STOCK MARKET WATCH, Thursday 20 July

[ozymandius]

Thursday July 20, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 916 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2035 DAYS
WHERE'S OSAMA BIN-LADEN? 1735 DAYS
DAYS SINCE ENRON COLLAPSE = 1696
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 19, 2006

Dow... 11,011.42 +212.19 (+1.96%)
Nasdaq... 2,080.71 +37.49 (+1.83%)
S&P 500... 1,259.81 +22.95 (+1.86%)
Gold future... 642.80 +13.30 (+2.07%)
30-Year Bond 5.10% -0.06 (-1.14%)
10-Yr Bond... 5.06% -0.07 (-1.38%)






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 Paul Nolte

WHAT THE NUMBERS SAY

The key data has made it to the markets this morning, and in general the numbers were received well. Following on the data, Fed Chairman Ben Bernanke made his required testimony in front of Congress – answering questions about why the Fed is persistent in their raising of interest rates. The financial markets cheered it all and jumped 1.5% quickly. Questions from the various Senators centered around the lag effects of the prior rate increases as well as the fact that a pause in the rate cycle has now been elevated to something very special vs. the normal course of business (we had two pauses in the ’99-2000 rate hike cycle). Whether the specter of a pause is the engine behind the market jump or that oil prices have come down some from recent peaks or that interest rates have moderated from their recent peaks, investors don’t really care, but that the recent decline seems to be over has caused them to jump back into stocks. While the daily movements of the markets are relatively hard to discern real reasons (higher oil prices helped the S&P 500 to rise on one day, higher oil prices hurt stocks another), we are trying to look at the longer term views that will assist us in being on the right side of the markets over the long-term and not worry as much about the daily noise.

So what are the numbers saying? Fresh data this morning point to a still weakening housing market as the home builders association numbers are now at lows not seen since the ’90-’92 recession. If we use that period as a guide, we can see housing weaker still and not fully recovered until sometime in 2008. The housing market “collapse” is indicating that economic growth is likely to be in the 2% range for the second half of the year – in our view pointing to an imminent interest rate cut either late in 2006 or early ’07. We have been watching lumber prices as a key leading indicator of housing – and after peaking two years ago, lumber prices are now at levels last seen in late 2003, and getting to within hailing distance of 2000-’02 lows. Industrial production, however, has been stronger (and is the only strong economic reading of the last two weeks) and we may be seeing an inventory build that would allow the sales to inventory levels to rise slightly in the months ahead. Finally, the much discussed (and argued) data regarding inflation was generally in line with the consensus views and the markets did little once the data was available. Questions are arising about the usefulness of the CPI data as the imputed rent factor has been adding to the CPI data – this in the face of a weakening housing market. However, if we were to use gold as an indicator of market views of inflation – their collapse yesterday and jump today might indicate that inflation is not really a concern, as gold continues to trade well below recent peaks. Is gold still in a corrective mode or is there more weakness ahead after the parabolic rise in prices – especially in the face of a weakening economy.

more...

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

[ozymandius]

2. Today's Reports

8:30 AM Initial Claims 07/15
Briefing Forecast 320K
Market Expects NA
Prior 332K

10:00 AM Leading Indicators Jun
Briefing Forecast 0.2%
Market Expects 0.2%
Prior -0.6%

12:00 PM Philadelphia Fed Jul
Briefing Forecast 12.5
Market Expects 12.0
Prior 13.1

2:00 PM FOMC Minutes Jun 29

[UpInArms]

25. U.S. jobless claims @ 304,000 (last wk rev'd to 334,000)

8:30 AM ET 7/20/06 CONTINUING JOBLESS CLAIMS AT HIGHEST LEVEL SINCE FEB.

8:30 AM ET 7/20/06 U.S. CONTINUING JOBLESS CLAIMS UP 85,000 TO 2.51 MLN

8:30 AM ET 7/20/06 U.S. 4-WEEK AVG. JOBLESS CLAIMS DOWN 1,250 TO 316,750

8:30 AM ET 7/20/06 BULK OF JOBLESS CLAIMS FALL FROM LESS AUTO INDUSTRY LAYOFFS

8:30 AM ET 7/20/06 U.S. WEEKLY JOBLESS CLAIMS DOWN 30,000 TO 304,000

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCB84D80B%2D58F4%2D47C4%2DB10F%2D4B1ED7CFADFD%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - First-time claims for state unemployment benefits fell sharply in the latest week, completely reversing a sharp rise in the previous week, the Labor Department reported Thursday. The number of initial claims in the week ending July 15 fell 30,000 to 304,000. It's the lowest level since mid-June. The consensus forecast of Wall Street economists was for claims to fall 12,000 to 320,000. Claims in the previous week were revised to an increase of 20,000 to 334,000 compared with the initial estimate of a rise of 19,000 to 332,000. The gyrations in claims are the result of seasonal re-tooling in the auto industry, a Labor spokesman said. The four-week average of initial claims fell 1,250 to 316,750. Meanwhile, the number of Americans receiving state jobless benefits jumped 85,000 to 2.51 million in the week ending July 8. It is the highest level since the week ended Feb. 4. The four-week moving average of continuing claims rose 20,500 to 2.44 million, the highest since April 1.

[UpInArms]

43. Leading indicators rise 0.1% in June U.S. economy cooling, Conference Boa

10:00 AM ET 7/20/06 U.S. ECONOMY IS COOLING: CONFERENCE BOARD

10:00 AM ET 7/20/06 U.S. LEADING INDICATORS DOWN 0.3% IN PAST 6 MONTHS

10:00 AM ET 7/20/06 U.S. JUNE LEADING INDICATORS RISE 0.1% VS. 0.2% EXPECTED

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B145D8191%2D7D42%2D4531%2D8CBD%2D0E3A4DF4672A%7D&symbol=

WASHINGTON (MarketWatch) - The index of leading economic indicators increased 0.1% in June after two consecutive declines, the Conference Board reported Thursday.

"The U.S. economy is cooling at mid-year," said Ken Goldstein, a labor economist at the private group. The leading indicators "suggest that the economy could cool even more in the third and fourth quarters of the year."

In the past six months, the leading index has fallen 0.3%, with five of the 10 components declining. The index fell 0.6% in May.

Six of the 10 leading indicators increased in June: weekly jobless claims, consumer expectations, money supply, the factory workweek, interest rate spreads and core capital equipment orders. Three indictors fell, led by vendor performance, building permits and stock prices. Orders for consumer goods were flat.

The index is designed to help forecast turning points in the economy six to nine months ahead.

...more...

[UpInArms]

63. Philadelphia Fed July index a 6.0 vs 13.1 (surprised eCONomist time)

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B21586E77%2DCA33%2D47F5%2D957D%2DA93E4E764B42%7D&symbol=

WASHINGTON (MarketWatch) -- Factory activity in the Philadelphia region slowed in July, the Philadelphia Federal Reserve said Thursday. The Philly Fed index fell to 6.0 in July from 13.1 in June. It's the lowest reading since January.

Readings over zero in the diffusion index indicate growth in the region's factories. A smaller positive number means slower growth.

Economists expected the index to slip to about 11.6., according to a survey conducted by MarketWatch. See Economic Calendar.

New orders and shipments grew more slowly, while inflationary pressures increased. Employment indicators were mixed. The outlook for the future was slightly brighter. Read the full report.

The new orders index fell to 10.1 from 17.7. Shipments fell to 10.2 from 17.7.

The prices paid rose to 50.3 from 48.7, with more than 50% of firms reporting paying higher prices for inputs. The prices received index rose to 17.1 from 14.0, with about a quarter of firms able to increase their selling prices.

...more...

[UpInArms]

71. FOMC divided in June over inflation, rate impact

2:00 PM ET 7/20/06 FOMC MINDFUL OF RISK OF SHARPER HOUSING MARKET SLOWDOWN

2:00 PM ET 7/20/06 FOMC: TOUGH FED TALK PUSHED INFLATION EXPECTATIONS LOWER

2:00 PM ET 7/20/06 FOMC: JUNE STATEMENT MEANT MORE RATE HIKES 'NOT FOREORDAINED

2:00 PM ET 7/20/06 ONE FOMC MEMBER CALLED JUNE RATE HIKE 'CLOSE CALL'

2:00 PM ET 7/20/06 FOMC SPLIT ON WHETHER RATE POLICY IS RESTRICTIVE OR LOOSE

2:00 PM ET 7/20/06 FOMC SPLIT ON INFLATION OUTLOOK, MOST SAW IT MOVING LOWER

2:00 PM ET 7/20/06 ENTIRE FOMC CONCERNED ABOUT CORE INFLATION IN JUNE: MINUTES

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B1F5D5862%2D4CF7%2D4865%2D9D40%2D66AC486AE2EB%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - Given intense debates over inflation and the impact of past rate hikes, the Federal Open Market Committee intended in its June 30 policy statement to signal markets that rate hikes at future meetings was no longer "foreordained," according to a summary of their closed-door deliberations released Thursday. The FOMC minutes reveal that there was "significant uncertainty" among members about the appropriate level of interest rates going forward. Even though they all agreed to hike rates to 5.25%, the Fed governors and bank presidents could not come to a consensus on whether the level of rates was now modestly restrictive or somewhat accommodative.One FOMC member called the decision to raise the target Fed funds rate in June "a close call." The minutes reveal a lengthy debate among FOMC members about inflation. Most, but not all, believed that inflation would edge lower.

[UpInArms]

76. Rate futures trim chance of Aug Fed hike on minutes

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-20T181126Z_01_CHB000196_RTRIDST_0_MARKETS-FEDFUNDS-MINUTES-URGENT.XML

CHICAGO, July 20 (Reuters) - U.S. short-term rate futures made new session highs after minutes from the June Federal Open Market Committee were issued, trimming the implied prospects for the Fed to raise rates again in August.

Chances for an August Fed hike <FFQ6> fell to 51 percent from 59 percent shortly before the minutes were issued and 73 percent earlier in the day.

The minutes were said to reinforce ideas that policymakers are thinking about an end to their two-year string of rate increases, and that prospects for August are more a toss-up than the market has assumed recently.

Now watch the markets rebound!

[ozymandius]

3. Crude oil prices rise to $73.03 a barrel

SINGAPORE - Crude oil prices rose in Asian trading Thursday as the market adjusted after dropping sharply the previous day on an unexpected increase in U.S. gasoline supplies.

"Yesterday's decline was due to the surprise of the U.S. inventory data. For now, the market seems to be a bit oversold, so that's why people are buying back today," said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo.

In Asian electronic trading on the New York Mercantile Exchange, light sweet crude rose 37 cents to $73.03. On Wednesday, oil futures briefly dipped below US$72 a barrel before settling at $72.66.

more

[ozymandius]

4. Alaska regulators push tighter rules after BP leaks

ANCHORAGE, Alaska (Reuters) - Alaska regulators on Wednesday defended their oversight of BP Plc (BP.L), but advocated tighter rules after leaks forced the oil giant to shut down 12 oil wells this week.

The wells shutdown in Alaska's North Slope region is the latest in a series of troubles for BP, still reeling from an estimated 200,000-gallon (909,200-liter) Prudhoe Bay spill that went undetected for days before being discovered in March.

"Every one of our regulations and orders are enforced strictly on every operator in the state," said Cathy Foerster, an engineer who sits on the three-member Alaska Oil and Gas Conservation Commission. "If BP were violating our regulations, we'd be fining them."

