STOCK MARKET WATCH, Wednesday 3 May

[ozymandius]

Wednesday May 3, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 992 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1959 DAYS
WHERE'S OSAMA BIN-LADEN? 1659 DAYS
DAYS SINCE ENRON COLLAPSE = 1620
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 May 2, 2006

Dow... 11,416.45 +73.16 (+0.64%)
Nasdaq... 2,309.84 +5.05 (+0.22%)
S&P 500... 1,313.21 +8.02 (+0.61%)
Gold future... 667.40 +7.20 (+1.08%)
30-Year Bond 5.20% -0.03 (-0.52%)
10-Yr Bond... 5.11% -0.02 (-0.41%)






GOLD, EURO, YEN, Dollars, Loonie and Silver


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Ike Iossif - WEEKLY CHARTS

SUMMARY

Last week (4-21-06) we said, "We got the rally, and the price pattern points to another 15-20 points of rally in the SP. However, there are a couple of things that we ought to be aware of: the NYSE McClellan Oscillator has yet to turn positive, and the Quantifiers--although they turned positive--they have yet to make it above 15. Usually such combination indicates a rally that is internally weak, and thus, it can be terminated abruptly. Stay long, but with tight stops below last Thursday's lows."

This week the McClellan Oscillators as well as the Quantifiers have turned negative and they are declining. That means in the short-term the path of least resistance is to the downside. However, most indicators are near support, and price itself is not all that far from its support (see table below). Therefore, it is rather likely that the indices will continue lower, but they will bounce from the zone between support and first downside targets.

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

[ozymandius]

2. Today's Reports

10:00 AM Factory Orders Mar
Briefing Forecast 3.8%
Market Expects 3.7%
Prior 0.2%

10:00 AM ISM Services Apr
Briefing Forecast 59.2
Market Expects 59.4
Prior 60.5

10:30 AM Crude Inventories 04/28
Briefing Forecast NA
Market Expects NA
Prior -226K

[UpInArms]

50. March Factory Orders:

10:00 AM ET 5/3/06 U.S. FEB. FACTORY ORDERS REVISED UP TO 0.4% VS. 0.2%

10:00 AM ET 5/3/06 U.S. MARCH CORE CAPITAL EQUIPMENT ORDERS REVISED UP 3.9%

10:00 AM ET 5/3/06 U.S. MARCH NONDURABLE GOODS ORDERS UP 1.5% ON OIL

10:00 AM ET 5/3/06 U.S. MARCH DURABLE GOODS ORDERS REVISED 6.5% VS. 6.1%

10:00 AM ET 5/3/06 U.S. MARCH FACTORY INVENTORIES UP 0.7%

10:00 AM ET 5/3/06 U.S. MARCH FACTORY SHIPMENTS UP 0.8%

10:00 AM ET 5/3/06 U.S. MARCH FACTORY ORDERS RISE 4.2% VS. 3.7% EXPECTED

[UpInArms]

51. U.S. March factory orders up 4.2%

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B596D2103%2D909D%2D43BF%2DA3D0%2D0F67E448E905%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - New orders for U.S.-made factory goods increased 4.2% in March, led by strong demand for airplanes, machinery, electronics and petroleum, the Commerce Department reported Wednesday. It was the largest gain in factory orders in 10 months and follows a revised 0.4% gain in February. Economists tch were looking for a strong gain of about 3.7%. Orders for durable goods were revised higher to a 6.5% increase from 6.1% earlier on broad-based gains across sectors. Orders for nondurable goods increased 1.5%, but much of the improvement reflected higher prices for petroleum. Shipments of factory goods increased 0.8%.

The war machine rolls on with the taxpayer funded debt.

[Ghost Dog]

53. Yup. You're looking at a war machine economy n/t.

[leftyladyfrommo]

71. Is that what this really is?

Things just don't seem all that peachy from where I sit - and still the market is going up. I don't get it.

[Ghost Dog]

73. I think that's what I'm seeing, Ma'am,

(after some six months paying attention here).

But I defer to the more experienced on ths board to further comment?

[UpInArms]

77. here's an example: Oshkosh profit grows from Iraq war

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid=%7B7D3CBC02-9A60-4BD8-9732-5942519D153E%7D&keyword=

NEW YORK (MarketWatch) -- Oshkosh Truck Corp. said Tuesday its second-quarter net income rose 30% on sales to support the ongoing war in Iraq and demand for fire trucks from the heavy-duty vehicle manufacturer.

Oshkosh Truck (OSK55.39, +0.45, +0.8% ) said net income rose to $49.8 million, or 67 cents a share, from $38.2 million, from 52 cents a share in the year-ago period.

Analysts polled by Thomson First Call forecast earnings, on average, of 65 cents a share and the vehicle maker, of Oshkosh, Wis., had forecast earnings of 58 cents to 62 cents a share.

Sales rose more than 25% in the three months ended March 31 to $844.8 million from $672.4 million.

Oshkosh's defense segment reported a near doubling of truck sales arising from the war in Iraq, especially heavy-payload remanufactured trucks for the Pentagon. Total revenue in that unit rose 59% to $334.2 million.

...more...

[Ghost Dog]

88. This also from yesterday (tho more 'service' than 'manufacturing')

More Killing: DynCorp going public on Iraq, Afghanistan police contracts

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BA321BECC%2D83FF%2D48CA%2DAB76%2D62369AC400B0%7D&symbol=

NEW YORK (MarketWatch) -- DynCorp International plans to raise $400 million as the richest initial public on deck this week amid growth in its business of supplying police officers in Afghanistan and Iraq.

DynCorp International (DCP 0.00, 0.00, 0.0% ) expects to price 25 million shares at $15-$17 a share on Wednesday night for its stock market debut Thursday with underwriters Credit Suisse and Goldman Sachs.

Elsewhere on the new issues front, the New York Stock Exchange (NYX 64.37, +0.62, +1.0% ) will offer about $2 billion in a secondary offering.

<snip>

The Irving, Texas company cited an increase in the number of police liaison officers deployed in Iraq and Afghanistan as well as international narcotics and law enforcement air-wing programs related to drug eradication in Afghanistan and the addition of the Nigeria airport construction project.

...more...

Merchants of Death :mad: :puke:

Thanks to UpInArms

[saigon68]

112. Mercenary Killers

[UpInArms]

82. here's a google search result for "pentagon contract"

that illustrates the point, also.

http://news.google.com/news?sourceid=opera&num=0&ie=UTF-8&oe=utf-8&scoring=d&q=%22pentagon+contract%22&btnG=Search+News

[UpInArms]

52. ISM Services Report: (check out prices and inventories)

10:03 AM ET 5/3/06 U.S. APRIL ISM SERVICES PRICES 70.5% VS 60.5% IN MARCH

10:02 AM ET 5/3/06 U.S. APRIL ISM SERVICES NEW ORDERS 64.6% VS 59.5% IN MARCH

10:02 AM ET 5/3/06 U.S. APRIL ISM SERVICES INVENTORIES 59.0% VS 54.0% IN MARCH

10:00 AM ET 5/3/06 U.S. APRIL ISM SERVICES ABOVE CONSENSUS 59.6%

10:00 AM ET 5/3/06 U.S. APRIL ISM SERVICES 63.0% VS 60.5% IN MARCH

[UpInArms]

55. ISM Report: Inflation pressures increased

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B937984CD%2D8DD3%2D488D%2DBA9F%2D182427784AAF%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- Nonmanufacturing sectors of the U.S. economy expanded at a faster pace during April, the Institute for Supply Management reported Wednesday. The ISM nonmanufacturing index rose to 63.0% from 60.5% in March. The increase was unexpected. Economists were looking the index to slip to 59.6%. New orders jumped to 64.6% from 59.5%. The employment index rose to 56.5% from 54.6%. Inflation pressures increased. The price index soared to 70.5% from 60.5% in the previous month.

[UpInArms]

62. DOE Petroleum Inventories Report:

10:30 AM ET 5/3/06 U.S. CRUDE SUPPLY UP 1.7 MLN BRLS LAST WK: ENERGY DEPT

10:30 AM ET 5/3/06 U.S. DISTILLATE SUPPLY DOWN 1.1 MLN BRLS: ENERGY DEPT

10:30 AM ET 5/3/06 U.S. GASOLINE SUPPLY UP 2.1 MLN BRLS: ENERGY DEPT

10:30 AM ET 5/3/06 U.S. GASOLINE SUPPLY CLIMB FOR FIRST TIME IN NINE WEEKS

[UpInArms]

72. API Petroleum Inventories Report:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B81E51BD8%2D67B8%2D496A%2D96D8%2D8851897FED23%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute said crude inventories rose 2 million barrels for the week ended April 28. The API also said motor gasoline inventories were up 4 million barrels. That's almost double the Energy Department's reported 2.1 million-barrel increase for the fuel. Distillate stocks fell 1.3 barrels, the API said.

[Robbien]

123. Commodity trader says "It could be a very long summer"

The climb in gasoline supply is likely due to "to refineries getting rid of their wintertime supply of blended gas (winter-grade gasoline) and making way for the summer gasoline grade," said commodities trader Kevin Kerr.

"This build is likely the last one we will see in gasoline for a long, long time," he said. "This is giving the market a decent breather, but it will be short lived."

"The ethanol specifications will continue to hamper gasoline supplies," he said, referring to certain fuel requirements that have come into effect this month. And with "hurricane season with three refineries already down -- it could be a very long summer."

http://www.investors.com/breakingnews.asp?journalid=37260236&brk=1

[ozymandius]

3. Oil marches toward $75 as Iran tension heats up

SINGAPORE (Reuters) - Oil rose to almost $75 a barrel on Wednesday, near record highs as mounting tension over Iran's nuclear plan compounded worries of global supply disruptions amid forecast of falling fuel stocks in the United States.

U.S. light, sweet crude gained 15 cents at $74.76 a barrel by 0716 GMT, extending a rally for a fourth successive day after a jump of 91 cents on Tuesday. Prices were within striking distance of their all-time peak of $75.35 a barrel hit on April 24.

-cut-

Prices have soared nearly $5 over the past four days, amid a fresh surge of fund investment that has also lifted gold to a 25-year high on a weak dollar, and platinum to a record. The current strong global oil prices are described as unsustainably high by Asian Development Bank President Haruhiko Kuroda.

Dealers will focus later in the day on U.S. weekly fuel inventory data expected to show a ninth-successive decline , but it was Iran that dominated the market.

more

[ozymandius]

4. Historic record for OPEC basket price at 68.4 dollars per barrel

VIENNA (AFP) - OPEC's daily "basket" price, based on crude prices from the cartel's 11 member countries, has hit a historic high point of 68.4 dollars (54.3 euros) per barrel, OPEC data showed.

The Organization of Petroleum Exporting Countries released prices for its basket value on Tuesday, up 1.03 dollars from the previous record of 67.37 dollars that was reached on April 24.

The OPEC basket traditionally gives a value below other key oil prices, such as London Brent crude.

more

[ozymandius]

5. $100 gas rebate "insulting," Boehner says

WASHINGTON (Reuters) - A Senate Republican proposal to offer a $100 check to taxpayers to offset high gas prices is "insulting," House Majority Leader John Boehner said on Tuesday.

"The really insulting part of this whole proposal is the fact that somebody is offering $100 to every American family over this. This is not going to solve the problem," Boehner said at a press conference.

"I don't like the proposal. And over the weekend I heard back from my constituents. They thought it was stupid," said Boehner, an Ohio Republican.

A separate Senate Republican proposal would suspend a federal retail tax on gasoline sales on a temporary basis.

more

[AnneD]

39. Morning Marketeers,

:donut: and lurkers. Seems like I wasn't the only one that was insulted by the GOP 'Energy Plan'. Still think I'll send that letter. I may gussy it up a tad for Kay-but I think I'll send it word for word to Cornyn.

