently trended higher since then, but only in minuscule steps.

...more...

[UpInArms]

9. Japan's Tanigaki: No FX, rate debate with Bernanke

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T000040Z_01_WAT004684_RTRIDST_0_ECONOMY-JAPAN-TANIGAKI-BERNANKE-URGENT.XML

WASHINGTON, Jan 11 (Reuters) - Japanese Finance Minister Sadakazu Tanigaki said he did not discuss currencies or interest rates with White House economic adviser Ben Bernanke at their meeting on Wednesday.

Tanigaki said he and Bernanke, who has been nominated as the next chairman of the U.S. Federal Reserve, discussed economic conditions in their respective countries.

"I myself explained the economic situation in Japan and the policies that we are undertaking," Tanigaki told reporters after the meeting. "I mentioned oil prices," as a risk, he added, but declined to comment on what Bernanke had said at the meeting.

[OrangeCountyDemocrat]

80. But What Kind Of Sushi Did They Order?

Since they didn't have time to discuss anything important like interest rates and such.....that surely left more time for looking at colorful menus and deciding what type of sushi they wanted for lunch.

[UpInArms]

10. Top Dogs Keeping More of the Spoils for Themselves

http://www.underthecounter.net/

Top execs are keeping a much bigger portion of the earnings pie for themselves than they were a decade ago according to a recent study by Lucian Bebchuk, a Harvard Law scholar of executive-pay practices, and Cornell's Yaniv Grinstein. From 1999 to 2003, the five top folks at each of the 1,500 largest publicly traded companies cumulatively took home $122 billion in salary, bonus and stock, compared with $68 billion from 1993 through 1997. Between 2001 to 2003, this cane out to 9.8% of the companies' net income, almost double the 5% in 1993 to 1995. As Mel Brooks said, it's good to be the king.



...more...

[UpInArms]

11. Walt Disney chiefs earn $16.9M bonus

http://www.marketwatch.com/news/story.asp?guid=%7B5184990D%2D934A%2D42DA%2DA37C%2D6305A7248EA9%7D&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- For fiscal 2005 the current and former chief executive officers of Walt Disney Co. earned a combined total of $16.9 million in bonuses, according to a regulatory filing.

On Wednesday, Disney (DIS) told the Securities and Exchange Commission that Michael Eisner, who served as chief executive officer until Oct. 1, received a $9.11 million bonus, in addition to a $1 million salary. The company said Robert Iger, Eisner's successor, was paid a $7.74 million bonus, on top of a $1.5 million salary.

When evaluating the subjective component of Eisner's bonus, who served as CEO for all of fiscal 2005, the committee considered factors such as: the successful opening of a theme park in Hong Kong and the former CEO's substantial contribution to "an effective and seamless" management transition.

When evaluating the subjective component Iger's bonus, Disney said it considered a variety of his "accomplishments," such as the continued growth in the media networks business and his focus on strategic initiatives to drive growth, including internal reorganizations, technology initiatives and international expansion.

...more...

[Coexist]

34. unreal. n/t

[UpInArms]

42. U.S. CEO confidence improves in fourth quarter

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38729.4204339352-857066770&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- U.S. chief executive officers are "cautiously optimistic" about their own company, their industry and the national economy, the Conference Board said Thursday. The private research group said its quarterly CEO confidence index improved to 56 in the fourth quarter from 50 in the third quarter. Confidence was 61 in the fourth quarter of 2004 and peaked at 73 in the first quarter of 2004. The CEOs expect to raise their prices by an average of 3.4% in 2006.

[UpInArms]

45. Wall Street bigs go on $21B bonus spree

http://www.nydailynews.com/business/story/382017p-324365c.html

Massive bonuses are putting as much as $30 million in the back pockets of the masters of finance - and bringing a payday to luxury retailers.

More than $21.5 billion has been handed to the finance world's deal-makers - the most ever, state Controller Alan Hevesi said yesterday.

"A small handful of CEOs, those at the top investment banks, make in the $30 to $40 million range," said Andrew Roost of consultant Johnson Associates. "Almost all of that is in bonuses."

<snip>

For exclusive Japanese jeweler Mikimoto, business at its Fifth Ave. store has been brisk - particularly for South Sea pearls, which cost up to $37,000.

...more...

[UpInArms]

46. UAL's CEO Tilton Seeks $15 Mln bonus as Airline Prepares Bankruptcy Exit

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aOukNoXAWO60&refer=home

Jan. 11 (Bloomberg) -- United Airlines parent UAL Corp. is considering paying Chief Executive Officer Glenn Tilton $15 million in stock after the carrier exits bankruptcy, according to a consultant's review of the proposal obtained by Bloomberg.

The company's top eight executives would receive over four years restricted stock and options valued at $24 million, giving them a 3.3 percent stake. The plan would reserve a total of 11 percent of the company's new shares for 400 top executives at United, the world's second-biggest airline.

The proposal is part of the company's latest offer to creditors and unions, whose support the carrier is seeking in its bid to emerge from bankruptcy. Creditors of the Elk Grove, Illinois-based company objected to a previous plan to award 15 percent of the company to executives. A court is scheduled next week to consider the company's plan to exit three years of Chapter 11 protection as early as February.

``This seems reasonable in comparison to what has been done in other large public company cases,'' said Lynn LoPucki, a UCLA law professor who specializes in bankruptcy law. Some executives at bankrupt companies get more than that just for confirmation of a plan and don't have a vesting period to encourage them to stay at the company, LoPucki said.

United's bag handlers and flight attendants union objected to the new plan, calling it unfair in light of $4 billion in employee pay and benefit concessions provided to help United survive during its bankruptcy reorganization.

...more...

[skids]

47. Question.

How much does executive pay affect the national wage increase/decrease figures?

[UpInArms]

48. Your question reminds me of an example:

If there are 9 men that are homeless and penniless sitting at a table and Bill Gates joins them, what is the average worth of each of the men at the table?

[skids]

49. Yes, my thoughts precisely.

:-). Or should I say :grr:

[UpInArms]

56. Abramoff's Kind of Big Government

http://counterpunch.org/lichtman01112006.html

Dig beneath the surface of the Abramoff affair and you find the deeper scandal within: the systematic corruption by wealthy corporate interests of a once principled conservative movement. The result is a supposedly conservative Republican administration that has trampled every principle that conservatives once held dear: family decision making, privacy, individual liberty, fiscal responsibility, limited government, and respect for the rule of law. Instead, George W. Bush and his allies have served their corporate clients by building the biggest, most intrusive, and least responsive government in our history.

Although its roots run more deeply into the recent past, the Gingrich Revolution of 1994, when Republicans captured both houses of Congress, marks the rise of bought and sold conservatism, as business tightened its grip on conservative organizations and the Republican Party. Corporate donors began expecting and receiving value returned for contributions to the American Right, not just the advancement of conservative principles, but direct action to boost profits.