However, state officials are working to tighten rules. The commission plans to rewrite oil field safety-valve regulations in order to address recent changes in field operations and improvements in measuring technology.

more

[UpInArms]

19. Crude gains as Middle East violence escalates (@ $73.12 bbl)

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BA92F7B8F%2D1CDA%2D4FB9%2DB8F3%2D9FC56F2A2893%7D&symbol=

NEW YORK (MarketWatch) -- Crude-oil futures rose early Thursday, recouping part of their prior-day loss as traders continued to react to weekly supply data and keep a cautious eye on the escalating conflict in the Middle East.

Crude for August delivery was last up 46 cents at $73.12 a barrel in electronic trade.

Crude for September delivery, which will become the front-month contract at the close of trade today, was trading up 43 cents at $75.20 a barrel. Oil closed at a three-week low on Wednesday after a surprise climb in last week's U.S. gasoline supplies, although solid demand helped it finish off its worst levels of the day.

The data overshadowed the violence in Israel and Lebanon. In the past two sessions, many traders had become more optimistic that the conflict would not widen to draw in any of the oil-producing countries in the region and had begun to unwind safe-haven positions built on that fear.

However, reports early Thursday indicated that Israel has raised the ante overnight with its soldiers now fighting Hezbollah inside the Lebanese border.

Israel carried out 80 air strikes on Thursday, bringing the number of Lebanese casualties since the fighting broke out last week to 300, according to the BBC. About 29 Israeli's have died since Israel began the offensive triggered by the kidnapping of two of its soldiers by Hezbollah.

<snip>

Against that background, gasoline futures were last trading up 2.2 cents at $2.2517 a gallon and heating oil was up 0.6 cent at $1.971 a gallon.

...more...

[UpInArms]

62. August Crude @ $72.15 bbl

11:34 AM ET 7/20/06 AUGUST CRUDE FALLS 51 CENTS TO $72.15/BRL AFTER $73.15 HIGH

[UpInArms]

88. August Crude @ $73.35 bbl

2:17 PM ET 7/20/06 AUGUST CRUDE RISES IN LAST FEW MINUTES OF NY TRADING

2:17 PM ET 7/20/06 AUGUST CRUDE CLIMBS 69 CENTS TO $73.35/BRL AFTER $72.05 LOW

[Roland99]

89. great.

Even though oil has dropped $5 since last week, this late $1 rise today will make gas go up again here, I bet.

[UpInArms]

101. August Crude closes @ $73.08 bbl - NatGas @ $6.091 mln btus

3:07 PM ET 7/20/06 AUGUST CRUDE CLOSES HIGHER FOR FIRST TIME IN FOUR SESSIONS

3:07 PM ET 7/20/06 AUGUST CRUDE ENDS AT $73.08/BRL, UP 42 CENTS

2:54 PM ET 7/20/06 AUGUST NATURAL GAS ROSE 22.9 CENTS TO END AT $6.091/MLN BTUS

[UpInArms]

106. September Crude closes @ $74.27

3:14 PM ET 7/20/06 SEPT. CRUDE FALLS 50 CENTS, ENDS AT $74.27 AFTER $75.30 HIGH

Don't you just love the crystal ball that these guys have?

[ozymandius]

5. Bourses extend Bernanke led gains

Europe's bourses extended on Thursday the gains seen in the previous session after
Federal Reserve chairman Ben Bernanke eased worries over the risk of excessive monetary tightening by saying the central bank expected US inflation to fall

The FTSE Eurofirst 300 rose 0.4 per cent to 1,304.95 with the Xetra Dax in Frankfurt up 0.6 per cent to 5,570.05, the CAC-40 in Paris 0.6 per cent higher at 4,873.09 and the FTSE 100 in London 0.4 per cent ahead at 5,799.7.

The FTSE Eurofirst 300 ended 2 per cent higher on Wednesday breaking a four-day losing streak.

Wall Street closed sharply higher on Wednesday in a broad-based rally. Markets rose on Ben Bernanke comments that were taken as a signal that a pause in interest rate rises might be at hand.

more

[ozymandius]

6. US investors seek returns overseas

US institutional investors raised the amount of international equities in their portfolios by 72 per cent in the year to the end of February in a bid to boost their returns by venturing further afield, a study shows.

Investors such as pension funds raised international holdings from $612bn to $1,052bn in the year, according to Greenwich Associates, the US-based consultancy.

US endowments and foundations have been among the most enthusiastic buyers, raising allocations to 17 per cent from 12.5 per cent over the past three years.

Overall, institutional investors surveyed by Greenwich raised allocations to international equities from 11.1 per cent to 13.9 per cent. Defined benefit pension funds boosted overseas allocation to 16.5 per cent from 14 per cent over the same period.

more

[spotbird]

29. The bloom is off that rose

So it is now talked about in the mainstream.

[54anickel]

118. Yep, been getting junk mail and statement stuffers saying now is the

time to think global. :eyes: When I first went global and commodities with my 401k rollover after being laid off, my "money guy" looked at me like I was nuts. Of course, he gave me the same look earlier this year when I pulled some of my winnings off of the table. Sheesh, and HE'S the advisor?

[Robbien]

7. Halliburton 2nd-Qtr Profit Likely Rose on U.S., Canada Drilling

July 20 (Bloomberg) -- Halliburton Co., the world's No. 2 oilfield-services company, likely will report an increase in second-quarter profit after customers spent more on drilling in North America.

The Houston-based company may say profit rose to 49 cents a share, according to the average estimate from 23 analysts in a Thomson Financial survey. That's 29 percent higher than the 38 cents earned in the second quarter last year. Halliburton has said it will report results after the close of trading today or before U.S. stock exchanges open tomorrow.

http://www.bloomberg.com/apps/news?pid=20601082&sid=akKs.focRaVQ&refer=canada

The article goes on to say that 90% of Halliburton's profit comes from drilling even though drilling represents only 50% of their business.

So now we know why Halliburton is dropping out of the war contracting business.

[ozymandius]

8. Wall Street seen up on techs, easing rate fears

PARIS (Reuters) - Shares on Wall Street headed for a higher start on Thursday, supported by hopes for a pause in U.S. monetary tightening and pleasing updates from technology giants Apple Computer (Nasdaq:AAPL - news) and Motorola (NYSE:MOT - news).

Better-than-expected profits from the computer maker and the handset manufacturer are expected to offset Intel's (Nasdaq:INTC - news) disappointing revenue forecast, with investors now turning their eyes to Microsoft (Nasdaq:MSFT - news), which reports later in the day.

-cut-

By 0900 GMT, U.S. stock futures were pointing to opening gains between 0.1 percent and 0.7 percent for the three main indexes.

more

[UpInArms]

9. daily dollar watch

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

Last trade 86.25 Change -0.12 (-0.14%)

Bernanke Burns Dollar

http://www.ameinfo.com/91931.html

Being a Federal Reserve Chairman is difficult, but being a new Fed Chairman in an environment where growth is slowing, inflation is rising, the housing market is showing signs of weakness and geopolitical risks are widespread is even harder. For the second time ever, Ben Bernanke delivered his semi-annual testimony on the economy and monetary policy.

He was ripped apart by members of Senate that blatantly criticized his performance and his lapses in judgment thus far as well as questioned whether he was ready to take on this much responsibility. Too bad Ben could not blame it on the curse of the new Fed Chairman. On a more serious note, in a bid to rebuild his credibility, Bernanke stuck to the less hawkish tone that we saw back in late June. He traded growth for inflation by confirming that a slowdown in consumer spending and the housing market are already underway.

Even though inflationary pressures are rising and remain a main concern for the Fed, Bernanke feels that the effects of past interest rates hikes are still in the pipeline and as such, do not necessitate an overly aggressive stance. A pause in rates is near and Bernanke's latest comments certainly hint that it may come sooner rather than later, but before getting too excited, he stopped short of slamming the door on another rate hike.

<snip>

This brought the annualized pace of core rate growth from 2.4 percent to 2.6 percent. Before Bernanke spoke, the combination of a strong PPI report yesterday and a strong CPI report today actually sent the dollar soaring as the probability of a rate hike in August jumped to 80 percent. Bernanke will be speaking again tomorrow and even though his testimony will be the same, the question and answer session will not, therefore keep an eye on any surprises.

...more...

[UpInArms]

10. Ford posts 2nd-quarter loss as SUV sales slump

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-20T112327Z_01_N19268639_RTRIDST_0_AUTOS-FORD-EARNS-UPDATE-1.XML

DETROIT, July 20 (Reuters) - Ford Motor Co. (F.N: Quote, Profile, Research) on Thursday posted an unexpected second-quarter loss as sales of sport utility vehicles, its most profitable models, slumped on higher U.S. gasoline prices and it took charges for employee buyouts.

Ford, which is closing 14 plants and cutting up to 30,000 factory jobs in North America, said it had a second-quarter net loss of $123 million, or 7 cents a share, compared with a profit of $946 million, or 47 cents a share, a year ago.

The loss from continuing operations was 3 cents a share, compared with Wall Street analysts' average expectations for a profit of 14 cents a share, as tracked by Reuters Estimates.

Revenues for Ford, the No. 2 U.S. automaker, fell to $41.97 billion in the second quarter, down from $44.55 billion a year earlier.

Ford's U.S. vehicle sales fell 7 percent in the quarter.

...more...

Unexpected???? Huh???

[UpInArms]

11. Denver Homebuilder M.D.C. Holdings profit falls 25%

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BE681A1D9%2D5A0B%2D416F%2DA178%2D8CC310DAB097%7D&dist=newsfinder&symbol=&siteid=mktw

LONDON (MarketWatch) -- Denver homebuilder M.D.C. Holdings (MDC : 46.68, +0.99, +2.2% ) said second-quarter net income slumped 25% to $76.5 million, or $1.66 a share, with revenue rose 17% to $1.23 billion. Analysts polled by Thomson First Call had expected earnings of $2.15 a share on revenue of $1.2 billion. It has a quarter-end backlog of 6,496 homes valued at $2.44 billion. The company reduced its land investment in the second quarter, with lots it owns down 13% year-to-date. "While the length and severity of the current market adjustment is uncertain, we are hopeful that the fundamental drivers still present in most of our markets will in due course return the homebuilding industry to more healthy levels of demand," it said.

[UpInArms]

12. Homebuilder D.R. Horton quarterly profit and orders fall

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-20T113507Z_01_N20239913_RTRIDST_0_CONSTRUCTION-DRHORTON-EARNS-UPDATE-1.XML

NEW YORK, July 20 (Reuters) - D.R. Horton Inc. (DHI.N: Quote, Profile, Research), the largest U.S. home builder, on Thursday said quarterly profit dropped 21 percent, a week after the company said orders fell and slashed its forecast because of eroding market demand.

In the fiscal third quarter ended June 30, Horton reported a profit of $292.8 million, or 93 cents per share, down from $371.7 million, or $1.17 per share in the year-earlier period.

Last week, the company said it expected third-quarter profit of 93 cents per share, well below the $1.30 analysts had forecast prior to the announcement. The profit includes write-offs of 11 cents a share.


On July 13, it also said that orders for the quarter fell 4.4 percent and it cut its fiscal year forecast to a minimum of $3.65 per share, down from a range of $4.25 to $5.35.

...more...

[UpInArms]

13. Brocade (tech company) altered records to boost options value: report

http://today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-07-20T081832Z_01_N20337023_RTRUKOC_0_US-BROCADE-OPTIONS.xml&src=rss

NEW YORK (Reuters) - Workers at technology company Brocade Communications Systems Inc. (BRCD.O: Quote, Profile, Research) altered hiring records and employed people on an ad-hoc, part-time basis in order to boost the value of stock options, the Wall Street Journal reported in its Thursday edition, citing former employees of the company.

Brocade, based in San Jose, Calif., is one of dozens of companies under scrutiny by federal prosecutors and securities regulators for manipulating grant dates of stock options.

Brocade could not immediately be reached for comment on the article.

In 2002, human resource managers at Brocade asked that employment records of several executives be altered to make it appear that they joined the company later than they really did, in order to give their stock options more value, the paper reported.

In another practice that allowed new hires to capture gains when the company's stock was on the rise, Brocade would offer temporary part-time employment from the moment they agreed to join, but before they actually did, the paper reported, citing former employees.

...more...

[UpInArms]

77. U.S. to file charges against Brocade ex-CEO - CNBC

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-20T174116Z_01_WBT005680_RTRIDST_0_ACCOUNTING-OPTIONS-REPORT-URGENT.XML

WASHINGTON, July 20 (Reuters) - U.S. officials intend to file criminal and civil charges against the former chief executive of Brocade Communications Systems Inc. (BRCD.O: Quote, Profile, Research) over the timing of stock option grants at the company, according to a CNBC news report on Thursday.

The news channel said the lawyer representing Gregory Reyes stated charges were imminent.

The SEC and U.S. Attorney's Office announced a joint news conference on Thursday in San Francisco at 2 p.m. PDT (1700 EDT/2100 GMT) to announce developments in the stock options backdating scandal, but did not specify the developments. Brocade is based in San Jose, California.

[UpInArms]

14. Cheesecake Factory starts options probe

http://today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-07-20T035147Z_01_N19281816_RTRUKOC_0_US-LEISURE-CHEESECAKE-OPTIONS.xml&src=rss

NEW YORK (Reuters) - Restaurant chain Cheesecake Factory Inc. (CAKE.O: Quote, Profile, Research) said the audit committee of its board is reviewing its stock option practices.

The announcement comes as both federal prosecutors and securities regulators and law enforcement officials step up an investigation into the timing of options grants, a scandal that has swept up dozens of publicly traded companies.

Cheesecake Factory, which made the announcement in its quarterly earnings report released on Tuesday, said the review was prompted by recent media and Wall Street reports regarding the option granting practices.

As a result, the company said it will not be able to file its final second-quarter results with the U.S. Securities and Exchange Commission by its August 14 deadline.

<snip>

The U.S. Securities and Exchange Commission, the Federal Bureau of Investigation and federal prosecutors are investigating to determine if companies manipulated the grant dates and exercise prices of stock options to boost the profits attainable by the corporate executives.

...more at link...

[UpInArms]

15. Intel's 2Q profits plunge 57 percent

http://news.yahoo.com/s/ap/20060720/ap_on_bi_ge/earns_intel

SAN FRANCISCO - Over the past 90 days, Intel Corp. has introduced three new major products, jettisoned an unprofitable division that made chips for cell phones and enacted a plan to reduce its headcount by almost 3 percent. So far, all that has done little to alleviate concerns that the world's biggest chip maker has regained its footing.

The company on Wednesday said its second-quarter profit plunged 57 percent as stiff competition and a shift in demand toward less expensive products drove down the prices the world's biggest chip maker was able to charge for its products.

Intel gave little indication conditions would improve in the second half of the year despite the arrival of a trio of new products analysts say will help it regain the performance lead over Advanced Micro Devices Inc., its biggest competitor in the market for microprocessors.

After the results, Intel said it would reassign five top executives as part of a corporate restructuring designed to simplify the company's management, according to a memorandum circulated to employees late Wednesday.

The moves will bring the number of senior managers reporting to Chief Executive Paul Otellini by two. The reassignments come as Intel is nearing completion of a comprehensive 90-day review of its operations that's designed to save the company $1 billion in annual costs by rooting out inefficiencies and underperforming businesses.

...more...

[UpInArms]

20. Intel firing spree: 15K job cuts, India on radar

http://www.business-standard.com/common/storypage_c.php?leftnm=11&bKeyFlag=IN&autono=3241

World's largest computer chipmaker Intel Corporation has pressed the 'Ctrl-Alt-Del' keys on its employees, with 1,000 managers worldwide already laid off and as many as 15,000 staffers estimated to be in the firing line.

The planned workforce reduction, including 1,000 already announced, is likely to include a significant chunk from the company's 3,000-strong team in India, sources said.

The huge lay-off plan comes amid a sharp 57% plunge in Intel's second-quarter net profit and concerns over market share loss to rival chipmaker Advanced Micro Devices (AMD).

The company said yesterday that its worldwide sales dropped 13 per cent in the June quarter, while its Asia Pacific sales dropped 14% from the year-ago levels.

Intel CEO Paul Otellini said in an internal memo sent to employees last week that the number of Intel managers was being reduced by about 1,000.

...more...

[UpInArms]

16. Unisys To Expand Job Cuts from 3,600 to 5,500

http://www.crn.com/sections/vista/vista.jhtml?articleId=190600123

BOSTON - Computer services company Unisys Corp. Wednesday said its second-quarter loss widened far more than expected as it expanded job cuts to 16 percent of its work force, sending shares sharply lower.

The results included a pretax charge of $141.2 million to help cover an additional 1,900 job cuts.

The Blue Bell, Pennsylvania, company now plans to cut a total of 5,500 positions, up from its previous target of 3,600. It said it cut 2,200 jobs in the second quarter, expects to eliminate 1,300 in the third quarter, and expects to complete about 90 percent of all cuts by the end of this year.

Unisys, whose shares fell nearly 12 percent, posted a second-quarter loss of $194.6 million, or 57 cents a share, compared with a year-earlier loss of $27.1 million, or 8 cents a share.

Revenue fell to $1.41 billion from $1.44 billion.

Analysts had expected a loss of 25 cents a share on revenue of $1.45 billion, according to Reuters Estimates.

...more...

[UpInArms]

17. Allstate quarterly earnings rise as insurance premiums were boosted

http://news.yahoo.com/s/nm/20060719/bs_nm/financial_allstate_earns_dc

NEW YORK (Reuters) - Allstate, the largest publicly traded insurer of homes and autos in the United States, said on Wednesday that quarterly earnings jumped, helped by rising premium income.

Allstate also boosted its expectations for full year earnings.

The insurer said net income rose to $1.21 billion, or $1.89 a share, from $1.15 billion. or $1.71 a share a year earlier.

Operating income, which ignores realized gains and losses on investments, was $1.27 billion, or $2.00 a share.

On that basis, analysts had expected earnings of $1.61 a share, according to Reuters Estimates.

Allstate's earnings suffered last year after the insurer was forced to make big payouts to customers hit by hurricanes in the United States. But insurers' losses so far this year seem to be declining.

...more...

[UpInArms]

18. Nickel for your thoughts? US bill seeks penny's end

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-07-20T120021Z_01_N17321144_RTRIDST_0_LIFE-PENNY-GENERAL-FEATURE.XML

NEW YORK, July 20 (Reuters) - Look out, Abe Lincoln.

The campaign against the penny, the copper-coated coin stamped with the face of the former U.S. president, gathered momentum this week with the introduction of legislation to pull it from circulation.

Rep. Jim Kolbe, Republican of Arizona, on Tuesday introduced a bill that would phase out the coin by rounding all transactions up or down to the the nearest nickel, or 5 cents.

Pennies are copper-coated zinc, and due to a recent run-up in the prices of those metals -- with zinc up to about $1.49 cents a pound from about 50 cents in 2000 -- the penny now costs 1.4 cents to make, according to the United States Mint.

Producing and handling pennies costs the United States about $900 million a year, according to Wake Forest University professor Robert M. Whaples, whose research Kolbe cites.

<snip>

"The penny has been a nuisance for years but now that the cost of a penny exceeds its value, the landscape of the debate has completely changed," Kolbe said.

<snip>

The coin's very existence inspires confidence in the ability of the U.S. central bank, the Federal Reserve, to control inflation and prevent money from losing its value.

...more...

[the other one]

22. Not happening soon. The 100th anniversary

of the lincoln cent is 2009. The lincoln cent is the longest running coin design in the history of the universe, and the mint stands to capitalize in a big way with the promotions which accompany the 100th anniversary (the 200th anniversary of lincoln's birth). With smart marketing, the mint and the treasury could more than make up for a $900 million per year shortfall over the next few years.

[happyslug]

34. So? The mint could then issue an 100th year commenitive.

Even if the Cent (its proper name) is abolished this year. In fact such a temporary revival would ENHANCE the Value as a collector item for people would both remember the Cent and NOT be using it (Making it more "Collectible" for more people).

Sorry, 2009 being the 100th anniversary of the Lincolns cent's birth will have no affect on its abolishment.

P.S. Another factor is pre-1982 Cents were made of Copper as opposed the the copper Covered Zinc of today's Cents. Right now the copper is such pre-1982 Cents is worth 2 1/2 cents. You will see more and more of them withdrawn from circulation by people who will melt them down for the copper content. This will lead to a Cent shortage (The mint can NOT produce all the cents needed TODAY to replace the cents removed from Circulation for their copper content). Thus you have TWO problems with the Cent, first the modern cents cost to much to produce and the older cent are worth more melted down then as cash. Maybe this one-two punch will force Congress to act on abolishing the Cent.

An additional problem is do to the price of Nickel and Copper going up, the Nickel cost more than 5 cents to produce (Through the Copper and Nickel in the Nickel is still worth less than 5 cents, a Nickel is 95% Copper and 5% Nickel, but the costs of converting the Nickel and Copper to slugs and then to Nickels makes the total cost to produce a Nickel more than 5 cents per Nickel).

The problem with abolishing the Nickel is that you have to abolish either the Dime or Quarter (You can NOT make change from a Quarter without a Nickel). If you get rid of the Dime, the Quarter can be the US smallest coin, four to the Dollar, two to the Half Dollar. If you get rid of the Quarter, the Dime can be your smallest coin, ten dimes to the Dollar, fie dime to the half Dollar. Either way you you do NOT need the Nickel, but if you keep BOTH the Nickel and the Dime you need the Nickel.

Personally I see the Cent going but it will take a worse economic crisis then we are at at the present time. Remember FDR's 100 days from your history book? What happen in those 100 days was congress finally passed various reform packages that had been proposed since the days of William Jennings Bryan, 40 years before. Why? ALL of the Banks had Closed and FDR to restore Confidence demanded various economic reforms be passed to solve the economic crisis. The Banks reopened after FDR's 2 week bank holiday (And the change from the Dollar being $20 to an ounce of Gold to $35 a Ounce). but additional reforms were still needed. Thus the 100 days of new laws that took Reagan and Bush over 20 years to undo.

A similar situation occurred in the 1790s when the US was forming under the Constitution. You had economic rough times so Jefferson, as Secretary of State, started to issue coins but in DOllars not pounds AND in a decimal system not the old English or Spanish System. The reform was accepted as needed but the push for reform was caused by economic Need.

