STOCK MARKET WATCH, Friday 20 January

[UpInArms]

Stock Market Watch, Friday 20 January

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 367 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1856 DAYS
WHERE'S OSAMA BIN-LADEN? 1556 DAYS
DAYS SINCE ENRON COLLAPSE = 1517 DAYS
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 November 8, 2004

Dow... 10,880.71 +25.85 (+0.24%)
Nasdaq... 2,301.81 +22.17 (+0.97%)
S&P 500... 1,285.04 +7.11 (+0.56%)
10-Yr Bond... 43.79 +0.39 (+0.90%)
Gold future... 554.20








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






(Good Morning Marketeers! Ozy will be joining us later - he's having connectivity issues this a.m. - UIA)

[EuroObserver]

1. ´Morning all. Look at those futures go!

I had a few posts lined up, so I'll start with that. :hi:

[UpInArms]

11. g'morning EuroObserver!

Glad to have you about and keeping us informed!

:hi:

[EuroObserver]

14. No problem, makes the morning's work more entertaining!

Now over to you to keep me informed :P

[AnneD]

33. Morning Marketeers,

:donut: and lurkers. Thanks for reporting the real news UIA, 54anickle, Euro et all.
I am so tired of the OBL tape. You would think it would drive home to the average American how ineffective this admin has been in doing what was once their stated first goal. And what about Google. Child porn my ass, they want to go on a fishing expedition, probably to nail the anti war anti Bush movement.

I have a question for the thread....How do you think is the best way to handle the upcoming Iran bourse. Are you using forex, gold, RE, etc to hedge your bets.
Happy Hunting and watch out for the bears.

[EuroObserver]

48. Some 30 people were arrested in Spain for buying child-porn

by credit card from a company in Florida, and another in Biellorusia a couple of days ago... I haven't heard anything about anyone going after the Florida company, however??? WTF???

[AnneD]

56. Probably because...

it is a GOP stronghold, Jeb Bush runs it and big bucks GOP contributers make some of their big bucks from porn. There is a reason we call it the Bush Crime Family. They profess family values until they get caught with the child or gay prostitute. I could write a book on the screwed up sexual drives of these characters, but they seem to be doing it themselves. :eyes:

[EuroObserver]

2. U.S. stock futures lower; Citigroup, GE, Motorola disappoint

http://investing.reuters.co.uk/investing/MarketReportArticle.aspx?type=usMktRpt&storyID=URI:urn:newsml:reuters.com:20060120:MTFH05844_2006-01-20_11-52-51_N206032:1
Fri Jan 20, 2006 11:52 AM GMT
NEW YORK, Jan 20 (Reuters) - U.S. equity index futures lost further ground on Friday morning after Citigroup (C.N: Quote, Profile, Research) reported earnings lower than Wall Street had been expecting and General Electric Co. (GE.N: Quote, Profile, Research) posted revenue that was short of analysts' estimates.

U.S. stock index futures had already been lower, pointing to a weaker market open, as oil pushed above $67 a barrel after an al Qaeda threat of new attacks on the United States added to worries over supplies from exporters Iran and Nigeria. U.S. crude oil <CLc1> was up 32 cents at $67.15, the highest level in nearly four months
...
Standard & Poor's 500 index futures <SPH6> were down 3.4 points, well below fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Nasdaq 100 index futures <NDH6> were down 7.5 points, and Dow Jones industrial average futures <DJH6> were down 26 points. /more...

Earlier:

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh04284_2006-01-20_10-47-33_l20593910_newsml
Fri Jan 20, 2006 05:47 AM ET
LONDON, Jan 20 (Reuters) - U.S. stock index futures fell slightly on Friday as investors awaited earnings from banking giant Citigroup (C.N: Quote, Profile, Research) and General Electric (GE.N: Quote, Profile, Research) , while Motorola (MOT.N: Quote, Profile, Research) may fall after its outlook was below estimates.

By 1030 GMT, U.S. stock futures for the Dow (DJH6: Quote, Profile, Research) and S&P 500 (SPH6: Quote, Profile, Research) were down 0.1 percent while Nasdaq futures (NDH6: Quote, Profile, Research) were down 0.26 percent.

Analysts expect conglomerate GE's fourth-quarter results to be of particular interest given the patchy nature of earnings so far this in the season.

"GE is a better indicator of the U.S. economy than all the Intels and Yahoos put together and reflects what the U.S. consumer is doing," said Simon Denham at Capital Spreads.
...
Energy stocks look set to rise as crude futures (CLc1: Quote, Profile, Research) trade above $67 after Osama bin Laden's threat of new attacks on the United States.

Other concerns are in focus after a farm ministry official said Japan has found risk material that could cause mad cow disease in beef imported from the United States, just a month after a ban on imports of the meat was lifted. /more...

[EuroObserver]

3. Japan to halt U.S. beef imports completely

Urgent Headline News Friday January 20, 6:19 PM (KYODO) (Just that, no more, but see below:)

U.S. beef with BSE risk materials could have been imported to Japan
(Kyodo) _ A U.S. meat-processing facility is suspected of having shipped to Japan beef with backbone, which is among the bovine body parts designated as risk materials for mad cow disease, farm minister Shoichi Nakagawa said Friday. /more...

[UpInArms]

73. Cattle futures fall as Japan halts U.S. beef shipments

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38737.4496476042-857973987&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Cattle futures fell Friday after Japan said it will halt U.S. beef imports until the U.S. government clarifies how material considered at risk for mad cow disease got into a recent shipment. Japan lifted a ban on U.S. beef just a month ago. Live cattle futures prices for February delivery were up 0.73 cent at 95.40 cents per pound on the Chicago Mercantile Exchange, having earlier fallen to as low as 94.80. March feeder cattle traded at $1.1115 per pound, down 0.55 cents, off a low of $1.104. On the New York Stock Exchange, meat producer Tyson Foods (TSN) was down 2.1% at $16.14.

[EuroObserver]

4. Iran says begins transferring foreign holdings

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh02592_2006-01-20_09-29-08_oli033869_newsml
TEHRAN, Jan 20 (Reuters) - Iran, which could face U.N. economic sanctions over its atomic programme, has started to transfer assets held in foreign accounts, the central bank governor was quoted as saying on Friday.

"We transfer foreign reserves to wherever we see as expedient. On this issue, we have started transferring. We are doing that," Ebrahim Sheibani told the ISNA students' news agency when asked about the need to move Iran's holdings.

ISNA specifically asked whether the money was being moved to Asian accounts but Sheibani's answer sidestepped whether the assets would head east.
...
Iran has bitter memories of its U.S. assets being frozen shortly after the 1979 Islamic revolution.
...
Economists estimate Iran will have earned more than $40 billion in oil revenues by the end of the year to March 2006. Of this, $16 billion goes straight to budgeted government spending. The rest goes to the Central Bank of Iran which keeps an unknown amount of holdings in foreign accounts. The Naftiran Intertrade Company (NICO), the powerful trade and financing arm of the National Iranian Oil Company, is based in Switzerland. /more...

... Still no mention of "Iranian Euro Oil Bourse" in this type of report...

[UpInArms]

115. US demanded on Thursday the UNSC impose sanctions on Iran

Iran Eurobonds seen insulated from global pressures

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-20T180714Z_01_L20548244_RTRIDST_0_MARKETS-IRAN-EUROBONDS-UPDATE-1.XML

LONDON, Jan 20 (Reuters) - Iran's limited amount of outstanding Eurobonds are unlikely to come under severe selling pressure if the United Nations Security Council imposes sanctions in response to Tehran's ramped up nuclear programme, analysts said on Friday.

The United States on Thursday demanded the Security Council, which can wield sanctions, promptly confront Iran over its nuclear ambitions. Fellow council members Russia and China are urging caution.

That, along with news on Friday that Iran was transferring its assets from European accounts to other foreign banks, has led many to wonder about the fate of Iranian assets held in global markets.

There are approximately 1 billion euros worth of bonds outstanding, but it is estimated that the vast majority of are held by accounts in the Middle East.

"These bonds trade by appointment. There is no real market for them. I have seen probably less than 5 million euros worth trade in the last month," said James Croft, emerging markets debt trader at Commerzbank in London.

...more...

[UpInArms]

5. No WrapUp Today - so here's a bit a Commentary

California, New York Officials Sense Danger in Debt

Stop borrowing so much money.

January has brought with it calls for debt reform from both coasts. Officials in California and New York, two states that borrow too much, are telling anyone who will listen that it's not a good idea to sell more bonds whenever the mood strikes.

``Given the state's current structural budget deficit, we believe the 2006-07 budget should focus more on paying down existing debt before making expansive new commitments,'' California's legislative analyst, Elizabeth Hill, said in her overview of Governor Arnold Schwarzenegger's new budget.

Alan Hevesi, New York's comptroller, was a bit more pointed.

In remarks delivered to the Citizens Budget Commission, a nonpartisan, nonprofit civic organization, Hevesi said, ``Debt is evil. It is politically easy. If you have got a deficit and you cut programs, you get yelled at. If you raise taxes you get yelled at. Borrow the money and with term limits it is not going to be your problem,'' reported the Bond Buyer newspaper.

This is refreshing after a year when states and localities sold a record $407 billion in bonds for everything from new sidewalks and sewers to stadiums and highways. More than a quarter of that new debt was designed to refinance older, more expensive bonds, which may not be such an evil thing.

...more...

[EuroObserver]

40. Here's some commentary/wrapup:

Is it Time to Turn Out the Lights on the Bull Market?

It’s better to trade with your head and not your heart. That is why after reading about the disappointing earnings from Yahoo, IBM, and Intel as well as the news stories about Japanese stock market corruption, I had visions of penning an article this week based on “The Party’s Over” theme. However, as suspected, the big bid saved the market for another day. I didn’t trade my fundamental convictions; only thought about them. Still, there is stock market wisdom in these song lyrics that I would like to share with you (early).

Nelson, Willie
Lyrics for Song: “The Party's Over”

Turn out the lights
The party's over
They say that
All good things must end
Call it tonight
The party's over
And tomorrow starts
The same old thing again

------------------------------------------------------------------------------------------------------

Betty Comden, Adolph Green and Jule Styne
Song - “The Party's Over”

The party's over
It's time to call it a day
No matter how you pretend
You knew it would end this way

It's time to wind up
The masquerade
Just make your mind up
The piper must be paid

Today’s Market
...
Gold and gold stocks had a bullish day as the metal was up about $15, the XAU was up 4.24, and the HUI was up 11.75. In terms of candlestick analysis, the apparent shooting star confirmed with an engulfing down day, was whipped after one day with a decisive up engulfing candle. This may be shedding light on the power of the gold bull market in that corrections appear to be low in magnitude and low in duration. I believe that except for the most agile traders trading partial positions, this is the type market where one must hold one’s position. Here is a previous article that describes the reasoning behind that philosophy.
... Gold Bugs Chart
Energy and energy stocks were up again and with gold, commodities, and oil all in long term uptrends, the strength of the stock market surprises me. Better to be surprised and on the winning side of trades than fighting the tape and on the losing side of trades.
...
OK, I’m back to Willie Nelson.

[UpInArms]

62. LOL!

It's nice to know that there are others that have songs rolling around as they watch the daily machinations of the markets :D

[AnneD]

69. Maybe it is because...

I saw the picture of that enormous squid on the other thread, or maybe because I envision investors running for the doors, or just maybe the national debt.... but I keep thinking of Blue Oyster Cult's Godzilla

With a purposeful grimace and a terrible sound
He pulls the spitting high tension wires down

<snip>

He picks up a bus and he throws it back down
As he wades through the buildings toward the center of town

Oh no, they say he’s got to go
Go go godzilla, yeah
Oh no, there goes tokyo
Go go godzilla, yeah

<snip>

History shows again and again
How nature points up the folly of men
Godzilla!

[UpInArms]

71. I've got "Folsom Prison Blues" goin' this am

I hear the train a comin' it's rollin 'round the bend and I a'int seen the sunshine since I don't know when. I'm stuck in Folsom Prison, and time keeps draggin' on. But that train keeps a movin' on down to-San-An-Tone
When I was just a baby my mame told me, "Son Always be a good boy, don't ever play with guns." But I shot a man in Reno, just to watch him die. When I heat the whistle blowin' I hang my head and cry.
Well, if they freed me from this prison, if that railroad train was mine. I bet I'd move it all a little farther down the line. Far from Folsom Prison, that's where I want to stay. And I'd let that lonesome whistle, blow my blues away.

edited 'cuz ...

[AnneD]

88. Cash is good...

but I listen to that when I am down and out. I am out of the market now so I am more in the observation mode. But Cash is always a good listen. I'd save FPB for some convicted CEO's storyline.

[EuroObserver]

6. Tokyo markets closed flat; Europe, oils open firm

Tokyo stocks stay nearly flat, economic optimism supports market
(Kyodo) _ (EDS: ADDING INFO) Tokyo stocks ended Friday's session nearly flat, with the market's downside supported by economic optimism and an overnight rebound in U.S. shares.

The 225-issue Nikkei Stock Average was almost unchanged at 15,696.69, up 0.41 point, or 0.00 percent. The Tokyo Stock Price Index of all First Section issues on the Tokyo Stock Exchange was up 4.10 points, or 0.25 percent, to 1,624.39.

The Tokyo market got off to a strong start, carrying over the previous day's upward momentum when the market staged a powerful rebound following the recent free-fall triggered by a scandal involving Livedoor Co.

With the market lacking fresh positive trading incentives, the early gains were trimmed in the afternoon, but the market's downside was solid supported by gains in high-tech and oil-related shares. /more...

--> (Actually, N225 not so flat: fell sharply back to opening level after caressing 16,500 level during most of the day: see chart here)

Tokyo exchange plans to boost capacity next week
TOKYO, Jan 20 (Reuters) - The Tokyo Stock Exchange, which curbed trading when heavy selling threatened to swamp its computer systems two days ago, on Friday announced plans to boost its capacity and name a new technology chief early next week.

The TSE, the world's second-biggest share market, plans to boost the maximum number of trades it can handle daily to 5 million from the current 4.5 million. /more...

-------------

European stocks gain as Shire, oil firms rise

LONDON, Jan 20 (Reuters) - European shares rose on Friday after energy stocks gained as crude oil jumped above $67 a barrel while UK drugmaker Shire (SHP.L: Quote, Profile, Research) shot up after settling a legal dispute.

Spread betters had expected European bourses to open down after Asian stocks surrendered early gains in their session after a volatile week but corporate news in Europe boosted sentiment.
...
By 0820 GMT, the FTSEurofirst 300 index was 0.35 percent higher at 1,296.81 after making up more than half of Wednesday's sharp losses in the previous session. The narrower DJ Euro Stoxx 50 was up 0.4 percent at 3,607.83.
...
Norway's Statoil (STL.OL: Quote, Profile, Research) led oil firms higher with a 2 percent rise after crude (CLc1: Quote, Profile, Research) gained on Osama bin Laden's threat of new attacks on the United States. Some analysts think markets have yet to factor in the oil price's renewed rise.

The DJ Stoxx oil index rose 0.6 percent.

"So far financial markets have not reacted much to the rebound in crude oil prices yet but West Texas is now back at $67 a barrel," UBS strategist Mansoor Mohi-uddin.

Sweden's Riksbank is later expected to reflect the changing outlook of Europe's economy by announcing a 25 basis points rise in interest rates, but some see a bigger leap. /more...


Oil stocks drive FTSE higher
Fri Jan 20, 2006 03:52 AM ET
LONDON,, Jan 20 (Reuters) - Britain's benchmark FTSE 100 jumped on Friday, boosted by oil stocks as crude topped $67 a barrel while investors shrugged off a weak performance in Asia.
...
By 0830 GMT, the benchmark FTSE 100 was up 20 points, or 0.4 percent, at 5,713.6, after Japan's Nikkei closed flat, booking its biggest weekly fall in nearly two years as it dropped 4.61 percent.

"If you're deeply and irrevocably in love with oil, mining and utilities you're having a lovely time," said Cantor Index's David Buik. "The FTSE at this level without oil, mining and drugs is ridiculous." /more...

... Can't resist: "Oil and drugs and rock'n'roll..."

See also: FT 11:09 GMT: Crude advances after bin Laden threatens US
Analysts attributed the surge in oil prices to a series of geopolitical concerns. Osama bin Laden warned on Thursday that al Qaeda was preparing for attacks on the United States, which outweighed the crude stocks and builds in distillate products last week. Worries over supply disruptions was also fuelling prices. Around 10 per cent of Nigerian oil production had been shut following attacks by militants, who threatened to target all oil companies.
...
Dealers said, gold was softer after peaking above $561 a troy ounce in Asia, but fund buying, anchored by global security worries could push prices back to recent peaks. Spot gold was $556.20/$557 a troy ounce against $557.70/$558.50 late in New York on Thursday. /more oil, metals indicators...

[EuroObserver]

7. Nigeria unions' oil region threat

http://news.bbc.co.uk/2/hi/africa/4631262.stm
Oil workers' unions in Nigeria have threatened to withdraw members from the main oil-producing region unless the government moves to improve security.
...
The unions said 22 people had been killed since a militant attack on 11 January, when the four foreign oil workers were kidnapped.

"It needs to be mentioned that if the restiveness and consequent harassment and violence on workers in the oil and gas industry persist, we shall not hesitate to withdraw our members in the various oil and gas companies operating in the region," the Nupeng and Pengassan unions said in a joint statement.

Militants in the oil-rich Delta want local Ijaw people to benefit more from the region's oil wealth. /more...

[EuroObserver]

8. South American gas plan inches ahead

http://english.aljazeera.net/NR/exeres/6FDB6327-AE9B-49C5-8BF9-CCC50742A82A.htm
Friday 20 January 2006, 4:31 Makka Time, 1:31 GMT
Hugo Chavez, the Venezuelan president, says Brazil, Argentina and his country will move forward on a proposed natural gas network spanning much of South America. He added that the agreement heralded a new era of regional co-operation with less US influence.

On Thursday, Chavez said: "This is the end of the Washington consensus," referring to a set of US-backed free market policies meant to solve South America's economic woes. "It is the beginning of the South American consensus."
...
The pipeline would stretch from Caracas, Venezuela, to Buenos Aires, Argentina, cutting through Brazil's Amazon rain forest. It would also link to Bolivia, Paraguay, and Uruguay.
...
Chavez also predicted the pipeline would be completed within seven years and dismissed doubts about the technical feasibility of the project, saying: "The Russians built a 4000km pipeline to supply gas to Europe."