There was once a time Marketeers, when I was not an Economics junkie. Unbelievable I know but true. When I would ask a question about economics, I would be given an answer that would make the responder feel and think they were clever and me feel stupid. I did not ride the short bus to school so I can comprehend things. I can hold my own with theoretical physicists so math is not a problem. I have worked in business and when I ran a small business-I always ran at a profit so I have some business sense. So what turned me from just a business section headline reader to an Economics junkie and avid student-Louis Rukeyser's Wall Street Week in Review. He was witty and sometimes a bit full of himself, but he could explain things well and made economics interesting. Thank you Louis, at tip of the glass to you for starting me down this road. Your puns and wittiness will be sorely misses:toast:

Happy hunting and watch out for the bears.

[Ghost Dog]

56. This one's for you, then, AnneD:

(Editorial in yesterday's Guardian on J.K. Galbraith (emphasis added))
In praise of ... JK Galbraith
http://www.guardian.co.uk/commentisfree/story/0,,1765347,00.html
Leader
Tuesday May 2, 2006
The Guardian

In this column a month ago the new Italian premier Romano Prodi was described "as uninspiring as only an economics professor can be." Readers may have taken this to imply that economics professors were, ex officio, boring. That this is not so was overwhelmingly and energetically demonstrated until his death on Saturday at the age of 97 by the continuing presence of John Kenneth Galbraith, professor of economics at Harvard for more than 25 years and emeritus professor thereafter.

Not that Professor Galbraith exonerated his calling. "Economics," he wrote "is a subject profoundly conducive to cliche, resonant with boredom." Yet Galbraith was the living refutation of that. Consistently in his lectures and writings he put great themes into the language, themes which lit up the study of economics for those who had never been taught it. The most compelling of these, which even a cursory daily look displays, was the co-existence of private affluence with public squalor.

A second, no less abundantly evident in this age of "must have", was the manufacture by producers of desires which consumers then dutifully come to believe are real needs. A third was the convenient view, so entrenched in the 1980s, that while the rich ought to be given more to make them work harder, giving more to the worst-off would only make them work less. Hypocrisy will sleep more sweetly tonight for the knowledge that Galbraith is no longer around to look down from his very great height and skewer it.

[AnneD]

96. While Louis got my attention...

it was reading JK Galbraith that allowed me to view the economy as more that the heatless capitalist model and the souless communistic model. There is a better way to manage the economy so that it benefits all and allows for enterprise and growth.
Just as communism failed, capitalism is failing now. We will need another way and JKG was on to something.

[Ghost Dog]

110. Heartless capitalist; souless communist.

Many thanks for that food for thought (and for the heart/soul), AnneD.

[AnneD]

124. Some times....

I have deep thoughts, sometimes they thought I went off the deep end.

There is so much junk food for thought out there (What will Britney do? etc). It may satisfy a craving in a pinch, but nothing is more satisfying that real food for thought followed by honest debate for desert and some solid action to keep one in shape.

[ozymandius]

6. Administration Has No Magic Gas Price Fix

WASHINGTON - President Bush's new chief of staff said Sunday that the White House plan to address high gasoline prices will have only a modest impact and the ultimate goal must to be reducing dependence on foreign oil.

"This is a very large problem," Josh Bolten said on "Fox News Sunday" in his first interview since taking over April 14 as Bush's top aide. "It's built up over many years — decades, in fact. It's not going to be solved in the short run by some silver bullet."

Administration officials, on the Sunday talk shows, drove home the importance of reducing U.S. consumption of foreign oil. Secretary of State Condoleezza Rice called it a "trap" and Energy Secretary Samuel Bodman acknowledged that rising gas prices had become a crisis. But he suggested that finding short-term fixes to soothe consumers angered by pump prices topping $3 per gallon might be difficult.

"The suppliers have lost control of the market. Demand exceeds supply," Bodman said, citing demand worldwide from China, Indian and other growing economies. "Clearly, we're going to have a number of years — two to three years — before suppliers are in a position to meet the needs of demands."

more

[UpInArms]

25. Great Commentary: When will gas hit 5 bucks?

http://www.chillicothegazette.com/apps/pbcs.dll/article?AID=/20060503/OPINION/605030317/1014

Now that the lawmakers in Washington are starting to demand the White House do something about the price of gasoline, and based on the track record of the Bush administration, what should we ordinary Americans do?

I know! Let's have a contest!

<snip>

As to the contest itself. Now that the problem of gas prices has been dumped into the president's lap for solution and, based on his past actions, the contest will be to determine the exact date in the future when the price of a gallon of unleaded, self-serve gasoline hits $5. That's $5 in good old United States dollars. None of this Canadian flim-flammery, or Bahamian dollars or any of that stuff.

<snip>

Let's see. The president tried to "fix" Social Security and got about as far as the distance between your index and middle fingers ... at the base. Next, he went after Iraq because he believed Vice President Dick Cheney and Secretary of Defense Donald Rumsfeld and not the CIA, the latter telling him there were no nuclear boom-booms in Iraq. Then, he must have misinterpreted the Constitution and ordered the National Security Agency to listen in on Americans' telephone calls, followed by his OK for leaking secure information, because when he says "leak it," that means the subject is declassified.

The president took command when a big storm hit New Orleans and Lake Pontchartrain slopped over into the 9th Ward, and you know how well that was handled. His first appointment to the Supreme Court was his White House lawyer, and that was a bright and shining moment for the country. His No. 2 man's No. 1 man tattled to The New York Timesand got indicted (see above re: "secure information")

There's plenty mire, as I am sure you know, and if I have left out your favorite example of the president's brilliant handling of the little problems that cropped up during his term in office, I apologize. Add your thoughts on the margin of this page before you send it to Aunt Minnie in North Dakota, where they are going to get the Internet any day now.

...more...

[UpInArms]

29. GOPpiggies still in bed with Big Oil: Sympathy as Hard to Find as Oil

http://www.nytimes.com/2006/05/03/business/media/03oil.html?ex=1304308800&en=3040f52770a4b459&ei=5088&partner=rssnyt&emc=rss

WASHINGTON, May 2 — Just last November, Senate Republican leaders extended an unusual privilege to five of the nation's top oil executives. To prevent what might seem like a "perp walk," the officials entered a Senate hearing room outside the whirl of television and press photographers, who had been briefly shooed away from the site.

Moreover, the officials were not required to take an oath, avoiding the infamous imagery created when tobacco company executives lined up, right hands in the air, and then proceeded to uniformly declare before a Senate panel that cigarettes were not addictive.

<snip>

The industry can already claim an early success, with big-business interests quickly persuading the Senate leadership to drop a provision that would have increased taxes on inventories not just of oil companies but of other industries as well. But that was just the opening skirmish in what the energy companies now see as a long bruising battle ahead.

<snip>

For its part, the petroleum institute has brought on Blue Worldwide, the advertising arm of Edelman Public Relations and the Hawthorn Group. As oil industry profits soared, it started a campaign of full-page newspaper ads, arranged for dozens of op-ed articles, and produced television and radio commercials in an effort to explain why gas prices have risen so much.

The campaign has cost the institute more than $20 million over the last several months, though this is minuscule when set against the profits most oil companies have been making. Even BP, the only major to report a drop in earnings for the quarter, still had net income of more than $5 billion. Chevron said profit rose 49 percent in the quarter.

<snip>

Both industry officials and Congress recognize the potency of gas prices as a lever at the polls. The oil industry is a powerful campaign donor, with more than $1 million being donated to federal candidates in 2005 and the first three months of this year by the top 10 oil industry political action committees, largely to Republicans, according to the PoliticalMoneyLine, an online Web site that compiles finance data.

...more...

[AnneD]

42. UIA....

You know WHY the GOP is in bed with big oil-takes a lot of lubricant to deal with the American public (I know, variation on a theme but I can't resist-but I did clean it up a bit).

[UpInArms]

58. June Crude @ $74.50 bbl - June NatGas @ $6.665 mln btus

10:12 AM ET 5/3/06 JUNE CRUDE FALLS 11C TO $74.50/BRL AHEAD OF SUPPLY DATA

10:12 AM ET 5/3/06 JUNE NATURAL GAS FALLS 8.1C, OR 1.2%, TO $6.665/MLN BTUS

[ozymandius]

7. CNBC report seen denting Bernanke's credibility

WASHINGTON (Reuters) - Fledgling Federal Reserve Chairman Ben Bernanke may need to work to rebuild his credibility after off-the-cuff remarks over the weekend made it onto the airwaves on Monday, roiling financial markets.

CNBC anchor Maria Bartiromo waited until late afternoon Monday to report that Bernanke had told her at a journalists' dinner on Saturday that traders had misread his congressional testimony last week.

"Federal Reserve Chairman Bernanke told me over the weekend that the media and the markets basically got it wrong last week in speculating that the Fed is done raising interest rates," she said moments before a live interview with Chicago Fed President Michael Moskow on Monday.

"Bernanke also told me it is worrisome to him that anyone would think of him as dovish, though that feeling did permeate last week," she added.

more

[UpInArms]

12. more from Reuters: CNBC report seen denting Bernanke's credibility

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-05-02T222018Z_01_N02314461_RTRIDST_0_ECONOMY-BERNANKE-UPDATE-1.XML

excerpt:

While some did not see the comments as markedly different from his remarks on Capitol Hill, other market participants were dumbstruck that the head of the world's mightiest central bank would seemingly try to tweak his message with a brief aside at a social event, and cast it as a rookie mistake.

"First of all, the idea that the chairman of the U.S. Federal Reserve is disseminating policy via network reporters at off-hours dinner parties is absurd," said Steen Jakobsen, chief investment officer at Saxo Bank in Copenhagen.

"Frankly, I think it hurts the Fed ... and Bernanke has lost serious credibility," he added.

...more...

[acmejack]

8. How bad will the bloodletting be today?

The dollar is getting battered, I know I shall never retire. I watch the gold in my video cards appreciate madly, wow! Locking gas caps are the order of the day...

[Tace]

9. MOGAMBO GURU: 'It's like shooting fish in a barrel!'

Richard Daughty, the angriest guy in economics -- World News Trust

snip

Those who majored in Mogambo Economic Studies in colleges and universities know that any massive, sustained increase, or decrease, of Total Fed Credit is the very thing that consumes whole days in the life of The Mogambo, alternately crying in crybaby fear and screaming in stark, raving horror, like I did when Linda Blair's character in the movie The Exorcist sat up, spun her head completely around in a full circle, and then mockingly asked, with a hideous grin on her horrible green face, "How do you like your little girl, now?" Gaaah! Gaaah!

The reason that I bring this terrifying thing up is that I am trying to be real clever and make the current economic situation analogous to this memorable Linda Blair scene. Except that this is real life, and the head that is being twisted around by the Federal Reserve is America's. And instead of hearing Ms. Blair saying her immortal, blood-chilling line, all you hear is cartilage snapping and bones breaking, and then the head pops off.

And as the severed head lays there on the ground, the camera pans in for a close up, and you note with horror that the head is still alive! Its mouth is saying, "Damn! That hurts!" Panning in for a closer shot, the talking head goes on to say, "And what hurts even more is that the loudmouth idiot Mogambo was right! We're freaking doomed!" The eyes in the head start to glaze, and yet with a Herculean effort the severed head startlingly continues, "Beware! Beware of a massive and massively expensive government, paid for by debt, financed by the Federal Reserve and the banks creating all that new credit so that someone could borrow it and use the money to buy government bonds, stocks and houses, and leveraging to borrow every scrap of equity that ever appeared in anything, including houses, stocks, bonds, receivables and God knows what all. And then, the drying, dying lips were barely moving now, "it was all securitized and sold back to us; we hold our own debt!"

