STOCK MARKET WATCH, Tuesday 11 July

[ozymandius]

Tuesday July 11, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 925 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2026 DAYS
WHERE'S OSAMA BIN-LADEN? 1726 DAYS
DAYS SINCE ENRON COLLAPSE = 1687
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 6
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 July 11, 2006

Dow... 11,103.55 +12.88 (+0.12%)
Nasdaq... 2,116.93 -13.13 (-0.62%)
S&P 500... 1,267.34 +1.86 (+0.15%)
Gold future... 626.10 -8.70 (-1.39%)
30-Year Bond 5.17% -0.00 (-0.08%)
10-Yr Bond... 5.13% -0.00 (-0.04%)






GOLD, EURO, YEN, 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 Rob Kirby

A SLOW DAY FOR NEWS?

Much has been written in this space over the past year and a half how movements in the precious metals markets, foreign exchange, energy and interest rate markets, so often contradict FUNDAMENTAL economic principals.

As a gold bug, one of my biggest pet peeves is the manner in which the mainstream financial press “dismisses” or refuses to apply rudimentary investigative analysis to blatant identifiable irregularities in key, strategic financial markets.

-cut-

Today’s Market

Overseas equity markets began the week on a positive note with Japan’s Nikkei Index gaining 245 points to close at 15,552. Meanwhile, North American markets began the week mixed with the DOW up 12.88 to 11,103.55, the NASDAQ off 13.13 to 2,116.91 and the S & P up 1.86 to 1,267.37. NYMEX crude oil futures were “red carded” and subsequently fell .48 to close at 73.61 per barrel.

While it was reported that the World Cup of Soccer had a pronounced effect on precious metals, its effect on Interest rates was apparently nil. The benchmark 2-year bond ended the day unchanged at 5.17%, the 5-year at 5.09% and the 10-year at 5.13%.

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

[ozymandius]

2. Oil prices fall as N. Korea worries ease

SINGAPORE - Oil prices fell for a fourth day Tuesday as concerns about North Korea's missile tests and Iran's nuclear program eased.

Crude oil futures spiked last week after North Korea fired several missiles into the ocean, hitting an intraday record of $75.78 a barrel on Friday before falling back. Many traders said that surge was unwarranted.

"The market was hyped up because of North Korea's missile tests, but of course that has nothing to do with oil supply and demand, so the market has now been correcting," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

Light, sweet crude for August delivery fell 22 cents to $73.39 a barrel in midafternoon Asian electronic trading on the New York Mercantile Exchange.

more

[ozymandius]

4. Qatar gas pipeline to UAE almost complete: source

DUBAI (Reuters) - The $3.5 billion Dolphin pipeline carrying Qatari gas to the United Arab Emirates will be completed within a few weeks, a Gulf source said on Tuesday.

Financial newswire Bloomberg reported on Tuesday that Saudi Arabia plans to block the undersea pipeline crossing its territory, citing a letter issued by the Saudi government.

very short

[ozymandius]

5. Oil Prices: How High Can They Go?

Like baseball and real estate, complaining about energy prices is a national pastime. And while high gasoline prices can certainly make trips to the pump painful, they do not appear to have visited major havoc on the U.S. economyyet. That may have offered some small comfort of late to motorists shelling out more than $60 to fill up their Escalades.

But the comfort zone may be shrinking fast. On July 7, August futures for light sweet crude brushed a record $75.78 per barrel in electronic trading on the NYMEX amid saber rattling from Iran and North Korea. Although prices eased later in the day, the fresh strength may signal that elevated energy costs could be a fact of life in America for the foreseeable future.

-cut-

Phil Flynn, an analyst and trader at the Chicago futures brokerage Alaron, says that oil prices have been rising about $10 per barrel annually. "As long as the economy continues to expand, we will be at $80" next year, he predicts. For the most part, he says the growing economy has kept pace with or outpaced the price of oil. Energy prices have "slowed the economy a bit but really haven't stopped it."

-cut-

If these trends continue, Wyss and Flynn agree that the current supply-demand situation alone won't cause a drastic economic problem. Certain scenarios could make it much worse. Wyss says that if the U.S. were to go to war with oil-rich Iran, the resulting disruption to world petroleum markets could cause the price of oil to double.

more

[UpInArms]

17. Oil Rich Iraq Suffers Through Gasoline Shortage

http://www.npr.org/templates/story/story.php?storyId=5545124

In Iraq, with the second-largest proven oil reserves in the world, residents of Baghdad are enduring a fuel shortage. Long lines at gas stations are not unusual. But now many stations are closed for lack of fuel.

[Ghost Dog]

32. And the Lord said: "Let there be Hype."

And there was Hype.

But, me, re. NK, especially if I was living in South Korea, Japan or neighboring provinces of China, I'd be taking any stoopid mishandling of this situation very seriously indeed, from what I can see.

[UpInArms]

47. August Crude @ $74.25 bbl - NatGas @ $5.775 mln btus

10:05 AM ET 7/11/06 AUGUST CRUDE UP 64 CENTS AT $74.25/BRL AFTER 3-SESSION FALL

10:05 AM ET 7/11/06 AUGUST NATURAL GAS CLIMBS 16.7 CENTS TO $5.775/MLN BTUS

[UpInArms]

76. Energy Dept. ups estimate for summer gasoline prices (from $2.62 to $2.88)

(fly-by posting)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B2776BF2E%2D178E%2D4A63%2DB67C%2D65F8437F24F9%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Retail prices for regular unleaded gas from April 1 through Sept. 30 will likely average $2.88 a gallon, up from an April estimate of $2.62, the Energy Information Administration said in its monthly short-term energy outlook report released Tuesday. "No more than 14 cents of this 26-cent increase in the forecast gasoline price can be attributed to higher crude-oil prices," the report said. The estimate is also 51 cents higher than last year's average. The EIA also expects spot prices for crude oil to average about $69 a barrel in 2006 and 2007. Natural-gas prices will likely be lower the rest of the year compared to the same time last year, it said, with the 2006 average spot price forecasted at $7.61 per thousand cubic feet.

[Roland99]

81. It's BEEN at $2.89. It's NOW at $3.00 nationwide average!

Who the hell are the morans putting out this crap?

[UpInArms]

101. Oil futures close above $74 to break a three-day losing streak (@ $74.16)

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B976A776D%2D6102%2D4EE0%2DB024%2D22F5A439CDD1%7D&symbol=

SAN FRANCISCO (MarketWatch) -- Crude-oil futures closed above $74 a barrel Tuesday, breaking a three-day losing streak, with traders eyeing Iran's nuclear program and North Korea's missile tests and awaiting data on U.S. gasoline supplies over the Independence Day holiday weekend.

Crude for August delivery closed up 55 cents at $74.16 a barrel on the New York Mercantile Exchange after trading as high as $74.60. The contract had surrendered 2% of its value in the past three days after touching a record above $75 a barrel on Friday.

Overall, "there are few new developments on the supply or demand side, and the market will likely again turn to focus on the short-term fix of Wednesday's inventory data to establish some more clear directional trading for the latter part of the week," said James Neale, analyst at Citigroup, in a research note.

Analysts at Wachovia Corp. expect the Energy Department Wednesday to report a decline of 2 million barrels in crude inventories for the week ended July 7. Man Financial is looking for a decline of 1.5 million to 2.5 million. Fimat USA expects an increase of 2.1 million.

...more...

[ozymandius]

3. no reports scheduled for today n/t

[ozymandius]

6. Vodafone and M&S drag FTSE lower

London equities opened in the red on Tuesday following overnight declines on Wall Street and in Asia. Telecoms stocks fell on the back of a profit warning from Lucent Technologies (NYSE:LU - news) in the US late on Monday night.

Vodafone fell 1.5 per cent to 118¼p after UBS (NYSE:UBS - news) cut its recommendation on the mobile telecoms group from 'buy' to 'neutral' and lowered its price target by 22p to 131p.

Other telecoms in negative territory included Colt, down 3.8 per cent at 176p, and Cable & Wireless, off 0.9 per cent at 114½p.

more

[ozymandius]

7. Nikkei falls, tech shares down on profit concerns

TOKYO (Reuters) - The Nikkei average fell 0.51 percent on Tuesday as Advantest Corp and other technology shares declined after their U.S. peers were hit by a profit warning, raising concerns about slowing earnings momentum.

Analysts said the Nikkei's sharp gains from the previous session also made some stocks ripe for profit-taking.

-cut-

U.S. technology stocks fell sharply on Monday after brokerage Merrill Lynch cut its rating on the sector. An earnings warning from data storage equipment maker EMC Corp. also hurt sentiment.

"There is growing uncertainty over U.S. technology companies' earnings, and this may be indicating that an economic slowdown is a real thing in the United States," which is a major export market for Japan, said Yoshihisa Okamoto, senior vice president at Fuji Investment Management.

more

[ozymandius]

8. Alcatel slips on downbeat news from Lucent

Alcatel on Tuesday said that second quarter sales rose in line with expectations but its shares fell after Lucent, with which it has agreed a merger, reported falling sales and earnings that missed analysts' forecasts.

Alcatel said that revenues in the second quarter rose 7.5 per cent over the same period last year to €3.38bn. The operating margin, including a 0.3 per cent impact from an exceptional gain from a disposal of fixed assets, fell from about 8.3 per cent to 8 per cent.

The French company also confirmed that its merger with US rival Lucent was on track, including the level of cost synergies expected to be achieved as the two telecoms equipment companies combine to create the world's biggest network infrastructure supplier.

more

[UpInArms]

24. Lucent warning hits futures

http://today.reuters.com/news/globalcoverage.aspx?type=markets&src&src=071106_0722_FEATURES_before_the_bell

Stock futures signalled a dip for Wall Street on Tuesday after a disappointing revenue report from economy bellwether Alcoa (AA.N: Quote, Profile, Research) and a profit warning by communications gear maker Lucent Technologies (LU.N: Quote, Profile, Research).

But a better-than-expected result from Pepsi Bottling Group could provide some cheer.

Lucent said late on Monday it expected third-quarter earnings to fall due mainly to slower sales of wireless network equipment in North America. Its shares fell more than 7 percent in after hours trade. (Read story)

This, added to an earlier earnings warning from data storage equipment maker ECM (ECM.N: Quote, Profile, Research) and a rating downgrade by Merrill was likely to add to negative sentiment in the sector.

Still, analysts at Citigroup raised the company's shares to "buy" from "hold", citing low valuations, MarketWatch reported. :wtf:

...more...

[ozymandius]

9. All Eyes on Alcoa

Alcoa (AA) proved that it is, indeed, a good time to be a commodities producer, but not quite as good as investors had figured. On July 10, the world's biggest aluminum company reported the highest quarterly sales and profits in its 115-year history. Net income for the second quarter surged 62%, to $744 million, from a year earlier, as sales rose 19% to $7.96 billion. The record profit came despite a $35 million charge for strike preparations and a new U.S. labor contract.