The flagship Citizens for a Sound Economy (CSE) exemplified this new trend by serving corporate donors as combination think tank, lobbyist, advertiser, and grassroots agitator. With C. Boyden Gray, formerly Ronald Reagan's White House Counsel, monitoring its work, CSE served corporate priorities. According to information uncovered by the Washington Post, CSE joined with donors from the oil, gas, and coal industries in 1994 t! o kill a proposed energy tax. CSE opposed a multi-billion dollar federal project to restore the Everglades that threatened cane-growing land, netting it $700,000 from Florida sugar cane companies. CSE received $175,000 from Exxon after it derided theories of global warming as "junk science" and it received $75,000 from the Florida auto rental industry to back legislation that limited renter's liability from lawsuits. Scores of kindred groups followed the CSE model nationally and locally.

The Gingrich Revolution also spawned a new breed of lobbyist, shown in its most virulent form by Jack Abramoff. The new lobbyists not only siphoned off huge profits for themselves, but also orchestrated flows of big money to targeted officeholders and candidates and to conservative organizations that dispensed travel and perks to opinion-makers and public officials.

Corporate and political interests also came together in the so-called "K Street Project." According to a previously undisclosed 1998 Republican Party memo, the GOP would pressure lobbying groups "to hire more Republicans; Republican leadership refuses to meet with Dems; make Fortune 500 firms aware of whom they are hiring to represent them in Washington." Representative Tom DeLay of Texas first led the K Street Project, which prospered after the election of George W. Bush in 2000 and the participation of Senator Rick Santorum of Pennsylvania.

...more...

[girl gone mad]

87. It's long past time to..

outsource executives.

The average executive in India makes pennies on the U.S. executive's dollar.

[AnneD]

97. I have been wanting to outsource

our country's administration to India for some time.

[UpInArms]

14. It's time for real punishment for ethical breaches by media

http://www.marketwatch.com/news/story.asp?guid=%7BA8D3F784%2D15D0%2D4AC6%2D83C4%2DEB4721421FF6%7D&symbol=&siteid=mktw

SANTA MONICA, Calif. (MarketWatch) -- Journalists and writers should be fined, penalized and even prosecuted for their ethical breaches.

More than the prospect of shame, job loss or ostracism, journalists and writers should have to face criminal or civil consequences like everyone else.

We hold accountable politicians -- and fine, penalize and prosecute them, as the Jack Abramoff case exemplifies. We hold accountable business executives -- and fine, penalize, and prosecute them, as the Martha Stewart case (among many others) exemplifies.

Recent breaches of media ethics, however, haven't produced nearly as serious repercussions. Lapses in reporting by the New York Times may have instigated a war. And author James Frey, who wrote "A Million Little Pieces," seems to have dashed the hope and courage he gave millions with his alleged fabrications of events in his book.

Journalists and writers who hold themselves out as telling the truth should face punishment for telling lies. Thirty years ago Bruce Swain wrote a manual entitled "Reporter's Ethics," in which he writes "handling of ethics that arise in their work remains a matter of personal integrity for individual reporters with or without recourse to a written code."

...more...

[UpInArms]

16. Alito & the Ken Lay Factor

http://www.consortiumnews.com/2006/011106.html

The “unitary” theory of presidential power sounds too wonkish for Americans to care about, but the confirmation of Samuel Alito to the U.S. Supreme Court could push this radical notion of almost unlimited Executive authority close to becoming a reality.

Justice Alito, as a longtime advocate of the theory, would put the Court’s right-wing faction on the verge of having a majority committed to embracing this constitutional argument that would strip regulatory agencies, such as the Securities and Exchange Commission and the Federal Communications Commission, of their independence.

If that happens, George W. Bush and his successors would have the power to instruct these agencies what to do on regulations and enforcement, opening up new opportunities to punish enemies and reward friends. The “unitary” theory asserts that all executive authority must be in the President’s hands, without exception.

The Supreme Court's embrace of the “unitary executive” would sound the death knell for independent regulatory agencies as they have existed since the Great Depression, when they were structured with shared control between the Congress and the President. Putting the agencies under the President’s thumb would tip the balance of Washington power to the White House and invite abuses by letting the Executive turn on and off enforcement investigations.

For instance, if the “unitary executive” had existed in 2001, Bush might have been tempted to halt the SEC accounting investigation that spelled doom for Enron Corp. and his major financial backer, Enron Chairman Kenneth Lay. As it was, the relative independence of the SEC ensured that the accounting probe went forward and the fraudulent schemes propping up the Houston-based company were exposed.

...more...

[UpInArms]

17. Printing Press Report:Fed adds banking reserves via 14-day system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T132352Z_01_N12301177_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Jan 12 (Reuters) - The Federal Reserve said on Thursday that it added temporary reserves to the U.S. banking system through 14-day system repurchase agreements.

The benchmark federal funds rate last traded at 4.25 percent, the Fed's 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]

25. Treasurys fall back slightly after data

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38729.3634690625-857057459&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Treasurys briefly ticked higher, then fell back slightly following the release of November trade data showing an unexpected narrowing of the deficit from the month earlier. Separate data showed import prices down 0.2% in December, and jobless claims up in the latest week. The benchmark 10-year was last up 3/32 at 100 14/32, yielding 4.446% as traders digested the data. The market is looking to an auction of 10-year TIPS later today.

[UpInArms]

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

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T143539Z_01_N12256422_RTRIDST_0_MARKETS-FED-OPERATIONS-UPDATE-1.XML

NEW YORK, Jan 12 (Reuters) - The Federal Reserve said on Thursday that it added temporary reserves to the U.S. banking system through overnight system repurchase agreements.

Earlier, the Fed added temporary reserves to the banking system through 14-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]

43. US Treasuries up on trade data, early Asian buying

I guess Heartless Dick twisted some Japanese arms yesterday :eyes:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T150914Z_01_N12351797_RTRIDST_0_MARKETS-BONDS-UPDATE-1.XML

NEW YORK, Jan 12 (Reuters) - U.S. Treasury debt prices extended early gains on Thursday after data showed that the U.S. trade deficit narrowed slightly in November, easing the need for foreign investment in the market.

The government said the trade gap, which must be offset through foreign buying of U.S. securities like Treasuries, shrank to $64.21 billion in November from October's $68.13 billion, helped by record exports.

Bond market reaction was muted, with traders saying most of the rise in prices was related to early Asian buying that followed price declines in the wake of Wednesday's disappointing auction of five-year U.S. Treasury notes.

They said the prospect of plentiful supply coming to market, beginning with Thursday's $9 billion sale of 10-year Treasury inflation protected securities, or TIPS, is likely to keep some downward pressure on prices.

"There was some buying out of Asia, but with all the supply coming up, I've got to believe prices are probably going to be heading lower," said a trader at one of Wall Street's primary Treasuries dealers.

