STOCK MARKET WATCH, Thursday 27 July

[ozymandius]

Thursday July 27, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 909 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2042 DAYS
WHERE'S OSAMA BIN-LADEN? 1742 DAYS
DAYS SINCE ENRON COLLAPSE = 1703
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 6
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON July 26, 2006

Dow... 11,102.51 -1.20 (-0.01%)
Nasdaq... 2,070.46 -3.44 (-0.17%)
S&P 500... 1,268.40 -0.48 (-0.04%)
Gold future... 634.70 +4.00 (+0.63%)
30-Year Bond 5.10% -0.03 (-0.49%)
10-Yr Bond... 5.04% -0.03 (-0.57%)






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 Chris Puplava

RUNNING OUT OF FUEL

After Nixon abandoned the Bretton Woods gold-exchange standard on August 15th, 1971, an era of liquidity and rampant money creation began. With the rampant money creation by the Federal Reserve consumers sopped up the newly created money in the form of taking on debt. Lenders benefited from the cheap money created by receiving interest payments and the economy benefited from that money being poured into the economy.

-chart-

Consumers took on more debt at increasing levels in the 1980s. Personal consumption expenditures as a share of GDP have risen from less than 63% in the early 1980s to over 70% in recent years. Spending growth has outpaced GDP growth in seven of the last eight years, with 2004 the only exception. Taking on increasing amounts of debt wasn’t the only way that U.S. consumers fueled their consumption. The U.S. savings rate plummeted from a high of nearly 12% in 1984 to a current -2% savings rate. The U.S. consumer saved less, acquired more debt and then poured this into the economy.

-cut-

Current State of Affairs

The economy is clearly slowing down and the question is now whether this will be a mid-cycle slow down as seen in 1994-1995 or a recession seen in 1991 and 2001. Mark Zandi, Moody's Economy.com's Chief Economist and co-founder believes we are heading towards a mid-cycle slow down (Click here for article link).

-cut-

I personally am a little more pessimistic on the U.S. economic outlook and believe we are quite possibly heading towards a recession. My reason behind this thinking is the state of the U.S. consumer. The U.S. consumer used low interest rates over the last several years to take on more debt for more consumption instead of using the cheaper debt (lower interest rates) to reduce their more expensive debt (higher interest rates) like U.S. companies did. Because of this the U.S. consumer is in a weaker state then they were heading into the 2001 recession (Figures 10-12), having a record high debt-service ratio and also a record high in their liabilities/net worth ratio. Compounding this problem is the current -2% savings rate (Figure 6). The fuel to bring us out of the 1991 recession came from consumers decreasing their savings rate from 8% to 2% and taking on massive amounts of debt. Consumers used part of their increased debt to invest in the stock market and used the capital gains from strong equity market returns to pour back into the economy through consumption. The fuel for bringing us out of the 2001 recession came from using MEW as homes were the new bubble instead of the stock market, with home prices appreciating in the wash of liquidity from the surge in M3 money supply.

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

[ozymandius]

2. Today's Reports

8:30 AM Durable Orders Jun
Briefing Forecast 5.5%
Market Expects 2.3%
Prior -0.2%

8:30 AM Initial Claims 07/22
Briefing Forecast 315K
Market Expects 310K
Prior 304K

10:00 AM Help-Wanted Index Jun
Briefing Forecast 34
Market Expects 33
Prior 33

10:00 AM New Home Sales Jun
Briefing Forecast 1165K
Market Expects 1164K
Prior 1234K

[RawMaterials]

27. U.S. June Durables Orders Rise More Than Forecast

Orders for U.S.-made durable goods rose more than forecast in June, pointing to strength in manufacturing that's likely to bolster the economy even as the housing market sputters.

The 3.1 percent increase, led by more demand for commercial aircraft and computers, followed a revised 0.3 percent increase the month before, the Commerce Department said today in Washington. Initial jobless claims unexpectedly fell to the lowest level in six weeks, the Labor Department said separately.

snip..

Excluding transportation equipment, durable goods orders rose 1 percent after a 1.5 percent gain in May.