The Venezuelan president predicted no difficulty in paying for the project, estimated at $20 billion. Chavez said several big Asian companies were willing to invest in the pipeline, including firms from China, although he did not identify them.

All countries involved will help finance the project, and Venezuela's state-run oil conglomerate will pour in several billion dollars, Chavez said, adding: "There will be more financing than we might need." /more...

[UpInArms]

9. Ford Motor Co. may cut 25,000 jobs: report

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid={D3CF97AD-2759-474E-AE09-6D5CBCEACB97}&dist=bnb

LONDON (MarketWatch) -- Ford Motor Co. (F) may cut 25,000 or more jobs over four years as part of a restructuring to stem North American losses, Bloomberg News reported Friday, citing anonymous sources familiar with the reorganization plan. The company will announce the jobs cuts on Monday, the report said. A company spokesman declined to verify the job cut report to the wire service.

[Roland99]

24. Local news reporting Ford may cut minivans and larger SUVs

But no word on if or how the truck plants in Louisville will be affected.

[UpInArms]

77. Ford dips with earnings, restructuring plans on tap

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38737.4645457755-857975983&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Ford Motor (F) shares fell 2.6% to $8.01 on Friday in the last trading session before the automaker reports its fourth-quarter earnings and details its "Way Forward" restructuring plans. According to a recent report from Bloomberg News, Ford's plans will include 25,000 job cuts. General Motors (GM) , also slated to post its results next week, saw its shares lose 1% to $20.08. DaimlerChrysler (DCX) shed 2.5% to $51.76.

[EuroObserver]

10. China challenges U.S., Europe, Japan in scientific research: UNESCO

http://asia.news.yahoo.com/060120/kyodo/d8f84nt80.html
(Kyodo) _ China has led emerging Asian economies in the research and development field, challenging the leadership of North America, Europe and Japan, according to a report recently released by the U.N. Educational, Scientific and Cultural Organization.

China had 810,000 researchers in 2002, compared with 646,500 in Japan in the same year, according to the UNESCO Science Report 2005. Expenditure on R&D in China rose to 1.23 percent of its gross domestic product in 2002 from 0.83 percent in 1999, the report said.

Due to the rapid growth in China, Asia's share in R&D expenditure in the world climbed to 31.5 percent in 2002 from 27.9 percent in 1997.

North America's share fell to 37 percent from 38.2 percent, and Europe's share also dipped to 27.3 percent from 28.8 percent in the same time frame /more...

[orwell]

181. Thanks...

...for the information. As R&D essentially represents future economic growth and competitiveness, it is interesting that Asia is quickly approaching parity with North America.

It would be instructive to see the breakdown by country instead of just region. It would also be fascinating to see how much of this R&D is going directly to military industries as opposed to everything else.

Thanks again.

[EuroObserver]

12. Dollar was down against Swiss Franc, Euro, Yen

Dlr falls vs Swiss franc as Iran transfers assets
Fri Jan 20, 2006 04:17 AM ET
LONDON, Jan 20 (Reuters) - The dollar fell against the Swiss franc and the euro on Friday after Iran said it was transferring assets from its foreign accounts.

By 0914 GMT, the euro had risen 20 ticks to $1.2083 , while the Swiss franc rose 40 ticks to 1.2825 per dollar .

Iran, which could face U.N. economic sanctions over its atomic programme, has started to transfer assets held in foreign accounts, the central bank governor was quoted as saying. /more...

Dollar falls to lower 115 yen level in late Tokyo deals
(Kyodo) _ The U.S. dollar fell to the lower 115 yen level Friday in Tokyo after trading in the mid-115 yen range most of the day due to a lack of market-moving factors.

At 5 p.m., the dollar was quoted at 115.32-35 yen, against Thursday's 5 p.m. quotes of 115.36-46 yen in New York and 115.33-36 yen in Tokyo.

It moved between 115.25 and 115.68 yen, most often trading at 115.60 yen.

The euro traded at $1.2077-2080 and 139.30-34 yen, compared with $1.2093-2103 and 139.57-67 yen at 5 p.m. Thursday in New York and $1.2085-2088 and 139.40-44 yen at 5 p.m. Thursday in Tokyo.

Currency traders said the dollar remained almost flat in the mid-115 yen level the most of the day in a tug-of-war between Japanese importers buying the U.S. currency and Japanese exporters selling it.

The dollar fell after European trading began and hit the day's low shortly before 5 p.m., they said. /more...

Comedy Aside: Note (late-posting) dualling news agencies here:

Jan 20, 6:54 am U.S. Dollar Rises Versus Euro, Pound, Yen ( AP )
Jan 20, 6:30 am Dollar slips on warning of attacks on US ( AFP )

[UpInArms]

13. Oil prices rise above 67 usd on al-Qaeda threat

LONDON (AFX) -

Oil prices rose above 67 usd a barrel, with the market unnerved by reports that al-Qaeda leader Osama bin Laden has threatened new attacks against the US, dealers said.

Bin Laden's latest threat, made in an audiotape broadcast over Al-Jazeera television, further fuelled tensions triggered by potential supply disruptions in major oil producers Iran and Nigeria, they added.

At 12.09 pm, New York's main contract, light sweet crude for delivery in

February, gained 32 cents to 67.17 usd per barrel. The contract expires at the close.

In London, the price of Brent North Sea crude for March delivery jumped 53 cents to 65.76 usd per barrel, after rising as high as 66.02 usd.

'The bin Laden tape has caused a knee-jerk reaction on the part of the market,' said Victor Shum, a Singapore-based analyst with US energy consultancy Purvin and Gertz.

Speculation by oil traders could push prices to 70 usd per barrel, he added.

...more...

[UpInArms]

60. Feb Crude @ $67.30 bbl - Feb NatGas @ $9.22 mln btus

10:17am 01/20/06 FEB CRUDE CLIMBS 47C TO $67.30/BRL IN EARLY NY TRADING

10:17am 01/20/06 FEB NATURAL GAS ADDS 30.5C, OR 3.4%, TO $9.22/MLN BTUS

[UpInArms]

63. Crude futures at highest since September - @ $67.45 bbl

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38737.437855625-857972223&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- February crude climbed as high as $67.50 a barrel in New York -- its highest level since Sept. 28. It was last at $67.45, up 62 cents. Violence in Nigeria, global tension regarding Iran following the country's resumption of nuclear activities and an al-Qaida threat on the U.S. provided support. March will be the lead-month contract at the session's close. March crude was last at $67.85 a barrel, up 66 cents. February natural gas was up 26.5 cents at $9.17 per million British thermal units.

[UpInArms]

72. Feb Crude @ $68 bbl

10:56am 01/20/06 FEB CRUDE TAPS $68/BRL FOR FIRST TIME SINCE SEPT. 22

[UpInArms]

89. Feb Crude @ $67.85 bbl - Feb NatGas @ $9.37 mln btus

11:50am 01/20/06 FEB CRUDE UP $1.02, OR 1.5%, AT $67.85/BRL AFTER $68 HIGH

11:50am 01/20/06 MARCH CRUDE UP $1.01, OR 1.5%, AT $68.20/BRL IN NY

11:50am 01/20/06 FEB NATURAL GAS CLIMBS 46.5C, OR 5.2%, TO $9.37/MLN BTUS

[ozymandius]

102. Crude-Oil Prices Climb to $68 a Barrel

WASHINGTON - Oil prices climbed to $68 a barrel Friday in jittery trading influenced by the Iranian nuclear dispute, unrest in Nigeria and new threats of attacks on the United States by al-Qaida.

Worries about possible supply disruptions are now far more important to the market psychology than actual supply levels, analysts said.

"The market is just gripped with anxiety about Iran," said oil broker Andrew Lebow of Man Financial in New York. "It's also concerned about Nigeria, where we actually have lost barrels. And we've also lost export barrels from Russia because of cold weather in Siberia that is driving up demand."

That said, Lebow added that the market is "completely decoupled" from the fundamentals of supply and demand.

more...

[UpInArms]

126. Feb Crude hits $68.50 bbl - now at $68.35 bbl

1:31pm 01/20/06 FEB CRUDE TAPS $68.50/BRL, HIGHEST LEVEL SINCE SEPT. 6

1:31pm 01/20/06 FEB CRUDE UP $1.52, OR 2.3%, AT $68.35/BRL

[UpInArms]

175. Feb Crude closes @ $68.35 bbl - Feb NatGas @ 9.28 mln btus

3:06pm 01/20/06 FEB HEATING OIL CLOSES AT $1.8672/GAL, UP 3.9% ON DAY

3:06pm 01/20/06 FEB HEATING OIL ENDS THE WEEK UP 8.9%

3:06pm 01/20/06 FEB NATURAL GAS CLOSES AT $9.28/MLN BTUS, UP 4.2% ON DAY

3:06pm 01/20/06 FEB NATURAL GAS FINISHES THE WEEK UP 5.6%

3:06pm 01/20/06 FEB CRUDE ENDS AT $68.35/BRL, HIGHEST CLOSE SINCE SEPT. 2

3:06pm 01/20/06 FEB CRUDE CLOSES UP 2.3% ON DAY, UP 6.9% ON WEEK

[UpInArms]

15. One Report Today:

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

Jan 20	9:50 AM	Mich Sentiment-Prel.	Jan	-	92.0	92.5	91.5	-

[UpInArms]

50. Prel. January Sentiment - Whee! We're HAPPY! 93.4!

9:49am 01/20/06 U.S. JAN. UMICH SENTIMENT ABOVE CONSENSUS 92.6

9:49am 01/20/06 U.S. JAN. UMICH CONSUMER SENTIMENT 93.4 VS 91.5 IN DEC.

ummm... right... :eyes:

[UpInArms]

16. daily dollar watch

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

Last trade 89.39 Change -0.19 (-0.21%)

Dollar Sinks On Slower Housing and Factory Market

Today’s data gave the market another taste in the state of the housing market, and that taste was not what dollar bulls were hoping for. According to the US Census Bureau, both measures of housing starts and building permits, which include both residential and non-residential properties, for December fell short of already downgraded expectations. Builders broke ground on 1.933 million new homes last month following a revised 2.121 million starts in November. At the same time, building permits fell to a nine month low 2.068 million permits. This data seems to finally offer solid evidence that the booming housing market which has been a major contributor to economic expansion over the past couple years, could be winding down to a close. Furthermore, it offers confirmation to out-going Fed Chairman Greenspan and newly appointed Ben Bernanke that the Fed’s 13 consecutive hikes to the fed funds rate is finally paying off in controlling the market that Greenspan said was beginning to show signs of “froth.” Subsequently, another substantial component to inflation is taken off the table. Another selling point for the dollar came later in the day when the Philly Fed index, measuring factory activity in the area, for January fell sharply. After the greater than expected decline in the Empire state manufacturing index earlier in the week, the steep drop from 10.9 to 3.3 in manufacturing for the Philadelphia area adds to concerns that, like the housing sector, the manufacturing sector could be weakening. The final word for manufacturing however will lie with the nationally-based ISM manufacturing number which is scheduled for release on February 1st. Some of the bearishness garnered from these disappointing figures was offset by initial jobless claims for the week ending January 14th. First time claims for unemployment benefits for the period fell to 271,000 – the lowest level since April of 2000. Continuing claims for the previous week also slowed further than expected to 2.534 million.

...more...

[EuroObserver]

20. Dollar in ranges as Iran confirms asset transfer

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh08286_2006-01-20_13-15-04_l20778244_newsml
LONDON, Jan 20 (Reuters) - The dollar shuttled in ranges against the euro and Swiss franc on Friday, after Iran's central bank governor was quoted as saying Iran was transferring assets from its foreign accounts, raising concerns about risk aversion.

A senior Iranian official later confirmed that Iran was transferring its assets from European accounts to other foreign banks.
...
Barclays Capital foreign exchange strategist Adarsh Sinha said that Iran, as an oil exporter, has sizeable reserves.

"The problem is we have no information as to what the composition of the reserves are. Even though they have said they are transferring money to different accounts we don't have a good handle on what that means -- it could be a strategic thing that any Middle Eastern exporter would do, diversifying from dollars," he said.
...
The euro spiked up around 20 ticks after initial news of the Iranian asset transfer, before settling back to trade at $1.2071 by 1254 GMT, down 0.20 percent on the day. The Swiss franc was steady at 1.2844 per dollar , having gained sharply earlier.

The yen hit the day's highs of 115.16 per dollar after Bank of Japan Governor Toshihiko Fukui's comments, but remained well within its recent 114-116 range, with option-related hedging seen helping to keep it in that band.

The dollar was last at 115.23 yen, down 0.16 percent on the day. The euro weakened to 139.12 yen , down a third of a percent from the U.S. close.
...
Richmond Federal Reserve Bank President Jeffrey Lacker, repeating remarks he made earlier this week, said on Friday the U.S. central bank must prevent inflation expectations from taking root.
...
The market sees a rate increase at the end of the month as a done deal but views are split over the path beyond that.
...
European Central Bank President Jean-Claude Trichet speaks at 1540 GMT, with markets keen for clues on further euro zone rate rises, after the ECB hiked rates to 2.25 percent in December. /more...

[UpInArms]

23. Swiss franc gains after reports Iran may shift out of dollar

http://www.marketwatch.com/news/story.asp?guid=%7BE26B7F2A%2DE7F9%2D4A30%2DB927%2DA4211C50500D%7D&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- The dollar was mixed against other major currencies in the early going Friday as the market awaited the University of Michigan's January consumer sentiment survey.

The dollar last fell about 0.3% to 115.25 yen. The euro dropped 0.01% to $1.2071, somewhat dented by weak French data.

The sole data report Friday is the January sentiment survey, which is due out at 9.45 a.m. The MarketWatch forecast, based on a poll of economists, is for a reading of 92.6, which would represent a strengthening from 91.5 in December

Reports that Iran may shift its assets out of dollars if the international community imposes sanctions on its nuclear activities initially helped the Swiss franc. However, the impact was limited by uncertainty about what currency Iran may adopt.

"The direct consequence was to push the Swiss franc higher against the euro in cross trading," said Mike Malpede, senior currency analyst at Man Global Research.

"Iran may be moving out of European banks, but no one knows where Iran will move its money and no one knows the size of Iran's reserves," Malpede said. "So you can't really make an intelligent trade on the news."

...more...

[54anickel]

139. Hmmm, interesting move by Iran. This on the heels of all that speculation

of China diversifying it's reserves. Makes you wonder if China's in on it just a bit. China says they'll diversify, later recants. Now Iran gives a taste of what just a move out of US dollars would do. Sauds "request" patience from Cheney on Iran, China & Russia make their desire to work with Iran well known and even consider vetoing the UN resolution. Are we witnessing the first strategic "battle" of a war here? :shrug:

[54anickel]

145. Swiss francs, hey? Did we just witness a new destination added to

the "flight to safety" itinerary? :shrug: I know the Swiss franc and gold have been secondary choices to US Treasuries in the past, but it looks like the franc was the first choice for the day. Another event that makes me go "hmmmmm?". Wonder if Soros is taking notice?

[EuroObserver]

159. Hmm. I was thinking we should add CHF to the other graphs above

...Longstanding reputation as a safe haven...

[AnneD]

182. What is CHF

in med circles it means Congestive Heart Failure...

[UpInArms]

202. it's the Swiss Franc chart

:hi:

[EuroObserver]

205. Franc of the Swiss Confederation

Franc de la confederación helvetique.

[AnneD]

227. Thanks so much guys...

but looking at some of the spike make me think the med definition might have some merit;)

[EuroObserver]

165. Dunno what happened to Trichet

...maybe he decided to wait for a better day...

[54anickel]

173. Iran shifting foreign assets to Asia - central bank

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?pv_noticia=1137755843-f05e0f08-17362

TEHRAN (AFX) - The governor of Iran's Central Bank has indicated that Tehran has already started shifting its foreign hard currency deposits to southeastern Asia amid the threat of sanctions, Iranian media reported

Asked at a business conference if reports Iran was moving foreign accounts of hard currency from Europe to southeastern Asia were correct, Ebrahim Sheibani replied:
"We transfer foreign currency reserves related to all sectors including oil foreign exchanges to wherever it is good for us and we have started this transfer." Sheibani made his comments to Iranian reporters on Wednesday but the student agency ISNA and two other semi-official agencies only published stories reporting the comments today

His comments contrasted with remarks by Iranian Economy Minister Davoud Danesh-Jafari yesterday dismissing a report in pan-Arab newspaper Asharq al-Awsat that Iran had ordered government departments to withdraw currency from European banks

snip>

Iranian hard currency reserves in foreign banks, mainly European banks, are valued at more than 36 bln usd

36 billion? Seems like a drop in the bucket. ;-)

[ozymandius]

206. additional info: Iran starts transferring foreign assets

Ebrahim Sheibani told the ISNA students' news agency on Friday: "We transfer foreign reserves to wherever we see as expedient. On this issue, we have started transferring. We are doing that."

ISNA specifically asked whether the money was being moved to Asian accounts but Sheibani's answer sidestepped the issue.

-cut-

Swiss reaction

Meanwhile a leading financial industry representative in Zurich on Friday said Swiss banks would welcome asset transfers by Iran.

"If you're talking in terms of a safe haven proposal, that's where Switzerland is very strong, stronger than Singapore or other places. We are a country that is non-judgmental," said Steve Bernard, director of the Geneva Financial Centre, a lobby in Switzerland's second-largest banking city after Zurich.

more...

http://english.aljazeera.net/NR/exeres/497EDC03-ACD0-45A3-AC68-F51519B74916.htm

[fedsron2us]

235. "We are a country that is non-judgmental"

Which is why we were so happy to trade with the Nazis when they seemed to be winning the Second World War. Still they were not alone in that activity as quite a few major US corporations were also in on that particular game. The idea of Switzerland as a 'safe haven' has always seemed a little strange to me since it is largely dependent on all its European neighbours colluding in the fiction of the country's neutrality.