By the end of February, the Treasury Department will have issued more than $125 billion in debt, making the start of 2006 one of the biggest in terms of issuance in years. Corporate debt issuance, also seen as relatively high early this year, is adding to the weight on prices, analysts said.

...more...

[UpInArms]

58. Printing Press ALERT: Fed buying bills, adding permanent reserves

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T154005Z_01_N12258235_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Jan 12 (Reuters) - The Federal Reserve said on Thursday that it was buying bills in the open market, adding permanent reserves to the banking system.

The Fed said it was buying bills with maturities ranging from February 23, 2006 to May 4, 2006. There were no exclusions. Delivery is for Friday.

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]

65. Printing Press Report:U.S. Treasury to sell $37 bln bills on Tuesday

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T160459Z_01_WBT004529_RTRIDST_0_ECONOMY-BILLS-URGENT.XML

WASHINGTON, Jan 12 (Reuters) - The U.S. Treasury Department said on Thursday it will sell $20 billion of three-month bills and $17 billion of six-month bills on Tuesday, Jan. 17.

The bills will be issued on Thursday, Jan. 19.

Proceeds will be used to refund an estimated $33.31 billion of publicly held 13- and 26-week bills maturing Jan. 19 and to raise about $3.67 billion of new cash. Also maturing is an estimated $11 billion of publicly held 4-week Treasury bills, the disposition of which will be announced Jan. 17.

The three-month bills mature on April 20, while the six-month bills mature on July 20.

...more...

[UpInArms]

77. Treasuries rise on unwinding of corporate hedges

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-01-12T171606Z_01_N12418722_RTRIDST_0_MARKETS-BONDS-UPDATE-2.XML

NEW YORK, Jan 12 (Reuters) - U.S. Treasury debt prices on Thursday extended early gains from Asian buying, helped by the unwinding of hedges related to sizable corporate debt sales.

Asian investors took advantage of cheapened prices from the previous session's declines on a weak auction of five-year U.S. Treasury notes.

<snip>

But some traders said the prospect of plentiful Treasury debt supply coming to market, beginning with Thursday's $9 billion sale of 10-year Treasury inflation-protected securities, or TIPS, is likely to keep some downward pressure on prices.

"There was some buying out of Asia, but with all the supply coming up, I've got to believe prices are probably going to be heading lower," said a trader at one of Wall Street's primary Treasuries dealers.

By the end of February, the Treasury Department will have issued more than $125 billion in debt, making the start of 2006 one of the biggest in years in terms of issuance. Corporate debt issuance -- somewhere between $40 billion-$50 billion so far this year -- could add to the weight on bond prices, analysts said.

...more...

[UpInArms]

82. Treasuries Sale Alert

1:04pm 01/12/06 10-YR TREASURY TIPS AUCTION PRODUCES MEDIAN YIELD 2%

1:05pm 01/12/06 TIPS AUCTION PRODUCES 1.85 BID-TO-COVER RATIO

[UpInArms]

94. Treasurys close higher on Iran-liked safe-haven interest

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38729.6271217014-857099349&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Treasury prices closed at their best levels of the day Thursday, pressuring yields, lifted by safe-have interest linked to as apprehension about Iran's nuclear intentions. The 10-year Treausry note closed up 12/32 at 100-23/32 with a yield ($TNX) of 4.411%, contrasting with 4.458% in late trade Wednesday.

[UpInArms]

22. Fannie CEO warns against mortgage deduction change to tax code

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-01-12T132920Z_01_N1110564_RTRIDST_0_FINANCIAL-FANNIE.XML

WASHINGTON, Jan 12 (Reuters) - Fannie Mae's <FNM.N> chief executive on Thursday said the housing market was easing and urged Congress to keep a mortgage interest deduction in the U.S. tax code, calling it unwise to fiddle with affordability.

"We need to maintain the other ways the tax code helps families afford housing and build communities, such as low-income housing tax credits," Chief Executive Daniel Mudd told a National Association of Home Builders event in Florida.

"These supports are the rebar in the foundation of the American Dream. If you chip at the foundation, you risk a lot," he added.

The White House has been expected to unveil a broad proposal to overhaul the tax code based on recommendations from a bipartisan tax panel. It could include a reduction in deductions for home mortgages the panel proposed but that has been met by opposition from housing groups and some lawmakers.

"Today, with home prices through the roof and families worried sick about making the house payment, now is not the time to make it tougher on folks," he said.

...more...

[UpInArms]

90. Freddie Mac sees slowdown in 2006 housing market

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38729.5938420718-857094508&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Freddie Mac (FRE) on Thursday said it expects a slowdown in the housing market in 2006, but said "conditions are favorable for a soft landing, perhaps with a little turbulence on the approach." The mortgage giant forecast housing starts falling as much as 9% to 1.9 million units in 2006, and for home sales to slow in 2006 by 5%, to 7.1 million units. It estimated 2005 home sales at 7.48 million units. Freddie Mac estimated the 2005 home price growth rate to be near 10.9%, and said it expects it to slow to 7% in 2006. In addition, 30-year fixed-rate mortgages are expected to average 6.4% over the year, and 1-year adjustable-rate mortgages are expected to remain about 1 percentage point lower than the rate on 30-year FRMs. Freddie Mac sees ARMs falling from the 31% share of applications in 2005 to around 27% in 2006.

[UpInArms]

23. Tenet to pay $215M to settle securities litigation (derivatives)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38729.3607146528-857057048&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Tenet Healthcare Corp. (THC) Thursday agreed to pay $215 million to settle securities class-action and shareholder derivative litigation against it. The company said its insurance for directors and officers will contribute roughly $75 million of the total cost of the settlement, and that it plans to record a charge of $140 million in the fourth quarter to cover the remainder. The stock closed Wednesday at $7.53, up 9 cents.

[AnneD]

41. Morning Marketeers,

:donut: Good Morning from the 6th meanest city in America. I wish the rest of you could have the joy of living in a town THIS mean. What a diaper load :eyes:

http://www.burntorangereport.com/mt/archives/2004/11/texas_cities_me.html

A city that takes in a quarter of a million homeless can't be all bad. I rest my case.
I see they are still spinning what a great economy it is and Bush is suppose to come down to NOLA. They should have the photo opp and press conference in 9th ward...yeah, like that will happen. The guy need a megaphone, but we aren't the holler back kind around here just now.
Happy Hunting and watch out for the bears...

[EuroObserver]

57. Nothin' like a little southern hospitality... n/t

[AnneD]

63. more along the lines of....

no good deed goes unpunished.
What is the opinion on the street in Europe about Iran starting up their nuclear program. I know many countries have economic ties with Iran. Is economics driving opinion?

[EuroObserver]

106. I'll get back to you as regards that question:

Takes time, and sensitivity, listening to the street(s).

Spain, for a start, is a large, complex, diverse country, with a lot of history, comprising several 'nationalities' and points of view.

