STOCK MARKET WATCH, Tuesday December 26

[ozymandius]

Tuesday December 26, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 755 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2191 DAYS
WHERE'S OSAMA BIN-LADEN? 1896 DAYS
DAYS SINCE ENRON COLLAPSE = 1857
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 22, 2006

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%)
Gold future... 622.30 +0.70 (+0.11%)
30-Year Bond 4.76% +0.07 (+1.53%)
10-Yr Bond... 4.62% +0.08 (+1.65%)






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. I hope everyone had a restful holiday weekend.

For all those who expressed their warm sentiments on Friday - thank you. :grouphug:

It was a quiet weekend for the Ozymandius household. The adults in our small extended family have agreed not to gift each other. Only the children - all three of them - receive gifts. So I cannot say that we did very much to bolster the economy this year.

...and good morning... :donut: :donut: :donut:

[nitpicker]

4. Kind of business-related

http://news.bbc.co.uk/2/hi/africa/6209845.stm

Lagos pipeline blast kills scores

At least 200 people have been killed in an oil pipeline explosion in Nigeria's commercial capital, Lagos, the Red Cross says.
It is feared the death toll could be much higher.

Officials said the blast in the Abule Egba area happened as hundreds of people were scooping fuel from a pipeline punctured by thieves.

Some 2,000 people have died in similar incidents in the past decade, including 150 last May in Lagos.

(snip)

[ozymandius]

6. That headline shouted at me too.

We had a headbump of sorts reaching for that story.

:hi:

[ozymandius]

2. WrapUp by Tim W. Wood

Me: Well, whaddayaknow! Here's a Tim Wood commentary that makes a kernel of sense to me for a moment.

THE DOW REPORT
Don't Worry, Be Happy!

The market escaped the fall decline, the summer rally has stretched right over into the Santa Claus rally, we are now in the “best six months of the year” for the stock market. The Wall Street analysts are all rapidly bullish and the market is at new highs. So, why worry?

The advance out of the 2002 low has created an environment in which there is basically no fear in the market place whatsoever. Yes, I know the arguments as to why. I guess the number one reason I hear is that we are now in a new paradigm and that the markets are perfectly controlled by the invisible hand. I will admit that I have been surprised by the market's resilience. I will also admit that I do believe in market manipulation, but I do not believe that such manipulation can continue indefinitely or that “they” have perfect control of the market. I do believe that “they” have a great interest in trying to control the markets on an ongoing basis. But, at some point I believe that the weight of the market will become great enough that whatever the degree of control over the market really exists will be lost.

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

[Roland99]

16. Well, everything changed after 9/11!

:sarcasm:

[ozymandius]

21. Right. Your rights are not inalienable. Your money is 'fungible'.

[ozymandius]

3. Oil rises to near $63 as Iran bristles at sanctions

LONDON (Reuters) - Oil rose to around $63 a barrel on Tuesday after Iran warned it could use its oil exports as a weapon following the U.N. Security Council's decision to impose sanctions on its trade in nuclear goods.

News Abu Dhabi was set to be the first to implement a new round of
OPEC supply cuts added to the gains that followed two days of losses.

U.S. crude climbed 54 cents to $62.95 a barrel by 1221 GMT. Brent crude jumped 66 cents to $63.08.

Public holidays across Europe meant trading volumes were very thin.

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

[ozymandius]

5. Nigerian pipeline explosion kills 200

LAGOS, Nigeria - At least 200 people were killed Tuesday when a pipeline carrying petroleum products exploded in Nigeria's biggest city of Lagos, a Red Cross official said. The death toll was expected to rise.

http://news.yahoo.com/s/ap/20061226/ap_on_re_af/nigeria_pipeline_explosion_4

..very short..

[ozymandius]

23. Up to 500 killed in Lagos fuel blast

LAGOS (Reuters) - Up to 500 people were burnt alive on Tuesday when fuel from a vandalised pipeline exploded in Nigeria's largest city, Lagos, emergency workers said.