[UpInArms]

67. peeking at the falling dollar

Last trade 89.17 Change -0.41 (-0.46%)

Settle Time 15:04 Open 89.46

Previous Close 89.58 High 89.65

Low 89.10 2006-01-20 10:13:52, 30 min delay

52wk High 92.63 52wk High Date 2005-11-16

52wk Low 81.28 52wk Low Date 2005-03-11

[UpInArms]

161. dollar still tumbling downward

Last trade 88.98 Change -0.60 (-0.67%)

Settle Time 15:04 Open 89.46

Previous Close 89.58 High 89.65

Low 88.95 2006-01-20 14:24:05, 30 min delay

52wk High 92.63 52wk High Date 2005-11-16

52wk Low 81.28 52wk Low Date 2005-03-11

[UpInArms]

17. Bay Area home sales down in December, prices slide

16% decline in number sold is biggest drop in 4 years

The Bay Area real estate market ended 2005 on a wobbly note, with the number of sales in December tumbling by the biggest margin in four years and home prices falling below November peaks.

Although the magnitude of the slowdown may not be clear until springtime, last month's softer prices and unusually large 16 percent sales decline were the clearest signs yet that the region's super-heated housing market is losing its sizzle -- although most experts stopped short of calling it a bursting bubble.

For the last nine months of 2005, the number of homes sold dropped when compared with record levels in 2004, and local brokerages are reporting a surge in the inventory of properties for sale.

"It's clear that in this cycle, the boom part of the cycle is behind us," said DataQuick researcher John Karevoll.

The median price for a single-family home in the nine-county Bay Area was $633,000 in December, 14.3 percent above December 2004's $554,000, but 3.5 percent below November's record median. For condos, the median price hit $476,000, 15.8 percent higher than $411,000 one year ago, but just under November's $480,000.

...more...

[UpInArms]

18. China Central Bank's Ma Blames U.S. for Deficit, Denies Yuan Manipulation

http://www.bloomberg.com/news/economy/economies.html

Jan. 20 (Bloomberg) -- People's Bank of China Assistant Governor Ma Delun said the market is determining the yuan's exchange rate, rejecting U.S. criticism that the government keeps the currency artificially weak to spur exports.

Ma said currency policy wasn't to blame for the U.S. trade deficit. ``Workers' pay in China is 1/33rd of that of a U.S. worker,'' Ma said in an interview in Shanghai on Jan. 18. ``The U.S. has to accept this global reallocation of industries.''

Ma's comments reiterate China's unwillingness to change a currency policy with which U.S. Treasury Secretary John Snow said on Jan. 6 he's ``not at all satisfied.'' China's yuan today had its biggest advance against the dollar since the country revalued its currency on July 21, ending a decade-old peg. The yuan has risen 0.6 percent against the dollar since July, compared with a 3.4 percent jump in Korea's won and 4.8 percent advance in Thailand's baht.

<snip>

China's currency failed to jump this month when the central bank reduced its role by allowing 13 commercial banks including Citigroup Inc., HSBC Holdings Plc and ABN Amro Holding NV to act as market makers, who pledge to offer prices for the currency.

``We're not manipulating the yuan,'' Ma said. ``The U.S. trade deficit is not caused by the yuan. It's easy to explain this to an economist, but those who don't know about finance don't understand this. They should go back to university.''

...more...

[UpInArms]

19. Another Propagandist admits being paid to spew lies

Writer Says Scrushy Paid Her to Write Favorable Articles

A writer said yesterday that Richard M. Scrushy, the former chief executive of HealthSouth, paid her through a public relations firm to produce several favorable articles for an Alabama newspaper that he reviewed before publication during his fraud trial last year.

The articles appeared in The Birmingham Times, a black-owned weekly in Birmingham, Ala. Mr. Scrushy was acquitted in June in a six-month trial there on all 36 counts against him, despite testimony from former HealthSouth executives who said he presided over a huge accounting fraud. "I sat in that courtroom for six months, and I did everything possible to advocate for his cause," Audrey Lewis, the author of the articles, said in a telephone interview. She said she received $10,000 from Mr. Scrushy through the Lewis Group, a public relations firm, and another $1,000 to help buy a computer. "Scrushy promised me a lot more than what I got," she said.

Charles A. Russell, a spokesman for Mr. Scrushy, said he was not aware of an explicit agreement for the Lewis Group to pay Ms. Lewis. The payments to Ms. Lewis were first reported by The Associated Press yesterday. "There's nothing there I think Richard would have any part of," Mr. Russell said.

Mr. Russell said that Mr. Scrushy reviewed the articles before they were published. "Richard thought she was doing a little, 'F.Y.I., here's what I'm writing,' " Mr. Russell said.

...more...

So paid-for opinions shaped the readers' opinions regarding the guilt/innocence of a criminal.

:argh:

[UpInArms]

25. SEC Charges HealthSouth Corp. CEO Richard Scrushy With $1.4 Billion Fraud

SEC Charges HealthSouth Corp. CEO Richard Scrushy With $1.4 Billion Accounting Fraud

Washington, D.C., March 19, 2003 — The Securities and Exchange Commission today charged HealthSouth Corp., the nation's largest provider of outpatient surgery, diagnostic and rehabilitative healthcare services, and its Chief Executive Officer and Chairman Richard M. Scrushy with a massive accounting fraud. The Commission's complaint, filed in federal district court in Birmingham, Ala., alleges that since 1999, at the insistence of Scrushy, HealthSouth systematically overstated its earnings by at least $1.4 billion in order to meet or exceed Wall Street earnings expectations. The false increases in earnings were matched by false increases in HealthSouth's assets. By the third quarter of 2002, HealthSouth's assets were overstated by at least $800 million, or approximately 10 percent.

Pursuant to a separate Commission order issued this morning, trading in the securities of HealthSouth was suspended for two business days due to the materially misleading information in the marketplace.

The complaint further alleges that, following the Commission's order last year requiring executive officers of major public companies to certify the accuracy and completeness of their companies' financial statements, Scrushy certified HealthSouth's financial statements when he knew or was reckless in not knowing they were materially false and misleading.

"HealthSouth's fraud represents an appalling betrayal of investors," said Stephen M. Cutler, the SEC's Director of Enforcement. "HealthSouth's standard operating procedure was to manipulate the company's earnings to create the false impression that the company was meeting Wall Street's expectations."

...more...

[UpInArms]

27. Jury acquits Scrushy on all counts in HealthSouth fraud

http://www.signonsandiego.com/news/business/20050628-1948-healthsouth-scrushy.html

BIRMINGHAM, Ala. – The flashy persona of the multimillionaire with mansions, yachts and country music bands was long gone as Richard Scrushy sat in the packed, tension-filled courtroom.

The founder of HealthSourth Corp., who helped scrub Birmingham's image with money for parks and roads as his medical rehabilitation chain spread to all 50 states, awaited the decision Tuesday of 12 mostly working class jurors in his corporate fraud trial.

Then as the 36 counts in the verdict were swiftly read – one "not guilty" after another – Scrushy began to cry, raising a handkerchief to his eyes. What he called two years of torture was over – a rare victory for an embattled executive in a string of corporate scandals.

"I'm going to go to a church and pray," Scrushy said as he left court. "I'm going to be with my family. Thank God for this."

<snip>

With all five former CFOs pleading guilty and testifying that Scrushy led a scheme to inflate earnings by $2.7 billion at the rehabilitation and medical services chain, some viewed the government's case as stronger than in other fraud trials.

...more...

[AnneD]

38. Keep praying to God , Dick...

because hell will freeze over before I ever work at HS, recommend HS to a collegue, or invest in HS. Justice will always be served, eventually.
These folks are crooked and will continue to do wrong. It's a fool that gives their money to a known thief.

[EuroObserver]

29. Consiparacy to pervert the course of justice? n/t

[UpInArms]

34. Richard Scrushy's "Amen Corner"

While facing charges of corporate fraud, the HealthSouth CEO cultivated influential black church leaders, many of whom were in court to see him acquitted

excerpt:

One of Scrushy's former supporters, Pastor Herman Henderson of Believers Temple Church, now alleges that he was hired by Scrushy to organize black pastors to attend the trial in federal court in Birmingham and provide public relations services. These services allegedly included writing favorable articles placed in The Birmingham Times, a local newspaper serving the black community.

<snip>

TV SHOW. The controversy comes as Scrushy prepares for his next trial, scheduled to start this spring, on charges that he bribed former Alabama Governor Donald Siegelman in exchange for influence over a state hospital-regulatory body. Scrushy has pled not guilty.

It isn't a secret that as Birmingham-based HealthSouth became enmeshed in controversy, Scrushy, the company's founder, cultivated ties with the city's African-American churches and clergy. After the company was raided by federal investigators in March, 2003, he began attending the predominantly black Guiding Light Church.

Not long after he was indicted in November, 2003, Scrushy and his wife launched an evangelical Christian talk show on a local cable station. During his trial on charges of leading a $2.7 billion accounting fraud last year, Scrushy was often joined at each day's proceedings by a group of pastors, many of them black, who became widely known as Scrushy's Amen Corner.

MEN OF THE CLOTH. In 2003, Internal Revenue Service records show that Scrushy's charitable foundation gave Guiding Light $1 million. The next year, as his trial date approached, the records show that the foundation donated more than $700,000 to religious groups, some of whose leaders joined the courthouse Amen Corner. The foundation's 2005 IRS records are not yet available. Scrushy was acquitted last June by a jury of seven black and five white members.

...more...

[54anickel]

90. One man's idea of propaganda is another's "marketing". I wrote a

paper on that many years ago for a communications class. There was a big push from businesses through the advisory committees (one of which I served on) to the local tech college for an emphasis on Marketing Skills. To make a long story short, Marketing became part of the core curriculum, right in there with the basic written and oral communication classes. So, marketing was being taught to students in nearly all of the AA degree programs - accounting, computer info systems, finance, management, human services, hell I think it even made it into the electronics division.

[UpInArms]

122. Bernaise - the father of propaganda

http://www.abc.net.au/rn/talks/8.30/mediarpt/stories/s903570.htm

excerpt:

Sheldon Rampton: One of the fascinating things to me about the public relations industry, and one of the reasons that I was interested in writing this book in fact, is the public relations industry has always grown side by side with military propaganda. The people who founded a public relations industry, the man who today is known as The Father of Public Relations, is a guy named Edward Bernaise, and he got his start doing propaganda on behalf of the Administration of Woodrow Wilson to support US entry into the First World War. A lot of the techniques that have been developed to encourage us to buy everything from automobiles to slap, have been developed initially by people whose job was to figure out how to influence the thinking of populations during wartime, and I think that’s contributed greatly to the development of a propaganda model of communications that affected us in a lot of ways that aren’t directly related, or are not seen to be directly related to wars.

[54anickel]

132. Thank you UIA. Great article and horrifying when you look at the

consolidation going in in the media sector. Now wonder they are scrambling to discredit internet blogs and "alternative" sources of information.

[AnneD]

174. And what is even scarier....

is that they are doing neural studies on people's beliefs and how advertising effects it. There is a difference between the way a GOP and a DEM brain are wired (seriously I read the article in some ad e mag-it scared the piss out of me). It seems that DEM's are less trusting of gov. etc (funny we are always being portrayed as big government give away proponents) and the GOP want gov security and are more trusting of the government (and this from the party that says they are for small government but want to legislate every part of your private life). I can just see the gov using this info in re-education camps!

[54anickel]

183. They're probably studying the effects of geomagnetic storms and

how to use them. :eyes:

You reminded me of a discussion we had here long ago in the Fed's study of geomagnetic storms and the markets. No kidding, it's for real.

Playing the Field: Geomagnetic Storms and the Stock Market

http://www.frbatlanta.org/invoke.cfm?objectid=AFD46B63-2852-4812-BE83E6D0C777F4BF&method=display

Explaining movements in daily stock prices is one of the most difficult tasks in modern finance. This paper contributes to the existing literature by documenting the impact of geomagnetic storms on daily stock market returns. A large body of psychological research has shown that geomagnetic storms have a profound effect on people’s moods, and, in turn, people’s moods have been found to be related to human behavior, judgments and decisions about risk. An important finding of this literature is that people often attribute their feelings and emotions to the wrong source, leading to incorrect judgments. Specifically, people affected by geomagnetic storms may be more inclined to sell stocks on stormy days because they incorrectly attribute their bad mood to negative economic prospects rather than bad environmental conditions. Misattribution of mood and pessimistic choices can translate into a relatively higher demand for riskless assets, causing the price of risky assets to fall or to rise less quickly than otherwise. The authors find strong empirical support in favor of a geomagnetic-storm effect in stock returns after controlling for market seasonals and other environmental and behavioral factors. Unusually high levels of geomagnetic activity have a negative, statistically and economically significant effect on the following week’s stock returns for all U.S. stock market indices. Finally, this paper provides evidence of substantially higher returns around the world during periods of quiet geomagnetic activity.

[AnneD]

192. I don't know the reason for that...

but this involved MRI studies with contrast. It showed brain activity in consistant areas, depending on core beliefs. Scariest stuff I had read in years.

[54anickel]

232. All about the desire for control. Scary prospects no matter which

party is in control, but downright unthinkable with Bushco and his merry band of Kleptocrats. Shudder to think of the possibilities with a combination of these studies.

[UpInArms]

21. Gold reclaims $560 an ounce on Iran, terror worries

http://www.marketwatch.com/news/story.asp?guid=%7B2C29B50F%2D959F%2D4708%2D8BCE%2D6E2B3A7635F6%7D&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Gold futures climbed back hovered at the $560-an-ounce mark early Friday, as high energy prices, tensions in Iran and a fresh threat of al-Qaida terror attacks combined to increase demand for the metal.

Gold for February delivery was last trading up 70 cents at $559.70 an ounce, having earlier peaked at $562.10.

The metal tacked on nearly $15 an ounce in New York dealings on Thursday after al-Qaida leader Osama bin Laden warned about attacks inside the U.S. in an audiotape aired by Arab TV station Al-Jazeera.

The CIA later confirmed the authenticity of the tape. Bin Laden also offered the U.S. a "truce" if it withdraws from Iraq and Afghanistan, an offer flatly rejected by the White House.

Meanwhile, there were there were reports that Iran has started to transfer its assets held in foreign accounts, perceived as a reaction to prospects for the United Nations imposing economic sanctions.

Economists at Action Economics said there is speculation in the market that Iran may diversify some reserves into gold, another factor supporting the metal.

...more...

[EuroObserver]

31. Spot Gold approaching $564.00 right now...

...rising fast...

ed: USD falling against EUR, CHF, Yen, CAN

[UpInArms]

39. Feb Gold @ $567 oz - 25 year high

9:39am 01/20/06 GOLD FUTURES SET FRESH 25-YEAR HIGH AT $567 AN OUNCE

[EuroObserver]

43. Spot Gold 565.90

SPOT MARKET IS OPEN
closes in 3 hrs. 45 mins.
Jan 20, 2006 09:46 NY Time
Bid/Ask 565.90 - 566.70
Low/High 555.40 - 567.30
Change +7.70 +1.38%
30daychg +73.40 +14.90%
1year chg +144.20 +34.19%

[EuroObserver]

55. 567.30

SPOT MARKET IS OPEN
closes in 3 hrs. 26 mins.
Jan 20, 2006 10:04 NY Time
Bid/Ask 567.30 - 568.10
Low/High 555.40 - 568.10
Change +9.10 +1.63%
30daychg +74.80 +15.19%
1year chg +145.60 +34.53%

is this where some of that Iranian capital is going?

[EuroObserver]

106. Now also tanked to $554.00

SPOT MARKET IS OPEN
closes in 43 mins.
Jan 20, 2006 12:47 NY Time
Bid/Ask 554.00 - 554.80
Low/High 551.80 - 568.70
Change -4.20 -0.75%
30daychg +61.50 +12.49%
1year chg +132.30 +31.37%

[UpInArms]

136. Feb Gold closes @ $554 oz - March Silver @ $8.93 oz

1:48pm 01/20/06 FEB GOLD ENDS THE DAY AT $554/OZ, DOWN $5, OR 0.9%

1:48pm 01/20/06 FEB GOLD DOWN $3/OZ, OR 0.5%, FROM LAST FRIDAY'S CLOSE

1:44pm 01/20/06 MARCH SILVER CLOSES AT $8.93/OZ, DOWN 17.8C, OR 2%

1:44pm 01/20/06 MARCH SILVER ENDS THE WEEK DOWN 2.6%

1:44pm 01/20/06 APRIL PLATINUM CLOSES AT $1,036.20/OZ, DOWN 1.2% ON DAY

1:44pm 01/20/06 APRIL PLATINUM ENDS THE WEEK DOWN 0.7%

1:44pm 01/20/06 MARCH COPPER CLOSES AT $2.09/LB, DOWN 1% ON DAY

1:44pm 01/20/06 MARCH COPPER FINISHES THE WEEK WITH 1.1% LOSS

[54anickel]

156. XAU/HUI: Response to Wallenwein (Willie)

http://www.321gold.com/editorials/willie/willie012006.html

In his thought provoking article at the end of December, Alex Wallenwein examines in a coffee table setting the question of why the hedged XAU index broke out well before the unhedged HUI index. His "Why Are Gold Hedgers Winning?" raised many interesting and probing questions, and answered some.

Let's preface with an explanation of hedge practices.Certain gold mining firms became carried away with greed, selling forward their production in the last decade. In doing so, some such firms became at the same time corrupted, were hurt by their greed, and hid their ill-fated maneuvers from their own share holders. They actually morphed into finance firms, profiting heavily from speculative games, selling short the gold metal far in excess of actual production. Such tactics succeeded, as long as the gold price declined. The corrupted priorities, for some aggressive firms, led at times to gigantic short positions on their balance sheets. The HUI was initially hatched out of a desire to point to a stock index uncorrupted by hedge practices. Such "hedged" firms lost large amounts of money in their balance sheets during the rising gold price environment since 2001.

But, but, but the XAU broke out first, four to six weeks before the HUI finally did. How is this? Was is das? Qu'est-ce que c'est? Non comprendo! HUH!!!

Some of Wallenwein's proposed explanations seem very credible. At first glance, major hedged firms might have more production, or the unhedged firms might be shunned by the institutions after bad blood. These are excellent posed arguments. See his article for detailed musings, theories, often leading to further questions. The concept of leverage and liquidity presented by the XAU component stocks adds a bit more to the picture, and might more fully explain the paradox.

The more established (but very much hedged) gold mining stock index XAU broke out emphatically in mid-November, at least one full month ahead of the unhedged gold mining stock index HUI. This has proved a paradox, since one would expect the XAU to be a laggard in any comparative race to break out. Wallenwein purports that perhaps the hedged giants are more adept in exploration, or had production capitalized and much farther along, or possessed reserves more accessible to immediate exploitation (like mothballed mines). He wonders if hedged giants produced more silver as byproduct, credits to offset costs. He raises the question whether the hedged giants have more friends in the established investment community, as the unhedged might have angered the banker crowd by refusing to assist in short selling.

more...

[UpInArms]

22. US junk bond funds report $129 mln weekly outflow

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-20T130612Z_01_N20138441_RTRIDST_0_FINANCIAL-JUNK-AMG-URGENT.XML

NEW YORK, Jan 20 (Reuters) - U.S. junk bond mutual funds reported $129 million of net outflows in the week ended Jan. 18, up from $6.5 million the prior week, AMG Data reported late on Thursday.

Investors pulled a record $11.6 billion out of junk bond funds last year, discouraged by lackluster performance of the asset class.

Counting interest and price changes, junk bonds produced investment returns of just 2.7 percent last year, down from almost 11 percent in 2004, according to Merrill Lynch. So far this year, the bonds have returned about 0.9 percent.

[UpInArms]

26. Treasurys higher on expected stock market weakness

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38737.3691296759-857962296&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) - Treasury prices were higher in the early going Friday, clamping down on yields, lifted by expected softness in the stock market, ahead of a new consumer sentiment survey. The benchmark 10-year Treasury last was up 5/32 at 101-5/32 with a yield of 4.353%, down from 4.381% in late trade Thursday. The MarketWatch forecast, based on a poll of economists, is for a January University of Michigan consumer sentiment reading of 92.6, which would mark an improvement over the December reading of 91.5. The Treasury market also was taking in new remarks by San Francisco Federal Reserve President Janet Yellen viewed as hinting at an imminent end to rate hikes, tempered by hawkish remarks from Richmond Fed chief Jeffrey Lacker.

[UpInArms]

51. Printing Press Report:Fed adds banking reserves via 3-day system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-20T145402Z_01_N20351961_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Jan 20 (Reuters) - The Federal Reserve said on Friday that it added temporary reserves to the U.S. banking system through three-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]

117. U.S. Treasury seeks guidance (from Wall Street) on long bond sales

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-20T175604Z_01_N20168559_RTRIDST_0_ECONOMY-TREASURY-REFUNDING-UPDATE-1.XML

WASHINGTON, Jan 20 (Reuters) - The U.S. Treasury said on Friday it was asking Wall Street for advice on the amount of 30-year bonds it should offer next month and whether it needs to alter a proposed February and November sales cycle.

The Treasury is bringing back the "long bond" after a lengthy absence and has to reestablish a pattern for the sales.

The last sale of 30-year U.S. Treasury bonds <US30YT=RR> was a $5-billion reopening of 5.375 percent bonds maturing February 2031 that were sold in August 2001.

In October 2001, the Treasury said it would no longer sell a 30-year bond. But last August it reversed course to say it was bringing back semiannual issues of long bonds with the quarterly refunding, with the offering size to be announced on Feb 1 and the initial sale on Feb. 9.

The Treasury seeks guidance from a Treasury Borrowing Advisory Committee, made up of Bond Market Association members who represent the top securities dealers on Wall Street, to assess the demand for the securities it sells at its quarterly refunding auction.

...more...

The 30-year was no longer sold because under the Democratic administration of Bill Clinton, fiscal policies were working for the citizens of this country so that their children would not be born with a birth-tax of $30,000 and more - this crapweasel maladministration should be imprisoned for destroying the futures of so many and the lives of countless others.

[54anickel]

141. Remember that article in FT a couple of months ago about those

meetings between the Treasury and Wall Street? Something about the US being "lender of last resort". There was barely any coverage on it and we were all going,"hmmmm - whazzup"?

I'm still going "hmmmm - whazzupwitdat?"

[UpInArms]

148. Treasurys rise as stocks plunge

http://www.marketwatch.com/news/story.asp?guid=%7B965A645D%2DFC8B%2D425A%2DA7AA%2DC620D1077D05%7D&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Treasurys moved slightly higher late in Friday's session, pushing yields a bit lower, benefiting from capital inflows as money poured out of the stock market and crude futures shot higher.

The benchmark 10-year Treasury note last was up 3/32 at 101-3/32 with a yield ($TNX) of 4.365%, down from 4.381% in late trade Thursday.

The yield curve inverted once more, as the 2-year yield rose above the 10-year yield, standing at 4.369%.

Treasurys shook off midday weakness around 2 p.m. as the stock market caved in, with the Dow Jones Industrial Average giving up its gain for the year and money streaming out of stocks and into bonds.

Stocks dropped as front-month crude futures rose above $69 a barrel on news of volatile political conditions in Iran and Nigeria and a new terror threat from al-Qaida.

...more...

[ret5hd]

28. i think i know what happened to Ozy...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2053837

(did he strip the wires from his house to sell for scrap?)

[AnneD]

42. Construction sites around Houston....

are big theft targets...everything from plywood and metal to earth moving equipment. It it becoming common for sites to be hit several times a week. They caught some theives yesterday and this stuff was going to a black market warehouse.

[UpInArms]

30. Business lobbies for US-India nuclear deal

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=reutersEdge&storyID=uri:2006-01-20T020739Z_01_N19376435_RTRUKOC_0_US-INDIA-NUCLEAR-USA.xml

WASHINGTON (Reuters) - American companies are mounting a multimillion-dollar campaign to sell to Congress a landmark civilian nuclear deal with India which promises a "bounty of opportunity" for U.S. business and strategic interests, an organizer said on Thursday.

The lobbying drive is the most expensive ever mounted by business, said Ron Somers, president of the U.S.-India Business Council of the U.S. Chamber of Commerce. He did not specify the campaign's budget.

He said retired Army Lt. Gen. Daniel Christman, a former superintendent of the U.S. Military Academy at West Point now working for the U.S. Chamber of Commerce, will coordinate a broad effort as the Coalition for Partnership with India that groups businesses, think tanks and academics supporting the deal.

This will complement the U.S.-India Business Council, which has engaged the politically well-connected Patton Boggs law firm to lobby lawmakers, Somers told Reuters in an interview.

The high-powered campaign reflects both the importance of the nuclear agreement and the high hurdles it faces in Congress, Somers said.

Some members of Congress and experts worry the deal clinched in July undermines U.S. efforts to stop the spread of nuclear arms.

...more...

hmmm.... Patton Boggs ...

Patton Boggs tops K St. money league

Law firm Patton Boggs continued its reign atop K Street last year, edging out Cassidy & Associates to hold top billing in The Hill’s annual survey of lobbying firm revenues.

Patton Boggs’s lobbying revenue was $30.6 million in 2004, 1.9 percent above the $30 million it raked in the year before. Cassidy & Associates increased its lobbying billings marginally (1.1 percent), from $27.8 million to $28.1 million, while Akin Gump Strauss Hauer & Feld stayed in third position, with $27.6 million, just ahead of Van Scoyoc & Associates, up one place, in fourth, with $25.2 million.

<snip>

“We had two or three years where revenue was stable,” said Gregg Hartley, a former chief of staff to House Majority Whip Roy Blunt (R-Mo.), who has led Cassidy’s overhaul. “We’re trying to kick that up.” In 21 months, Hartley has made the firm two-thirds Republican, up from 50-50 when he was hired, and has created new practices in communications and financial services.

...more...

Who is Ben Ginsberg? According to Media Matters,

Although Benjamin L. Ginsberg is an "MSNBC contributor," he is not a journalist; he is a lawyer with partisan ties -- a fact Matthews notes whenever he appears on Hardball. In August, Ginsberg resigned from his position as chief outside counsel to the Bush-Cheney '04 campaign after he acknowledged that he had been providing legal advice to the discredited anti-Kerry group Swift Boat Veterans for Truth.

In addition to having served as national counsel to the Bush-Cheney '04 campaign, Ginsberg, a partner in the law firm of Patton Boggs LLP, is the former general counsel to the Republican National Committee. According to his bio on the Patton Boggs website, "e played a central role in the 2000 Florida recount."

[cosmicdot]

209. some opensecrets.org info on Patton Boggs donations

appear to be an equal opportunity contributor ... why can't the Democrats just say no; and, make it a big campaign issue??

http://www.opensecrets.org/indivs/search.asp?NumOfThou=0&txtName=&txtState=%28all+states%29&txtZip=&txtEmploy=Patton+Boggs+&txtCand=&txt2004=Y&Order=N

PAC for 2006, thus far:
46% to Democrats, 54% to Republicans
http://www.opensecrets.org/pacs/lookup2.asp?strId=C00401083
http://www.opensecrets.org/pacs/pacgot.asp?strID=C00401083&Cycle=2006

PAC 2004 67% to Democrats, 33% to Republicans
http://www.opensecrets.org/pacs/lookup2.asp?strid=C00401083&cycle=2004

[54anickel]

239. Excellent point Cosmicdot. Our entire political system is corrupt and

the corporatists have taken over. OUR government is now up for grabs to the highest bidder, and the corruption flows on both sides of the aisle. We can kid ourselves into thinking our side is clean and get into the partisan bickering - hell that's just what they want. We are a divided nation, and the corporatist own the media that we have become reliant upon for our decision making process. Housecleaning ain't gonna happen as long as the citizenry is distracted by partisan bickering and wedge issues to take our country back...just the way corporate Murika wants it. Divide and conquer, and conquer they did.

[UpInArms]

32. pre-opening blather

09:01 am : S&P futures vs fair value: -4.4. Nasdaq futures vs fair value: -7.0. Futures trade continues to indicate a downside start for stocks today. The overall mixed results from the fourth quarter earnings front are behind the tone, and a lack of data on the economic docket leaves the market with little diversion. The session's sole piece of economic news is the University of Michigan's preliminary read on January consumer sentiment, which is due out at 9:50 ET.

08:30 am : S&P futures vs fair value: -4.6. Nasdaq futures vs fair value: -7.5. The cash market remains poised to start the session below the unchanged mark. Futures trade reflects a negative bias that has been catalyzed by reports from Citigroup (C), General Electric (GE), and Motorola (MOT) that were good but not great relative to the market's heightened expectations. Additionally, crude continues its climb higher -- now up 0.9% to $67.40 per barrel.

07:56 am : S&P futures vs fair value: -4.7. Nasdaq futures vs fair value: -8.5. Versus fair value, futures trade suggests a lower open for Friday's cash market. As the fourth quarter earnings season remains in focus, a disappointing report from Citigroup (C) weighs upon early sentiment. The bank registered $0.98 in EPS, two cents shy of the consensus estimate and reflective of a 2% decline in profit. Lending support, though, is the fact that C upped its divided by 11%. One of the important underpinnings to the 2006 market will be further dividend increases from large companies benefiting from strong cash flow. Yesterday, fellow blue chips PFE and HD raised their dividends.

[Maeve]

35. And we're off at 9:33

Dow 10,851.90 -28.81 (-0.26%)
Nasdaq 2,300.21 -1.60 (-0.07%)
S&P 500 1,282.67 -2.37 (-0.18%)
10-Yr Bond 43.47 -0.32 (-0.73%)

[UpInArms]

37. g'morning Maeve!

:hi:

Glad to see you here today!

[UpInArms]

36. 9:34 EST chips being cleared from the table

Dow 10,854.30 -26.41 (-0.24%)
Nasdaq 2,300.39 -1.42 (-0.06%)
S&P 500 1,282.89 -2.15 (-0.17%)
10-Yr Bond 4.349 -0.30 (-0.69%)

NYSE Volume 122,272,000
Nasdaq Volume 99,476,000

[ozymandius]

41. A grand THANK YOU to UpInArms for getting the thread going.

:toast: :donut: :yourock:

Dang software bugging me today. Once again O owe a debt of gratitude for UIA's graciousness.

Ozy

[AnneD]

44. Always good to have you back....

:hi:

[ozymandius]

47. Thanks Anne.

Once and for all - I need to fix my software issues on my seven-year-old Dell.

[UpInArms]

49. Good Morning Ozy!

So glad that I could help :blush:

You are the best!

And I am really glad that you're back on and with us - this could definitely get interesting today - lots going on :eyes:

:hug:

[EuroObserver]

53. Hi!

I'm thinking of replacing a three-year-old Dell notebook sometime soon - and at least adding a Linux partition. Though I must say I'm giving Apples another hard look now... :dilemma:

[ozymandius]

45. The PPT giveth and the markets taketh away.

9:49
Dow 10,824.74 -55.97 (-0.51%)
Nasdaq 2,296.65 -5.16 (-0.22%)
S&P 500 1,282.18 -2.86 (-0.22%)
10-Yr Bond 43.55 -0.24 (-0.55%)
NYSE Volume 262,981,000
Nasdaq Volume 213,060,000

09:40 am : As futures trade had suggested, the equity market started the session well into the red. The fourth quarter earnings season remains the focal point of investors' attention, and mixed to slightly negative news on that front has spurred the bearish bias. While reports from General Electric (GE) and Motorola (MOT) were generally good, they were relatively disappointing in terms of what the market had expected. Citigroup's (C) results were less upbeat; the bank posted a 4% decline in profit that missed the consensus estimate by two cents. On the plus side, Citigroup upped its divided by 11% and JCI and SLB announced solid upside results. Although Q4 earnings gains remain on track, today's mixed bag and some uninspiring guidance has prompted early selling efforts. Crude's rise serves as an additional pressure; presently, it's up 0.6% to $67.25 per barrel. DJ30 -32.42 NASDAQ -2.03 SP500 -2.20

[UpInArms]

46. 9:49 EST crowding the exits

Dow 10,824.92 -55.79 (-0.51%)
Nasdaq 2,296.62 -5.19 (-0.23%)
S&P 500 1,281.79 -3.25 (-0.25%)
10-Yr Bond 4.355 -0.24 (-0.55%)

NYSE Volume 266,185,000
Nasdaq Volume 215,313,000

09:40 am : As futures trade had suggested, the equity market started the session well into the red. The fourth quarter earnings season remains the focal point of investors' attention, and mixed to slightly negative news on that front has spurred the bearish bias. While reports from General Electric (GE) and Motorola (MOT) were generally good, they were relatively disappointing in terms of what the market had expected. Citigroup's (C) results were less upbeat; the bank posted a 4% decline in profit that missed the consensus estimate by two cents. On the plus side, Citigroup upped its divided by 11% and JCI and SLB announced solid upside results. Although Q4 earnings gains remain on track, today's mixed bag and some uninspiring guidance has prompted early selling efforts. Crude's rise serves as an additional pressure; presently, it's up 0.6% to $67.25 per barrel. DJ30 -32.42 NASDAQ -2.03 SP500 -2.20

[UpInArms]

52. Russell (Athletic Apparel) to cut 2,300 jobs; shares rally

http://www.marketwatch.com/news/story.asp?guid=%7B2BA2A54E%2D8E62%2D4391%2D8CB2%2D4211D2806A3A%7D&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Shares in Russell Corp. traded sharply higher Friday after the athletic apparel and equipment maker said it would cut 2,300 jobs -- including 1,700 in the U.S. -- and freeze its pension plan as part of a sweeping restructuring.

Russell (RML), based in Atlanta, saw its stock add as much as 11.6% to $15 soon after the open.

Late Thursday the company disclosed a restructuring that is forecast to cost $45 million to $52 million after taxes, producing estimated annual cost savings of $35 million to $40 million.

Half the charges are expected to be recorded in 2006. The savings should be fully realized in 2008 and beyond, the company said.

<snip>

Additionally, Russell said it is freezing its defined benefit plan, effective April 1, and will improve its 401(k) employee savings plan.

As for the job cuts, the company said that 1,200 of the jobs cut will eventually be replaced in Honduras and Mexico. The U.S. job cuts will include about 90 employees in corporate and division offices, as well and the closure of the company's knit textile operations in Alexander City, Ala.

...more at link...

[UpInArms]

54. 10:03 EST falling like a rock

Dow 10,799.07 -81.64 (-0.75%)
Nasdaq 2,291.94 -9.87 (-0.43%)
S&P 500 1,280.46 -4.58 (-0.36%)
10-Yr Bond 4.355 -0.24 (-0.55%)

NYSE Volume 382,874,000
Nasdaq Volume 318,862,000

(adding blather on edit)

09:55 am : Selling pressure continues to leave each of the indices on negative turf. Seven sectors similarly stand lower, with Industrials (-0.7%) presently faring worst. Selling across the sector is wide-spread, with a majority of the S&P's industrial issues sporting losses. The primary culprit there is GE (34.09 -0.59), heading south following its Q4 earnings results. Its decline may be limited by the fact that its reported decrease in profits was due to losses in its discontinued insurance unit - about which the market already knew. Excluding the effect of that unit, GE's profit rose 7.8%. Moreover, its $0.55 in EPS matched analysts' estimate. The conglomerate also issued reassuring guidance for the current quarter and FY06. Separately, the U of M's read on January consumer sentiment checked in at a better than expected 93.4 (consensus 92.5) and reflects a continued strengthening trend. DJ30 -53.87 NASDAQ -4.49 SP500 -2.38 NASDAQ Dec/Adv/Vol 1106/1284/223.0 mln NYSE Dec/Adv/Vol 746/1066/201.5 mln

[UpInArms]

57. Citigroup profit misses Street, credit cards weak

:nopity:

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-01-20T150448Z_01_N20196209_RTRIDST_0_FINANCIAL-CITIGROUP-EARNS-UPDATE-4.XML

NEW YORK, Jan 20 (Reuters) - Citigroup Inc. <C.N>, the largest U.S. bank, on Friday reported quarterly profit that missed analysts' forecasts, as weaker credit card results offset investment banking growth.

Earnings from continuing operations fell 3 percent to $4.97 billion, or 98 cents per share. Net revenue rose 3 percent to $20.78 billion, and operating expenses increased 1 percent to $11.37 billion.

Analysts polled by Reuters Estimates on average forecast profit of $1 per share on revenue of $21.72 billion.

Shares of Citigroup, part of the Dow Jones Industrial Average <.DJI>, fell $1.14, or 2.4 percent, to $46.80 in early trading on the New York Stock Exchange.

"The shortfall appears to be largely in global consumer (banking)," stemming from a stronger U.S. dollar and narrower net interest margin, Merrill Lynch & Co. analyst Guy Moszkowski wrote.

...more...

[AnneD]

78. Let me tune up and join you...

:nopity: It couldn't happen to a better group of people. I hope the Bankruptcy bill comes back and bites them in the arse.

