STOCK MARKET WATCH, Wednesday May 23

[ozymandius]

Source: DU

Wednesday May 23, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 607 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2331 DAYS
WHERE'S OSAMA BIN-LADEN? 2043 DAYS
DAYS SINCE ENRON COLLAPSE = 2004
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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

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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 May 22, 2007

Dow... 13,539.95 -2.93 (-0.02%)
Nasdaq... 2,588.02 +9.23 (+0.36%)
S&P 500... 1,524.12 -0.98 (-0.06%)
Gold future... 659.90 -3.90 (-0.59%)
30-Year Bond 4.98% +0.04 (+0.85%)
10-Yr Bond... 4.83% +0.04 (+0.90%)






GOLD, EURO, YEN, Loonie and Silver

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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

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Read more: DU

[Ghost Dog]

1. Asian Stocks Rise for 3rd Day; Mizuho Jumps on Profit Forecast

http://www.bloomberg.com/apps/news?pid=20601080&sid=aH6kuQsTRKsc&refer=asia

May 23 (Bloomberg) -- Asian stocks rose for a third day, led by Japanese banks after Mizuho Financial Group Inc. forecast record earnings.

Nintendo Co. led technology shares higher after saying U.S. sales of Wii video-game consoles may reach 35 million. Airline stocks gained on expectations Singapore Airlines Ltd. will buy a stake in China Eastern Airlines Corp.

Financial shares climbed the most among the 10 industry groups included in the Morgan Stanley Capital International Asia- Pacific Index. Mizuho, Japan's No. 2 lender, posted its biggest jump in more than a year.

``The banks are really standing out as their earnings have fostered some confidence,'' said Hideyuki Ookoshi, who oversees $365 million at Chiba-Gin Asset Management Co. in Tokyo.

The MSCI index rose 0.1 percent to 149.56 at 5.45 p.m. in Tokyo, 0.4 percent below the record close of 150.12 set May 9. China's CSI 300 Index climbed to a new high after a newspaper report damped speculation the government would increase fees on stock transactions.

Japan's Nikkei 225 Stock Average climbed 0.1 percent to 17,705.12. Other markets gained, except in Hong Kong, Malaysia, Thailand, India, Sri Lanka and the Philippines.

Financial and real-estate companies led most U.S. stocks higher for a third day after Treasury Secretary Henry Paulson said the slump in housing is ``largely'' over.

Bank Earnings

The Topix Banks Index jumped 3.8 percent today, the biggest advance among 33 industry groups.

Net income will climb 21 percent to 750 billion yen ($6.18 billion) in the financial year ending March 31, Mizuho said yesterday after the close of trading. That would be the biggest profit since Mizuho was formed in 2003.

Shares of Mizuho, Japan's No. 2 lender, surged 5.5 percent to 847,000 yen, set for the biggest advance since January 2006. It will also spend as much as 150 billion yen buying back shares and raise its full-year dividend by 43 percent.

/...

[Ghost Dog]

3. Japanese Stocks Climb; Dollar Up vs. Yen

http://asia.news.yahoo.com/070523/ap/d8pa01a80.html

Japanese stocks rose slightly Wednesday for a third straight session, led by bank shares.

The benchmark Nikkei 225 stock index rose 25.07 points, or 0.14 percent to finish at 17,705.12 on the Tokyo Stock Exchange. On Tuesday, the index added 0.7 percent.

Traders said the market is vulnerable to overseas factors, particularly a drop on Wall Street or signs of a slowdown in the U.S. economy, Japan's biggest export market.

"The Nikkei is still top-heavy at 17,500, so banks may be sold on dips if negative factors hit, such as a U.S. stocks fall overnight," said Yutaka Miura, manager at Shinko Securities.

Gainers included Shinsei Bank Ltd., which rose 2.35 percent to 524 yen ($4.30). Auto and machinery shares also advanced, with Mazda Motor Corp. climbing 2.01 percent to 661 yen ($5.42) and Fanuc Ltd. rising 0.18 percent to 11,240 yen ($92.13).

The broader Topix index, which includes all shares on the exchange's first section, added 8.54 points, or 0.49 percent, to 1,740.08 points.

/...

[Ghost Dog]

5. Europe shares set 6-1/2 year highs, telecoms shine

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070523:MTFH57749_2007-05-23_11-09-51_L23222620&type=comktNews&rpc=44

PARIS, May 23 (Reuters) - European shares climbed by midday on Wednesday to a new six-and-a-half-year high, led by telecom stocks including Deutsche Telekom (DTEGn.DE: Quote, Profile , Research) and Vodafone (VOD.L: Quote, Profile , Research) amid merger and acquisition talk.

The pan-European FTSEurofirst 300 index <.FTEU3> was up 0.7 percent at 1,608.13 points, a level last seen in December 2000. The benchmark index has gained 8.4 percent so far in 2007.

"This year, 'Sell in May and go away' is not going to happen," Commerzbank strategist Ralf Groenemeyer said.

"I still believe that a majority of investors has not fully invested in equities at the moment ... The market is ripe for a further upswing," he said.

Major national indexes in Britain, France and Germany were all on the rise, led by the DAX <.GDAXI>, up 0.8 percent. London's FTSE 100 .FTSE rose 0.4 percent, while France's CAC 40 <.FCHI> climbed 0.4 percent.

/...

Early posting because I have to go now. :hi:

[Ghost Dog]

20. Euro zone new industrial orders up in March

http://english.peopledaily.com.cn/200705/23/eng20070523_377309.html

Euro zone's new industrial orders enjoyed an increase of 2.7 percent in March compared with the previous month, estimated Eurostat, the statistical service of the European Union (EU), on Wednesday.

New Industrial orders fell by 0.6 percent in February and remained stable in January.

For the whole 27-member EU, new orders grew by 2.8 percent in March, after an increase of 0.1 percent in February and a decrease of 1.4 percent in January.

Excluding ships, railway and aerospace equipment, new industrial orders grew by 2.7 percent in the euro zone and by 2.5 percent in the whole EU in March.

In March 2007 compared with March 2006, new industrial orders increased by 8.0 percent in the euro zone and by 8.1 percent in the whole EU.

Total industry excluding ships, railway and aerospace equipment grew by 9.1 percent in the euro zone and by 9.6 percent in the whole EU.

In March 2007 compared with February 2007, new orders for textiles and textile products increased by 8.7 percent in the euro zone and by 6.3 percent in the whole EU.

Manufacturing of electrical and electronic equipment gained 8.3 percent and 5.0 percent respectively in the same period.

Machinery and equipment grew by 6.3 percent in the euro zone and by 4.3 percent in the whole EU. Transport equipment rose by 2.8 percent and 3.6 percent respectively. Basic metals and fabricated metal products increased by 1.2 percent in the euro zone and by 1.5 percent in the whole EU. Manufacturing of chemicals and chemical products rose by 0.6 percent and 0.8 percent respectively.

In March 2007 compared with March 2006, new orders for machinery and equipment grew by 16.4 percent in the euro zone and by 13.9 percent in the whole EU. Manufacturing of textiles and textile products increased by 13.6 percent and 11.8 percent respectively.