Economists expected a 2 percent rise in durable goods orders, according to the median of 71 forecasts in a Bloomberg News survey, after a previously reported 0.2 percent drop in May. Estimates ranged from increases of 0.4 percent to 6 percent. Excluding transportation equipment, orders were forecast to rise 0.7 percent, after an originally reported 0.8 percent gain in May.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aDIbdTcAqhRY&refer=us

[RawMaterials]

28. DO/IC raw data

Statistic For/Time Actual Prior
Durable Orders Jun/8:00 am 3.1% 0.3%
Initial Claims 07/22/8:00 am 298K 305K

http://finance.yahoo.com/mo

[RawMaterials]

29. HWI/NHS

Date Time (ET) Statistic For Actual Briefing Forecast Market Expects Prior Revised From
Jul 27 10:00 AM Help-Wanted Index Jun 33 34 33 33 -
Jul 27 10:00 AM New Home Sales Jun 1131K 1165K 1164K 1166K 1234K

[RawMaterials]

31. New home sales fall further

NEW YORK (CNNMoney.com) -- The sale of new homes fell in June, as the government's latest reading of a cooling real estate market came in weaker than Wall Street expectations and the supply of new homes on the market continued to climb to record levels.

New home sales came in at an annual rate of 1,131,000, according to a Census Bureau report. That's down from the 1,166,000 pace in May, which was revised lower in the latest report.
new_home_build2.03.jpg

Economists surveyed by Briefing.com had forecast a 1,164,000 pace in June, which would have been down from the original May reading.

The report showed 566,000 homes for sale at the end of the period, a record supply in the report. Some of those homes were under construction or not yet even started, though. However, the supply of completed homes available for sale also climbed to a record 132,000 in the report.

While the numbers represented only a modest increase in supply from the May figures, both represented a dramatic jump from year-earlier levels - a 24 percent increase in total new homes available for sale, and a 28 percent gain in completed homes for sales.

The supply of homes helped to take both the average and the median price down in June by 1.6 percent. Median is the point at which half the homes cost more and half cost less.

While price measures are narrowly higher than year earlier readings, the drop is even more pronounced from the record levels set as recently as April, with the median down nearly 9 percent and average price is off 6 percent.




http://money.cnn.com/2006/07/27/news/economy/new_home_sales/index.htm

[ozymandius]

3. Oil prices increase as traders eye Mideast

SINGAPORE - Oil prices rose slightly Thursday in the sort of narrow range the market has seen all week, as traders continued to watch Middle East developments.

Light, sweet crude for September delivery rose 14 cents to $74.08 a barrel in electronic trading on the New York Mercantile Exchange, after closing slightly higher after U.S. government data showed a large drop in gasoline supplies and no letdown was seen in Israeli-Hezbollah fighting.

September Brent on London's ICE Futures exchange gained 10 cents to $74.10 a barrel.

Prices have fluctuated rather mildly this week as traders watched to see whether the violence would affect other countries in the oil-rich market. The conflict has killed hundreds in Lebanon and dozens in Israel.

more

[ozymandius]

4. Shell profit beats forecasts

LONDON (Reuters) - Oil giant Royal Dutch Shell Plc (RDSa.L) beat forecasts on Thursday with a 36 percent rise in second-quarter profits, boosting its shares, as high oil prices more than compensated for disappointing production news.

-cut-

Shell shares rose 2.24 percent to trade at 1914 pence in London at 0730 GMT, ahead of a 1.1 percent rise in the DJ Stoxx European oil and gas sector index (^SXEP - news).

-cut-

Lower than expected production of oil and gas and a reduction in the Anglo-Dutch company's 2006 output target took some shine off the results.

The world's third largest fully publicly traded oil company by market value said in a statement that its second-quarter current cost of supply (CCS) net profit, which strips out changes in inventory values, rose 36 percent rise to $6.3 billion.

more

[ozymandius]

6. Oil sideways at $74

SINGAPORE (Reuters) - Oil drifted sideways at $74 a barrel on Thursday, supported by an unexpectedly deep draw in U.S. gasoline stocks that affirmed the vigor of fuel demand and diplomats' failure to halt fighting in the Middle East.

A new set of supply outages in OPEC-member Nigeria added to the upward pressure, although prices remain 6 percent below the record-high of $78.40 a barrel hit two weeks ago.

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U.S. gasoline demand, which accounts for more than a tenth of global oil consumption, is up 1.8 percent from last year over the past four weeks, as $3 a gallon pump prices fail to deter summer holidaymakers from taking to the roads.

"There have been a lot of expectations that demand would be tapering off with high prices, but we really haven't seen that coming through," said Gerard Burg, minerals and energy economist at the National Australia Bank.

more

[Roland99]

5. Today's tune? ZING!!

[ozymandius]

7. Thanks Roland!

:toast:

[Roland99]

9. No, thank *you* for all your hard work every day!

:toast:

:D

[ozymandius]

11. from yesterday:

If they're still there *cough cough* and its feasible, please get a picture of those H2 behemoths for sale. That would be absolutely hilarious. Unfortunate, though it is, for the owners. How upside-down on a car loan could one be these days?

[Roland99]

15. I'll stop by there on the way home from work today & see if they're there!

[ozymandius]

8. London lifted by blue-chip results

London equities moved higher on Thursday, as a raft of blue chip companies released earnings news on the busiest reporting day of the second quarter.

The FTSE 100 started the session 0.7 per cent higher at 5,918.6, a rise of 41 points helping it extend the two week closing high achieved at the end of the previous session. Seven constituent companies updated investors on their performance, and the majority of the news was well received. Lower down the market, the FTSE 250 also made gains, trading up 0.4 per cent, or 40 points, at 9,326.0.

more

[ozymandius]

10. GM turnaround picks up speed

General Motors Corp. yesterday posted a second-quarter profit from its basic business that vastly exceeded analyst estimates, potentially reducing pressure on the automaker to forge a three-way alliance with Nissan Motor Co. and Renault SA.

Investors responded, pushing its shares to a 10-month high.

"This reinforces the idea that GM can, in fact, stand on its own and the alliance would have to be really well-justified at this point," said Rebecca Lindland, senior auto analyst with Global Insight in Lexington, Mass.

more

[ozymandius]

14. GM Has Loss on Buyouts; Auto Profit Beats Forecasts

July 26 (Bloomberg) -- General Motors Corp., the world's largest automaker, reported a second-quarter loss because of a $3.7 billion charge to eliminate 34,400 jobs. GM's profit from operations exceeded analysts' estimates, sending shares to a 10- month high.

The results boost Chief Executive Officer Rick Wagoner's turnaround efforts and may ease pressure to accept a tie-up with Nissan Motor Co. and Renault SA proposed by billionaire investor Kirk Kerkorian. Revenue rose 12 percent to a record $54.4 billion.

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GM hasn't been able to stem a 12 percent slide in U.S. auto sales this year, as Japan's Toyota Motor Corp. and Honda Motor Co. capture more market share at the Detroit automaker's expense. GM continues union negotiations with Delphi Corp., its bankrupt former auto-parts subsidiary, in an effort to avoid a strike.

Standard & Poor's said today it will keep GM's B credit rating on CreditWatch negative, meaning there's a greater likelihood GM will get downgraded than not, because of concerns about rising fuel prices and GM's ability to support sales without generous incentives. The ratings company said GM will remain on CreditWatch at least until a Delphi deal is reached.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aywBCTuUnDFg&refer=worldwide_news

[ozymandius]

12. SEC votes unanimously for greater disclosure of executive perks

WASHINGTON -- Companies will be required to provide more details of executive pay and perks under the most substantial overhaul of benefit disclosure policy since 1992, adopted unanimously Wednesday by federal regulators.

Amid a widening scandal over suspect timing of stock option grants to company officials, the Securities and Exchange Commission also is writing new rules on disclosure of the dating of options. The five SEC commissioners voted unanimously at a public meeting to adopt the plan, which will take effect on Dec. 15 so companies' 2006 annual reports issued early next year will reflect the changes.

For the first time, public companies will be required to furnish tables in annual filings showing the total yearly compensation for their chief executive officers, chief financial officers and the next three highest-paid executives.

Most of the disclosures, in annual reports and other regulatory filings, will have to be written in plain English.

http://www.suntimes.com/output/business/cst-fin-pay27.html

[ozymandius]

13. Chicago Orders ‘Big Box’ Stores to Raise Wage

After months of fevered lobbying and bitter debate, the Chicago City Council passed a groundbreaking ordinance yesterday requiring “big box” stores, like Wal-Mart and Home Depot, to pay a minimum wage of $10 an hour by 2010, along with at least $3 an hour worth of benefits.

The ordinance, imposing the requirement on stores that occupy more than 90,000 square feet and are part of companies grossing more than $1 billion annually, would be the first in the country to single out large retailers for wage rules.

A gallery packed with supporters of the bill broke into cheers as the measure passed, by a vote of 35 to 14, after four hours of intense speeches and debate.

-cut-

An Illinois retailers’ group said it would challenge the measure in court, and Mayor Richard M. Daley, who opposed the measure, has not said whether he will veto it.

http://www.nytimes.com/2006/07/27/us/27chicago.html?_r=1&ref=us&oref=slogin

[RawMaterials]

16. Growth Slowing Across the Country, Fed Regional Reports Say

The economic picture varies from region to region, but one trend is becoming increasingly clear: growth is slowing across the country.

The regional reports from the 12 Federal Reserve districts, many of which used words like “solid” and “strong” to describe economic activity a few months ago, are now saying growth is “modest” or “mixed.”

Reports from each district “generally indicated continued economic growth during June through mid-July, with numerous individual reports pointing to evidence that the pace of growth has slowed,” the central bank said in its monthly beige book report on the economy.

Weaker growth in consumer spending and housing punctuated the slowing of growth.


snip..


The report described a noticeable but slight decline in the overall growth of consumer spending, but not as deep as the slowdown in the housing market. In the Philadelphia region, for example, retailers expect sales to be slow until the back-to-school shopping season begins, but they reported no reason to think overall sales growth would slip. In the Minneapolis district, overall consumer spending increased slightly, but growth was held down by falling auto sales.

Wage and price increases, meanwhile, were modest although rising gasoline prices were adding to inflationary pressure nationwide, the report said.

“Scattered reports from various districts indicated an increase in manufacturers’ and retailers’ ability to pass such cost increases on to final prices.”


http://www.nytimes.com/2006/07/27/business/27econ.html?_r=1&ref=business&oref=slogin

[RawMaterials]

17. Manufacturing execs less confident on economy:

By Scott Malone

BOSTON (Reuters) - U.S. manufacturing executives have become somewhat less confident about the domestic and world economies, as high energy prices and rising interest rates take a toll on business, according to a study released on Thursday.

But despite their concerns, executives still expect their revenues to grow and plan to continue making major new investments, PricewaterhouseCoopers' (PWC.UL: Quote, Profile, Research) quarterly "Manufacturing Barometer" found.

The survey of 114 executives at large U.S. companies found that 63 percent of respondents were confident about the U.S. economy over the next 12 months, down from 67 percent in the first quarter. About 64 percent said they were optimistic about the world economy, down from 77 percent in the first quarter.

The report comes at a time when investors have been increasingly concerned about any sign the U.S. economy may be slowing.

snip..

"To date we have not seen a big pushback because the customers understand and they see what's going on," Terry Klebe, Cooper's chief financial officer, said on a conference call with stock analysts.

The study showed that 53 percent of companies have seen costs rise but only 45 percent have raised their prices.

Respondents also had grown more concerned that competition from foreign markets, a lack of qualified workers and higher interest rates could hurt their growth.



http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-07-27T050510Z_01_N26375098_RTRUKOC_0_US-MANUFACTURING-ECONOMY.xml

[RawMaterials]

18. Dow Chemical Profit Falls 19% on Raw-Material Costs (Update2)

July 27 (Bloomberg) -- Dow Chemical Co., the largest U.S. chemical maker, said second-quarter profit fell 19 percent as costs for oil-derived raw materials outpaced price gains. Earnings in 2006 may lag behind last year's results, the company said.

snip..

``Announced price increases have been only partially successful,'' Banc of America Securities analyst Kevin W. McCarthy said in a July 10 report. ``Volumes across segments have been lackluster, especially in North America.'' He recommends buying the shares.

Shares of Dow fell 31 cents to $37.28 yesterday in New York Stock Exchange composite trading. They have tumbled 21 percent in the past year.

``Given the challenges of the first half of the year, we believe it will be difficult to meet our earlier expectations that earnings in 2006 will be better than in 2005,'' Chief Financial Officer Geoffery E. Merszei said in the statement.

Earnings last year were $4.52 billion, or $4.62 a share. The company was projected to earn $4.60 in 2006, the average estimate of 16 analysts surveyed by Thomson Financial.

`Some Softness'

``Industry fundamentals remain sound, although there was some softness in agricultural sciences, polyethylene and acrylic monomers during the quarter,'' Merszei said.



http://www.bloomberg.com/apps/news?pid=20601103&sid=a3ltjU2H612s&refer=us

[Roland99]

21. See, I knew it was all your fault!

:P

[RawMaterials]

23. I Know , I Know

:hi:

[RawMaterials]

19. Lenders growing more wary of risk

NEW YORK -- Downward momentum in the housing market is leading some of America's biggest mortgage lenders to adapt business plans for even softer demand. They are launching new cost cuts and risk-reduction strategies that suggest growing concern for the $9.5 trillion home mortgage industry.

Slowing sales have pushed inventories up 39 percent in the past year and set home prices on the path of decline, some analysts said. Builders of new homes, meantime, reported the lowest confidence about their prospects in June than anytime else in the past 14 years.

``I've never seen a soft landing in 53 years, so we have a ways to go before this levels out," Countrywide chief executive Angelo Mozilo said. ``I have to prepare the company for the worst that can happen."

snip..

So far, house prices have not shown an overall decline. But as prices languish or begin to slide, homeowners relying on equity gains to make payments or subsidize other liabilities may begin to default on their loans.

``The housing correction has a long way still to run," Ian Shepherdson, chief US economist at High Frequency Economics in Valhalla, N.Y., wrote in a note to clients.

snip..

Still, many economists are anticipating a soft landing. Erosion in the market so far is just a ``mid-cycle correction," said David Seiders of the NAHB. As long as rates do not rise much more and the economy remains strong enough to support jobs, the market will recover, he said.

The rate on a 30-year fixed mortgage last week averaged 6.8 percent, 1.07 percentage points more than a year earlier and the highest since May 2002.

US interest-rate futures show traders see a 43 percent chance the Fed will raise its target short-term rate an 18th consecutive time at its Aug. 8 meeting.

``We are very interested in what the Fed will do because we are testing the elasticity of borrower demand," said Morrice, of New Century. ``Not that there's a cliff, but with every rate increase you lose a few more borrowers."





http://www.boston.com/business/globe/articles/2006/07/27/lenders_growing_more_wary_of_risk/

[RawMaterials]

20. COME CLEAN, BEN! WHAT HAS PLUNGE TEAM BEEN UP TO?

July 27, 2006 -- FEDERAL Reserve Chairman Ben Bernanke revealed that the secretive Plunge Protection Team meets several times a year, but he dodged a congressman's inquiries about what the group does and whether minutes are kept of those meetings.

So The Post has filed a Freedom of Information Act request for those minutes - specifically for the meetings that likely occurred immediately after the terrorist attacks in 2001.

snip..

Here's some of the exchange that occurred between Bernanke and Rep. Paul last Thursday at the House Financial Committee hearings.

Rep. Paul: Good afternoon, Chairman Bernanke. I have a question dealing with the Working Group on Financial Markets. I want to learn more about that group and exactly what authority they have and what they do.

Could you tell me, as a member of the group, how often they meet and how often they have actions? And have they done something recently? And are there reports sent out by this particular group?

Bernanke: Yes, congressman. The president's working group was convened by the president, I believe, after the 1987 stock market crash. It meets irregularly. I would guess about four or five times a year. But I'm not exactly sure.

And its primary function is advisory, to prepare reports. I mentioned earlier that we've been asked to prepare a report on the terrorism risk insurance. So that's what we generally do.

Rep. Paul: In the media you'll find articles that will claim, at least, that it's a lot more than advisory.

You know, if there is a stock market crash, that you literally have a lot of authority, you know, to impose restrictions. And we're talking about many trillions of dollars slushing around in all the financial markets. And this involves the Treasury and, of course, the Fed as well as the SEC (Securities & Exchange Commission) and the CFTC (Commodities Futures Trading Commission.)

And the reason this came to my attention was just recently there was an article that actually made a charge that out of this group came a position that interfered with the price of General Motors stock.

Have you read that? Or do you know anything about that?

Bernanke: No sir. I don't.

Rep. Paul: But back to the issue of meeting. You tell me it meets irregularly. But are there minutes kept, or are there reports made on this group?

Bernanke: I believe there are records kept by the staff. There are staff, mostly from Treasury, but also from other agencies.

Rep. Paul: And they would be available to us in the committee?

Bernanke: I don't know. I'm sorry. I don't know.

Rep. Paul obviously doesn't have a reporter's knack for the follow-up question, so here's what I would have asked next.

Crudele: Well, Mr. Bernanke, how about you find out! Someone in your position should know if, as former White House adviser Stephanopoulos has claimed, the Working Group on Financial Markets - the Plunge Protection Team - has the authority to interfere with the free market for stocks.

And we'd also like to know who makes decision for the group, politicians or guys on Wall Street. Don't misunderstand, Mr. Bernanke. I'm not saying what the group is doing is wrong. But why should firms like Goldman Sachs - from which two of the last four Treasury secretaries have come - be in a better position than anyone else who gambles in the stock market?



http://www.nypost.com/business/come_clean__ben__business_john_crudele.htm

[Roland99]

22. Better put a moratorium on paper shredding over there...

[spotbird]

26. What have they been up to?

Printing money?

[RawMaterials]

24. Opening Numbers / Blather

Dow 11149.34 +46.83 (+0.42%)
Nasdaq 2086.45 +16.00 (+0.77%)
S&P 500 1273.78 +5.38 (+0.42%)
10-Yr Bond 0.503% -0.01
NYSE Volume 116,574,000
Nasdaq Volume 117,359,000

09:15 am : S&P futures vs fair value: +3.7. Nasdaq futures vs fair value: +5.8.

09:00 am : S&P futures vs fair value: +3.2. Nasdaq futures vs fair value: +5.5. Still shaping up to be a higher open for equities as better than expected earnings continue to filter in. Most recently, BSX, NOC, CMI, BEN, GR, and APA are just a few more S&P 500 constituents topping analysts' forecasts, helping investors deal with another 1.0% rise in oil prices and underscoring the belief that weeks of excessive pessimism has faded and that a near-term bottom in stocks may finally have been reached.

08:33 am : S&P futures vs fair value: +4.0. Nasdaq futures vs fair value: +6.5. Futures indications continue to strengthen, suggesting that yesterday's late-day reversal will not carry over into this morning's open. ExxonMobil handily beating estimates on near-record profits of $10.36 bln is providing some additional support as investors sift through a batch of economic data. June durable orders rose 3.1%, well above the 2.3% consensus given the large jump from Boeing aircraft orders while orders excluding transportation, which provide a clearer read on underlying business capital investment, rose a strong 1.0%. Initial claims fell 7K to 298K (consensus 310K). The 10-yr note, which was unchanged ahead of the report, has pulled back a bit and is now down 3 ticks to yield 5.03%, while reaction in stocks has so far been muted in favor of corporate earnings

[RawMaterials]

25. Tugging at the Veil Hiding Executive Pay

The Milken rule lives, and as a result, investors may yet learn about some very highly paid executives whose salaries have been closely held secrets.

The Securities and Exchange Commission adopted a rule yesterday requiring public companies — starting next spring — to provide more information about compensation of top executives. It did not adopt the proposed Milken rule, but revised it and asked for more comment.

The rule is named, informally, after Michael R. Milken, the former junk bond king at Drexel Burnham Lambert. No one outside the firm knew what he made until the Justice Department put it in an indictment: $550 million in one year, far more than his ostensible corporate superiors. It was a stunning figure then, and one that is still impressive almost 20 years later.

snip..

The commission yesterday offered a modified proposal. The rule would cover only people with executive responsibilities in some part of the company. It would, said John White, the head of the division of corporation finance, exclude such people as entertainers, athletes, salesmen and portfolio managers, at least to the extent that their job titles accurately disclosed their responsibilities.

But those with decision-making abilities at the company, or a part of it, would be covered.

When the rule was suggested, some in the commission called it the “Jett rule,” after Joseph Jett, the onetime head government bond trader at Kidder Peabody when that firm was owned by General Electric. He was very highly paid until he was fired in 1994 after the company concluded that his pay was based on phony profits. He is still fighting fines levied by the S.E.C.

snip..

The rule adopted yesterday will require additional disclosures of the pay of such people, most importantly providing better information about retirement benefits. And, if the Milken rule is adopted after the new comment period, the disclosures may cover some subsidiary bosses, even if they have no authority over the parent company.

After Mr. White explained the new proposal, which still calls for not disclosing names, Christopher Cox, the commission’s chairman, asked if there was any good reason not to post the names of such people, now that nonexecutives were to be excluded. Mr. White said he thought naming names would be a good idea.

If both Mr. Cox and Mr. White think names should be named, they probably will be. Hiding highly paid executives from public scrutiny may get much harder.




http://www.nytimes.com/2006/07/27/business/27place.html?_r=1&ref=business&oref=slogin

[Roland99]

30. 10:41am - Holding pattern on the gains.

DJIA 11,164.47 +61.96 +0.56%
Nasdaq 2,077.55 +7.09 +0.34%
S&P 500 1,271.28 +2.88 +0.23%
Dow Util 436.37 +0.52 +0.12%
NYSE 8,207.11 +42.85 +0.52%
AMEX 1,944.88 -4.04 -0.21%
Russell 2000 694.89 +0.44 +0.06%
Semcond 403.81 +8.00 +2.02%
Gold future 652.50 +17.80 +2.80%
30-Year Bond 5.10% -0.00 -0.02%
10-Year Bond 5.03% -0.01 -0.16%


Also,

NATURAL-GAS FUTURES JUMP 5% AFTER UNEXPECTED SUPPLY DECLINE


ExxonMobil's $10 billion profit:

SAN FRANCISCO (MarketWatch) -- Exxon Mobil Corp., the world's biggest publicly-traded oil company, reported Thursday a 36% jump in its second-quarter profit, fueled by historically high oil prices and strong refining margins.
The Irving, Texas-based giant

said net income for the three months ended June 30 rose to $10.36 billion, or $1.72 a share, from $7.64 billion, or $1.20 a share a year ago. On an adjusted basis, excluding items, the company earned $7.84 billion, or $1.23 a share, in last year's second quarter.

Revenue for the quarter was a staggering $99.03 billion, up from $88.57 billion a year earlier.

[Roland99]

32. 12:27pm - Dow rallies to Two-Week High

DJIA 11,175.43 +72.92 +0.66%
Nasdaq 2,080.65 +10.19 +0.49%
S&P 500 1,273.34 +4.94 +0.39%
Dow Util 437.68 +1.83 +0.42%
NYSE 8,212.28 +48.02 +0.59%
AMEX 1,945.31 -3.61 -0.19%
Russell 2000 697.43 +2.98 +0.43%
Semcond 406.74 +10.93 +2.76%
Gold future 649.00 +14.30 +2.25%
30-Year Bond 5.11% +0.01 +0.22%
10-Year Bond 5.04% +0.01 +0.12


Yay, team!

Go, team! Go!

[Roland99]

33. 2:40pm - Ruh-roh, Rorge. Stocks gains under attack

DJIA 11,110.36 +7.85 +0.07%
Nasdaq 2,057.17 -13.29 -0.64%
S&P 500 1,265.50 -2.90 -0.23%
Dow Util 435.43 -0.42 -0.10%
NYSE 8,155.66 -8.60 -0.11%
AMEX 1,934.80 -14.12 -0.72%
Russell 2000 687.28 -7.17 -1.03%
Semcond 401.41 +5.60 +1.41%
Gold future 645.50 +10.80 +1.70%
30-Year Bond 5.12% +0.02 +0.35%
10-Year Bond 5.04% +0.01 +0.16%

NEW YORK (MarketWatch) -- U.S. stocks turned mixed Thursday as strong earnings from Exxon Mobil and a better-than-expected durable-goods report were tempered by uncertainty over the conflict in the Middle East.

...

"I think we've got a bit overbought," said Stephen Massocca, co-chief executive of Pacific Growth Equities. "And we're probably due, on a technical basis, for some short-term pullback."
Massoca said news reports of a possible release of an Israeli soldier held captive by the Palestinian group, Hamas, had also underpinned much of the advance.
"But those were misplaced hopes and maybe people are starting to figure that out and that's why stocks have backed off," he said.

[Roland99]

34. 3:38pm - Mostly unchanged from last report, heading into the close.

DJIA 11,107.00 +4.49 +0.04%
Nasdaq 2,056.63 -13.83 -0.67%
S&P 500 1,263.88 -4.52 -0.36%
Dow Util 432.50 -3.35 -0.77%
NYSE 8,146.64 -17.62 -0.22%
AMEX 1,930.66 -18.26 -0.94%
Russell 2000 685.64 -8.81 -1.27%
Semcond 400.70 +4.89 +1.24%
Gold future 645.50 +10.80 +1.70%
30-Year Bond 5.11% +0.01 +0.22%
10-Year Bond 5.04% +0.00 +0.08%

[stop the bleeding]

35. I guess everyone is waiting for Friday's report(s)

1 point down yesterday - flat
a breath up today - flat

2 doji candles on the DJIA 2 days in a row - talk about indecision

[Roland99]

36. No movement as closing bell approaches either.

[54anickel]

38. Strange, ain't it? Volumes seem pretty normal, maybe a wee bit on the

high side?

NYSE Volume 2,688,914,000
Nasdaq Volume 2,100,792,000


Advances & Declines
NYSE Nasdaq
Advances 1376 (40%) 1099 (34%)
Declines 1870 (55%) 1907 (60%)
Unchanged 143 (4%) 143 (4%)

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

Up Vol* 934 (37%) 700 (34%)
Down Vol* 1530 (61%) 1295 (64%)
Unch. Vol* 31 (1%) 11 (0%)

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

New Hi's 121 71
New Lo's 90 123

[Roland99]

42. Does seem a bit high. Lot of shuffling around with not much effect.

[Roland99]

37. Closing numbers: Wrap it up but forget the bow

DJIA 11,100.43 -2.08 -0.02%
Nasdaq 2,054.47 -15.99 -0.77%
S&P 500 1,263.20 -5.20 -0.41%
Dow Util 432.59 -3.26 -0.75%
NYSE 8,144.86 -19.40 -0.24%
AMEX 1,931.66 -17.26 -0.89%
Russell 2000 685.69 -8.76 -1.26%
Semcond 400.04 +4.23 +1.07%
Gold future 645.50 +10.80 +1.70%
30-Year Bond 5.11% +0.01 +0.22%
10-Year Bond 5.04% +0.00 +0.08%

[stop the bleeding]

39. Does this mean

No Ponies ;(

Have a good time away from this place, between you, UIA and 54Nickel being gone this place will be lonely to say the least.:toast:

[54anickel]

40. I'm around....had some monitor problems today, so had to get that

into the shop. Stuck using an old one for now. Hard to adjust after being spoiled with that 20 inch baby. Crappy timing too, I'm working on 2 graphics projects that are due in 3 weeks. :-( My monitor has to get shipped back to the manufacturer and not expected back until Sept!

Gotta sign off again now....storms a brewing this way. Just had to check in real quick before they hit. :hi:

[Roland99]

41. I'll pop in in the morning and see what's up but I'm gone after that!

:woohoo:


DisneyWorld, here I come!!

[stop the bleeding]

43. Have fun - if you get over towards the Tampa area

drop me a line :)

I love DW

[Roland99]

45. Oh, WDW is as far we'll get. A week on-site (never stayed on-site before)

And head home on Sat. Aug 5.

Got the itinerary and dinner reservations and all the little things needed to pack for staying cool, dry, hydrated, and fed. :D

How's the forecast for next week looking?


:hi:

[stop the bleeding]

46. Without looking at the news

temps 70's at night - muggy conditions
90's for the day - extra muggy with afternoon showers that last from 5-50 minutes then sunny.


This is typical eveyday weather here in the Sunshine state.

Don't forget GOOD sunscreen B-)

[RawMaterials]

44. Blather

For a second straight day stocks failed to hold onto intraday gains as the market still looked tired after kicking off a busy week with a two-day rally.

With today being pegged as the biggest day of earnings ever, it's no wonder traders felt a bit exhausted after sifting through nearly 200 earnings reports this morning alone. Sure, the biggest of the bunch -- ExxonMobil (XOM 66.47 -0.13) -- handily beat analysts' expectations with its second-largest quarterly profit ever ($10.36 bln), playing into our Overweight rating on the Energy sector. However, the stock hitting an all-time high intraday, and already being up more than 20% in 2006, prompted investors to take some money off the table, removing much of the leadership provided by the oil giant earlier in the session.

The absence of leadership from another bellwether, Microsoft (MSFT 23.87 -0.50), also stalled early momentum which looked to get investors back on the buying track following Wednesday's pause. While the major averages were trading at session highs just after lunch, investors looking for clarity on the timeline for the already delayed Windows Vista launch weren't impressed after Microsoft co-president Kevin Johnson told analysts at their annual meeting that they will ship Vista "when it's ready."

Aside from Microsoft's 2.0% decline, the underperforming Tech sector also succumbed to a 16% drubbing in Tellabs (TLAB 9.24 -1.76) amid its weaker than expected Q3 revenue forecast. Collateral damage was seen throughout the networking space (e.g. CSCO -1.3%, CIEN -6.5%, ADCT -5.4%, CMVT -2.5%) as the tech-heavy Nasdaq outpaced its blue chip counterparts to the downside.

Of the nine economic sectors finishing lower, Materials paced the way after Dow Chemical (DOW 33.52 -3.76) plunged to a new 2-1/2 year low following a Q2 earnings shortfall and discouraging full-year guidance. Health Care was an influential leader to the downside as Aetna (AET 31.92 -8.04) plunging 17% to a 52-week low, after cutting its membership growth estimates, overshadowed better than expected earnings from Boston Scientific (BSX 17.81 +0.75) and upside FY06 guidance from Express Scripts (ESRX 77.98 +2.26).

Mixed economic data also made it difficult for investors to fully embrace another batch of generally good earnings news. Before the bell, the Commerce Dept. reported a larger than expected 3.1% jump in June durable goods orders as aircraft orders surged, showing signs of only the slightest moderation. Initial claims also hit the wires at 8:30 ET, dipping below the 300,000 level for the first time in months, acting as another reminder that labor market growth is continuing at a good clip.

New home sales in June fell 3.0% from May and 11% from a year ago. That news lends support for a possible pause in Fed tightening, but inventories being up a significant 24% from a year ago only made matters worse for the worst performing S&P industry group in Q2. Homebuilding was down 25.5% from April to June while the PHLX Housing Sector Index is off more than 24% this year. More weakness in the group today was enough to push the Consumer Discretionary sector further into negative territory for the year and offset one of the brighter spots in the struggling sector. Comcast (CMCSA 34.02 +1.50) surged 4.6% to a 52-week high after topping estimates and lifting its FY06 revenue growth outlook. DJ30 -2.08 NASDAQ -15.99 SP500 -5.20 NASDAQ Dec/Adv/Vol 1913/1114/2.16 bln NYSE Dec/Adv/Vol 1878/1385/1.82 bln

[RUMMYisFROSTED]

47. What a stalwart DOW!

"I'm not manipulated. World events are a nuisance. Look how unshakeable I am! You can trust me." - Mr. DOW, July 27, 2006 -Hustler Magazine interview

[dweller]

48. ummm.

link?

dp