STOCK MARKET WATCH, Friday December 22

[ozymandius]

Friday December 22, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 759 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2186 DAYS
WHERE'S OSAMA BIN-LADEN? 1892 DAYS
DAYS SINCE ENRON COLLAPSE = 1853
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 7
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 December 21, 2006

Dow... 12,421.25 -42.62 (-0.34%)
Nasdaq... 2,415.85 -11.76 (-0.48%)
S&P 500... 1,418.30 -5.23 (-0.37%)
Gold future... 621.60 -2.70 (-0.43%)
30-Year Bond 4.69% -0.03 (-0.72%)
10-Yr Bond... 4.55% -0.05 (-1.00%)






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 Martin Goldberg

THE U.S. STOCK MARKET LOOKS TIRED
(Gold Stock Review Below)

The stock market is in the traditionally bullish year end period in a year where seasonality is one of the most followed aspects of the market. Therefore, it would be caviler to take any significant bearish positions against such herd behavior. Still it is not difficult to find a few cracks that are beginning to build in the US stock market. Among stocks and sectors showing weakness are transportation stocks, the Nasdaq 100, Google, the US homebuilders, and certain formerly hot “concept” restaurants.

-cut-

Nasdaq 100 – Looks Tired

After leading the US stock market higher through most of the election year-end rally, the Nasdaq 100 now looks tired. While the Dow and S&P 500 averages have made all time and new multi-year highs respectively, the Nasdaq 100 has been locked in a trading range over the last 5 weeks. The lower pane of the weekly chart below shows the performance of the Nasdaq 100 divided by the S&P 500. When the line moves down, the Nasdaq 100 is underperforming the S&P 500 and this is what is happening now. Over the last 3-years, decisive trendline breaks of this chart, as has occurred about 3 weeks ago, have produced reliable sell and buy signals for the Nasdaq 100.

-cut-

Google – Looks Tired

The watched phenomenon, Google, perhaps reflects the tiredness of the Nasdaq 100. While GOOG has advanced to levels where it is sure to be part of the documented history of this bull market, it is important to note that each of its advances have come on diminishing volume. Whereas the previous advance to above 450 has come on weekly volumes of about 50 million shares, the rally to 500 occurred on about one-half of that amount. Is there anyone left to buy Google?

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

[ozymandius]

2. Today's Reports

8:30 AM Durable Orders Nov
Briefing Forecast 1.0%
Market Expects 1.5%
Prior -8.2%

8:30 AM Personal Income Nov
Briefing Forecast 0.4%
Market Expects 0.4%
Prior 0.4%

8:30 AM Personal Spending Nov
Briefing Forecast 0.7%
Market Expects 0.6%
Prior 0.2%

10:00 AM Mich Sentiment-Rev. Dec
Briefing Forecast 90.2
Market Expects 90.2
Prior 90.2

http://biz.yahoo.com/c/e.html

[UpInArms]

12. 8:30 reports

U.S. Nov. durable-goods inventories up 0.3% -8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. Nov. computer orders up 27% - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. Nov. durable-goods unfilled orders up 1.7% - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. Nov. core capital equipment orders fall 1.4% - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. Nov. durable-goods shipments up 0.1% - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. Nov. durable orders ex-transportation down 1.1% - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. Nov. durable-goods orders up 1.9% vs. 1.5% expected - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. Nov. wages, salaries up 0.3% - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. Nov. personal savings rate -1.0% - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. Nov. consumer spending up 0.5% as expected - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. Nov. incomes rise 0.3% vs. 0.4% expected - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. core consumer inflation up 2.2% yoy vs. 2.4% - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

U.S. Nov. core PCE price index unchanged vs. 0.1% expected - 8:30 AM ET, Dec 22, 2006 - 14 minutes ago

(edited for tidiness)

[UpInArms]

21. U.S. consumer sentiment dips going into holidays

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-12-22T150013Z_01_N22271066_RTRIDST_0_USA-ECONOMY-SENTIMENT-URGENT.XML

NEW YORK, Dec 22 (Reuters) - U.S. consumer sentiment slipped in December but was not far from the year's highs, a report said on Friday, suggesting Americans were guardedly optimistic about the economy in the holiday season.

The University of Michigan said the final December reading of its consumer sentiment index declined to 91.7 from 92.1 in November. The drop was less severe than expected on Wall Street, where the median forecast called for a reading of 90.2.

A measure of current conditions edged up on the month to 108.1 from 106.0 in November, but expectations about the future deteriorated, to 81.2 from 83.2. Price expectations over a one-year period, an important guidepost for interest rate policy, dipped to 2.9 percent, its lowest since February 2005. That index was at 3.0 percent in November.

...more...

[Ghost Dog]

25. University of Michigan Dec US consumer confidence index 91.7 vs 92.1 in Nov

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=8f4de6f9-d176-4056-9342-2142f1fd6d0e

WASHINGTON (AFX) - The University of Michigan index of consumer confidence indicator fell to 91.7 points in December compared to 92.1 in November.
Analysts had been expecting an index level of 90.2 points.

/.

[Ghost Dog]

26. Weak regional manufacturing and slow economy hurt market

http://www.themountainmail.com/main.asp?SectionID=19&SubSectionID=75&ArticleID=9817

U.S. stocks fell Thursday after economic data pointing to a slowing economy and weakness in regional manufacturing weighed on investor sentiment.

The Philadelphia Federal Reserve December business index gauging regional manufacturing activity, came in at a negative 4.3 compared with a positive reading of 5.1 in November.

The weaker-than-expected economic data also sent bond prices higher.

/...