Basic metals and fabricated metal products gained 8.9 percent in the euro zone and 10.6 percent in the whole EU. Manufacturing of chemicals and chemical products rose by 6.7 percent and 6.6 percent respectively.

Electrical and electronic equipment grew by 6.4 percent in the euro zone and by 6.8 percent in the whole EU. Transport equipment increased by 5.8 percent and 7.5 percent respectively.

Source: Xinhua

[Ghost Dog]

35. Sarkozy backs economic govt for euro zone, but respects ECB independence

http://www.forbes.com/business/feeds/afx/2007/05/23/afx3751769.html

BRUSSELS (Thomson Financial) - French president Nicolas Sarkozy called for the euro zone to have an economic government, but stressed the need for the interest rate-setting European Central Bank (other-otc: CHPA.PK - news - people ) to retain its independence.

'We want the euro zone to have a real government that fosters employment and growth,' Sarkozy said after meeting with Verhofstadt during his first visit here since his election as president.

But he also told reporters later at a joint press conference with European Commission president Jose Manual Barroso that the ECB's independence must not 'be put in doubt'.

In the lead-up to the French presidential elections Sarkozy frequently criticised the central bank's focus on controlling euro zone growth, saying it should do more to foster growth.

/...

[Ghost Dog]

36. Strong run keeps bourses at 6.5 year highs

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7Bf0326c89%2Da643%2D4f7b%2D8d15%2D1aebc030c17b%7D

European equity markets reached fresh 6.5 year highs on Wednesday, helped by strength in the mobile telecoms, car and software sectors. The FTSE Eurofirst 300 rose 11 points, or 0.7 per cent, to 1,609.3 while Germany’s Xetra Dax gained 76 points, or 1 per cent, at 7,735.8 and the French CAC 40 added 30 points, or 0.5 per cent, at 6,120.2. Moeller Maersk was a leading gainer, up 4.7 per cent to DKr66,700, after Morgan Stanley said it expected to see a sustained recovery next year in the container shipping market. Menno Sanderse of Morgan Stanley said each 1 per cent increase in freight rates could contribute up to $200m in earnings and forecast DKr20bn for net profits this year for Moeller compared to the company’s own forecast of DKr17bn.

[Ghost Dog]

37. FTSE higher as utilities and telecoms stocks rise

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7Bfc5b127e%2D0807%2D4696%2Db11f%2D859b48a324b8%7D

London equities rose on Wednesday, with banking and telecoms stocks lending support. The FTSE 100 closed up 9 points, or 0.2 per cent, at 6,616.4 while the mid-cap FTSE 250 was 43 points, or 0.4 per cent, higher at 12,220.2. Vodafone jumped 3.6 per cent to 150.2p in heavy volumes amid fresh dealmaking speculation. While there were rumours that Verizon of the US was ready to bid for the rest of Verizon Wireless, the pair’s US joint venture, others put the rise in the shares down to hopes for Vodafone’s annual figures, due on Tuesday. Bid rumours also helped the water stocks amid speculation that Aguas Barcelona of Spain was eyeing a bid for Pennon, the owner of South West Water. Pennon gained 5.2 per cent to 691.5p while Kelda Group rose 2.9 per cent to 1001p.However, Tate & Lyle shed 6.2 per cent to trade at 591p despite a rise in profits as the sugar and sweetener maker said it expected any growth in operating profit at its sucralose division will be modest weighted to the second half.

[ozymandius]

2. Today's Market WrapUp

Tales of a Rolling Boulder
BY FRANK BARBERA, CMT

While Saturday Night Live has had its share of “hits” and “misses,” I often joke around with my family recalling a skit that was shown several years ago. At the time, it was one of those things that just got me laughing with a skit entitled, “Tales of a Rolling Boulder.” In this warped skit, totally innocent people would be standing or sitting around the most innocent places and then ‘Bang-O,’ they would get blindsided and run over by a rogue ‘rolling boulder.’ Very dark humor to be sure, perhaps even tasteless! But as with everything else in life, it was all in the presentation and the timing, and somehow it was inescapably funny. It also made a point about timing, as the unfortunate victims in the plot line were all in the “wrong place at the wrong time,” and hence ended up being squashed by the rolling boulder. So it is in the stock market, where overstaying ones welcome can be financially negative to your wealth, a bear market being the financial equivalent of the proverbial ‘Rolling Boulder.’

In my view, we are at that point in the stock market cycle where it is time to take ‘defensive action’ – where it is time to be some place where you won’t, or can’t, be hit by the rolling boulder. In the stock market, that “place” has a name, and it is called “cash.” In my view, this is the time to start raising cash in order to insure that you will not become a victim of the upcoming down cycle. While there are several groups that are unusually depressed, like Precious Metals and REITS, and that by default could have more of a near term bounce, overall most equity sectors are quite extended (overbought) and are becoming vulnerable.

-cut-

Getting back to the broad stock market, the current situation is recognizable as familiar territory, namely “the beginning of the end.” In the case of the S&P 500, probably the most important and widely watch US Equity market index, the near term hourly chart has volume of important information for us to digest. To begin with, note the 45 degree angle of the rising trendline connecting a number of the short term reaction lows seen during the advance post the mid-March lows. Notice also how the 200 hour rising moving average for the S&P is roughly paralleling the same 45 degree slope seen by the trendline. This tells us that the stock market still has an underpinning cushion of high upside momentum and that any near term decline should find initial support in the area of the rising moving average at 1485 to 1500. I spotlight this zone on the chart below with Point A. Note when we are talking about short term movements, there is a great deal of ‘wiggle’ room, and that it is not impossible for this market to overshoot to the downside wherein a decline as far as 1460 could still be seen.

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

[ozymandius]

4. Today's Report

10:30 AM Crude Inventories 05/18
Briefing Forecast NA
Market Expects NA
Prior 1061K

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

[ozymandius]

19. Oil falls as gasoline supplies build

Refineries also run at above 90 percent capacity after being hobbled for the last several weeks.

NEW YORK (CNNMoney.com) -- Oil prices fell Wednesday after the government said supplies of gasoline rose more than expected and that refineries ran at a higher rate.

U.S. light crude for July delivery fell 22 cents to $65.29 a barrel on the New York Mercantile Exchange. Oil prices were flat just prior to the report's release.

In its weekly inventory report, the Energy Information Administration said gasoline supplies, closely watched as the summer driving season gets underway and running low all year, rose by 1.5 million barrels. Analysts were looking for a gain of 1.4 million barrels, according to Reuters.

http://money.cnn.com/2007/05/23/markets/oil_eia/index.htm?postversion=2007052310

[ozymandius]

6. Oil prices rise ahead of U.S. fuel data

VIENNA, Austria - Oil prices rose Wednesday despite expectations that a weekly U.S. government report to be released later in the day would show the third increase in domestic gasoline stocks in as many weeks.

Gasoline stocks were expected to grow by an average of 800,000 barrels, according to a Dow Jones Newswires poll of analysts. Crude oil supplies were forecast to drop by 200,000 barrels, and distillate stocks, which include heating oil and diesel fuel, were expected to increase by an average of 900,000 barrels.