Hundreds of residents of the Abule Egba district went to scoop fuel using plastic containers after thieves punctured the pipeline overnight.

"We are talking hundreds (dead). We are yet to confirm the death toll so we don't know if it is 300, 400 or 500," Red Cross secretary-general Abiodun Orebiyi said, adding that 60 people had been evacuated to hospital with serious burns.

http://today.reuters.co.uk/news/articlenews.aspx?type=UKNews1&storyID=2006-12-26T130520Z_01_L26344713_RTRUKOC_0_UK-NIGERIA-FIRE.xml

[ozymandius]

7. Incentives on Oil Barely Help U.S., Study Suggests

WASHINGTON, Dec. 21 — The United States offers some of the most lucrative incentives in the world to companies that drill for oil in publicly owned coastal waters, but a newly released study suggests that the government is getting very little for its money.

The study, which the Interior Department refused to release for more than a year, estimates that current inducements could allow drilling companies in the Gulf of Mexico to escape tens of billions of dollars in royalties that they would otherwise pay the government for oil and gas produced in areas that belong to American taxpayers.

But the study predicts that the inducements would cause only a tiny increase in production even if they were offered without some of the limitations now in place.

-cut-

“They are giving up a lot of money and not getting much in return,” said Robert A. Speir, a former analyst at the Energy Department who worked on the report. “If they took that money, they could buy a whole lot more oil with it on the open market.”

registration required

[nitpicker]

8. Europe catches Wall Street's sniffles

Early market data shows most European bourses falling in sympathy with Wall Street's Friday swoon:

http://newsvote.bbc.co.uk/2/shared/fds/hi/business/market_data/overview/default.stm

[ozymandius]

9. Retailers slashing prices even more

NEW YORK - The nation's retailers were ushering in the post-Christmas shopping season by slashing prices even more on holiday items and stocking up on fresh new merchandise.

With the 2006 pre-Christmas season turning out to be challenging, the nation's merchants are hoping that shoppers, armed with gift cards, will spend freely, snapping up discounted items as well as picking up full-priced merchandise, to boost business in December and in the fourth-quarter.

Federated Department Stores Inc.'s Macy's was set to open its doors at 7 a.m. , offering discounts ranging from 50 percent to 75 percent. Toys "R" Us Inc. is offering 50 percent discounts on selected toys. The toy seller is also showcasing hot toys from 2007 in its stores.

Merchants "are going to use all 31 days in December," said Marshal Cohen, chief analyst at NPD Group Inc., a market research company in Port Washington, N.Y.

http://news.yahoo.com/s/ap/20061226/ap_on_bi_ge/post_christmas_shopping

[Maeve]

12. Hubby headed out in hopes of snagging a $200 laptop

And the rest of the family will be doing some bargain-hunting today, as well. But there ain't no way we're buying anything at full-price! :rofl:

All the best of the season and then some, Marketeers!:toast:

[ozymandius]

15. Thanks Maeve! Good luck to your DH on his search.

What kind of laptop is he seeking at $200? I know that he is wise about computers. It just makes me wonder what an expert can get for 200 bucks these days. I'm looking myself and $200 sounds wonderful.

:hi:

[Lucky Luciano]

24. It cannot be a great laptop, but I know a lot of experts take a great deal

of pride in being able to do a ton with a less powerful cheap computer.

[Maeve]

31. It was an Acer--normally $500

The last guy to get one was in line since 1:30 am (store opened at 8) maybe 200 people in line (at least one since yesterday afternoon! Sheesh...life's too short to spend a whole Christmas in line!!) But he got a monitor for about half price that he can re-sell

...and vows never to do that sort of thing again.

Added--yeah, it wasn't a great computer, but it would have done for youngest daughter.