[ozymandius]

3. Oil prices flat, under $63 a barrel

SINGAPORE - Oil prices were steady in Asian trading Friday after falling more than $1 in the previous session on forecasts of warmer-than-average weather in the U.S. Northeast and as shipments returned to normal in the U.S. Gulf Coast region.

Light, sweet crude for February delivery rose a penny to $62.67 a barrel in electronic trading on the New York Mercantile Exchange, midmorning in Singapore. The contract on Thursday fell $1.06 to settle at $62.66 a barrel.

Oil prices came under pressure after the National Weather Service forecast Thursday that temperatures in the Northeast will remain above normal through the first days of January.

-cut-

U.S. crude inventories plunged by 6.3 million barrels last week from the previous week, the Department of Energy reported Wednesday, much greater than analysts' expectations of a drop between 1.8 million barrels and 2 million barrels.

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

[ozymandius]

4. Foreign oil facilities in Nigeria seized

LAGOS, Nigeria - Armed men attacked two foreign oil facilities in southern Nigeria on Thursday, and both shut down production following the assaults in the restive, oil-rich region. Royal Dutch Shell PLC, which came under attack earlier this week, began evacuating families of foreign workers, citing worsening security.

Before dawn Thursday, about a dozen gunmen attacked a Total SA pumping station, killing three security guards. The company shut the 40,000-barrel-a-day facility to "ensure the total protection of the site," spokesman Paul Floren said by phone from Paris.

Gunmen later occupied a facility owned by the Italian company Eni SpA. In a statement on its Web site, Eni said no injuries or damages were reported at the Tebidaba oil-pumping station, which shut down production. Eighteen local workers were in the facility when the attack occurred.

-cut-

Militants say attacking the oil infrastructure is their only way to get a share of the country's oil wealth, and the attacks have become so common that oil markets that once sparked at each announcement of further assaults sometimes barely budge. And while the international oil companies have expressed concern about the security situation, they have not said they will pull back operations.

http://news.yahoo.com/s/ap/20061221/ap_on_re_af/nigeria_oil_unrest_6

[UpInArms]

19. Iran turns from dollar to euro in oil sales

http://business.timesonline.co.uk/article/0,,16849-2514985,00.html

Iran is selling more of its oil for payment in euros than dollars as it seeks to shift its foreign currency reserves away from the depreciating currency of its political enemy, the United States.

The world’s fourth-biggest oil exporter has inserted a clause in its oil contracts allowing it to request payment in alternative currencies.

Gholanhossein Nozari, the managing director of National Iranian Oil Company, said that 57 per cent of Iran’s income from oil exports was now received in euros.

The move reflects a political desire for less reliance on the dollar, as well as a need to avoid further depreciation in currency reserves. Iran’s dollar holdings are thought to have fallen from 40 per cent of currency reserves to just a third.

Iran announced plans in 2004 to develop an Iranian oil bourse, a commodity exchange that would become a Middle Eastern rival to the major exchanges in New York, London and Singapore, which set benchmark oil prices.

The Iranian bourse would also challenge the petrodollar by setting oil prices in euros. However, there has been little progress in establishing the bourse, which failed to launch as planned last March.

...more...

[ozymandius]

29. Venezuela mulls euro oil switch

Venezuela has expressed interest in an Iranian move to ask buyers to pay for oil in euros rather than US dollars.

The oil-rich nation said it planned to see if a similar scheme could be introduced to its crude exports.

Iran, the world's fourth-biggest oil producer, has already asked customers to pay for its oil in euros because of the current weakness of the dollar.

Although the dollar is the currency in which oil is usually traded, it has been falling in value against the euro.

http://news.bbc.co.uk/2/hi/business/6202791.stm

[ozymandius]

5. European equities hit by low volumes

European equities were lower on Friday, the last trading day before Christmas, although volumes were thin and as a consequence trade was more volatile than usual.

The FTSE Eurofirst 300 was down 0.1 per cent by midday to 1,476.94, Frankfurt's Xetra Dax fell 0.2 per cent to 6,562.28, the CAC 40 in Paris shed 0.3 per cent to 5,494.21 and London's FTSE 100 was marginally higher at 6,186.3.

http://news.yahoo.com/s/ft/20061222/bs_ft/fto122220060706449070

[Ghost Dog]

27. European stocks end lower; growth worries hit US

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2006-12-22T163724Z_01_L20480759_RTRIDST_0_MARKETS-EUROPE-STOCKS-CLOSE-URGENT.XML

LONDON, Dec 22 (Reuters) - European shares went into the Christmas break lower on Friday as volumes stayed thin and corporate news limited, with growth worries dragging down shares across the Atlantic.

The FTSEurofirst <.FTEU3> 300 index of top European shares ended unofficially down 0.43 percent at 1,472.65 points.

Among national indexes, Frankfurt's DAX <.GDAXI> lost 1.1 percent and France's CAC 40 <.FCHI> 1 percent.

Earlier, Britain's FTSE 100 .FTSE ended 0.1 percent lower.

Autos and telecoms sectors were the biggest losers in Europe, with several other sectors also weak.

/.

[ozymandius]

6. (US) Futures tick up, data and tech shares eyed

NEW YORK (Reuters) - U.S. stock futures pointed to a slightly higher Wall Street open on Friday, with tech shares such as Red Hat Inc. (NYSE:RHT - news) and Micron Technology Inc. (NYSE:MU - news) poised to offer support as investors await key inflation data.

The U.S. personal consumption expenditures index for November is set for release at 8:30 a.m. (1330 GMT).