Prices were supported by concerns that — despite the expected gasoline stockpile — supply would be stretched by the high-demand U.S. summer driving season, which kicks off this long Memorial Day weekend.

-cut-

The U.S. Energy Information Administration — responsible for the latest energy snapshot to be released later in the day — said last week that domestic gasoline inventories, while increasing to 195.2 million barrels for the week ended May 12, remain well below the average for this time of year.

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

[ozymandius]

8. Pricey gasoline costs U.S. consumers extra $20 bln

WASHINGTON (Reuters) - The jump in U.S. gasoline prices this year has so far drained consumers of an extra $20 billion, or about $146 for each passenger car in the country, the Government Accountability Office told Congress on Tuesday.

The national price for regular unleaded gasoline hit a record $3.22 a gallon this week, and is up $1.05 since the beginning of February, according to the Energy Department.

The added expense is taking money away from consumers to spend on other goods and services.

"Spending billions more on gasoline constrains consumers' budgets, leaving less money available for other purchases," GAO's Thomas McCool said in written testimony to a House Oversight and Investigations Subcommittee hearing on the cause of record prices.

http://news.yahoo.com/s/nm/20070522/us_nm/usa_congress_gasoline_dc_4

[mojavekid]

17. Bloomberg: Crude Oil Pares Gains Before U.S. Report on Gasoline Supplies

http://www.bloomberg.com/apps/news?pid=20601072&sid=abVuBqKzupLQ&refer=energy

May 23 (Bloomberg) -- Crude oil pared gains and traded below $66 a barrel in New York before a report later today on how much fuel the U.S. has available for the summer driving season, which starts next week.

The U.S. Energy Department will probably report gasoline stockpiles rose last week, a Bloomberg News survey of analysts indicated. Supplies were 7.5 percent below the five-year average in the week to May 11, the Energy Department said last week.

Gasoline supplies ``are rising, but they are still low,'' said Luis Giusti, a board member of the Centre for Global Energy Studies and the former head of Venezuela's state oil company. ``The increase in the gasoline demand began earlier this year.''

Crude oil for July delivery rose 2 cents to $65.53 a barrel in after-hours electronic trading on the New York Mercantile Exchange at 1:09 p.m. in London. Earlier, it rose as much as 37 cents, or 0.6 percent, to $65.88 a barrel.

The U.S. Energy Department report will probably show gasoline stockpiles rose by 1.2 million barrels in the week ended May 18 from 195.2 million barrels the week before, according to the median forecast of 17 analysts surveyed by Bloomberg News.

more...

[Ghost Dog]

21. Oil and gas contributed $40-billion to Canadian economy last year

http://www.reportonbusiness.com/servlet/story/RTGAM.20070523.woilgasind0523/BNStory/robNews/home

Canada's booming oil-and-gas industry employs nearly 300,000 people and contributed more than $40-billion to economic growth last year, according to a government report released Wednesday.

The Statistics Canada report, called Fuelling the Economy, looked at changes in this country's energy sector during the last ten years. It also looked to the future, saying that as global supplies continue to dwindle and prices continue to soar, it will become increasingly profitable for companies to extract resources from harder-to-reach places like Alberta's oil sands.

Canada is currently the eighth-largest producer of crude oil in the world, pumping out about 2.5 million barrels a day. World demand, meanwhile, is about 84 million barrels and current production is 86 barrels.

“If geopolitical tensions remain high in other oil-producing areas of the world, Canada's role will become even more important,” Statscan said.

In all, the report found that the oil and gas sector contributed more than $40-billion (when measured in 1997 dollars) to Canada's gross domestic product in 2006.

The number of jobs in the sector increased at a slightly faster pace than the national average, numbering around 298,000 in 2006, a 22 per cent increase from 1997, Statscan said. That compares with a national average rate of 20 per cent expansion.

The most explosive growth has taken place in the upstream sector – the area that consists of oil and gas extraction, investment and production. Over the last 10 years, these areas have emerged as “driving forces in the economy,” Statscan said.

Between 1997 and 2005, investment in Canadian oil and gas extraction surged 140 per cent from $18.9-billion to $45.3-billion, far exceeding any other industry. The value of oil and gas production increased over 245 per cent to $108-billion.

/...

[ozymandius]

7. U.S. stocks head to higher open

NEW YORK - U.S. stocks headed toward a higher open on Wednesday after a report that Alcan Inc. rebuffed a hostile bid by aluminum competitor Alcoa Inc. raised speculation that alternative offers might be launched.

Investors have been encouraged by a host of takeover offers this week, a sign that corporate executives are confident about the economy. There has been some $2.3 trillion worth of deals announced so far this year — putting the tally on pace to beat last year's record $4 trillion, according to financial data provider Dealogic.

In other deal news, EMI Group Chief Executive Jim Fifield might be in the final stages of planning an offer to buy the music company, according to the New York Post. Rival Warner Music Group Corp. has also expressed interest in buying EMI in the past.

The Bancroft family, which controls Dow Jones & Co., are planning a private meeting on Wednesday to discuss a $5 billion bid by Rupert Murdoch's News Corp., according to a report in The Wall Street Journal, which is owned by Dow Jones.

http://news.yahoo.com/s/ap/20070523/ap_on_bi_st_ma_re/wall_street

[UpInArms]

9. dollar watch

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

Last trade 82.190 Change -0.236 (-0.29%)

Pound Rallies as BoE Considered 50bp - But Is There Really More in Store?

http://www.dailyfx.com/story/bio2/Pound_Rallies_as_BoE_Considered_1179914722756.html

The Bank of England Monetary Policy Committee voted unanimously for a 25bp rate hike at its meeting in May, surprising many traders who expected to hear at least one voice of dissent. However, perpetual dove David Blanchflower concurred with the majority view voting to take rates higher after the headline CPI rate breached 3.0 percent level in April. In fact the only point of debate was whether the BoE should raise a full 50bp rather than the 25bp ultimately agreed upon.

In the discussion on the proper setting of monetary policy preceding the vote, the Minutes read "For some members, the question was whether Bank Rate should be increased by 25 basis points or whether there was a case for a rise of 50 basis points - given the upside risks to inflation over the medium term and the buoyant outlook for growth and demand." Sterling rallied on the news as market once again considered the possibility of another BoE rate hike in the next few months.

However, we remain skeptical about the likelihood of any further tightening this summer. In contrast to the April numbers, May inflation data saw a considerable decline dropping from 3.1% to 2.8%. Furthermore UK Retail sales contracted sharply, registering their first negative reading in three months as higher interest rates and skyrocketing gasoline prices clearly dampened UK consumer spending. The UK central bank is correct to be concerned about the overheating, especially if global equity markets continue to rally. As the first “hedge fund” economy, UK is extremely leveraged to any additional gains in the financial markets which would translate to higher bonuses for workers in the City and will filter across the whole UK services sector. Should equity markets from Tokyo and Shanghai to London and New York remain “hot”, UK economic growth will be as “buoyant” as the BoE expects, prompting another 25bp hike shortly. However, should capital markets cool, the slowdown in UK consumer demand, which is already evident will exacerbate and in that case the BoE is almost certain to remain stationary. For now sentiment favors the hawkish view, but the reality is far more data dependent than many pound bulls believe.

...more...

Dollar: Stock Market Rallies around the World Continue to Fuel Dollar Gains

http://www.dailyfx.com/story/bio1/Dollar__Stock_Market_Rallies_around_1179863402512.html

When the foreign exchange markets have nothing to worry about, carry traders have no reason to abandon their positions. This explains why the US dollar took another aim at its 5 week high, shrugging off weak manufacturing data and stronger Eurozone data in the process. Little has come out of the US-China meetings thus far and the market’s worst fear of a Shanghai stock market collapse following the latest moves by China proved to be unwarranted. In fact, the Chinese stock market hit yet another record high last night. The untamable bubble in the East has fueled untamable bubbles in the West. The risk seeking appetite of global investors is fervent and this could continue well into Thursday with no US data on the calendar to alter market sentiment. Even though the Richmond Fed index deteriorated significantly in the month of May, the index did a poor job of forecasting the directional movement of the national ISM manufacturing index last month. Furthermore, the index still reflected an improvement in manufacturing conditions in the region, which explains why the dollar failed to react to the report. Weekly retail sales data was mostly positive. Redbook sales increased 2.2 percent between April and May and even though the ICSC/UBS weekly chain store sales dropped 1.5 percent, sales year over year remain positive. For the time being, the Federal Reserve has no reason to shift away from their hawkish monetary policy bias, especially as the US stock market hits another new record intraday high before reversing. As long as nothing rocks the interest rate boat, traders will continue to buy up dollars, but be careful, because once the stock markets around the world turn, expect the yen crosses and the dollar to do so as well.

...more...

China Invests In Blackstone Group - Is It Only The Beginning?

http://www.dailyfx.com/story/special_report/special_reports/China_Invests_In_Blackstone_Group_1179860306555.html

On Monday, Beijing announced a deal that surprised the finance community, and it didn’t involve commodities or the domestic currency. Instead, officials, on the cusp of creating an private investment arm, invested a significant amount in the private equity firm Blackstone Group LP.

The deal has subsequently boosted the overall filing as the Chinese government seeks out financial returns on its rather lackluster foreign exchange reserves. Although widely pertinent to the equity markets, the planned offering does have subsequent implications in the FX world with many looking ahead to further potential acquisitions and investments on the horizon.

Details of the Transaction

Looking for higher rates of return, the Chinese government has elected to invest a heavy sum into the proposed Blackstone Group initial public offering, set to come to market in a couple of months. The stake, worth 9.9 percent of the overall deal, has subsequently forced lead underwriters to boost the capacity of the offering, setting shares in the $29-$31 range. Shortly after the announcement, deal makers increased the deal by almost 20 percent to as much as $7.8 billion. Laden with plenty of additions and clauses, the final transaction markup will value the soon to be public private equity firm at a whopping $33.6 billon. Ultimately, the total will boost Blackstone’s carry in the financial services industry, making comparisons with some of Wall Street’s heavy public hitters like Goldman Sachs and Morgan Stanley.

...more...

[mojavekid]

13. Daily Pfennig 5/22/07: German Business Confidence Soars!

http://www.kitcocasey.com/displayArticle.php?id=1398


The currencies didn't really budge again yesterday, as the dollar did trade with a bias downward, but like I said... No big deal on the movements. Canadian dollars/loonies remained well bid and above 92 cents on the day... But nothing else to really bet a bugger about...

This morning... May German Investor Confidence, as measured by the think tank, ZEW, rose to an 11-month high. ZEW uses an index to measure Investor Confidence, and this index rose to 24, which is quite a jump from the 16.5 it printed in April! I keep telling you that the Eurozone economy, led by Germany, is enjoying its best economic growth in years, which is nothing but manna from heaven for the euro. So much for the economists that forecast a slowing down of the economy for this year vs. last year!

With all this growth... The central bank providing price stability, and rising interest rates, one would have to question why the euro isn't trading above 1.40 and pushing 1.45... But patience, grasshopper... Patience.

Yesterday, I told you that Kuwait had dropped their peg to the dollar and instituted a currency basket... They still won't tell us the makeup of that basket... But here are some thoughts from one of my fave currency strategists from the Royal Bank of Canada... Monica Fan... "The Kuwait Central Bank today revealed that their KWD-FX Basket would be "import and financial flows weighted" although the precise composition of major currencies would remain confidential (as expected). Kuwait's top individual import-partners are in order: the US <14.1%>, Germany <10.8%>, Japan <8.4%>, Saudi Arabia <6.2%>, UK <5.7%>, France <4.8%> and China <4.5%>, according to the CIA. If the KWD-currency basket mirrored the import source of Kuwait's top merchandise importers, the composition of the KWD-basket would be roughly: USD 46%; EUR 29%, JPY 15% & GBP 10%."

So... If the major composition of the basket is still dollars... I don't see any major changes going on here... So let's move on... There's nothing to see here...

more...

[Ghost Dog]

23. Norway's Krone Advances as Economy Expands More Than Forecast

http://www.bloomberg.com/apps/news?pid=20601083&sid=a1tT_77C9g.M&refer=currency

May 23 (Bloomberg) -- The Norwegian krone advanced the most in more than two months after a government report showed economic growth expanded more than forecast, adding to pressure on the central bank to increase interest rates.

The krone rose for a fifth day, its longest winning run in 10 weeks, after a report by Statistics Norway showed the mainland economy, excluding oil and shipping, expanded 1.4 percent in the first quarter. It is the 13th consecutive quarter of growth, and above the 1 percent mean estimate of 16 economists surveyed by Bloomberg.

``Overall, the GDP figure is a strong number, but not strong enough to lift the krone for long,'' said Jonas Schough, a currency trader at Svenska Handelsbanken AB in Stockholm. ``Given the recent strengthening due to rising oil prices, it might be tough to strengthen further from the current level.''

Against the euro, the krone gained 0.3 percent and traded at 8.1107 by 4:40 p.m. in Oslo, near the highest since May 2, from 8.1336 yesterday. Norway's currency is the fifth-best performer against the euro and the dollar this year of the 17 most-traded currencies monitored by Bloomberg.

Norway's annual economic growth has exceeded 4 percent for the past three years, and 13 quarters of expansion is the longest period of uninterrupted growth since at least 1978. The central bank has said it will raise the benchmark rate to 5 percent by- year end to curb inflation and growth.

Oil Prices

The krona has risen this week along with oil prices. Norway is the world's fifth-largest oil exporter, and the stock market has gained for seven days, paced by buying of shares of energy companies such as Statoil ASA and Norsk Hydro ASA. Investors need to buy local currency to purchase the stocks.

/...

[Ghost Dog]

32. Dollar Sees Its First Big Correction In A Week Just Before Data Crosses The Wires

http://www.dailyfx.com/story/currency/eur_news/Dollar_Sees_Its_First_Big_1179941735008.html?engine=rss&keyword=article
Wednesday, 23 May 2007 17:34:02 GMT
Written by John Kicklighter, Currency Analyst

It has been a steady and profitable advance for the US dollar over the past week; but without the aid of sturdy economic indicators, it would have to come to an end sometime. As the greenback eyed resistance, the lack of data and inflated rate expectations for counter currencies finally broke the bull’s back – and just before the economic calendar is expected to get interesting.

Leading price action, EURUSD made a quick break of its tight overnight range to 1.3415 before reversing course and rallying all the way to 1.35. Producing the same false break, USDCHF ended a quick run to 1.2310 by plunging 60 points. The Japanese yen made its own 55-point rally against the US dollar, but not before the pair hit a new two-month high at 121.85. Finally, a hawkish monetary policy statement from the BoE MPC leveraged the GBPUSD run. Finding a floor around 1.9715, GBPUSD rallied 180 points to stall just below 1.99.

/...

[UpInArms]

10. Fannie Mae names ex-FBI Director Freeh to board

http://www.reuters.com/article/bondsNews/idUSWEN834520070523

NEW YORK, May 23 (Reuters) - Fannie Mae (FNM.N: Quote, Profile, Research, the largest U.S. housing finance company, said on Wednesday former FBI Director Louis Freeh will join its board of directors.

Freeh will work on the board's compliance and compensation committees. He becomes the eighth new director elected to Fannie Mae's board since 2004.

Freeh is president of Freeh Group International LLC, a group of former federal judges and senior FBI officials who provide legal, governance, risk management and other services. He was director of the Federal Bureau of Investigation from 1993 to 2001, and a federal judge in Manhattan from 1991 to 1993.

[AnneD]

15. Morning Marketeeers.....

:donut: and lurkers. I just can't let this thread pass by without comment. An ex-FBI director named head of Fannie Mae. My first thought was wondering what bodies did he know about and where are they buried. Then I thought about LBJ-you know-the last elected Democrat to actually own a pair of balls and a spine to go with them. "I never trust a man whose pecker isn't in my pocket","If you have them by the balls, their hearts and minds will follow". I smell a deal in the works.
And as I ponder LBJ and those quotes-I wonder what in the hell is going through the minds of our DEM 'leaders'. Does Rove have a picture Reid in bed with a page? A snapshot of Pelosi golfing with Satan? Why has this Congress been so intimidated and browbeaten. Like that non binding crap will show him whose boss. What next-holding your breath til he gives you a report? OH, I'm so scared. Bush and Rove are bulling blowhards-cowards of the worst sort. They puff themselves up to scare you, but it is hot air. Congress has a quiver full of arrows at their disposal to pierce that hot air-and they d nothing. I play chess and love strategy-but for the life of me, I can't see where they are going with this. Bush and Rove's strategy however is very clear. By ignoring Congress and flaunting their illegal acts (via Gonzales), they are showing Congress up to be impotent fools. The only way to get this administration in line is with a 2x4 upside the head. If the GOP Congressmen think they have to side with the President-they have underestimated the mood of the country.

Happy hunting and watch out for the bears.

[UpInArms]

11. Dillard's quarterly profit drops 30 percent

http://news.yahoo.com/s/nm/20070523/bs_nm/dillards_results_dc

NEW YORK (Reuters) - Department store chain Dillard's Inc. (NYSE:DDS - news) posted a 30 percent drop in first-quarter profit on Wednesday as sales declined.

Net profit fell to $42.9 million, or 53 cents a share, from $61.3 million, or 77 cents a share, a year earlier.

The latest earnings included a pre-tax $4.1 million hurricane recovery gain, which added 3 cents to earnings after tax.

Net sales fell 4 percent to $1.76 billion during the quarter, dragged down by weak sales of juniors' and childrens' clothing.

...more...

[Roland99]

12. And here's the 5th rec. Morning folks! Some fireworks on C-SPAN today, eh?

[mojavekid]

14. Bloomberg: Euro Rebounds Against Dollar on Outlook for ECB Rates, Growth

http://www.bloomberg.com/apps/news?pid=20601083&sid=acn1OEzuE04k&refer=currency

May 23 (Bloomberg) -- The euro gained against the dollar and yen as European economic reports and central bank officials fuel speculation interest rates will rise twice more this year.

The currency rebounded from an almost six-week low against the dollar after a report showed industrial orders in the euro region recovered in March and before a survey tomorrow that's expected to show increased business confidence in Germany. Traders added to bets the European Central Bank will lift its benchmark refinancing rate to 4.25 percent this year.

``The market realizes the ECB is more likely to raise rates,'' said Mark O'Sullivan, who helps oversee $2 billion of foreign exchange at Currencies Direct Ltd., a London-based investment-management company. ``The data is really strong, with Germany leading the charge. The euro should strengthen.''

more...

[mojavekid]

16. Marketwatch: 'Better day dawns,' gold futures inch upward

http://www.marketwatch.com/news/story/gold-futures-gain-dollar-falls/story.aspx?guid=%7BF459C862%2D217E%2D4A89%2D9B84%2D1CB03CA124FB%7D&siteid=yhoof



NEW YORK (MarketWatch) -- Gold futures nudged higher in early Wednesday action as a weakening dollar against major currencies boosted demand for the precious metal.
Gold for June delivery gained $3.40 at $663.30 an ounce on the New York Mercantile Exchange.
"A better day dawned for gold on Wednesday, as a pause in the dollar's advances against the euro gave the necessary stimulus to traders looking to buy a bit of metal at current prices," said Jon Nadler, metals analyst at Kitco Bullion Dealers, in a morning note.
"Where we go from here is as much a function of how many brave souls will come into the market to buy and push the vectors on the charts back towards the 100-day moving average, as well as the winding down of recent selling activity," Nadler said.
The dollar fell against key currencies Wednesday on growing expectations that interest rates in the euro zone will continue to rise this year. The euro was last up 0.3% at $1.3492, while the dollar was down 0.3% at 121.37 yen.
On Tuesday, gold futures closed down $3.90 at $662.50 an ounce.

more...

[mojavekid]

18. Bloomberg: Blackstone + China = Bubble Marriage

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_pesek&sid=aU7bs9CJazGI

May 23 (Bloomberg) -- It would be fascinating to see what Mao Zedong would make of China's $3 billion investment in Blackstone Group.

Here you have the world's most-watched communist nation investing in perhaps the most capitalist of Wall Street vehicles: a private-equity firm. China is doing so with foreign-exchange reserves, which it uses to ensure employment for its 1.3 billion people.

For Asia's No. 2 economy, ``the Blackstone investment represents a supreme business irony,'' Donald Straszheim, vice chairman of Newport Beach, California-based Roth Capital Partners, told clients in a report yesterday.

China's embrace of the private-equity movement, which the country's regulators have long viewed with suspicion, is about expediency. Officials in Beijing have $1.2 trillion of reserves they want to invest more profitably than in U.S. Treasuries. They lack the expertise to do it themselves and don't want to pay money managers millions in fees.

Enter New York-based Blackstone, an institution with the expertise that Chinese bureaucrats lack: running globally competitive companies. For Blackstone, the deal is a way of improving private equity's image in Beijing.

It's a marriage seemingly made in investment heaven. That is, until you consider it also could be the bonding of the world's most obvious bubbles.

more...

L.A. Times ran an article on this yesterday, which I could not find. This,news, more than others I find extremely disturbing...

[AnneD]

27. I have been watching this....

with great interest. Haven't found any scandal but these things make me nervous.

[mojavekid]

28. I agree with you AnneD,

I know that if the US Gov't were to invest it's trade surplus in a private equity firm in China, I imagine it would seem like they are artificially supporting the market, it would no longer be free. In essence it is what China is doing by using their (mostly) US holdings to invest in an American investment firm (recycling), to do what? support our ailing economy? While I do not wish to see America suffer the immensely painful recession it needs, I believe this is a move to keep the game going, and the end result because people would rather choose the mirage of a healthy "free" economy, over the initial pain of a correction to a truely free economy. The end result will be more corporate/government collusion and everything that comes with that.

I do understand that Singapore amoung other countries with surpluses do this however. It appears to have worked for them, but then they are producers, and seen happy with an autocratic government.

I have the same feeling in regards to Barrick. I do not trust this one bit.

[Roland99]

38. Philip Bauer MUST be involved!!

:evilgrin:


Any "24" fans out there? ;)

[AnneD]

41. I watch TV...

as an escape, not as reality programing ;)

[Roland99]

45. "What is real? And what is an illusion?"

[AnneD]

46. every since....

the matrix-i have found my self asking myself that (and wishing I had taken the blue pill). It's hell to be self aware and self actualized.

[Roland99]

47. About the only reason to be a Republican.

Ignorance is bliss.

[AnneD]

50. Preach brother

preach.

[Ghost Dog]

34. China agrees on need for more currency flexibility: Paulson

http://www.afp.com/english/news/stories/070523172443.j7u4rdnt.html
23/05/2007 17h55

WASHINGTON (AFP) - China has agreed on the need for greater flexibility of its yuan currency, a key US demand to help contain a ballooning trade deficit, US Treasury Secretary Henry Paulson said Wednesday.

"The Chinese clearly see the need and stated the principle of greater renminbi flexibility," he told reporters at the end of high-level bilateral talks, referring to the Chinese yuan currency.

The two-day "strategic economic dialogue" bilateral meeting also produced agreements to reduce trade barriers in financial services and the energy, environment and civil aviation sectors, he said at a news conference, flanked by his Chinese counterpart at the talks, Vice Premier Wu Yi.

Paulson said China had agreed to remove a barrier on the entry of new foreign securities firms and resume licensing securities companies, including joint ventures, in the second half of 2007, as part of major financial reform.

...

Paulson said the Chinese "share our goals for a well-developed financial sector to support balanced growth.

"What we differ (in) is not about the goals, but the pace of change and I believe the greater risk for China is moving too slowly and not in moving too quickly."

/...


US, China agree on need for currency, economic reforms but not on pace
http://www.forbes.com/business/feeds/afx/2007/05/23/afx3751798.html
WASHINGTON (Thomson Financial) - After two days of high-level meetings in Washington, the US and China say they are agreed on the need for economic and currency reforms, just not on the pace of change, Treasury Secretary Henry Paulson said today.

[Ghost Dog]

42. U.S. and China make deals but not on currency

http://www.reuters.com/article/bondsNews/idUSN2321960620070523?rpc=401&

WASHINGTON, May 23 (Reuters) - The United States and China on Wednesday announced deals to increase flights to China and ease U.S. entry into its financial sector but made no headway on the thorny issue of speeding up Chinese currency reforms.

After two days of top-level economic talks, U.S. Treasury Secretary Henry Paulson claimed "tangible results" while China's Vice Premier Wu Yi said relations between the two countries were "complicated" and needed careful handling.

/...

[Ghost Dog]

49. China, U.S. conclude key economic dialogue, with specific agreements

http://news.xinhuanet.com/english/2007-05/24/content_6143041.htm

WASHINGTON, May 23 (Xinhua) -- China and the United States on Wednesday concluded a key economic dialogue with a wide variety of specific agreements.

In remarks prepared for the concluding of U.S.-China Strategic Economic Dialogue, Chinese Vice Premier Wu Yi said the two countries reached much consensus and realized positive results.

"With the great attention and joint efforts from both sides, the second meeting of the strategic dialogue achieved great success," said Wu, also as the special envoy of Chinese President Hu Jintao.

"China-U.S. economic and trade relationship is one of the most complicated in today's world," she said. "The SED provided an excellent ground and opportunity for both sides to enhance the mutual understanding and increased the mutual trust in the strategic issues."

Meanwhile, the Chinese leader warned against the rising protectionism and threat in the United States.

"It calls for direct consultation and dialogue between us, instead of easy resort to threat or sanctions," she said.

U.S. Treasury Secretary Henry Paulson said in his concluding statement that the U.S. and China both understand that "getting the economic relationship right is vital not only to our people, but to the world economy."

Paulson, who co-chaired the Strategic Economic Dialogue with Wu as special envoy of President George W. Bush, also noted two countries reached a wide variety of agreements during the dialogue.

"We agree that it is vital to the prosperity of both our nations, that China rebalance its economic growth, encourage consumption and spread development more broadly among its people," he said.

Both countries also agreed that "strengthening and deepening our two-way trading relationship will create jobs and give our citizens a wider variety of choices and lower prices on goods," he added.

"We have built strong relationships since our inaugural meeting in Beijing," said the Treasure chief, referring to the first meeting of the Strategic Economic Dialogue in December, 2006. He emphasized that the relationships between the two countries will "continue to grow stronger and produce on-going returns."

In an aviation agreement reached on Wednesday, daily passenger flights from the U.S. to China will double by 2012, and air cargo companies will have virtually unlimited access to Chinese market by 2011.

The two countries also agreed to work together as part of the WTO Doha negotiations to discuss reducing or eliminating tariff and non-tariff barriers to environmental goods and services.

Moreover, the two countries will provide policy incentives to promote the full commercialization of advanced coal technologies and will advance commercial use of carbon capture and storage technologies.

On the front of the tourism industry, the two countries agreed to launch negotiations to facilitate Chinese group leisure travel to the U.S.

"Allowing tourism companies to arrange trips for Chinese travelers to the United States is a significant step, given that one in seven jobs in the United States is related to the tourism industry," said the U.S. delegation in a statement.

[Ghost Dog]

22. Dems Cut Trade Deal with Bush; Poised to Throw American Workers Under Bus

http://www.citizen.org/publications/release.cfm?ID=7524&secID=1152&catID=126
By Lori Wallach and Todd Tucker, AlterNet. Posted May 23, 2007.

Just 100 days after the Democrats rode into Washington on a fair trade mandate, shock has morphed into rage over last Thursday's surprise announcement by the Bush administration, Democratic Speaker of the House Nancy Pelosi, Ways and Means and Finance Committee Chairs Charles Rangel and Max Baucus, and a coterie of New Democrats and CAFTA 15'ers of a "Deathstar Deal" on trade. The deal could facilitate passage of various awful, pending Bush "free trade agreements" (FTAs), not to mention the danger it may pose to Democrats who go along with its terms. (See here and here for the blow by blow.)

Not one labor, environmental, small business, public health or consumer group supports the deal. Huge corporations praised it -- they see it as essential to the passage of more corporate trade agreements. Among these monied voices was the Chamber of Commerce president, who celebrated the deal's unveiling with a statement in which he said he was psyched about "assurances" he had received that the deal's labor provisions "cannot be read to require compliance" with international labor standards.

Why would Democrats pass a politically poisonous trade deal with the Bush administration instead of launching their own proactive trade agenda? Why not propose a forward-looking strategy that could satisfy public demand for new trade rules that tackle the stability-threatening trade deficit, stagnant wages and other urgent problems?

Most Democrats are asking the same question. The Deathstar Deal was negotiated in secret, legal texts were not made public, and it was abruptly announced without warning to most Democrats or Democratic base groups.

/...

[TrogL]

24. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.H06&v=s

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

202007-04-23 Monday, April 23 0.890869 USD
2007-04-24 Tuesday, April 24 0.890631 USD
2007-04-25 Wednesday, April 25 0.897183 USD
2007-04-26 Thursday, April 26 0.892698 USD
2007-04-27 Friday, April 27 0.8967 USD
2007-04-30 Monday, April 30 0.903506 USD
2007-05-01 Tuesday, May 1 0.901876 USD
2007-05-02 Wednesday, May 2 0.901957 USD
2007-05-03 Thursday, May 3 0.903424 USD
2007-05-04 Friday, May 4 0.903424 USD
2007-05-07 Monday, May 7 0.907112 USD
2007-05-08 Tuesday, May 8 0.905141 USD
2007-05-09 Wednesday, May 9 0.903914 USD
2007-05-10 Thursday, May 10 0.903098 USD
2007-05-11 Friday, May 11 0.897989 USD
2007-05-14 Monday, May 14 0.903587 USD
2007-05-15 Tuesday, May 15 0.911079 USD
2007-05-16 Wednesday, May 16 0.906783 USD
2007-05-17 Thursday, May 17 0.911079 USD
2007-05-18 Friday, May 18 0.918864 USD
2007-05-21 Monday, May 21 0.921319 USD
2007-05-22 Tuesday, May 22 0.921319 USD (that doesn't look right)


Current values

Last trade 0.9254 Change +0.0035 (+0.38%)
Previous Close 0.9220 Open 0.9243
Low 0.9228 High 0.9254


Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The June Canadian Dollar was steady to slightly lower overnight as it consolidates some of Monday's rally but remains above last May's high crossing at .9200. Stochastics and the RSI are overbought, diverging but are neutral to bullish signaling that sideways to higher prices are possible near-term. If June extends the rally off February's low, weekly resistance crossing at .9312 is the next upside target. Closes below the 20-day moving average crossing at .9074 would confirm that a top has been posted. Overnight action sets the stage for a steady to slightly lower opening in early-day session trading.


Analysis

I cannot believe that I've posted 7 of these in a row. In terms of analysis:

Oh, crap, here we go again.

The blather above is wrong already - it opened higher. I think those things are computer generated anyway. It talks about "last May" - we're still in May.

Looking at the other charts, it looks like the greenback's falling against everything else but I won't know for sure until more of my numbers come in.

Despite some cheerleading from some rather questionable sources, the US economy sucks and everybody knows it. The Canadian economy is overheated and people not directly involved are hurting. Prices are so crazy in Alberta that people are moving to Saskatchewan. Hell, I may have to start biking to work 'cause of the price of gas and the thought of going for groceries is giving me a panic attack. Teacher contracts are up for renewal this year and the morning drivein mentioned public service contracts being up as well. Could be some real labour unrest on the horizon.

[Ghost Dog]

25. High-flying (Canadian) dollar threatens factories: economist

http://www.canada.com/ottawacitizen/news/business/story.html?id=385b28e0-c4b5-4f24-bd23-35268d88977c
Pressure mounts on manufacturers as currency hits 30-year high
Eric Beauchesne, The Ottawa Citizen
Published: Wednesday, May 23, 2007

The dollar surged to a new 30-year high of more than 92 cents U.S. yesterday, sparking warnings that the strong currency may force some manufacturers in the central and eastern provinces to shut down production in Canada.

The continued increase by the currency has put an added burden on the struggling manufacturing sector, one of the industry's top economists said.

"This is going to put a lot more renewed pressure on the bottom line for everybody," said Canadian Manufacturers and Exporters chief economist Jayson Myers, who noted that the dollar has soared from less than 65 cents U.S. in just four years.

"After three or four years, I don't think there's a lot of companies with a lot of profit left, and in fact many are in a loss position," Mr. Myers said. "This is going to make it very difficult for a lot of companies to keep their heads above water."

"It's going to force many companies to reassess whether they keep their production lines open here in Canada," he said. "If it stays at this level for some time, we'll probably see more in the way of plant closures in the year ahead."

/...

[TrogL]

26. Update:

Looking up above it looks like the Loonie, greenback, Norwegian Kroner, UK pound are all going up.

Wait a minute, they can't ALL be going up. Compared to what? :wtf:

[Ghost Dog]

33. Against the "fiendish" Euro, it seems (but see #32 above) n/t.

[TrogL]

40. Afternoon update

Current values

Last trade 0.9243 Change +0.0024 (+0.26%)
Previous Close 0.9220 Open 0.9243
Low 0.9228 High 0.9254

[raouldukelives]

29. Thanks for the hard work

I'm a long time lurker and just wanted thank everyone for making this my favorite read everyday.

[ozymandius]

30. Thanks very much!

And welcome to Democratic Underground! :toast: :woohoo: :toast:

[AnneD]

43. I often wonder ....

how many lurkers we have. A few I venture. :hi: rao

[ozymandius]

31. afternoon update

2:17
Dow 13,567.17 Up 27.22 (0.20%)
Nasdaq 2,593.13 Up 5.11 (0.20%)
S&P 500 1,528.34 Up 4.22 (0.28%)
10-Yr Bond 4.869% Up 0.038
NYSE Volume 1,776,389,000
Nasdaq Volume 1,303,782,000

2:00 pm : Not much has changed over the last few hours as the major averages continue to vacillate in relatively narrow ranges. The Energy sector (+0.9%) continues to pace the way, but is still off its best levels, followed by gains of 0.8% in Materials and Telecom. The Industrials sector extending its reach into positive territory, though, is now making a name for itself as one of today's notable contributors.

Emerson Electric (EMR 47.63 +1.63) is the sector's best performer (+3.5%) after its CEO cited progress toward a goal of returning to profit margins last enjoyed in the 1990s. Dow component General Electric (GE 37.75 +0.41) is up 1.1% after management updated its financials following the announced divestiture of its plastics unit. DJ30 +48.35 NASDAQ +9.17 SP500 +6.39 NASDAQ Dec/Adv 1199/1781 NYSE Dec/Adv/Vol 1209/1994/902 mln

1:30 pm : More of the same for stocks as market breadth remains decidedly positive. As reflected in the A/D line, advacners on the NYSE hold a nearly 2-to-1 edge over decliners while those on the Nasdaq hold an 18-to-11 margin.

An even larger ratio of up to down volume further dictates the bears' continued inability to have their overbought argument heard. As has been the case over the last few sessions, though, another day of below average volume offers limited conviction on the part of buyers. DJ30 +55.47 NASDAQ +11.54 SP500 +7.28 NASDAQ Dec/Adv/Vol 1165/1801/1.10 bln NYSE Dec/Adv/Vol 1178/2002/820 mln

[Ghost Dog]

39. Nine U.S. Warships in Gulf for Show of Force

http://www.defensenews.com/story.php?F=2779676&C=mideast
By MOHAMMED ABBAS, REUTERS, ABOARD USS JOHN C. STENNIS

The largest daytime assembly of U.S. warships in the Gulf since the 2003 Iraq war prepared on May 23 to hold drills off Iran’s coast in a major U.S. show of force that unnerved oil markets.

U.S. Navy officials said Iran was not notified of plans to sail nine ships, including two aircraft carriers, through the Straits of Hormuz, a narrow channel in international waters off Iran’s coast and a major artery for global oil shipments.

The maneuver raises pressure on the Islamic Republic, coinciding with a report by the U.N. atomic watchdog on Iran’s nuclear program, which could lead to tougher sanctions.

Oil climbed towards $70 as the U.S. ships sailed into the straits, through which 40 percent of globally traded oil passes.

Rear Adm. Kevin Quinn, who is leading the group, said the ships would conduct exercises as part of a long-planned effort to reassure regional allies of U.S. commitment to Gulf security.

"There’s always the threat of any state or non-state actor that might decide to close one of the international straits, and the biggest one is the Straits of Hormuz," he told reporters on board the aircraft carrier John C. Stennis

--> DU thread: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x949751#950005

Reuters: http://www.reuters.com/article/topNews/idUSL239406620070523?src=052307_1135_TOPSTORY_iran_defies_deadline&pageNumber=2

Iran's Defence Minister Mostafa Mohammad Najjar said Tehran would resist any threat and give a "powerful answer" to enemies.

Most U.S. ships pass through the straits at night so as not to attract attention, and rarely move in such large numbers.

Navy officials said the decision to send a second aircraft carrier was made at the last minute, without giving a reason.

The group of ships, carrying about 17,000 personnel and 140 aircraft scheduled to participate in the exercises that will take place over the next few weeks, crossed at roughly 0355 GMT.

/...

[AnneD]

44. Why is the theme song from

'Attack of the Killer Tomatoes' stuck in my brain?

[Roland99]

48. Bush can't keep it in his pants.

[UpInArms]

51. sweeping the floor and turning the lights out

Dow 13,525.65 14.30 (0.11%)
Nasdaq 2,577.05 10.97 (0.42%)
S&P 500 1,522.28 1.84 (0.12%)
10-Yr Bond 4.859% 0.028

NYSE Volume 3,084,261,000
Nasdaq Volume 2,126,677,000

The S&P 500 was once again poised to closed at a new all-time high, and once again, the market came up short following an afternoon pullback.

Another round of M&A news armed buyers in the early-going with more evidence of the liquidity factor that has contributed to seven consecutive weeks of gains for the blue-chip averages.

Speculation about a possible bidding war ensuing for Alcan (AL 85.96 +4.93), and perhaps even rival Alcoa (AA 40.28 +1.33), kicked things off on an upbeat note. Alcan rejected the Dow component's hostile $27.6 bln takeover offer and, according to a Canadian newspaper, is in merger talks with BHP Billiton (BHP 51.74 +0.99). What's more is that Alcan did not rule out the possibility of launching its own bid for Alcoa!

Another deal worth noting included Crescent Real Estate Equities (CEI 22.31 +0.69) agreeing to be acquired by Morgan Stanley (MS 85.85 +0.22) for about $6.5 bln, which includes debt. Payless ShoeSource (PSS 35.23 +3.33), meanwhile, said it will pay $800 mln in cash, or $20.50 per share, for Stride Rite (SRR 20.21 +4.76), which represents a 33% premium to Tuesday's closing price.

With very little in the way of good earnings news coming out of the retail sector lately, Target (TGT 58.89 +0.85) beating analysts' Q1 expectations also provided a boost for buyers.

Around 2:00 ET, however, the wind was sucked out of the market's sails when former Fed Chairman Alan Greenspan reportedly said the recent boom in Chinese stocks "is clearly unsustainable."

His warning of a "dramatic contraction at some point" in the Chinese stock market also conjured up images of the last time the Chinese stock market pulled back in "dramatic" fashion. On February 27, the Dow plunged 416 points in sympathy with an 8.8% sell-off on the little-followed Shanghai Composite amid concerns the Chinese government may step up efforts to curb speculative buying interest.

Even though market fundamentals at that time did not change, sentiment went from overly optimistic a few weeks earlier to overly pessimistic in one session. Needless to say, it didn't take long for the bullish momentum to return and send several indices to historic highs. Since the Shanghai sell-off, the Dow, S&P 500, and Nasdaq are up 10.7%, 7.0%, and 8.8%, respectively. DJ30 -14.30 DJTA +0.1% DJUA -1.1% DOT -0.4% NASDAQ -10.97 NQ100 -0.6% R2K -0.4% SOX -1.3% SP400 -0.3% SP500 -1.85 XOI +0.3% NASDAQ Dec/Adv/Vol 1664/1353/1.90 bln NYSE Dec/Adv/Vol 1738/1526/1.42 bln

3:30 pm : Stocks continue to waver around the unchanged mark as neither buyers nor sellers exhibit any sense of conviction. With the whipsaw action experienced in two of the last three sessions, it's understandable why itchy trigger fingers are keeping buyers reluctant to make any aggressibe bets going into the close.

As evidenced by a late-day surge in equities yesterday, and continued short-covering activity contributing to seven straight weeks of gains, sellers are even more cognizant of the ramifications of being on the wrong side of the tide. DJ30 +2.07 NASDAQ -3.83 SP500 +1.11 NASDAQ Dec/Adv/Vol 1547/1438/1.66 bln NYSE Dec/Adv/Vol 1654/1589/1.23 bln

3:00 pm : The major averages are bouncing off their worst levels but buyer's last ditch efforts merely leave the indices mixed. The S&P 500 clawing its way back above the flat line but is still below its all-time closing high.

All 10 sectors are back to playing their previous roles of leader and laggard, with Tech and Utilities again earmarked as today's only areas posting declines. However, the larger gains recently enjoyed by the likes of Energy, Materials, Consumer Discretionary, and Industrials are now modest at best. DJ30 +6.46 NASDAQ -2.53 SP500 +1.78 NASDAQ Dec/Adv/Vol 1675/1343/1.52 bln NYSE Dec/Adv/Vol 1751/1477/1.12 bln



:hi:

[Ghost Dog]

52. Ah, so it was the Greenspeak!

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2856803