Still, there were some disappointments. The revenue figure fell short of the $8.01 figure that industry analysts had been expecting. Moreover, company executives warned that aluminum prices likely will fall in the third quarter. As a result, Alcoa's stock price, down 14 cents during regular trading, to $33.41, fell as much as $1.37 in after-hours trading.

The report may affect equity markets on July 11. Alcoa is the first blue-chip company to report second-quarter results. It also is seen as a proxy for the industrial economy, given its connection to everything from beverage cans and kitchen foil to aircraft components, automotive parts, and construction materials. Other major industrial companies, including ExxonMobil (XOM) and U.S. Steel (X), report later this month. General Electric (GE) will report earnings on July 14.

http://www.businessweek.com/investor/content/jul2006/pi20060710_137942.htm

[WePurrsevere]

30. Thanks for posting this. ALCOA's hiring quite a few folks up here & I was

wondering why since my daughter's SO is going to be applying there in the hopes of getting a decent job. Although I don't know why (or can't remember), I'm not sure this would be a good thing long term. Hopefully I'm wrong, with a new baby to support they really could use a decent income.

[54anickel]

50. Dang, I'd better hustle on taking those cans in for recycling!!! Wonder

why they foresee aluminum prices falling in the 3rd quarter? What else do they see falling?

[ozymandius]

10. Airbus orders plunge to less than quarter of Boeing's

AIRBUS, the troubled European aircraft-maker, ran into more turbulence yesterday as it announced a sharp fall in new orders and shareholders filed a class action lawsuit against its parent company, EADS.

The company said it had booked 117 firm orders for passenger jets in the first half of 2006, down from 276 in the same period last year. Arch-rival Boeing reported 480 orders at the end of June - more than four times as many as Airbus over the same period.

-cut-

Noël Forgeard, co-chief executive of EADS, was also forced to resign after the A380 delays were announced just days after BAE, the British aeronautical and weapons group, said it planned to sell its 20 per cent stake in Airbus.

Yesterday's industry figures showed that orders for the Airbus A380 have also plunged to earth. No new orders have been added this year to the 159 already placed.

http://business.scotsman.com/index.cfm?id=1007782006

[Ghost Dog]

36. Hmm. Huge management/political failures here?

Me, I've never flown in a 747 and don't want to. I certainly don't plan to ever fly in an A380. Not even in super-first class. I also hate large 'hub' airports. I prefer to fly local planes between local airports. A single-aisle A320 is plenty large enough for me, and I prefer the new generation of much smaller Fokker, Embraer, Bombardier, etc. jets.

I reckon Boeing, if the 'network' rather than 'hub-and-spoke' model prevails, will find its Dreamliner design, if it works and is truly economical, is a big winner.

And I say that as a European with some kind of (now, only emotional, I guess) stake in Airbus.

ed. must replace this sticky keyboard.

[Roland99]

11. Good 'toon today

:)

[Nimrod2005]

12. Is the deficit really getting lowered every month?

I keep hearing about this, how accurate is this news? or is it fuzzy math again?

[Maeve]

13. Yes and no

Yes, the report is expected to project that this year’s deficit will be somewhat less gargantuan than last year’s — probably somewhere between $280 billion and $300 billion, versus a $318 billion shortfall in 2005. That’s not much to crow about.

But Mr. Bush is likely to gloat, anyway. Earlier this year, the administration conveniently projected a highly inflated deficit of $423 billion. With that as a starting point, the actual results can be spun to look as if they’re worth cheering.

The razzle-dazzle won’t end there. As he did in his remarks on Saturday, Mr. Bush is sure to use today’s event to credit tax cuts for a projected “surge” in tax revenue. The Treasury is expected to take in about $250 billion more in 2006 than in 2005, for a total take of $2.4 trillion. Devoid of context, the number looks impressive.

In fact, it is $100 billion less than the $2.5 trillion revenue estimate the administration touted when it set out in 2001 to sell its policy of never-ending tax cuts. Even with this year’s bigger haul, real revenue growth during the Bush years will be abysmal, averaging about 0.3 percent per capita, versus an average of nearly 10 percent in all previous post-World War II business cycles. That might be excusable if the recent revenue improvements could reasonably be expected to continue. They cannot. Much of the increase in tax receipts is from corporate profits, high-income investors and super high-earning executives, sources that are just as unpredictable as the financial markets to which they’re inevitably linked.
http://www.nytimes.com/2006/07/11/opinion/11tues1.html?_r=1&oref=slogin

[Roland99]

14. Doesn't include emergency spending ($120 billion?) on Iraq/Afghanistan?

[RawMaterials]

16. not to mention increase in tax's due

to inflation

[54anickel]

53. which in turn lead to more people being hit by the AMT n/t

[Nimrod2005]

18. Thank you for the full explanation...nt

[trogdor]

19. The gloating has already started.

Faceless spokesvoice on NPR talking about how the growing economy (read: Bush tax cuts) are finally working to reduce the deficit that didn't exist six years ago. Turned him off after about a minute in favor of my beloved progressive rock.

[UpInArms]

22. budget deficit means absolutely shitto at this time -

there are too many "off budget" items - the wars in Iraq and Afghanistan - the Katrina emergency funding, etc.

The current account deficit continues to grow - the budget deficit is a fraud.

[Ghost Dog]

41. Unfunded upcoming social security liablities? n/t

[54anickel]

51. Good article Maeve, thanks. This mal-administration did the same

horn-tooting last year, and the year before. There were follow-up articles pointing out the fallacies, but not many made it to the MSM. Good to see the Times print this, too bad it's presented as an Editorial rather than a front-page news article. Where are those inquiring minds journalists are supposed to have?

[Maeve]

54. Ah, be nice to the Times!

heaven knows they are getting beat-up on enough for doing the same damn thing the Wall Street Journal did!

(For those who missed it, Froomkin at the Washington Post did a summary of all the ways anyone could have known about SWIFT before the Times et al published it)
http://www.washingtonpost.com/wp-dyn/content/blog/2006/06/28/BL2006062801268.html

[Ghost Dog]

61. Yeah, be nice to the Times!

Sure, my niece is recently married to an IHT (owned by the NYT) journalist (and she writes for The Economist). It's less the journalists' fault than the editors'. And it's less the editors' fault than the owners (or, major shareholders, or CEOs) and their need for Advertisers. And it's less their fault than it is that of the people who pull their strings...

Pyramids. Houses of Cards. Crashing Down..?

[54anickel]

62. Wasn't meant as a rip on the Times specifically, rather a rip on MSM

journalists in general. Just not a lot of investigative reporting these days - most news reads like a PR press release. I generally like the Times. Krugman pieces more than made up for their carrying Judy Miller :evilgrin:

[Maeve]

66. I know you weren't...wanted to get that plug in for Froomkin!

One of my current favorites...

I agree; the profit isn't in paying reporters to do in-depth anything, so precious little gets investigated. Other than Nancy Grace's "Missing Blonde of the Week", that is.... :eyes:

[54anickel]

68. And a good plug it was! Great to see so many bits and pieces, we

tend to glean here at DU, succinctly rolled up into a single article.

[UpInArms]

35. pictures that speak in trillions

[54anickel]

52. Yet another horror flick! n/t

[UpInArms]

15. daily dollar watch

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

Last trade 85.50 Change +0.06 (+0.07%)

Dollar Continues to Strengthen With Another Fed Hike in the Cards

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Dollar_Continues_to_Strengthen_With_1152569008922.html

US Dollar

The US dollar starts the new week stronger against all of major currencies as it continues to shake off its post non-farm payrolls weakness. The ambiguous message from the mixed NFP report last Friday kept the door open for another rate hike in August while the record high in energy prices hit last week only further escalates the inflation concerns for the Federal Reserve. Many traders were short dollars going into the non-farm payroll release and the rally today was an extended reversal of those trades. Oil is all we have to rely on for the time being as the other inflation gauges such as consumer prices are not due out until next week. CPI comes out on the very same day that Bernanke is scheduled to give his semiannual testimony on the economy, which means that prices could consolidate towards a breakout point on that day. All traders should have July 19th circled on their calendar because at this point, it should be an extremely market moving day. In the meantime, we do have two event risks that could cause some mild volatility in the currency market (Trade Balance and Retail Sales), but unless they come out significantly different from market expectations, they will probably not shift the Federal Reserve’s plans for interest rates by much. The market is still divided on whether another rate hike will be delivered in August, which makes the next few weeks of economic data even more important. Inflation has become such a grave concern for the Federal Reserve that they are increasingly willing to risk inducing a contraction in the US economy at the expense of taming inflation. This is the message that FOMC voting member Kohn gave to the markets last week and one we should listen to carefully. The only pieces of economic data released this morning were wholesale inventories and wholesale sales. Both were stronger than expected and is positive for growth, but by the same token, these are second tier indicators and have less of an influence on the US dollar than the trade balance and retail sales later this week. Hank Paulson was sworn in as Treasury Secretary today and he did not make any mention of the US dollar in his prepared remarks. As a very well respective Wall Street leader, Paulson is one of the best chances that the market has for some meaningful changes in fiscal policy. We should see a more formalized plan from him in the fall. In the meantime, there is still a lot going on in the currency market, including what could be an extremely important Bank of Japan Monetary policy meeting as well as speeches by central bank officials around the world.

...more...

[UpInArms]

20. Commentary: Corporations Aren't People

http://www.alternet.org/story/38406/

"Corporate personhood" gives corporations -- entirely artificial entities created by the state -- the same individual rights that the framers fought and died to secure for flesh-and-blood citizens (or at least for white male property holders, but you get the idea). The doctrine started in England reasonably enough; it was only by considering corporations "persons" that they could be taken to court and sued. But during the 19th century, the Robber Barons and a few corrupt jurists deep in their pockets took the concept to a whole new level. After the Civil War, while many of those same interests were fighting to keep African-Americans from being enfranchised, the doctrine took on new weight -- the Equal Protection clause of the 14th Amendment was extended to corporations, and Thomas Jefferson slowly rolled over in his grave. The trend of granting more and more rights to corporations continues today. (A detailed discussion of how this all developed can be found here.)

<snip>

Which is why we need bold, populist ideas for real structural reform. I say let's rip a page from Karl Rove's Scorched-Earth Politics for Dummies and offer a progressive constitutional amendment that would end this madness once and for all.

That could be as simple as a one-line amendment that rolls back Buckley by explicitly stating that regulating the amount of money donated to campaigns or setting limits on what candidates spend on advertising isn't the same as putting limits on political speech.

But I think something even bolder is in order. I think it's time for a Defense of Human Citizenship Amendment -- language that would strip the "personhood" from corporations and give reformers a fighting chance to establish a true democracy in the United States.