The "core" PCE, stripped of volatile food and energy prices, is the Federal Reserve's preferred inflation measure, so the data could shed light on how much room the Fed would have to cut interest rates after news of a downward revision to third-quarter gross domestic product, which sparked concern that U.S. economic growth may be slowing faster than expected.

November U.S. durable goods orders data are also on tap, along with the University of Michigan's final December reading of its consumer sentiment index, which is pegged to show a final reading of 90.2, versus November's 92.1.

http://news.yahoo.com/s/nm/markets_stocks_dc

[ozymandius]

7. Wall Street bonuses flood NYC's economy

NEW YORK - When Michael Aaron learned that Wall Street investment banks were going to be shelling out record bonuses this holiday season, the savvy wine merchant uncorked his own plan to make serious dough.

He paid for a double-page advertisement in The New York Times, boasting a rare bottle of 1995 Dom Perignon. The price tag — $14,950.

"We thought we'd put this temptation out there," said Aaron, chairman of Sherry-Lehmann wine store on Madison Avenue.

The $15,000 bottle of bubbly is just one example of how record Wall Street bonuses this year can trickle through New York City's economy. People are buying multimillion-dollar apartments. They are driving $40,000 BMWs out of the showroom.

-cut-

The most jaw-dropping bonuses are being doled out by Goldman Sachs Group Inc., the world's largest investment bank. The company reported a staggering profit last week of $9.4 billion and said it was dedicating $16.5 billion for salaries, bonuses and benefits at the end of the year.

http://news.yahoo.com/s/ap/20061220/ap_on_bi_ge/wall_street_bonuses

I feel queasy.

[ozymandius]

8. Ford boss plans radical overhaul: WSJ

NEW YORK (Reuters) - Ford Motor Co.'s new chief executive Alan Mulally's agenda calls for the motor company to plow through "gut-wrenching" change to achieve profitability by 2009, the Wall Street Journal reported on its Web site on Friday.

The WSJ reported that at a board meeting last week, Mulally surprised directors by asking them to follow him from the boardroom, down a flight of stairs to his secret "war room," where his plan for the company is mounted on the walls, the WSJ reported, citing people familiar with the situation.

The pages contain charts, graphs and lists of Ford products and markets -- his road map to turn around the troubled auto maker, the paper reported.

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&Date=20061222&ID=6298776

[ozymandius]

9. Ford to slip to No. 3 spot in U.S. in 2007-report

DETROIT, Dec 21 (Reuters) - Ford Motor Co. (F.N: Quote, Profile, Research) will slip to become the No. 3 automaker in the United States next year as Japanese rival Toyota Motor Corp. (7203.T: Quote, Profile, Research) powers ahead in the industry's largest market, according to a sales forecast released on Thursday.

Edmunds.com, which provides information on the U.S. auto market, said Toyota will overtake Ford by mid-2007 in sales volume.

Toyota now often outpaces DaimlerChrysler AG's (DCXGn.D: Quote, Profile, Research) Chrysler Group and for two months this year sold more vehicles than Ford, which has seen sales drop almost 8 percent in 2006. Toyota's U.S. sales, meanwhile, have increased nearly 13 percent over the same period.

Ford, which is struggling with mounting losses in North America, has said it is aiming to hold its overall share of the U.S. light vehicle market at between 14 percent to 15 percent, including fleet sales, from the current 17.7 percent as it restructures by shutting 16 plants and cutting more than 50,000 jobs.

http://today.reuters.com/news/articlebusiness.aspx?type=tnBusinessNews&storyID=nN21336189&from=business

[ozymandius]

10. Toyota set to overtake GM in 2007

NAGOYA (Reuters) -- Toyota Motor Corp. expects to produce a record 9.42 million vehicles next year, a 4 percent rise that should take it past General Motors Corp. as the world's biggest auto maker.

As the Japanese firm woos buyers worldwide with cars seen as safe, affordable and fuel efficient, U.S. rivals GM (Charts) and Ford Motor Co. (Charts) battle falling market share, closing factories and shedding thousands of jobs.

Soaring fuel prices have battered Detroit's auto heartland, with customers shunning gas-guzzling pickups in favor of cheaper-to-run models from Japanese and South Korean car makers.

http://money.cnn.com/2006/12/22/news/companies/toyota_gm.reut/index.htm?postversion=2006122206

[Ghost Dog]

22. Nikkei up as Toyota sees record, merger buoys Pentax

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061222:MTFH66644_2006-12-22_08-02-44_T170072&type=comktNews&rpc=44

TOKYO, Dec 22 (Reuters) - The Nikkei average gained 0.34 percent on Friday to its highest close in 7-½ months as Toyota Motor Corp. (7203.T: Quote, NEWS , Research) climbed after announcing that its group-wide auto output will rise to a record 9.42 million vehicles next year, a level likely to make it the world's top auto maker.

Camera maker Pentax Corp. (7750.T: Quote, NEWS , Research) jumped 5.9 percent following Thursday's announcement of its merger with optical glass maker Hoya Corp. (7741.T: Quote, NEWS , Research). But gains in Hoya shares were smaller at 1.3 percent, as analysts said Pentax's digital camera business may become a burden for Hoya as it combats price competition and faces bigger rivals such as Canon Inc. (7751.T: Quote, NEWS , Research).

The market lacked momentum as investors locked in profits on recent gainers ahead of Christmas holidays overseas. Losses in shares of oil firms and metal producers due to falls in commodity prices also weighed on the market.

"The market is in a cautious mood as foreign players, who led the rally in the Tokyo market this month, are going away for Christmas holidays," said Takahiko Murai, general manager of equities at Nozomi Securities. "But Japanese investors are eager to buy on dips, making the downside of the market solid," he said.