[ozymandius]

86. I was just thinking that.

I wonder if the executive who dreamed up that bankruptcy bill begins each day with a dope-slap.

[AnneD]

101. From your mouth

to God's ear, Ozy.

[EuroObserver]

58. Europe (Some) Midsession

(All times GMT)

FTSE Eurofirst 300 up 0.3% at 1,296.10 in London 13:29
CAC 40 up 0.2% at 4,823.28 in lunchtime trade in Paris 12:37
Xetra Dax 30 down 0.3% at 5,413.47 in Frankfurt 12:15
FTSE 100 up 0.4% at 5,715.6 in mid-session trade in London 12:03
Swiss SMI down 0.47% at 7,734.40, SPI down 0.42% at 5,865.21 in Zurich 15:25

[UpInArms]

59. Swiss Re Plans GE Job Cuts

http://www.insurancejournal.com/news/international/2006/01/20/64385.htm

While Swiss Re and General Electric are working to close the sale of GE Insurance Solutions, it seems that less GE employees will be working at all when the deal is completed.

Swiss Re indicated on Wednesday, Jan. 18, that between 1,100 and 1,700 jobs could go when the two companies come together to form the world's largest reinsurer. Widely circulated reports (Dow Jones, Bloomberg, Reuters) all noted that various spokespeople at Swiss Re have confirmed that the company was planning to reduce the workforce by between 10 and 15 percent in an ongoing effort to cut costs by $300 million.

Most of the work force reductions will be in countries where both companies have offices – mainly in the U.S., the U.K. and Germany. Beat Werder, a Swiss Re spokesman, noted, however that GE's Overland Park, Kansas headquarters would be maintained.

[UpInArms]

61. Budget Cuts And Priorities Cause Boeing Wichita Layoffs

http://www10.mcadcafe.com/nbc/articles/view_article.php?section=CorpNews&articleid=236505

Jan. 19 /PRNewswire/ -- WICHITA, Kan., Jan. 19 /PRNewswire-FirstCall/ -- Boeing (NYSE: BA) officials announced today that 60-day layoff notices will be issued to 84 employees at its Wichita site on Jan. 20, 2006, as a result of Department of Defense program delays and budget issues.

Layoff notices will go to hourly and salaried employees within the company's Integrated Defense Systems (IDS) business unit.

Derek McLuckey, General Manager of the site, said that the layoffs announced today are a result of changing business conditions that have reduced staffing needs for the site. McLuckey said that DOD budgetary pressures have caused major shifts and reductions in some site programs

"We are making adjustments in the first quarter of this year because of changes in our military support business. These changes have forced us to make this necessary decision to ensure our competitiveness," McLuckey said.

<snip>

"This is a situation that could have impact on our employment levels as the year progresses," McLuckey said.

...more...

[ozymandius]

64. blood and eyeballs on the floor

10:36
Dow 10,793.62 -87.09 (-0.80%)
Nasdaq 2,284.84 -16.97 (-0.74%)
S&P 500 1,277.94 -7.10 (-0.55%)
10-Yr Bond 43.73 -0.06 (-0.14%)
NYSE Volume 641,595,000
Nasdaq Volume 534,902,000

09:55 am : Selling pressure continues to leave each of the indices on negative turf. Seven sectors similarly stand lower, with Industrials (-0.7%) presently faring worst. Selling across the sector is wide-spread, with a majority of the S&P's industrial issues sporting losses. The primary culprit there is GE (34.09 -0.59), heading south following its Q4 earnings results. Its decline may be limited by the fact that its reported decrease in profits was due to losses in its discontinued insurance unit - about which the market already knew. Excluding the effect of that unit, GE's profit rose 7.8%. Moreover, its $0.55 in EPS matched analysts' estimate. The conglomerate also issued reassuring guidance for the current quarter and FY06. Separately, the U of M's read on January consumer sentiment checked in at a better than expected 93.4 (consensus 92.5) and reflects a continued strengthening trend. DJ30 -53.87 NASDAQ -4.49 SP500 -2.38 NASDAQ Dec/Adv/Vol 1106/1284/223.0 mln NYSE Dec/Adv/Vol 746/1066/201.5 mln

[UpInArms]

65. more blather

10:30 am : Fading further, the market is pressured by increased selling action across its eight lagging sectors. Industrials' 1.0% decline ranks worst, but it's the 0.7% slide in the Financial sector that weighs heaviest. Citigroup (C 46.45 -1.49) is behind that drop, exerting a 3% loss following its disappointing Q4 earnings report. With a 4% decline in profit, the bank fell two cents short of the street's earnings expectations. On the optimistic side, C joined several other blue chips in increasing its dividend (by 11%). Aside from being the Financial sector's largest stock, the Dow component is the S&P's third most influential issue. With GE, the market's largest and thus heaviest company, also suffering earnings-induced selling, the broader market faces significant challenges today. DJ30 -86.45 NASDAQ -13.51 SP500 -5.49 NASDAQ Dec/Adv/Vol 1497/1155/475.7 mln NYSE Dec/Adv/Vol 1517/1394/374.4 mln

Love that spin! Come on it - get a few pennies dividends and lose bucks on the stocks!

[Maeve]

66. Not a pretty picture

I didn't trust the 11,000 mark hot air and thought there might be a letdown in store (altho y'all know I'm a perennial pessimist!)

Seven year old Dell?? That's ancient in computer terms! (Said the wife of an alpha geek... :hi: glad you made it in!)

[UpInArms]

68. 10:48 EST will there be triple digits losses by 11?

Dow 10,784.11 -96.60 (-0.89%)
Nasdaq 2,281.47 -20.34 (-0.88%)
S&P 500 1,276.55 -8.49 (-0.66%)
10-Yr Bond 4.373 -0.06 (-0.14%)

NYSE Volume 727,243,000
Nasdaq Volume 606,028,000

[UpInArms]

70. 10:51 EST Thar She Blows!

Dow 10,772.57 -108.14 (-0.99%)
Nasdaq 2,278.69 -23.12 (-1.00%)
S&P 500 1,275.18 -9.86 (-0.77%)
10-Yr Bond 4.373 -0.06 (-0.14%)

NYSE Volume 749,517,000
Nasdaq Volume 629,813,000

[UpInArms]

74. 11:00 EST red numbers and blather

Dow 10,774.91 -105.80 (-0.97%)
Nasdaq 2,280.40 -21.41 (-0.93%)
S&P 500 1,275.30 -9.74 (-0.76%)
10-Yr Bond 4.377 -0.02 (-0.05%)

NYSE Volume 810,042,000
Nasdaq Volume 689,791,000

10:55 am : The indices remain challenged by broad-based selling and carve out new lows. The Technology sector has emerged as an influential laggard, now contributing a 1.2% decline that matches Industrials'. Weakness in the communication equipment industry, off more than 2.5%, can be credited for a large part of the sector's decline. Last night, Motorola (MOT 22.89 -1.46) announced a record 18% rise in fiscal year revenues, but its Q4 sales were a slight disappointment as was its in-line Q1 guidance. As a side note, MOT is a suggested stock in our portfolio for active investors; despite the market's disappointment, our positive opinion still stands on the issue as well as on the industry. MOT's decline has spurred sharp selling across its peer group, with Cisco (CSCO 18.58 -0.44) and Corning (GLW 24.29 -0.57) exacerbating the decline.DJ30 -113.65 NASDAQ -24.48 SP500 -10.63 NASDAQ Dec/Adv/Vol 1625/1093/628.4 mln NYSE Dec/Adv/Vol 1689/1277/546.0 mln

[ozymandius]

75. 11:10 and no better

Dow 10,768.01 -112.70 (-1.04%)
Nasdaq 2,278.12 -23.69 (-1.03%)
S&P 500 1,274.23 -10.81 (-0.84%)
10-Yr Bond 43.75 -0.04 (-0.09%)
NYSE Volume 880,723,000
Nasdaq Volume 742,708,000

[UpInArms]

76. PIEHOLE PUKEFEST scheduled for today:

White House Pushes Economic Accomplishments

WASHINGTON — The Bush administration, trying to publicize its economic accomplishments, made more than 20 administration officials available Friday to radio talk show hosts to discuss the president's record in creating jobs and boosting economic growth.

Treasury Secretary John Snow and other members of the president's Cabinet joined a number of White House officials including presidential adviser Karl Rove and Allan Hubbard, director of the National Economic Council, to chat with talk radio hosts broadcasting in Treasury's ornate Cash Room.

"This is an opportunity through talk radio, which reaches across America, to have a dialogue about where we are going," Snow said in an interview with a Vermont talk show host.

Snow and the other administration officials noted that the economy has created 4.6 million jobs since May 2003, including 2 million jobs last year that were added in the face of Hurricane Katrina and record high energy prices.

...more...

hmmm....

[AnneD]

82. This is too funny...

:spray: I mean, you can't make this stuff up. Bush braging about the economy as it is tanking. For once I agree with him...I hope he gets all the credit he deserves for this economy. :rofl: pmp

[trogdor]

91. Lots of job opportunities out there...

...at your friendly neighborhood Army Recruiting office. They'll take you up to 40 years old now. No functioning brain cells required.

[54anickel]

95. Bwa-hahahaha, "a dialogue about where we are going". So now

Snowjob is also a master plumber?

[ozymandius]

97. plumbing new depths

in economic depravity. He is truly deranged. Bwahahahahaha.

[54anickel]

109. Hope he enjoys getting in touch with his roots

[ozymandius]

111. HAHAHA! If I could kick and recommend a response - I would this one.

:rofl:

[UpInArms]

100. Snow, White House tout U.S. economic good times (LOL!)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-20T171255Z_01_N20337871_RTRIDST_0_ECONOMY-SNOW.XML

WASHINGTON, Jan 20 (Reuters) - Top Bush administration officials on Friday sought to hammer home the message that the country is enjoying good times during a day-long round of radio interviews touting the economy's steady growth.

"By virtue of every index of economic performance, we're going the right way," Treasury Secretary John Snow told a Vermont talk radio show in one of a series of interviews he and about 20 other officials held in Treasury's ornate Cash Room.

After citing increases in job creation, stronger business investment and growth in gross domestic production, or national output, Snow added: "All of this is coming against a background of inflation being well in check. ... We don't see inflation becoming a problem."

The U.S. Treasury chief, joined by political and economic officials from other departments and the White House, including the director of the National Economic Council, Al Hubbard, hop-scotched among broadcasters from across the country invited to Treasury for the 12-hour event.

Reporters invited to watch some of the interviews heard familiar commentary about positive U.S. economic indicators -- though it came against a backdrop of growing worry over rising global oil prices and political tensions that drove U.S. stock prices down.

...more...

[ozymandius]

103. This is Reuters?

I thought it was NewsMax. Why no differing viewpoint, I wonder?

[UpInArms]

105. seems to be a by-product of all that out-sourcing of reporters -

now it only comes in one flavor -

Steno-Sue reigns supreme.

yuck

:puke:

[JNelson6563]

79. The blood is splattering

Sure is messy on the Street today! Oy!

11:17 and here's a snapshot:

Dow 10,770.73 -109.98 (-1.01%)
Nasdaq 2,279.83 -21.98 (-0.95%)
S&P 500 1,274.62 -10.42 (-0.81%)
10-Yr Bond 4.367% -0.01

We've got the 2 yr yield a pt higher than the 10 yr. Hoo boy!

Julie

[UpInArms]

81. 11:21 EST DOW down 121 points

Dow 10,759.36 -121.35 (-1.12%)
Nasdaq 2,276.99 -24.82 (-1.08%)
S&P 500 1,272.97 -12.07 (-0.94%)
10-Yr Bond 4.367 -0.12 (-0.27%)

NYSE Volume 954,212,000
Nasdaq Volume 799,684,000

[ozymandius]

85. freefall - bonds not even taking up the slack

11:54
Dow 10,734.15 -146.56 (-1.35%)
Nasdaq 2,271.14 -30.67 (-1.33%)
S&P 500 1,268.41 -16.63 (-1.29%)
10-Yr Bond 43.69 -0.10 (-0.23%)
NYSE Volume 1,178,120,000
Nasdaq Volume 977,675,000

[UpInArms]

80. Are we having a Commodities Melt-Down? Sugar hits 25 yr high

11:17am 01/20/06 MARCH SUGAR TAPS 17.21C/LB., HIGHEST SINCE JULY 1981

11:17am 01/20/06 MARCH SUGAR LAST UP 5.3% AT 16.97C/LB. IN NY

[UpInArms]

83. Sugar futures climb to highest level since July 1981

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38737.4732212963-857977188&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- March sugar climbed as high as 17.21 cents a pound on the New York Board of Trade, a futures level not seen in over 24 years. It was last at 16.99 cents, up 0.87 cent, or 5.4%. "Demand is up mainly as it has a dual role as a food and bio-fuel product," said John Person, president of National Futures Advisory Service. "Demand is on the rise, especially now, as energy prices have moved up again inventory was depleted as Hurricane Wilma devastated the South Florida Crops and sugar cane field in Louisiana."

[AnneD]

84. Remember UIA

NOLA is the major shipping for sugar in the US and in Louisiana it is a major crop. This was not unexpected (I mentioned it in numerous threads-the market finally caught up). Look for the prices of foodstuffs using sugar to skyrocket too.

[UpInArms]

87. 12:03 EST tanking badly

Dow 10,746.32 -134.39 (-1.24%)
Nasdaq 2,270.09 -31.72 (-1.38%)
S&P 500 1,270.89 -14.15 (-1.10%)
10-Yr Bond 4.373 -0.06 (-0.14%)

NYSE Volume 1,242,476,000
Nasdaq Volume 1,029,294,000

(updating blather on edit)

12:00 pm : Plagued by a trio of disappointing fourth quarter earnings reports, Friday's downtrodden equity market has remained on a southbound course since the opening bell.

Wide-spread selling leaves nine of the ten economic sectors submerged. Lackluster Q4 results from General Electric (GE 33.50 -1.18) weighs heavily upon the overall market, and have sparked a 3.3% drop in the stock that has, in turn, driven the Industrial sector 1.7% lower. Fellow Dow component Citigroup (C 46.10 -1.84) announced a 4% decline in profit and checked in two cents shy of Wall Street's expectations. Its dim report has catalyzed a hefty 1.1% decline in the influential Financial sector, and helps maintain the market's focus on the effects of the flattening yield curve. On the other side of the aisle, KeyCorp (KEY 34.14 +1.01) delivered strong Q4 results that leave it one of the sector's sole sources of support. As GE and C respectively represent the S&P's first and third most influential issues, the broader market faces significant pressure.

Matching Industrials' decline, the Technology sector today weighs heavily. Slightly lower than expected revenues and in-line Q1 guidance from Motorola (MOT 22.74 -1.61) has sent the communication equipment industry reeling. As a side note, MOT is one of Briefing.com's recommended holdings for active investors; we view its report as solid and maintain our bullish view on the issue as well as on the industry. Due to some issuances of downside guidance and subsequent downgrades, semiconductors are an additional sore spot today and contribute to the sector's stance.

Even Energy, which, until a few moments ago had stood solo on gaining ground, suffers selling action. Crude futures' 1.5% surge to just under $68.00 per barrel had helped spark early buying action, and a much better than expected earnings report from oil services company Schlumberger (SLB 119.76 +4.89) catalyzed further upside. The sector's recent drop into the red reflects the pervasive pessimism that afflicts today's trade.

Separately, the University of Michigan's preliminary read on January consumer sentiment was the only piece of economic data delivered today. Better than expected results demonstrate a strengthening trend, but the data does not directly correlate with consumer spending and thus has had a muted effect upon trading within both the stock and bond markets. Today's economic front provides investors with no diversion from the somewhat negative earnings news.DJ30 -146.23 NASDAQ -32.27 SP500 -16.63 NASDAQ Dec/Adv/Vol 1873/977/1.02 bln NYSE Dec/Adv/Vol 2004/1100/876.4 mln

11:30 am : The market's decline continues. Of the S&P's ten economic sectors, Energy stands alone on gaining ground. The price of crude futures have surged 1.5%, leaving the price per barrel hovering just below $68.00. Aside from that, a much better than expected report from oil services company Schlumberger (SLB) has incited buying interest that adds to the sectors 11% year-to-date gain. SLB's report, and its assertion that its top line growth during the current fiscal year should be similar to that of 2005's, underpins the Overweight rating we've held on Energy since last August.DJ30 -121.75 NASDAQ -24.82 SP500 -12.07 NASDAQ Dec/Adv/Vol 1805/1013/834.3 mln NYSE Dec/Adv/Vol 1858/1202/742.1 mln

[54anickel]

92. The Irony of Complacency (Roach)

http://www.morganstanley.com/GEFdata/digests/20060120-fri.html#anchor0

So far, so good, for an unbalanced world -- the sky has yet to fall. And the longer a lopsided global economy continues to chug along with impunity, the more the broad consensus of opinion becomes convinced that this is a sustainable outcome. This increasingly complacent mindset may be about to meet its toughest challenge: A likely turn in the liquidity cycle appears to be on a collision course with ever-widening global imbalances. This could well be a lethal combination that triggers the long-awaited capitulation of the American consumer -- heretofore the mainstay of a US-centric world.

With the benefit of hindsight, the hows and whys of a benign outcome for the world economy in 2005 are crystal-clear. Basically, it was another year of “follow the leader,” as a US-centric world continued to draw sustenance from the seemingly unflappable American consumer. Sure, there were a number of other factors that came into play elsewhere around the world -- namely, the apparent healing of the Japanese economy, an improvement in Euroland late in the year, and the ongoing boom in China. But suffice it to say, were it not for another year of solid support from US consumer demand -- our latest estimates put real consumption growth at an impressive 3.5% in 2005 -- the rest of a largely externally dependent world would have been in big trouble.

What did it take for the American consumer to deliver yet again? It certainly didn’t come from the traditional income-generating capacity of the US labor market. Private sector compensation outlays expanded only 2.5% in real terms over the 12 months ending November 2005 -- a full percentage point below trend and an especially disappointing outcome following the anemic pace of labor income generation in the first three years of this expansion. In fact, by our reckoning, in November 2005, private compensation remained nearly $390 billion below the composite trajectory of the past four US business cycles. With America’s internal income-generating capacity continuing to lag, US consumers once again tapped the home equity till to draw support from the Asset Economy. According to Federal Reserve estimates, equity extraction by US households topped $600 billion in 2005 -- more than enough to compensate for the shortfall of earned labor income. Comforted by this asset-based injection of purchasing power, consumers had little compunction in stretching traditional income-based constraints to the max. The personal saving rate fell deeper into negative territory that at any point since 1933, and outstanding household sector indebtedness -- as well as debt service burdens -- hit new record highs.

So much for what happened in 2005. The big question for the outlook -- and quite possibly the most important macro issue for world financial markets in 2006 -- is whether the American consumer can keep on delivering. My answer is an unequivocal “no.” Three factors lead to me to this conclusion, the first being the distinct likelihood that a shortfall in internal labor income generation persists. Specifically, I do not expect the US labor market to break the shackles of globalization and unwind the increasingly powerful global labor arbitrage that has played a key role in restraining employment and real wage growth over the past four years. Second, I believe that asset effects will be far less supportive to the American consumer in 2006 than has been the case in recent years. This reflects the likelihood of a distinct slowing in home equity extraction -- driven by the combination of moderating house price inflation and a sharp deceleration in home mortgage refinancing. Third, in an environment of subpar income generation, in conjunction with diminished wealth effects from the Asset Economy, the saving-short, overly indebted American consumer will instantly become more vulnerable to ever-present shocks. Look no further than 4Q05 for validation of the “vulnerability factor” -- a likely “zero” growth rate for real personal consumption expenditures in the immediate aftermath of a Katrina-related supply shock to the energy complex.

more....

And yet the Treasury is not concerned with the level of US indebtedness - yeah right...must keep the consumer complacent at all costs - it's the only thing keeping this barge afloat.

[ozymandius]

93. Damage lessening but still among three-digit Dow losses, bonds take a hit

12:29
Dow 10,758.24 -122.47 (-1.13%)
Nasdaq 2,269.96 -31.85 (-1.38%)
S&P 500 1,271.57 -13.47 (-1.05%)
10-Yr Bond 43.83 +0.04 (+0.09%)
NYSE Volume 1,375,698,000
Nasdaq Volume 1,145,586,000

[ozymandius]

94. noon blather

12:00 pm : Plagued by a trio of disappointing fourth quarter earnings reports, Friday's downtrodden equity market has remained on a southbound course since the opening bell.

Wide-spread selling leaves nine of the ten economic sectors submerged. Lackluster Q4 results from General Electric (GE 33.50 -1.18) weighs heavily upon the overall market, and have sparked a 3.3% drop in the stock that has, in turn, driven the Industrial sector 1.7% lower. Fellow Dow component Citigroup (C 46.10 -1.84) announced a 4% decline in profit and checked in two cents shy of Wall Street's expectations. Its dim report has catalyzed a hefty 1.1% decline in the influential Financial sector, and helps maintain the market's focus on the effects of the flattening yield curve. On the other side of the aisle, KeyCorp (KEY 34.14 +1.01) delivered strong Q4 results that leave it one of the sector's sole sources of support. As GE and C respectively represent the S&P's first and third most influential issues, the broader market faces significant pressure.

Matching Industrials' decline, the Technology sector today weighs heavily. Slightly lower than expected revenues and in-line Q1 guidance from Motorola (MOT 22.74 -1.61) has sent the communication equipment industry reeling. As a side note, MOT is one of Briefing.com's recommended holdings for active investors; we view its report as solid and maintain our bullish view on the issue as well as on the industry. Due to some issuances of downside guidance and subsequent downgrades, semiconductors are an additional sore spot today and contribute to the sector's stance.

Even Energy, which, until a few moments ago had stood solo on gaining ground, suffers selling action. Crude futures' 1.5% surge to just under $68.00 per barrel had helped spark early buying action, and a much better than expected earnings report from oil services company Schlumberger (SLB 119.76 +4.89) catalyzed further upside. The sector's recent drop into the red reflects the pervasive pessimism that afflicts today's trade.

Separately, the University of Michigan's preliminary read on January consumer sentiment was the only piece of economic data delivered today. Better than expected results demonstrate a strengthening trend, but the data does not directly correlate with consumer spending and thus has had a muted effect upon trading within both the stock and bond markets. Today's economic front provides investors with no diversion from the somewhat negative earnings news.DJ30 -146.23 NASDAQ -32.27 SP500 -16.63 NASDAQ Dec/Adv/Vol 1873/977/1.02 bln NYSE Dec/Adv/Vol 2004/1100/876.4 mln

[54anickel]

96. So where's everyone going? Stocks, bonds, buck, gold all heading

down. Tupperware and Ziplocks?

[ozymandius]

99. Profit taking?

I wonder too.

So much money sat on the sidelines for years with quite a bit in low-yield money market accounts waiting for a buying opportunity. Whoever is providing shelter from this little tempest is probably doing okay.

[54anickel]

107. In Tuesday's wrap-up, Iossif couldn't make a direction call. I think

this week has answered the first half of his question.

http://www.financialsense.com/Market/iossif/2006/0117.html

Currently, one of the most important things when trying to decipher what the market is telling us, is to avoid getting fooled, which can happen rather easily! As we mentioned early on in the week, the markets could be at an "inflection point" and the rally could very well be over. However, both the current chart formation and the pattern formation of the technical indicators, are identical to what we see right before either a rally termination, or right before a rejuvenation of the rally (see charts below). Therefore, based upon the evidence at hand, it is early to make the determination with any degree of authority or certainty. If the first is true, we ought to see a close below last Tuesday's lows (Dow<10950, SP500<1283, NASDAQ<2300) sometime this week, followed by a subsequent close below support. If the second is true, we ought to see a close above last week's highs by mid-week.

Will we drop below support next week or see another rally to keep it just above? :eyes: It may turn out to be interesting to watch for signs of the PPT next week.

DJIA: Support at 10900 and at 10680; resistance at 11050.
SP500: Support at 1275; resistance at 1295
NASDAQ: Resistance at 2350; support at 2280 and at 2200.

[AnneD]

108. I have been thinking we were headed into a round

of profit taking.
But this gets back to the question in my first thread....where is the best place to put your money, esp in light of what will be happening this quarter in Iran etc...any ideas or thoughts?

[ozymandius]

110. Well, without making any specific recommendations...

I personally want to stay away from volatility in commodities markets. Slow and steady growth is an easier pill to swallow than the erratic gyrations of the stock markets of recent years. It is extremely difficult to find a good stock that does not have exposure, even tangentially, to a bad stock.

[54anickel]

127. Well, aside from the now questionable state of the US, the advice

from after 9-11 seems pretty sound. The question is how "safe" is the buck now? We are entering uncharted territory where the saftey of the US Treasury is concerned. I don't think the buck is going to tank anytime soon. We've only seen the beginning of defense of the petro-buck - first Iraq now Iran's on deck. History is replete with wars waged to protect a nation's currency and economy. The question now is how will the battle take place? On the ground and in the air with troops and bombs or on the currency, equity and bond exchange floors with bits and bytes? Perhaps a combination, which we are well on our way to exploring. One only need to look at the collapse of the Soviet Union to get an understanding of how that might take place. Sadly, it seems lil' Bush will be taking us down that road. We are stuck in the quagmire of the MiddleEast sucking the life blood out of our economy. The rest of the world is making contingency plans for the event of our demise.


Back to some of that advice in the weeks following 9-11:
http://www.asiaweek.com/asiaweek/magazine/YourSpace/0,8782,175611,00.html

[EuroObserver]

154. Well, it was easy for me to get mostly out of dollars in December

What little's left is not in stocks.

I'm mostly in Euros, some CHF, a few yen, and some 85% overall money-market and precious metals.

Much more than that, I'm not telling, and certainly not recommending!

[AnneD]

162. I have to this point...

pretty much been a Mutual Fund investor (all paper assets) and these changes are a real leap for me. I mean---holding Euros when I am not traveling? I would not have even thought about it 3 years ago. And precious metals? If I couldn't wear it I didn't need it, just look at the history of gold. Now I am widening my vision. Thanks for the ideas.

[AnneD]

160. Thanks Ozy, 54anickel

Commodities ARE wild at the moment but I do like the thought that gold seem to always keep up with inflation (at least and is secure) so that seems to be a plus. Oil will be a big issue as I firmly believe we are in the waning days of oil (so that may be a source of profit).
I am leery of the dollar and don't feel safe with it because of some of the things you outline 54anickel. I have even been toying with forex account to hedge my bets.
We really are at the dawn of a brave new world. I am afraid than we will have to consider new thing to survive and what worked in the past may prove disastrous at this time.
I appreciate the chance to brainstorm some scenarios and appreciate input.

[54anickel]

167. We live in interesting and scary times. So about the only investment

advice I give which have provided myself with riches beyond my dreams is to invest in quality time.

Quality time spent with friends and loved ones, pets, arts, music, helping others - things that really matter - things that you enjoy and make you happy things that can make a big difference for others.

I know it sounds corny, but that's what I've been doing with my free-time since I lost my HCE job. Personally, I've never felt richer.

[AnneD]

200. AHHHHH

Investing in Quality Time. Now that ALWAYS pays great dividends. Thanks for that suggestion.

[54anickel]

229. Hey, I said it sounds corny. But like they say, money isn't everything.

I do get resentful of the fact that I have to spend my time working several odd jobs to continue paying for bare necessities (cuts into some of my quality time). But my odd jobs are at least in service to some greater "social good" rather than the corporate coffers and fat cats. Guess what I'm saying is that I have a greater personal satisfaction now than when I was chasing the big bucks. But that's just me.

[UpInArms]

237. I agree, 54anickel -

leaving corporate 'murka was the best decision of my life!

I may not have all the money that I used to have, I may not wear the latest fashions, but I can tell you the quality of my life is vastly improved.

here's a virtual glass on me :D

[54anickel]

238. Thanks UIA. Most folks think I'm crazy to not get back into the game.

They can't seem to see past the money. Heck, when I was making it I couldn't see past it either. ;-)

:toast:

[EuroObserver]

208. Absolutely.

Less crazy urge to spend money on useless stuff that way, either.

Me, I love to spend hours preparing slow-cooked meals, especially for friends. And just walking in some of the beautiful country around here, following ancient trails, tracing medieval gothic, arabic and roman history, keeping an eye on the ecology...

[EuroObserver]

113. Gold being liquidated to cover margins?

...Looking for rebound time over there soon...
...Wondering how Tokyo will behave on Monday...

[EuroObserver]

98. European markets followed US into red

FTSE 100 closes down 0.4% at 5,672.4 in London 16:44
Xetra Dax 30 closes down 1.5% at 5,349.02 in Frankfurt 16:43
CAC 40 closes down 0.8% at 4,773.48 in Paris 16:44
FTSE 250 closes up 0.2% at 8,969.2 in London 16:42
FTSE Eurofirst 300 down 0.6% at 1,284.66 in closing exchanges in London 16:35
Swiss SMI down -0.95% at 7,697.53 at 17:35 GMT


European bourses close lower as Wall Street trades in the red
European equities were lower by the close of trade on Friday after Wall Street opened lower on earnings fears and as oil weighed on sentiment as the price of crude oil continued to rise.

FTSE dragged lower by earnings fears, Vodafone fall
LONDON,, Jan 20 (Reuters) - UK stocks closed lower on Friday, erasing earlier gains as disappointing U.S. earnings, a surge in oil prices and a fall for mobile phone giant Vodafone hit the market

European stocks fall on Infineon, oil shares gain
PARIS, Jan 20 (Reuters) - European shares ended Friday at their lowest level in almost three weeks as Infineon's wider-than-expected operating loss added to earnings worries and a rise in oil prices revived inflation fears, offsetting strong energy stocks.

Europe's biggest chipmaker, Infineon (IFXGn.DE: Quote, Profile, Research) , announced a first-quarter operating loss more than twice as large as analysts' expected, sending its shares tumbling 4.6 percent and adding to a string of negative news in the technology sector.

"It's a catastrophe, it looks like their (Infineon's) memory business went up in smoke during the quarter," a London-based analyst said. "This is a company that is struggling to defend itself as it lacks economy of scale."
...
Investors are increasingly nervous after a set of patchy results as the earnings season gets under way on both sides of the Atlantic. However, some remained optimistic that European shares could still gain due to a robust performance in heavily-weighted energy shares.

"Profits in the oil sector will once again top what we had in the previous year, and given the sector's important weight in indices we are rather confident," said Jean-Louis Autant, head of diversified investment at Groupama Asset Management.

"Results might be slightly less positive elsewhere, but these sectors don't weigh as much as oil does," he said, adding he expected markets to rise 5 percent in the first quarter and then plateau.

Anxiety over supplies from oil producing countries Iran and Nigeria drove crude prices more than 1 dollar higher to $68 a barrel, helping push energy stocks such as Norway's Norsk Hydro (NHY.OL: Quote, Profile, Research) and Statoil (STL.OL: Quote, Profile, Research) to new record highs.

Oil prices have gained 21.5 percent since their five-month low of $55.40 hit in mid-November, rekindling inflation and earnings worries.

[EuroObserver]

116. Now the FT blames it on the Japan!

Bourses slide on Tokyo correction
European equities fell back this week as a sell-off in Tokyo sparked a wave of profit-taking and German chipmaker Infineon tumbled after reporting a steep first-quarter operating loss. /more...

[UpInArms]

118. nothing about the warmongering US??? - ahhh more steno-sues appear. eom

[EuroObserver]

128. Yup. It's possible to watch these increasingly silly memes go round

and round the world each day, feeding off each other. Little sensible analysis getting through the wall of "I can't hear you!" - too busy, they'd all say, the steno-sues and -stephens, no time to sit back and think (I'd get the sack)!

...That's another reason I tend to place perhaps too much store by the maybe still profound, more meditative Asian mentality, especially at weekends... (Looked for an emoticon of a satori buddha, didn't find one. This will do: :banghead: )

[UpInArms]

133. lalalalalala - I can't hear you!

[EuroObserver]

150. Exactly.

Thanks, I'm saving that pic this time :smoke:

[fedsron2us]

236. Sad. I can remember when the FT was a great financial newspaper

rather than the pathetic propaganda sheet for neo-conservatism which it has become.

O tempora ! O Mores !!

[EuroObserver]

147. Damn these unspecified EU timezones:

That last Swiss SMI should have read 17:35 CET

[UpInArms]

104. 12:45 EST continuing the plummet thing

Dow 10,740.45 -140.26 (-1.29%)
Nasdaq 2,263.75 -38.06 (-1.65%)
S&P 500 1,269.07 -15.97 (-1.24%)
10-Yr Bond 4.381 +0.02 (+0.05%)

NYSE Volume 1,447,407,000
Nasdaq Volume 1,208,661,000

12:30 pm : The market remains near its worst levels of the session. Meanwhile, the Treasury market has moved back into negative territory. The yield curve between the two and 10-year notes has been inverted all day, and remains an extra drag on equities. Presently, both notes yield 4.38%. Action within that market is light today, and bond traders' focus rests upon the end-of-the-month FOMC meeting. Its status today adds to the Citigroup (46.29 -1.65) effect upon the Financial sector, and the curve's inversion directs further attention toward the net interest margin compression many banks are experiencing. DJ30 -131.35 NASDAQ -34.34 SP500 -15.06 NASDAQ Dec/Adv/Vol 1992/899/1.14 bln NYSE Dec/Adv/Vol 2113/1029/1.02 bln

[UpInArms]

112. 1:04 EST hitting another sinkhole - oopsie!

Dow 10,725.91 -154.80 (-1.42%)
Nasdaq 2,256.71 -45.10 (-1.96%)
S&P 500 1,266.85 -18.19 (-1.42%)
10-Yr Bond 4.381 +0.02 (+0.05%)

NYSE Volume 1,544,733,000
Nasdaq Volume 1,323,798,000

[hatrack]

114. Uglier and uglier

This is getting messy.

[ozymandius]

119. Nasdaq curbs close to kicking into effect

1:23
Dow 10,727.35 -153.36 (-1.41%)
Nasdaq 2,258.29 -43.52 (-1.89%)
S&P 500 1,267.37 -17.67 (-1.38%)
10-Yr Bond 43.77 -0.02 (-0.05%)
NYSE Volume 1,634,588,000
Nasdaq Volume 1,409,195,000

[UpInArms]

121. US stocks plunge on oil, profits; Nasdaq off 2 pct

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-20T181807Z_01_N20369504_RTRIDST_0_MARKETS-STOCKS-UPDATE-9.XML

NEW YORK, Jan 20 (Reuters) - U.S. stocks fell sharply on Friday, with the Nasdaq Composite index dropping 2 percent for its biggest one-day percentage fall since Jan. 4, 2005, as earnings from Dow components Citigroup Inc. (C.N: Quote, Profile, Research) and General Electric Co. (GE.N: Quote, Profile, Research) renewed fears of slower corporate profit growth.

Surging crude oil prices also weighed on stocks.

The Dow Jones industrial average <.DJI> was down 145.68 points, or 1.34 percent, at 10,735.03. The Standard & Poor's 500 Index <.SPX> was down 16.89 points, or 1.31 percent, at 1,268.15. The technology-laced Nasdaq <.IXIC> was down 43.92 points, or 1.91 percent, at 2,257.89.

Crude just "surges" for no apparent reason :crazy:

[Roland99]

125. Moving off the lows...

DJIA 10,733.70 -147.00
Nasdaq 2,260.29 -41.52
S&P 500 1,268.19 -16.85
Russell 2000 706.35 -8.59

[EuroObserver]

152. Found the floor, there n/t

[loudsue]

120. Somebody apply a tourniquet ----FAST!!

This looks like a minor blood bath!

:kick::kick::kick:

[EuroObserver]

123. Prudent Investor: Information Overload: Stay with Gold!

Friday, January 20, 2006
Information Overload

Sorry. I am suffering from a huge bout of information overload.

* Money supply exploding all over the world
* GE earnings decline 46 %
* Inflation figures are up everywhere
* Gold does not correct
* In 11 days Bernanke will become the skipper of the Federal Reserve
* The time Iran needs to build a "nucular" bomb has shrunk from a decade to a few months according to MSM (commercial mainstream media)
* Crude oil steering towards all-time highs
* GOP plagued by scandals, scandals, scandals
* Ford plans to cut another 25,000 jobs
* Bush needs to keep the liquidity-tap open in order to secure the mid-term elections
* Housing bubble begins to pop
* Bond prices are falling
* The US wants Google's search records. Great! They wanna know what I think about. Remember, this data would give the administration a realtime clue what you are thinking about.
* Why do MSM ignore the biggest bull of all: GOLD (exception: Bloomberg)
* The presidential cycle (see picture below)


Due to my annual health check I will not be able to post until next Friday.
Recommendation: Stay with gold, accumulate if there is a dip in the first quarter.

by The Prudent Investor @ 13:38

[UpInArms]

124. 1:35 EST ugly numbers - no help blather

Dow 10,727.09 -153.62 (-1.41%)
Nasdaq 2,258.65 -43.16 (-1.88%)
S&P 500 1,267.50 -17.54 (-1.36%)
10-Yr Bond 4.373 -0.06 (-0.14%)

NYSE Volume 1,695,326,000
Nasdaq Volume 1,471,264,000

1:30 pm : Digging deeper, the indices establish a fresh set of lows. At this point, the Dow, S&P, and Nasdaq have declined an average 1.6%. Further evidencing Friday's pervasive pessimism, the S&P 400 Midcap Index and the Russell 2000 have each given up 1.2%. One of the only areas demonstrating strength today is energy. The Oil Services Index has risen 2.0% -- adding to its 15.8% year-to-date gain. Of the S&P's oil services issues, SLB (following its strong Q4 report) and HAL fare best; each is up about 5% on the day. DJ30 -154.26 NASDAQ -43.99 SP500 -17.56 NASDAQ Dec/Adv/Vol 2087/859/1.43 bln NYSE Dec/Adv/Vol 2154/1029/1.77 bln

1:00 pm : Trading sideways at sitting still at session lows, the market's major averages continue to languish. On account of a market-dragging 2% drop in the Tech sector, The Nasdaq underperforms its blue chip counterparts. Aside from the MOT-induced plunge in the communication equipment industry, semiconductors are largely behind the move. The Philadelphia Semiconductor index (SOX), which has registered over 11% in the first few weeks of 2006, has lost 3.4% today alone. Each of the SOX's issues have declined in excess of 2%, with Xilinx's (XLNX 27.43 -2.36) 8% plunge weighing heaviest. Last night, the chip company delivered Q4 results that disappointed investors. DJ30 -142.48 NASDAQ -41.86 SP500 -16.52 NASDAQ Dec/Adv/Vol 1985/918/1.29 bln NYSE Dec/Adv/Vol 2048/1118/1.09 bln

[ozymandius]

129. Remember that story about day traders in Republican Congressional offices?

http://dailykos.com/storyonly/2006/1/19/17445/7449

Insider Trading in Frist and Delay's Office: Story Growing

In an exclusive last night on Air America Radio's The Majority Report, Rep. Louise Slaughter alleged that day-traders had been operating inside the offices of Senator Frist and Congressman Delay. Telling us that her source was "as good as gold," Rep. Slaughter promised to investigate further and get back to us.

-cut-

The backstory of this involves what's called "political intelligence." The Hill did a story nearly a year ago on firms that harvest insider political info and feed it to Wall Street to get ahead of the news cycle; obviously much of what happens in DC affects the market.

-cut-

The next step is tying the employees of these intelligence firms to both the Repoublican party in general, and Delay, Frist, and their staffers specifically. Rep. Baird has already written to the House Ethics Committee to investigate (we'll hold our breath on that) and is proposing legislation to end this corruption. We've also heard that outside law-enforcement agencies may soon become involved.

and from Josh Marshall...

http://www.talkingpointsmemo.com/archives/007485.php

My capacity to be shocked at these folks is pretty strained at this point. But I'd be shocked by this one. Rep. Louise Slaughter is saying that DeLay and Frist had staffers day-trading out of their offices, working on inside info from lobbyists and legislators. I can't wait to see if there's meat on this bone.

Good to know there are sharp minds looking into this.

[UpInArms]

130. FirstEnergy to Pay $28 Million Fines, Admits Nuclear leak Cover Up

http://abcnews.go.com/Business/wireStory?id=1526434

CLEVELAND Jan 20, 2006 — Acknowledging that its employees covered up serious damage at a nuclear power plant, the facility's owner has agreed to pay $28 million in fines, restitution and community service projects, the U.S. Justice Department announced Friday.

Inspectors found an acid leak in 2002 that nearly ate through a 6-inch steel cap on the reactor vessel at the Davis-Besse plant owned by FirstEnergy Corp. Officials said it was the most extensive corrosion ever seen at a U.S. nuclear reactor.

Company and Nuclear Regulatory Commission investigations concluded that the rust hole had been growing for at least four years and that Davis-Besse's managers had ignored the evidence because they were focused on profits rather than safety at the plant, which sits along the Lake Erie shore about 30 miles east of Toledo.

As part of the agreement, FirstEnergy acknowledged that the government can prove that nuclear plant employees "knowingly made false representations to the NRC" at they tried to convince the commission the plant was safe to operate beyond 2001, the Justice Department said in a statement.

...more...

[EuroObserver]

149. focused on profits rather than safety

Like them all, like them all.

That's why tough regulation is of the essence in free markets.

[lovuian]

131. Watching the dollar fall against the euro... OUCH!!!

What a day today is!!! Crazy :crazy:

[ozymandius]

134. 1:54 arrives with all the charm of an abbatoir

Dow 10,722.37 -158.34 (-1.46%)
Nasdaq 2,256.70 -45.11 (-1.96%)
S&P 500 1,267.15 -17.89 (-1.39%)
10-Yr Bond 43.67 -0.12 (-0.27%)
NYSE Volume 1,777,954,000
Nasdaq Volume 1,538,609,000

1:30 pm : Digging deeper, the indices establish a fresh set of lows. At this point, the Dow, S&P, and Nasdaq have declined an average 1.6%. Further evidencing Friday's pervasive pessimism, the S&P 400 Midcap Index and the Russell 2000 have each given up 1.2%. One of the only areas demonstrating strength today is energy. The Oil Services Index has risen 2.0% -- adding to its 15.8% year-to-date gain. Of the S&P's oil services issues, SLB (following its strong Q4 report) and HAL fare best; each is up about 5% on the day. DJ30 -154.26 NASDAQ -43.99 SP500 -17.56 NASDAQ Dec/Adv/Vol 2087/859/1.43 bln NYSE Dec/Adv/Vol 2154/1029/1.77 bln

1:00 pm : Trading sideways at sitting still at session lows, the market's major averages continue to languish. On account of a market-dragging 2% drop in the Tech sector, The Nasdaq underperforms its blue chip counterparts. Aside from the MOT-induced plunge in the communication equipment industry, semiconductors are largely behind the move. The Philadelphia Semiconductor index (SOX), which has registered over 11% in the first few weeks of 2006, has lost 3.4% today alone. Each of the SOX's issues have declined in excess of 2%, with Xilinx's (XLNX 27.43 -2.36) 8% plunge weighing heaviest. Last night, the chip company delivered Q4 results that disappointed investors. DJ30 -142.48 NASDAQ -41.86 SP500 -16.52 NASDAQ Dec/Adv/Vol 1985/918/1.29 bln NYSE Dec/Adv/Vol 2048/1118/1.09 bln

[ozymandius]

135. Nasdaq curbs are in

1:57
Dow 10,710.30 -170.41 (-1.57%)
Nasdaq 2,254.75 -47.06 (-2.04%)
S&P 500 1,265.84 -19.20 (-1.49%)
10-Yr Bond 43.67 -0.12 (-0.27%)
NYSE Volume 1,797,557,000
Nasdaq Volume 1,558,165,000

[hatrack]

137. This is like watching an elevator cable fail

How long do the curbs hold?

[ozymandius]

140. Until movement comes back inside 2% of the opening average. eom

[hatrack]

142. That's not very "free market", is it now?

BTW, thanks for your daily toil here, Ozy. I salute :toast: you! (And Up In Arms, Distressed American, 54anickel and many more!)

[54anickel]

146. I was wondering if we'd see curbs today...eom

[ewagner]

138. Just checked on my "positions"

on my Brokerage site....

I'm not taking as much of a beating as I feared......some but not much....maybe 6% overall.

[ret5hd]

143. i think the only "position" some are taking today is doggy style.

[ewagner]

144. I checked

some of the stock trading blogs/message boards.....mostly they're so busy chasing a particular stock that the market movement as a whole doesn't affect them....

Out of four stocks I'm "holding" 2 are up (but not enough to cash out) and two are down, (one slightly, one badly) bottom line still about 6% down.

[AnneD]

207. My Mom puts it this way.....

some days you're the bug, some days you're the windshield. Variations...statue/pidgeon dog/fire hydrant

[EuroObserver]

155. Headline: A deathly calm follows lunch as Wall St. approaches close

...so predictable :bounce:

[54anickel]

151. Dow Falls 150 Points on GE, Citigroup (Expectations to blame)

http://biz.yahoo.com/ap/060120/wall_street.html?.v=16

Stocks Drop on GE, Citigroup Earnings and Soaring Energy Prices; Dow Slips More Than 150 Points


NEW YORK (AP) -- Lackluster earnings reports from Dow Jones industrials General Electric Co. and Citigroup Inc. triggered a selloff on Wall Street Friday as soaring energy prices compounded the gloom. The Dow lost more than 150 points.

A tempered outlook from Motorola Inc. disappointed traders although its newest cell phone helped double its profit last quarter. Elsewhere, news that supermarket chain Albertson's Inc. has resumed takeover talks drove gains in its stock.

While GE and Citigroup's results came in just shy of analysts' estimates, the large-cap firms that released earnings this week would have needed blockbuster reports to satisfy Wall Street's overblown expectations, said Rick Pendergraft, an equity trader at Schaeffer's Investment Research.

"The ramp up we had into earnings let you know that people were expecting big things," Pendergraft said. "Any time we go into an earnings season and the market is overbought, it sends up a caution flag for me."



Who sets those expectations again? Oh yeah, these guys with the propeller heads....


http://www.galleryone.com/images/bullas/bullas%20-%20element%20of%20surprise,%20the.jpg

[EuroObserver]

157. There's an elephant in that room

Just sayin' :eyes:

[bobo4u]

169. The Dow's fall has nothing to do with earnings.

This selloff was caused by Iran threatening to shut off the oil valve, and moving out of dollars.

The media certainly doesn't want to tell you that the US economy is just about finished. Unless we can continue to control oil and currency markets, we're pretty much fucked.

[ozymandius]

188. Welcome bobo4u to DU and the SMW.

What you say there: that is the big picture.

[54anickel]

190. Shush! You'll interrupt the hypnotic state Snow and Bush are trying

to induce with their "The economy is great" chant.

[54anickel]

153. Judge OKs United Reorganization Plan

http://biz.yahoo.com/ap/060120/united_bankruptcy.html?.v=6

CHICAGO (AP) -- United Airlines' reorganization plan won final approval by a judge Friday, clearing the way for the nation's second biggest carrier to come out of bankruptcy in less than two weeks.
The ruling by U.S. Bankruptcy Judge Eugene Wedoff, after remaining objections to United's reorganization plan were resolved this week, keeps United on a path to emerge from Chapter 11 on Feb. 1 after the largest and longest airline bankruptcy in history.

Wedoff said there is "reason to feel good" about United's restructuring, even though it took about twice as long as first projected.

"Three years ago United Airlines was in danger of dying," he said. After using bankruptcy law to reorganize, "once again it has the potential to be a profitable investment, a reliable business partner, and a stable employer."

snip>

Parent company UAL Corp. has used the protection of federal bankruptcy law to trim $7 billion in annual costs, including two rounds of employee pay cuts; eliminate more than 25,000 jobs; dump its defined-benefit pensions and reduce its cost structure.

more...

Guess those remaining workers are mightly damned thankful they still have a job as most Repukes will tell you they should be. Oh yeah, we're all damned thankful to have a stable low paying job. Sh*t, I'm so thankful for their generosity, I've taken up 3 of them. :eyes:

[AnneD]

211. Hey Mon,

you be a jammin' Jamacian 54anickle. Now get yo pets an couple o jobs and everything be eye rait.

[54anickel]

231. No way, Mon. Couple a more jobs and we be talkin' cuttin' inta me

quality time - no can do.

[54anickel]

158. Nasdaq Glitch Results in Incorrect Quotes

http://www.forbes.com/business/services/feeds/ap/2006/01/19/ap2462799.html

snip>

A computer glitch at the Nasdaq Stock Market left erroneous stock price swings on major online financial news Web sites and brokerage sites all day Thursday. While nearly impossible to assess the full extent of the damage, the technical snafu created incorrect price changes for approximately 1,500 stocks listed on the New York Stock Exchange and American Stock Exchange, the Nasdaq confirmed.

Someone relying on Web sites for stock data on Thursday got the correct price of the stock in the current market, but the wrong change - for example, as in the case of AMR, up $1.84 instead of 16 cents.

The errors created the potential for investors using the erroneous information in deciding on a stock trade - someone seeing AMR up $1.84 could wonder whether the money-losing airline's fortunes have improved, for example.

snip>

Sherman said stock indexes and mutual fund net asset values, computed after the close of the market, were not affected by the problem.

Nasdaq is responsible for reporting NYSE-listed stock trades to a consolidated listing service so investors can see the latest price for a given stock, whether it was traded on the floor of the NYSE or through Nasdaq's computers.

Due to the computer errors, however, individual investors using popular financial sites like MSN Money or Yahoo Finance were seeing inaccurate price changes Thursday. Customers of online brokerages E-Trade and Charles Schwab also saw erroneous stock movements on those companies' home pages, though it was unclear whether logged-in customers got the same errors. A customer account at Ameritrade showed that broker's real-time quotes were correct, while another logged-in account at Fidelity.com showed an incorrect price change.

Unless another glitch were to occur overnight, stock listings were expected to return to normal on Friday, given that the change in price in Friday's trading would be based on Thursday's closing price.

more...

[UpInArms]

163. 2:58 EST faeries can get no footing on that slippery bloody floor

Dow 10,706.62 -174.09 (-1.60%)
Nasdaq 2,254.76 -47.05 (-2.04%)
S&P 500 1,265.48 -19.56 (-1.52%)
10-Yr Bond 4.369 -0.10 (-0.23%)

NYSE Volume 2,139,958,000
Nasdaq Volume 1,836,685,000

2:30 pm : Virtually static since the previous update, stocks still languish at session lows. Here is a look at the industries most responsible for today's drop. Down 8.5%, auto parts and equipment (DCN, DPH, JCI, VC) are plagued by downside guidance, despite a solid report, from Johnson Controls. Semiconductor equipment (AMAT, KLAC, NVLS, TER) checks in second-to-last, sporting a 4.0% loss. Next in the laggard line is communication equipment (ADCT, ANDW, AV, CIEN, CSCO, CMVT, GLW, JDSU, LU, MOT, WCOM, SFA, TLAB); the MOT-effect has sparked its 3.7% decline. Healthcare suppliers (BOL, MIL) are off 3.3%, while GE has taken industrial conglomerates (MMM, GE, TXT, TYC) 3.3% south. DJ30 -164.09 NASDAQ -45.53 SP500 -18.46 NASDAQ Dec/Adv/Vol 2166/823/1.70 bln NYSE Dec/Adv/Vol 2229/1013/1.44 bln

[54anickel]

164. Boardwalk and Park Place with Five Hotels (Heh-heh, nice lesson in

capitalism)

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=50691

snip>

Poor Sis was no match for a cold-blooded monopolist such as myself. While she blithely trotted her little dog around the game board, window shopping and chatting with imaginary proprietors, I was racing about town in my sports car buying up everything I could get my hands on.

Before long I had control of the railroads, the utilities and virtually every property in town (save for the Bailey Building and Loan, which I couldn’t seem to get my fingers on). Sis seemed content with bread and circuses, happy to win second prize in a beauty contest or other such cheap diversions.

Needless to say, she would inevitably be bankrupted by my aggressive tactics, which would have been OK if I had simply let her lose with dignity. But I insisted on loaning her just enough money to keep her in the game and spending her subsistence at the company store, as it were. My mother still has notebooks that I kept at the time of my sister’s chronic indebtedness: “Teri owes me $1000. Teri owes me $1500, etc.” This indentured servitude would probably have continued indefinitely had my mother not intervened. To her credit, she never attempted any sort of wealth redistribution or land reform, though she often insisted we start the game over on a “level playing field.”

My sister, embittered by the experience, eventually grew up to become a hard-core socialist, also known as a typical American voter. Actually, she’s a bit left of that description – call her a typical Portland, Oregon voter.

This Christmas, perhaps out of revenge for her childhood exploitation under my merciless rule, she sent me an “alternative” board game with the suspiciously cozy name “Our Town.” The game preaches a “friendly spirit” that stresses “Our” rather than “My” in creating “a healthy economy for all the citizens.” I smelled a rat of the collectivist variety. (One tip-off: the use of “the citizens” rather than just “citizens.” Only a commie body snatcher would talk that way.) But I figured I’d keep an open mind and play the game, secretly hoping I could beat the system and in the process teach my daughter how an economy really works.

more...

[feminazi]

166. Holy Crap, guys!!!

What an ugly, ugly day. I love the fact that Shrub has his advisors out touting the economy today. Talk about good timing. What morans!

Thanks to you all again for maintaining this thread every day.

:hi:

[54anickel]

168. Timing has nothing to do with it. It's simply the piehole effect. Too

bad Bushco doesn't get it. The markets would be a lot better off it they'd just keep their traps shut. :evilgrin:

[feminazi]

171. Damn, I forgot about the piehole effect.

*

[54anickel]

204. Yep, we already know they are lying cuz their lips are moving. It's

when they come out in full force like today that there's an added sense of urgency to the lie.

[JNelson6563]

170. 3:14 Where is the money going?

Dow 10,703.01 -177.70 (-1.63%)
Nasdaq 2,255.97 -45.84 (-1.99%)
S&P 500 1,265.29 -19.75 (-1.54%)
10-Yr Bond 4.361% -0.02

While $$ flees the markets I don't see where it's going to.

Julie

[54anickel]

177. Seems to be the question of the day Julie. Where is it going?

Cash? I can't believe there's that much call for birdcage liner. :evilgrin:

[JNelson6563]

180. Yeah, and another thing........

Currency is under the radar but I could swear that earlier this week a British pund was worth $1.70, now it's at almost $1.78. Zowie!

Maybe the money's going to foriegn currency markets? :shrug:

Much madness today.

Julie

[EuroObserver]

195. Nothing crazy about that, Julie,

...especially if you don't need / can't spend dollars in your local high street...

:shrug:

[bobo4u]

196. Gold and Oil

PSPFX and PSAFX

'Course, with the way these funds have been performing lately, I don't think I'd get in right now. But, for the long run, they look good.

[UpInArms]

172. 3:17 EST levees have given way - under 10,700 now

Dow 10,694.70 -186.01 (-1.71%)
Nasdaq 2,254.50 -47.31 (-2.06%)
S&P 500 1,264.94 -20.10 (-1.56%)
10-Yr Bond 4.361 -0.18 (-0.41%)

NYSE Volume 2,266,349,000
Nasdaq Volume 1,940,166,000

[ozymandius]

176. Stocks sink on earnings worry, oil's surge

NEW YORK (Reuters) - U.S. stocks dropped on Friday, with the Dow erasing nearly all of its gains for 2006, as earnings from Dow components Citigroup Inc. (NYSE:C - news) and General Electric Co. (NYSE:GE - news) added to fears of slower corporate profit growth.

A surge in oil prices above $68 also battered stocks. Crude climbed on concern about Iran's nuclear plans, the targeting of oil companies by militants in Nigeria and Osama bin Laden's threat of attacks against the United States.

-cut-

Weighing on the technology-laced Nasdaq were shares of Google Inc. (Nasdaq:GOOG - news) which slid 8 percent to $401.87, as the Web search engine's stock headed for its worst week since the company made its market debut in August 2004.

Shares of Google were hurt after competitor Yahoo Inc. (Nasdaq:YHOO - news) released disappointing earnings on Tuesday.

more...

[ozymandius]

178. bloody crater it is

Dow 10,687.08 -193.63 (-1.78%)
Nasdaq 2,252.93 -48.88 (-2.12%)
S&P 500 1,264.00 -21.04 (-1.64%)
10-Yr Bond 43.61 -0.18 (-0.41%)
NYSE Volume 2,325,975,000
Nasdaq Volume 1,990,533,000

[UpInArms]

179. 3:29 EST - will it be deeper than 200 pts?

Dow 10,685.88 -194.83 (-1.79%)
Nasdaq 2,252.42 -49.39 (-2.15%)
S&P 500 1,263.68 -21.36 (-1.66%)
10-Yr Bond 4.361 -0.18 (-0.41%)

NYSE Volume 2,366,219,000
Nasdaq Volume 2,019,925,000

adding blather

3:30 pm : Sliding still, the market shows no sign of recovery as the closing bell approaches. Aside from Energy (+0.8%) and Utilities (-0.5%), each sector has registered a loss in excess of 1.3%. Treasuries, however, staged a late-day recovery as investors perhaps turned to the more safe-haven bond market. The benchmark 10-year note jumped four ticks, and the 30-year rose ten. At the same, the yield curve did not much improve and contributed to stocks' suffering. Currently, the two and ten year notes both yield 4.36%.DJ30 -189.46 NASDAQ -48.19 SP500 -20.83 NASDAQ Dec/Adv/Vol 2140/887/2.01 bln NYSE Dec/Adv/Vol 2229/1048/1.70 bln

[ozymandius]

185. Dow loses more than 200

3:42
Dow 10,671.00 -209.71 (-1.93%)
Nasdaq 2,246.00 -55.81 (-2.42%)
S&P 500 1,262.00 -23.04 (-1.79%)
10-Yr Bond 43.61 -0.18 (-0.41%)
NYSE Volume 2,476,596,000
Nasdaq Volume 2,122,376,000

[radwriter0555]

186. Dropping like a ROCK....

Down... down... down.... -213 12:42pm

[UpInArms]

184. Siemens unit, 2 employees indicted on federal fraud charges (Cook CO, IL)

3:38pm 01/20/06 Siemens unit indictment relates to $49M equipment contract - MarketWatch.com

3:37pm 01/20/06 Siemens unit, 2 employees indicted on federal fraud charges - MarketWatch.com

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38737.6587062616-858001747&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Siemens Medical Solutions USA Inc., a unit of Siemens AG (SI) , along with two of its employees and two partners in a joint venture, have been indicted on federal fraud charges, the Department of Justice said Friday. The indictment relates to a $49 million radiology equipment contract that required minority business participation and was awarded during the construction of Cook County, Ill.'s Stroger Hospital. The company allegedly formed a sham joint venture with a minority business enterprise to bid on the contract in 2000. According to the DOJ, the employees schemed to cover up the fraud when the contract was challenged by a competitor in a lawsuit. The joint venture partners cited by the DOJ are Faustech Industries Inc., a local consulting firm, and its owner, Faust Villazan. Five defendants were charged in a five-count indictment.

[UpInArms]

187. 3:42 EST bottomless bloody pit - 210+ and still dropping

Dow 10,670.29 -210.42 (-1.93%)
Nasdaq 2,246.00 -55.81 (-2.42%)
S&P 500 1,262.00 -23.04 (-1.79%)
10-Yr Bond 4.361 -0.18 (-0.41%)

NYSE Volume 2,477,964,000
Nasdaq Volume 2,123,059,000

[54anickel]

191. Geebus look at the volume. Too late to yank the plug? Japan did

it with only 20-some minutes left, then again that may induce more panic before the weekend.

NAS volume numbers changing as fast as the $ per gallons pumped at the filling station these days.

[trogdor]

193. I'm in for bargain hunting.

Just bought $20K worth of index funds, anticipating a rebound on Monday. Dow -210 is clearly an over-reaction to something, which means it's probably time to buy. You have about ten minutes to join me.

[UpInArms]

194. 3:53 EST vultures swooping in (no offense trogdor)

Dow 10,680.36 -200.35 (-1.84%)
Nasdaq 2,249.93 -51.88 (-2.25%)
S&P 500 1,262.51 -22.53 (-1.75%)
10-Yr Bond 4,361 -0.18 (-0.41%)

NYSE Volume 2,619,211,000
Nasdaq Volume 2,238,162,000

that blue-light special is still on for 7 more minutes!

:hi:

[ozymandius]

197. no offense to trogdor either - but one taste and they wretched

3:59
Dow 10,667.07 -213.64 (-1.96%)
Nasdaq 2,249.50 -52.31 (-2.27%)
S&P 500 1,261.51 -23.53 (-1.83%)
10-Yr Bond 43.61 -0.18 (-0.41%)
NYSE Volume 2,723,355,000
Nasdaq Volume 2,322,199,000

[EuroObserver]

198. Keep your eye on the S&P n/t

[54anickel]

199. Pennies above support, but looks like it will close below. eom

[meganmonkey]

189. Thanks everyone for all your info and wisdom!!!!

Next time it better be better news ;)

[ozymandius]

201. I can hardly wait to read the blather.

Let's see how much the weather, Osama's new album and general unwillingness to hold stocks over the weekend factor into today's bloodbath.

[EuroObserver]

203. ...and then we'll see what Asia, then Europe make of it,

(Not the mention the 'overnight' traders). Monday's going to be interesting.

[AnneD]

216. Ozy, you forgot...

to factor in the weather :eyes: Can't wait to hear all the 'surprised' economist and talking heads on the wrapup shows tonight. Dang, I feel good that I got out when I did. Thanks ever so much guys :headbang:

[ozymandius]

210. Final numbers. Please ask the children to leave the room.

Dow 10,667.39 -213.32 (-1.96%)
Nasdaq 2,247.70 -54.11 (-2.35%)
S&P 500 1,261.49 -23.55 (-1.83%)
10-Yr Bond 43.61 -0.18 (-0.41%)
NYSE Volume 2,828,338,000
Nasdaq Volume 2,350,955,000

blather to come...

[ozymandius]

212. blather

4:20 pm : Infected with wide-spread selling, Friday's stock market steadily slipped from bell to bell. A trio of disappointing fourth quarter earnings reports paired with the surging price of crude in pushing the indices to their worst performance in nearly a year and a half, and to losses that erased much of their average 3% year-to-date gain. Volume was higher than average, an indication of conviction behind the move.

Uncertainty over Iran helped send crude to a four-month high of $68.35 per barrel. Reports that the country is moving funds out of Europe to shield them in the event the U.N. imposes sanctions for its nuclear ambitions, and that it may cut its OPEC output and withhold oil from the market rocked the broader market. At the same time, crude's rise did little good for the Energy sector (+0.2%) and even it couldn't escape the effects of broad-based selling. One of the market's sole bright spots lied there, though. Following a much better than expected earnings report from Schlumberger (SLB 122.21 +7.34), as well as its assertion that its top line growth during the current fiscal year should be similar to that of 2005's, the Oil Services Index rose about 1.8%.

With earnings season in the spotlight, lackluster results from General Electric (GE 33.37 -1.31) and a disappointing decline in profits from Citigroup (C 45.76 -2.18) tanked the Dow. As these reports come on the heels of similar upsets from high-profile names like Intel, Yahoo, and Apple, the market reacted aggressively. While only about 20% of the S&P 500 has thus reported Q4 results, today's batch nonetheless gave investors reason to maintain a defensive stance. Because of GE, Industrials fell 2.3%. Due to C, Financials dropped 2.1%. A yield curve that spent most of the session inverted added to the latter sector's woes and compounded Citigroup's effect upon banks. On the other side of the aisle, KeyCorp (KEY 34.16 +1.03) delivered strong Q4 results that left it one of the sector's sole pockets of strength. As GE and C respectively represent the S&P's first and third most influential issues, the broader market faced significant pressure.

It was the Technology sector that levied the greatest loss. The aforementioned tech disappointments continued to plague the sector, and slightly lower than expected revenues and in-line Q1 guidance from Motorola (MOT 22.48 -1.87) sent the communication equipment industry reeling. As a side note, MOT is one of Briefing.com's recommended holdings for active investors; we view its report as solid and maintain our bullish view on the issue as well as on the industry. Due to some issuances of downside guidance and subsequent downgrades, semiconductors plunged over 4%; Google's (GOOG 399.41 -37.04) extended decline related to the Department of Justice's data request fostered further selling and roiled the Nasdaq.

Separately, the University of Michigan's preliminary read on January consumer sentiment was the only piece of economic data delivered today. Better than expected results demonstrate a strengthening trend, but the data does not directly correlate with consumer spending and thus was overlooked by the stock and bond markets alike. With an absence of data on today's economic front, the market had virtually no diversion from the
negative earnings news and soaring price of crude. DJ30 -213.32 NASDAQ -54.11 SP500 -23.55 NASDAQ Dec/Adv/Vol 2223/833/2.37 bln NYSE Dec/
Adv/Vol 2292/986/2.16 bln

Well, I was wrong. Nothing about Osama, being weighted down with stocks over the weekend or the weather.

Have a great weekend folks!

Ozy :hi:

[meganmonkey]

213. Thanks Ozy!!

:yourock: I lurk on this thread from time to time but too often I forget to thank you.

So THANK YOU!!!!

:toast:

[ozymandius]

215. You're very gracious for saying so.

Thank you and you're welcome. Remember UpInArms who so often has my back.

:thumbsup:

Ozy :hi:

[UpInArms]

214. choco rations on the increase!

Separately, the University of Michigan's preliminary read on January consumer sentiment was the only piece of economic data delivered today. Better than expected results demonstrate a strengthening trend, but the data does not directly correlate with consumer spending and thus was overlooked by the stock and bond markets alike. With an absence of data on today's economic front, the market had virtually no diversion from the negative earnings news and soaring price of crude. DJ30 -213.32 NASDAQ -54.11 SP500 -23.55 NASDAQ Dec/Adv/Vol 2223/833/2.37 bln NYSE Dec/Adv/Vol 2292/986/2.16 bln

Maybe we all just need a little higher dose of that SOMA shit :D

[Roland99]

217. Well, people just got their Jan. raises..might have tipped the CI higher

Just a guess.

[ozymandius]

218. Isn't that amazing in such a weird sort of way?

I wonder how that data was processed. Are they only polling people in Michigan? Are people happy about having less monetary power?

What, I wonder?

[AnneD]

222. Ozy...

it's like that time between picking up the new car but before your first payment. They just had Christmas but haven't gotten the heating bill and the new credit card minimum payments. Next month will be in the toilets, trust me.

[UpInArms]

224. as Roland said, maybe they got a pitiful raise, but

they haven't received their utility bills yet :shrug:

[EuroObserver]

233. That was the 'seasonal adjustment'

and the weather effect...

[meganmonkey]

219. Thank you, UpInArms!

:yourock:

As I was saying to Ozy, I really appreciate what you guys do on this thread every day.
It is a vital service to the DU community!

:thumbsup:

[UpInArms]

221. you're welcome meganmonkey!

I have to say that without DU I would be wandering the streets looking for my mind - and a mind is a terrible thing to lose :D

Knowing that there are other people out there that care to know what is happening beyond the numbers really is the best thing for me not feeling alone on this planet.

:grouphug:

[AnneD]

220. I'll have whatever Dubya is taking...

seems to be working for him :spray: Have a great one you all.

[UpInArms]

228. Have a great weekend AnneD!

:hi:

[ozymandius]

223. 2006: The Year of Oil Collapse? (very dire perspective)

-excerpt-

The sheer weight and inertia of American life kept our systems on their feet through 2005, despite a worsening economic climate and some harsh body blows, like the hurricanes that pounded oil and gas production in the Gulf of Mexico. In a way, some perverse law of sociopolitical physics seemed to concentrate all the year's destructive potential in the devastation of New Orleans, Biloxi and other Gulf Coast towns -- while the mighty din of motoring and cheeseburger sales roared on elsewhere without pause from Cape Cod to Catalina.

First, a little background briefing on where we are at -- to use some of the bad grammar now normative in American life -- before I make predictions (i.e., guesses) about the year ahead.

You can only introduce so much perversity into an economic system before distortions cripple it. From 2001 through 2005, consumer spending and residential construction had together accounted for 90 percent of the total growth in GDP, while over two-fifths of all private sector jobs created since 2001 were in housing-related sectors, such as construction, real estate and mortgage brokering. Much of the money spent did not really exist except as credit -- incomes as yet unearned, hallucinated liquidity, wished-for wealth, all based on the expectation that house values would continue to rise at 10 percent to 20 percent a year, forever. It became a reckless racket, all predicated on sustaining an economy that had lost its other means for generating wealth -- foremost its infrastructure for making things besides suburban houses.

-cut-

High gasoline, heating oil and methane gas prices will absolutely kill the housing bubble for reasons I've already outlined. The production home builders will be idle, stuck with huge inventories in places that never should have been suburbanized in the first place. A lot of Americans holding "creative" mortgages -- no money down, interest only, adjustable rate, what-have-you -- will be crushed by the expense of their obligations. Many of them will go bankrupt under new bankruptcy laws that leave no wiggle room for escaping partial repayment. Their houses will flood the real estate markets in an orgy of distress selling. "Greater fools" will snap up these "bargains," failing to realize that many of the logistical liabilities will remain -- namely remote locations and huge heating costs of enormous McHouses -- even if the ownership terms are less hazardous than the previous owner's. At some point in the future, after several flippings perhaps, all those 4,000-square-foot houses 44 miles outside Denver (or Cleveland, or Seattle) will be seen as the mistakes that they are, and their cash value will reflect that.

more...

http://www.alternet.org/story/30640

[mdmc]

225. I love watching the money with other Dems

thanks for the thread...

[savemefromdumbya]

226. Question - how does 2006 compare with early 2001?

[cosmicdot]

230. I can get a general feel for the day by the # of posts here ...

you know, by the time I tune-in ... when it's well over 100, I might think, 'oh, dear, what bad has happened today' ... but, when it's over 200 posts ...

:scared:

the timing of today's White House full-court press publicity stunt is uncanny ... almost as if they knew in advance ... a coincidence? did they pick up something using that enhanced PROMIS software?


"We are in something of a sweet spot for the American economy right now and our job is to keep it there," Snow told WNDB Radio in Orlando, Fla.

"We are delighted the economy is so strong and we are creating so many jobs," Hubbard told another interviewer.

"The outlook of the world today is for the greatest era of commercial expansion in history. The rest of the world will become better customers.” —Herbert Hoover, Speech at San Francisco,
July 27, 1928

[EuroObserver]

234. And now for something not completely different

King content

Big Media invades New Media: Uh huh. G'day folks!

Jan 19th 2006
From The Economist print edition
Don't write off Hollywood and the big media groups just yet

“PAIN is temporary, film is forever.” That hopeful thought, which found its way into the original script of Peter Jackson's recent re-make of “King Kong”, might be seized upon by today's beleaguered entertainment industry. Media companies are suffering intense pain—and it is starting to seem worryingly permanent. In America shares of “old” media firms such as News Corporation, Comcast and other giants of television, film, radio and print, have fallen 25% behind the S&P 500 in the past two years, despite some heroic financial results. Meanwhile, the market value of Google, which made its debut on the stockmarket in 2004, is now equal to the combined worth of Walt Disney, News Corporation and Viacom, three beasts of the old media jungle. One investor, who recently moved two-thirds of his $1 billion fund out of American media and into emerging-market companies, moans that “the market thinks something's going to get them, whether it's piracy, personal video recorders, or Google.”

Desperate to rescue its share price, Viacom broke itself in two on January 3rd. Time Warner, the biggest media group of all, is under attack from Carl Icahn, a corporate predator perfectly adapted to sniff out the weak and vulnerable. The big groups have seen their newspapers and magazines lose readers and advertising to the internet; their music businesses suffer piracy and falling sales; and someone else's video games captivate new generations of consumers. Now come fears about film and TV, the bedrock of their business.
...

By contrast with Yahoo!'s dabbling, old media is now investing in digital media in earnest. It all went terribly wrong before 2000 when bewitched executives squandered money on the internet and Time Warner sold itself to AOL in one of history's worst-ever deals. But now they are back. Rupert Murdoch, chief executive of News Corporation, made a series of acquisitions in 2005 (see article). Disney is supplying two hits, “Desperate Housewives” and “Lost”, using Apple's iTunes download service. Last summer Viacom bought Neopets.com, a virtual-pets site. Old media is well placed to steer its huge offline audiences to its websites.
...

Any media business has two products to sell: its content (to readers and viewers); and its audience (to advertisers). The task for old media is first to protect its advertising revenues by amassing audiences online and, second, to offset their viewers' intolerance of mass-advertising by making them pay more for content—which they are increasingly willing to do. It will not be easy, but then saving the heroine never was.