Not very far from me here, in Catalonia, I can step over the (quite open, these days) border and speak/listen in French/Languedoc/Provençal.

Soon, I'll be spending some time in Sicily (Italia).

Further north, I'm sorry, for lack of education I have to resort to speaking English.

Actually, my normal domicile is way south, not far off the coast of (essentially bereber) Western Sahara.

I try to keep eyes and ears and heart open for all...

[UpInArms]

26. Delaware court denies Bally motion, fund says - Hedge Fund Takeover

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T135247Z_01_WEN7649_RTRIDST_0_LEISURE-BALLYS-POISONPILL-URGENT.XML

NEW YORK, Jan 12 (Reuters) - A Delaware court has denied a motion by Bally Total Fitness Holding Co. (BFT.N: Quote, Profile, Research) to speed up the discovery process in the health club company's petition to trigger poison pill provisions, Liberation Investments said on Thursday.

Bally is fighting two hedge funds that have built up large positions in the company's stock and launched a proxy battle calling for changes including the removal of the chief executive and a board overhaul. The company has accused the funds -- Liberation Investments and Pardus Capital Management -- of conspiring, which could trigger a shareholder rights plan known as a poison pill, aimed at fending off unwanted takeover advances.

[UpInArms]

28. Sonoco - products packaging company- raising prices

8:58am 01/12/06 Sonoco doesn't see materials costs abating anytime soon - MarketWatch.com

8:59am 01/12/06 Sonoco to eliminate recently enacted energy surcharge - MarketWatch.com

8:58am 01/12/06 Sonoco: prices for raw materials and supplies are rising - MarketWatch.com

8:56am 01/12/06 Sonoco lifts prices on uncoated recycled paperboard - MarketWatch.com

8:57am 01/12/06 Sonoco lifts paperboard price by $30-$40 a ton as of 2/6 - MarketWatch.com

http://www.marketwatch.com/tools/quotes/profile.asp?sid=4525&symb=SON&siteid=mktw

Sonoco Products Company. The Group's principal activities are to manufacture of industrial and consumer packaging products and to provide packaging services. It operates in four segments: Engineered Carriers and Paper, Consumer Packaging, Packaging Services and Other. Engineered carriers and paper segment design and develop high-performance paper and composite engineered carriers, fiber-based construction tubes and forms and paperboard. Consumer packaging segment produces round and shaped rigid packaging, both composite and plastic, printed flexible packaging, metal and plastic ends and closures. Packaging services segment provides products and services like point-of-purchase displays, packaging fulfillment and brand management. Other segment products includes like wooden, metal and composite reels for wire and cable packaging, custom designed protective packaging, machinery manufacturing and specialty packaging. As on 21-Oct-2005, the Group operates in 300 operations in 35 countries.

[UpInArms]

31. pre-opening blather

09:00 am : S&P futures vs fair value: -2.2. Nasdaq futures vs fair value: -2.0. Futures indications holding steady below fair value, still suggesting that a pullback of some sort is necessary as the market may be overbought on a short-term basis. With earnings season going into full swing next week, some uncertainty tied to slowing corporate profit growth could also be adding to the market's early apprehension.

08:32 am : S&P futures vs fair value: -2.3. Nasdaq futures vs fair value: -2.5. Still shaping up to be a slightly lower start for stocks as a muted response to this morning's economic data does little to alter investors' motivation to lock in recent profits. The Nov. trade balance narrowed to a better than expected -$64.2 bln (consensus -$66.0 bln) while initial claims rose 18K to 309K(consensus 320K).

08:00 am : S&P futures vs fair value: -2.8. Nasdaq futures vs fair value: -3.0. Futures versus fair value suggest a lower open for the cash market as investors make another attempt at consolidating the strong start to 2006. Aside from a 1.0% surge in oil prices perhaps underpinning some nervousness to extend recent market gains are some notable analyst downgrades on Dow components Coca-Cola (KO) and J.P. Morgan Chase (JPM). Separately, Nov. trade deficit and jobless claims will hit the wires at 8:30 ET.

[UpInArms]

36. 9:43 EST clearing chips off the table

Dow 11,009.34 -34.10 (-0.31%)
Nasdaq 2,326.41 -4.95 (-0.21%)
S&P 500 1,291.83 -2.35 (-0.18%)
10-Yr Bond 4.446 -0.12 (-0.27%)

NYSE Volume 141,446,000
Nasdaq Volume 158,150,000

09:40 am : As futures trading presaged, the market opened slightly lower as the recent market rally prompts investors to lock in some profits. Strong buying interest had kicked started equities into full gear to begin 2006, with all three major indices averaging a gain of 4.13% so far; however, concerns that stocks may be overbought on a short-term basis appears to be the impetus behind early consolidation efforts. DJ30 -30.34 NASDAQ -4.23 SP500 -2.13 NASDAQ Vol 122 mln NYSE Vol 60 mln

(added blather on edit)

[UpInArms]

37. CEO Defends Sago Mine As 'Safe Operation'

http://www.forbes.com/home/feeds/ap/2006/01/12/ap2444793.html

The mine where a dozen men died should be sufficiently vented of toxic gases in four to seven days, allowing investigators to enter for the first time since the disaster, company officials said.

International Coal Group Inc.'s chief executive defended the Sago Mine as a "safe operation" Wednesday, one day after the federal mine safety officials released documents showing that 17 of the 208 alleged safety violations at the mine in 2005 were for serious problems.

<snip>

The 208 violations - a number higher than normal for a mine of its size - were up from just 68 citations the year before. The mine's injury rate for employees per hours worked of 17.4 in 2005 was nearly three times higher than the national average rate of 6.54.

Dennis O'Dell, the administrator of occupational health and safety for the United Mine Workers of America, said federal officials were cracking down on mistakes made at Sago.

"I think they were trying to go in the right direction," he said. "They were writing some pretty serious violations at that mine. ... That mine was headed for closure."

...more...

[UpInArms]

68. Enforcement of mine safety seen slipping under Bush

http://www.realcities.com/mld/krwashington/news/nation/13568525.htm?source=rss&channel=krwashington_nation

WASHINGTON - Since the Bush administration took office in 2001, it has been more lenient toward mining companies facing serious safety violations, issuing fewer and smaller major fines and collecting less than half of the money that violators owed, a Knight Ridder Newspapers investigation has found.

At one point last year, the Mine Safety and Health Administration fined a coal company a scant $440 for a "significant and substantial" violation that ended in the death of a Kentucky man. The firm, International Coal Group Inc., is the same company that owns the Sago mine in West Virginia, where 12 workers died earlier this week.

The $440 fine remains unpaid.

Relaxed mine safety enforcement is widespread, according to a Knight Ridder analysis of federal records and interviews with former and current federal safety officials, even though deaths and injuries from mining accidents have hovered near record low levels in the past few years.

...more...