With a final, dying exhalation of breath, the eyes closed and the lips stopped moving. America was dead. Next, a dog walked up, lifted its leg, and peed on the lifeless head, which was both a nice touch of comic relief and highly symbolic, given the subject matter.

more

http://worldnewstrust.org/modules/AMS/article.php?storyid=3416

[OrangeCountyDemocrat]

120. Bad Link To Mogambo nt

[OrangeCountyDemocrat]

121. Apparently Whole Site Is FUBAR At The Moment nt

[skids]

133. NIRCRBNEM lol.

We should have a graph for that "statistic" :rofl:

Alert reader Jared F. has developed a new economic indicator that he calls "Number of Items Returned at Cash Register Because of Not Enough Money (NIRCRBNEM)." He says that while in the grocery store, "I have been noticing this former check-out girl putting items back on the shelf from nearly full baskets. I asked her if there were more of these items being returned and she said most definitely, that before it was a part time job to put the items back, but now they have someone doing it full time, with some additional part time help when it gets busy. I asked if this was a seasonal thing and she said that it had never happened before, as near as the managers can recollect, and it had them worried."

(I shouldn't laugh I know.)

[OrangeCountyDemocrat]

10. Gold Starts Day Up Again

Gold Hits 25 Year High On Wednesday In London

Spot gold rose as high as $676.25 an ounce, the highest since October 1980, before easing to $674.70/675.70 by 0958 GMT, against $666.20/667.20 late in New York on Tuesday. The metal's all-time high was $850 in early 1980.

Gold has gained around 30 percent this year as investors diversified into precious metals on global tensions, firm oil prices and uncertainty over the dollar's outlook.

Oil rose to almost $75 a barrel, within sight of record highs, as mounting tension over Iran's nuclear plan compounded worries of global supply disruptions.

more...

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2006-05-03T101518Z_01_L03459881_RTRUKOC_0_US-MARKETS-PRECIOUS.xml

A metals board I occasionally look at, has people predicting that something strange is brewing, and that Gold will easily hit $700 by week's end. Others are saying it's a fete complete(sp?) of $1,000 Gold in a matter of months, if not weeks.

[UpInArms]

23. Gold futures hit new 25-year high (the gold "cartel" is imploding)

http://www.marketwatch.com/News/Story/Metals+Stocks?siteid=mktw&dist=morenews

NEW YORK (MarketWatch) -- Gold futures hit a new 25-year high on Wednesday with dollar weakness, oil strength and ongoing concerns about the U.S. and Iran boosting the metal.

June-dated gold futures rose as high as $679 an ounce in early electronic trade.

The contract was perched just below that, up $9.10 to $676.50 at last check.

<snip>

Peter Grandich, editor of The Grandich Letter, said gold is also gaining as speculators, who had expected a correction from its current lofty levels, rush to cover short positions.

"The least talked about reason for gold's dramatic rise is the past shorting and manipulation of it by a group or groups who have been desperately trying to cover," he said. "The gold "cartel" is imploding as we speak."

...more...

[54anickel]

57. Not enough "weak" hands to shake loose anymore?

Seem whenever there's a "correction" these days there are plenty of takers waiting at the window - matters not what the gold equities are doing anymore. It will be interesting to see what happens this next time around - I'm betting this guy is wrong in calling for a large, long correction in gold.

Gold Is Getting Overbought
http://www.kitco.com/ind/swanson/may032006.html

Today I browsed half a dozen of the largest financial websites on the internet. Almost every single one of them had an article about the gold bull market. At the end of the day, on Fox News, I continued to shake my head as I saw Tobin Smith make bullish comments about gold stocks. A year ago, in case you don't remember, he was laughing at them.

If you've been a member for a while you've certainly heard me mention that this many people making bullish comments about a market (gold or whatever) must be a sign that the top is near.

But here's the difference. Last year, we were in phase one of the gold bull market. Now we seem to be in phase two and in phase two people can be bullish and the market can continue higher. We certainly seemed to be going higher now. The dollar is showing signs of re-entering its bear market, which will provide a further catalyst for gold purchases, while worries about Iran, inflation, and higher oil prices are also putting a prop underneath the market.

snip>

For the past week, the XAU gold stock index has been lagging the metal. While gold has rallied like mad, gold stocks have barely followed suit. This is the type of setup in the past that has led to intermediate-term corrections lasting several months. Indeed this type of action led me to sell most of my gold stocks back in December. But things turned out to be different back then to clue us in that we are now in a stage two bull market.

Over the next few weeks I expect the metal to pullback and provide an entry point in the gold stocks. We have two recent pullbacks that can provide a model for what might happen. Back in December, the XAU lagged gold as gold blasted higher and made what appeared to be a parabolic top at the time. That action accurately warned that a correction loomed. And it came, with gold falling almost 90 points and back below 500. However, gold stocks held up during that drop and gold snapped back and rallied into the end of the year.

more...

[Ghost Dog]

40. Fait accompli

(Literal translation: Fact (Note: Fact, not "Mission") Accomplished - or if you prefer: something that has happened and is unlikely to be reversed).

Worth using this source for such French words/phrases frequently employed in English:

http://en.wikipedia.org/wiki/French_phrases_used_by_English_speakers

:hi:

[OrangeCountyDemocrat]

97. Thanks! nt

[UpInArms]

46. June Gold @ $674.20 oz - July Silver @ $14.28 oz - July Copper @ $3.247 lb

9:47 AM ET 5/3/06 GOLD FUTURES RISE TO A NEARLY 26-YR HIGH OF $679.80/OZ IN NY

9:47 AM ET 5/3/06 JUNE GOLD UP $6.80, OR 1%, AT $674.20/OZ

9:47 AM ET 5/3/06 JULY SILVER CLIMBS 7C TO $14.28/OZ AFTER $14.42 HIGH

9:47 AM ET 5/3/06 JULY COPPER FALLS 2.95C, OR 0.9%, TO $3.247/LB

[54anickel]

68. WTF? Gold reserve halted this morning?

This link is on Kitco

http://new.stockwatch.com/swnet/newsit/newsit_newsit.aspx?bid=B-553155-C:GRZ&symbol=GRZ&news_region=C

[UpInArms]

74. maybe this?

http://www.ccnmatthews.com/news/releases/show.jsp?action=showRelease&searchText=false&showText=all&actionFor=592609

Gold Reserve Inc. Announces Cdn$30 Million Offering

TORONTO, ONTARIO--(CCNMatthews - May 3, 2006) - Gold Reserve Inc. (TSX:GRZ)(AMEX:GRZ) announced today that it has entered into an underwriting agreement with a syndicate of underwriters comprised of Sprott Securities Inc. and RBC Capital Markets and their affiliates in the U.S., as co-leads, pursuant to which the underwriters have agreed to purchase 3,335,000 Class A common shares of Gold Reserve at a price of Cdn.$9.00 per share, representing aggregate gross proceeds to Gold Reserve of Cdn.$30,015,000. The closing of the offering is expected to occur on or about May 15, 2006.

The net proceeds from the offering will be used primarily to fund ongoing development of the Brisas Project, to fund the Company's initial obligations under the Engineering Procurement and Construction Management contracts with SNC-Lavalin Engineers & Constructors, Inc., and, to a lesser extent to fund ongoing exploration of the Choco 5 project.

Gold Reserve has also agreed to grant the underwriters an over-allotment option, exercisable at any time, in whole or in part, for a period of 30 days following the closing of the offering, to purchase up to an additional 500,250 shares at a price of Cdn.$9.00 per share. If the underwriters fully exercise the over-allotment option, Gold Reserve will receive additional gross proceeds of approximately Cdn.$4,500,000.

A preliminary short form prospectus relating to these securities has been filed with each of the provincial securities regulatory authorities in Canada, except Quebec, and a registration statement under the U.S.-Canada multi-jurisdictional disclosure system has been filed with the U.S. Securities and Exchange Commission, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or province in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or province. No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date.

...more...

[54anickel]

78. Cripes, quite the disclaimer on "forward looking statements". That

United States Private Securities Litigation Reform Act of 1995 mentioned in the disclaimer is pretty interesting....

http://en.wikipedia.org/wiki/Private_Securities_Litigation_Reform_Act

The PSLRA imposes new rules on securities class action lawsuits. It allows judges to decide the most adequate plaintiff in class actions. It mandates full disclosure to investors of proposed settlements, including the amount of attorneys' fees. It bars bonus payments to favored plaintiffs, and permits judges to scrutinize lawyer conflicts of interest.

The PSLRA was enacted into law by the U.S. Congress over a veto by President Bill Clinton. The U.S. House of Representatives approved the bill by a 319-100 margin, and the U.S. Senate approved it 68-30. Every Republican in the House voted in favor of the legislation, and only four Republicans in the Senate voted against it: William Cohen, John McCain, Richard Shelby, and Arlen Specter. Prominent liberals in the Democratic Party like senators Tom Harkin, Ted Kennedy, Clairborne Pell, and Carol Moseley Braun voted in favor of the legislation while many conservative-to-moderate Democrats such as senators John Breaux, Robert Byrd, Fritz Hollings, and Sam Nunn and represenatives such as John Murtha and Gene Taylor voted against it. Both the current Senate minority leader, Harry Reid, and the current House minority leader, Nancy Pelosi, voted for the bill. This event was one of two times during Bill Clinton's entire two terms in office that Congress successfully overrode one of his 37 presidential vetoes to enact a bill into law.

The PSLRA was originally developed as part of Newt Gingrich's Contract With America. Its principal author in the House was Representative Chris Cox. Senators Chris Dodd and Pete Domenici sponsored the legislation in the Senate.

Plaintiffs' lawyers attempted to get around the tort reform by filing securities cases in state courts. Congress responded by passing the Securities Litigation Uniform Standards Act, which gave federal courts exclusive jurisdiction over certain types of securities cases.

I take it gold mining falls under those "certain types", or is it because the mine is located in a once corrupt country? :shrug:

Retrieved from "http://en.wikipedia.org/wiki/Private_Securities_Litigation_Reform_Act"

[Ghost Dog]

76. $675/oz. in London trading rang alarm bells somewhere...

WTF indeed. Hang on to hats.

[UpInArms]

90. June Gold @ $671 oz (bounces back)

11:25 AM ET 5/3/06 JUNE GOLD UP $3.60 AT $671/OZ AFTER TRADING AS LOW AS $660

[UpInArms]

114. June Gold closes @ $668.50 - July Silver @ $13.795 - July Copper @ $3.305

1:44 PM ET 5/3/06 GOLD FUTURES CLOSE AT A NEARLY 26-YR HIGH

1:44 PM ET 5/3/06 JUNE GOLD UP $1.10 TO CLOSE AT $668.50/OZ AFTER $679.80 HIGH

1:44 PM ET 5/3/06 JULY SILVER DROPS 41.5C, OR 2.9%, TO END AT $13.795/OZ

1:44 PM ET 5/3/06 JULY COPPER CLIMBS 2.85C, OR 0.9% TO END AT $3.305/LB

[UpInArms]

11. daily dollar watch

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

Last trade 85.79 Change +0.13 (+0.15%)

Dollar Resumes Slide as Geopolitical Tensions Escalate

http://www.dailyfx.com/story/dailyfx_reports/daily_brief/Dollar_Resumes_Slide_as_Geopolitical_1146605406717.html

The recovery that we saw yesterday in the US dollar lasted for no longer than 24 hours before the market started to pound the dollar once again. The greenback sold off against all of the major currency pairs on little news. The only piece of economic data released today was pending home sales and vehicle sales, neither of which is very market moving. Pending home sales fell 1.2 percent which comes in contrast to the stronger existing and new home sales reported last month. Meanwhile there was more murmuring about Bernanke’s recent comments. It seems that we are dealing with clarification over clarification as the market tries to get its hands around the first major comments from the new Federal Reserve Chairman. According to reports, Bernanke’s comments may not have been official comments. Instead, Maria Bartiromo of CNBC said that these were comments made to her by the Fed Chairman at a White House Correspondent Dinner over the weekend. She added that when asked if the markets misunderstood him last week when he signaled that the Fed could pause their rate hikes, he said that he found it worrisome that anyone would consider him dovish. At this point, it all seems like hearsay, which makes tomorrow’s speech by Bernanke an important event to tune into. The one thing that we do know is that even if the Bernanke was not extremely dovish, the Fed is still near the end of their tightening cycle while the pressures on the US dollar continue to grow. With Iran defying the UN and threatening to hurt Israel if the US attacks them, oil prices are on the rise again. The President of Iran has already said that Russia and China, both of whom hold veto powers at the UN have vowed that they would not back any punitive measures on Iran. Tensions are escalating with no clear resolution in sight and unfortunately the greater risk is for further escalation over a peaceful resolution.