Thus I do NOT see the Cent or the Nickel being abolished UNTIL WE ARE IN AN ECONOMIC TAILSPIN. At that point all the reforms people have proposed and have been fought against will be passed. Some will be passed to late, others just on time. en of these laws will be to abolish any coin costing the mint money to produce, such as the Cent and the Nickel (and along with the Dime for I see the Quarter becoming the new Cent during the hard times caused by rapid inflation).

[RawMaterials]

41. As with the 2001 bill

the new one calls for rounding down any cash transaction that ends in in 1,2,6 and 7 cents; totals ending in 3,4,8, or 9 cents would round up.

[happyslug]

48. Just abolish the Cent and let the state worry about the sales tax.

This is more grand standing to say he is against any "Windfall" to the states do to retailers being unable to pay sales tax to the Cent. Such "wind fall" to the States will be minor at best, most sales tax revenue is from the Sales of Automobiles NOT your kid buying a chocolate bar. Goes to show you how much the Anti-tax craze is in the GOP where they have address the non-issue of a tax windfall to the states if and when the Federal Government abolish the Cent.

[the other one]

52. Wrong. The 2009 Cent will commemorate 100 years of lincoln cents.

The anniversary of Lincoln's birth is a seperate event which will be commemorated by Gold and Silver coinage. Whereas that will be a profitable release in its own right, it has limited marketing appeal because of its cost to consumers.

A circulating commemorative CENT is a marketing triumph in its own right, the release of which will draw attention to other profitable mint programs. Those programs will more than make up for the 1.8 billion in costs between now and then. The CENT will be marketed as a major triumph for US coins in general, as a complete century of the same design is unprecedented in circulating coinage. This is a time for treasury and the mint to shine, and they aren't going to kiss it away to save the taxpayers a little money.

Also I think that even though the mint may lose money on the circulating coins themselves, they make it up through ancilliary products that are already available and more products which will be heavily marketed for the next 2-3 years. This is all marketing my friend. The bottom line on circulating cents is not the only issue at play.

I would guess, although I haven't researched this, that Congress has already contracted with zinc and nickel producers to purchase their output REGARDLESS of the price. This is nothing new. Morgan silver dollars were made because Congress committed to buy the silver, not the other way around. Once they agree to buy it, they have to do something with it. At least making coins defrays the expense.

[happyslug]

81. But the Morgan dollars were issued at a profit

At the time the Morgan Dollars were issued the US was awash in Silver. The Silver in a typical Silver Dollar of that time period was worth about 70 cents. In fact you had people COUNTERFEITING Dollars using 94% Silver instead of the 90% Silver of the US Mint issued Silver Dollar AND MAKING MONEY ON THE COUNTERFEITS do to the difference in the value of the Silver in the Morgan Dollar at the time it was in circulation AND the face value of the Morgan Dollar.

Please note that the Mint and the Government was making money on the Morgan Dollar was even true if the Mint kept the Morgan Dollar in its Vault and issued Silver Certificate for their value. The Certificates cost even less to produce and the Government received a whole Dollar for the Certificate.

Thus Comparing the Morgan Dollar to the Cent is not a real good comparison, for the Mint made money on the Morgan Dollar while the Cent is costing the Mint Money to produce. Up till today the mint basically has made money for the US Government, but if the Cent is continued in production that might very well change. For example while the Post Office made money for the Federal Government it stayed part of the Government. When the Post Office started to cost money to run Congress created the Postal Service to replace the Post Office and told the Postal Service to and strip out all of the cross subsidies the Post Office incurred when the Post Office paid the bills for any Federal Building the post Office shared with other Government Offices (For example the Federal Courts. The Postal Service has been doing this for the last 30 years for the Profit from the Postal Service since 1970 is no wear near what is was prior to WWII (Before long distance phone, let alone faxes, e-mail etc).

With the tight budget do to the War in Iraq, can the Government AFFORD the loss it is incurring in making Cents? For so long the Government can incur such a debt, but as I said in a previous post when push comes to shove and the US enters a time of severe economic hardship, I see both the Cent and Nickel Disappearing (along with the dime leaving just the quarter the half dollar and the Dollar as coins. In addition I also see the Government abolishing the Dollar bill given its short life span (average 18 months), to the Dollar coin life span (20 years).

The problem is you have resistance to any Change or Reform by the people who will be harmed by sid change or reform. At the same time the people who will benefit from the Change or reform just do not see the benefit of the change or reform and thus do not push for it till you have economic hard times forces them to accept the change or reform do to economic need (Thus the old saying, people will do the right thing, after they have exhausted all other possibilities).

Thus sooner or later you the Cent will be canceled and maybe even BEFORE 2009, IF YOU HAVE A CRISS. On the other hand if there is no crisis, than the cent may last for years even as its slowly cost the Government money to produce. The fact that 2009 is the 100th year of producing the Cent will have, at best, a minor affect on this. If the crisis hits in 2008 for example, 2009 cents may be produced for circulation but then production will stop. If the Crisis hits BEFORE 2008, (For example 2007) I do NOT see the Government continue to loss money just to make less money (i.e. less than the LOSS to produce in 2007 and 2008 than the profit from producing the 2009).

One last comment, previous Commemorative Coins make money when people withdraw them from Circulation to add to their collection. The profit, to the mint, comes from the difference it cost to produce the coin AND the face value of the Coin (Roughly 2 cents per coin no matter its value, thus the State Quarters is making over 22 cents per quarter for the mint for every Quarter removed from circulation). At the present time it is costing the mint just les than 1 1/2 cents to produce a cent. Thus THERE WILL BE NO PROFIT, for the Mint, IN PRODUCING THE 2009 CENT. The Mint in fact will LOSE money on such cents. People will Collect them, at one cent apiece, but the cost to the Government to produce will be 1 1/2 cents a piece. Thus a NET LOSS for the Mint. The better solution would be to abolish the Cent and then mint commemorative ones for 2009 and sell them for a 5 to 10 cents a piece. The Mint will make money in such a situation.

[54anickel]

23. Bwahaha, a nuisance? Sure it is, just like rising gold prices are a

nuisance to those who don't want you to realize the buck's value just keeps going down. But ignore that reason, I'm surprised it even got mentioned (way at the end of the entire article!)

[skids]

26. The cost of the penny...

...that is, the cost to manufacture a penny, has been higher than it's value for quite some time, because materials are only part of that cost.

That's not the issue. The issue is whether metal scrappers will start an illicit traffic in pennies. I've heard of some folks that made a good amount of coin destroying a good amount of coin the last time it happenned. And the solution was simple -- use a different metal. Of course, steel is ferromagnetic unless alloyed specifically not to be, so we have to wonder what the impact of having ferromagnetic currency would be.

(Maybe we should make the higher denomination coins out of rare-earth magnetic material. Then you could crush them up and magnetize them to make generators after the fall of civilization, along with any copper pennies you managed to squirrel away.)

[trogdor]

35. Why not make them out of recycled polyethylene?

We make about 15 billion new pennies a year. If it costs 40% more to make them than they're worth, we're wasting $60,000,000 a year for no good reason other than the fact we really, really admire Abraham Lincoln. Sooner or later, there will be no practical substitute material on Earth that would bring the cost of stamping out billions of pennies below that of the face value of the coins themselves. What then? I say we shitcan the penny, and probably the nickel as well.

[UpInArms]

21. Gold flat in early trade (@ $643.50 oz)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB8FFD491%2D1B1F%2D402B%2DBFF3%2DB005FDD46030%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Gold futures opened flat on Thursday, as the dollar regained some strength after its prior-session fall and investors awaited Federal Reserve Chairman Ben Bernanke's second day of testimony to Congress. Gold futures were last down 80 cents at $643.50 an ounce on the New York Mercantile Exchange. Other metals prices were mixed. Silver added 1.50 cents at $11.140 an ounce. Copper edged down 9.65 cents at $3.4970 a pound, platinum dropped $4.50 at $1,233.0 an ounce and palladium declined 55 cents at $317.50 an ounce.

[UpInArms]

90. Gold closes @ $632.50 oz

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD6374961%2DF748%2D420C%2DA942%2DC120D3EA23E0%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Gold futures closed down Thursday, continuing the recent volatile trend, as a decline in crude oil prices encouraged traders to lock in gains. Gold futures closed down $10.30 at $632.50 an ounce on the New York Mercantile Exchange. Other metals prices also posted losses. Silver dropped 6 cents at $11.065 an ounce. Copper edged down 18.4 cents at $3.4095 a pound, platinum dropped $11.20 at $1,226.30 an ounce and palladium declined $6.05 at $312 an ounce.

[rfranklin]

24. Jobless claims highest since February....

Yeah, good news for capitalists....bigger labor pool, lower wages!

Up 85,000.

[rfranklin]

27. I don't get it...85,000 more people unemployed yet...

the headline says jobless claims fall????

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCB84D80B%2D58F4%2D47C4%2DB10F%2D4B1ED7CFADFD%7D&dateid=38918%2E3543501736%2D879288476&siteid=mktw

[UpInArms]

30. you're looking at the continuing claims number - the weekly number fell

for the report and all the numbers - see http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2400965&mesg_id=2401117

[spotbird]

31. 304,000 is good news?

because the forecast was 320,000?

Shoot they should forecast 600,000 next month and the news will be ecstatic!

How long will these made up good-news stories fool people? Forever?

[UpInArms]

33. We seem to awaken to a new world every day - yesterday

didn't matter - tomorrow will never come - war is peace - black is white - up is down :eyes:

[mike923]

47. I believe the figure is anything less than 400K results in a net gain.

At least that was the number they put out 3 or 4 years ago.

[UpInArms]

28. Treasurys remain lower after drop in weekly jobless claims

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B271C2396%2D4CB4%2D414E%2D93CE%2D58298DB9C36E%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Treasury prices remained under pressure early Thursday, sending yields higher, following news that first-time claims for unemployment benefits fell sharply in the latest week, reversing a sharp rise two weeks ago. But the losses were linked more to position-squaring after a major rally on Wednesday than to the weekly data, which can be volatile. The benchmark 10-year Treasury note last was off 6/32 at 100-11/32 with a yield ($TNX : 5.073, +0.14, +0.3% ) of 5.078%, up from 5.056% at Wednesday's close. The number of claims in the latest week fell 30,000 to 304,000, the lowest level since mid-June. The consensus forecast of Wall Street economists was for claims to fall 12,000 to 320,000. The sharp gain two weeks ago was linked to one-off developments, including the temporary shutdown of the New Jersey government.

[UpInArms]

32. Printing Press Hums: Fed adds reserves via $7 bln 14-day system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-20T130840Z_01_N20328560_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, July 20 (Reuters) - The Federal Reserve on Thursday said it added temporary reserves to the banking system through 14-day system repurchase agreements worth $7 billion.

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

[Roland99]

37. Rep. Ron Paul on Thom Hartmann today (supposedly) to discuss Money Supply

and how it's grown drastically in the last few years.


Don't have a link but that's what I was informed.

[UpInArms]

40. Printing Faster: Fed adds reserves via overnight system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-20T133702Z_01_N20345478_RTRIDST_0_MARKETS-FED-OPERATIONS-UPDATE-1.XML

NEW YORK, July 20 (Reuters) - The Federal Reserve said on Thursday it added temporary reserves to the banking system through overnight system repurchase agreements.