[UpInArms]

38. Guardsmen seek pay for post-9/11 duty

http://www.boston.com/news/local/massachusetts/articles/2006/01/12/soldiers_sue_for_reimbursement?mode=PF

Four Massachusetts National Guard soldiers, called to active duty after the Sept. 11, 2001, terrorist attacks, filed a federal lawsuit yesterday, arguing they were forced to pay for their own lodging, meals, and commuting expenses while they were protecting the state from terrorism.

The lawsuit is apparently the first claim of its kind nationally, and the soldiers hope to expand their suit to include hundreds of others who have served in the Massachusetts National Guard since Sept. 11, their lawyers said. If the soldiers in all approximately 300 positions at issue were fully reimbursed for every day since Sept. 11, 2001, they would be owed an estimated $73 million, the lawyers said.

The four plaintiffs said they were never given reasons why their reimbursements -- a maximum of $158 a day for food and lodging, plus travel expenses -- were denied.

Sergeant Wayne R. Gutierrez of New Bedford, one of the soldiers suing for reimbursements, said his family struggled under the financial burden of paying for travel expenses and meals while he was serving at Camp Edwards in Bourne. His Guard duty cost him about $18,000 over three years, he said.

''I had to not pay one bill to pay for another," said Gutierrez, who is married and has two children.

...more...

[UpInArms]

39. Ohio court hears first case since fed ruling on homeowner rights

http://www.newsday.com/news/local/wire/connecticut/ny-bc-ct--supco-development0112jan11,0,7119389.story?coll=ny-region-apconnecticut

COLUMBUS, Ohio -- Ohio Supreme Court heard arguments Wednesday pitting a suburban Cincinnati city against a couple trying to save their home in a long-anticipated hearing that included a rare outburst of applause by spectators.

The city of Norwood is trying to use eminent domain to seize remaining properties for a developer who wants to build a $125 million project of offices, shops and restaurants. The city says the tax revenue will boost the its economic fortunes.

Homeowners Carl and Joy Gamble say the city abused its authority to seize property by declaring the neighborhood deteriorating, a less severe condition than blighted.

<snip>

Lawrence Elleman, an attorney for the Norwood developers, said the city's law was very specific in its definition of a rundown neighborhood, including things like "faulty street arrangements," or dead-end streets.

<snip>

Many older neighborhoods have streets that could be called "faulty in their design," said Moyer, who himself lives in Bexley, an older Columbus suburb. "But people like living on those streets."

...more...

[UpInArms]

54. 9:39 EST numbers and blather

Dow 11,010.71 -32.73 (-0.30%)
Nasdaq 2,325.05 -6.31 (-0.27%)
S&P 500 1,291.75 -2.43 (-0.19%)
10-Yr Bond 4.428 -0.30 (-0.67%)

NYSE Volume 538,148,000
Nasdaq Volume 521,968,000

10:30 am : Little changed since the last update as the indices vacillate in roughly the same ranges. Meanwhile, investors sifted through data before the bell that showed the Nov. trade balance improved slightly, declining 5.7% to a better than expected -$64.2 bln. However, record exports of U.S. goods and services helping narrow the deficit have done little to spur buying interest in Industrials. Reports that the Army may cancel an $8 bln Lockheed Martin (LMT 65.75 -0.50) spy-plane project and an analyst downgrade on Southwest Airlines (LUV 16.51 -0.24) are responsible for some of the sector's weakness.DJ30 -29.28 DJTA -1.0% NASDAQ -4.52 SP500 -1.79 NASDAQ Dec/Adv/Vol 1557/1098/475 mln NYSE Dec/Adv/Vol 1726/1213/313 mln

10:00 am : Equities remain on the defensive as the bulk of industry leadership remains negative. Of the nine economic sectors trading lower, Technology remains the most the influential laggard as the PHLX Semi Index hitting a 52-week high yesterday has spurred some consolidation. Financial has also lost ground, due in part to an analyst downgrade on J.P. Morgan (JPM 40.27 -0.43), while continued deterioration in Alcoa (AA 28.80 -0.40) weighs on the Materials sector. Energy, though, has extended its year-to-date leading 7.6% advance, benefiting largely from a 1.1% surge in oil prices. DJ30 -33.94 NASDAQ -4.20 SOX -0.8% SP500 -2.30 XOI +0.8% NASDAQ Dec/Adv/Vol 1328/1103/262 mln NYSE Dec/Adv/Vol 1618/978/154 mln

[EuroObserver]

55. Nikkei 225 closed up 0.5%

http://newsvote.bbc.co.uk/1/hi/business/market_data/2946860.stm

(Close): Japanese shares rose as investors moved into technology stocks after electronics firm Sharp announced investment plans and sales targets.

Tokyo's Nikkei 225 index closed 81.60 points, or 0.5%, higher at 16,445.19.

Sharp jumped 6.4% to 2,000 yen on plans to boost output of LCD television screens. It also forecast record sales.

That helped lift shares across the industry, with Fujitsu climbing 0.3%. Banks by contrast fell, and Mitsubishi UFJ lost 1.3% to 1.53 million yen.

/more...

[UpInArms]

61. Home Depot disputes vendor report

http://www.marketwatch.com/news/print_story.asp?print=1&guid={A2A92984-966C-4DED-84BA-51EE2D81CCB1}&siteid=mktw

CHICAGO (MarketWatch) -- Home Depot Inc. Wednesday called a published report alleging it has overcharged vendors for damaged goods "simply not true."

In a brief statement, the nation's largest do-it-yourself retailer disputed a New York Post article that reported it had forced employees to inflate return charges from vendors and that the Securities and Exchange Commission is probing Home Depot's policies.

Home Depot (HD) shares dipped 29 cents to $42.66 at the open.

In a practice called "return to vendor," retailers seek compensation from vendors for damaged merchandise. The Post article, citing a court claim from a former employee, said Home Depot would regularly overbill vendors for merchandise damaged during shipping.

That then translates to Home Depot's bottom line as overstated income.

...more...

[ozymandius]

79. SEC Opens Informal Probe Into Home Depot

ATLANTA - The Securities and Exchange Commission has opened an informal inquiry into how The Home Depot Inc., the nation's largest home improvement store chain, records credits it receives from vendors for defective merchandise, a company spokesman said Thursday.

The Atlanta-based company complied with the SEC's request several months ago for information related to Home Depot's return-to-vendor procedures, spokesman Jerry Shields said. The current status of the inquiry is not clear.

more...

[UpInArms]

62. Boeing: $30 Million Settlement in CA Cancer Lawsuit -1959 nuclear meltdown

http://abcnews.go.com/Business/wireStory?id=1497987

EL SEGUNDO, Calif. Jan 12, 2006 — Boeing Co. has agreed to pay $30 million to settle a lawsuit by residents who alleged that pollutants from a company lab caused them to get cancer.