...more...

Commodity Currencies Obliterate US Dollar

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/Commodity_Currencies_Obliterate_US_Dollar_1146651516439.html

EUR/USD – EUR/USD held above the previous day’s low yesterday and again closed above 1.2600, further emphasizing the extent of dollar bearishness. However, the pair does remain contained by the 50% fibo of 1.3668-1.1642 at 1.2654. A break above targets the high from Monday at 1.2688 after which the 4/14/2005 low of 1.2767 is exposed. Long term prospects are bullish as evidenced by new 2006 highs, sustained breaks of trendlines, and shorter moving averages trading above longer moving averages (10 > 20 > 50 > 100 > 200). The bullish bias is intact unless the 4/6 high of 1.2331 is breached.

<snip>

USD/JPY – USD/JPY continues trading sub 114.00 but intraday charts such as hourly and dealer continue to show positive divergence with oscillators and give scope to a corrective move. Also, a positive stochastic cross with fast stochastic rising above the slow one on the daily suggests strength going forward. Resistance comes in at the 5/2 high of 114.00 with a break above targeting the 38.2% fibo of 118.82-112.34 at 114.80. Although the pair has recently bounced off of the lower Bollinger band on the daily, the strength of the downtrend should be respected so any short term bullishness warrants caution. A break below the 112.33 low targets the 8/31/05 high at 111.78.

<snip>

USD/CAD – The freight train known as the Canadian Dollar continues to rally. The pair has hardly even stalled as supports such as the November 1991 low of 1.1189 and the 138.2% fibo of 1.1297-1.1771 at 1.1116. The 161.8% fibo of the 1.1297-1.1771 March bull wave comes in at 1.1005 and is the next estimate for support A bounce higher off of the lower Bollinger band on the daily targets the Tokyo high of 1.1082 followed by yesterday’s high of 1.1166.

...more...

[UpInArms]

20. Dollar mixed against rivals ahead of Bernanke (credibility lost)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD9B4597A%2D64CB%2D4C3A%2DB371%2D8EF481873E0F%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - The dollar was little changed against major rivals early Wednesday, with investors eagerly awaiting Federal Reserve Chairman Ben Bernanke's speech later in the session for any hints about the Fed's leanings on future interest-rate increases. "Bernanke might want to, in order to clear up the apparent misunderstanding of his testimony last week, but even this only gave the dollar some temporary support and we suspect that it won't be any different today if Bernanke were to make the same sorts of comments," said Steve Barrow, chief currency strategist at Bear Stearns, in a note. The euro was up 0.1% at $1.2625, while the dollar was up 0.2% at 113.46 yen.

[Ghost Dog]

70. FYI: What is the US Dollar Index®?

Definition
The U.S. dollar index is a trade-weighted index of the values of six foreign currencies. At the moment, the index consists of euros (EUR), Japanese yen (JPY), British pounds (GBP), Canadian dollars (CAD), Swedish kronas (SEK) and Swiss francs (CHF).

According to this source the formula employed is:
USDX = 50.14348112 × EURUSD-0.576 × USDJPY0.136 × GBPUSD-0.119 × USDCAD0.091 × USDSEK0.042 × USDCHF0.036

Here's a 20-year chart from http://investmenttools.com/futures/forex/welcome_the_us_dollar__page__dollar_point___figure_chart__dollar_futures_.htm :



Basket case.

[UpInArms]

107. buck continues to drop - credibility lost?

Last trade 85.64 Change -0.02 (-0.02%)

Settle Time 15:00 Open 85.66

Previous Close 85.66 High 86.03

Low 85.50 2006-05-03 12:09:53, 30 min delay

[UpInArms]

127. Dollar still too strong, say manufacturers

Just another poke in the eye to the rest of us :eyes:

http://news.yahoo.com/s/nm/20060503/bs_nm/economy_manufacturers_dollar_dc;_ylt=AnILXpcCMFv3YZQJhIBgxJ.yBhIF;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

WASHINGTON (Reuters) - A leading U.S. manufacturers' group said on Wednesday the dollar is still overvalued by nearly 10 percent and that even a fall of that magnitude would not be enough to bring global trade back into balance.

"The last time we had a normal value of the dollar was in January of 1997,"
National Association of Manufacturers President John Engler said in a statement.

The industry lobby group said the dollar (^DXY - news) has dropped 13 percent since its peak in February 2002.

"A further decline in the dollar is not a negative sign for the U.S. economy. In fact, with a correctly valued dollar, we should see a pickup in our exports, resulting in the growth of profits and jobs for U.S. producers," Engler said.

The group has been pressing for action on the Chinese yuan currency, which is kept under tight rein by Beijing and which U.S. exporters say gives Chinese competitors an unfair edge in global trade.

Faced with record trade deficits in the United States that could pose an economic threat if they correct too fast, finance officials from the Group of Seven rich countries last month issued an unusually specific call for China's yuan to rise.

...more...

[UpInArms]

13. Thomasville Furniture to close North Carolina plant - 278 people w/o jobs

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-02T210026Z_01_WEN6524_RTRIDST_0_MANUFACTURING-FURNITUREBRANDS-URGENT.XML

ATLANTA, May 2 (Reuters) - Furniture Brands International Inc. (FBN.N: Quote, Profile, Research) said on Tuesday its Thomasville Furniture unit would close a North Carolina plant by August 1, eliminating 278 jobs.

The St. Louis-based company said charges related to the plant closing would likely be taken in its second and third quarters.

[UpInArms]

16. Ameriquest plans 2,800 layoffs - more people on the streets w/o work

http://www.azcentral.com/arizonarepublic/business/articles/0503biz-ameriquest0503.html

Citing a "cyclical" mortgage- lending industry, the parent company of Ameriquest Mortgage Co. announced plans Tuesday to close 229 retail branch offices and let go of 3,800 employees as part of a new business model aimed at cutting costs.

ACC Capital Holdings, the Orange, Calif.-based parent company, would not say how many Arizona offices would close or how many local employees would be cut. But the company lists at least 14 offices in a metro Phoenix phone book. It has about 11,000 workers nationwide.

The new business model will centralize branch-office functions into regional production centers, one of which is in Phoenix. The others are in California, Connecticut and Illinois.

<snip>

The mortgage-lending industry has been affected by a slowing real estate market and rising interest rates. After a five-year boom, the National Association of Realtors forecasts a 5.7 percent decline in existing-home sales this year, to 6.7 million. Inventories of unsold existing homes are up 27 percent from early 2005.

In January, it reached an agreement with a group of state attorneys general and financial regulators over claims of deceptive lending practices. The multistate settlement called for Ameriquest to pay $295 million to borrowers who obtained loans from Jan. 1, 1999, through Dec. 31, 2005. It also agreed to pay $30 million to reimburse states for legal fees and other costs as well as revamp some of its lending practices.

...more at link...

[UpInArms]

35. Borland to cut 300 jobs, or 20% of full-time staff

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B6330ECD2%2D6DD9%2D432F%2DA285%2DE74A5C68E45A%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Borland Software Corp. (BORL 5.00, -0.10, -2.0% ) said Wednesday it will cut its workforce by around 300 employees, representing about 20% of its regular full-time staff. The Curpertino, Calif. company said the majority of staff reductions will come from the reorganization of its international operations. Borland, said the job cuts in conjunction with plans for geographic consolidation and the divestiture of its Developer Tools Group will yield annualized cost savings of around $60 million. On Tuesday, the stock fell 10 cents to $5.

[WhiteTara]

87. they can't compete with China

the quality of furniture coming out of China is improving and they wholesale at US manufacturers' cost.

[UpInArms]

94. they have been logging some furniture quality lumber

near me - I'm pretty certain it will be shipped to China.

:(

:hi:

[UpInArms]

14. Enron: Did Dimson's best buddy, Kenny Boy Lay, Demonstrate Credibility?

http://www.nytimes.com/2006/05/03/business/businessspecial3/03enron.html?ei=5088&en=4c604d542457501c&ex=1304308800&partner=rssnyt&emc=rss&pagewanted=all

excerpt:

Jamie Wareham, the global chairman of litigation for Paul, Hastings, Janofsky & Walker, said that chief executives often make difficult witnesses for lawyers defending them. The same qualities of toughness, charisma and confidence that propelled them to the top translate poorly in the courtroom.

"They tend to have an unwillingness or inability to reflect self-doubt," said Mr. Wareham, who has defended corporate executives in criminal cases. "Companies that are led well are not led well by people who in public express self-doubt. But juries like that. They want to see that doubt, that humility. Lay does not project humility well."

<snip>

Not so for Mr. Lay. Most legal analysts expected that Mr. Lay's humble background and years of speech-making and other public appearances would help him project a charming, grandfatherly image. Instead, Mr. Lay appeared arrogant and controlling from start to finish, and deeply resentful of the government's Enron investigation.

<snip>

Mr. Lay also avoided responsibility for failing to press for more information about the profits Mr. Fastow earned from the LJM off-the-books partnerships that Mr. Fastow has admitted to using to help Enron manipulate its earnings.

Mr. Lay also refused to blame himself for the troubled Dabhol power plant in India, which he once championed.

Ethical rules that he had helped set up at Enron, including the company code of conduct, somehow did not apply to him, Mr. Lay suggested. When questioned by Mr. Hueston on Tuesday about a $160,000 personal investment he made in a photo-sharing company that did more than 80 percent of its business with Enron, Mr. Lay called suggestions of impropriety "form over substance."

Rules, he said, "are important, but you should not be a slave to rules, either."

...more...

[wordpix]

81. KennyBoy's philosphophy: "you should not be a slave to rules" or laws

for that matter. :puke:

The guy is as guilty as they come.

[UpInArms]

15. Deephaven Capital Mgmt(hedge fund adviser) Settles Chgs of Insider Trading

http://www.nytimes.com/2006/05/03/business/03deephaven.html?ex=1304308800&en=319fdb86d6e5c3f2&ei=5088&partner=rssnyt&emc=rss

Deephaven Capital Management, the hedge fund adviser, settled charges of insider trading yesterday after financial regulators said the firm had pushed down stock prices with illegally obtained information.

Deephaven, a unit of the Knight Capital Group of Jersey City, agreed to pay a $5.7 million penalty, while a former portfolio manager at the firm, Bruce Lieberman, will pay $110,000, the Securities and Exchange Commission said yesterday.

The agency charged that Deephaven and Mr. Lieberman found secret details on 19 private investments in public equity stock offerings and sold the companies' stock short after the offerings were announced.

The Deephaven Small Cap Growth Fund profited from the short positions, regulators said. Selling short is borrowing shares in expectation of paying for them at a lower price later. The S.E.C. said the practice went on from August 2001 to March 2004 and that, in each case, the company's share price fell when the equity offering was announced.

...more...

[UpInArms]

17. Fed's Moskow- U.S. deficits can't go on forever

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-03T123036Z_01_NAT002080_RTRIDST_0_ECONOMY-FED-MOSKOW.XML

CHICAGO, May 3 (Reuters) - Large U.S. current account deficits cannot go on indefinitely, but the adjustment process will likely be slow enough to avoid disrupting the U.S. economy, Chicago Fed President Michael Moskow said on Wednesday.

"No-one can say when this adjustment away from such high current account deficits will begin. But I expect that when it does, the adjustment will be gradual, without a major disruption to U.S. economic performance," Moskow said in remarks prepared for a speech to the Wilmette Rotary Club meeting in suburban Chicago.