/...

[UpInArms]

11. daily dollar watch

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

Last trade 83.52 Change -0.07 (-0.08%)

Dollar Weakness Limited Despite Softer Data

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Dollar_Weakness_Limited_Despite_Softer_1166740280415.html

US Dollar

Weak economic data has pushed the US dollar lower but not by much as the market is still reeling off of this past Tuesday’s strong inflation report. As long as inflation remains high, the market believes that the Federal Reserve has little choice than to stick to their hawkish bias. The biggest weakness today was in the Philadelphia Fed index and even within that report prices paid six months forward are expected to increase. The sentiment of manufacturers in the Philadelphia region dropped to the weakest level since April 2003, but on an ISM adjusted basis, the index increased from 51.0 to 51.8 (adjusting for ISM means to use the same weighting scheme as the ISM index). Overall, there is no argument that the manufacturing sector remains weak, but it may not be as weak as today’s headline Philly Fed number indicates. In fact, employment increased in both the current conditions and expectations component of the report. The other disappointments this morning included a downward revision to third quarter GDP, a rise in jobless claims, softer personal consumption numbers and an unimpressive leading indicators report. Tomorrow we are expecting durable goods orders, personal income and the PCE deflator. With a sharp drop in orders in the month of October, a rebound is expected in November. Personal income should remain unchanged, while the PCE deflator, which is a measure of inflation, is expected to tick upwards. We continue to see no reason for the EUR/USD to break its recent 1.3050-1.3350 trading range.

..more...

Steady Dollar Unfazed by Downgrade in GDP Figures and Philly Fed Data

http://www.dailyfx.com/story/currency/eur_news/Steady_Dollar_Unfazed_by_Downgrade_1166722630322.html

The Dollar languished following early morning GDP data, with lackluster economic data providing little reason to push currencies in either direction. Despite a downgrade in final figures for Third Quarter domestic economic expansion, the Greenback remained almost squarely unchanged through the US session, with the EURUSD at $1.3170 as of 15:40 GMT. Later Philadelphia Fed Manufacturing numbers likewise produced little change, as a sharp Dollar drop was met with nearly instant buying interest.

Broadly mixed early economic data did little to change the fundamental outlook for the US economy, as markets had somewhat expected a downward revision to final numbers for Q3 GDP. Perhaps the bigger news of the morning was a slight gain in the GDP Price index, with numbers printing a slight revision from 1.8 to 1.9 percent through the same period. Heightened inflation expectations could explain the Greenback’s subsequent move higher against the low-yielding Japanese Yen, as any gain in price pressures bolsters the case for steady Fed interest rates through the medium term.

Regional economic data was not quite as benign, however, with the later Philadelphia Fed Manufacturing Survey showing the worst reading in over three years at -4.3. Manufacturers reported declining activity on the month of December, with an effort to shed excess inventory leaving production lower through the period. Despite a sharp gain in the total Shipments index to 19.0, falling demand dims outlook for the sector, as Unfilled Orders fared far worse at -20.7. Perhaps interestingly, however, some economists cited the reading as better than the headline figure would suggest. According to IFR Markets, the US Philly Fed survey would have printed an improvement of +4.6 points through December if it were weighted the same as the closely watched ISM Manufacturing Index.

..more...

[UpInArms]

13. Benign US inflation dents dlr, boosts bonds

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-12-22T135803Z_01_L22392060_RTRIDST_0_MARKETS-GLOBAL-WRAPUP-4.XML

LONDON, Dec 22 (Reuters) - The dollar weakened and U.S. Treasuries pared losses on Friday after a key inflation measure unexpectedly came in flat last month, giving the Federal Reserve more leeway to cut interest rates next year.

The U.S. core personal consumption expenditures (PCE) index, a favoured Fed inflation measure, was unchanged in November, while personal income rose 0.3 percent and spending rose 0.5 percent.

Economists had expected a 0.2 percent rise in the core PCE and a 0.4 rise in personal income, according to the medians in a Reuters poll.

"Headline income and spending was a touch below expectations, but the thing that will jump out at people is the zero growth reading on the core PCE deflator," said Nigel Gault, director of U.S. economic research at Global Insight.

"It's a nice Christmas present for the Fed. It has moved half the distance toward the top end of their comfort zone. I'm sure they won't declare victory but they will be pleased."

...more...

[UpInArms]

14. Judge Refuses to Split Trial in U.S. Case on Tax Shelters

http://www.nytimes.com/2006/12/21/business/21shelter.html?ei=5088&en=09015c1889e4dd9e&ex=1324357200&adxnnl=1&partner=rssnyt&emc=rss&adxnnlx=1166796126-myCLfNmV7jhPd5KtlfSaog

The federal judge overseeing a mammoth tax shelter case said yesterday that the delayed trial would begin next fall, but he rejected a proposal by prosecutors to try the defendants separately in two groups.

The judge, Lewis A. Kaplan of Federal District Court in Manhattan, ordered jury selection to begin on Sept. 17, 2007, in the criminal trial of the 18 defendants, 16 of whom are former employees of the accounting firm KPMG.

The judge also said that he had tentatively decided not to have separate trials. “Essentially what I have been offered is the opportunity to have two unmanageable trials rather than one,” he said.

<snip>

The 18 defendants are accused of conspiracy and tax fraud by making, selling and, in some cases, using questionable tax shelters that cost the Treasury an estimated $2.5 billion in unpaid taxes.