Earlier, the Fed added $7 billion in temporary reserves to the system through 14-day 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

hmmmm.... went to the frb.org site and the amount of overnight repos was not disclosed :eyes:

guess the faeries' wallets were getting thin :evilgrin:

[UpInArms]

51. Bernanke says wages can rise without causing inflation

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B2F8328DD%2DE0F2%2D48C8%2D8148%2DBCCEA364A677%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- Fed chief Ben Bernanke said he expects the wages of American workers, adjusted for inflation, to rise in coming quarters, and said the increase is not necessarily inflationary. "I do expect...real wages to rise," Bernanke said at the start of his second day of testimony to Congress on the economy and monetary policy. "They could rise without inflation," Bernanke said. "Higher real wages are compatible with low inflation," he said.

What happened to the "wage inflation" mantra?

[Roland99]

55. "Higher real wages are compatible with low inflation" - WTF?!?!

So, people are going to magically start saving and reverse this negative savings trend?

Some may start paying down some debt but people are not going to change behavior instantaneously!!

[Darkhawk32]

56. I understand your point but it also says something to me too...

Increase in minimum wage <> higher prices

Which as I've always said, direct labor cost is not a large factor in COGS.

[Roland99]

60. Very good point! Is Ben making the case for an increase in the min. wage?

;)

[UpInArms]

57. Fed's Bernanke said possible to overtighten

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-20T152045Z_01_WBT005670_RTRIDST_0_ECONOMY-BERNANKE-RATES-URGENT.XML

WASHINGTON, July 20 (Reuters) - Federal Reserve Chairman Ben Bernanke on Thursday told lawmakers that it is possible to overtighten monetary policy as well as not sufficiently address inflation risks.

"Our objective is to achieve noninflationary sustainable expansion. There are risks to that in both directions," the Fed chief told the House Financial Services Committee after testifying for a second day giving the Fed's take on the health of the U.S. economy.

"It is possible to over-tighten. It is also possible to not sufficiently address inflation problems and inflation rises and that cuts into buying power," he cautioned.

Bernanke added that the best way to keep mortgage rates low is to keep inflation at bay.

...more...

[Roland99]

61. And we have to have mortgage rates low. MEW is fueling the GDP.

Along with the growth in the money supply to fund that debt.

[UpInArms]

58. US Fed's Bernanke-energy prices poised to flatten

"Chopper" Ben assumes the head-up-ass stance...

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-20T150401Z_01_WBT005667_RTRIDST_0_ECONOMY-BERNANKE-ENERGY-URGENT.XML

WASHINGTON, July 20 (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday that current core inflation rates are a good guide to where overall inflation rates are heading, as long as oil prices flatten out between $75 and $80 a barrel.

"Our best guess is to look at where the futures markets are, and that suggests that energy prices should stay roughly in the area where they are today," Bernanke said in response to questions from members of the House of Representatives Financial Services Committee.

[UpInArms]

105. September Crude closes @ $74.27

3:14 PM ET 7/20/06 SEPT. CRUDE FALLS 50 CENTS, ENDS AT $74.27 AFTER $75.30 HIGH

WHEE!!!!!

"oil prices flatten out between $75 and $80 a barrel"

and we are so screwed!

[UpInArms]

65. Bernanke: hedge funds best disciplined by markets

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-20T160908Z_01_N20419544_RTRIDST_0_ECONOMY-BERNANKE-HEDGEFUNDS-UPDATE-1.XML

WASHINGTON, July 20 (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday that investor discipline and large bank regulation help ensure that hedge funds do not take on too much risk and threaten the U.S. financial system.

"Broadly speaking, the best way to make sure hedge funds are not taking excessive risks or excessive leverage is through market discipline," Bernanke said in answer to questions before the U.S. House of Representatives Financial Services Committee.

A federal appeals court last month threw out a U.S. Securities and Exchange Commission rule adopted in 2004 that required most U.S. hedge fund advisers to register with the agency and open their books for occasional inspections.

The rule was the agency's first step toward policing a secretive industry that has doubled its assets in the past five years to become a powerful Wall Street force. But the court found that the SEC had overstepped its bounds.

...more...

[donkeyotay]

115. I'm gonna avoid the rush and start hating this guy early

"Broadly speaking, the best way to make sure hedge funds are not taking excessive risks or excessive leverage is through market discipline," Bernanke said . . .

Market discipline? Does he mean like when insiders game the system and take their profits to offshore accounts and then the share holders, mutual funds, pension plans and taxpayers make up the short fall? That kind of "market discipline," or does he mean nipple clamps?
:shrug:

[UpInArms]

78. Prices, not Fed, make homes less affordable-Bernanke

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-20T173820Z_01_WBT005678_RTRIDST_0_ECONOMY-BERNANKE-HOUSEPRICES-URGENT.XML

WASHINGTON, July 20 (Reuters) - Federal Reserve Chairman Ben Bernanke on Thursday said the main reason many Americans were being priced out of the housing market was five years of steady house price rises, not Fed interest rate increases.

"The main factor (making homes less affordable) is that housing prices have risen at double-digit rates for the past five years," Bernanke told the House of Representatives Financial Services Committee on the second day of his semi-annual congressional testimony.

"I think that, quantitatively, is the main reason that people have been getting priced out of some markets," he said in reply to a question on whether the Fed's rate rises meant fewer Americans could buy their own homes.

"Arithmetically, that can't go on forever because affordability begins to bite."

[UpInArms]

80. I guess that's because everyone pays cash up front for their house

and no one - literally no one - borrows a penny for their housing needs.

:wtf:

[54anickel]

84. WTF? It was the Fed's low rates and easy money that drove the

prices up. I'm not sure I've heard a whole lot of claims that rising rates are blocking people from being able to buy. Rising rates (and prices of everything else) are making it difficult for some who have ALREADY bought to keep their houses. Rising rates will bring an entire wave of affordable housing onto the market as they hit the foreclosure auction blocks. WTF is he talking about, and who the heck even asked the question? Was that a planted question or what? :crazy:

[Roland99]

87. There are older people with paid-off mortgages that are losing their homes

because they cannot afford the increased property taxes due to the increased appraisal price on their home! Esp. if they're on a fixed income.

And, historically, mortgage rates are still very low.

[54anickel]

102. Yep, guess that sort of figures into the rising costs of "other stuff".

That might very well be me someday down the road (I've discussed that concern here before). It's what happened to my folks back in the 80's. They decided to sell because the taxes were just too high, meanwhile it quickly became a buyer's market and they sold for almost half of the tax appraisal.

[UpInArms]

36. pre-opening blather

09:00 am : S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: +2.5. Futures trade is holding relatively steady near fair value, still signaling a relatively flattish start for the cash market. While Pfizer, Honeywell, Apple, and Motorola have increased optimism that profit growth will be sustained in the face of rising interest rates, the latter may be stalling more aggressive follow-through interest since participants will be searching for day-two of Bernanke's testimony and language in the FOMC Minutes (2:00 ET) to reinforce the belief that policy makers are near the end of their tightening cycle. Modest consolidation throughout the Treasury market has lifted the yield on the 10-yr note back to 5.07%.

08:49 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: flat.

08:32 am : S&P futures vs fair value: +0.5. Nasdaq futures vs fair value: +2.5. Stage is now set for stocks to open on flat to slightly higher note as futures indications continue to improve. Yahoo recovering some of yesterday's 22% drubbing, upbeat analyst commentary on eBay and more generally good earnings news now have the indices positioned to extend Wednesday's buying efforts. Separately, initial claims, which were compiled during the same week as the July payrolls data, fell 30K to 304K (consensus 320K). However, reaction from stocks and bonds has so far been muted.

08:00 am : S&P futures vs fair value: -1.6. Nasdaq futures vs fair value: -1.0. Futures versus fair value suggests the market may take a breather following Wednesday's broad-based rally as investors continue to sift through a barrage of earnings news. While last night's reports from tech bellwethers Intel, Qualcomm, Motorola, Apple, and eBay were a mixed bag, better than expected reports from Dow components Pfizer, amid an unexpected rise in Lipitor sales, and Honeywell, which also raised its FY06 guidance, are lending some early support. However, investors may be showing a sense of reserve ahead of Fed Chairman Bernanke's second day of testimony on the economy, which will be at the center of attention since his remarks yesterday helped stocks post some of their biggest gains of the year.

[UpInArms]

38. Stranded in Lebanon, Aussies angry

http://www.smh.com.au/news/world/stranded-aussies-angry/2006/07/20/1153166485984.html

Anger and frustration erupted among Australians stranded in Beirut after they were promised safe passage out by ship, only to be turned away at the last moment.

While an estimated 200 Australians secured spots on ships and helicopters leaving the war-torn Lebanese capital yesterday, about 170 others were left behind amid confusion at Beirut's port.

The hopes of many were dashed when a chartered Turkish ferry was found to have been booked by another country, and a Greek navy ship was forced by Israeli action to leave without many of the Australian evacuees.

<snip>

Mr Boustani said he was appalled officials put Australians at risk by telling them to gather at Beirut's Martyrs Square yesterday with bombs exploding just kilometres away.

After hours of waiting in the heat, they were taken in buses to Beirut port, where they remained until about 8pm local time before being driven to the hotel.

"Why the f--- didn't they tell us this before, instead of putting us at risk out in Martyrs Square?" he said.

...more...

[Roland99]

39. 9:36am - Strong out of the gates

DJIA 11,032.80 +21.38 +0.19%
Nasdaq 2,082.46 +1.75 +0.08%
S&P 500 1,261.76 +1.95 +0.15%
Dow Util 425.23 -1.05 -0.25%
NYSE 8,097.91 +21.26 +0.26%
AMEX 1,918.15 +6.61 +0.35%
Russell 2000 704.93 +2.59 +0.37%
Semcond 415.03 +0.52 +0.13%
Gold future 640.00 -2.80 -0.44%
30-Year Bond 5.12% +0.02 +0.29%
10-Year Bond 5.07% +0.01 +0.28%

[Roland99]

42. 10:01am - Into the pink now

DJIA 11,007.10 -4.32 -0.04%
Nasdaq 2,071.32 -9.39 -0.45%
S&P 500 1,258.65 -1.16 -0.09%
Dow Util 426.25 -0.03 -0.01%
NYSE 8,080.02 +3.37 +0.04%
AMEX 1,916.84 +5.30 +0.28%
Russell 2000 699.95 -2.39 -0.34%
Semcond 413.15 -1.36 -0.33%
Gold future 637.80 -5.00 -0.78%
30-Year Bond 5.11% +0.01 +0.22%
10-Year Bond 5.07% +0.01 +0.16%

[UpInArms]

44. 10:05 EST reddening with blather

Dow 10,994.77 -16.65 (-0.15%)
Nasdaq 2,067.40 -13.31 (-0.64%)
S&P 500 1,257.72 -2.09 (-0.17%)
10-Yr Bond 5.069 +0.01 (+0.20%)