The settlement, agreed to in September but not immediately disclosed, ends an 8-year dispute with neighbors of Boeing's Santa Susana Field Laboratory.

The plaintiffs said dozens of years of nuclear and rocket engine testing at the 2,668-acre hilltop lab near Simi Valley was responsible for a wide range of cancers, autoimmune disorders and tumors afflicting nearby residents.

<snip>

The lawsuit alleged that a partial nuclear meltdown at the lab in 1959 released more radiation than originally estimated. The accident was not widely publicized until 20 years later.

...more...

[UpInArms]

64. Platinum hits fresh high @ $1,022 oz (highest since March 1980)

http://news.ft.com/cms/s/4239b12a-8358-11da-9017-0000779e2340.html

Platinum scaled to a new 25-year peak in the early trade on Thursday, outperforming a softer performance from other precious metals.

Platinum prices hit $1,022 a troy ounce, its highest since March 1980 and then eased to $1,013/$1,017. Barclays Yu said platinum was surprisingly strong despite relatively weaker performance in gold, led by belated interest in the metal.

Gold traded at $546.00/$546.75 a troy ounce, below late New York late quote of $548.60/$549.40, despite an upward revision in prices by analysts on Wednesday. The benchmark December 2006 contract on the Tokyo Commodity Exchange fell two yen per gram to 2,036 yen ($17.84), as investors cashed in on a firmer yen against the dollar.

Silver eased to $8.91/$8.94 a troy ounce from $9.00/$9.03 late in the US market. Analysts said, the market had the potential to rise as fund interest in precious metals continued on firm oil prices and a drop in dollar.

...more...

[UpInArms]

73. Feb Gold @ $547.30 oz

11:55am 01/12/06 FEB GOLD FALLS $2.80 TO $547.30/OZ AFTER $543.20 LOW

[UpInArms]

84. Feb Gold @ $548.40 oz

1:03pm 01/12/06 FEB GOLD DOWN $1.70 AT $548.40/OZ, OFF $543.20 LOW

[OrangeCountyDemocrat]

85. Gold Finishes Down 0.60 At 547.90 nt

[UpInArms]

67. 11:33 EST slipping under 11K

Dow 10,999.18 -44.26 (-0.40%)
Nasdaq 2,326.33 -5.03 (-0.22%)
S&P 500 1,291.54 -2.64 (-0.20%)
10-Yr Bond 4.434 -0.24 (-0.54%)

NYSE Volume 819,018,000
Nasdaq Volume 800,743,000

11:00 am : More of the same for the indices as sellers remain in control of the early action. Education Services, Airlines, Motorcycles and Brewers remain four of the day's worst performing S&P industry groups, all losing ground on account of analyst downgrades, while Autos and Auto Equipment stocks, following an FY06 earnings warning from Borg Warner (BWA 56.17 -2.13), have also bee under pressure. DJ30 -28.12 NASDAQ -3.08 SP500 -1.44 NASDAQ Dec/Adv/Vol 1609/1101/626 mln NYSE Dec/Adv/Vol 1867/1169/440 mln

[ozymandius]

75. lunchtime check-in

12:19
Dow 11,005.58 -37.86 (-0.34%)
Nasdaq 2,327.88 -3.48 (-0.15%)
S&P 500 1,292.11 -2.07 (-0.16%)
10-Yr Bond 44.40 -0.18 (-0.40%)
NYSE Volume 1,027,440,000
Nasdaq Volume 975,597,000

12:00 pm : The market remains under pressure midday as the recent market rally, coupled with rising oil prices, some notable downgrades and earnings uncertainty prompt widespread profit-taking. Nonetheless, while buyers appear to be taking a breather, as average gains of 4.1% for the major indices already this year suggest the market is overbought on a short-term basis, losses remain modest at best.

Despite record exports and falling costs of oil imports helping narrow the Nov. trade deficit to a better than expected $64.2 bln, consolidation throughout transportation, spurred in part by an analyst downgrade on Southwest Airlines (LUV 16.48 -0.27), has left Industrials as the morning's worst-performing sector. Financial has also turned in a losing performance, due in part to an analyst downgrade on J.P. Morgan (JPM 40.04 -0.66), while continued deterioration in DuPont (DD 40.56 -0.58) in the wake of its Q4 profit warning weighs on Materials.

Consumer Discretionary has also lost ground as weakness in autos and auto equipment stocks, following an FY06 earnings warning from Borg Warner (BWA 55.82 -2.48), as well as downgrade-induced losses in homebuilding and education services, offset an upgrade on Bed Bath & Beyond (BBBY 37.21 +0.90). Health Care has been in focus after Guidant (GDT 70.07 -0.37) endorsed Johnson & Johnson's (JNJ 62.15 -0.35) sweetened $23.2 bln offer but continued weakness in biotech has stalled buying interest in the sector.

Energy, however, has extended its year-to-date leading 7.6% advance, as a 1.3% surge in oil has lifted refiners, drillers and explorers. Utilities has also traded higher after TXU Corp (TXU 51.90 +1.85) agreed to defer the filing of a system-wide rate case by nearly two years BTK -1.3% DJ30

[ozymandius]

78. Stocks Move Lower on Two Dow Downgrades

NEW YORK - Analyst downgrades of two Dow Jones industrials pressured Wall Street Thursday and encouraged investors to take profits one session after the major indexes reached new multiyear highs.

Analysts said both The Coca-Cola Co. and JPMorgan Chase & Co. could face difficulties in 2006 as the economy slows and consumers limit their spending — both of which could have a much broader impact on stocks as the year goes on.

The market's move lower was unsurprising after the major indexes reached new 4 1/2-year highs Wednesday for the second time in a week, and the urge to consolidate those gains overcame good economic news. The Commerce Department reported that the nation's trade deficit narrowed by 5.7 percent last month, though it remained the third-largest deficit on record.

"You're seeing some selling now, some consolidation maybe, but I'd be cautious of that. The market's been very resilient," said Brian Williamson, equity trader at The Boston Company Asset Management. "Investors have been very quick to buy if they get a little good news."

more...