It should be as brief and straightforward as the Republicans' gay marriage amendment:

SECTION 1. Citizenship in the United States shall be conferred only on human beings. Neither this Constitution nor the constitution of any state, nor state or federal law, shall be construed to require that citizenship or the legal incidents thereof be granted to corporations, partnerships, proprietorships or trusts.

[54anickel]

43. I'm on-board! Where do we sign up? This isn't the type of thing an

organization like Move-on or the AFL-CIO is about to take on. Then again, I don't see a lot of our politicians, no matter which party, willing to give the issue the light of day either. If a grass-roots effort should unfold, watch for lots of wedge issues being tossed out from both sides to divert attention...works like a charm every time. :eyes:

[UpInArms]

21. Dirty Secrets of the Temple - How the Federal Reserve Runs the US

http://www.informationclearinghouse.info/article13833.htm

The Federal Reserve Act that began it all must surely rank as one of the most disastrous and outrageous pieces of legislation to the public welfare ever to come out of any legislative body. It may have also have been and still is illegal according to Article 1, Section 8 of the Constitution which happens to be the inviolable law of the land. The article states that Congress shall have the power to coin (create) money and regulate the value thereof. In 1935, the US Supreme Court ruled the Congress cannot constitutionally delegate its power to another group or body. The Congress thus acted in violation of the Constitution it's sworn to uphold and in so doing created the Federal Reserve System that, as will be explained below, is a private for-profit corporation operating at the expense of the public welfare. By its action, our lawmakers committed fraud against the people of the country and so far have gotten away with it without the public even knowing about the harm done.

The shameful result is that what should have arrived stillborn is now the most dominant institution on earth, and all because of what began on a privately owned island with a scary name. But had the Congress acted responsibly, the act of Fed creation might never have happened. The legislation establishing it was so harmful to the public interest, it likely never would have passed if it hadn't been shepherded through a carefully prepared Congressional Conference Committee meeting scheduled for between 1:30 - 4:30 AM (when most members of Congress were asleep) on December 22, 1913. The Act was then voted on the next day and passed although many members of the body had left for the Christmas holidays and most others who stayed behind hadn't had time to read it or know its contents. Sound familiar? Still it passed (like a thief in the night) and was signed into law by an unwitting or complicit Woodrow Wilson who later admitted he made a terrible mistake saying "I unwittingly ruined my country." But it was too late for postmortems, and the American people have paid dearly ever since. It's about time the public understood that and began to demand an end to over 90 years of damage done.

It almost happened 43 years ago when one president decided to act on behalf of the people who elected him. That man was John Kennedy, who before his death planned to end the Federal Reserve System to eliminate the national debt a central bank creates by printing money and loaning it to the government. That debt has now risen to over $8,400,000,000,000 ($8.4 trillion) which every taxpayer must pay for and has done so in the amount of nearly $174,000,000,000 ($174 billion) in just the first three months of 2006. This debt service is now an annualized amount exceeding two-thirds of a trillion dollars. It's made the bankers rich (which was the whole idea) and the public poorer because we're taxed to pay the tab. It's no exaggeration to call this the greatest financial scam in world history and one that gets greater every day.

[UpInArms]

27. Commentary: Why the Fed is overshooting with rate hikes

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BBB4FB164%2D1D10%2D4E62%2D830C%2D53E7A6654B60%7D&symbol=

In the absence of developments like these, the only way to keep inflation from getting out of hand is for the Fed to raise interest rates to the point where people can't afford to borrow, and thus have less buying power.

This leaves business stuck with lots of unsold merchandise, which is costly to maintain -- especially in an environment in which interest rates are rising. So business naturally responds by cutting prices and resisting higher costs asked by its suppliers.

In the process, unemployment rises and corporate profits fall. Needless to say, the stock market usually takes a header as well.

This is painful, as you can imagine, but it usually does the job. The question is how high must unemployment go and how much do profits and stock prices have to fall before price pressures settle down?

Monetary policy being an imprecise science, the answer is hard to determine in advance. It's especially true since inflation tends to keep rising long after the economy begins to slow down.

[54anickel]

65. The Daily Reckoning reckons they're just reloading the gun

http://www.dailyreckoning.com/Issues/2006/DRUS070706.html

snip>

“By August, the Fed will be thinking about lowering rates,” says old-timer, Richard Russell.

Russell is usually right. And we admit to a certain amount of confusion here at The Daily Reckoning. But what war is Bernanke really fighting - against inflation or against deflation? Which is the bigger threat?

snip>

Everybody likes a credit boom. They all believe they have more money. This is the dirty little secret of modern central banking. It only works by stealth and fraud - silently debauching the currency so that people make mistakes. The businessman believes there is more demand for his products than there really is. The consumer believes he has more purchasing power than he really has. The lender believes the borrower is a better risk than he really is. All these mistaken judgments lead to spending, investing and lending - which look at all the world like a bona-fide boom.

snip>

If, as we believe, we’re at the beginning of the disaster stage, the Fed’s real enemy is not inflation at all; it’s deflation. Typically, a credit contraction shrinks everything down with it. Earnings go down. Consumer spending is reduced. GDP growth falls...or even goes negative. And prices for most financial assets dive.

Both Bernanke and Greenspan recognized the deflation enemy, and raised rates - not to fight inflation (although that is what they appeared to be doing), but to “reload the gun.” They had to hike rates in order to be able to cut them to fight deflation. Now, with 525 basis points from here to zero, at least the Fed has a new round of ammunition.

But what will get them to pull the trigger? The most likely signal of deflation is a slowdown in consumer spending. Since consumer incomes are either flat or falling, consumer spending depends on the real estate market continuing fat and flourishing. And for that, the housing market must be propped up like a corpse at a viewing. The Fed must try to keep house prices from collapsing - at any cost! But, the housing market depends on long rates, not short rates. Mortgages are long-term debt. And long-term lending rates depend largely on lenders’ views on inflation. If they think they have a real inflation fighter at the Fed, they are most likely to lend at low rates. If, on the other hand, they see the Fed’s knees weakening, or its hands toiling over a white flag, they’re likely to want higher rates.

This explains why the Fed is still raising rates, even though it sees deflation as the biggest threat. It explains why Ben Bernanke may raise rates again in August, even though it is deflation he really fears. He is merely trying to keep mortgage rates low so the real estate market won’t fall apart.

more...

[UpInArms]

28. Printing Press Hums: Fed adds reserves through overnight system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-11T133355Z_01_N11342503_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, July 11 (Reuters) - The Federal Reserve said on Tuesday that it added temporary reserves to the banking system through overnight system repurchase agreements.

Fed funds last traded at 5.25 percent, the Fed's target for the benchmark overnight lending rate.

For further details on the operation, see http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

29. Treasury yields move to lows after deficit forecast +India Train Explosion

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-11T132925Z_01_NYG000275_RTRIDST_0_MARKETS-BONDS-URGENT.XML

NEW YORK, July 11 (Reuters) - U.S. Treasury debt prices extended gains on Tuesday, pushing the benchmark 10-year note's yield to the lowest in three weeks, after the White House cut its fiscal 2006 U.S. budget deficit forecast and there were reports of explosions on trains in Mumbai, India.

Benchmark 10-year notes <US10YT=RR> rose 5/32 in price for a yield of 5.108 percent, versus 5.13 percent late on Monday. Bond yields and prices move inversely.

[UpInArms]

55. Explosions (plural) - hit packed commuter trains (plural) in India

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-11T140822Z_01_N11357433_RTRIDST_0_MARKETS-BONDS-UPDATE-1.XML

NEW YORK, July 11 (Reuters) - U.S. Treasury debt prices rose on Tuesday, extending earlier gains, on buying apparently spurred by news of blasts hitting commuter trains outside the city of Mumbai in India.

"It may be generating a safe haven bid," John Canavan, analyst at Stone and McCarthy Research Associates in Princeton, New Jersey, said of the the explosions which hit packed commuter trains in India. For details see .

Prior to reports of the blasts, the Treasuries market was supported by investors shifting money into bonds from stocks on worries about future stock performance and news of the White House reducing its fiscal 2006 budget deficit forecast.

...more but nothing else about the explosions hitting trains...

[UpInArms]

57. Six blasts hit Bombay's commuter rail network at rush hour

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCA1F2B9B%2D9E4A%2D4841%2D9634%2DEF30B9FE6344%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Six explosions struck Bombay's commuter rail system during rush hour Tuesday, reported the Associated Press, citing police and Indian media. The blasts ripped apart train compartments and left dozens of injured people, the AP reported.

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B7CC71FDA%2D2641%2D4F40%2D852D%2DB46F74CA35E3%7D&symbol=

NEW YORK (MarketWatch) - Explosions have struck trains in Mumbai during the evening rush hour Tuesday, according to media reports.

The Associated Press, citing police and the Indian media, said seven explosions killed or hurt dozens of people.

Bombay is India's financial center. The city's commuter rail network is among the most crowded in the world, the AP said.

Reuters said the blasts hit at least five packed commuter trains in Bombay. The news agency cited a local television news channel as saying as many as 30 people have been reported dead.

The explosions followed a series of grenade attacks hours earlier that killed seven people in Sringar, Indian Kashmir's main city, according to Reuters.

[54anickel]

74. Serial blasts in India kill over 100

http://www.theage.com.au/news/world/serial-blasts-in-india-kill-over-100/2006/07/12/1152383749520.html

More than 100 people were killed yesterday in seven bomb explosions at rail stations and on trains in India's financial hub, Mumbai police said.

The Mumbai police commissioner, A.N. Roy, said 135 people had died and over 250 had been injured.

He said the blasts had been caused by bombs. "It is a bomb blast. We are not sure if it is RDX or not,'' Mr Roy said, referring to the possible use of high-powered plastic explosives.

snip>

A senior Mumbai police official, PS Pasricha, said the explosions were part of a well-co-ordinated attack. The country's home minister told Indian television that authorities had information that an attack was coming but did not know the time or place.

snip>

Pranay Prabhakar, the spokesman for the Western Railway, confirmed that seven blasts had taken place. He said all trains had been suspended in Mumbai, and he appealed to the public to stay away from the train stations of the city of 16 million, India's financial and commercial centre and principal port on the Arabian sea.

more...

http://www.theage.com.au/ffximage/2006/07/12/svMUMBAIBLAST_wideweb__470x350,0.jpg

[Ghost Dog]

88. Fuck.

BBC: http://news.bbc.co.uk/2/hi/south_asia/5169332.stm

Local reports said the bombs appeared to have targeted first-class compartments, as commuters were returning home from the city's financial district.

<snip>

A medical student at a hospital in Parel, which has received many of the wounded, told the BBC News website the "floors are filled with bloodstains".

"There were so many , I couldn't really count," Sunny Jain said.

"There are not enough ambulances and many people are making their own way to the station. They are coming in taxis and by foot."