NYSE Volume 363,121,000
Nasdaq Volume 367,849,000

10:00 am : Major averages now trade in split fashion as industry leadership is now mixed. Of the five economic sectors trading higher, Health Care is turning in the best performance, benefiting from Pfizer's strong report and raised FY06 EPS guidance from Baxter International (BAX 40.85 +2.27). Technology is another influential leader posting a modest gain, but with most of the sector's biggest gains coming from NYSE-listed stocks like MOT (+10.8%), HPQ (+1.4%), T (+1.0%), TXN (+1.8%) and GLW (+1.5%), AAPL's 11.5% surge can only do so much to help the struggling tech-heavy Nasdaq. Despite oil prices rebounding after three days of consolidation, Energy is pacing the way lower while the absence of leadership from the influential Financials sector is also worth noting. DJ30 +9.15 NASDAQ -4.32 SP500 +0.21 NASDAQ Dec/Adv/Vol 919/1409/312 mln NYSE Dec/Adv/Vol 905/1554/194 mln

09:40 am : As futures trade presaged, the market opens relatively unchanged but is creeping slightly higher following a generally good batch earnings news. Among the tech bellwethers reporting last night and lending some support this morning are Apple Computer (AAPL 60.57 +6.47), which is soaring 12% after profits rose 48% on stronger than expected Mac shipments, and Motorola (MOT 21.42 +2.17), which is up 12% after Q2 profits rose 48% on strong RAZR sales, leading to Q3 revenues being guided sharply higher. Also helping to offset a 57% decline in profit and lowered Q3 sales outlook from Intel (INTC 17.81 -0.68) have been better than expected reports from fellow Dow components Pfizer (PFE 23.77 +0.47) and Honeywell (HON 38.70 +0.46). DJ30 +24.26 NASDAQ +1.27 SP500 +2.36 NASDAQ Vol 168 mln NYSE Vol 92 mln

[Roland99]

46. NASDAQ's already lost about 1/2 of yesterday's gains.

[Roland99]

49. 11:01am - DJIA 11,018.63, +7.21, +0.1%

NASDAQ lightening its losses.



Maybe a range trading day?

[stop the bleeding]

50. around 2pm today FOMC

I am still curious as to what the minutes from the Fed's last meeting say.

[UpInArms]

45. 550,000 Ameren customers in Ill. & Mo. lose power

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-20T134608Z_01_N20400459_RTRIDST_0_UTILITIES-AMEREN-OUTAGES-UPDATE-1.XML

NEW YORK, July 20 (Reuters) - A half-million Ameren Corp. (AEE.N: Quote, Profile, Research) customers across Illinois and Missouri were left without power on Thursday due to a violent storm.

Damage was most significant in St. Louis, as well as in the city's surrounding county and metro east regions in Illinois, the St. Louis-based company said in a release.

The storm, which caused extensive tree damage, broken poles, downed wires and the loss of more than 400 distribution feeder circuits (each supplying power to 500-1,500 customers), hit around 7 p.m. Wednesday night and knocked out service to about 550,000 customers.

There are still about 450,000 customers remaining without service as of 6 a.m. Thursday morning.

Given the nature of the damage, Ameren said it could not offer customers anticipated restoration times but will make those available as soon as possible.

...more...

[UpInArms]

53. 11:12 EST numbers and blather

Dow 11,018.08 +6.66 (+0.06%)
Nasdaq 2,066.88 -13.83 (-0.66%)
S&P 500 1,260.76 +0.95 (+0.08%)
10-Yr Bond 5.045 -0.014 (-0.28%)

NYSE Volume 811,542,000
Nasdaq Volume 737,903,000

11:00 am : Stocks continue to languish around the unchanged mark as there still isn't a strong sense of conviction on either the bullish or bearish side of the aisle. Bonds, though, have turned around amid increased speculation that the Fed will be able to pause in August and are offering some support for the rate-sensitive Financials sector. However, as only one of four sectors now trading in positive territory, the indices continue to trade in mixed fashion. DJ30 +6.17 NASDAQ -12.89 SP500 +0.38 NASDAQ Dec/Adv/Vol 1770/929/704 mln NYSE Dec/Adv/Vol 1757/1178/499 mln

10:30 am : Market loses what little momentum it had at the onset, partly due to a sharp reversal in Technology. Recent sell-offs in semiconductor and software, as Intel (INTC 17.51 -0.98) spikes to fresh session lows along with Microsoft (22.98 -0.42), the fifth most influential component on the S&P 500 which reports tonight, have been the most obvious setbacks for tech. For instance, the Nasdaq is now giving up nearly half of yesterday's 1.8% advance. Hesitation on the part of buyers to more aggressively embrace otherwise solid earnings reports can also be attributed to some uncertainty as to what Fed Chairman Bernanke may say during an upcoming Q&A session that will wrap up his two-day semi-annual testimony.DJ30 -13.28 NASDAQ -16.41 SOX -1.2% SP500 -1.83 NASDAQ Dec/Adv/Vol 1652/930/544 mln NYSE Dec/Adv/Vol 1743/1074/368 mln

Notice that the decliners outnumber the advancers in both the DOW and the Nasdaq

[Roland99]

54. 8-5 Dec over Adv. Dec lead Adv almost every single day anymore.

[UpInArms]

59. 11:27 EST Wall Street quivers at wages increasing

and taking their "profits" with them

Dow 11,010.24 -1.18 (-0.01%)
Nasdaq 2,066.38 -14.33 (-0.69%)
S&P 500 1,259.21 -0.60 (-0.05%)
10-Yr Bond 5.045 -0.014 (-0.28%)

NYSE Volume 886,520,000
Nasdaq Volume 802,278,000

[UpInArms]

64. 12:47 EST numbers and blather

Dow 10,995.97 -15.45 (-0.14%)
Nasdaq 2,058.74 -21.97 (-1.06%)
S&P 500 1,257.51 -2.30 (-0.18%)
10-Yr Bond 5.041 -0.018 (-0.36%)

NYSE Volume 1,234,563,000
Nasdaq Volume 1,085,452,000

12:30 pm : Stocks are retracing morning lows as investors are now questioning just how much economic growth is moderating. At the top of the hour, the Philadelphia Fed index fell to 6.0 in July from 13.1 in June, which was well below economists' forecasts (consensus 12.0). Even though the report does not fit in with the "incoming" data that the Fed depends on to dictate monetary policy, the prices paid component rising to 50.3 from 48.7 does little to silence inflation hawks. DJ30 -22.12 NASDAQ -19.87 SP500 -2.50 NASDAQ Dec/Adv/Vol 1771/1047/1.02 bln NYSE Dec/Adv/Vol 1816/1276/762 mln

12:00 pm : After posting their second biggest gains of the year, stocks look tired midday amid a batch of mixed earnings results, nothing new from Bernanke and hesitation ahead of the FOMC Minutes.

Among the tech bellwethers reporting last night that are lending some support this morning are Apple Computer (AAPL 60.57 +6.47), which is soaring after handily beating forecasts on stronger than expected Mac shipments, and Motorola (MOT 21.42 +2.17), which is up 11% after Q2 profits rose 48% on strong RAZR sales, leading to Q3 revenues being guided sharply higher. Acting as an offset, though, have been notable losses in Intel (INTC 17.68 -0.81), which reported a 57% decline in profits and lowered its Q3 sales outlook, and Microsoft (MSFT 23.08 +0.32), which is off 1.4% ahead of its earnings tonight. Qualcomm (QCOM 35.89 -0.84) providing a disappointing Q4 outlook is also weighing on the tech-heavy Nasdaq and questioning the sector's growth prospects.

Meanwhile, with Bernanke being the center of attention as he wraps up his two-day semi-annual testimony before Congress, especially since his dovish remarks Wednesday were taken so fervently, the Fed Chairman basically sticking to yesterday's script is stalling momentum and allowing some areas to consolidate recent gains. Aside from split industry leadership dictating the early action, participants are also showing a sense of reserve ahead the 2:00 ET release of the FOMC Minutes, in which investors will be searching for language that reinforces the belief that policy makers are near the end of their tightening cycle. DJ30 +4.25 DJTA -0.8% DJUA +0.2% DOT -1.0% NASDAQ -11.78 NQ100 -0.3% R2K -1.0% SOX -0.7% SP400 -0.9% SP500 -0.11 XOI -0.2% NASDAQ Dec/Adv/Vol 1761/1021/920 mln NYSE Dec/Adv/Vol 1825/1227/686 mln

[Roland99]

66. 1:40pm. - Nothing to report. Numbers virtually unchanged.

[Roland99]

67. 1:45pm - Dang! What did I say?? NASDAQ gives up 2/3 of yesterday's gain.

DJIA 10,969.32 -42.10 -0.38%
Nasdaq 2,053.73 -26.98 -1.30%
S&P 500 1,255.83 -3.98 -0.32%
Dow Util 428.09 +1.81 +0.42%
NYSE 8,054.01 -22.64 -0.28%
AMEX 1,907.84 -3.70 -0.19%
Russell 2000 689.48 -12.86 -1.83%
Semcond 406.38 -8.13 -1.96%
Gold future 634.40 -8.40 -1.31%
30-Year Bond 5.08% -0.02 -0.43%
10-Year Bond 5.03% -0.03 -0.53%

[stop the bleeding]

68. next time don't say anything

:evilgrin:

and we still have to wait for the 2pm FOMC minutes

[Roland99]

70. LOL! Lots of 20pt+ swings in the last min. or two.

[stop the bleeding]

69. minutes must have been ok

cause the markets just took off like a rocket

on edit: they are back in the range - must be some "digesting" going on

[Roland99]

72. FOMC quick summaries

Entire FOMC concerned about core inflation in June: minutes

One FOMC member called June rate hike 'close call'

Entire FOMC concerned about core inflation in June: minutes

FOMC mindful of risk of sharper housing market slowdown

One FOMC member called June rate hike 'close call'

FOMC split on inflation outlook, most saw it moving lower

[stop the bleeding]

74. sounds like Ben's comments from yesterday are gonna

hurt people that bought lately in regards to how this afternoon shakes out DJIA is approaching 10950

[UpInArms]

73. 2:08 EST markets say FOMC means higher rates

Dow 10,966.84 -44.58 (-0.40%)
Nasdaq 2,051.89 -28.83 (-1.39%)
S&P 500 1,255.22 -4.59 (-0.36%)
10-Yr Bond 5.034 -0.025 (-0.49%)

NYSE Volume 1,614,314,000
Nasdaq Volume 1,381,055,000

2:00 pm : Market spikes to session lows within the last 30 minutes as Bernanke's two-day testimony comes to a close with no surprises but leaves investors anxiously waiting to see if the upcoming release of the FOMC Minutes reinforce the Fed Chairman's recent hints that the central bank is almost done raising rates. In the event the minutes offer some surprises with respect to the Fed's thinking on the pace of its tightening, such commentary will only make matters worse for the ongoing disappointment that is the Technology sector, which is off 1.0% today and down nearly 12% on the year.DJ30 -33.94 NASDAQ -27.90 SP500 -3.37 NASDAQ Dec/Adv/Vol 2016/888/1.32 bln NYSE Dec/Adv/Vol 1896/1292/1.02 bln

1:30 pm : More of the same for stocks as market breadth remains negative. As reflected in the A/D line, decliners outpace advancers on the NYSE by a 19-to-12 margin over while those on the Nasdaq hold a more convincing 2-to-1 edge. A 2-to-1 ratio of down to up volume at both the Big Board and Composite similarly reflects a bearish bias. Also to the dismay of the bulls trying to extend yesterday's Bernanke-inspired rally has been above average volume, which offers some conviction behind today's consolidation efforts. DJ30 -19.78 NASDAQ -21.37 SP500 -1.78 NASDAQ Dec/Adv/Vol 1936/941/1.22 bln NYSE Dec/Adv/Vol 1905/1250/934 mln

[Roland99]

75. 2:10pm - Up/down Up/down...grab the dramamine!