[ozymandius]

81. Booga! Booga! I scared you!

12:51 - barely clinging to 11,000
Dow 11,003.02 -40.42 (-0.37%)
Nasdaq 2,329.39 -1.97 (-0.08%)
S&P 500 1,292.34 -1.84 (-0.14%)
10-Yr Bond 44.44 -0.14 (-0.31%)
NYSE Volume 1,147,354,000
Nasdaq Volume 1,077,225,000

12:30 pm : No change to the prevailing trend as the afternoon session gets underway. Crude oil prices ($64.50/bbl +$0.56), which have been higher all day as tensions mount over confronting Iran about their nuclear plans, have traded back toward session lows. However, the pullback has not been enough to renew buying interest in energy-sensitive blue chips nor take much of the momentum out of Energy, as the increasingly influential sector still retains its leadership position.DJ30 -36.89 NASDAQ -2.17 SP500 -1.84 XOI +1.4% NASDAQ Dec/Adv/Vol 1542/1326/1.0 bln NYSE Dec/Adv/Vol 1733/1420/768 mln

[UpInArms]

88. 2:11 EST very red numbers and blather

Dow 10,969.66 -73.78 (-0.67%)
Nasdaq 2,316.22 -15.14 (-0.65%)
S&P 500 1,287.34 -6.84 (-0.53%)
10-Yr Bond 4.442 -0.16 (-0.36%)

NYSE Volume 1,497,378,000
Nasdaq Volume 1,382,003,000

2:00 pm : Indices break out of their tight trading ranges, extending their reach into negative territory as what little leadership Energy may have provided throughout the session is no longer evident. The sector, amid modest consolidation in crude futures from session highs, has recently turned negative, lessening the chance that a late-day rally will come to the rescue as such occurrences have so often done this week. DJ30 -65.46 NASDAQ -8.98 SP500 -5.12 NASDAQ Dec/Adv/Vol 1570/1371/1.31 bln NYSE Dec/Adv/Vol 1731/1490/1.01 bln

1:30 pm : Stocks remain weak across the board, as buyers remain a reluctant bunch. Bonds, though, are near their lowest levels of the day. While Treasuries caught a slight bid after today's $9 bln 10-yr TIPS auction saw a solid 60.3% indirect bidder participation, there could be some hesitation on the part of buyers to hold positions ahead of tomorrow's PPI data. The 10-yr note is now up just 2 ticks to yield 4.44%.DJ30 -43.66 NASDAQ -2.51 SP500 -2.12 NASDAQ Dec/Adv/Vol 1546/1363/1.18 bln NYSE Dec/Adv/Vol 1732/1463/924 mln

[UpInArms]

91. Ex-Biogen exec to pay $3 mln for insider trading

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-12T191726Z_01_WBT004536_RTRIDST_0_HEALTH-BIOGEN-SEC-URGENT.XML

WASHINGTON, Jan 12 (Reuters) - The former general counsel of drug maker Biogen Idec Inc. (BIIB.O: Quote, Profile, Research) agreed to pay $3 million to settle charges that he improperly sold shares last year before the company revealed serious patient illnesses in a clinical trial for a expected blockbuster drug.

According to the complaint released by the U.S. Securities and Exchange on Thursday, Thomas Bucknum sold 89,700 shares before the information became public and sent the stock plunging 42 percent.

Isn't this what Martha Stewart went to prison for doing?

[UpInArms]

92. U.S. stock losses mount on Iran jitters

http://www.marketwatch.com/news/print_story.asp?print=1&guid={03C23EF8-4F50-4D66-8F20-3CF7FDF77D9F}&siteid=mktw

NEW YORK (MarketWatch) - U.S. stock price losses accelerated Thursday afternoon, as crude-oil prices remained elevated and worries about the resumption of Iran's nuclear research program weighed on the market.

The market also was pressured by downgrades for Coca-Cola Co. and J.P. Morgan Chase as well as uncertainty about earnings.

<snip>

Stock losses intensified in the afternoon as investors monitored the latest developments surrounding Iran's decision to resume nuclear research.

European Union member nations said talks with Iran are at a dead end and called for the United Nations to take action, according to media reports.

U.S. Secretary of State Condoleezza Rice also urged the U.N. to confront Iran's "defiance" and demand a halt to the nuclear program.

"The market is very nervous about calls for sanctions against Iran," said Peter Cardillo, chief market strategist at S.W. Bach. "The fear is about how Iran might retaliate if there are sanctions. Basically, a lot of speculative money is going into energy now."

...more...

[Sammy Pepys]

95. This is the move some of my trader buddies have been waiting for...

This move down, I mean.

Hi all....I've lurked DU a long time, particularly the SMW. Finally signed up after reading a lot of the Alito coverage here. :hi:

[UpInArms]

98. Welcome to DU and the SMW, Sammy Pepys!

Glad to have you here posting, sharing and being a part of it all!

:hi:

[AnneD]

99. Welcome,

we are a friendly group. Pull up a chair and rest your feet on a box of annual reports.

[Sammy Pepys]

100. hahahaha...thanks guys

Barnone the thread I've lurked on the most is this one. I don't see that changing :hi:

[UpInArms]

101. Well, Sammy Pepys, this is the best spot

(jmho mind you :D )

How the policies tangle the numbers and lives of everyone has always held a special fascination for me. :blush:

[UpInArms]

102. 3:48 EST crowding the exits

Dow 10,951.63 -91.81 (-0.83%)
Nasdaq 2,313.22 -18.14 (-0.78%)
S&P 500 1,285.11 -9.07 (-0.70%)
10-Yr Bond 4.410 -0.48 (-1.08%)

NYSE Volume 2,076,321,000
Nasdaq Volume 1,867,359,000

3:30 pm : Indices still trade near their worst levels of the day as buying interest remains scarce across the board. Utilities, however, is still clinging to a small gain, acting as the day's only positive sector going into the close. Perhaps some safe-haven buying interest amid ongoing concerns about Iran's nuclear plans, which has helped knocked the yield on the 10-yr note (+11/32) down to 4.40%, has helped the rate-sensitive sector retain buyers. Unfortunately for the bulls, Utilities only accounts for about 3.3% of the S&P's total weighting. DJ30 -82.40 DJUA +0.2% NASDAQ -17.91 SP500 -8.45 NASDAQ Dec/Adv/Vol 1864/1152/1.76 bln NYSE Dec/Adv/Vol 2056/1222/1.39 bln

3:00 pm : Major averages continue to languish near session lows as sellers remain in control with only an hour left in the trading day. Even though commodity's trading is now closed and a 3.2% drubbing in natural gas futures to $8.945/mbtu would typically bode well the market, since cheaper natural gas is surely a positive for consumers, Energy's inability to regain any upside traction continues to underscore the market's overall negative tone. DJ30 -82.84 NASDAQ -16.70 SP500 -7.79 NASDAQ Dec/Adv/Vol 1834/1157/1.60 bln NYSE Dec/Adv/Vol 2046/1214/1.26 bln

[54anickel]

103. Good lord those numbers are ugly today!

Hi all...just had to stop by for a peek. :hi:

Been rather busy around here again. Just haven't been able to participate regularly in this thread as much as I used to. :-(

I miss doing all my old regular postings, but at least some of my old favorites are being picked up by others long before I get logged on these days.

[OrangeCountyDemocrat]

104. Daily Gold & Precious Metals Wrap Up

DJ NY Precious Metals Review: Gold Recovers On Spec Buying
DOW JONES NEWSWIRES

Gold and silver futures recovered from early weakness to finish with only tiny losses in New York Thursday. Speculative buying returned after an early profit-taking pullback that was blamed largely on a stronger U.S. dollar.