Moskow did not discuss the current economy or monetary policy. Fed officials are in a quiet period before the May 10 Federal Open Market Committee meeting.

Countries with high net savings rates that hold U.S. debt will ultimately want to invest more at home, but would probably trim their U.S. holdings gradually to avoid "large capital losses in the event that there was a rapid unwinding of portfolio positions," he said.

<snip>

Turning to fiscal deficits, Moskow warned that "a large and growing public debt could also eventually put upward pressure on interest rates and crowd out public investment."

...more at link...

[UpInArms]

30. US Treasury to sell $34 bln debt in refunding

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-03T130221Z_01_TRT000115_RTRIDST_0_ECONOMY-TREASURY-REFUNDING-URGENT.XML

WASHINGTON, May 3 (Reuters) - The U.S. Treasury said on Wednesday it will sell $34 billion in securities in its quarterly sales of refunding auctions next week.

The Treasury said it will sell $21 billion of three-year notes on Tuesday May 9, and $13 billion of 10-year notes on Thursday, May 11.

The auction will refund about $59.86 billion of publicly held securities maturing or called on May 15 and will pay down about $25.86 billion of debt.

smoke and mirrors - how can $34 bln refund $59.86 bil and $25.86 bil?

[UpInArms]

38. more

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-03T132006Z_01_N03404622_RTRIDST_0_ECONOMY-TREASURY-REFUNDING-UPDATE-1.XML

excerpt:

Treasury said it will meet financing requirements with sales of weekly bills, monthly notes, a June 10-year note reopening, and Treasury inflation-protected securities in July. It said it is also likely to issue cash management bills in early June.

Treasury said in a statement that it is considering changes to restrictions and reporting on bidding procedures. These include allowing investors to bid both competitively and noncompetitively in Treasury marketable securities, while maintaining the $5 million limit on noncompetitive bids.

Also under consideration is raising from $500 million the threshold at which customers must confirm bids in writing and say whether they have reportable net long positions. The reporting threshold has not been raised since 1993.

Treasury is further considering public reporting of noncompetitive awards in Treasury auctions before the close of competitive bidding.

[54anickel]

61. Refund at a loss perhaps? Bwa-hahahaha!!

[54anickel]

65. U.S. Treasuries Fall After ISM's Services Index Unexpectedly Increases

http://www.bloomberg.com/news/markets/bonds.html

May 3 (Bloomberg) -- U.S. Treasuries fell after an index of the services industry unexpectedly increased and the government said it will sell $34 billion of notes next week, adding to supply at a time when investors are more concerned about faster inflation.

Yields on 10-year notes are at a four-year high as gains in oil, gold and copper prices heighten speculation that inflation may accelerate. Federal Reserve Chairman Ben S. Bernanke, who last week said the central bank may pause in raising interest rates, is scheduled to give a speech today.

Evidence of economic strength ``argues for continued selling and testing the upside in yields,'' said John Canavan, a fixed- income analyst at Stone & McCarthy Research, a Princeton, New Jersey-based firm that publishes a weekly survey of investor sentiment toward bonds. Ten-year yields may rise to 5.18 percent to 5.20 percent in the next month, he said.

snip>

Merrill Lynch & Co. Chief U.S. Strategist Richard Bernstein recommended investors sell some bonds and buy more U.S. stocks as a declining dollar boosts the earnings of exporters and inflation accelerates. Bernstein, based in New York, cut his bond weighting to 30 percent from 45 percent and raised his stocks to 50 percent from 40 percent. He raised cash to 20 percent from 15 percent.

``Our changes are geared to gain exposure to beneficiaries of the weakening dollar, while also attempting to protect against rising long-term interest rates,'' Bernstein wrote in his report to clients today.

more...

[wordpix]

80. smoke & mirrors, indeed- numbers obviously don't add up except to *Co

[UpInArms]

59. US Treasury-not mulling 50-year bond

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-03T141952Z_01_WBT005272_RTRIDST_0_ECONOMY-TREASURY-BOND-URGENT.XML

WASHINGTON, May 3 (Reuters) - The U.S. Treasury Department is not currently considering issuing a 50-year bond, officials said on Wednesday, although it discussed the topic in recent meetings with bond dealers.

"I can tell you unequivocally that that's not something we're thinking about or planning on at this point," Assistant Treasury Secretary Emil Henry told reporters at a briefing on Treasury's quarterly debt refunding announcement.

If they are "not thinking about it", why is being mentioned at all?

:eyes:

[UpInArms]

79. 10-year Treasury note's yield rises to 4-year high

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-03T150632Z_01_NYG000206_RTRIDST_0_MARKETS-BONDS-URGENT-UPDATE-3.XML

NEW YORK, May 3 (Reuters) - Long maturity U.S. Treasury yields rose to new multi-year highs on Wednesday in a sell-off following stronger-than-expected U.S. economic reports which also signaled rising inflation pressures.

The benchmark 10-year Treasury note's yield rose above 5.16 percent, its highest level since May 2002, according to Reuters data <US10YT=RR>.

Bond yields move inversely to their prices.

The 30-year bond's yield rose to 5.25 percent, its highest level since July 2004 <US30YT=RR>.

[OhioChick]

18. A big "Thank You"

for all that put their time and effort into this daily thread. It is much appreciated. :toast:

[UpInArms]

24. g'morning OhioChick!

:donut:

Glad to 'see' you here at the SMW :hi:

Come on in anytime, the water's fine :D

[ozymandius]

32. Thank you OhioChick!

:toast: Glad to be of service!

Ozy :hi:

[AnneD]

43. Welcome Ohio Chick

:hi: we are a friendly group and we try to help each other. Kinda like a virtual pub, or AA meeting, I can't decide which.

[UpInArms]

19. GA (Gamblers Anon) Mtg: Derivatives point to 200,000 new US jobs for April

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-03T123343Z_01_N03361142_RTRIDST_0_ECONOMY-PAYROLLS-DERIVATIVES.XML

NEW YORK, May 3 (Reuters) - Wall Street derivatives traders are betting the U.S. economy generated around 200,000 jobs last month, in line with the recent average and economist forecasts, auction results showed on Wednesday.

About one-third of bidders had wagered the number would come in between 175,000 and 250,000.

Sometimes market chatter generates "whisper numbers" that deviate sharply from consensus forecasts, but this did not seem to be the case for this upcoming report.

The U.S. Labor Department will issue the April jobs report on Friday at 8:30 a.m. (1230 GMT).

Investors use the auctions to hedge against unwanted surprises in the report, or simply to speculate on the outcome.

...more...

[UpInArms]

21. Laf'ng all the way to the bank:Apology Iss'd on UnitedHealth Stock Options

http://www.nytimes.com/2006/05/03/business/03united.html?ex=1304308800&en=796ab0d95e30f7c8&ei=5088&partner=rssnyt&emc=rss

MINNETONKA, Minn., May 2 (Reuters) — The chief executive of UnitedHealth Group apologized to shareholders at the annual meeting Tuesday, saying he regretted that the issue of stock options had become a huge news event for the typically low-key company.

UnitedHealth had granted stock options to the chief executive, William W. McGuire, worth some $1.6 billion, drawing criticism from institutional and individual shareholders as well as investigations into their timing.

Looking tense at times, Mr. McGuire told shareholders: "With perfect hindsight we perhaps should have moved to make adjustments in our options program as quickly as our business was growing. But this was not necessarily apparently without the benefit of that hindsight. In any event, we can only act now."

<snip>

"I was always steadfast in my belief that the amount of shares being granted were obscene," Larry Larson, a retired Minneapolis-area schoolteacher who owns about 800 UnitedHealth shares, told Mr. McGuire during a question-and-answer session.

"I grant you many more sleepless nights so you might make better decisions for this company in the future," Mr. Larson said to a strong round of applause. Several investors later came up to shake his hand.

...more...

[raccoon]

118. Maybe that's why my individual insurance policy just jacked

up their premiums again?

They did it only six frigging months ago. I'm going to look around and see what else is available.

[UpInArms]

22. 191 Reports of Eye Infection Linked to Bausch & Lomb Lens Cleaners

http://www.nytimes.com/2006/05/03/business/03eye.html?ex=1304308800&en=08b91077f0c978d2&ei=5088&partner=rssnyt&emc=rss

The number of reports of a rare fungal infection linked to contact lens cleaners has edged up slightly in the last week, according to the federal Centers for Disease Control and Prevention in Atlanta.

The C.D.C. said late yesterday that it had now received 191 reports of eye infections caused by a fungus called Fusarium keratitis, including 86 confirmed cases. That was up from 186 reports and 73 confirmed cases last week.

Fifty-eight of the cases involved contact lens users, the C.D.C. said, with 54 of them saying they had used lens cleaning solutions from Bausch & Lomb. The company's factory in Greenville, S.C., is suspected as a source of contamination.

The agency also said that three cases involved people who said they had used products from Advanced Medical Optics Inc., and that three were people who said they had used cleaners from Alcon. The C.D.C. did not specify how many of those or other people had used more than one brand of lens cleaner.

A lawyer representing the first reported victim of the outbreak to lose an eye said that millions of American contact lens users and many doctors remained unaware of the risks of the potentially blinding infection. Several patients who have had the infection have undergone corneal transplants or less severe treatment.

...more...

[wizdum]

26. Skyrocketing oil prices are our only hope at this point to sweep congress

clean of traitors and criminals. dubya is really starting to get under the skin of Americans, even that of her generals, and if he continues to do so the military just might decide to take matters into their own hands, stage a coup and arrest dubya and his criminal gang to save our constitutional democracy. Let's hope for a miracle at this point. I have been waiting for the stock market to crash under the weight of his disastrous economic policies, but the plunge protection team seems to be doing a good job of keeping the dow artificially inflated. But the price of oil is about to burst their bubble bigtime.

[AnneD]

47. That crash still might happen...

there is only so much you can do with fairy dust. The world market may make a correction for us.

[54anickel]

27. Heh-heh, look at them futures "soar"-to the water line. Why it's "magical"

(I just loved the way Colbert used those 2 words) :evilgrin:

[Ghost Dog]

44. Not rearranging deckchairs on the Titanic

...More like on the Hindenberg :rofl:

[AnneD]

48. Interviewing Jesse Jackson is like...

boxing with a glacier. Enjoy that metaphor, your children won't understand it. :spray:

[Ghost Dog]

60. Yeah, Jesse still seems to be quite cool.

(Still waitin', tho).

[54anickel]

85. Still some liquid in that glass....but I wouldn't drink it......BACKWASH!!

[UpInArms]

28. An Ugly Side of Free Trade: Sweatshops in Jordan

http://www.nytimes.com/2006/05/03/business/worldbusiness/03clothing.html?ei=5088&en=a9fe49757426d3c3&ex=1304308800&partner=rssnyt&emc=rss&pagewanted=all

Propelled by a free trade agreement with the United States, apparel manufacturing is booming in Jordan, its exports to America soaring twentyfold in the last five years.

But some foreign workers in Jordanian factories that produce garments for Target, Wal-Mart and other American retailers are complaining of dismal conditions — of 20-hour days, of not being paid for months and of being hit by supervisors and jailed when they complain.

An advocacy group for workers contends that some apparel makers in Jordan, and some contractors that supply foreign workers to them, have engaged in human trafficking. Workers from Bangladesh said they paid $1,000 to $3,000 to work in Jordan, but when they arrived, their passports were confiscated, restricting their ability to leave and tying them to jobs that often pay far less than promised and far less than the country's minimum wage.

"We used to start at 8 in the morning, and we'd work until midnight, 1 or 2 a.m., seven days a week," said Nargis Akhter, a 25-year-old Bangladeshi who, in a phone interview from Bangladesh, said she worked last year for the Paramount Garment factory outside Amman. "When we were in Bangladesh they promised us we would receive $120 a month, but in the five months I was there I only got one month's salary — and that was just $50."