[Roland99]

18. Kohl's had winter coats at up to 60% off. It's been so warm here.

I picked up a real nice, brand name wool coat for $90.

[Lucky Luciano]

25. I am in NYC...

This December had to have set a record for the number of 60 degree + days. It is pretty crazy. It feels like mid-October here instead of December!

[Roland99]

29. My sister lives up in RI. They've had hardly any snow so far this year.

[Lucky Luciano]

32. I'll even one up ypu!

My mother lives in Northern Massachusetts...we took a little drive yesterday as we often like to do. We like to explore. We made it up to Hanover, New Hampshire where Dartmouth is. No snow on the ground!!!! That is as odd as it gets - though I heard that they may be getting some today. Nevertheless, that is almost unheard of!

[ozymandius]

26. Did you see this?

Unusual warm weather hits sales of winter wear

NEW YORK: Retailers are calling it the Coat Crisis of 2006, a fashion fiasco measured in racks of unsold fur-lined shearlings at Saks Fifth Avenue in New York and hooded wool peacoats at the Galeries Lafayette department store in Paris.

Balmy temperatures on the East Coast of the United States and in Western Europe have been disastrous for sales of all kinds of cold-weather clothing, from cashmere caps to wool scarves.

What seemed like a meteorological aberration — the coatless, hatless, gloveless morning commute in Washington, New York, Boston and Paris — is starting to feel like the new normal, encouraging consumers to splurge on a flat-screen television instead of cold- weather garments.

The glut of winter wear has sent a chill through the executive suites of major retailers, who count on big profits from coats in the crucial holiday shopping season.

They are even starting to grumble about the first "global warming Christmas."

http://www.iht.com/articles/2006/12/25/business/warm.php

[Roland99]

30. Yeah, saw that. "Global warming Christmas"

Well, old man winter will eventually show up, I'm sure.

But, the first inhabited island was completely inundated (somewhere off the Indian coast) so global warming is truly here.

[ozymandius]

10. Japan keeps view that economy is recovering

TOKYO (Reuters) - The Japanese government kept its assessment of the economy unchanged in a monthly report on Monday, after downgrading it for the first time in almost two years last month.

"The economy is recovering, although there is some weakness in consumption," the Cabinet Office said in its December report.

Weak consumption -- which has cast some doubts over the strength of the economy's recovery in recent months -- had been added to the assessment of the economy last month when the government downgraded it for the first time since December 2004.

The December report described personal consumption as "generally flat" -- the same description used last month -- citing sluggishness in the pace of rises in employees' income.

http://news.yahoo.com/s/nm/20061225/bs_nm/japan_economy_report_dc

[ozymandius]

11. Sluggish consumption slows Japan economy

TOKYO - The Japanese government kept its assessment of the economy unchanged on Monday, saying sluggish consumption was hurting the country's economic recovery, as the central bank's governor remained cautious about an early interest rate hike.

Rising production and capital investment propelled the world's second-largest economy to a record 59th consecutive month of recovery — nearly five years — since January 2002, according to a Cabinet Office report released Monday.

But the report, which looks at a variety of economic factors besides gross domestic product, warned of weakness in consumer spending, saying sluggish growth in wages was keeping spending flat.

Domestic demand, which accounts for more than half the economy, undercut growth in the July-September quarter, forcing the government to downgrade its economic outlook earlier this month.

http://news.yahoo.com/s/ap/20061225/ap_on_bi_ge/japan_economy

[UpInArms]

13. daily dollar watch

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

Last trade 83.82 Change -0.06 (-0.07%)

Greenback on Shaky Ground

http://www.dailyfx.com/story/strategy_pieces/trade_or_fade/Greenback_on_Shaky_Ground_1167117908065.html

The combination of a record high US current account deficit along with further signs of a weakening housing market triggered a dollar sell off early in the week with EUR/USD peaking at 1.3247. The current account balance ballooned to -$225.6 billion in Q3, which was slightly worse than the market expected and represents 6.7% of GDP. However after the previous week’s surprise drop in the trade deficit and rise in net foreign purchases of US securities, the significance of the current account deficit’s widening is eroded. Meanwhile, both the NAHB housing market index and building permits hit the tape at disappointing levels, negating some of the optimism that the fallout of the housing market had hit a bottom. Furthermore, the final reading of Q3 GDP was revised lower to 2.0%, while personal spending and the Philly Fed survey both missed expectations, pointing to substantial weakening in multiple sectors of the economy.