Platinum outperformed other precious metals with the help of recent strength in the South African rand, traders suggested.

February gold settled down 80 cents to $549.30 an ounce but well up from a low of $543.20. March silver settled a mere half cent lower at $9.06 an ounce after a low of $8.93.

"The original fall was in response to the trade numbers and the strong U.S. dollar," said Bernard Hunter, director of precious metals at Scotia Mocatta.

As gold was closing, the euro had fallen to $1.2035 from $1.2128 late Wednesday.

The U.S. currency was boosted by news that the country's trade deficit narrowed 5.8% to $64.21 billion in November, compared to a consensus forecast of $66.5 billion and a revised $68.13 billion in October. Forex analysts said the dollar also got some help when the European Central Bank left interest rates unchanged and did not offer much new information in a statement, reinforcing a view that the risks for the euro-zone economy are skewed to the downside.

Against this backdrop, February gold hit its session low of $543.20 and March silver bottomed at $8.93 between 10:05 a.m. and 10:20 a.m. EST. During this time frame, the euro hit its session low of $1.2008.

Several traders at the time commented that the foreign-exchange market moves, coupled with resistance in Feb gold above $550, prompted some profit-taking. Gold did recover, however.

"Underlying the market is still very, very good investment demand," said Hunter. "The overriding trend of the market remains positive."

Thus, he continued, speculative-type buying returned. Overall, however, he characterized the day as quiet, suggesting the range may "overstate" the amount of business that occurred.

A trader commented that a pattern seems to have developed in gold over the last week in which profit-taking pullbacks are met by renewed speculative buying.

"There has been a lot of speculation going back and forth," he said.
"Somebody will be taking profits while somebody else gets in. Net, it really hasn't moved that much over the last week, although you've had some pretty big ranges each day."

Silver largely followed the gold, said Hunter.

"But it looks to be forming a fairly good base under $9," he said. "I suspect if we get a bit of strength in gold next week and push through $550, silver could get some benefit from that."

March palladium also fell slightly, losing 90 cents to $276.60.

Platinum futures outperformed the rest of the precious metals complex, however. This metal was higher for a while even when gold was on the defensive.

Recent strength in the South African rand has been supporting platinum futures due to its potential for further curtail platinum-mining expansion efforts in the country, explained one trader.

"The rand is very strong and is approaching 6 (rand to the dollar) now," he said. "Eighty-plus percent of the world's platinum comes from three or four large producers in South Africa. They are trying to expand their platinum production for obvious reasons - platinum has been in a deficit over the last seven years, albeit a shrinking deficit due to their expansion program."

But whereas these companies sell platinum in dollars, they must repatriate those funds and pay operating expenses in rands. Thus, strength in the rand means less profit potential, the trader explained.

"If they budgeted expansion when the rand was 10 against the dollar, and it's now 6 against the dollar, that's basically blowing their costs out of the water," he said.

Thus, some of the large producers have already been scaling back their expansion plans due to the strong rand, he said.


Settlements (open-outcry trading only):
London PM Gold Fix: $542.50 Versus $544.40 Wednesday
U.S. spot gold at 1:53 p.m. ET: $548.20, down 85 cents from
previous day; Range: $542.30-$549.90
February gold (RGCG06) $549.30, down 80 cents; Range
$543.20-$549.70
March silver (RSIH06) $9.06, down 0.5 cent; Range $8.930-
$9.110
April platinum (RPLJ06) $1,030, up $4.70; Range $1,021-
$1,030.80
March palladium (RPAH06) $276.60, down 90 cents; Range
$273-$277.50

[ozymandius]

105. time to go home

Dow 10,962.36 -81.08 (-0.73%)
Nasdaq 2,316.69 -14.67 (-0.63%)
S&P 500 1,286.06 -8.12 (-0.63%)
10-Yr Bond 44.10 -0.48 (-1.08%)
NYSE Volume 2,302,381,000
Nasdaq Volume 2,061,036,000

4:20 pm : Stocks took a breather Thursday as broad-based consolidation efforts brought the strong start to 2006 to a standstill, closing all ten economic sectors in negative territory. With the Dow, S&P and Nasdaq up an impressive 3.0%, 3.7%, and 5.7%, respectively, over just the first seven days of the year, a lack of industry leadership spurred in part by downbeat analyst commentary, volatile energy prices and earnings uncertainty prompted participants to lock in recent gains.

Materials turned in the day's worst performance, led by continued deterioration in DuPont (DD 40.28 -0.86) following its Q4 profit warning as well as weakness in steel, paper and gold. Consumer Discretionary also lost ground as downgrade-induced losses in homebuilding and education services overshadowed an upgrade on Bed Bath & Beyond (BBBY 37.10 +0.79) and reports that Federated Department Stores (FD 72.98 +1.35) plans to divest its Lord & Taylor division. Providing additional sources of sector weakness were autos and auto equipment stocks, as an earnings warning from Borg Warner (BWA 56.00 -2.30) played into why we've maintained an Underweight rating on the sector since April 2004. General Motors (GM 20.92 -0.94) was the Dow's worst performer, closing lower for a third straight day as initial appreciation for new products at the Detroit auto show continued to wane.

Despite an analyst upgrade that helped Apple Computer (AAPL 84.29 +0.39) hit an intraday historic high, lending support to our Overweight rating on Technology and affinity toward portable electronic devices, widespread consolidation in chip stocks, a day after the PHLX Semi Index hit a 52-week high, weighed heavily on Technology. Another area thought to be overbought over the short term was Energy, as many drillers and explorers hit new historic highs intraday before consolidating into the close as natural gas futures finished down 3.2%. Even though record exports and falling costs of oil imports helped narrow the Nov. trade deficit to a better than expected $64.2 bln, consolidation throughout transportation and diversified machinery, following respective downgrades on Southwest Airlines (LUV 16.36 -0.39) and Eaton Corp (ETN 65.88 -1.67), prevented the Industrials sector from taking notice.

Financial was also an influential leader to the downside, as an analyst downgrade on J.P. Morgan (JPM 39.92 -0.78) overshadowed plummeting bond yields. The 10-yr note closed up 11 ticks to yield 4.40% as the ongoing and potentially escalating conflict with Iran added a source of safe-haven buying support for Treasuries. Health Care also lost ground as continued weakness in biotech and little appreciation for Guidant's (GDT 70.36 -0.08) endorsement of Johnson & Johnson's (JNJ 62.15 -0.35) new $23.2 bln bid closed the sector just below the flat line. BTK -1.5% DJ30 -81.08 DJTA -1.2% DJUA +0.1% DOT -0.8% NASDAQ -14.67 NQ100 -0.6% R2K -0.6% SOX -1.3% SP400 -0.7% SP500 -8.12 XOI -0.7% NASDAQ Dec/Adv/Vol 1877/1159/2.0 bln NYSE Dec/Adv/Vol 2119/1164/1.7 bln