<snip>

"These are the worst conditions I've ever seen," he said. "You have people working 48 hours straight. You have workers who were stripped of their passports, who don't have ID cards that allow them to go out on the street. If they're stopped, they can be imprisoned or deported, so they're trapped, often held under conditions of involuntary servitude."

...more...

[JNelson6563]

31. Gold: 677!?!?!

Holy Cannoli!! People should run screaming into the streets. The big money is nervous.

Julie

[ozymandius]

33. Just like acmejack says -

The gold in your computer's circuit boards is looking shinier and shinier.

[Ghost Dog]

49. Apposite (editorial) comment in today's Guardian/Business:

Bear braves the sunny uplands
http://business.guardian.co.uk/story/0,,1766101,00.html
Nils Pratley
Wednesday May 3, 2006
The Guardian

When the last bear turns bullish, it's time to get out. This old piece of advice proved correct in the last bull market, when the PDFM fund parted company with poor Tony Dye, aka Dr Doom, at the precise moment the investment chief's warnings about the madness of the dotcom bubble were about to be shown to be wise. Now Stephen Roach, Morgan Stanley's chief economist and "permabear", confesses to feeling cheerful.

"I am feeling better about the prognosis for the world economy for the first time in ages," he wrote yesterday. In the world of financial punditry, Roach's conversion is big news. He has been banging on about the perils of global trade imbalances, and the huge American current account deficit in particular, for years. His article of faith, that the US dollar must fall, is now mainstream rhetoric.

Indeed, Roach's optimism lies partly in the fact that what he calls "the stewards of globalisation" - the G7 nations and the IMF - are prescribing the same medicine. The dollar is being managed downwards, he reckons, and central bankers' task is made easier by globalisation's ability to curb inflation and Asia's switch towards domestic, rather than export-driven, growth.

<snip>

You never say never, but this faith in central bankers is touching. As Roach himself admits, oil, the "Iran problem" and China-bashing in Washington hardly help when aiming for an orderly decline in the world's major currency. Still, you have to admire the bravery of the call, given that Roach admits the last time he was so optimistic was 1999. Tony Dye knows what happened next.

/some more...

ed: hi :hi: Julie.

[wordpix]

83. fortunately I've held on to gold jewelry my grandparents bequeathed

I don't have much but with these prices, it's worth a small fortune today.

[ozymandius]

34. pre-open blather

08:00 am : S&P futures vs fair value: -1.1. Nasdaq futures vs fair value: +2.5. Futures versus fair value suggests a mixed start for the cash market. Procter & Gamble (PG) beat forecasts by a penny and Time Warner (TWX) posted improved Q1 earnings that matched expectations, but the fact that oil is inching back toward a record $75 per barrel ahead of a weekly report on U.S. fuel inventories (10:30 ET) is underpinning a sense of nervousness. Coupled with the interest rate picture remaining unsettled, the sustainability of yesterday's market gains remains in question.

[UpInArms]

37. g'morning Ozy!

:hi: :donut:

here's a link to the backdoor on the blather (for when they don't update)

:hug:

[UpInArms]

36. pre-opening blather

09:15 ET Market is Closed S&P futures vs fair value: -1.8. Nasdaq futures vs fair value: +1.0.

08:59 ET Market is Closed S&P futures vs fair value: -1.9. Nasdaq futures vs fair value: +0.5. Stage remains set for the cash market to open with little fanfare as a mixed earnings picture coupled with interest rate concerns and no real relief on the commodity price front continue to underpin a sense of caution. The yield on the 10-yr note is now back to 5.12% as traders await some economic reports -- Factory Orders and ISM Services (10:00 ET) -- that don't typically get a whole of attention, but with strong data of late feeding concerns about Fed policy could exacerbate ongoing anxiety in the Treasury market.

08:30 ET Market is Closed S&P futures vs fair value: -1.9. Nasdaq futures vs fair value: flat. Futures indications continue to signal a flat to modestly lower start for stocks. Technology will be in focus today after Qualcomm (QCOM) raised its Q3 EPS guidance and Qwest (Q) beat forecasts by a nickel, but a Q2 warning from Adobe Systems (ADBE), an earnings disappointment from Electronic Data Systems (EDS), and reports that Advanced Micro Devices (AMD) has delayed the launch of its 64-bit dual-core processor may keep sector gains in check.

08:00 ET Market is Closed S&P futures vs fair value: -1.1. Nasdaq futures vs fair value: +2.5. Futures versus fair value suggests a mixed start for the cash market. Procter & Gamble (PG) beat forecasts by a penny and Time Warner (TWX) posted improved Q1 earnings that matched expectations, but the fact that oil is inching back toward a record $75 per barrel ahead of a weekly report on U.S. fuel inventories (10:30 ET) is underpinning a sense of nervousness. Coupled with the interest rate picture remaining unsettled, the sustainability of yesterday's market gains remains in question.

[UpInArms]

41. 9:46 EST No Joy in Mudville

Dow 11,391.95 -24.50 (-0.21%)
Nasdaq 2,307.98 -1.86 (-0.08%)
S&P 500 1,310.34 -2.87 (-0.22%)
10-Yr Bond 5.129 +0.19 (+0.37%)

NYSE Volume 184,181,000
Nasdaq Volume 185,177,000

[ozymandius]

45. 9:55: will 10am save those numbers?

Dow 11,389.88 -26.57 (-0.23%)
Nasdaq 2,307.49 -2.35 (-0.10%)
S&P 500 1,309.94 -3.27 (-0.25%)
10-Yr Bond 51.27 +0.17 (+0.33%)
NYSE Volume 244,720,000
Nasdaq Volume 240,797,000

[UpInArms]

54. 10:09 EST no saviors appearing

Dow 11,385.45 -31.00 (-0.27%)
Nasdaq 2,303.12 -6.72 (-0.29%)
S&P 500 1,308.39 -4.82 (-0.37%)
10-Yr Bond 5.127 +0.17 (+0.33%)

NYSE Volume 369,885,000
Nasdaq Volume 352,701,000

[stop the bleeding]

67. my charts are still bleeding

- good thing I was able to take something away from the 1st hour hooplah

Thanks guys for the updates

[Czolgosz]

63. I really enjoy the stock market watch, but I always wonder why ozymandius

uses the January 22, 2001 date as the beginning benchmark for the point of comparison between the pre-Bush economy and the post-Bush doldrums.

I have always looked to November 7, 2000 as the best beginning date for any comparison because that was the last day before Fox News declared Bush the winner and other mainstream media followed suit. On November 7, 2000, the Dow closed at 10,907. Many people forget that the Dow lost almost 330 points between the election and the installment of Bush on January 22, 2001 (such was the financial world's confidence in the prospects for economic growth outside of the Halliburton/Enron/ExxonMobile sector).

Let's also not forget that Wall Street gave more money to Democrats than Republicans in 2005, which is a remarkable vote of no confidence in Bush when you consider that the Republicans control the Executive Branch, both houses of the Legislative Branch, and the federal Judicial Branch of our government.

[ozymandius]

75. I inherited the daily countdown when I took over the SMW. But nonetheless

January 22, 2001 is a convenient starting point to see how far we have progressed under Bush's stewardship. Suffice to say: it's lacking.

That's a wonderful question. The reason for the numbers does need repeating from time to time.

Ozy :hi:

[UpInArms]

64. GM credit problems surfacing

http://www.marketwatch.com/tools/quotes/quotes.asp?dist=newsfinder&symb=GM&siteid=mktw

10:26am 05/03/06 GM notes 'high risk' of not being able to use current line - MarketWatch.com

10:25am 05/03/06 GM expects to periodically use amended credit line - MarketWatch.com

10:23am 05/03/06 GM working to amend or replace existing $5.6B credit line - MarketWatch.com

10:24am 05/03/06 GM plans to amend, replace credit line by end Q2, start Q3 - MarketWatch.com

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B7220CF3F%2DD6D8%2D4A06%2DA5EE%2D376B890DEBB0%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- General Motors Corp. (GM 22.92, -0.29, -1.2% ) is working on amending or replacing its current $5.6 billion credit line by the end of the second quarter or early in the third quarter, according to a filing Wednesday with the Securities and Exchange Commission citing a presentation by the automaker's corporate treasurer at the GM/GMAC Global Relationship Conference. In light of GM's recent financial restatement, there is "substantial uncertainty" as to whether the bank syndicate that provides the current facility would be required to honor a request to borrow under it, GM said. A replacement facility or an amendment could include, among other terms, a security interest in certain GM assets, a reduction in the facility's size, and an extension of the term beyond its June 2008 expiration date. GM said it expects it would periodically use the new facility to fund needs such as seasonal working capital demands.

[specimenfred1984]

66. Look for a Pump After Fed Head Yaps

Fed speaks = Fed pumps. We wouldn't want to leave anything up to the "free" markets would we?

[UpInArms]

100. what time is Chopper Ben scheduled to begin his quackin'? .. eom

[54anickel]

69. Holy crap!!! Look at that gold chart!

So, is this the start of the correction from the article in post 57? Like I said, it will be interesting to see how long it lasts... Hope I don't run out of :popcorn:

[Egnever]

86. Weeeeee!

That was an impressive drop. I have been watching gold fairly closely the last month or two and it seems to me that it is continually being driven up after the us markets close and then brought down when they are opened.

Is it possible this drop was created by people hedged against gold fleeing in the face of an ever climbing gold price they cant stop?

I see its on its way back up now so it looks like maybe some big guys got out? Creating the drop.

Really new to all this so I'm just throwing out rookie guesses.

As always thanks to all of you on this thread for what you do!

[Ghost Dog]

89. All major indicators rebounding now... n/t

[Egnever]

91. Thats greek to me !

That mean everything just turned? Not just gold?

Seems to have been a huge drop in price right there in a short amount of time.

Please excuse my ignorance I am trying to figure this stuff out.

[UpInArms]

92. moving back up - here's the chart

[Egnever]

101. so just gold

Thanks for the clarification.

Definitely a bizarro drop almost $15 in like an hour only to start rebounding.What causes something like that? Doesn't that have to be a very large movement of money involved to create
such a dramatic swing?

[UpInArms]

103. here's an "explanation"

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCE9A0C5C%2D7885%2D48E0%2DA3E2%2DD5AFDBA26222%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- June gold climbed to a nearly 26-year high of $679.80 an ounce in New York Wednesday, then traded as low as $660 following weakness in oil. The contract has since recovered to trade at $670, up $2.60. Support is at $648, so there's "nothing special about $655-$658 here," said Jon Nadler, an analyst at Kitco.com. "Twenty bucks' range is no big deal given where we are in the market."

[OrangeCountyDemocrat]

104. "20 Bucks Range Is No Big Deal."

Exactly!! As I tell my friend, if Gold rises another $100, and then drops $50, it's not going to matter for those who bought it $400 lower. Right now my average cost is around $525, so it would really need to drop for me to be worried. Others who have been buying since $275 could care less if it drops. Just another buying opportunity.

[Egnever]

106. hmmm

Well I certainly don't have a clue if this is reality or not but my gut says thats a BS reason for it.

While it certainly doesn't affect me that much that it dropped like that it seems to me that someone on the US side is trying desperately to make gold drop. I base that observation solely on the fact that it seems to have been gaining over night now for quite a few weeks only to be pushed back down once us markets open in a sort of two steps forward one step back sort of thing.

At any rate I am finding it fascinating to watch no matter what is going on :P

[Ghost Dog]

111. Glad you're in a position to enjoy the show, Egnever

(as any sensible person, given half a chance, would be). :hi:

Sorry, I had to leave my desk there for a while... I referred to, in particular, the spot gold chart/numbers (above) and my home currency, the €uro:



(amongst others).

Actually, recently, paying attention to international currencies & commodities movements (as well as stocks, bonds, rates), I think I begin to perceive a certain pattern, viz: The rest of the World heading in one direction; the USA (while 'awake') determinedly attempting to head off in the opposite direction...

Ed. Nb. Good to watch international gold here: http://www.kitco.com/charts/livegold.html

[Egnever]

115. a certain pattern

"I think I begin to perceive a certain pattern, viz: The rest of the World heading in one direction; the USA (while 'awake') determinedly attempting to head off in the opposite direction..."

This is exactly what I seem to have been seeing lately.

I see now the almost exactly corresponding drop in the Euro with the price of gold. So I suppose that the slide in the gold price could be directly attributed to a sudden gain in the dollar. Which seems sort of goofy also considering that our dollar in large part is supported by foreign investment. One would think that there would be much more influence in the standing of the dollar based on what the foreign markets did while we were "sleeping". However there definitely seems to
be an attempt daily lately at or around the same time to push that dollar back up.

Being a complete newb to all of this I don't know if this is just SOP or if it is a relatively new phenomena but it looks really nutso to me :P

Thanks for the post though as it shed a little light onto my befuddled brain :)

[Ghost Dog]

117. ...Quite irrational markets, indeed,

rather disconcerting.

Take into account the Powers That Be (PTB) betting on War to solve all (minor) problems, however, and there, maybe, we have it.

[54anickel]

98. And the lame explaination....a rally in the buck

Bwahahahahaha!!!!

Gold surrenders gains as dollar rises

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B5A899D3A%2D7FEA%2D4FB3%2D89E4%2D3FD892CB7F67%7D&tool=1&siteid=bigcharts&dist=bigcharts

SAN FRANCISCO (MarketWatch) - After trading close to $680 an ounce early Wednesday at an almost 26-year high, gold prices pulled back midmorning as a recovery in the U.S. dollar following strong data triggered a bout of profit-taking.

June-dated gold futures were last down $1.40 at $665.90 an ounce on the New York Mercantile Exchange, off their early high of $679.80 an ounce. Front-month gold futures hadn't traded that high since October 1980, according to monthly charts from Thomson Financial.

"We were definitely overdue for a correction (remember "no pause, no let-up"?) and we are almost repeating last week's dip pattern," said Jon Nadler, investment products analyst at bullion dealers Kitco.com.

"Support really is 648 -- nothing special about 655-658 here. Twenty bucks range is no big deal given where we are in the market."

snip>

The weaker U.S. dollar has also contributed to the current spike, with investors looking for an investment alternative, and since the gold contract is priced in dollars, the metal has become somewhat cheaper for non-U.S. investors.

more...

[AnneD]

99. I got your popcorn right here...

:popcorn::popcorn::popcorn::popcorn::popcorn:
I hope the mata hits the fan before November. I want the GOP and Bush in particular to get full credit for the economy.

[UpInArms]

84. 11:20 EST still no joy

Dow 11,377.30 -39.15 (-0.34%)
Nasdaq 2,307.18 -2.66 (-0.12%)
S&P 500 1,308.03 -5.18 (-0.39%)
10-Yr Bond 5.160 +0.50 (+0.98%)

NYSE Volume 863,921,000
Nasdaq Volume 781,429,000

11:00 am : While a sell-off in oil prices following weekly inventory data provides some on the energy front, the market's overall reaction to crude's 1.3% pullback has so far been offset by the subsequent absence of leadership from the Energy sector. At 10:30 ET, the EIA reported an unexpected build in gasoline supplies and larger than expected rise in crude inventories, taking oil prices below $74 a barrel. However, since interest rate concerns also remain at the heart of the market's inability to sustain recent gains, and the yield on the 10-yr note has recently spiked to 5.15% amid further deterioration in bonds, the market is now erasing much of yesterday's recovery efforts. DJ30 -42.11 NASDAQ -7.52 SP500 -6.54 XOI -2.0% NASDAQ Dec/Adv/Vol 1618/1132/646 mln NYSE Dec/Adv/Vol 1793/1168/512 mln

10:30 am : Indices initially spike to session lows in sympathy with further weakness in bonds, as another batch of stronger than economic data raises concerns the Fed may go too far to keep inflation in check; but market losses remain minimal. The yield on the 10-yr note (-08/32) is now at 5.14%. At the top of the hour, the ISM services sector index jumped to 63.0 -- the highest level since an August 2005 read of 65.0 just prior to Katrina. More notably, the index was led by a spike in new orders to 64.5 from 59.5 while prices paid shot up to 70.5 driven higher by energy prices. Also validating that economic growth remains robust have been March factory orders, which jumped a stronger than expected 4.2% and leaves an 11.6% year/year pace -- the strongest since August 2004. DJ30 -26.10 NASDAQ -4.60 SP500 -4.36 NASDAQ Dec/Adv/Vol 1639/1028/480 mln NYSE Dec/Adv/Vol 1816/1043/370 mln

[ozymandius]

93. resistance is the word

11:30
Dow 11,377.14 -39.31 (-0.34%)
Nasdaq 2,305.38 -4.46 (-0.19%)
S&P 500 1,307.24 -5.97 (-0.45%)
10-Yr Bond 51.52 +0.42 (+0.82%)
NYSE Volume 921,960,000
Nasdaq Volume 831,354,000

[UpInArms]

95. The 10 Worst Corporations of 2005

Thanks to Robbien and this DU thread:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2259880

http://www.sfbg.com/entry.php?entry_id=393

Delphi: In October, Delphi CEO Steve Miller took his company into bankruptcy, with the explicit purpose of trashing the social contract between unionized auto workers in the United States and the auto industry. He proposed slashing worker wages from $27 an hour to a mere 10 bucks. And, in a fit of staggering arrogance, Miller and Delphi simultaneously proposed huge bonuses for company executives.

DuPont: Deadly chemicals from DuPont's perfluorinated, chemical-based coatings and related sources are now in the blood of 95 percent of people in the United States. DuPont has claimed that it does not know how the chemicals got there. But Glenn Evers, formerly one of the company's top technical experts, says that DuPont hid for decades that it was polluting people's blood with a hyper-persistent chemical associated with the grease-resistant coatings on paper food packaging. (For a complete history, see www.ewg.org .) In December, the U.S. Environmental Protection Agency agreed to settle claims against DuPont for a paltry $16.5 million. On a happier note, the agency and DuPont announced that the chemicals will be phased out by 2015.

Ford: Ford Motor Company's factory in Mahwah, New Jersey once the largest auto assembly plant in the nation, dumped millions of gallons of paint sludge -- enough to fill two of the three tubes of the Lincoln Tunnel -- into a now-residential area, revealed a series published in the Bergen Record (see www.toxiclegacy.com ). Tests commissioned by the Record found lead, arsenic and xylenes in the sludge -- some at 100 times the levels the government considers safe. Reporters with the Record dug up documents showing that Ford executives knew as early as 34 years ago that its waste had contaminated a stream that feeds the Wanaque Reservoir.

Suez: Suez has been a leading purveyor and beneficiary of the global trend of water privatization -- the selling off of public water systems to private entities, or the turning over of control and management of public systems to corporations. The result has been lousy service, jacked up rates and targeted efforts for well-off households at the expense of the poor. In a notable case in El Alto, Bolivia, mass demonstrations in January 2005 led the Bolivian government to cancel a water privatization contract with Aguas del Illimani, of which Suez is a major shareholder.

Go read about the other six:

BP
ExxonMobil
Halliburton
KPMG
Roche
W.R. Grace
http://www.sfbg.com/entry.php?entry_id=393

[UpInArms]

102. High Yield derivatives index tightened in April on hedging (lack of shorts

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-03T153911Z_01_N03449402_RTRIDST_0_MARKETS-CDOS-MERRILL.XML

NEW YORK, May 3 (Reuters) - The benchmark U.S. high yield credit derivatives index tightened in April after dealers oversold protection on the index as a hedge, due to a lack of investors willing to take short positions on some tranches based on the index, Merrill Lynch said.

The Dow Jones high yield credit derivatives index rose to 102.25 percent at the end of the month, from 100.5 percent at the beginning of April.

Credit derivatives are contracts that insure against borrowers defaulting on their debt, with wider spreads typically reflecting more risk.

Seems that fewer people are betting against defaults :eyes:

[ozymandius]

105. noon update and bye

12:02
Dow 11,376.26 -40.19 (-0.35%)
Nasdaq 2,305.06 -4.78 (-0.21%)
S&P 500 1,307.52 -5.69 (-0.43%)
10-Yr Bond 51.63 +0.53 (+1.04%)
NYSE Volume 1,089,859,000
Nasdaq Volume 969,748,000

Gotta run. Final prep needs doing for my son's 4th birthday party. Have a great afternoon folks!

Ozy :hi:

[magellan]

108. Question about US dollar future and buying gold

Hi all, I enjoy reading here. What are your thoughts about the dollar continuing its fall against other major currencies -- will it continue? And while I realize we're late to the game, how exactly does one go about buying gold, and is it even worth it at this point?

[AnneD]

130. We really don't give investment advice here...

what we can do is tell you what we have done. There are coin shops that sell gold and silver. That is a start. Gold has generally kept up with inflation so to speak, but has not been seen as an investment. It is more of a security thing I think. In times of economic uncertainty, dollars may be worth squat, but gold is your best friend (silver is the friend you call when gold is busy).
You make the call based on what you think after you have gathered facts-and there are lots of good sources here.
:hi: Welcome Magellan.

[magellan]

132. Thanks, AnneD

I very much appreciate all you wrote. It pretty much confirmed what I already told the hubby about gold (thanks to what I've gleaned here over time). As for the dollar, we have a personal stake in the value of the GBP so I felt compelled to ask...My bad! I'll keep watching and reading.

You all have my gratitude for the insight you share on these stock market threads. :)

[AnneD]

134. We all ask at one time or another..

knowing we really can't get specific advice (and really, should you trust advice from an anonomous source on the internet). As you said, if you read the thread long enough and think about the info, you can get a pretty good idea. Always research an investment-it's your money after all. Oh, FYI, there is a debate about keeping gold in a safety deposit box. Seems the government folks can open it and loot it, for legal reasons of course.

[mojavekid]

109. Silver ETF uptake exceeds expectations, UBS says

found on Kitco...

http://www.kitco.com/

LONDON (MarketWatch) -- Uptake of Barclays' silver exchange traded fund is exceeding expectations and will likely reach and possibly exceed 100 million troy ounces within the first month, UBS said.
This is up from a previous UBS estimate of 60 million-100 million ounces of ETF uptake within one month.
"Our forecast will (likely) be met or exceeded within the first month of trading and our three-month forecast of $16/oz for silver may be reached within the same timeframe," UBS said in a report.
Barclays' ETF traded on the American Stock Exchange saw 21 million ounces of demand during the first trading day and has since increased to 32 million ounces.
Daily purchases would slow down but with "silver interest rates and spot silver increasing the success of the ETF appears to be a self-fulfilling prophecy," UBS said.
Spot silver last traded at $14.34/oz Wednesday, up $0.42 on the Tuesday fix.
The ETF was launched to reflect the price of the silver held by the trust, minus expenses and liabilities, according to the trust sponsor Barclays Global Investors, a unit of Barclays PLC (BCS).
The ETF shares are backed by silver stored on behalf of the trust.
Corrected may 3, 2006 12:07 ET (1607GMT)
Uptake of Barclays' silver exchange traded fund is exceeding expectations and will likely reach and possibly exceed 100 million troy ounces within the first month, UBS said.
This is up from a previous UBS estimate of 60 million-100 million ounces of ETF uptake within one month.

[UpInArms]

113. US private sector adds 178,000 jobs in April-survey

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-05-03T172020Z_01_N03389803_RTRIDST_0_ECONOMY-ADPEMPLOYMENT-UPDATE-1.XML

NEW YORK, May 3 (Reuters) - U.S. private employers likely added 178,000 jobs in April, suggesting solid job growth in an expanding economy, a survey by a private employment service said on Wednesday.

Over the four months ending in April, estimated job growth in the survey has averaged about 200,000 per month, said ADP Employer Services in the debut of its employment report, which it jointly developed with Macroeconomic Advisers LLC.

"Employment growth has been very firm this year. This is consistent with an economy growing strongly," said Joel Prakken, chairman of Macroeconomic Advisers LLC.

Prakken estimated that roughly 22,000 government jobs were created in April, which would put the month's U.S. payroll gain at 200,000, in line with the current market consensus.

Automatic Data Processing, based in Roseland, New Jersey, is the parent of ADP Employer Services and is a large payroll services company. Macroeconomic Advisers LLC is based in St. Louis, Missouri. The two firms plan to release the ADP National Employment Report each month, two days prior to the government's own job survey.

...more...

[Roland99]

122. Solid Job Growth??? WTF?!?!

178k is barely above the minimum needed to maintain equilibrium with a growing population.

[UpInArms]

125. Now Roland99, why are you trying to apply logic to this -

you know that reality has a liberal bias! :sarcasm:

:hi:

[Roland99]

126. Dang it! There I go again!

:spank:

[Robbien]

136. Job growth to government contractors, is that private or government?

I saw Dyncorp is adding quite a few jobs for open merc positions. Private or Government?

[UpInArms]

138. those would be classified as private even though they are gov't funded. nt

[UpInArms]

116. Driven by sinking poll numbers, Dimson rides the tax-cut pony

http://www.mcall.com/news/nationworld/all-a3_cong-spendingmay03,0,4450005.story

President Bush and congressional Republicans agreed Tuesday on a $70 billion package of tax cut extensions that they hope will help halt the deterioration of their political fortunes.

The package would extend the 2003 cuts to the tax rates on dividends and capital gains, continue tax breaks for small-business investment and the overseas operations of financial service companies, and slow the expansion of the alternative minimum tax, a parallel income tax system enacted to target the rich but is increasingly snaring the middle

<snip>

For the Republicans, the tax cuts may have to substitute for other measures proposed last week to help consumers cope with gasoline prices. Proposals ranging from a federal gas tax holiday to a $100 rebate have run into a buzz saw of opposition from businesses and oil interests as well as consumers.

With little progress on the energy front, Bush summoned Republican leaders and tax writers to the Oval Office on Tuesday to force an agreement on a tax bill that has languished since late last year. The president is scheduled to speak today on the economy and taxes, and he implored lawmakers to deliver an agreement he could tout.

...more...

[UpInArms]

119. Charity exec who stole $250,000 to pay Ohio dominatrix gets jail

http://news.yahoo.com/news?tmpl=story&cid=573&e=20&u=/nm/20060503/od_nm/crime_dominatrix_dc

NEW YORK (Reuters) - An executive at a heart disease charitable foundation who embezzled close to a quarter of a million dollars over two years to pay a dominatrix to beat him was sentenced Tuesday to two to six years in prison.

Abraham Alexander, an accounts payable executive at the Manhattan Cardiovascular Research Foundation, admitted to stealing $237,162 and spending most of it on services provided by a Columbus, Ohio-based dominatrix called Lady Sage.

Manhattan prosecutors said Alexander, a Singapore-born citizen of India, had forged or altered checks payable to himself, to two credit card companies and to an online-based dominatrix company called Through the Looking Glass.

Alexander, 45, bought airline tickets for trips between New York and Ohio, paid for car rentals in Ohio and charged purchases at stores called Wicked Naughty Accessories and Leather Creations and at Victoria's Secret, prosecutors said.

...more...

[AnneD]

129. I am sure

Bubba, on cell block 6 will provide dominatrix services for free :spank: Gee I went into the wrong profession.
All I can do is dress up like a Nurse and give am enema...HMMMM :dilemma: That gives me an idea:evilgrin:

[UpInArms]

128. Nacchio's Attorneys Seek to Move Trial (Insider Trading at Quest)

http://news.yahoo.com/s/ap/20060503/ap_on_bi_ge/qwest_nacchio?_ylt=AkJg0W8pKr_P4nhRFaHI4IeyBhIF?_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

DENVER - Former Qwest Chief Executive Joe Nacchio's attorneys have said he is "among the most reviled figures in recent Denver history" and his trial on insider trading charges should be moved because he cannot get a fair trial in the city.

Nacchio is charged with 42 counts alleging he publicly exaggerated Qwest's financial health before selling about $101 million in company stock in 2001. He has pleaded innocent.

In documents filed Monday in U.S. District Court in Denver, Nacchio's lawyers asked for a change of venue if the judge refuses to drop the charges, as they have asked.

<snip>

Also Monday, Nacchio's lawyers accused prosecutors of improperly influencing a grand jury before it handed up the indictments in December.

...more...

History:

Qwest's Nacchio pleads not guilty to insider trading

excerpt:

The criminal charges are the first against Nacchio in the government's lengthy investigation of Qwest Communications International Inc., the telephone service provider for 14 mostly Western states that only now is recovering from a multibillion-dollar accounting scandal.

The charges come nearly three years after then-Attorney General John Ashcroft announced the first indictments in the Qwest investigation, calling it an example of the government's intolerance of white-collar crime.

<snip>

The indictment blames Nacchio for "a manipulative and deceptive" scheme to commit fraud and says he was "specifically and repeatedly warned" about the financial risks facing his company just five months before the stock trades in question.

Prosecutors declined to discuss who allegedly warned Nacchio about revenue problems at Qwest or who might testify. The government has said in both civil and criminal complaints that Qwest and some of its former executives participated in a massive financial fraud between April 1999 and March 2002 by falsely reporting one-time sales or trades of capacity on its fiber-optic cables as recurring revenue.

The fraud allowed Qwest to improperly book approximately $3 billion in revenue that eased its 2000 merger with U S West Inc. and it allowed various executives to reap millions in "ill-gotten" profits, the government has said. Qwest later restated earnings from 2000 and 2001 to erase about $2.2 billion in revenue.

...more at link...

[UpInArms]

131. 3:46 EST heading for the close with a gleam in their eyes

Dow 11,405.72 -10.73 (-0.09%)
Nasdaq 2,306.63 -3.21 (-0.14%)
S&P 500 1,308.71 -4.50 (-0.34%)
10-Yr Bond 5.144 +0.34 (+0.67%)

NYSE Volume 2,184,011,000
Nasdaq Volume 1,978,583,000

3:30 pm : Major averages continue to improve their stance but sellers remain in control of the action with only 30 minutes left in the trading day. All ten economic sectors continue to trade in negative territory even though the Industrials has come close to inching back above the flat line. 3M Co. (MMM 85.58 +1.08) hitting session highs and approaching this week's best levels at $85.73 is providing the bulk of support. Tyco International (TYC 27.17 +0.24) ahead of its earnings report tomorrow and strength in Airlines amid oil's 3.0% pullback are also helping offset the sector's struggles to turn positive.DJ30 -20.74 DJTA +0.5% NASDAQ -7.29 SP500 -5.71 NASDAQ Dec/Adv/Vol 1632/1364/1.85 bln NYSE Dec/Adv/Vol 1944/1272/1.47 bln

3:00 pm : Market tries to regain some upside heading into the final hour of trading but a bearish bias remains intact. As reflected in the A/D line, decliners on the NYSE now hold a nearly 2-to-1 edge over advancers while declining issues outpace advancing issues by a 17-to-11 margin. A more than 2-to-1 ratio of down to up volume paints an even more negative picture of overall sentiment even though gas futures closed nearly 4% lower to offer consumers some relief heading into the summer driving season. Prices at the pump jumped 13% in the last month. DJ30 -36.38 NASDAQ -10.13 SP500 -7.96 NASDAQ Dec/Adv/Vol 1786/1196/1.68 bln NYSE Dec/Adv/Vol 2030/1173/1.32 bln

[Lydia Leftcoast]

135. The British pound continues to rise

$1.82 yesterday, $1.84 today :-(


http://www.xe.com/ucc/convert.cgi

The yen is not fluctuating too much right now, probably because Japan is in the midst of "Golden Week," a period when several national holidays come in quick succession.

[UpInArms]

137. closing numbers and blather

Wow! They barely held that 11,400 number (not like there was a goal or anything :eyes: )

Dow 11,400.28 -16.17 (-0.14%)
Nasdaq 2,303.97 -5.87 (-0.25%)
S&P 500 1,307.85 -5.36 (-0.41%)
10-Yr Bond 5.144 +0.34 (+0.67%)

NYSE Volume 2,484,670,000
Nasdaq Volume 2,203,732,000

Per usual, the market was again unable to sustain a convincing advance, as growing interest rate concerns and a mixed batch of earnings data prevented investors from taking full advantage of plummeting prices across the energy complex.

The yield on the 10-yr note (-08/32) climbed back toward four-year highs near 5.14% after more strong economic data raised concerns that Fed tightening has further to go than expected. About 30 minutes after the opening bell sounded, a report showed that the ISM services index jumped to 63.0 -- the highest level since August 2005, as the prices paid component shot up to 70.5, driven higher by energy prices. Also validating that economic growth remains robust was March factory orders, which jumped a stronger than expected 4.2%. That left an 11.6% year/year pace -- the strongest since August 2004.

Meanwhile, since the broad-based nature of upside surprises has acted as a source of buying support for the market in the face of rising interest rates, a mixed bag of earnings reports over the last 24 hours left investors somewhat skeptical about the pace of earnings growth. Such concerns continue to underpin our Neutral market view. Procter & Gamble (PG 56.30 -1.81) beat forecasts by a penny, but sales were light, Q4 EPS guidance a bit disappointing and with the rate of growth checking in at its slowest pace in three years, the Dow component lost 3.1%. Coupled with a disappointing Q3 report from Clorox (CLX 61.52 -2.90), the Consumer Staples was unable to attractive defensive-minded investors amid a day of broad-based consolidation.

Microsoft (MSFT 23.17 -0.84) closing at a new 52-week low also weighed heavily on the market and the Technology sector. Reports that Microsoft is considering buying a stake in Yahoo! (YHOO 32.17 +0.32) led investors to question the tech giant's growth strategy. Software was also under pressure after Adobe Systems (ADBE 35.06 -3.29) said Q2 earnings would miss analysts' expectations. Playing into our Overweight rating on Technology, however, was a raised Q3 EPS outlook from Qualcomm (QCOM 51.75 +0.69), and an analyst upgrade on Motorola (MOT 21.92 +0.67), which is a suggested holding in our Active Portfolio.

Among the six other economic sectors losing ground, Health Care turned in the day's second worst performance. Downside Q2 guidance pushed CIGNA (CI 90.48 -15.02) to a 52-week low and exacerbated recent consolidation in the managed health care space while reports of more infections sent Bausch & Lomb (BOL 43.96 -4.79) to a new 52-week low.

On a positive note, energy prices plunged providing consumers some relief heading into the summer driving season, especially since prices at the pump jumped 13% in the last month. Gasoline futures closed down 4.0% at $2.089 a gallon while crude oil futures lost 3.0% and closed near $72 a barrel after the EIA showed that demand for gasoline was flat last week as inventories rose 2.1 mln barrels. That was the first climb in nine weeks and the market was expecting another draw down (consensus 650,000 barrels). Unfortunately for the bulls, the Energy sector's inability to provide leadership (-1.5%) reminded investors that Energy sector profits are unlikely to grow at the same rate as over the past year. Industrials, however, eked out a small gain as 3M Co. (MMM 85.90 +1.40) surged to session highs into the close of trading and transportation stocks benefited from the 3.0% pullback in the price of crude. BTK -1.0% DJ30 -16.17 DJTA +0.4% DJUA -0.3% DOT -0.9% NASDAQ -5.87 NQ100 -0.2% SOX +1.2% SP400 -0.1% SP500 -5.36 XOI -1.5% NASDAQ Dec/Adv/Vol 1508/1520/2.15 bln NYSE Dec/Adv/Vol 1806/1432/1.74 bln