DJIA 10,953.23 -58.19 -0.53%
Nasdaq 2,050.39 -30.32 -1.46%
S&P 500 1,253.89 -5.92 -0.47%
Dow Util 427.74 +1.46 +0.34%
NYSE 8,041.48 -35.17 -0.44%
AMEX 1,906.19 -5.35 -0.28%
Russell 2000 687.98 -14.36 -2.04%
Semcond 404.82 -9.69 -2.34%
Gold future 632.80 -10.00 -1.56%
30-Year Bond 5.08% -0.02 -0.37%
10-Year Bond 5.03% -0.03 -0.61%

[fasttense]

79. Come on PPT kick in to gear like you did yesterday.

:sarcasm:

[zippy890]

82. whats PPT?

you've got me curious

:hi:

Thanks

[stop the bleeding]

83. me as well, sometimes these abbreviations are an

obvious thing, but sometimes they are not.

Thanks for asking :)

[54anickel]

85. Plunge Protection Team,aka fairies, aka Working Group on Financial Markets

http://www.washingtonpost.com/wp-srv/business/longterm/blackm/plunge.htm

[skids]

What, mogambo doesn't have his own a.k.a. for that? n/t

[54anickel]

93. I didn't want a deleted post for extreme profanity.

:evilgrin:

[zippy890]

103. interesting - are these the 'faeries' that

come in the afternoon to help out the sliding market that I read about
here from time to time?

[Roland99]

107. Ayup. Sometimes they're pretty well-fed on fresh Repos

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

[UpInArms]

86. RayGun Creation: Working Group on Financial Markets

http://www.archives.gov/federal-register/codification/executive-order/12631.html

Executive Order 12631--Working Group on Financial Markets

Source: The provisions of Executive Order 12631 of Mar. 18, 1988, appear at 53 FR 9421, 3 CFR, 1988 Comp., p. 559, unless otherwise noted.

By virtue of the authority vested in me as President by the Constitution and laws of the United States of America, and in order to establish a Working Group on Financial Markets, it is hereby ordered as follows:
Section 1. Establishment. (a) There is hereby established a Working Group on Financial Markets (Working Group). The Working Group shall be composed of:
(1) the Secretary of the Treasury, or his designee;
(2) the Chairman of the Board of Governors of the Federal Reserve System, or his designee;
(3) the Chairman of the Securities and Exchange Commission, or his designee; and
(4) the Chairman of the Commodity Futures Trading Commission, or her designee.
(b) The Secretary of the Treasury, or his designee, shall be the Chairman of the Working Group.
Sec. 2. Purposes and Functions. (a) Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation's financial markets and maintaining investor confidence, the Working Group shall identify and consider:
(1) the major issues raised by the numerous studies on the events in the financial markets surrounding October 19, 1987, and any of those recommendations that have the potential to achieve the goals noted above; and
(2) the actions, including governmental actions under existing laws and regulations (such as policy coordination and contingency planning), that are appropriate to carry out these recommendations.
(b) The Working Group shall consult, as appropriate, with representatives of the various exchanges, clearinghouses, self-regulatory bodies, and with major market participants to determine private sector solutions wherever possible.
(c) The Working Group shall report to the President initially within 60 days (and periodically thereafter) on its progress and, if appropriate, its views on any recommended legislative changes.

Sec. 3. Administration. (a) The heads of Executive departments, agencies, and independent instrumentalities shall, to the extent permitted by law, provide the Working Group such information as it may require for the purpose of carrying out this Order.
(b) Members of the Working Group shall serve without additional compensation for their work on the Working Group.
(c) To the extent permitted by law and subject to the availability of funds therefore, the Department of the Treasury shall provide the Working Group with such administrative and support services as may be necessary for the performance of its functions.

see also:

GARGANTUA'S MANIPULATION OF THE MARKETS

and

Preventing the 'plunge'

[54anickel]

92. Thanks UIA. I was going to dig out those better links, but got called

away. I had a feeling you'd have them close to you finger tips. ;-)

[UpInArms]

100. 54anickel - you do know me well!

:pals:

[54anickel]

110. Shucks, guess that comes from hangin' out together at what has become

known as "Ozy's Joint" on a nearly daily basis for so long.

Can I buy ya one? :beer:

Heck, let's make it a round for everyone!!! :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer:

(Maeve was always better at the "rounds")

[stop the bleeding]

113. I'll drink to that

:toast::beer:

[Roland99]

116. Count me in, too!

:toast:

[UpInArms]

125. In that case, I'll have Ozy put a round on my tab - beer and wine for all!

:beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer::beer:

[54anickel]

130. He lets you run a tab!?!?! Heh-heh-heh...Pulled mine long ago.

[UpInArms]

133. actually, I may have taken the liberty

of using his card :evilgrin:

[54anickel]

134. Bwahahaha, he still hasn't learned to keep a tight hand on that thing!!!

In that case, howz-bout another round with cheers to Ozy!!!!

[Roland99]

135. Ozy! Ozy! Ozy!

[stop the bleeding]

136. maybe he should use

the same rules with the card as he had to do with the keyboard incident from the other day :)

[UpInArms]

137. Here's to Ozy!

(just don't tell him about that card!)



:beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer:

[54anickel]

139. My lips are sealed...soon as I finish this mug, that is. Cheer and thanks!

[UpInArms]

91. PAC tied to DeLay is fined, shutting down

http://news.yahoo.com/news?tmpl=story&cid=548&e=4&u=/ap/20060720/ap_on_el_ge/delay_armpac

WASHINGTON - The fundraising organization that helped vault former Rep.
Tom DeLay to Republican leadership ranks in the House and distributed election money to numerous Republicans has been fined for campaign finance violations and is shutting down.

Under an agreement with the Federal Election Commission, Americans for a Republican Majority's political action committee agreed to pay a $115,000 fine and close. The agreement, reached July 7, was made public late Wednesday.

The agreement resulted from an audit by the FEC of the committee's records for Jan. 1, 2001 to Dec. 31, 2002. The audit found DeLay's committee had not properly reported contributions, disbursements and cash on hand.

It also found the committee failed to properly report outstanding debts and obligations and did not follow federal rules for paying for shared federal and nonfederal activities.

<snip>

"The reason DeLay became so powerful was all about the money, the amounts of money he could pull in and could distribute to his colleagues," said Melanie Sloan, the watchdog group's executive director. "Nearly every Republican in Congress received money from ARMPAC, thus consolidating his power base. They loved him because he kept them flush. Now we find out, they brought in huge amounts of money, but they did it illegally."

...more...

and there's a discussion thread for this topic here:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2401802&mesg_id=2401802

(hat tip to Judi Lynn!)

[Roland99]

95. They lost and ARM. Will they lose a LEG next?

;)

[54anickel]

112. Sounds like a slap on the wrist and an attempt to quickly sweep it

under the rug before "the rest of the story" comes out. Nothing to see here - move along now folks. Seems to be the Repub MO

[Roland99]

94. 3:03pm - Busting some new daily lows

DJIA 10,947.79 -63.63 -0.58%
Nasdaq 2,050.52 -30.19 -1.45%
S&P 500 1,252.71 -7.10 -0.56%
Dow Util 428.20 +1.92 +0.45%
NYSE 8,032.38 -44.27 -0.55%
AMEX 1,904.46 -7.08 -0.37%
Russell 2000 687.60 -14.74 -2.10%
Semcond 406.54 -7.97 -1.92%
Gold future 632.50 -10.30 -1.60%
30-Year Bond 5.08% -0.02 -0.41%
10-Year Bond 5.03% -0.03 -0.61%

[stop the bleeding]

97. but but

we are suppose to be celebrating - after all yesterday showed that the market is a full blown rally:sarcasm:

on edit: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2398584#2399500

best advice for the week;)

[Roland99]

98. heh heh

:toast:

[UpInArms]

96. Cigarette giants set to report next week

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B106627A7%2D741D%2D4AB8%2D99F9%2D9A27AD740654%7D&symbol=

CHICAGO (MarketWatch) - Two U.S. tobacco titans will report their second-quarter numbers next week - and both are expected to post increased profit.

Altria Group (MO : 79.29, +1.83, +2.4% ) is first up, with an earnings statement expected before the start of trading on Tuesday. The parent of Philip Morris and Kraft (KFT : 30.23, -0.01, 0.0% ) is expected to earn $1.37 a share on $17.9 billion in revenue -- up 4% and 3%, respectively - according to the average estimate of analyst polled by Thomson First Call.

On Wednesday morning comes the turn of Reynolds American (RAI : 124.48, +4.17, +3.5% ) , which is expects to earn $2.06 a share on sales of $2.1 billion. While that represents a profit jump of 10%, revenue is expected to be down about 1%. Reynolds has been busy squeezing out costs wherever it can to build margins in the face of a steady volume decline in the U.S. cigarette market.

Analyst Judy Hong of Goldman Sachs wrote that she expects Altria and Reynolds results to "be generally positive for the tobacco stocks, although some of the potential upside may already be priced in."

<snip>

Both companies got a welcome bit of good news just after the close of the quarter when the Florida Supreme Court threw out a $145 billion punitive-damages award against cigarette makers. The panel also stripped the case of its class-action status but left open the possibility for damage claims by individuals.

...more at link...

[UpInArms]

99. Justice Dept Official McCallum (*Co crony) questioned about tobacco case

http://news.yahoo.com/news?tmpl=story&cid=513&e=9&u=/ap/20060720/ap_on_go_ot/tobacco_mccallum

WASHINGTON - A Justice Department official who slashed the amount of money being sought from tobacco companies made misleading statements to Congress, says a former government lawyer who handled a landmark lawsuit against the industry.

The comments by attorney Sharon Eubanks follow Associate Attorney General Robert McCallum's decision a year ago to downsize a proposed smoking cessation program from $130 billion to $10 billion. That's the amount the government wants a judge to order cigarette companies to pay.

A month ago, McCallum sent written statements explaining his actions to the
Senate Foreign Relations Committee, which was considering his nomination to be U.S. ambassador to Australia. The Senate subsequently confirmed McCallum, a former Yale classmate of President Bush, to the post.

<snip>

"I don't remember ever receiving any directive from the White House about anything that had to do with the tobacco case," McCallum said in his sworn videotaped deposition.

<snip>

Internal Justice Department e-mails obtained by The Associated Press show that the White House OK'd an op-ed piece by McCallum in USA Today defending the department's drastic cut in the amount it was demanding the tobacco companies pay.

"Please hold up. The White House wanted some changes," one Justice Department employee wrote regarding McCallum's op-ed piece.

...more...

[Roland99]

104. The Reagan defense???

:eyes:

[UpInArms]

108. Bend-Over Alert: No pension liability to be imposed on GMAC buyer

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B83417EE2%2D57FD%2D459D%2DADB5%2D0BA17F0BEC08%7D&symbol=

DETROIT (MarketWatch) -- General Motors Corp.'s (GM) move to sell a majority stake in its finance arm has cleared a critical hurdle as the Pension Benefit Guaranty Corp. has pledged not to go after the assets being sold even if GM fails to meet its pension obligations in the future.