In his June ruling, Judge Kaplan criticized KPMG, saying it had bowed to prosecutorial pressure to reverse its longstanding policy and cut off legal fees to the defendants or face a heightened risk of indictment. At the time, KPMG was under criminal investigation for its tax shelter work. Last year, the firm averted indictment and instead reached a $456 million deferred-prosecution agreement, one of the largest of its kind.

In the June ruling, Judge Kaplan also criticized what he called the government’s abusive prosecutorial guidelines. Last week, amid mounting criticism, the Justice Department changed the guidelines, making it unacceptable for prosecutors weighing whether to indict a company to consider whether the company was paying the legal fees of employees caught up in investigations.

...more...

[UpInArms]

15. In Spite of Shareholder Objections, Pfizer's McKinnell to get $180M package

http://news.yahoo.com/s/ap/20061222/ap_on_bi_ge/pfizer_mckinnell

NEW YORK - Pfizer Inc.'s former chief executive, Henry A. McKinnell, who was forced into an early retirement in part because of investor anger about his rich retirement benefits, will get every penny of it and more, a new regulatory filing shows.

McKinnell's package, which the company disclosed in a filing with the
Securities and Exchange Commission Thursday, totals more than $180 million. It includes an estimated $82.3 million in pension benefits, $77.9 million in deferred compensation, and cash and stock totaling more than $20.7 million.

The total value could grow to almost $200 million if McKinnell gets a $18.3 million stock award, but that is contingent on the future performance of the stock of the world's largest drugmaker.

<snip>

The package also provides him with an annual pension of $6.6 million until he dies. Pfizer estimated the pension's lump-sum value to be $82.3 million.

McKinnell vacated the CEO spot in July, 19 months before he was scheduled to step down, under pressure from investors angered about his retirement package and a drop of as much as 40 percent in the company's stock price during his five years in charge.

For some investors, already angry over the stock's slide, McKinnell's retirement package was a flash point. At Pfizer's April annual meeting in Lincoln, Neb., a plane flew overhead trailing a banner that said, "Give it back, Hank!" Two proxy advisory companies had called for removal of board members and the AFL-CIO led a protest against the retirement package. The board members were re-elected, however.

...more...

[UpInArms]

16. Forgetting who they work for: Fidelity to pay about $42M in gifts case

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

BOSTON - Fidelity Investments announced Thursday that it will pay at least $42 million in penalties to its funds to clear allegations that its traders improperly steered business to brokerage firms that gave them travel, entertainment, gifts and gratuities.

The company said, however, that an independent investigation headed by a retired New York federal judge failed to unearth evidence to prove or disprove unethical conduct.

Fidelity will pay $42 million, plus interest, Fidelity's chairman, Edward C. Johnson, said in a letter to shareholders, staff and customers. He did not specify which funds would receive the money.

<snip>

On Dec. 4, the brokerage firm Jefferies & Co. Inc. agreed to pay some $9.7 million to settle regulators' charges that it illegally lavished nearly $2 million in golf trips, entertainment and other gifts on Fidelity mutual fund traders in exchange for their trading business.

The Securities and Exchange Commission and the National Association of Securities Dealers, the brokerage industry's self-policing organization, announced the settlements, under which two Jefferies executives also were sanctioned.

...more...

[UpInArms]

17. pre-opening blather

09:15 am : S&P futures vs fair value: +1.2. Nasdaq futures vs fair value: +0.2.

09:00 am : S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: -0.2. Pre-market trading remains choppy as investors struggle to embrace inflation data that confirm last Friday's encouraging CPI number was not an aberration. Despite the "incoming" data's ability to influence the market's mentality on consumer spending activity and the Fed's thinking on monetary policy, the durable goods report reflecting a slower underlying trend in orders remains a concern for investors more preoccupied with the pace of economic growth. The futures market continues to suggest a lackluster start to end the last full week of trading for 2006.

08:35 am : S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: -2.0. November personal income rose 0.3% (consensus 0.4%) while personal spending rose 0.5% (consensus 0.6%). The more closely watched core-PCE deflator, meanwhile, was flat (consensus 0.2%) to put the year-over-year rate at 2.2%. Durable Orders rose a larger than expected 1.9% in November (consensus 1.5%), while nondefense capital goods orders excluding transportation, which provide a clearer read on underlying business capital investment, fell 1.4%. Futures indications have pulled back slightly following the data and now point to a mixed start for the cash market. Bonds, though, have improved a bit, pushing the yield on the 10-yr note (-3/32) to 4.55%.

08:00 am : S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +1.5. An early positive bias suggest stocks may get back on the buying track when the opening bell sounds. Nasdaq 100 futures are trading above fair value, but that's not all that surprising since the tech-heavy Composite logging its longest losing streak (four days) in four months is likely to attract bargain hunters. The overall tone, however, offers little conviction on the part of buyers as investors, somewhat hesitant to make any concerted bets on stocks ahead of the long holiday weekend, await the 8:30 ET release of personal income and spending data. The report contains the core-PCE deflator, the Fed's favored inflation gauge.

[UpInArms]

18. 8:37 and lumps of coal

Dow 12,400.50 20.75 (0.17%)
Nasdaq 2,411.40 4.45 (0.18%)
S&P 500 1,416.67 1.63 (0.11%)
10-Yr Bond 4.574% 0.025

NYSE Volume 78,873,000
Nasdaq Volume 71,544,000

[Ghost Dog]

20. US, China square off

http://www.atimes.com/atimes/Southeast_Asia/HL23Ae01.html
By Shawn W Crispin

BANGKOK - Of all the factors that contributed to Thailand's mid-December decision to impose restrictive controls on short-term capital flows, which subsequently flattened the stock market and sparked howls of discontent from foreign investors, Thai authorities' primary motivation for the fateful policy was left unnamed, but clearly it was China rather than the US.

The rapid appreciation of the free-floating Thai baht against the fixed-rate Chinese yuan rather than the US dollar had in recent months severely eroded Thailand's overall export competitiveness, particularly in the crucial electronics sector, which accounts for about 35% of Thai exports. If the baht-yuan gap had widened further, Thai central bank authorities feared that a stronger baht would have bankrupted its exporters and severely crimped economic growth.

It's not the first time that China's rigid exchange-rate policy has sent ripples of financial instability through Southeast Asia. In retrospect, some economists believe that Beijing's decision in 1994 to peg the yuan to the US dollar at the artificially low rate of 8.2 per greenback was a crucial determining factor in the 1997-98 Asian financial crisis, which devastated the region's currencies, bourses, banks and broad economies.

...

Geographical pull means Southeast Asia will increasingly look toward its giant northern neighbor for new trade and investment opportunities, a trend that should accelerate as regional business seeks ways to make up for lost sales to the US. That's already happening: Sino-Southeast Asia trade surged to $130 billion in 2005 and is on pace to grow even faster this year. The two sides are now negotiating a free-trade agreement that would potentially form the world's largest free-trade area in the world by 2010.

/...

[UpInArms]

23. 10:28 update and bye

Dow 12,376.62 44.63 (0.36%)
Nasdaq 2,413.92 1.93 (0.08%)
S&P 500 1,415.16 3.14 (0.22%)
10-Yr Bond 4.585% 0.036

NYSE Volume 369,500,000
Nasdaq Volume 340,144,000

10:00 am : The indices extend their reach to the downside as the disinterest to own equities at this juncture, considering that the Christmas holiday is calling, continues to intensify. That isn't all that surprising though considering the magnitude of how far stocks have run-up over the last two quarters. With all three major indices up at least 11% on average since the end of June, economic growth concerns leave investors questioning the sustainability of the second-half rally and offering an opportunity to lock in some of those gains going into the long holiday weekend.DJ30 -53.74 NASDAQ -8.14 SP500 -4.98 NASDAQ Dec/Adv/Vol 1425/969/160 mln NYSE Dec/Adv/Vol 1043/1060/80 mln

09:40 am : Stocks stumble out of the gate as investors weigh more evidence of slowing economic growth against a benign reading on the Fed's favored inflation gauge. With the Fed recently saying that some inflation risks remain, leaving their focus on "incoming" data to dictate monetary policy decisions, the core PCE deflator for November checking in flat (0.0%), following 0.2% gains over the previous two months, lends some validation to a similar 0.0% read on November core CPI last week.

I'll try and check back later :hi:

[Roland99]

24. Merry Christmas to all the SMW folks!

[ozymandius]

28. Red ink for the holidays

2:39
Dow 12,353.23 Down 68.02 (0.55%)
Nasdaq 2,404.80 Down 11.05 (0.46%)
S&P 500 1,412.00 Down 6.30 (0.44%)
10-Yr Bond 4.624% Up 0.075
NYSE Volume 1,222,322,000
Nasdaq Volume 1,013,361,000

2:30 pm : Little changed since the last update as the major averages continue to vacillate in roughly the same ranges. While selling efforts remain broad-based, there are a few bright spots shining through during today's dismal session. Drug Retail (+1.8%) is the afternoon's leading S&P industry group, catching a bid and extending its reach as one of this month's best performers (+11.3%) after Walgreen (WAG 46.91 +0.95) posted record Q1 sales and earnings. Despite a modest pullback in oil prices today, Oil & Gas Storage (+1.5%) ranks second among today's winners, following reports that El Paso (EL 15.59 +0.77) plans to sell its ANR Pipeline for $3.4 bln, while a 10 mln share buyback approved by IMS Health's (RX 27.58 +0.38) board leaves Health Care Tech at No. 3 with a 1.4% advance. DJ30 -64.34 NASDAQ -11.07 SP500 -5.98 NASDAQ Dec/Adv/Vol 1677/1292/978 mln NYSE Dec/Adv/Vol 2006/1170/680 mln

[UpInArms]

30. no Santa rally today - but Merry New Holiday anyway

Dow 12,343.22 78.03 (0.63%)
Nasdaq 2,401.18 14.67 (0.61%)
S&P 500 1,410.76 7.54 (0.53%)
10-Yr Bond 4.624% 0.075

NYSE Volume 1,611,288,000
Nasdaq Volume 1,337,481,000

With only four trading days left in 2006, today officially marked the start of the classic year-end Santa Claus rally, according to the Stock Trader's Almanac. As has been the case with stocks showing weakness on the last trading day before Christmas over the last four years, however, today was no exception.

Be that as it may, with the belief stocks are overbought on a short-term basis resurfacing to consolidate some of the market's five-month rally, thin volumes heading into the long holiday weekend offered very little in the way of conviction on the part of sellers. The NYSE did not even see 1.0 bln shares trade hands.

Before the bell, the Commerce Dept. showed that personal spending in November rose the most since July. With the Fed recently saying that some inflation risks remain, leaving their focus on "incoming" data to dictate monetary policy decisions, the accompanying core-PCE deflator (and Fed's favored inflation gauge) checking in flat (0.0%) also helped to support the possibility of a "soft landing." After all, today's report follows 0.2% gains over the prior two months, lends some credence to last Friday's similar 0.0% reading on core-CPI and increases the likelihood of a Fed easing in early 2007 since it is evident that inflation pressures are definitely moderating.

Nonetheless, with such moderation coming at the expense of slower economic growth, a stock market more concerned about the strength of the economy than inflation for the time being, a mixed durable orders report provided an ideal excuse to take some more money off the table. As a reminder, the Dow has hit new record highs more than 20 times since October while the S&P 500 and Nasdaq have posted respective gains of 15% and 19% since bottoming out in July.

Durable orders rose a larger than expected 1.9% in November (consensus 1.5%); but non-defense capital goods excluding transportation orders, which are sometimes considered a barometer of underlying business investment trends, fell 1.4%. Not surprisingly, the Industrials sector was one of today's worst performers.

Of the other nine sectors closing lower, Technology paced the way to the downside, and the absence of such influential leadership acted as the largest obstacle for the bulls to overcome Friday. Qualcomm (QCOM 37.81 -0.73) was one of the sector's biggest disappointments, plunging nearly 2.0% after cutting its Q1 profit forecasts.

One bright spot that played into our Overweight rating on Tech, though, was Micron Technology (MU 13.94 +0.45). The stock surged 3.3% after first quarter profits tripled, but was unable to offer much support for the rest of the semiconductor space. Red Hat (RHT 22.46 +4.50) also soared (+25%) after beating Wall Street forecasts and issuing upside Q4 guidance; but since its Linux platform rivals Windows, Dow component Microsoft (MSFT 29.64 -0.34) tumbled 1.1% at the expense of Red Hat's victory lap.

Energy was another constraint on the broader market as a pullback in oil prices prompted another round of consolidation in one of this year's best performers. Thus, the absence of leadership from the biggest contributor to earnings growth on the S&P 500 over the last several quarters overshadowed the diminished inflationary potential of lower energy prices and simply acted as another headwind for buyers.

A report at 10:00 ET showing sentiment strengthened slightly over the last couple of weeks offered some solace when it was released. But the study compiled by the University of Michigan checking in stronger than expected merely provided bond traders with more fodder to lock in recent gains as well. As a result, a sell-off in Treasuries lifting bond yields across the curve weighed heavily on the rate-sensitive Financials sector, leaving the bulls waiting until after the holidays to try to finish the rally they started five months ago. The 10-year note tumbled 19 ticks, lifting the yield to 4.62% and sparking valuation concerns in stocks across the board. BTK +0.4% DJ30 -78.03 DJTA -0.7% DJUA -0.2% DOT -0.7% NASDAQ -14.67 NQ100 -1.0% R2K -0.3% SOX -0.6% SP400 -0.4% SP500 -7.54 XOI -1.2% NASDAQ Dec/Adv/Vol 1709/1312/1.32 bln NYSE Dec/Adv/Vol 1966/1240/942 mln

3:30 pm : Stocks appear to be making a last-ditch effort to show the bears who's been in charge of this market all year long, especially since the market bottomed out in mid July. Most noticeably has been a turnaround in Consumer Discretionary, led by Computer & Electronics Retail (+1.6%), Department Stores (+1.0%) and Leisure Products (+0.8%) -- three of today's best performing S&P industry groups. However, if history is any indicator, recent recovery efforts will likely fall short of an overall turnaround since the last trading day before Christmas has finished to the downside in each of the last four years, according to The Stock Traders Almanac. On a positive note, the days after Christmas often produce a rally and, given the current tone in the market, it would be hard to bet against that from happening this year. DJ30 -52.72 NASDAQ -9.21 SP500 -4.87 NASDAQ Dec/Adv/Vol 1658/1333/1.11 bln NYSE Dec/Adv/Vol 1956/1252/792 mln

3:00 pm : The indices continue to trade sideways well below the flat line as the absence of any upside leadership continues to weigh on the proceedings. The market's holding pattern has been further evidenced in the A/D line, as decliners maintain the nearly 2-to-1 edge they have had over advancers for the last three hours. The same goes for the decliners on the Nasdaq, which have held a 4-to-3 advantage over advancers all afternoon to give buyers little hope of doing much in the way of last-minute bargain hunting. DJ30 -61.13 NASDAQ -10.43 SP500 -5.64 NASDAQ Dec/Adv/Vol 1688/1275/1.04 bln NYSE Dec/Adv/Vol 2010/1172/732 mln

Merry Christmas to all the Marketeers and Lurkers, too!

[54anickel]

32. Oh how I love the 3:30 blather!!! Keep "the faith" sort of message in

that one. Of course it will most likely be up, low volume days are the easiest to manipulate, and they certainly don't want the other almanac wives tale that's been all the talk lately to take hold of investor's mentality. "The one about how a down at the end of the year leads to recession in the following year."

I'm betting on a pump for the new year - but it's just a guess. :shrug:

Have a great Christmas everyone!!! :hi:

Hoping to be able to make it back a bit more regularly after the new year. Miss ya all terribly. :grouphug:

[Ghost Dog]

35. Deja Vu All Over Again?

http://www.blah3.com/article.php?story=20061222170749282

In a recent Russell Investment Group survey of 87 money managers, 86% said they expected stocks to rise in 2007, and just 12% said they expected the market to fall. Nearly a third expects stocks to rise 10% or more, while only 1% expects a 10% decline. "Underpinning managers' confidence is a growing conviction the Federal Reserve Board has achieved a soft landing for the U.S. economy," wrote Russell chief portfolio strategist Randy Lert.

I've seen on both CNBC and BloombergTV recently that 12 of 12 major wirehouse strategists are bullish on the stock market for 2007:

Dec. 18 (Bloomberg) -- Strategists at 12 of the biggest Wall Street firms agree that U.S. stocks will rally next year.

Unfortunately, the next sentence sums up the results of that kind of consensus:

The last year that happened was for 2001, when the Standard & Poor's 500 Index dropped 13 percent.

...

We are seeing a virtual rerun in terms of the rhetoric. Bulls vastly outnumber bears right now. It might be prudent to consider the contrarian point of view.

/... :+

[54anickel]

38. My guess is that 07 is gonna look a lot like 02 - but what do I know.

I still can't understand what's been holding the markets and the buck up this past year outside of an abundance of liquidity looking for a home. :shrug:

Happy Holidays GD! :hi:

Edit to add this piece from R Russell, mainly cuz I like this one-liner - "If a meteor was to smash into the earth, Wall Street would be bidding for the hole."

http://www.321gold.com/editorials/russell/russell122306.html

[hamerfan]

31. I love reading this section!

Thank you ozymandius and others for this service. Granted, I don't understand 75% of it, but since I have a 403(b), I expect a lot of this affects me. I do understand it won't be good for Iran, Venezuela (and possibly others) switching to the Euro for petroleum buying/selling. Ouch. China dumping our dollars would sure hurt too. Seeing if the Dow/Nasdaq is up or down for the day, that's about the extent of my financial expertise. So thanks again to all for posting all this info. Someday I will figure it out. Happy Holidays!!
dumpbush

[Ghost Dog]

34. U.S. Stocks Fall on Slumping Factory Demand; Alcoa Retreats

http://www.bloomberg.com/apps/news?pid=20601087&sid=ajWVbPtbE4g4&refer=worldwide

Dec. 22 (Bloomberg) -- U.S. stocks had their biggest decline of the month and their worst week since July after the latest report on American manufacturing prompted concern the economy is slowing.

The market dropped for a third day after the government said durable goods orders excluding transportation equipment fell more than economists forecast. Trading on the New York Stock Exchange was the slowest this year as investors left for the Christmas Day holiday, when markets will be closed.

Alcoa Inc., the world's biggest aluminum producer, and Freeport-McMoRan Copper & Gold Inc. paced a retreat for raw- material stocks on concern factories may reduce output. Boeing Co. and Intel Corp. led the Dow Jones Industrial Average lower.

``Mainstream industrial America, which has been humming along at a good clip, is finally starting to slow,'' said Dan Bandi, who oversees $2.5 billion as chief investment officer at Integrity Asset Management in Independence, Ohio. ``That has spooked some investors.''

The Standard & Poor's 500 Index ended the week down 1.1 percent, the biggest five-day decline since July, on concerns a slowdown in manufacturing signals businesses are cutting production. The index lost 7.54, or 0.5 percent, to 1410.76 today.

The Dow average lost 78.03, or 0.6 percent, to 12,343.22. The three-day losing streak for both averages is the longest since Nov. 3. The Nasdaq Composite Index slid 14.67, or 0.6 percent, to 2401.18, falling for a fifth day, the worst streak since June.

/...

[citizen snips]

33. Market Spotlight-Video Game Developers

NEW YORK (AP) -- The stocks of video game software makers tend to share the cyclical ups and downs of the sector as a group. But, like the games they develop, their shares have some aficionados and detractors.

Analysts have mixed recommendations on shares of Electronic Arts Inc., Activision Inc., THQ Inc. and industry bad boy Take-Two Interactive Software Inc., the four largest video game developers.

Investors and analysts have lately been more encouraged by the prospects of THQ and Activision, while sector leader EA's shares have pulled back from recent highs -- the stock is down nearly 13 percent since Nov. 22 -- and Take-Two continues to be plagued by legal and accounting troubles.

Bank of America analyst Michael Savner, who follows the leisure sector, said in a Wednesday note to investors he remains concerned about the performance of certain front-line titles (such as "Superman Returns") from Electronic Arts, even as he expects the company to benefit from strong sales of PlayStation 2 games this holiday season. He has a "Neutral" rating on EA and Take-Two, while he recommends buying the other two companies' shares.

more...
http://biz.yahoo.com/ap/061222/market_spotlight_video_games.html?.v=1

[Ghost Dog]

36. Lockheed, Boeing score defense pacts

http://money.cnn.com/2006/12/22/news/companies/boeing_lockheed.reut/index.htm?postversion=2006122218
Boeing inks $1.1 billion contract to build Chinook helicopters; Lockheed to make modification kits.
December 22 2006: 6:17 PM EST

WASHINGTON (Reuters) -- The Army said Friday it had awarded Boeing Co. a $650 million contract to rebuild Chinook helicopters and another $406 million to build new ones.

The contracts for the heavy-lifting helicopters, which are usually used to carry troops and resupply battlefields, were awarded to Boeing (Charts) Dec. 19 and announced Friday on the Department of Defense Web site.
Video More video
CNN's Valerie Morris reports on a favorable court decision for Exxon and other business news. (December 22)
Play video

Also announced Friday, Lockheed Martin Corp. (Charts) won a $635 million contract to manufacture 216 modification kits for various aircraft for the Turkish Air Force, the Air Force said.

The work is scheduled to be completed by 2016 and funds have already been obligated, the service said of the modified contract. Negotiations were completed in November, the Air Force said in its announcement on the Department of Defense Web site.

/.

[Kenergy]

37. Ozy-

I got a 'D' in economics in school, so I don't understand a damned thing about the stock market, but I regularly check
your post to try and glean some info about what's going on with the economy...
And I appreciate you posting gold and silver prices as I own some of
those commodities, but in short, I just wanted to thank you for your thread, and I hope you and yours
have a great holiday!

Ken

Also, I like the cartoons!