However, greenback longs stuck around the markets, remaining bullish on the surprise jump on Tuesday in the producer price index of 2.0% for the month along with a 1.3% monthly gain in core prices. On both a headline and a core level, prices grew by multi-decade highs, which raised the concern of whether consumer prices may follow suit next month. A better than expected reading in the University of Michigan consumer confident report at the end of the week sent EUR/USD bears in action, as the dollar was able to make back most its losses by the close of the New York session on Friday.

With many markets on holiday this week and US economic data decidedly mixed, the greenback will likely remain at a standstill. On Tuesday, traders will be looking towards the Richmond Fed reading for confirmation of the most recent disappointing Philly Fed report. Another paltry reading will keep expectations for Chicago PMI on Thursday at a relatively low level. Additionally, with housing data and consumer confidence anticipated to fall, the US dollar will have little ground to stand on when traders flood back into the markets after the New Year and allows major upside potential for the EUR/USD pair after the holidays.



...more...

Jump in Bond Yield Sends Dollar Higher

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Jump_in_Bond_Yield_Sends_1166826150017.html

US Dollar

The US dollar broke higher today after the University of Michigan consumer confidence report came out stronger than expected and bond yields skyrocketed. Although the UMich report may have partially contributed to the rise in yields, the size of the move in yields (which was big) compared to the size of the surprise in the confidence report (which was small) suggests that most of the move was related to pre-holiday profit taking. Ten year bond yields have increased by 7bp to 4.62 percent. Aside from the confidence report, most of the other economic data released this morning was dollar negative. Personal income grew by 0.3 percent in the month of November while personal spending grew by 0.6 percent, both of which were softer than expected. The core PCE deflator, which is the Fed’s preferred inflation measure was flat, indicating subdued inflation pressures. Durable goods increased more than expected on a headline level (1.9 percent), but excluding transportation, orders actually dropped by 1.1 percent. The strength in the headline number came predominately from orders for commercial aircraft and military equipment. Beneath the surface, spending for items made to last longer than 3 years is lackluster at best. Aside from inflation, most of economic data that was released this past week has been dollar negative, yet the dollar has held on strong because with inflation still at lofty levels, the Federal Reserve does not have a compelling enough reason yet to consider lowering interest rates. Markets around the world are closed on Monday for Christmas with many countries remaining closed on Tuesday as well. There is no US economic data due for release until Wednesday.

...more...

[ozymandius]

27. I wonder if this will impact the trend to import common goods.

When I was in art school, it came as a shock to learn the paper that cost me $5 per sheet, made in France and Italy, was manufactured with cotton grown in Georgia and South Carolina. It makes me wonder what the cost would have been without the overseas travel, etc.

[burf]

34. Good morning UpInArms and Ozy.

I enjoy reading your posts. I have a question for either (or both) of you regarding the dollar.

Recently, my BIL (a Bushie through and through) and I were talking about the economy. I stated I thought the middle class was not doing so good. I mentioned the fundamentals deficit spending, and the number of foreclosures and the like. He said his business (he's a headhunter and dang good at it) was booming. The topic turned to the dollar and he was telling me the dollar is doing good. "Its the Chinese that are at fault" was his story with their tying their currency to ours. I mentioned to him the dollar was at a 17 year low and he just blew it off with "Business is good" .

Any way for today's dumb question: I know that until 1973 the US used the gold standard for our currency. What happened to all the gold? Do we still have reserves?

Sorry for being so ignorant on the subject. But I would like to know. What the heck is backing our currency other than "the full faith and credit of the United States"? I read something the other day on how the US is basically insolvent. I would appreciate an answer and thank you in advance.

[UpInArms]

38. hi burf and I'll attempt to answer your question

the dollar is in a very precarious position - in so many ways - in 1987, the Japanese sold the dollar off and precipitated the '87 crash of the markets. Right now we have the same scenario going on but the likely candidate is the Chinese markets. Those holders of the dollar are "damned if they do and damned if they don't" continue their holdings. If they continue to hold, they can continue to expect a devaluation in their assets. If they decide to sell, they will devalue their own holdings. ???

What's a girl to do???

Anyway, you can read what is available to you via a google search of boj intervention (boj=bank of japan) and see where our "51st state" continues to prop of the failing dollar because they are

a) terrified
b) corrupt
c) both a and b

or you can read what is available to you via a google search of china yuan reminbi dollar (which will tell you that there is a problem with "protectionism") and more fear.

Wish I knew what the next chapter in this saga will yield, but I dropped my crystal ball yesterday and the floor is a mess.

take care and hope you have a great new year (2007 can't be any worse than the last one, can it?)

:hi:

[54anickel]

40. Ewww, wish you wouldn't have said that...cuz just when you think things

can't get any worse....Kaa-BLAM!!!!

2007 can't be any worse than the last one, can it?

[ozymandius]

14. Futures inch up, oil's rise may boost energy stocks

NEW YORK (Reuters) - U.S. stock futures inched up on Tuesday, pointing to a slightly higher market open, as investors expected a jump in oil prices to help energy stocks gain ground in a light trading day.

Shares of retail stocks were in focus after a report from Spendingpulse showed holiday sales rose by only 3 percent this year, compared with last year's 5.2 percent growth. For details, see ID:nN26340690

Investors were also waiting for the Federal Reserve Bank of Richmond to release its December indexes on area manufacturing and service sectors after soft economic reports sparked a stock sell-off last week. The report is due at 10 a.m. (1500 GMT).

-cut-

Standard & Poor's 500 futures SPc1> were up 0.8 point, just above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures DJc1> were unchanged, and Nasdaq 100 NDc1> futures were up 0.8 point.

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

[Lucky Luciano]

17. I'm bored to tears here!

Usually, I have 30 pages of Bloomberg emails by now - today, only 3 pages so far....how about we wrap it up and go home?

[ozymandius]

19. Many are on vacation all week.

For me - I plan to stick around for awhile. This time of year is interesting because the regular traders have left the store to the newbies. It's often fun to see what happens when the young and inexperienced are left to mind the store. It's a bit like watching what would happen if Christmas came every day.

[Lucky Luciano]

22. Yes....our desk has 20+

people on a normal day...today, there are 5 of us!

It can get strange with newbies around...small stocks with tight floats have been known to move violently for no reason. In my sapce, transaction costs are too high to trade today. I trade some OTC stuff and the bid/offer spreads are wayyyy too wide to do anything. I am twiddling my thumbs just making sure nothing blows up!

[nitpicker]

20. US consumer spending posts rise

http://news.bbc.co.uk/2/hi/business/6204491.stmUS consumer spending recorded its biggest increase since July last month, Commerce Department figures show.
Spending rose 0.5% in November after an increase of 0.3% a month earlier.

Another report from the University of Michigan also showed consumer confidence remained near year highs at 91.7 despite a slight fall in December.

Analysts said the reports could provide further encouragement to policy makers which may mean a cut in interest rates.

Consumer spending accounts for two thirds of US gross domestic product, and is seen as a crucial barometer of economic health.

Further data from the Commerce Department also offered hope for the economy on the manufacturing front, as producers reported a rebound in demand for big ticket goods.

Factory orders for high-priced goods such as big electrical items like washing machines rose 1.9% in November, after sinking 8.2% a month earlier.

Rates hope

The reports also offered more positive data to the Federal Reserve as they revealed core consumer prices - which strip out volatile energy and food costs - were steady last month after rising 0.2% in October.

Fed officials have previously voiced concern about the uncomfortably high levels of US inflation.

"The inflation readings show contained inflation expectations, as the Fed has been hoping for," said Pierre Ellis, senior economist at Decision Economics.

As a result, analysts now suggest that the Fed could opt to cut rates from current record highs of 5.25% within the next six months.

Concerns over the health of the US economy have been mounting in recent months amid weak manufacturing activity, a housing market slowdown and a drop in consumer spending as energy prices hit record highs.

[ozymandius]

28. pre-open blather

09:15 am : S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: -2.5.

09:00 am : S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: -2.3. The stage remains set for the cash market to open on a cautious note. While retailers will be among today's most active stocks, amid expectations that additional discounts will be announced this week to help them lock in gift card sales, reports that Microsoft (MSFT) is finding potentially serious flaws with Vista is keeping the influential Tech sector in focus as well.

08:30 am : S&P futures vs fair value: -0.2. Nasdaq futures vs fair value: -2.5. The futures market is still languishing below fair value, suggesting Friday's losses will carry over into today's open and kick off a holiday-shortened week with an added sense of uncertainty. As a reminder, the S&P 500 fell 1.1% last week, the biggest five-day decline since July, amid concerns about slowing economic growth. Thus, the absence of potentially upbeat earnings and economic data to set a more positive underlying tone is also acting as a constraint in the early going.

[nitpicker]

33. More premarket mutterings

http://money.cnn.com/2006/12/26/markets/stockswatch2/index.htmJingle bells versus oil wells
Futures mixed as reports of strong holiday shopping season balance spike in oil from worsening Iranian nuclear dispute.
December 26 2006: 7:14 AM EST


NEW YORK (CNNMoney.com) -- The continued dispute with Iran pushed oil prices higher and could give stocks a rough start to the final week of the year, although they could get a boost from reports of a strong end to the holiday shopping season.

Stock futures were narrowly higher in early trading, although a comparison to fair value, which predicts the direction of stocks at the open, pointed to a mixed start to the trading day. Light trading volumes in stocks during the holiday week could lead to volatile markets.


Oil prices rose early Tuesday after Iran stepped up threats in the wake of U.N. Security Council sanctions on Saturday due to its nuclear program.

U.S. light, sweet crude climbed 61 cents to $63.02 a barrel in electronic trade. Brent crude jumped 67 cents to $63.09 a barrel.

But market research firm Shoppertrak said Monday that its initial estimates indicate that sales this past Saturday totaled $8.72 billion, just short of Black Friday's strong sales of $8.96 billion.

Industry watchers said retailers this week will focus in capturing crucial post-Christmas sales. For instance, Sears (Charts) on Tuesday is giving shoppers special "cash-back" offers on home appliances.

Treasury prices edged higher early Tuesday, with the yield on the 10-year note slipping to 4.61 percent from 4.62 percent on Friday.

The dollar was little changed versus the euro and the yen.

There was limited corporate news early Tuesday. Computer security researchers and hackers have found more flaws in Microsoft's (Charts) Vista, the long-awaited update to the Windows operating system, according to a report in Monday's New York Times.

(snip)
Markets that were open closed mostly higher in Asia, but some markets were closed there for Boxing Day, the holiday that follows Christmas.

(snip)

[Roland99]

35. 1:54pm - Ho Ho Ho. All is well!

DJIA 12,392.97 +49.75 +0.40%
Nasdaq 2,410.77 +9.59 +0.40%
S&P 500 1,415.92 +5.16 +0.37%
Dow Util 457.96 +2.58 +0.57%
NYSE 9,094.41 +32.28 +0.36%
AMEX 2,040.39 +5.72 +0.28%
Russell 2000 787.13 +6.31 +0.81%
Semcond 466.50 +2.83 +0.61%
Gold future 627.30 +5.00 +0.80%
30-Year Bond 4.74% -0.02 -0.40%
10-Year Bond 4.61% -0.01 -0.28%

[citizen snips]

36. Stocks End Higher, Lifted by Lower Oil

NEW YORK (AP) -- Wall Street rebounded in light post-holiday trading Tuesday as lower oil prices encouraged investors to add to their portfolios in the final days of the year.

Buyers came into the market after major indexes retreated last week with three straight down sessions. However, stocks were range-bound because of thin volume after the Christmas holiday and in the absence of major economic reports.

Oil's slide lent support for the stock markets as investors brushed off concerns about Iran's reaction to United Nation's sanctions over its nuclear program. With crude hovering near $61 a barrel, the prospect of lower gasoline prices was seen propping up consumer spending.

more...
http://biz.yahoo.com/ap/061226/wall_street.html?.v=34

[UpInArms]

37. here are the numbers and the "snapping" blather

Dow 12,407.63 64.41 (0.52%)
Nasdaq 2,413.51 12.33 (0.51%)
S&P 500 1,416.90 6.14 (0.44%)
10-Yr Bond 4.603% 0.021

NYSE Volume 1,310,306,000
Nasdaq Volume 1,064,215,000

Stocks snapped a three-day losing streak Tuesday, as oil's biggest one-day drop in six weeks and more evidence of a possible Fed easing in early 2007 helped investors returning from the long holiday weekend to get buying efforts back on track.

With the S&P 500 and Nasdaq consolidating last week to the tune of 1.1% and 2.3%, respectively, it wasn't surprising to see the return of some bargain-hunting interest. Be that as it may, there was little conviction on the part of buyers since today also marked the quietest session of the year in terms of volume.

Also, with the Fed recently saying that some inflation risks remain, and since high oil prices still have the potential to sustain inflation pressures, a 2.1% pullback in the commodity was welcome news for the market. After surging more than 1.0% in early trading, amid concerns Iran would use oil as a "weapon" after the U.N. said it will impose sanctions on Iran for not ending its nuclear program, skepticism that Iran would actually curtail oil shipments led to a $2 reversal in crude. A nearly 8% decline in natural-gas futures, amid continued forecasts of above-average temperatures diminishing the demand for heating oil, also took a toll on crude prices.

Not only did the Energy sector's resilience in the face of oil's sell-off speak to the underlying bullish tone that has helped lift stocks virtually unabated for five months; but oil's pullback provided some reassurance for the number of consumers expected to run out in droves this week to take advantage of post-holiday discounts and redeem gift cards.

The National Retail Federation expects sales during November and December to rise 5% to $457 bln, which is lower than last year's 6.1% increase for the same period. However, the N.R.F. also said it believes gift card sales will total nearly $25 bln this holiday season, which is $6 bln more than last year.

Meanwhile, a report compiled by MasterCard estimates only a 6.6% year/year rise in retail sales generated between Thanksgiving and Christmas, compared to an 8.7% rise at this point last year. However, with holiday spending falling short of expectations giving bond traders more of a reason to price in a potential interest rate cut, equity investors took more of a bullish cue from the modest rebound in Treasuries and subsequent decline in the cost of borrowing. Taking full advantage of renewed optimism about Fed policy was the rate-sensitive Financials sector, which turned in the day's second best performance.DJ30 +64.41 NASDAQ +12.33 SP500 +6.14 NASDAQ Dec/Adv/Vol 1156/1878/1.03 bln NYSE Dec/Adv/Vol 1034/2359/744 mln

3:30 pm : The indices are holding onto the bulk of their gains going into the close of trading. Among the majors, the Dow continues to lead the charge, both today and on the year. Even though large-cap stocks sport more attractive valuations and are well suited to withstand the specter of slower earnings growth, small-cap stocks are putting together an even stronger performance. The Russell 2000 is up 0.8%, extending its year-to-date advance to nearly 17%. The Dow is up 15.6% year to date.DJ30 +53.35 NASDAQ +8.57 SP500 +4.92 NASDAQ Dec/Adv/Vol 1209/1797/814 mln NYSE Dec/Adv/Vol 1140/2233/602 mln

3:00 pm : Stocks remain on the offensive, but the major indices are off their best levels. The Energy sector's inability to hold onto even the smallest of intraday gains is contributing to the modest pullback in the broader market from session highs. Oil prices recently closing down more than 2.2%, in sympathy with an 8% drubbing in natural gas futures, make it difficult for bargain hunters to keep chipping away at the Energy sector’s 2.3% sell-off last week. DJ30 +46.46 NASDAQ +7.34 SP500 +4.20 NASDAQ Dec/Adv/Vol 1216/1784/742 mln NYSE Dec/Adv/Vol 1099/2244/554 mln

2:30 pm : Buyers remain an active bunch as the indices are finding some support near their best levels of the session. With the Dow seeing red on all 30 of its components Friday, the first time for such widespread weakness since May 30, it hasn't been surprising to see some sort of a rebound in blue chips. Of the 27 components trading higher today, General Motors (GM 29.77 +0.35) and Walt Disney (DIS 34.57 +0.41) pace the way with gains of 1.2% while even Intel (INTC 20.17 +0.09), this year's worst performing Dow component (-18%), is providing some notable upside leadership. The stock is up nearly 20% from its mid-June low. DJ30 +52.95 NASDAQ +8.23 SOX +0.7% SP500 1415.82 NASDAQ Dec/Adv/Vol 1220/1763/692 mln NYSE Dec/Adv/Vol 1098/2226/512 mln

2:00 pm : After trading sideways most of the afternoon, the major averages have gotten an added boost of confidence within the last 15 minutes pertaining to the sustainability of this year's rally. The Energy sector recently turning positive, in the face of a 2.6% sell-off in crude oil futures ($60.79/bbl -$1.62), speaks to the underlying bullish tone that has helped lift stocks virtually unabated since bottoming out in July. Energy's year-to-date gain of 21.5% is only surpassed by a nearly 30% advance for the Telecom sector.DJ30 +49.30 NASDAQ +9.36 SP500 +5.21 NASDAQ Dec/Adv/Vol 1219/1742/636 mln NYSE Dec/Adv/Vol 1121/2171/464 mln

[54anickel]

39. WTF - Appeals court slashes damages payable by Exxon for oil spill

http://www.earthtimes.org/articles/show/16002.html

SAN FRANCISCO: A federal appeals court in the U.S. has further cut down the compensation that Exxon Mobile will be required to pay for the 1989 oil spill in Alaska. San Francisco's 9th Circuit Court of Appeals, in a ruling Friday, reduced the fine from an earlier $4.5 billion to $2.5 billion, saying the company's actions were not intentional and did not warrant the maximum financial penalty imposed by a lower court.

This is the third time that the damages have been brought down in one of the longest litigations. The company was first ordered to pay damages worth $5 billion.

In a 2-1 majority decision, the court said the prompt action initiated by the company in cleaning up the mess and in compensating fishermen and other affected by the spill, lowered the reprehensibility of its conduct. It said the substantial costs it had already borne in clean-up and loss of cargo lessen the need for deterrence in the future.

Exxon Mobil issued a statement saying it is studying the ruling. It said it believes the fine is too high as the plaintiffs were compensated for damages and most were paid within one year of the spill.

The ruling is based on a U.S. Supreme Court verdict in another suit in April 2003, which said punitive damages should be reasonable and proportionate to the harm that was suffered.

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