There was no immediate claim of responsibility for the attacks, which are the worst in the city for more than a decade.

<snip>

Home Minister Shivraj Patil told reporters authorities had "some" information an attack was coming, "but place and time was not known".

<snip>

Correspondents say Tuesday's bombers could hardly have struck a target with greater impact - both practical and psychological.

The city's suburban train system is one of the busiest in the world, carrying more than six million commuters a day.

Times of India: http://timesofindia.indiatimes.com/articleshow/1733318.cms

Terror Tuesday: LeT, SIMI hand in Mumbai serial blasts

Terror attack on Mumbai trains was carried out by Lashkar-e Toiba and Students Islamic Movement of India activists to trigger communal conflagration, intelligence sources said.
< 11 Jul, 2006 2329hrs IST>
Over 140 killed in Mumbai serial blasts: http://timesofindia.indiatimes.com/articleshow/1733321.cms

The Hindu: http://www.hindu.com/thehindu/holnus/

140 dead, 257 injured as series of blasts rock Mumbai trains
Mumbai, July 11 (PTI): At least 140 people were killed and 257 injured in a string of seven terror blasts that tore through first class compartments of suburban trains around 6 p.m during the evening peak hour traffic here today.As the blasts ripped ...

[54anickel]

33. Nice article with some great quotes (so far - I'm 1/2 way thru it). Thanks

UIA!

Rothschild: "Give me control over a nation's currency and I care not who makes its laws."
Proverbs 22-7: "The rich rule over the poor, and the borrower is servant to the lender."

Madison and Jefferson knew what the hell was going on with the Money Changers.

I liked this part on the WUHBPH (Greenspin):

Things were especially out of hand during the tenure of Alan Greenspan - a Fed chairman no one should have found much reason to cheer either before he headed the Fed when he was a presidential advisor or during the time he did. It was only after his economic consulting firm failed that he went into government service likely because he needed a new line of work. There he managed to become a larger than life seer of central banking who was elevated to near sainthood by the business pundits who thought under his tenure the skies were only blue and the few clouds in sight always had silver linings. Now Alan is retired to the greener pastures of lucrative book contracts and speaking engagements, which shows when you do your job well for the rich and powerful (at the expense of the rest of us) who gave it to you, you'll be well rewarded in the end. It's likely the new Fed chairman has taken note and will dutifully try to follow in the tradition that preceded him.

Interesting and different view of Lincoln's Greenbacks too. I thought the greenback was a method to get a national bank for the Whig party who wanted to be able to print up money with no backing of silver or gold. Hmmm, would that have been any better than the international banking system looking on in Lincoln's time? I couldn't begin to imagine what 3 stooges of Raygun, Bush I and Bush II would do with that sort of power. :freak: Oh wait, isn't that pretty much what they WERE doing under Greenspin? :evilgrin:

I gotta finish reading the rest later!

[Roland99]

34. Along with wanting to pull out of Vietnam, is, imo, why Kennedy was shot.

[Ghost Dog]

44. "It almost happened 43 years ago

when one president decided to act on behalf of the people who elected him. That man was John Kennedy, who before his death planned to end the Federal Reserve System to eliminate the national debt a central bank creates by printing money and loaning it to the government."

"Who killed Cock Robin?" "I," said the Sparrow,
"With my bow and arrow, I killed Cock Robin."
"Who saw him die?" "I," said the Fly,
"With my little eye, I saw him die."
"Who caught his blood?" "I," said the Fish,
"With my little dish, I caught his blood."
"Who'll make the shroud?" "I," said the Beetle,
"With my thread and needle, I'll make the shroud."
"Who'll dig his grave?" "I," said the Owl,
"With my pick and shovel, I'll dig his grave."
"Who'll be the parson?" "I," said the Rook,
"With my little book, I'll be the parson."
"Who'll be the clerk?" "I," said the Lark,
"If it's not in the dark, I'll be the clerk."
"Who'll carry the link?" "I," said the Linnet,
"I'll fetch it in a minute, I'll carry the link."
"Who'll be chief mourner?" "I," said the Dove,
"I mourn for my love, I'll be chief mourner."
"Who'll carry the coffin?" "I," said the Kite,
"If it's not through the night, I'll carry the coffin."
"Who'll bear the pall? "We," said the Wren,
"Both the cock and the hen, we'll bear the pall."
"Who'll sing a psalm?" "I," said the Thrush,
"As she sat on a bush, I'll sing a psalm."
"Who'll toll the bell?" "I," said the bull,
"Because I can pull, I'll toll the bell."
All the birds of the air fell a-sighing and a-sobbing,
When they heard the bell toll for poor Cock Robin.

http://www.rhymes.org.uk/who_killed_cock_robin.htm

ed. Wiping an eye.

[UpInArms]

90. ..

:cry:

[Ghost Dog]

98. "Knowing the truth about the Kennedy Assassination

"Knowing the truth about the Kennedy Assassination is understanding America today." - Wim Dankbaar

http://www.jfkmurdersolved.com/index1.htm

[UpInArms]

49. Treasury defends terror finance tracking program

We have politicized every branch and office in our government :grr:

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B08113BAA%2D5213%2D404C%2D8C34%2D9044C8930597%7D&symbol=

WASHINGTON (MarketWatch) -- A top Treasury official again defended the Bush administration's terrorist finance tracking program in congressional testimony Tuesday, and repeated criticism of the media for disclosing its existence.

The benefits of the program have been "incalculable," Treasury Undersecretary Stuart Levey told a House Financial Services subcommittee in prepared testimony.

Specifically, Levey said, it aided in capturing the operations chief of the group that masterminded the 2002 bombings in Bali and it supplied evidence that confirmed the identity of a major Iraqi terrorist facilitator and financier.

He said Treasury can't search data for non-terrorist-related crime like tax evasion or economic espionage.

The New York Times and other newspapers including the Wall Street Journal reported on the program in late June.

Prompted by the stories, the House voted June 30 to condemn leaks of classified information to the public. The nonbinding measure was sponsored by Financial Services Committee Chairman Michael Oxley, R-Ohio.

...more...

[54anickel]

58. Notice how he narrowly defines what they can't search for? So typical

of this mal-administration. Nothing but half-truths and bald-faced lies.

He said Treasury can't search data for non-terrorist-related crime like tax evasion or economic espionage.

Sure leave a lot of other reasons wide open. Wonder if they're looking at charitable and political donations/support. Probably trying to figure out who's been giving to DU. A lot easier than having Agent Mike trying to trace identities of screen names - now he can focus on content. :hide:

[54anickel]

64. Federal Reserve Policy Destroys the Value of Your Savings (Ron Paul)

http://www.house.gov/paul/tst/tst2006/tst071006.htm

For years officials at the Federal Reserve Bank, including Chairman Bernanke himself, have assured us that inflation is under control and not a problem-- even as the price of housing, energy, medical care, school tuition, gold, and other commodities skyrockets.

The Treasury department parrots the Fed line that consumer prices, as measured by the consumer price index (CPI), are under control. But even many mainstream economists now admit that CPI grossly understates true inflation. The most glaring problem is that CPI excludes housing prices, instead tracking rents. Everyone knows the cost of purchasing a home has increased dramatically in the last ten years; in many regions housing prices have more than doubled in just five years. So price inflation certainly is alive and well when to comes to the largest purchase most Americans make.

When the Federal Reserve increases the supply of dollars in circulation, both paper and electronic, prices must rise eventually. What other result it possible? The supply of dollars has risen much faster than the supply of goods and services being chased by those dollars. Fed policy makers have more than doubled the money supply in less than ten years. While Treasury printing presses can print unlimited dollars, there are natural limits to economic growth. This flood of newly minted US currency can only increase consumer prices in the long term.

Mr. Bernanke has stated quite candidly that he will use government printing presses to stimulate the economy as necessary. He is famous for joking that he would endorse dropping money from helicopters if needed to prevent an economic slowdown. This is nothing short of an express policy to destroy our money by inflation. Every new dollar erodes the value of existing dollars based on simple supply and demand. Does anyone really believe the Treasury can make us rich simply by printing more money?

snip>

The irony is that many of the Fed’s biggest cheerleaders are the same supposed capitalists who denounced centralized economic planning when practiced by the former Soviet Union. Large banks and Wall Street firms love the Fed’s easy money policy, because they profit at the front end from the resulting loan boom and artificially high equity prices. It’s the little guy who loses when the inflated dollars finally trickle down to him and erode his buying power. Someday Americans will understand that Federal Reserve bankers have no magic ability-- and certainly no legal or moral right-- to decide how much money should exist and what the cost of borrowing money should be.

more...

[54anickel]

23. Tuesday tech troubles

Nasdaq set to open lower after warning from Lucent, Alcoa sales disappointment.

http://money.cnn.com/2006/07/11/markets/stockswatch/index.htm

NEW YORK (CNNMoney.com) -- A warning from telecom equipment maker Lucent Technologies could push tech stocks lower when U.S. markets open Tuesday.

At 6 a.m. ET, futures pointed to a lower start for the tech-heavy Nasdaq, but S&P futures indicated a higher beginning for the broader markets.

Lucent (Charts) said Monday it expects third-quarter earnings to fall due mainly to slower sales of wireless network equipment in North America.

snip>

The warning came on the heels of another tech disappointment, as corporate data storage equipment maker EMC (Charts) reported results that missed its own targets.

"What's hurting the markets now is there's a lot of crosswinds and not enough tailwinds," said David Kelly, economic advisor with Putnam Investments. "What should be the tailwind helping the market is strong corporate earnings. But when we have Lucent and Alcoa disappointing, that takes away the help we could see from earnings.

"Instead we're left to focus on crosswinds such as monetary policy," Kelly said.

more...

[UpInArms]

25. M/I Homes orders drop 35%; most markets are `challenging'

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BEA88C11F%2D7CF8%2D423A%2D8598%2D464ED69E7CBA%7D&symbol=

BOSTON (MarketWatch) -- M/I Homes Inc. reported second-quarter contracts fell 35% and said the situation in most of its markets is difficult.

The Columbus, Ohio, home builder (MHO : 34.67, +0.11, +0.3% ) said orders totaled 764 versus 1,172 in the year-
earlier quarter.

New contracts were hurt "by a combination of factors, including reduced traffic, softening demand, increased cancellation rates and higher unsold inventory levels," Chief Executive Robert H. Schottenstein said in a statement.

"As evidenced by these factors, housing conditions in most of our markets are challenging," he added.

The company delivered 987 homes in the quarter, up from 853 a year earlier. At quarter's end, the company's backlog of homes awaiting construction was 2,889 units, down 13% from 3,310 units. In dollar value, the backlog is $1.03 billion, down 2% from $1.05 billion.

...more...

[UpInArms]

83. Commentary: Housing bust will also affect retailers and suppliers

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B045BB3F2%2DB813%2D477C%2DA9D8%2DCB4AD1812FEC%7D&symbol=

JUPITER, Fla. (M&M) -- Looking to profit from a housing downturn? Focus on the "second round" bust stocks.

The housing stocks have been clobbered. Taken out back and shot, really. Stocks such as Toll Brothers (TOL : 25.31, -0.47, -1.8% ) , Lennar (LEN : 42.61, -1.29, -2.9% ) and Centex (CTX : 49.75, -0.88, -1.7% ) have fallen drastically in the past year, and for good reason:

Home sales are weakening. Existing home sales have dropped in seven out of the past eight months. New home sales are down almost 6% from a year ago, and the National Association of Home Builders' Housing Market Index, which measures home builder sentiment, just plunged to an 11-year low.

Inventories are skyrocketing. Existing home supply skyrocketed 41% year-over-year to 3.6 million in May. That's the highest ever, according to the National Association of Realtors. New homes? 556,000 were up for sale in May. That was just shy of April's 560,000, which was the most in U.S. history (Census Bureau figures go all the way back to 1963).

Construction activity is slumping. Until recently, builders didn't cut back. They tried to build their way through the sales slowdown. In fact, housing starts surged to a seasonally adjusted annual rate of 2.27 million units in January -- the most since 1973. But that's changing fast. Housing starts have dropped in three out of the past four months. Overall construction spending, meanwhile, sank 0.4% in May - the biggest monthly decline since September 2004.

Result: Housing prices are starting to stagnate -- and even fall -- in many parts of the country. That's shutting down the "housing ATM." Homeowners can no longer just do "cash out refis" every few months, and fritter the money away on granite countertops, maple cabinets, and hot tubs. They can't take out $50,000 home equity lines of credit at will because the equity just isn't there.

...more...

[Roland99]

95. Gee, not entirely unlike the Dot-Com bust.

[UpInArms]

26. pre-opening blather

09:15 am : S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -4.0.

09:00 am : S&P futures vs fair value: -0.7. Nasdaq futures vs fair value: -3.2. Still shaping up to be a sluggish start for the indices as oil prices back above $74 per barrel add to an already cautious tone. Crude oil futures have recently hit morning highs after Iran's president reportedly said they are determined to complete its enrichment of uranium, which could result in crucial supply disruptions and keep energy prices elevated -- a concern addressed by the Fed that has the potential to sustain inflation pressures.

08:30 am : S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -5.8. Futures indications are off their best levels and are now signaling a lower open for both the Nasdaq and the SnP 500. Even though some of the earnings news is welcoming for investors, like Pepsi Bottling Group (PBG) topping forecasts by two cents and raising its FY06 outlook, the absence of economic data is placing even more emphasis on the misfortunes of blue chips like LU and AA, so far leaving the market reluctant to regain momentum perhaps until the earnings picture becomes clearer over the next couple of weeks.

08:00 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: -2.0. Futures versus fair value suggest a modestly flat to lower open as earnings season officially gets underway. Kicking things off last night was Alcoa (AA), which topped analysts' earnings expectations by four cents but fell short of forecasts on the top line, pushing shares of the Dow component down 3% in pre-market trading. Also raising worries about slowing growth has been a Q3 sales and profit warning from Lucent (LU), which only adds to the uncertainty about tech's growth prospects and the influential group's ongoing struggles as this year's worst performing sector.

[WePurrsevere]

31. Thank you for doing this. I may not post in these threads very often but

I do read them with great interest and appreciation. B-)

[UpInArms]

46. Welcome to the SMW, WePurrsevere!

Come on in anytime - the water is fine!

:hi:

[UpInArms]

37. Katrina Victims and Insurer Square Off in a Courtroom

http://www.nytimes.com/2006/07/11/business/11insure.html?ex=1310270400&en=09329e1f319e98ce&ei=5088&partner=rssnyt&emc=rss

(free registration or try www.bugmenot.com)

GULFPORT, Miss., July 10 — A federal judge on Monday began hearing a groundbreaking trial that could signal whether thousands of people whose homes were destroyed by Hurricane Katrina can receive payouts for losses their insurance companies contend were caused by flooding.

Lawyers for Paul and Julie Leonard say the couple were misled by their insurance agent and then were denied much of their claim for their home in Pascagoula, Miss., without a full review of the facts.

The couple’s insurer, Nationwide Mutual Insurance, argued that while wind damage is covered by its homeowners’ policies, damage from flooding is excluded, including damage from Katrina’s wind-driven storm surge of water.

The trial, being heard without a jury by Judge L. T. Senter Jr. of Federal Court for the Southern District of Mississippi, is the first legal test for insurers who say their policies do not cover floods. It could be a barometer for other lawsuits filed against insurance companies by thousands of policyholders.

Mr. Leonard said he asked a Nationwide agent in 1999 if he should get flood coverage. “You don’t need that,” the agent replied, according to one of the couple’s lawyers.

<snip>

Zach Scruggs said Nationwide paid $1,600 to the Leonards for $130,000 of damage to their home, several hundred yards from Mississippi Sound near the eastern end of the state’s shoreline. He said that was $500 less than the premiums the family paid to Nationwide that year.

...more...

[UpInArms]

38. Banks earn record fees from M&A boom - Dealogic

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-07-11T134354Z_01_L11524830_RTRIDST_0_FINANCIAL-DEALOGIC-FEES.XML

LONDON, July 11 (Reuters) - Investment banks earned $34.5 billion in fees from advising on M&A and from selling bonds and equities globally in the first half of this year, the highest total for the first six months of any year on record, according to data from finance industry analyst Dealogic on Tuesday.

J.P. Morgan Chase (JPM.N: Quote, Profile, Research) led Dealogic's ranking of investment banking revenue, earning $2.4 billion in fees in the first half of 2006, representing a 7 percent share.

Fees on M&A and other deals are not routinely disclosed by the banks, so Dealogic's data is based on its own financial models.

The banks have enjoyed a bumper first half where a surge in merger and acquisitions activity and financing via the capital markets to pay for deals has boosted revenues and profits.

Goldman Sachs (GS.N: Quote, Profile, Research), Lehman Brothers (LEH.N: Quote, Profile, Research) and Morgan Stanley (MS.N: Quote, Profile, Research), for example, last month reported big increases in profits for the second quarter of the year.

...more...

[UpInArms]

39. India Stops Privatization, Casting Doubt on Reforms

http://www.nytimes.com/2006/07/11/business/worldbusiness/11rupee.html?ex=1310270400&en=6ea0b92248e23c94&ei=5088&partner=rssnyt&emc=rss

(I wonder if that "train explosion" was some type of hidden message? Should I don my :tinfoilhat: ?)

BANGALORE, India, July 10 — A decision by the Indian government to halt all sales of stakes in state-owned companies could crush investors’ interest as it raises fear that a larger program of economic change will be bogged down in politics.

Last week, Prime Minister Manmohan Singh said in a statement that privatization plans would be stopped, pending further review, after a coalition party whose support is crucial for the survival of Mr. Singh’s government threatened to withdraw that support.

Amid rumors that the prime minister had resigned over the halting of the privatization program, the country’s bellwether stock market index fell 258 points, a 2.4 percent slide. The prime minister’s office later denied the rumors.

“This is not good news,” said Chetan Ahya, the executive director and India economist of JM Morgan Stanley in Mumbai, formerly Bombay, referring to the halting of the stake sales. Global investors will view this as a “reaffirmation of the government’s inaction over privatization,” Mr. Ahya said.

<snip>

But investors fear that this stoppage may signal a larger setback, one that impedes not only the privatization of hundreds of state-owned companies, but also the entire process of economic restructuring. Those sales also have helped the government trim its budget deficits.

...more...

[RawMaterials]

78. Let me join in putting on that hat

:tinfoilhat:

[UpInArms]

40. Britain: Extradition for Bankers in Enron Case

http://www.nytimes.com/2006/07/11/business/worldbusiness/11fobriefs-002.html?ex=1310270400&en=23e6d978ee76b4c7&ei=5088&partner=rssnyt&emc=rss

Three former bankers are set to be extradited from Britain to the United States on Thursday to face fraud charges related to the collapsed energy company Enron after the failure of appeals for them to be tried in Britain. The three, David Bermingham, Gary Mulgrew and Giles Darby, will fly to Houston in the custody of United States marshals, their lawyer, Mark Spragg, said. They will ask to be released on bail so that they can return to Britain to prepare their cases, Mr. Spragg said. The bankers, who worked for NatWest bank, now part of Royal Bank of Scotland, are charged with having conspired with Enron executives over the sale of a stake in an Enron entity in 2000 for less than it was worth, which made them $7.3 million.

[Ghost Dog]

59. I've no comment on this case itself

...other than to say I have the impression there is a case. And observe that Enron investors and workers who lost out were international.

But I'd like to add this comment from the Guardian, July 4th (and there's plenty more in their pages): http://business.guardian.co.uk/story/0,,1812473,00.html

This morning, Sir Menzies said the department should act to put right an injustice caused by "a piece of ineptitude" by the government.

Under the treaty - ratified by London but not Washington - no prima facie evidence has to be produced and it does not matter that the alleged offence happened in the UK and is not being pursued by British authorities.

Sir Menzies demanded action to halt the extradition. "What they could do is put an Act of Parliament quickly through, suspending any obligations under the treaty until such time as the United States Senate - which has the constitutional responsibility in America - ratifies the treaty," he told BBC Radio 4's Today programme.

"We have this extraordinary situation in which we essentially have a unilateral treaty. Both countries signed this treaty. Britain has ratified it. We've changed our domestic legislation so it conforms to the treaty.

"But in the United States the Senate - largely under the influence of the Irish lobby, which is determined to prevent any question of suspected IRA terrorists being extradited back to the United Kingdom - simply refuses to sign.

"It's a piece of ineptitude on the part of the Government, and particularly the Home Office, which has got to be put right."

This refers to the new 'patriotic' UK-US extradition treaty whereby the UK extradites UK citzens and residents to the US for trial (and don't even mention 'rendition') just because the US asks the UK to do so, without having to present prima facie evidence (although in this case some evidence has been presented). The US, on the other hand, agreed but has not ratified in the Senate, and therefore does not, no way, do the same for the UK.

[UpInArms]

42. US consumer pessimism persists on energy worry-IBD

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-11T140016Z_01_NYD000021_RTRIDST_0_ECONOMY-CONSUMERS-IBD-URGENT.XML

NEW YORK, July 11 (Reuters) - U.S. consumers' confidence level ticked up in July, helped by a fairly buoyant economic climate, but higher energy prices and geopolitical worries kept their overall mood pessimistic, a survey showed on Tuesday.

Investor's Business Daily and TechnoMetrica Market Intelligence said their IBD/TIPP Economic Optimism Index stayed in pessimistic territory, rising 1.1 points, or 2.4 percent, to 47.3 in July. A reading below 50 indicates pessimism.

The index has been stuck beneath 50 for five months in a row, the survey said.

"High energy prices continue to hurt consumer confidence, and along with other world events, have been instrumental in keeping the index below 50," said Raghavan Mayur, president of TIPP, a unit of TechnoMetrica Market Intelligence, IBD's polling partner.

...more...

[UpInArms]

45. 10:14 EST numbers and blather

Dow 11,055.86 -47.69 (-0.43%)
Nasdaq 2,100.21 -16.71 (-0.79%)
S&P 500 1,263.11 -4.23 (-0.33%)
10-Yr Bond 5.102 -0.28 (-0.55%)

NYSE Volume 392,241,000
Nasdaq Volume 321,779,000

10:00 am : Little changed since the last update as President Bush provides details of his administration's mid-year review. Within the last 20 minutes, investors have received confirmation that a growing economy during the first half of the year has resulted in large tax collections from corporations, allowing the White House to trim its budget deficit estimates by 30% to $296 bln. Nevertheless, profit warnings and geopolitical concerns (i.e. Iran's ongoing nuclear ambitions and reports of bomb blasts in India) continue to act an overhang. DJ30 -25.14 NASDAQ -8.39 SP500 -1.94 NASDAQ Dec/Adv/Vol 1685/702/252 mln NYSE Dec/Adv/Vol 1668/869/196 mln

09:40 am : Stocks open with lower as earnings season begins with a whimper, leaving investors questioning companies' ability to grow profits in a rising interest rate environment. Per usual, Dow component Alcoa (AA 32.01 -1.40) officially kicked things off last night, reporting a 62% profit improvement; but a shortfall on the top line and recognition that Q3 is a seasonally weak period have prompted consolidation in the possible takeover candidate, pushing AA shares down more than 4% already. Lucent Technologies (LU 2.25 -0.09) warning that Q3 sales and earnings will miss expectations is also weighing on sentiment, especially technology which continues to struggle following warnings from EMC, AMD and MMM. DJ30 -26.49 NASDAQ -8.36 SP500 -1.92 NASDAQ Vol 92 mln NYSE Vol 74 mln

[UpInArms]

48. Gold rebounds from three days of selling (@ $633 oz)

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BEBF75F36%2D6A67%2D4329%2DA3AB%2D1B9F07547E05%7D&symbol=

NEW YORK (MarketWatch) - Gold futures rose Tuesday in a recovery from three straight sessions of losses, rising with the broader commodities market.
Gold for August delivery was last up $6.90 at $633.0 an ounce on the New York Mercantile Exchange.

Other metals prices also posted gains. Silver added 22 cents at $11.330 an ounce, platinum rose $13.20 to $1,243.90 an ounce and palladium was up 30 cents to $324.0 an ounce. Copper added 4.25 cents at $3.625 a pound.

"We're trading off the energies and the lower dollar," said Charles Nedoss, gold analyst at the Peak Trading Group in Chicago. "You've got crude up about 39 cents overnight. As the dollar pulls back, you'll see good support for gold."

Gold's next resistance level stands at $640 an ounce, Nedoss said.

...more...

[UpInArms]

56. Swiss Re Announces First GE Layoffs (2,000 jobs)

http://www.insurancejournal.com/news/international/2006/07/11/70226.htm

Swiss Re – the world's biggest reinsurer since it completed the acquisition of GE Insurance Solutions – has lost no time in reducing its workforce. In a move it characterized as a "process to capture efficiency gains," the Company announced that it has "reduced in excess of 250 positions, particularly at management level."

The job reductions constitute the "first phase" of a two step plan. In the second phase, to be completed over the next four months, Swiss Re said it would "finalize the composition of its operating units worldwide, leading to an overall workforce reduction of up to 2000 positions." It plans to complete the process by the end of 2007.

Swiss Re said it "will achieve the job reductions through a mix of lay-offs and natural attrition. Large office locations including Zurich, London, Armonk, Kansas City and Munich will be most affected. Swiss Re is committed to providing all employees affected with appropriate separation packages including professional career support."

[UpInArms]

60. 10:54 EST numbers, blather and gotta run!

Dow 11,029.35 -74.20 (-0.67%)
Nasdaq 2,095.88 -21.05 (-0.99%)
S&P 500 1,259.65 -7.69 (-0.61%)
10-Yr Bond 5.096 -0.34 (-0.66%)

NYSE Volume 654,167,000
Nasdaq Volume 534,411,000

10:30 am : Indices extend their reach into negative territory amid the absence of notable industry leadership. Despite some bargain hunting interest prompting a small rebound in the semiconductor group, Lucent's (LU 2.24 -0.10) warning and Microsoft's (MSFT 23.13 -0.37) Bill Gates merely citing an 80% chance of Vista being ready in January, have left Technology as the day's worst performer again. To wit, the tech-heavy Nasdaq has already matched yesterday's 0.6% pullback. Financials, Industrials and Consumer Discretionary are also noticeably lower, offsetting strong follow-through buying in the Energy (+1.1%) sector as crude oil prices climb back above $74 per barrel. DJ30 -62.83 NASDAQ -17.47 SOX +0.4% SP500 -5.17 NASDAQ Dec/Adv/Vol 1870/712/396 mln NYSE Dec/Adv/Vol 1824/1006/304 mln

10:00 am : Little changed since the last update as President Bush provides details of his administration's mid-year review. Within the last 20 minutes, investors have received confirmation that a growing economy during the first half of the year has resulted in large tax collections from corporations, allowing the White House to trim its budget deficit estimates by 30% to $296 bln. Nevertheless, profit warnings and geopolitical concerns (i.e. Iran's ongoing nuclear ambitions and reports of bomb blasts in India) continue to act an overhang. DJ30 -25.14 NASDAQ -8.39 SP500 -1.94 NASDAQ Dec/Adv/Vol 1685/702/252 mln NYSE Dec/Adv/Vol 1668/869/196 mln

Have to get some work done! :hi:

[54anickel]

63. Why the Fed is really done

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/WhyTheFedIsReallyDone.aspx

The Fed wants to be loved. It doesn't want to be the tough cop. So it's done fighting inflation and the rate hikes are over. That's started a rally, but it won't last.

By Bill Fleckenstein

Let's talk about the Fed, shall we? Since, for the moment, what it may or may not do next drives so many markets, I'd like to share my expectations about the Fed's future activity.

Weaker-economy' wand hides inflation
My belief is that the Fed really didn't want to tighten one more time as it did last month, but it was forced to because various markets had essentially been "laughing" at it. Now the Fed thinks it has reclaimed its credibility by scaring markets with its tough talk. If the economic data begin to show clear signs of a slowdown (which is what I anticipate), the Fed will feel comfortable proclaiming that weaker economic activity will slow inflation down.

As I have said, I don't believe that the Fed is really worried about inflation at all. But I do believe that the Fed will be extremely concerned about the economy as it slows. Fed chairman Ben Bernanke has his deflation fears, and above all else, we must remember that the Fed is run on the applause meter. Fed members just want to be loved. I think that is the most important thing to keep in mind.

None of these central bankers have one shred of former Fed Chairman Paul Volcker in them. If that were the case, they would have done something about inflation long ago, instead of hiding behind their pet inflation statistic, which purports to show that there isn't any (thanks to various and sundry "calculated" distortions).

A banker who brooks no bubbles
One central banker who understands inflation in its various forms is First Deputy Governor Eva Srejber of Sweden's Riksbank -- who, in a speech last week about asset bubbles, showed that the applause meter has no place in the responsible conduct of monetary policy:

"Those who maintain that there is too much uncertainty to dampen (an asset) price rise via interest rate adjustments are thus of the opinion that it is better to wait until a correction of abnormally high asset prices is a fact, and take action then. Many believe that it is important in such a case to act forcefully, so as to prevent a deep recession.

"However, in my opinion and that of others, the risk of such an approach is in overdoing it and thereby delaying a necessary adjustment of balance sheets and debt levels. New imbalances in other markets could then arise, and the process will begin again. When the situation turns next time in other asset markets, there is a greater risk of reaching the zero-interest rate level. Many central banks have acted in this way, which may be the reason why a house-price bubble has been created some time after a share price bubble."

more...

[54anickel]

67. The Calm Before the Storm (Bird flu article at Morgan Stanley - wtf?)

http://www.morganstanley.com/GEFdata/digests/20060710-mon.html#anchor2

After months of near daily reports on avian flu outbreaks, the global spread of the H5N1 virus appears to have stabilized. The highly anticipated influx of infected wild birds along south-north migratory routes did not materialize this spring, leaving many to wonder whether the worst is behind us. Such complacency would pose a serious risk, in my view. It is likely that what we are witnessing now is not a burnout of the H5N1 virus, but rather a “calm before the storm” -- a period of genetic reassortment during which a far more lethal strain emerges.

Gene mutation is a constantly occurring phenomenon in flu viruses, and it is one of the primary reasons why vaccines must be developed just prior to the start of each flu season. Every so often, however, a particularly virulent strain such as H5N1 emerges, capable of triggering a pandemic. While it is difficult to ascertain the exact timing of any low probability, high risk event, health experts at the World Health Organization (WHO) believe that the world is now closer to another influenza pandemic than at any time since 1968. Over the course of a decade, H5N1 has evolved into a more resilient and lethal strain with risks that have not been fully priced by most financial market participants (see my dispatch from 2 June 2006, “Surveying Pandemic Preparedness”). First isolated from an infected bird in 1996 in Guangdong Province, China, the virus has since crossed the species barrier to infect humans on three occasions: (1) 1997 in Hong Kong, with 18 cases with 6 fatal; (2) 2003, again in Hong Kong, with 2 cases with one fatal; and (3) late-2003 and ongoing with 228 cases and 130 deaths globally. The tipping point to a pandemic was made one step closer when the WHO recently announced the first laboratory-confirmed case of human-to-human transmission occurring in Indonesia.

Influenza poses a serious threat to public health due to the ease with which the virus can be spread. In the US alone, normal influenza hospitalizes some 226,000 people leading to 36,000 deaths annually. Unlike other communicable diseases that require direct contact, either through the exchange of bodily fluids (e.g., HIV/AIDS) or mosquitoes (e.g., malaria), influenza is transmitted primarily via airborne droplets. As such, the emergence of an H5N1 strain that is transmissible between humans on a sustained basis would be exceedingly difficult to contain. Assuming it takes two months to develop a vaccine and at least several more months for commercially produced supplies to become widely available, the world would be on equal footing in its susceptibility to infection during the initial phase of a pandemic. Limited production capacity also implies that access to vaccines and antivirals will continue to favor wealthy industrialized countries, but this fails to consider that the most effective way of extinguishing an outbreak is at its source. Ensuring the preparedness of the developing world, particularly those countries in the likely epicenter of Southeast Asia, is therefore critical.

snip>

Compared to just two months ago, there has been a 38% increase in the number of officially reported H5N1 human cases, and the mortality rate has reached a staggering 57%. While the absolute numbers remain modest (228 cases and 130 deaths worldwide since 2003), the outbreak of a pandemic virus could occur at any time and lead to an explosion of new infections within a matter of days. The international community, led by the G-10, must stand vigilant and committed to a long-term strategy that reinforces the importance of global preparedness. Success requires a re-doubling of efforts precisely when the battle appears to have been won.

more...

[Roland99]

69. Maybe it mutated itself out of existence?

Too bad that can't happen to Republicans.

[54anickel]

73. Well, Republicans are mutating, so there's always hope...

[Mojorabbit]

102. I've followed this closely for two years

It always has lulls then explodes again. I am guessing fall will see some more clusters. I also think we will be the last to know if it hits here in wild birds. Kinda like mad cow. We find out long after tptb find out.

[54anickel]

70. Refi loans could prove costly in foreclosure (Uh-oh)

Law allows lenders to go after personal savings as well as the house, unlike original mortgage.

http://ocregister.com/ocregister/money/housing/article_1206268.php

Homeowners behind in their mortgage payments after hocking the house to pay for a major remodel or a new boat or car may be in for a rude awakening.

If they previously refinanced and their lender decides to foreclose, they may not only lose their house, but the bank also may be able to go after their other financial assets including stocks, savings and their paycheck.

And even if the bank doesn't go after their other assets, a foreclosure may mean a big tax bill from the IRS and state Franchise Tax Board for any shortfall between what the bank gets for the sale of the owner's home and the value of the loan.

"This is going to become a hot topic," predicts Bradford L. Hall, managing director of Hall & Co., CPAs in Irvine, who remembers the pain of foreclosures during the 1990s. "There's very little awareness of what can happen when you can't make your payments and are forced to sell your home for less than the mortgage balance or lose your home through foreclosure."

more...

[Roland99]

72. What the hell else can they do to destroy America?

[54anickel]

75. Bring back debtor's prison? What was that Proverb again?

"The rich rule over the poor, and the borrower is servant to the lender."

So they can get at your stocks, savings or just tap a percentage of your paycheck for the rest of your freaking life. What happens when you can't pay the tax due on the difference? Won't they garnish your wages as well?

St. Peter don't ya call me cuz I can't go,
I owe my soul to the company store

[Roland99]

79. Wanna bet they don't follow IRS living costs allowance guidelines either?

They'll take whatever they damn well want to take no matter how little it leaves the victim.

[Roland99]

71. 12:13pm - Losses tempering...

DJIA 11,052.01 -51.54 -0.46%
Nasdaq 2,100.89 -16.04 -0.76%
S&P 500 1,262.70 -4.64 -0.37%
Dow Util 419.13 +0.27 +0.06%
NYSE 8,142.30 -32.88 -0.40%
AMEX 1,925.73 -9.97 -0.52%
Russell 2000 702.03 -7.05 -0.99%
Semcond 414.89 -9.35 -2.20%
Gold future 636.20 +10.10 +1.61%
30-Year Bond 5.14% -0.03 -0.50%
10-Year Bond 5.10% -0.03 -0.55%

[UpInArms]

77. Fuzzy Math Alert: U.S. May job hires outpace openings

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-07-11T155616Z_01_N11100932_RTRIDST_0_ECONOMY-JOLTS.XML

WASHINGTON, July 11 (Reuters) - Fewer U.S. jobs opened in May than the month before, while the number of workers hired in May rose, a government report showed on Tuesday.

May job openings stood at 3.989 million, down from 4.070 million in April, according to the Labor Department's latest Job Openings and Labor Turnover Survey (JOLTS). It was the second straight monthly decline in job vacancies.

Declines in construction, manufacturing, professional and business services; education and health services; and government outpaced gains in trade, transportation and utilities, and leisure and hospitality.

<snip>

The number of hires during May rose to 4.962 million from 4.649 million in April, while the rate of hires stood at 3.7 percent, compared with 3.4 percent in the prior month.

The number of separations -- terminations of employment that occurred during the month -- rose to 4.654 million from 4.495 million in April, while the rate of turnovers stood at 3.4 percent in May from 3.3 percent the prior month.

Included in the separations total is the quits rate, which can serve as a barometer of workers' ability to change jobs.

The rate of quits in May rose to 2 percent from 1.9 percent in April, while the number of workers quitting their jobs rose to 2.737 million from 2.541 million in April.

...more...

[Roland99]

80. So, the apparent fluke of increase in hires is due to high-turnover jobs?

At least that's how I'm reading it.

[UpInArms]

82. Goldman conflicts entwine Allied World IPO:big shareholder and manages inv

Goldman conflicts entwine Allied World IPO
Bank leads offering, is a big shareholder and manages insurer's investments

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BF050C2EE%2D85A7%2D48D8%2DAC31%2DE08D6852C46B%7D&symbol=

NEW YORK (MarketWatch) -- When you're the world's largest hedge fund manager, a top private-equity firm and the leading investment bank organizing initial public offerings, the threads of your various businesses can become entwined.

That's what appears to be happening with the $374 million IPO of Allied World Assurance, due as early as Wednesday for its stock market debut.

Goldman Sachs (GS : 146.94, -1.91, -1.3% ) is leading the offering, while private-equity funds run by the bank are major shareholders of the Bermuda-based insurer. Allied has also invested more than $140 million in hedge funds run by Goldman, including its big Global Alpha fund.

Goldman's multiple roles in Allied World's IPO were questioned by two investment banking experts this week, while another said the relationships were just a symptom of the firm's success.

"They're both the seller and an investor in the company being sold," said Samuel Hayes, the Jacob H. Schiff professor of investment banking, emeritus, at Harvard Business School. "There's no way they can assume the role of an independent ombudsman for future investors, which is what IPO underwriters are supposed to be."

Investment banks arranging IPOs are supposed to perform due diligence to make sure the business being sold is sound and has appropriate controls, but as an investor in Allied World, Goldman could in theory be more interested in organizing a profitable exit for its private-equity funds, Hayes explained.

"There is no way to rationalize away these conflicts of interest," he added. "There's a lot of self-dealing here that seems to be accepted."

...more...

Gotta keep raking in all those profits!

[UpInArms]

84. Williams-Sonoma CEO to retire, revamps view lower

Were they cooking the books to get bigger bonuses?

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B0C39DCC6%2DDA23%2D4C10%2D8BF5%2DD55E04288AF1%7D&symbol=

NEW YORK (MarketWatch) -- Home furnishings and accessories retailer Williams-Sonoma Inc. on Tuesday updated its forecasts for the second quarter and year to reflect the departure of its chief executive, "challenging" business trends, and extra income related to unredeemed gift cards.

Shares were down 3% at $32.54 in midday trading, hitting $31.30, their lowest level in more than two years.

The company, which operates Pottery Barn, West Elm and its namesake stores, pruned its revenue forecast, raised its earnings per share target by 5 cents for the second quarter and 6 cents for the fiscal year, on a GAAP basis and backed its non-GAAP earnings forecast, but sounded a cautious note on the economy and selling environment.

<snip>

Morgan Stanley analyst Armando Lopez said the announcement from Williams-Sonoma was "significant," given that the retailer is "one of the first companies focused at the high-end to lower revenue expectations."

...more...

:eyes:

[stop the bleeding]

85. @1:55pm something sure got the major indexes to move up

in the last 15 minutes - any news worth noting?

[UpInArms]

87. Security heightened in New York subways

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-11T175930Z_01_N11204988_RTRIDST_0_INDIA-BLAST-NEWYORK-URGENT.XML

NEW YORK, July 11 (Reuters) - Security was heightened on subways in New York as a precaution on Tuesday in response to the bombings in India, the New York Police Department said.

"We are increasing our security," said Sgt. Kevin Hayes, a police department spokesman. He said the heightened security measures were a response to the Indian bombings, but said, "There is no specific threats that we've received for New York."

:eyes:

[stop the bleeding]

89. well something has kicked them back up to the opening numbers

will we see this hold or a last hour sell off - hhmmmmmmm


where is the crystal ball when I need it ;)

on edit: the NASDAQ has had the biggest jump - did something good go on in Tech?? I highly doubt it.

[UpInArms]

92. maybe these

[stop the bleeding]

94. are they on ROIDS - the indexes

are going skyward

[UpInArms]

96. U.S. stocks turn higher; market tries to look past Alcoa, Lucent

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B11E2C2E8%2D063E%2D48A4%2D971E%2D788994037575%7D&symbol=

NEW YORK (MarketWatch) -- U.S. stocks turned higher Tuesday as some investors said it was still too early to write off the second-quarter earnings season after a revenue miss from Dow component Alcoa Inc. and a profit warning from Lucent Technologies.

The Dow Jones Industrial Average ($INDU) was up 14 points at 11,117, off a
session low of 11,027.99.

The Nasdaq Composite Index ($COMPQ) rose 5 points to 2,121 but had been as
low as 2,095.69 earlier in the session. The S&P 500 Index ($SPX) gained 2 points
to 1,269.

"I don't think anyone is throwing out the baby with the bathwater yet," said Robert Pavlik, chief investment officer at Oaktree Asset Management, referring to Alcoa's revenue miss and a Lucent's warning. "If Genentech, Pepsi and GE come in with negative reports, then you might see more market reaction."

Pavlik said a series of deadly blasts in the Indian city of Mumbai were certainly a concern. See full story.

"It's certainly an unfortunate situation, but I don't think it's having a major impact on the U.S. markets," he said.

<snipping to the Big Lie>

Some good news on the economy came from the White House. President Bush said surging tax receipts have trimmed the size of the federal deficit in the current year.

...more...

[stop the bleeding]

99. When does reality set in??

probably after more earnings come out that show companies missing estimates due to higher energy costs along with increased rates from the FED - all of these people that bought on this need to be very careful, I hope that they don't lose their asses but man I wouldn't want to be holding all of that - on a speculative whim :eyes: their balls are bigger than mine.

PS - I stayed out of the market today

[UpInArms]

86. 2:03 EST Faeries Report for Duty (updated blather

Dow 11,074.34 -29.21 (-0.26%)
Nasdaq 2,108.16 -8.76 (-0.41%)
S&P 500 1,264.43 -2.91 (-0.23%)
10-Yr Bond 5.102 -0.28 (-0.55%)

NYSE Volume 1,433,400,000
Nasdaq Volume 1,195,627,000

2:00 pm : Market makes another attempt to recover some of its losses but eight out of 10 sectors continue to trade in negative territory. Despite gold futures ($642.90/ounce +$16.80) recently closing up 2.7% near one-month highs, acting as a safe haven following news of the bomb blasts in Mumbai, the Materials sector (-0.77%) continues to pace the way lower following Alcoa's (31.91 -1.50) sales shortfall. Consumer Discretionary (-0.75%) is not far behind, led by 52-week lows in retail giants Home Depot (HD 34.29 -0.71) and Lowes Cos. (LOW 28.09 -0.61). The inability of homebuilders (e.g. DHI -2.0%, PHM -0.8%, LEN -2.7%, CTX -1.3%, and KBH -3.2%) to take advantage of falling bond yields, in part because M/I Homes (MHO 33.63 -1.04) said Q2 contracts fell 35%, is also weighign on the sector. DJ30 -28.01 NASDAQ -8.42 SP500 -2.77 NASDAQ Dec/Adv/Vol 2067/857/1.18 BLN NYSE Dec/Adv/Vol 2033/1155/926 MLN

1:30 pm : Not much has changed within the last 30 minutes but a bearish bias remains intact. As reflected in the A/D line, decliners on the NYSE outpace advancers 20 to 11 while those on the Nasdaq, which just surpassed 1.0 bln in volume, hold a larger 5-to-2 edge. Painting an even more convincingly negative picture is a 3-to-1 ratio of down to up volume as the number of New Lows also far exceeds New Highs.DJ30 -53.71 NASDAQ -19.34 SP500 -6.11 NASDAQ Dec/Adv/Vol 2068/833/1.05 bln NYSE Dec/Adv/Vol 2032/1129/840 mln

1:00 pm : More of the same for stocks as the Nasdaq continues to outpace its blue chip counterparts to the downside. Networking continues to be the thorn in the tech-heavy index's side as Lucent's warning weighs on competitors like CSCO (-2.9%), JNPR (-2.8%), JDSU (-4.2%) and ERICY (-2.5%). On a positive note, however, a sense that continued losses in the semiconductor group are overdone has prompted some bargain hunting interest, especially in shares of MRVL (+1.9%); but the absence of leadership from larger-cap names like INTC (-0.3%) and AMAT (-1.3%) is stalling recovery efforts. DJ30 -53.93 NASDAQ -19.98 SOX +0.3% SP500 -6.14 NASDAQ Dec/Adv/Vol 2014/850/956 mln NYSE Dec/Adv/Vol 1968/1170/762 mln

[54anickel]

91. Trying so hard for the water line - DOW was within 24 pennies a couple

minutes ago...Now at 2:18

Dow 11,098.51 -5.04 (-0.05%)
Nasdaq 2,117.75 +0.82 (+0.04%)
S&P 500 1,267.39 +0.05 (+0.00%)
10-yr Bond 51.06 -0.24 (-0.47%)
30-yr Bond 51.49 -0.21 (-0.41%)
NYSE Volume 1,529,083,000
Nasdaq Volume 1,307,092,000

[54anickel]

93. Woman Killed as Slab Falls From Big Dig Tunnel

See what happens when mediocrity becomes the way of the land...

http://www.nytimes.com/2006/07/11/us/11cnd-boston.html?hp&ex=1152676800&en=b74257663c73fc5a&ei=5094&partner=homepage

BOSTON, July 11 — Huge slabs of concrete weighing at least 12 tons fell from the ceiling of one of the Big Dig tunnels in Boston late Monday night, crushing a woman to death in a car.

State police said it was the first time in the massive highway project’s long history that someone riding through one of the tunnels had been killed by an apparent construction failure.

But the catastrophe follows a series of leaks and other problems that have resulted in investigations and raised questions about the safety of parts of the recently-completed $14.6 billion Big Dig, which is now the central highway system through Boston.

The accident occurred around 11 p.m. Monday night in a 200-foot section of tunnel that links Interstate 93 and the Massachusetts Turnpike to the Ted Williams Tunnel, a route leading to Logan International Airport. At least four three-ton concrete panels fell when a metal tie anchoring them to the ceiling gave way, said Matthew J. Amorello, chairman of the Massachusetts Turnpike Authority.

snip>

Gov. Mitt Romney, who has long criticized the management of the Big Dig and who has called for Mr. Amorello’s resignation, toured the tunnel and said, “I don’t think anyone can feel the tunnels are safe given what happened.”

more...

[UpInArms]

97. 3:36 EST Heading for the Pie in the Blue Sky Finish

Dow 11,143.42 +39.87 (+0.36%)
Nasdaq 2,127.96 +11.03 (+0.52%)
S&P 500 1,272.88 +5.54 (+0.44%)
10-Yr Bond 5.100 -0.30 (-0.58%)

NYSE Volume 2,026,232,000
Nasdaq Volume 1,747,488,000

3:30 pm : Volatile trading late in the day has the indices back in positive territory and poised to shrug off a day largely plagued by earnings concerns. Technology (+0.6%) and Health Care (+0.3%) turning the corner are providing the bulk of recent leadership for the broader market, but a 1.9% surge in the Energy sector, which has again been pegged as the earnings driver for the SnP 500 with Wall Street forecasting 25% growth in sector profits, is providing the floor of support for a cautious market looking for anything positive to get stocks back on the buying track. DJ30 +24.10 NASDAQ +7.89 SP500 +3.81 NASDAQ Dec/Adv/Vol 1610/1374/1.71 bln NYSE Dec/Adv/Vol 1606/1637/1.32 bln

3:00 pm : Recovery efforts are short-lived as the market's recent turnaround runs out of steam. Even though the PHLX Semiconductor Sector Index continues to trade near its best levels of the day, Technology has since slipped back into the red, removing some influential leadership. Tech giants Microsoft (MSFT 22.99 -0.51) and Cisco Systems (CSCO 18.51 -0.46), which are off a discouraging 2.2% and 2.4%, respectively, are among two of the main reasons that strength in chip stocks can only do so much when such influential SnP 500 constituents are trading sharply lower. DJ30 -13.68 NASDAQ -4.15 SOX +2.3% SP500 -1.06 NASDAQ Dec/Adv/Vol 1735/1239/1.52 bln NYSE Dec/Adv/Vol 1684/1538/1.14 bln

2:30 pm : Buyers continue to show some resolve as all three of the indices spike higher and into positive territory for the first time today. Spearheading the reversal in sentiment has been the resilience by semiconductors in the face of broad-based weakness spurred by earnings concerns. As one of the worst performing industry groups within the influential Technology sector, the belief that a bottom has formed coupled with KLA-Tencor (KLAC 41.45 +2.12) saying it will exceed the top end of its Q2 bookings guidance of 9-11% has improved the overall tone. To wit, the tech-heavy Nasdaq was off as much as 1.0%, pushing its year-to-date decline to 5.0%, but is now holding just above the flat line. Other notable semi names soaring to session highs include INTC +2.0%, AMAT +1.2%, ALTR +2.2%, BRCM +2.6%, MRVL +3.9%, LLTC +1.6%, MXIM +2.2%, NVLS +2.1% and XLNX +2.0%.DJ30 +3.51 NASDAQ +1.93 SOX +2.3% SP500 +0.68 NASDAQ Dec/Adv/Vol 1731/1186/1.38 bln NYSE Dec/Adv/Vol 1832/1360/1.04 bln

[UpInArms]

100. AoHell Alert: AOL Reports include Erroneous Financial Info - Surprise!

3:54 PM ET 7/11/06 TIME WARNER SHARES DOWN 10C AT $16.56

3:54 PM ET 7/11/06 TIME WARNER: AOL REPORTS INCLUDE 'ERRONEOUS' FIN'L INFO

3:52 PM ET 7/11/06 TIME WARNER TO PRESENT FUTURE AOL STRATEGY ON AUG. 2

[UpInArms]

103. shop closing time

Dow 11,134.77 +31.22 (+0.28%)
Nasdaq 2,128.86 +11.93 (+0.56%)
S&P 500 1,272.52 +5.18 (+0.41%)
10-Yr Bond 5.100 -0.30 (-0.58%)

NYSE Volume 2,369,089,000
Nasdaq Volume 2,063,210,000

What was initially shaping up to be a dismal day for stocks, as earnings concerns underpinned a negative tone throughout most of the session, actually finished on an upbeat note.

Last night, Alcoa (AA 31.85 -1.56) officially kicked off earnings season, posting record earnings and revenues. However, with sales falling short of expectations, coupled with the recognition that Q3 is a seasonally weak period and CEO commentary quashing speculation about AA being a takeover candidate, weighed heavily on the Dow component (-4.7%).

Lucent Technologies (LU 2.19 -0.15) saying that Q3 sales and earnings will miss expectations also weighed on sentiment. In particular, Lucent's warning exacerbated ongoing worries about the impact of higher interest rates on growth stocks in a Technology sector already reeling from recent warnings out of EMC, AMD and MMM. Microsoft's (MSFT 23.10 -0.40) Bill Gates citing merely an 80% chance of Vista being ready in January, and potentially millions of dollars in fines stemming from an EU investigation of the software gaint, also contributed to the continued lack of enthusiasm seen in tech - that is until a market starving for anything positive to suggest that a bottom has finally been formed in this year's worst performing sector found a catalyst to restore buying efforts.

While a sense that continued losses in the influential semiconductor group were overdone had already prompted some bargain-hunting interest in chip stocks, KLA-Tencor (KLAC 42.56 +3.23) saying it will exceed the top end of its fiscal Q4 bookings guidance of 9-11% helped the market stage a comeback around 2.00 ET.

With ongoing concerns ranging from options backdating to excess inventories currently sidelined, short sellers were sent running for cover as the tech-heavy Nasdaq, which was off as much as 1.0% and down 5.0% year-to-date intraday, outpaced its blue chip counterparts and nearly erased Monday's 0.6% decline.

Energy, though, turned in the day's best performance (+1.8%) as investors flocked to own the likes of Refiners, Drillers and Explorers that are expected to again combine for the largest contribution to operating earnings growth for the SnP 500. Crude oil prices closed up 0.6% at $74 per barrel after Iran's president reportedly said they are determined to complete uranium enrichment. Consumer Staples also closed higher, in large part after Pepsi Bottling Group (PBG 33.89 +1.54) topped forecasts and raised its FY06 outlook.

Another sector benefiting from its defensive characteristics was Health Care, which pared some of its year-to-date losses amid renewed interest in Managed Health following the group's dismal 14.3% decline in Q2. Even Financials eked out a small gain, eventually benefiting from a decline in borrowing costs. Treasuries closed higher across the yield curve after catching a flight-to-quality bid following reports of bombs going off on several commuter trains in Mumbai, India. The yield on the 10-yr closed at 5.09%. BTK +0.5% DJ30 +31.22 DJTA -0.1% DJUA +0.6% DOT +0.6% NASDAQ +11.93 NQ100 +0.8% R2K +0.8% SOX +3.3% SP400 +0.4% SP500 +5.18 XOI +1.2% NASDAQ Dec/Adv/Vol 1334/1694/1.99 bln NYSE Dec/Adv/Vol 1247/2037/1.57 bln