GM disclosed its agreement with the PBGC in a Securities and Exchange Filing issued Thursday. In its SEC filing, GM also said that a unit of PNC Financial Services Group, Inc. (PNC) recently joined the Cerberus Capital Management-led consortium, which also includes Citigroup Inc. (C) and Aozora Bank Limited.

The group is expected to take control of General Motors Acceptance Corp. in the fourth quarter. The deal was announced in April The PBGC approval is considered an essential step in GM's plan to close the $14 billion sale of 51% of GMAC. GM approached the PBGC regarding the issue earlier this year after it agreed with Cerberus to ask PBGC to free GMAC and its subsidiaries and shareholders from any liability that could arise from GM pension plans.

As of Dec. 31, GM reported its pension obligation as being over-funded by about $7 billion based on generally accepted accounting principles. The PBGC recently said GM's obligation is underfunded on a termination basis, but the estimate is outdated due to a hike in interest rates that is favorable for GM.

...more...

[Roland99]

109. 3:24pm - NASDAQ gives up almost all of yesterday's gains. DJIA 1/3.

DJIA 10,941.62 -69.80 -0.63%
Nasdaq 2,047.76 -32.95 -1.58%
S&P 500 1,251.94 -7.87 -0.62%
Dow Util 428.16 +1.88 +0.44%
NYSE 8,028.56 -48.09 -0.60%
AMEX 1,902.93 -8.61 -0.45%
Russell 2000 686.74 -15.60 -2.22%
Semcond 406.28 -8.23 -1.99%
Gold future 632.50 -10.30 -1.60%
30-Year Bond 5.08% -0.02 -0.41%
10-Year Bond 5.03% -0.03 -0.61%

[VegasWolf]

111. Looks like business as usual after yesterdays abnormal spike. Finished

testing the lows of 2006 my ass.

[stop the bleeding]

114. The way how things are going right now

I wouln't be surprised to see another 20 point drop sometime from 3:45-3:55 on the DJIA

[Roland99]

119. Was almost -80 a sec ago.

10,934.74, -76.68, -0.7%

[stop the bleeding]

121. well, well @ 3:46 we touched 10927 down from

10942 @3:38/3:39- 15 points not 20 - I need a spanking now:spank:

[Roland99]

124. It's still going down...10,925

[UpInArms]

117. 3:38 EST numbers and PPT-acknowledging(?) blather

Dow 10,943.07 -68.35 (-0.62%)
Nasdaq 2,046.63 -34.08 (-1.64%)
S&P 500 1,251.51 -8.30 (-0.66%)
10-Yr Bond 5.028 -0.031 (-0.61%)

NYSE Volume 2,177,414,000
Nasdaq Volume 1,795,944,000

3:30 pm : Last ditch effort to pare some of the market's losses doesn't last long as sellers remain in complete control going into the close and position the indices to end the day at session lows. Bonds, however, have recently closed higher across the yield curve as further deterioration in stocks late in the day prompts a flight-to-quality bid. The 10-yr note finished up 5 ticks, pushing the yield to a six-week low of 5.02%, as traders continue to believe that a slowing economy should keep inflation pressures under control and give the Fed reason to pause in August. DJ30 -72.12 NASDAQ -33.57 SP500 -8.23 NASDAQ Dec/Adv/Vol 2154/799/1.75 bln NYSE Dec/Adv/Vol 2089/1137/1.41 bln

3:00 pm : Market bounces off its worst levels but continue to sport losses heading into the final hour of trading. Of the six sectors losing ground, Energy, Materials and Industrials, which are also among this year's best performers, are posting losses of at least 1.0%. Consumer Staples, however, is turning in a respectable performance as Altria Group (MO 79.24 +1.78) hits a 52-week high after JP Morgan raised its price target to $105. Health Care, another defensive-oriented sector garnering some interest amid a market downturn, has gotten additional help from strength in the drug group (e.g. PFE +1.4%), medical equipment (e.g. BAX +4.8%) and hospitals (e.g. HCA +10%).DJ30 -49.78 NASDAQ -26.54 SP500 -4.98 NASDAQ Dec/Adv/Vol 2144/784/1.59 bln NYSE Dec/Adv/Vol 2082/1127/1.27 bln

[54anickel]

122. Wonder if tomorrow will be the battle to stay above weekly resistance?

I believe Iossif had that at 10,900. Will we see the fingernails clawing to hang on?

Decided to dig up the numbers. Let's see if they can pull the S&P outta their ass before close.

DJIA: Weekly support at 10650 and 10200. Resistance at 10900 and at 11300.
SP500: Weekly support at 1219 and 1160. Resistance at 1265 and at 1280.
NASDAQ: Weekly resistance at 2100 and 2200. Support at 2010 and 1890.

[VegasWolf]

123. I just can't imagine anybody wanting to go long in this environment. nt

[stop the bleeding]

127. yep that 10900 number is looking about right on

my charts - 10932 would be the 200MA, so we just kicked back under that, and the 10900 would be the old supports/restinance established back in the spring time/Febuary and once again in June

[Roland99]

120. 3:46pm - NASDAQ 7/19 gains GONE. Dow turns bloody

DJIA 10,928.58 -82.84 -0.75%
Nasdaq 2,043.31 -37.40 -1.80%
S&P 500 1,250.26 -9.55 -0.76%
Dow Util 427.56 +1.28 +0.30%
NYSE 8,014.95 -61.70 -0.76%
AMEX 1,900.49 -11.05 -0.58%
Russell 2000 684.65 -17.69 -2.52%
Semcond 404.99 -9.52 -2.30%
Gold future 632.50 -10.30 -1.60%
30-Year Bond 5.08% -0.02 -0.41%
10-Year Bond 5.03% -0.03 -0.61%

[54anickel]

128. Can't believe the PPT abandoned the S&P like that. It's like they

sat today out. :shrug:

[VegasWolf]

126. Nowhere near enough repo money for the PPT to put lipstick on this pig.nt

[UpInArms]

129. Judge denies At&T, government motion to dismiss wire-tap case

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B7A923978%2D7FAB%2D404C%2D8139%2D3E7256C987D7%7D&symbol=

NEW YORK (MarketWatch) -- A district judge denied a request by AT&T Inc. (T) and the U.S. government to dismiss a lawsuit alleging the two had illegally tracked domestic and foreign telephone calls.

"The court denies the government's motion to dismiss...on the basis of state secrets and denies AT&T's motion to dismiss," U.S. District Judge Vaughn Walker said in a court order filed Thursday.

The lawsuit, filed by the Electronic Frontier Foundation, accuses AT&T of illegally working with the National Security Agency to eavesdrop and track phone calls without warrants.

The complaint is largely based on documents provided by a former AT&T technician, Mark Klein, who talked of a "secret room" that was installed at AT&T's network facility in San Francisco. Reports indicate there may have been other such facilities throughout AT&T's network.

The San Antonio phone company argued that it should be immune from persecution since it received government authorization to conduct the surveillance. On April 28, it filed to dismiss the suit.

...more...

see topic thread here:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2402254&mesg_id=2402254

(hat tip to LiberalHeart!)

[stop the bleeding]

131. why does the judge hate "Murika"?

Have to see what Friday holds for the market, earnings or reports?

[Roland99]

132. Closing numbers: Dow loses 40% of 7/19 gains. NASDAQ loses and then some!

DJIA 10,928.10 -83.32 -0.76%
Nasdaq 2,039.42 -41.29 -1.98%
S&P 500 1,249.13 -10.68 -0.85%
Dow Util 427.42 +1.14 +0.27%
NYSE 8,007.56 -69.09 -0.86%
AMEX 1,897.54 -14.00 -0.73%
Russell 2000 683.61 -18.73 -2.67%
Semcond 404.13 -10.38 -2.50%
Gold future 632.50 -10.30 -1.60%
30-Year Bond 5.08% -0.02 -0.41%

[54anickel]

138. Not looking too promising for tomorrow. Will they try another run

at resistance going into the weekend? I doubt it, but who the heck knows anymore with this crazy Ponzi scheme.

[54anickel]

141. And the yada

4:20 pm : Per usual, Thursday was no exception to the on-again, off-again trading pattern that has driven the stock market for some time now. After stocks posted their second biggest gain of the year yesterday, they reversed course in a noticeable manner following a mixed bag of earnings results from the technology sector that renewed concerns about the pace of a slowdown in economic growth.

The Nasdaq more than erased all of Thursday's 1.8% surge, on above average volume no less. Acting as the biggest drag was Intel Corp (INTC 17.10 -1.38), which plunged 7.5% after reporting a 57% decline in profits and lowering its Q3 sales outlook. Adding insult to injury was a 2.4% drubbing on the SnP 500's fifth most influential component -- Microsoft (MSFT 22.85 -0.55) -- as investors were hesitant to hold onto shares going into its earnings report after Thursday's close. Qualcomm (QCOM 35.85 -0.88) providing a disappointing Q4 outlook also weighed on sentiment and questioned the growth prospects of a sector that continues to underperform.

In stark contrast, there were two tech bellwethers out with solid earnings that enjoyed noticeable gains. Apple Computer (AAPL 60.50 +6.40) soared 12% after handily beating forecasts on stronger than expected Mac shipments while Motorola (MOT 20.60 +1.35) surged 7% after Q2 profits rose 48% on strong RAZR sales, which led to management guiding Q3 revenues sharply higher.

Be that as it may, with Fed Chairman Bernanke's final day of testimony as the center of attention and the release of the FOMC Minutes from the June meeting only offering a slight hint of a pause on August 8th, a renewed wave of afternoon selling interest kept buyers on the sidelines for good and closed the major averages at session lows.

Even though Bernanke basically stuck to yesterday's script, managing to hit all the usual points relating to the moderating economy and risks to inflation, policy makers noting in the Minutes that "significant uncertainty accompanied the appropriate setting of policy going forward," also left investors uncertain as to whether the Fed will finally take a breather after two years of tightening. In fact, while members unanimously voted to raise rates to 5.25% at the last meeting, members had difficulty judging whether the level of rates was now "modestly restrictive or somewhat accommodative," with one member even indicating that the decision to raise rates at the June meeting was "a close call." The Fed's uncertainty aside, it is our belief, based on Bernanke's more recent testimony, that the end of the tightening effort is indeed near. BTK -1.4% DJ30 -83.32 DJTA -4.4% DJUA +0.3% DOT -2.0% NASDAQ -41.29 NQ100 -1.6% R2K -2.7% SOX -2.5% SP400 -2.3% SP500 -10.68 XOI -1.4% NASDAQ Dec/Adv/Vol 2253/745/2.06 bln NYSE Dec/Adv/Vol 2187/1079/1.43 bln


Advances & Declines
NYSE Nasdaq
Advances 1050 (31%) 752 (24%)
Declines 2220 (65%) 2243 (71%)
Unchanged 117 (3%) 123 (3%)

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

Up Vol* 628 (26%) 389 (18%)
Down Vol* 1709 (72%) 1698 (81%)
Unch. Vol* 12 (0%) 7 (0%)

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

New Hi's 67 54
New Lo's 83 129

[VegasWolf]

140. The market has the same problem as Rush Limpballs, can't keep it up! nt

[Roland99]

142. .

:rofl: