STOCK MARKET WATCH, Thursday 17 August

[ozymandius]

Thursday August 17, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 888 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2063 DAYS
WHERE'S OSAMA BIN-LADEN? 1763 DAYS
DAYS SINCE ENRON COLLAPSE = 1724
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 August 16, 2006

Dow... 11,327.12 +96.86 (+0.86%)
Nasdaq... 2,149.54 +34.53 (+1.63%)
S&P 500... 1,295.43 +9.85 (+0.77%)
Gold future... 628.70 +6.20 (+0.99%)
30-Year Bond 5.00% -0.05 (-0.91%)
10-Yr Bond... 4.87% -0.06 (-1.22%)






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 Mike Hartman

STOCKS AND BONDS BOTH HIGHER ON WEAK ECONOMIC DATA

Stock and bond prices are higher right out of the gate this morning following key economic reports that gave the markets a “three for three” confirmation of less inflation and slower growth to come. The Consumer Price Index came in slightly softer than expectations, U.S. home starts were weak, and industrial production was reported weaker than expected. All of the data came in before the opening bell for the New York Stock Exchange and worked to push stock index futures higher across the board. Nearly an hour into the trading session the Dow is 35 points higher at 11,265, the NASDAQ is six points higher at 2,121 and the S&P 500 is four points higher at 1,289. For the stock bulls, the key today will be to see if the broad averages can hold yesterday’s gain and build on it to close the S&P 500 above key resistance at 1,290. We are now looking at “contrary” stock markets on Wall Street that move higher on weak economic data, but also a sagging U.S. dollar as the economy on Main Street grinds lower with less stimulus from the housing sector.

Market expectations called for the headline CPI number to gain 0.4% with the core CPI higher by 0.3%. The headline number matched the forecast and core CPI rose by a softer 0.2%. This was the smallest rise in core CPI in the last six months, and was consistent with the muted inflation data in yesterday’s Producer Price Index. I believe these numbers are “managed” lower (index weighting, substitution, hedonic adjustments, etc.) to understate the true rate of inflation, but the markets seem to accept the data. According to an economist at Wells Fargo, Scott Anderson, “We’ve seen the core PPI trending down, so we think pipeline inflation pressures are beginning to moderate and will eventually play into slower core CPI inflation.” The problem I see here is the fact that we have a service-driven economy. Only 15% to 20% of our economy is driven by manufacturing. If inflation is slowing in the overall economy, it tells me we can expect wage growth to be weak to non-existent in the service sectors of the economy.

My suspicion that wage growth will become a problem is confirmed by the Labor Department today. They said year over year real weekly earnings fell 0.1% after wages were adjusted for inflation. This is the third decline in the last five months for inflation-adjusted earnings. If this trend persists, the consumer will have to bust-out the credit cards to help Santa Clause this November/December. Also remember we have some rather “political” elections coming up in November…the Fed has done their job and is now out of the way from causing any problems (more rate increases) before the November elections. The big trick is to see if the Spin-masters can keep stock prices elevated through election time and into Holiday shopping.

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

[ozymandius]

2. Today's Reports

8:30 AM Initial Claims 08/12
Briefing Forecast 315K
Market Expects 315K
Prior 319K

10:00 AM Leading Indicators Jul
Briefing Forecast 0.1%
Market Expects 0.1%
Prior 0.1%

12:00 PM Philadelphia Fed Aug
Briefing Forecast 10.0
Market Expects 8.0
Prior 6.0

[UpInArms]

18. Initial Claims @ 312,000 - last wk rev'd up 3,000

8:30 AM ET 8/17/06 U.S. 4-WEEK AVG. CONTINUING CLAIMS RISE TO 2.47 MILLION

8:30 AM ET 8/17/06 U.S. CONTINUING JOBLESS CLAIMS RISE 34,000 TO 2.51 MILLION

8:30 AM ET 8/17/06 U.S. 4-WEEK AVG. JOBLESS CLAIMS RISE 1,750 TO 311,250

8:30 AM ET 8/17/06 U.S. WEEKLY INITIAL JOBLESS CLAIMS FALL 10,000 TO 312,000

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B0946C82F%2DBF3A%2D42BF%2DB111%2DB4A696F4341F%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- Fewer Americans filed for first-time state unemployment benefits in the latest week even as the number of workers continuing to collect unemployment benefits hit a six-month high. Initial jobless claims fell by 10,000 to 312,000 for the week ending Aug. 12, the Labor Department said Thursday. Economists surveyed by MarketWatch were expecting jobless claims to dip to 316,000. The four-week moving average of new claims, however, rose by 1,750 to 311,250. Continuing jobless claims rose to their highest level since Feb. 4, climbing by 34,000 to 2.51 million in the week ending Aug. 5. The four-week moving average of continuing claims was 2.47 million, an increase of 2,250.

[UpInArms]

28. U.S. July leading economic indicators fall 0.1%

10:00 AM ET 8/17/06 ECONOMY COOLING BUT UNLIKELY TO STALL: CONFERENCE BOARD

10:00 AM ET 8/17/06 U.S. JULY LEADING ECONOMIC INDICATORS FALL 0.1%

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4BD0A7B0%2DBFE6%2D4056%2DA129%2D136CB793CE36%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- The composite index of leading economic indicators dropped 0.1% in July, the Conference Board said Thursday, a sign the economy is cooling off. "The economy is cooling but isn't likely to stall out," said Ken Goldstein, the group's labor economist. With the leading index flat over June and July, modest growth is on the horizon through the fall and maybe the winter, Goldstein said. A cooling housing market, higher interest rates, and higher energy prices have all contributed to slowing the consumer market and the labor market, he said.

[UpInArms]

36. Aug. Philly Fed @ 18.5

12:02 PM ET 8/17/06 PHILLY FED NEW ORDERS 15.7 VS. 10.1

12:02 PM ET 8/17/06 PHILLY FED SHIPMENTS 22.3 VS. 10.2

12:02 PM ET 8/17/06 PHILLY FED PRICES PAID 45.3 VS. 50.3

12:01 PM ET 8/17/06 FACTORIES IN PHILLY REGION GROW FOR 14TH STRAIGHT MONTH

12:00 PM ET 8/17/06 AUG. PHILLY FED FACTORY INDEX 18.5 VS. 7.8 EXPECTED

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BECF25353%2DFC54%2D4524%2DA4F1%2D360BB4FF366E%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- Factory activity in the Philadelphia area expanded for the 14th straight month in August, the Federal Reserve Bank of Philadelphia said Thursday. The Philly Fed index rose to 18.5 in August from 6.0 in July. Economists were looking for a slight gain to 7.8 in August. Readings over zero indicate most firms surveyed are growing. The new orders index rose to 15.7 in August from 10.1 in July. The shipments index rose to 22.3 from 10.2 in July. The prices paid index fell to 45.3 from 50.3 in July. The prices received index stayed at 17.1. The future activity gauge dipped to 7.4 in August from 15.4 in July.

[ozymandius]

3. Oil prices continue to fall

SINGAPORE - Oil prices continued to slide Thursday as international traders responded to U.S. government data showing that crude oil stockpiles are above average.

Light sweet crude for September delivery fell 47 cents to $71.42 a barrel in electronic trading on the New York Mercantile Exchange in Asian midmorning trading.

The Brent crude contract for October, the new front month, was down 39 cents at $72.44 a barrel on London's ICE Futures exchange.

Options for the September crude contract expire Thursday.

http://news.yahoo.com/s/ap/oil_prices

[ozymandius]

4. Oil falls below $71

LONDON (Reuters) - Oil fell more than a dollar on Thursday to its lowest price in nearly two months after ample U.S. fuel stockpiles eased investor fears of supply shortages as the U.S. summer driving season draws to a close.

Although prices have fallen for four consecutive sessions, the market is still up 14 percent this year on healthy global demand, geopolitical tensions and supply disruptions in key oil-producing countries.

U.S. light, sweet crude for September delivery dropped $1.05 to $70.84 a barrel by 0926 GMT, its lowest since June 26. London Brent fell $1.08 to $71.75 a barrel.

U.S. crude prices have tumbled more than seven percent, declining in six of the last eight sessions, as a ceasefire took hold in the Middle East and BP (BP.L) decided to shut in only half of its 400,000 barrels-per-day (bpd) Prudhoe Bay oilfield for pipeline repairs.

http://news.yahoo.com/s/nm/20060817/bs_nm/markets_oil_dc_24

[ozymandius]

5. Tokyo stocks slip despite high trading volume

Trading volumes on the Tokyo Stock Exchange's first section reached their highest level in two months on Thursday, as investors scrambled to adjust their positions in different sectors.

But despite the high volume of trading, the overall result was inconclusive. The Nikkei 225 was down 0.3 per cent at 16,419.42, but the Topix rose 0.1 per cent to 1,631.46.

Many Japanese export stocks rose moderately, boosted by a fall in oil prices, which helped increase confidence in the oil-sensitive US economy as well as lowering the costs of manufacturers, many of which are export specialists.

http://news.yahoo.com/s/ft/20060817/bs_ft/fto081720060427204349

[ozymandius]

6. Mining gains fail to lift London's FTSE

London equities traded sideways on Thursday, as a measure of bid speculation returned to the mining sector but failed to lift the wider market.

The FTSE 100 was barely changed, losing about 3 points or 0.1 per cent to 5,894.3 amid a feeling that investors were treading water toward the end of the week. The mid-cap FTSE 250, which outperformed its senior partner on Wednesday, was unchanged at 9,448.9.

Overnight in New York, the Dow Jones Industrial Average was 0.9 per cent sronger at 11,327.1, helped higher by the second set of weaker-than-expected inflaion data of the week.

But although the soft reading on the US consumer price index helped ease inflationary fears within the world's biggest economy, it failed to provide a lift to equities in London. Investors looked to have priced in the improved mood earlier in the week, and the Wall Street rally for once had little effect across the Atlantic.

http://news.yahoo.com/s/ft/20060817/bs_ft/fto081720060413204348

[ozymandius]

7. European equities lower as oil stocks fall

European equities, after a brief turn higher, were hit by falling oil stocks on Thursday after crude prices fell to near two-month lows on commodities exchanges.

In early trade, the FTSE Eurofirst 300 was down 0.1 per cent to 1,357.97, while Frankfurt's Xetra Dax was fractionally lower at 5,813.57. In Paris, the CAC 40 was off 0.2 per cent to 5,124.88, and London's FTSE 100 shed 0.1 per cent to 5,893.1.

On the oil market, Nymex crude fell below $72 a barrel, its lowest level since June 16 as the effect of the easing geopolitical environment added to concerns that slowing economic growth could dampen demand.

http://news.yahoo.com/s/ft/20060817/bs_ft/fto081720060358204346

[ozymandius]

8. Ford plans to reduce number of dealers

DETROIT - Ford Motor Co. said Tuesday it plans to trim the number of dealerships it has in 18 metropolitan areas across the country, blaming sliding car and truck sales for the decision.

Most of the metro areas are east of the Mississippi River, but the company would not identify exactly what markets would be targeted. Dealers were told of the effort at the company’s annual dealership meetings, which wrapped up last week in Las Vegas.

“If you think about where we were in terms of sales and market share and where we are, you quickly realize that in certain markets, we have more dealers than our market share can support profitably over time,” said company spokesman Jim Cain.

http://www.msnbc.msn.com/id/14362756/

[ozymandius]

9. GM, Ford, Lucent Lead Rebound for Bond Market's `Fallen Angels'

Aug. 17 (Bloomberg) -- In the market for bonds of companies that have deteriorated to non-investment grade from investment grade, General Motors Corp., Ford Motor Co. and Lucent Technologies Inc. were among the biggest casualties. Now they're proving to be the biggest winners.

The so-called fallen angels have returned 7.8 percent this year, according to data compiled by Merrill Lynch & Co. That compares with an average 0.7 percent return for a Merrill index of 9,300 global securities with a face value of $4.8 trillion.

The securities have beaten the junk bond market in six of the past eight years as fund managers who can't hold high-risk, high-yield debt were forced to sell, creating opportunities for investors to buy the notes and profit from any recovery. A total of 32 companies with $39 billion of debt outstanding joined the group this year, according to Standard & Poor's.

-cut-

``These are big, sensible companies that have had an unfortunate episode and have the ability to get back,'' said Simon Surtees, who helps manage about $3.6 billion of corporate bonds at Gartmore Investment Management Plc in London. ``They have far more durability than the initial high-yield issuer that is indebted up to the gunwales and has nothing to fall back on.''

http://www.bloomberg.com/apps/news?pid=20601103&sid=aCrjjRrkD2B0&refer=us

[ozymandius]

10. Good morning everyone.

:donut: :donut: :donut:

Gotta run. Have a wonderful day at the Casino!

Ozy :hi:

[54anickel]

12. Have a great day Oz! Thanks for getting the ball rolling again and for

the great toon! :hi:

My day is short as well. Have to leave soon but will try to return after lunch before the close.

[54anickel]

11. Fed's Fisher: Inflation greatest risk to US

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyID=2006-08-16T194634Z_01_WBT005789_RTRUKOC_0_US-ECONOMY-FED-FISHER.xml

DALLAS (Reuters) - Inflation is still the greatest risk to the U.S. economy, and policy-makers will not hesitate to raise interest rates again if incoming data shows it is necessary, Dallas Federal Reserve Bank President Richard Fisher said on Wednesday.

"There is a definite increase in inflationary momentum," Fisher said at a luncheon by a commercial real estate group. "The Federal Reserve will not tolerate inflation," he added, terming it the Lex Luthor to the "Superman" United States economy, referring to the superhero's nemesis.

Inflation "is a sinister force that has the capacity to charm and romance the heck out of you, but in the end wreaks only havoc," he said.

snip>

The U.S. economy typically slows before inflation comes down, Fisher noted. But assessments that the Fed is either done raising rates, or is already preparing to raise again, are mere guesses, he said.

snip>

"If we see, after this pause, that inflation is beginning to threaten economic prosperity, we will take deliberate ... measures to counter it," he said. Even so, "that doesn't mean we need to take a sledgehammer to the economy."

more...

[UpInArms]

22. Printing Press Hums: Fed adds bank reserves via 14-day system repos

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-08-17T122253Z_01_N17301180_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Aug 17 (Reuters) - The Federal Reserve said on_Thursday it added temporary reserves to the U.S. banking 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

[UpInArms]

24. U.S. Treasuries climb as inflation worries wane

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-08-17T125552Z_01_N17308899_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Aug 17 (Reuters) - U.S. Treasury debt prices rose for the third day on Thursday, taking benchmark yields to fresh four-month lows, on investor optimism that the Federal Reserve has little cause to raise interest rates following a spate of tame inflation readings.

Yield on the benchmark note had fallen as much as 16 basis points since Monday, following July data showing the price of goods leaving U.S. factory gates unexpectedly fell and consumer prices rose at a slower pace.

Prices on the 10-year note, which move inversely to yields, have had their best three-day run in nearly a year, which traders said was spurred by increased expectations the Fed will not have to raise interest rates in September to stifle price increases.

"It is more technical this morning," said George Goncalves, Treasury and agency trading strategist with Banc of America Securities in New York. After this week's key inflation reports and with little data on Thursday, "for the time being there is not much to suppress or hold prices down -- it is pretty much a follow-on from yesterday."

Signs that price pressures are easing are a boon to bonds in two ways. In addition to making it more likely the Fed will extend its pause in rate hikes, slowing inflation helps to preserve a bond's value over time.

...more...

[UpInArms]

30. Printing Press Roars: Fed adds bank reserves via overnight, 14-day repos

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-08-17T135034Z_01_N17259686_RTRIDST_0_MARKETS-FED-OPERATIONS-UPDATE-1.XML

NEW YORK, Aug 17 (Reuters) - The Federal Reserve said on_Thursday it added temporary reserves to the U.S. banking system through overnight and 14-day system repurchase agreements.

Total bids accepted for the overnight repos were $8.0 billion, while total bids accepted for the 14-day repo were $9.0 billion, the Fed said.

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]

45. Wish I could do that. Betcha I'd be a bit more frugal w/the money

than the fuckers ruining this country.

[UpInArms]

35. U.S. Treasury to sell $33 bln bills on Monday

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-08-17T151147Z_01_WBT005799_RTRIDST_0_ECONOMY-BILLS-URGENT.XML

WASHINGTON, Aug 17 (Reuters) - The U.S. Treasury Department on Thursday announced the following details of a bill offering: Term 3 months 6 months Amount $17 billion $16 billion Auction date Aug 21 Aug 21 Refunding maturing debt $33.003 bln Pay down debt $3.000 mln Competitive bids deadline 1200 EDT/1600 GMT Noncomp deadline 1300 EDT/1700 GMT Settlement Aug 24 Aug 24 Maturity date Nov 24 Feb 22 CUSIP 912795YF2 912795YU 9 Net Long Position Reporting

Threshold $5.95 bln $5.60 bln NLP Exclusion

Amt $4.70 bln none

[54anickel]

13. Stocks set for lower start

Even as oil dips below $71, U.S. markets may be ready to consolidate after three days of gains.

http://money.cnn.com/2006/08/17/markets/stockswatch/index.htm

NEW YORK (CNNMoney.com) -- Despite oil prices below $71 a barrel for the first time in months and strong results from a tech bellwether, stocks may be ready to sell off Thursday after a three-day rally.

At 6:37 a.m. ET, Nasdaq and S&P futures pointed to a flat to lower open for the major indexes.

Oil was sharply lower as the cease-fire was holding in Lebanon, calming geopolitical concerns in that crucial region. U.S. light crude down $1.10 to $70.79 a barrel in electronic trading. Brent crude in London was $1.11 lower at $71.72.

After the close Wednesday, Hewlett Packard (Charts) reported better than expected earnings and announced plans for a $6 billion share repurchase. Shares of the Dow component gained $2.11, or 6.1 percent, in after-hours trading following the report.

After the close Thursday, HP competitor Dell (Charts) is due to report results. Unlike the gains at HP, Dell warned last month that it would report lower earnings in the quarter, as it blamed aggressive pricing in a slowing commercial market worldwide. Investors will be looking for new guidance and details about its costly recall of laptop batteries announced this week.

more...

[54anickel]

14. Billions face water shortages

http://today.reuters.co.uk/news/articlenews.aspx?type=worldNews&storyID=2006-08-16T153705Z_01_L15346173_RTRUKOC_0_UK-ENVIRONMENT-WATER.xml&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=NewsArt-C1-ArticlePage3

CANBERRA (Reuters) - A third of the world is facing water shortages because of poor management of water resources and soaring water usage, driven mainly by agriculture, the International Water Management Institute said on Wednesday.

Water scarcity around the world was increasing faster than expected, with agriculture accounting for 80 percent of global water consumption, the world authority on fresh water management told a development conference in Canberra.

Globally, water usage had increased by six times in the past 100 years and would double again by 2050, driven mainly by irrigation and demands by agriculture, said Frank Rijsberman, the institute's director-general.

Billions of people in Asia and Africa already faced water shortages because of poor water management, he said.

"We will not run out of bottled water any time soon but some countries have already run out of water to produce their own food," he said.

"Without improvements in water productivity ... the consequences of this will be even more widespread water scarcity and rapidly increasing water prices."

more...

[54anickel]

15. Spend Cycle

An economist talks about the scope of America's growing consumer debt, what's behind it and what it means for the future

http://www.msnbc.msn.com/id/14251360/site/newsweek/

Aug. 9, 2006 - For the first time ever recorded, Americans owe more money than they make. Household debt levels have now surpassed household income by more than eight percent, reaching 108.4 percent in 2005, according to a May 2006 study by the Center for American Progress. Consumer debt is now at a record $2.17 trillion, reports the Federal Reserve Board and consumers cashed out a whopping $431 billion in home equity last year.

Christian E. Weller, the author of a recent Center for American Progress (CAP) report, 'Drowning in Debt,' says the middle class, specifically, is struggling. Wages have been stagnant and they're losing the battle to keep up with the cost of living. "The data shows that people are borrowing more money not because of over-consumption, but because they're caught in a bind," says Weller, a senior economist at the CAP. "In that bind, the only escape valve for middle class families is to borrow more money." NEWSWEEK's Jessica Bennett spoke with Weller about the scope of America's debt, why it's so hard to get out from under, and how it will affect the economy in the future. Excerpts:

snip>

Is credit more available to more people now?
The expansion of the credit industry has given people more access to credit, no doubt about it. I would argue that people are borrowing more money now than in the past but because prices have risen in the face of a very weak labor market. As for housing, the home equity cash out equaled $431 billion in 2005 . That's a substantial contribution to households' resources that they can then spend on all kinds of things: sending their kids to college, buying a new car, paying for health care and other things. We know home equity cash outs are extremely sensitive to interest rates, they're also very sensitive to home-price depreciation. So you don't even need to have a crash in the housing markets to really see severe economic consequences.

Why are so many Americans falling into debt?
The labor market has been rather weak, employment growth has barely kept pace with population growth, wages have been flat, income has fallen for five years in a row, and at the same time, prices for critical big ticket items-items such as health care, housing, college education—have gone through the roof. In that bind, the only escape valve for middle class families is to borrow more money.

snip>

Why aren't people shifting to higher income brackets given that the economy is in fairly good shape?
This has been one of the most profitable expansions for companies that we've ever seen. But it's really a corporate decision where the money is going, and right now it's really going more toward corporations and CEO pay than toward increasing wages and benefits.

more...

[54anickel]

16. Plastic Predicament

Credit-card debt has nearly tripled in the last two decades, leaving many Americans stuck in a sinkhole of fees and penalties. Who's to blame, irresponsible spenders or predatory lenders?

http://www.msnbc.msn.com/id/14366431/site/newsweek/

Aug. 16, 2006 - At the height of their debt, Delilah and Kevin Lewis, of Chattanooga, Tenn., had filed for bankruptcy twice, were nearly $50,000 deep and were still spending on more than 25 credit cards. Though their yearly incomes had once totaled more than $90,000, Delilah was laid off in 1996, the result of a downsizing effort by the local newspaper where she worked. Not long after, she suffered a stroke—and was hit with $5,000 in medical fees. "By then, we were just sinking," the 53-year-old says. "I was working overtime to try to make back all this money, and I had a heart attack at age 45. I was a young healthy woman, but I was so highly stressed that I just made myself ill."

The Lewis' case is extreme—but it's far from rare. Americans are spending with plastic at a staggering rate. Consumer credit-card debt has almost tripled over the last two decades—from $238 billion in 1989 to $800 billion in 2005, according to an analysis of Federal Reserve Board data by Demos, a national research and consumer advocacy group. The average American family now owes more than $9,000 in credit debt, according to Gail Cunningham of the Consumer Credit Counseling Service (CCCS) of Greater Dallas, a nonprofit financial-management group. And with credit companies mailing out a record 6 billion credit-card offers last year (according to Mail Monitor, a market research group), American families are averaging about seven cards. "It's a picture of America on the edge," says Cunningham.

How did so many families sink into this quagmire? The Lewis' are the first to admit that their spending habits were, at times, out of control. But there were also circumstances that were beyond them: Delilah's job loss. Then, the stroke—and the $300-per-month medication she needed for her heart. Their case is not unlike millions of other middle-class Americans who in the face of stagnant wages and rising health and energy costs are using some form of credit to fill the gap between household earnings and the cost of living.

The Center for American Progress estimates the cost of medical, food and household needs has risen more than 11 percent over the past five years—with seven in 10 households using credit as a safety net to cover basic living expenses, reports Demos. Meanwhile, wages have simply not kept up, remaining virtually flat since early 2001. "The data shows that people are borrowing more money not because of overconsumption but because they're caught in a bind," says Christian E. Weller, a senior economist at the Center for American Progress and author of a May report “Drowning in Debt.” He adds, "In that bind, the only escape valve for middle-class families is to borrow more money."

Some consumer advocates say these rising living costs have coincided with what they describe as predatory lending practices by credit companies. The way they see it, with fees and interest rates going up, increasingly easy access to credit and a general lack of financial understanding on the part of consumers, it's not a surprise that more and more Americans are spending beyond their means. About 7 percent of credit-card holders make only the minimum payment each month, according to Bankrate.com, while the percentage of Americans who are delinquent in their payments by 30 days or more is about 4 percent, according to figures from the American Bankers Association. "Decades ago, you had to be creditworthy to get a card," says Cunningham. "Now, credit offers are everywhere—and it's because the industry knows that, as consumers, we will likely charge more than we can pay, and they'll benefit by raising our interest."

more...

[AnneD]

32. Good article

:thumbsup:I love the last paragraph...so true so true. :eyes:


What can we do? What can the government do?
We need faster income growth. Can companies afford ? Yes. It's a question of policies to step in and make sure that people are making more money. You can do this through a number of mechanisms in the short term: raise the minimum wage, expand the earned income tax credit, strengthen labor law to make it easier for people to join a union. Will we see these things? I think so. Whether it will happen on a federal level is another question. But it will happen on a state and local level.

[nolabels]

17. Drop in clothing key in lowering expectations

Thought to change the title of the post from the original article, it just seemed like some B.S. deserved more B.S.:evilgrin:

Like talk about massaging numbers and stuff, this stuff sounds like total horse-pucky to me :shrug:



Drop in clothing prices key in lowering inflation

By Martin Crutsinger

The Associated Press

WASHINGTON — Gasoline prices soared last month. Airline ticket prices were also up sharply, and so was the price of a hotel room.

But clothing prices plunged by the largest amount in 18 years, and that decline helped lift spirits on Wall Street.

Stock prices surged for a second straight day Wednesday on better-than-expected news concerning core inflation, which excludes energy and food.

Core consumer prices rose by 0.2 percent, the smallest increase in five months, the Labor Department reported one day after disclosing that core inflation at the wholesale level actually fell 0.3 percent
(snip)
http://seattletimes.nwsource.com/html/businesstechnology/2003204377_economy17.html

[UpInArms]

19. daily dollar watch

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

Last trade 84.61 Change -0.21 (-0.25%)

CPI Data Not Enough to Convince Fed to Raise Rates - Dollar Bearish

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/CPI_Data_Not_Enough_to_1155764436680.html

US Dollar
US data is not meeting up to par and as a result, the US dollar has been punished. Even though yesterday’s weak producer price numbers did not translate into similarly disappointing consumer price figures today, the lack of a strong print in CPI was enough for dollar bulls to be convinced that the Federal Reserve does not have the evidence that it needs to raise interest rates again. The monthly growth of headline consumer prices in July increased from 0.2 percent to 0.4 percent, but the growth of core prices slowed from 0.3 to 0.2 percent. This tepid pace of growth confirms that rates will be left unchanged at 5.25 percent in September, which could especially be true since oil prices have just fallen to a seven week low. We heard hawkish comments from Federal Reserve President Fisher today about the possibility of the Fed reacting to greater inflation risks, but Fisher is not a voting member of the FOMC so his comments hold little weight. Meanwhile, the disappointments today did not end there. The housing market is continuing to show signs of weakness with building permits falling by the largest percentage since September 1999. This follows the drop in the confidence of homebuilders to a 15 year low. We are at a tipping point in the housing market and as soon as the consumer reacts, the whole economy could be affected. The growth in industrial production is already slowing with only a modest 0.4 percent rise in the month of July. The turn that we are looking for in the US dollar is here but summer doldrums could still cap gains in the EUR/USD below 1.30. Aside from the Philly Fed report tomorrow, there is little left on the US calendar that could shift the market’s current sentiment in the US dollar.

...more...

[UpInArms]

20. It's good to be a superpower

http://www.cnn.com/2006/US/08/15/dobbs.august16/index.html

excerpt:

What a blessing, all these superpower advantages. What other people
besides Americans can afford not to make their own clothes? The world
has other people for such menial tasks, and they sell us all but a
few of our shoes, shirts, slacks, suits, dresses and coats (and, of
course, accessories). We now import around 96 percent of our clothing.

What other nation can afford to dismantle its manufacturing base and
export high-paying middle-class jobs overseas to lesser, cheaper
foreign labor markets and then buy back the goods those poorer people
provide us?

And energy? Why, we Americans have money to burn. We spend $15-20
billion each and every month to import fuel for our cars, trucks,
office buildings and few remaining factories and plants. We can be
heedless to the consequences, because as Vice President Dick Cheney
suggests, conservation doesn't work well anyway. So why be bothered
with such irritating constraints?

Because we're a superpower, we needn't concern ourselves with silly
little annoyances like trade and budget deficits. Who cares? What
greater proof of our superpower status can there be than 30
consecutive years of trade deficits, evaporating surpluses in
services and agricultural goods and even technology.

Our trade deficit in manufacturing soared nearly 300 percent from
1997 to 2005, surging to $662.5 billion. Our business and government
leaders soothingly remind us that we are a technology economy and
needn't be distracted by developments like the reversal of what was a
$35-billion surplus in high-tech goods to what is now a $44-billion
deficit. It's great to be The Superpower.


...more...

[UpInArms]

21. Northwest Airlines tell laid-off employees to dumpster dive

http://www.detnews.com/apps/pbcs.dll/article?AID=/20060817/BIZ/608170383/1001

Lucky Northwest Airlines workers. Looming pink slips these days come with a booklet, "101 Ways To Save Money."

At least that was the case for a few dozen workers this week before Northwest pulled the offensive material after workers complained.

The money-saving tips, tucked away in a packet of layoff materials, were delivered to about 60 ground workers whose jobs are being eliminated as part of the bankrupt airline's far-reaching efforts to save $1.4 billion.

But the "101 Ways To Save Money" was about as welcome as a winter ice storm at Detroit Metro Airport. And that might have something to do with some of Northwest's suggestions, which included:

No. 15: Get hand-me-down clothes and toys for your kids from friends and relatives.

No. 46: Don't be shy about pulling something you like out of the trash.

No. 55: Ask your doctor for samples of prescriptions.

No. 56: Borrow a dress for a big night out, or go to a consignment shop.

No. 98: Cut the kid's hair yourself.

...more...

[AnneD]

38. I got your book right here...

102: Get together with all of your unemployed friends. Gather up all the bills you can no longer afford to pay, don't forget to include your 101 tips for saving money, and go to the corp office or the CEO's mansion (this may involve scaling a wall) and create a nice bon fire with all that wonderful kindling material.:nuke:

[UpInArms]

23. Clothing maker plans shutdown - 260 workers face layoffs at Hartz and Co.

http://www.gazette.net/stories/081706/fredcou161404_31939.shtml

A year ago, Hartz and Co. was riding high, as officials said they planned to beef up the workforce in Frederick by 50 employees to about 400.

This week, the tailored clothing manufacturer — a family-owned business that began in Baltimore in 1893 and moved into Frederick in 1975 — crashed and burned. Following previous rounds of layoffs, Hartz officials now plan to lay off the remaining employees over the next few months and close the facility in October, Richard Griffin, the city’s economic development director, said Wednesday.

A state labor official said the company filed notice this week to close the plant and lay off 260 workers.

Hartz, which makes primarily men’s suits that retail for $600 to $900, is one of the few U.S. apparel manufacturers that does not outsource any of its operations overseas, according to industry reports. The company had been having financial difficulties for more than a year and closed its 150-employee manufacturing facility in Broadway, Va., earlier this year.

...more...

[UpInArms]

25. pre-opening blather

09:00 am : S&P futures vs fair value: -1.9. Nasdaq futures vs fair value: -5.0. Still shaping up to be a sluggish start for the indices as early reserve on the part of buyers points to a day of profit taking. The Nasdaq, which is up 4.5% this week alone, stands to endure the brunt of early consolidation efforts. Another possible day without leadership from the Energy sector, as a 1.6% pullback in oil prices puts the commodity down nearly 10% from the July 14 record above $78 a barrel, leaves the blue chip indices at risk of staying at three-month highs.

08:31 am : S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: -4.0. Futures indications continue to languish in negative territory, signaling a slightly lower start for stocks. Meanwhile, initial claims, which were compiled during the same week as the August payrolls data, fell 10K to 312K (consensus 315K). However, reaction from stocks and bonds has so far been muted since this week's batch of more influential economic data (e.g. PPI, CPI) has already run its course. The 10-yr note is still up 3 ticks to yield 4.84%.

08:00 am : S&P futures vs fair value: -2.1. Nasdaq futures vs fair value: -4.0. Early indications suggest the market may take a breather following a three-day rally as futures continue to trade below fair value. Even though an earnings surprise, upside Q4 EPS guidance, and board approval for a $6 bln buyback from a tech giant like Hewlett-Packard (HPQ), which is up more than 6% in pre-market action, might typically underpin a positive tone for the broader market, the S&P 500 having already surged 2.3% this week alone may be too enticing for investors not to lock in some recent market gains.

[UpInArms]

26. Omnicare exec charged with Medicare fraud in Michigan

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-08-17T130558Z_01_N17251629_RTRIDST_0_HEALTH-OMNICARE.XML

CHICAGO, Aug 17 (Reuters) - The Michigan Attorney general has filed criminal charges against a unit president of nursing home pharmacy provider Omnicare Inc. (OCR.N: Quote, Profile, Research), claiming he defrauded the state Medicaid program, state officials charged Wednesday.

Attorney General Mike Cox called the case the biggest health-care fraud ever in Michigan, the result of a three-year probe.

Daniel Lohmeier, president of Specialized Pharmacy, was charged with 148 counts of Medicaid fraud in a complaint filed in state district court in East Lansing, Michigan.

Medicaid is the state-federal health insurance program for the poor.

Omnicare spokesman Andy Brimmer called the attorney general's actions "unfortunate," and said the company supports Lohmeier. It is continuing to cooperate with the attorney general's office, he added.

...more...

[UpInArms]

27. The OTHER Bubble Boy, Gone For Good!

http://www.americanpolitics.com/today.html

excerpt:

Let me show you a couple of more little facts about Mr. Greenscourge. Remarkably, in 1983 (at the age of 57, when he was serving in the Reagan Administration), Mr. Greenliar led the commission on Social Security, the largest entitlement program ever created by our government -- and under his leadership this commission almost doubled the Social Security tax levied on all workers. Funny thing -- this was when the Baby Boomers were in the early midst of their highest wage-earning years. Of course, all those on the commission never have to pay those taxes from their wages, but they were surely realizing that all those working family schnooks on the outside would have to pay up. Also, Mr. Greensmarm was only 5 years away from his first age of eligibility, 62, for whatever benefits he accrued from his private sector wages -- not that he needed it.

I'm sure he donated to charity and the arts whatever he collected from his entitlement, aren‘t you?

The really interesting part of this Social Security move was that it began creating a large surplus in the Social Security Trust Fund. This in turn allowed the government to borrow from the trust as needed, which it started doing immediately. This "borrowing" does not show up in the National Debt and, therefore, bypasses deficit reporting. Do you think that it helped the Reagan administration cover up deficits that may have really been there due to the administration's tax cuts and policies? And gee, this practice is ongoing today.

On a personal note, I became very suspicious of Mr. Greenstench in 1998 as I watched the debt of Russia and some of her neighbors become worthless, which led to the overnight meltdown of Long Term Capital Management. You remember LTCM, don't you? If you don't, fire up a Google search and strap in for a bumpy ride. LTCM took $800 million from 80 investors, made themselves wads of money based on the advice of a Nobel Prize winning economic duo who assisted their Wall Street trader in running the hedge fund. Right before the Russian devaluation, one of those mental giants decided to return some of the cash to the investors and up their leverage from a 16-to-1 asset-to-equity ratio (very edgy) to a very speculative 25-to-1. By the time the Russian crises got through with them, it was quickly 45-to-1 -- and moving up.

Here's how it went down with the involvement of Mr Greencrony. In response to the first event, which had culminated over a period of months and as the LTCM event was materializing, Mr. Greenslime eased the prime interest rate 3 times, dropping it a total of .75% during a very short period in September 1998, at a time when our metaphoric "economic train" was traveling on positive tracks at about 100 mph. This easing, as hindsight showed us in the rest of 1998 and 1999, sped up that train to at least 150 mph.

...more...

[UpInArms]

29. 10:02 EST Hurray for the Cooling Economy!

Dow 11,340.40 +13.28 (+0.12%)
Nasdaq 2,152.56 +3.02 (+0.14%)
S&P 500 1,294.80 -0.63 (-0.05%)
10-Yr Bond 4.853 -0.018 (-0.37%)

NYSE Volume 319,129,000
Nasdaq Volume 251,855,000

updated blather on edit:

10:00 am : Market continues to show its resilience in the face of what was initially shaping up to be more aggressive consolidation following a three-day rally that lifted the blue chips averages to three-month highs. However, it is worth noting that much of the early support is coming primarily from modest strength in the influential Technology and Health Care sectors, since six out of 10 sectors are still in the red. Despite this week’s impressive 6% gain more than halving the underperforming tech sector’s year-to-date decline, HPQ providing positive implications for the entire PC market is giving tech a nice boost. To wit, Computer Hardware (+1.5%) is this morning’s best performing S&P industry group. Health Care is benefiting from an analyst upgrade on Forest Laboratories (FRX 47.94 +0.83) and further bargain hunting interest in biotech. DJ30 +10.12 NASDAQ +0.10 SP500 -0.72 NASDAQ Dec/Adv/Vol 1140/1250/232 mln NYSE Dec/Adv/Vol 1452/1211/184 mln

09:40 am : As expected, stocks open on a slightly lower note after a huge run-up on the major averages this week prompts some early profit taking. The Nasdaq, on the heels of its best three-day advance since August 2004, is outpacing its blue chip counterparts to the downside, but losses are modest at best. The Dow, however, has recently inched into the green, as early losses have been offset by a 6.5% surge in Hewlett-Packard (HPQ 36.65 +2.22). The stock is at a multi-year high after it beat analysts’ expectations last night, issued an upside Q4 EPS outlook and announced plans to repurchase up to $6 bln in stock. DJ30 +2.88 NASDAQ -2.19 SP500 -1.17 NASDAQ Vol 84 mln NYSE Vol 62 mln

09:15 am : S&P futures vs fair value: -2.1. Nasdaq futures vs fair value: -6.0.

[UpInArms]

31. Jury finds Merck negligent in Vioxx trial: CNBC

10:21am 08/17/06 Merck erases earlier gains of 1.3% - MarketWatch

10:20am 08/17/06 Merck down 0.6% at $40.92 - MarketWatch

10:17am 08/17/06 Jury finds Merck negligent in Vioxx trial: CNBC - MarketWatch

adding link and blurb on edit:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF74F49B6%2D9633%2D491C%2D91B3%2DD070EC65FCD0%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Merck & Co. (MRK : 40.71, -0.47, -1.1% ) has been found negligent by a jury in New Orleans in the second federal Vioxx case, according to media reports Thursday. The plaintiff, Gerald Barnett, a retired FBI agent, blamed the painkiller for his heart attack, Reuters reported. Barnett took Vioxx from January 2000 until Sept. 23, 2004, a week before Merck pulled it from the market, the Associated Press reported. Merck won the previous federal Vioxx trial and four state cases in New Jersey and California courts. Its has lost three state cases.

[plasticsundance]

33. The Fed's Big Bluff

This week, as the Fed came through with its highly anticipated pause, it conspicuously left the door open to future rate hikes. Apparently the rhetorical vigilance took most currency traders by surprise, sending many scrambling to buy dollars. However, given that any weaker statement would have caused a stampede out of the dollar, how surprising should the tough talk have been? Any indication that this was not a "wait and see" pause would have sent both long-term interest rates and consumer prices up, undermining the "benefits" of the pause. So in an apparent attempt to have its cake and eat it too, the Fed "paused" while pretending that it really had not done so.

The Fed's claim that it is concerned about inflation, and that it will act decisively to contain it, is just a bluff. Any real commitment would have prompted the Fed to have already raised rates much higher. For the Fed to suggest that it stands ready to raise rates in the future, if the data warrants it, completely misses the point that the data warrants it right now!

The flawed CPI is nonetheless a lagging indicator of inflation. There is so much inflation already in the pipeline that its effect on consumer prices will be seen for years to come. For now, the Fed's private concern is to keep the markets from understanding just how bad inflation already is, and how little resolve it actually has to do anything to contain it. Far from being concerned, the Fed likely views inflation as the only solution to America's problems; a monetary "get out of jail free card." The U.S. now owes so much to foreigners that not only is legitimate repayment impossible, but the very act of servicing the debt will soon become unbearable. Debt repudiation through inflation likely appears to be the most politically palatable "solution."

Perhaps out of fear of being blamed for an economic downturn, the Fed's overriding concern now appears to be keeping the U.S. from falling into a recession. Without a pause, this would likely be impossible, so pause it must, inflation be damned. My guess is that the Fed will continue to ignore evidence of worsening inflation, using growing signs of a weakening economy as cover for its complacency. All the while it will continue to brag about its "vigilance" and commitment to hiking rates further should inflation become a threat.

more ...

[UpInArms]

34. CBO sees sees U.S. economic growth slowing

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-08-17T145336Z_01_WBT005795_RTRIDST_0_ECONOMY-BUDGET-DEFICIT-FORECASTS-URGENT.XML

WASHINGTON, Aug 17 (Reuters) - The Congressional Budget Office said on Thursday it expects slower economic growth next year, with gross domestic product rising by a projected 3 percent in 2007, compared with 3.5 percent this year.

The latest economic forecasts were part of an updated budget outlook released on Thursday.

The report shows CBO expects slightly slower growth next year than it had projected in March, when it saw the economy growing by 3.4 percent in 2007, taking out the effect of inflation. In March the CBO said real gross domestic product this year would grow by 3.6 percent.

CBO's projections for inflation, minus volatile energy and food prices, is higher than its March report. The CBO said it expects core consumer prices to rise by 2.6 percent in 2006 and 2.5 percent in 2007. Consumer prices including energy and food are projected to rise by 3.5 percent in 2006 and 2.5 percent in 2007. CBO also said the general fiscal outlook remained unchanged for the coming decade.

[UpInArms]

37. U.S. consumers still extracting wealth from homes

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-08-17T172430Z_01_N16169398_RTRIDST_0_ECONOMY-HOUSING-REFINANCE.XML

WASHINGTON, Aug 17 (Reuters) - Many U.S. homeowners continue to take cash out of their homes even as mortgage rates climb and home sales slip, helping to brace the economy, economists said.

This year, Americans who refinance their mortgages are expected to draw $257 billion of wealth out of their homes, according to mortgage finance giant Freddie Mac.

That's $13 billion more than the refinancing cash-out seen in 2005 - the hottest year of the recent housing boom.

"I would have thought the home equity extractions would have been much weaker now," said Frank Nothaft, chief economist for the mortgage finance giant.

Consumers' spending of cash extracted from rapidly rising home values has helped fuel the U.S. economy's expansion over the past few years. But the housing sector is cooling, and most analysts expect that support to consumption to falter.

<snip>

"That (money) is going right back into the economy in one fashion or another," Nothaft said. "Either it shows up through (home) alterations or shows up in consumption spending."

...more...

[mnhtnbb]

39. Wrong. Our home equity is being transferred to Panama.

We are using the equity in our NC home to partially finance the building
of our Panamanian home. We are deliberately getting that money out of the country.

After the 2004 election we decided that we needed an escape hatch from the US. The home equity, along with liquidation of other investments, is financing the new home. Our current plan is to use it for vacation/investment (in a rental pool) until our youngest graduates in 2008.
By then, my hubby will be 65 and decide whether he wants to retire. If he retires, we spend 6 months in Panama and 6 months in NC. If things go to hell here, then we head to Panama permanently. If we can't sell the NC house, at least we will have gotten most of the equity out of it. The Panamanian house will be owned, free and clear, no mortgage.

[AnneD]

40. Sweet....

Welcome to thread mnhtnbb :hi: We haven't bought and are getting out of debt and saving. Depending on the next election cycle in 08 and 10- we might start our asset transfer. We will be ready to retire then.

[UpInArms]

41. 2:36 EST Mexing the Missages with blather

Dow 11,318.63 -8.49 (-0.07%)
Nasdaq 2,149.91 +0.37 (+0.02%)
S&P 500 1,294.60 -0.83 (-0.06%)
10-Yr Bond 4.873 +0.002 (+0.04%)

NYSE Volume 1,786,069,000
Nasdaq Volume 1,457,187,000

2:30 pm : Having been able to fend off sellers for the better part of today's session, the indices have been on the defensive for most of the past hour. In light of this week's gains, it is understandable that there would be an inclination to secure some profits, especially since the market has demonstrated this summer that its mood can swing as quickly as a two-year old who is past her nap time. This week sentiment has clearly been on the bullish side, but that doesn't mean it will remain that way next week. The choppy nature of the market is seen in the scorecard that shows 39 losing sessions and 30 winning ones for the S&P since the May 10 FOMC decision.DJ30 -8.25 NASDAQ +1.09 SP500 -0.93 NASDAQ Dec/Adv/Vol 1194/1771/1.42 bln NYSE Dec/Adv/Vol 1421/1792/1.10 bln

2:00 pm : Market has slipped from its best levels, having hit an air pocket following a Reuters report that Dallas Fed President Fisher reminded listeners in a speech today in Shreveport that central bankers cannot let inflation out of the bag. That is pretty much stating the obvious as it relates to the Fed's responsibilities, but nonetheless, it offered a sobering reminder that the market might be getting ahead of itself with respect to expectations about monetary policy. Briefing.com for its part believes the market's reaction to the PPI and CPI data this week has been overdone considering the high levels of resource utilization and knowing that wage gains have picked up.DJ30 +12.08 NASDAQ +8.69 SP500 +1.58 NASDAQ Dec/Adv/Vol 1077/1867/1.26 bln NYSE Dec/Adv/Vol 1249/1957/995 mln

1:30 pm : Not much change since the last update, which mans the indices continue to trade near their best levels of the session. This despite a recent news report that a judge in New Jersey threw out a verdict that had gone in Merck's (MRK 39.89, -1.29) favor and odered a new trial for the plaintiff who had lost his case. That marks the second does of adverse legal news for Merck today, and not surprisingly, Merck is hitting new intra-day lows. Separately, the broader market's performance is being underpinned by a solid showing from the small-cap stocks, which are the best-performing group today. The Russell 2000 is up 0.90%.DJ30 +38.18 NASDAQ +17.96 SP500 +5.01 NASDAQ Dec/Adv/Vol 1001/1902/1.14 bln NYSE Dec/Adv/Vol 1228/1967/903 mln

1:00 pm : Bulls continue to call the shots as the indices have refused to buckle to profit taking efforts. The shift in sentiment this week arguably shows up best today in the behavior of Dell's stock (23.00, +0.27). Recall that the market is lauding Hewlett-Packard's (HPQ 35.77, +1.34) fiscal third quarter result due in part to the business it won at Dell's expense, which as you might have surmised isn't particularly good news for Dell. Nonetheless, shares of Dell are trading higher today in what can only be labeled as a momentum-based move.DJ30 +41.30 NASDAQ +17.31 SP500 +4.37 NASDAQ Dec/Adv/Vol 979/1907/1.05 bln NYSE Dec/Adv/Vol 1215/1957/832 mln

12:30 pm : The indices are at their best levels of the session, with the latest uptick prompted by a further downtick in crude prices, which have dropped $1.69 on the September contract to $70.20. The oil price pullback, reportedly, is being driven by the idea that the economic slowdown will reduce demand. That is a given, but we suspect the sizable drop since early-August is also being driven by the realization that momentum cuts both ways and that oil price speculators who were betting on $80 oil are losing some of their nerve. Whatever the case, the price pullback is aiding the broader market as it is helping to mitigate inflation concerns.DJ30 +41.30 NASDAQ +15.31 SP500 +3.98 NASDAQ Dec/Adv/Vol 1040/1828/952 mln NYSE Dec/Adv/Vol 1294/1833/755 mln

[UpInArms]

42. market statistics

3:24 PM ET 8/17/06 NYSE VOLUME 1.29B

3:24 PM ET 8/17/06 NASDAQ VOLUME 1.66B

3:24 PM ET 8/17/06 NYSE HAS 1,715 ADVANCERS

3:24 PM ET 8/17/06 NYSE HAS 1,520 DECLINERS

3:24 PM ET 8/17/06 NYSE HAS 167 ISSUES UNCHANGED

3:24 PM ET 8/17/06 NASDAQ HAS 1,709 ADVANCERS\

3:24 PM ET 8/17/06 NASDAQ HAS 1,279 DECLINERS

3:24 PM ET 8/17/06 NASDAQ HAS 143 ISSUES UNCHANGED

3:24 PM ET 8/17/06 NYSE HAS 84 ISSUES SETTING 52-WEEK HIGHS

3:24 PM ET 8/17/06 NYSE HAS 16 ISSUES SETTING 52-WEEK LOWS

3:24 PM ET 8/17/06 NASDAQ HAS 63 ISSUES SETTING 52-WEEK HIGHS

3:24 PM ET 8/17/06 NASDAQ HAS 35 ISSUES SETTING 52-WEEK LOWS

[UpInArms]

43. Ex-Comverse CEO is considered a fugitive, lawyer tells WSJ (update)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD00CBD5B%2DA0B4%2D492F%2D9C1A%2D90AEBBCFC43E%7D&siteid=mktw&dateid=38944%2E2221725579%2D880431605

TEL AVIV (MarketWatch) -- Kobi Alexander, the former chief executive of Comverse Technology (CMVT : 21.40, +0.36, +1.7% ) who is facing U.S. charges related to the company's stock-option grants, is considered a fugitive by the U.S. government, his attorney told The Wall Street Journal. The Federal Bureau of Investigation has issued a warrant for Alexander's arrest, the paper reported in its online edition. Robert Morvillo, the attorney, told the paper that he does not know where Alexander is. The government charges that in the last two weeks of July, Alexander transferred $57 million to Israel to conceal the funds from the authorities, the paper reported. Two other former Comverse executives who were charged surrendered to authorities. Comverse is the Tel Aviv producer of multimedia software, systems and services for network operators.

Update:

4:48pm 08/17/06 Comverse Tech fires former general counsel William Sorin - MarketWatch

4:49pm 08/17/06 Comverse Tech revokes options from fired execs - MarketWatch

4:47pm 08/17/06 Comverse Tech fires former CFO David Kreinberg - MarketWatch

4:46pm 08/17/06 Comverse Tech fires former CEO Kobi Alexander - MarketWatch

[UpInArms]

44. All's Well that ends Well - no losers today

even the buck recovered :shrug:

Dow 11,334.96 +7.84 (+0.07%)
Nasdaq 2,157.61 +8.07 (+0.38%)
S&P 500 1,297.48 +2.05 (+0.16%)
10-Yr Bond 4.867 -0.004 (-0.08%)

NYSE Volume 2,424,398,000
Nasdaq Volume 1,964,709,000

Despite the month of August being earmarked as the worst month for the S&P 500 over the last 15 years, according to The Stock Traders Almanac, this August so far is shaping up to be quite a surprising victory for the bulls as stocks closed higher for a fourth straight day. Month to date, the Dow, S&P 500 and Nasdaq are up 1.3%, 1.6% and 3.2%, respectively.

Providing the bulk of support Thursday was Technology, which is up 6.3% this week alone, and has helped the tech-heavy Nasdaq more than halve its year-to-date decline with a nearly 5% advance since last Friday. Maintaining bargain hunters' interest in the beaten-up semiconductor group was an analyst upgrade on Advanced Micro Devices (AMD 24.21 +1.64), which soared 7.3% to its best close in six weeks. Making even bigger headlines, however, and providing positive implications for the entire PC market, not just computer chips, was Hewlett-Packard (HPQ 35.09 +0.66). The Dow component, which is on pace to surpass IBM for the first time as the nation's largest tech company, beat analysts' expectations last night, issued an upside Q4 EPS outlook and announced plans to repurchase up to $6 bln in stock.

Not all Dow components fared quite as well, though, which minimized gains among the blue chip indices. Merck (MRK 38.80 -2.38) was a notable decliner, plunging 5.8% following a double dose of adverse legal news, while General Motors (GM 30.56 -0.43) shed 1.4% as valuation concerns prompted J.P. Morgan to downgrade the car maker to Neutral.

Speaking of autos, weakening demand for motor fuel as the summer driving season comes to an end, spurred more consolidation in crude oil futures. The September contract fell for a fourth straight day, plunging 2.5% to $70 a barrel - the lowest level since June as gasoline futures finished at four-month lows and the cease-fire in the Middle East remains intact. With policy makers recently citing higher energy prices as putting upward pressure on overall inflation, another pullback in oil provided some added relief as it helped to mitigate inflation concerns.

Separately, today's economic data included the weekly Initial Claims, Leading Indicators and Philly Fed reports; however, none of the reports had any real impact on trading given that this week's batch of more influential economic data (e.g. PPI, CPI) has already run its course. The absence of follow-through buying in bonds, though, was noteworthy since the rally in Treasuries amid growing evidence the Fed may remain on hold with its tightening efforts has been an even bigger catalyst behind this week's rally, the sustainability of which remains questionable with wages still on the rise and knowing that "high levels of resource utilization" that the Fed likes to refer to have not eased. BTK +1.1% DJ30 +7.84 DJTA -0.4% DJUA -0.3% DOT +1.0% NASDAQ +8.07 NQ100 +0.2% R2K +0.5% SOX +0.6% SP500 +2.05 XOI -0.8% NASDAQ Dec/Adv/Vol 1229/1794/1.94 bln NYSE Dec/Adv/Vol 1495/1789/1.57 bln

:hi: