STOCK MARKET WATCH, Thursday June 7

[ozymandius]

Source: DU

Thursday June 7, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 592 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2346 DAYS
WHERE'S OSAMA BIN-LADEN? 2058 DAYS
DAYS SINCE ENRON COLLAPSE = 2019
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
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 June 6, 2007

Dow... 13,465.67 -129.79 (-0.95%)
Nasdaq... 2,587.18 -24.05 (-0.92%)
S&P 500... 1,517.38 -13.57 (-0.89%)
Gold future... 674.60 -0.50 (-0.07%)
30-Year Bond 5.08% +0.02 (+0.34%)
10-Yr Bond... 4.97% -0.01 (-0.12%)






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

---

Read more: DU

[ozymandius]

1. Today's Market WrapUp

Wall Street Reconnects With Main Street
BY CHRIS PUPLAVA

Everyone was looking for what would break the equity rally that began after the February sell-off that arose after the Chinese Shanghai index corrected. The consensus thinking was that it would be the Chinese market once again as it accelerated even higher and was overdue for a correction. Well, the Chinese market began correcting last week and was down 21.5% from the high seen on March 29th (4335.96) as of yesterday before staging a rally. The sell-off didn’t rattle the markets as it did back in February, but what appears to be the straw that broke the camel’s back was rising interest rates, which also contributed to the sell-off that was seen in May of last year.

-see chart-

The 10-year UST yield broke its downtrend that had been in place since last June, the beginning of the equity rally that saw the S&P 500 rise nearly 24% while the 10-year UST fell 15% from a high in the yield of 5.23% to a low of 4.43%. However, since the May low the 10-year UST rose from 4.65% to nearly 5% and broke its downtrend at the same time, and yet the markets marched ever higher. There seems to be a disconnect between Wall Street and Main Street that continued to ignore the signs around it as the markets have also continued higher despite rising energy prices, dwindling small business optimism, and falling consumer confidence. Wall Street may now be catching up with Main Street with the recent slide in equity prices.

-cut-

Fed Chairman Bernanke has continued to reassure the markets that the economy remains strong despite first quarter GDP coming in at a meager 0.65%, the worst showing in more than four years. Bernanke, in a speech by satellite, said yesterday that the economy will recover from its recent feeble performance despite ongoing weakness in housing, which he said could drag on the economy for longer than anticipated.

Though housing has clearly been a drag on GDP, Bernanke said that "We have not seen major spillovers from housing onto other sectors of the economy.” Tell that to Bed Bath & Beyond (BBBY) who announced their earnings release late Monday.

Bed Bath & Beyond Investors Take a Bath

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

[ozymandius]

2. Today's Reports

8:30 AM Initial Claims 06/02
Briefing Forecast 315K
Market Expects 312K
Prior 310K

10:00 AM Wholesale Inventories Apr
Briefing Forecast 0.4%
Market Expects 0.3%
Prior 0.3%

3:00 PM Consumer Credit Apr
Briefing Forecast $6.0B
Market Expects $6.0B
Prior $13.5B

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

[UpInArms]

18. Initial Claims in at 309,000

10. U.S. continuing jobless claims up 72,000 to 2.54 mln
8:30 AM ET, Jun 07, 2007 - 13 minutes ago

11. U.S. 4-week avg. jobless claims up 2,750 to 307,250
8:30 AM ET, Jun 07, 2007 - 13 minutes ago

12. U.S. weekly jobless claims at lowest level since May 12
8:30 AM ET, Jun 07, 2007 - 13 minutes ago

13. U.S. weekly jobless claims down 1,000 to 309,000
8:30 AM ET, Jun 07, 2007 - 13 minutes ago

[UpInArms]

43. Wholesale Inventories report:

12. U.S. March wholesale inventories revised to rise 0.4%
10:00 AM ET, Jun 07, 2007 - 1 hour ago

13. U.S. April wholesale petroleum inventories rise 6.3%
10:00 AM ET, Jun 07, 2007 - 1 hour ago

14. U.S. April wholesale petroleum sales rise 6.7%
10:00 AM ET, Jun 07, 2007 - 1 hour ago

15. U.S. April wholesale inventories rise 0.3%
10:00 AM ET, Jun 07, 2007 - 1 hour ago

16. U.S. April wholesale sales rise 1.3%
10:00 AM ET, Jun 07, 2007 - 1 hour ago

[UpInArms]

47. US 1st quarter household net borrowing up 7.2% (a 4-year low)

05. U.S. 1Q mortgage-equity withdrawal falls to 6-year low
12:01 PM ET, Jun 07, 2007 - 1 hour ago

06. U.S. 1Q household borrowing up 6%, slowest in 9 years
12:01 PM ET, Jun 07, 2007 - 1 hour ago

07. U.S. 1Q household net worth up 4.3% annual rate
12:01 PM ET, Jun 07, 2007 - 1 hour ago

08. U.S. 1Q net borrowing up 7.2%, 4-year low
12:01 PM ET, Jun 07, 2007 - 1 hour ago

[UpInArms]

48. U.S. household wealth rise slows in Q1-Fed

http://www.reuters.com/article/bondsNews/idUSWBT00709120070607

WASHINGTON, June 7 (Reuters) - The net wealth of U.S. households rose to $56.18 trillion in the first quarter of 2007, while domestic debt growth also slowed, a Federal Reserve report showed on Thursday.

In its quarterly "Flow of Funds" report, the U.S. central bank said household wealth rose by about $590 billion or 1.1 percent in the first quarter from a revised $55.59 trillion in the fourth quarter of 2006.

Household net worth had increased by $1.31 trillion or 2.4 percent in the fourth quarter, according to the Fed report.

The Fed also said all nonfinancial debt grew by 7.3 percent after a 8.2 percent rise in the fourth quarter of 2006.

Household debt rose by 6.0 percent in the first quarter of 2007, slowing from a 7.2 percent rise in the final quarter of 2006.

...more...

[ozymandius]

3. Oil prices mixed on worries about Iraq

SINGAPORE - Oil prices were mixed Thursday as reports of a Turkish military incursion into northern Iraq raised concerns about possible disruptions to Iraqi oil exports.

-cut-

Light, sweet crude for July delivery rose 8 cents to $66.04 a barrel in Asian electronic trading on the New York Mercantile Exchange mid-afternoon in Singapore. On Wednesday, the contract rose 35 cents to settle at $65.96 a barrel.

In London, July Brent crude futures dropped 14 cents to $70.88 a barrel on the ICE Futures exchange.

Hundreds of Turkish troops crossed into northern Iraq Wednesday in pursuit of Kurdish guerrillas who raid Turkey from hideouts there, according to Turkish security officials and an Iraqi Kurdish official.

Traders were concerned that a Turkish invasion could disrupt already-curtailed Iraqi oil exports.

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

[Ghost Dog]

33. Oil consolidates above $70 amid geo-political concerns

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B25d580b8%2Dccf7%2D4f70%2Db0a6%2Dfb9b0b87a1c4%7D

Crude oil prices consolidated above the $70 level on Thursday amid heightened geo-political after Turkish troops lauched a raid against Kurdish rebels in northern Iraq, sparking concerns about the possibility of further fighting. ICE July Brent slipped 18 cents to $70.84 a barrel while Nymex July West Texas Intermediate added 21 cents at $66.17 a barrel. Oman’s oil facilities escaped damage from cyclone Gonu which has caused disruption over the country over the past two days. Oil prices also found continuing support from concerns over US gasoline supplies for the summer driving season. The latest US inventories data, published on Wednesday, showed a larger-than-expected increase in petrol stocks of 3.5m barrels but this was counterbalanced by further evidence that the US refining system is struggling with a shock fall of 1.5 percentage points in refinery utilisation to 89.6 per cent, the lowest rate for early June for fifteen years.

[citizen snips]

54. Oil Rises on Gasoline Supply Concerns

NEW YORK (AP) -- Oil and gasoline futures jumped Thursday on concerns that U.S. refineries aren't making enough gasoline to meet domestic demand.

Those worries were fed by a government report Wednesday that showed refinery utilization fell 1.5 percent last week to 89.6 percent of capacity.

"That's the really big story," said Michael Davies, an analyst at Sucden Ltd., a commodities brokerage firm. "There are going to be concerns whether the U.S. can cope with gasoline over (the) summer."

Light, sweet crude for July delivery jumped 95 cents to $66.91 a barrel after venturing above $67 earlier on the New York Mercantile Exchange. That's the front-month contract's first intraday move into $67 territory since September. Gasoline futures for July rose $1.23 to $2.2027 a gallon on the Nymex.

more...
http://biz.yahoo.com/ap/070607/oil_prices.html?.v=14

[ozymandius]

4. Dell to exit LCD television business: media

TAIPEI (Reuters) - Dell Inc. (Nasdaq:DELL - news) is leaving the LCD television business to focus on its core PC products amid an ongoing company overhaul by founder Michael Dell, Taiwan media reported on Thursday.

Dell, the world's No.2 personal computer maker, would cease making Dell-branded LCD televisions this month, the Chinese-language Economic Daily reported, citing unnamed sources.

A Dell spokeswoman said the company currently sells LCD TVs in a limited number of markets, including Japan and the United States, but had no comment about the Economic Daily report.

http://news.yahoo.com/s/nm/20070607/bs_nm/dell_tvs_dc

[UpInArms]

5. dollar watch

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

Last trade 82.087 Change +0.191 (+0.23%)

New Zealand Dollar Hits 25 Yr Highs After Interest Rates are Raised to 8 Percent - More To Come?

http://www.dailyfx.com/story/bio1/New_Zealand_Dollar_Hits_25_1181167386961.html

New Zealand Dollar Hits 25 Yr Highs After Interest Rates are Raised to 9 Year High – More To Come?

The NZD/USD hit a fresh 25 year high after the Reserve Bank of New Zealand surprised the market by raising rates to 8 percent, which is a 9 year high. This very dynamic is what will keep carry trades alive and well even if the Dow is falling. Although RBNZ Governor Bollard finds the exchange rate unjustifiably high, the 60 percent surge in dairy prices has forced him to fight inflation as aggressively as he can. According to Bollard, domestic spending and overall growth is strong enough to weather 8 percent interest rates. Even though he refuses to comment on future rate decisions, the futures curve is pricing in one more 25bp hike by the end of the year with a slim chance of two. The AUD/USD is also performing well, having hit a fresh 16 year high after strong GDP numbers. Employment data will be the key whether this strength can continue. Despite weaker IVEY PMI and building permits, Canadian dollar bulls refuse to give up.

Is the Dollar Tumbling Because of the Dow?

The Dow Jones Industrial Average tumbled over 100 points today, bringing the US dollar down with it. The most significantly weakness has been seen against the Japanese Yen, Australian and Canadian dollars but the fact that the US dollar has held steady against the Euro and British pound indicates that this is not a dollar story. True economics is back in play as the price action of each currency pair reflects the country’s own outlook for interest rates. Take the AUD/USD for example. It is the best performing pair of the day because the market now believes that the Reserve Bank of Australian will raise rates this year. The EUR/USD on the other hand is weaker because the comments from ECB President Trichet today suggests that the central bank will be hold at least until September. Unit labor costs and productivity were the only pieces of data on the US calendar today and these final quarterly releases are never major market movers. Therefore even though productivity slowed in the first quarter while unit labor costs increased, the US dollar did not budge. Instead, everyone has their eyes on the US stock market which dropped after Morgan Stanley issued a triple sell warning. This was the first time since the tech bubble burst that all three of their key warning indicators which follow P/E ratios, growth, inflation and risk appetite call for a correction. In fact, their model is predicting a 14 percent drop over the next six months. We have said often that carry trades will die with the Dow dies. Now that it is beginning to, we are seeing the currency component unfold as well. Therefore should the weakness in stocks continue, we expect to see a further sell-off in USD/JPY. The hawkish comments from Federal Reserve Presidents Lacker and Pianalto suggest that central bankers are happy with the correction. Wholesale inventories and wholesale sales are the only US releases on the docket tomorrow so we do not expect any major price action in the US dollar. Continue to watch the Dow for direction.

...more...

Australian Dollar -- Heading Towards 18 Year Highs?

http://www.dailyfx.com/story/topheadline/Australian_Dollar____Heading_Towards_1181166502887.html

Decade Highs for the Aussie Dollar

Since establishing a market bottom in the beginning of March, the Australian dollar has been ripping higher through every price level. First breaking above 0.7900, then 0.8100 and now it is trading at 16 year highs above 0.8400. What can possibly be fueling the rally? In two words, interest rates.

As always has been the case, higher interest rates help to fuel a currency’s momentum and the Australian dollar is no different. Offering the one of the highest rates in the industrialized world the nation’s central bank, the Reserve Bank of Australia, have increased rates to 6.25 percent, leaving rates steady as of the most recent decision. The rate notion becomes particularly important when factoring in the idea of the recently glamorized carry trade. Paired against lower yielding pairs like the Japanese Yen, investors are able to get their cake and eat it too: interest earnings on the rate differential and the spot price appreciation. As always though, there is the concern that whatever comes up, must come down. That’s true, but right now buying power looks to be on the side of the Australian dollar bull.

Fundamentally Speaking

There’s plenty of interest in the Australian dollar, and not just on the carry trade side. As with any other asset: if there’s solid fundamentals, they will come. The currency has advanced the strongest in 18 years as growth remains healthy and supported in comparison to global trade partners. According to the most recent report by the Bureau of Statistics in Sydney, gross domestic product rose at a healthy 1.6 percent in the first three months of the year, propping up the annualized comparison to 3.8 percent and almost tripling that of the US economy. Attributed to the acceleration in growth has been supported consumer and business confidence as productivity has spurred the lowest employment rate in 32 years in the month of April. This in turn has helped to churn wage costs higher, giving shoppers more bang for their buck. As a result, with appreciating momentum still likely in the cards for the country, the evidence should add to rising valuations in the underlying spot price. The notion is also being helped by current market sentiment that continues to see one more rate hike by Central Bank Governor Stevens & Co. in the third quarter. Higher wages tend to lead to mounting rates of inflation which is still a top priority for the country’s monetary authorities. With current inflation still running at the top end of the current benchmark target, it remains highly likely that short term lending rates will continue to rise above the 6.25 percent. Future expectations support the notion with implied contracts expectant of another 25 basis point rate hike by September of this year. As mentioned before, should rates of return rise, the idea will add considerably to the favoritism of the currency.

...more...

[Ghost Dog]

32. Sterling drops after UK rates held at 5.5%

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B159439b1%2D2c1a%2D40c6%2Da55b%2Dd1caec7b0206%7D

Sterling fell against the dollar on Thursday after the Bank of England kept UK interest rates on hold. The widely expected decision kept the main repurchase rate at 5.5 per cent, but the prospect of future increases helped keep the pound underpinned. UK house price inflation was weaker than expected, rising 10.6 per cent year-on-year in May. Added to recent cooling in producer prices and retail sales the central bank’s decision was made a little easier. But sterling futures still pointed to two further rate increases by the end of the year, taking the main rate to 6 per cent. ”There is now a belief that two additional 0.25 point increases in the repurchase rate will be required to reduce the annual inflation rate to 2 per cent by year-end,” said Paul Chertkow at Bank of Tokyo-Mitsubishi UFJ. The pound fell 0.3 per cent against the dollar to $1.9865, but was little changed against the euro at £0.6774 and fractionally higher against the yen at Y241.21.

-----

Watch on Swiss Franc (CHF), Pound Sterling (GBP)

[Ghost Dog]

37. Scholar: yen depreciation major cause of global imbalance

http://english.peopledaily.com.cn/200706/07/eng20070607_382014.html

A Chinese scholar has claimed that the depreciation of the Japanese yen is malevolent and is the true cause of the imbalance in the global economy.

Wan Xiaoxi, senior researcher with China Southern Fund, said the current round of yen depreciation, which can be described as "malevolent depreciation", has exacerbated imbalances in international payments and encouraged carry trades in yen.

In an interview with China Business News, Wan said that like China, Japan has a trade surplus with most of its partners. He said that Japan's total surplus of 18.3 trillion yen (160 billion U.S. dollars) in 2005 was virtually identical to China's 160.8 billion dollars. Japan's surplus in the first half of 2006 was 9.5 trillion yen (83 billion U.S. dollars), while the comparable figure for China was 91.6 billion dollars.

This similarity belied the two countries' radically different monetary policies: while the RMB appreciates slowly but regularly, the yen has continued to fall.

Since China launched its foreign exchange rate reform on July 21, 2005, the RMB has appreciated 5.8 percent against the dollar, and as much as 14.6 percent against the yen, Wan said.

"All the world's major currencies are appreciating against the dollar -- except for one. The fact is that the currency of the world's second largest economic power has been devalued since 2005 in a malevolent way, and this is the major cause of the global imbalance," he said.

He pointed out that the yen interest rate is two to three percentage points lower than the RMB, and that this resulted in fairly high returns for carry trades between the two currencies.

He warned that if the yen continues to depreciate, then once China lifts its controls on foreign exchange, carry trades between the yen and the RMB could explode and China's forex reserves might blow out to 3 trillion dollars within two to three years.

[mojavekid]

62. Daily Pfennig 6/7/07: New Zealand Surprises with Rate Increase

http://www.kitcocasey.com/displayArticle.php?id=1425

It was a pretty slow day in the currency markets yesterday, as the ECB move was widely expected, and Trichet's comments weren't market moving. The ECB president said that "acting in a firm and timely manner to ensure price stability in the medium term is warranted." The markets needed to hear a more hawkish Trichet, so the euro range traded for most of the day, hovering just below 1.35. While Trichet didn't signal another rate hike is imminent, the markets have priced in at least two more rate increases this year.

In a move that surprised the markets, New Zealand raised interest rates to a record 8 percent, due to increasing inflationary pressures. Housing demand and consumer spending continue to cause the central bank to keep a vigilant eye on inflation. Dairy prices have surged 60 percent in the past six months, boosting farmer's incomes. Bollard said nothing to restrain the currency, and the bias seems to be for more interest rate increases in the future. The kiwi rose to a 22-year high after the surprise interest rate increase.

With two central banks reporting rate increases yesterday, the market's attention moved to the BOE, which was scheduled to announce their rate decision this morning. In a move that was contrary to our thoughts, the BOE left rates unchanged at a six-year high, giving four previous increases time to slow inflation. As I wrote yesterday, this was a perfect time for the bank to make a statement by increasing rates when everyone expected them not to. Unfortunately, it looks like England's Monetary Policy Committee decided against a hike on the grounds that they did not want to surprise the markets. The non-move will only serve to put more pressure on the BOE for a larger move in the third quarter. Inflation has held above the 2 percent target for a year and the bank's own forecasts show higher interest rates are needed to rein in prices.

more...

[UpInArms]

6. Hedge funds slam Bear over subprime losses: accuses it of market manipulation

http://www.reuters.com/article/bondsNews/idUSN0642407920070607

NEW YORK (Reuters) - Hedge fund managers are accusing Bear Stearns Cos. (BSC.N: Quote, Profile, Research) of trying to manipulate the market in securities based on subprime mortgages, the Wall Street Journal reported in its online edition.

The confrontation provides a rare look into the complex trading in the mammoth U.S. mortgage market, which played a critical role in financing the housing boom, and the complicated relationships between hedge funds and investment banks, the paper said.

Hedge funds that had sold short such securities made profits when an index tied to a basket of subprime bonds was falling. But the index has recovered in recent weeks, leading to howls of protest from hedge funds, according to the report.

The chief critic, John Paulson of Paulson & Co., a $12 billion fund, says Bear Stearns wanted to prop up faltering mortgages-backed securities by purchasing individual mortgages that were rapidly losing value to avoid doling out billions in swap payments, the Journal reported.

...more...

[ozymandius]

7. IBM saved about $1.6 billion in tax maneuver: report

NEW YORK (Reuters) - International Business Machines Corp. (NYSE:IBM - news) saved about $1.6 billion last month by using a corporate tax loophole that has since been closed, the Wall Street Journal reported in its online edition on Wednesday.

IBM said it had structured a $12.5 billion stock repurchase to take advantage of funds it earned overseas without making them subject to U.S. corporate tax rates. IBM saved about $1.6 billion in the move, the Journal said, citing a person familiar with the transaction.

http://news.yahoo.com/s/nm/20070607/bs_nm/ibm_taxes_dc

[UpInArms]

8. Squal-Mart Settles Fake Fendi Handbag Suit (sold fakes at Sam's)

http://www.nytimes.com/2007/06/07/business/07walmart.html?ex=1338868800&en=78deffa499c6c892&ei=5088&partner=rssnyt&emc=rss

Fendi, the Italian maker of luxury products, settled a lawsuit yesterday against Wal-Mart Stores that contended the retailer had sold counterfeit handbags and wallets in its Sam’s Club stores.

Fendi, a unit of LVMH Moët Hennessy Louis Vuitton, sued Sam’s Club last year in federal court in Manhattan, accusing it of selling fake Fendi handbags for up to $525. The authentic product retails for $900, Fendi said.

Wal-Mart agreed to pay Fendi an undisclosed sum in exchange for Fendi’s dismissal of the case, according to a statement by the companies.

[ozymandius]

13. Tough May for Wal-Mart

NEW YORK (CNNMoney.com) -- Wal-Mart Stores reported May sales that were at the low end of its forecast as higher gas prices continue to pressure its mostly paycheck-to-paycheck shoppers.

The world's largest retailer said sales at its stores open at least a year, a key measure of retail performance known as same-store sales, rose 1.1 percent last month. It had forecast sales to come in between 1 to 2 percent in May.

Analysts had expected Wal-Mart's sales to rise 1.4 percent, according to Thomson Financial.

For June, Wal-Mart expects sales to be flat to up 2 percent.

http://money.cnn.com/2007/06/07/news/companies/retail_sales/index.htm?postversion=2007060708

[UpInArms]

15. hey Ozy! Check out these sales figures

01. The Gaps Stores May same-store sales down 3%
8:08 AM ET, Jun 07, 2007 - 5 minutes ago

02. The Gap Stores May same-store sales target down 4.4%
8:08 AM ET, Jun 07, 2007 - 5 minutes ago

03. The Gap Stores May sales up 2% to $1.19 bln
8:08 AM ET, Jun 07, 2007 - 5 minutes ago

04. Abercrombie & Fitch May same-store sales down 5%
8:07 AM ET, Jun 07, 2007 - 6 minutes ago

05. Family Dollar May same-store sales up 2.5%
8:05 AM ET, Jun 07, 2007 - 8 minutes ago

06. Family Dollar May same-store sales view up 2%
8:05 AM ET, Jun 07, 2007 - 8 minutes ago

07. BJ's Wholesale May same-store sales up 4.1%
8:04 AM ET, Jun 07, 2007 - 9 minutes ago

08. BJ's Wholesale May same-store sales target up 1.5%
8:04 AM ET, Jun 07, 2007 - 9 minutes ago

09. Macy's May total sales down 2.3% to $1.98 bln
8:03 AM ET, Jun 07, 2007 - 10 minutes ago

10. Macy's May same-store sales down 3.3% vs. view of down 1%
8:02 AM ET, Jun 07, 2007 - 11 minutes ago

11. Dillard's May same-store sales down 2%
8:01 AM ET, Jun 07, 2007 - 12 minutes ago

12. Dillard's May same-store sales target down 1.2%
8:01 AM ET, Jun 07, 2007 - 12 minutes ago

13. Ann Taylor May same-store sales down 4.6% vs. 3.1% down view
7:56 AM ET, Jun 07, 2007 - 17 minutes ago

14. J.C. Penney sees June same-store sales off low single digits
7:55 AM ET, Jun 07, 2007 - 18 minutes ago

15. Activision: Need to correct date on 3,450 options
7:54 AM ET, Jun 07, 2007 - 19 minutes ago

16. Activision: Taking $66.7 million pretax charge
7:54 AM ET, Jun 07, 2007 - 19 minutes ago

17. J.C. Penney May same-store sales target up 0.3%
7:54 AM ET, Jun 07, 2007 - 19 minutes ago

18. J.C. Penney May total sales down 0.4% to $1.38 bln
7:53 AM ET, Jun 07, 2007 - 20 minutes ago

19. J.C. Penney May same-store sales down 2%
7:51 AM ET, Jun 07, 2007 - 22 minutes ago

20. Fred's May same-store sales down 0.2%
7:49 AM ET, Jun 07, 2007 - 24 minutes ago

[ozymandius]

17. more than one reason for these dismal figures

The Gap stores have been in the news about their poor performance. They're shackled by corporate bloat and lethargy - making them slow to adapt to changing trends. It's no secret how quickly tastes can change among The Gap's target crowd.

Abercrombie and Fitch may suffer from a similar fickle target demographic. But then I have little data to support my hypothesis.

High end retailers like Dillard's often weather bad economic times pretty well. This figure is a surprise.

Macy's numbers come as no surprise. Their status as a retailer and product quality have been eclipsed by Bloomingdale's and Dillard's.

But Family Dollar's numbers make me think of one retail truism: their sales increase as family budgets get squeezed. I wonder what the figures for Big Lots, Dollar General Stores and Dollar Tree show.

[UpInArms]

19. here are Dollar General's numbers

02. Dollar General May same-store sales up 4.1% vs. 2.9% est
8:39 AM ET, Jun 07, 2007 - 4 minutes ago

[ozymandius]

20. good numbers

It seems that economic traffic is heading for the low-end retailers.

[MilesColtrane]

39. The Dollar store sales figures will continue to rise...

until half of their Chinese inventories are found to be contaminated with crap.

[ozymandius]

64. unfortunately this is often the case

The lowest-end discount retailers are where one can find toothpaste laced with antifreeze and trans fat fillers in nearly all the foods. This is where the inner-city poor get many of their staple items when the only option is a vendor within walking distance.

[Roland99]

25. More upscale stores starting to take a hit. Those Hummer gas bills having an effect!

[AndyTiedye]

49. They Never Talk about the Walmart BOYCOTT. Boycott's Scare Them

Walmart shoppers are getting squeezed and spending less, but other people aren't getting squeezed into becoming Walmart shoppers. They're going to Costco:

"Costco Wholesale Corp., (COST)), warehouse retailer, reported 7% increase in same-store sales, exceeding expectations of a rise by 5.6%. Total sales in May rose 11% to $5.14 billion."

http://www.123jump.com/market-update/Costco-and-Limited-Brands-Sales-Beat-Estimates/22185/

[gravity]

50. Costco serves a different demographic

The median income of a walmart shopper is about $35k while for a costco shopper it's $75k.

Walmart is losing sales because gas prices hurt the lower income folks the most, not because their customers are going to costco

[PassingFair]

67. Link? n/t

[gravity]

68. here

The Costco model is largely irrelevant for Wal-Mart. Costco shoppers have an average
income of $74,000, which is twice the $35,000 average income for Wal-Mart shoppers (Target is
in the middle with average incomes of $50,000 per shopping family)

http://www.americanprogress.org/kf/walmart_progressive.pdf

[UpInArms]

9. Citigroup and NASD Settle BellSouth Case - swindled retirees

http://www.nytimes.com/2007/06/07/business/07citi.html?ex=1338868800&en=43f10d4454df3b53&ei=5088&partner=rssnyt&emc=rss

NASD, a regulator of brokerage firms, said yesterday that Citigroup will pay $15.2 million to settle claims that its brokers had coaxed employees of the BellSouth Corporation into retiring early on exaggerated projections for investment returns.

Brokers at Citigroup Global Markets in North Carolina persuaded BellSouth employees to cash out pensions by suggesting that the bank could earn them 12 percent annual returns on their savings, the regulator said yesterday in a statement. Citigroup inadequately supervised the brokers, even amid signs of misconduct, NASD said.

NASD fined the bank $3 million and ordered it to pay $12.2 million in restitution through a related class-action lawsuit. It also disciplined three brokers and two managers at the bank’s branch in Charlotte, N.C.

<snip>

“The inappropriate actions of a small group of employees in one office more than five years ago don’t reflect the dedication and commitment of the vast majority of financial advisers in Charlotte and elsewhere who work hard for clients each day,” Citigroup said in an e-mailed statement.

...more at link...

[UpInArms]

10. UBS Agrees to $115 Million Enron Payment

http://www.nytimes.com/2007/06/07/business/07enron.html?ex=1338868800&en=521d4edc490ab322&ei=5088&partner=rssnyt&emc=rss

HOUSTON, June 6 (AP) — The Enron Creditors Recovery Corporation, formerly known as the Enron Corporation, announced on Wednesday that the investment bank UBS had agreed to pay $115 million to settle litigation over the collapse of Enron.

As part of the settlement, UBS will withdraw its claim for about $5 million against Enron. UBS had contended that as an investor in Enron, it had lost the money as a result of the company’s collapse.

The settlement remains subject to the approval of the Federal Bankruptcy Court for the Southern District of New York.

“We are pleased with this settlement, the third we have reached in Enron’s equity transactions litigation,” the chairman of Enron, John J. Ray III, said in a statement. “We look forward to successfully resolving the sole remaining equity transaction case, which remains pending” against Bear, Stearns & Company.

UBS was one of several financial institutions accused of helping Enron create financial structures that hid the company’s true financial condition.

...more...

[ozymandius]

11. Prudential's Out-of-Work Stock Analysts May Land at Hedge Funds

June 7 (Bloomberg) -- Prudential Equity Group's 30 research analysts, who lost their jobs when the unit was shut yesterday, may find new homes at money-management firms.

``Demand is unprecedented for good people, especially for research on the buyside,'' said Henry Higdon, managing partner of New York-based recruiting firm Higdon Partners LLC. ``Senior analysts are being sought at hedge funds.''

Prudential Financial Inc., the second-biggest U.S. life insurer, plans to close its 420-person stock research and trading unit because the division wasn't profitable enough. The research team included Institutional Investor magazine award-winner John Tumazos, who covered mining, metals and paper products.

-cut-

Asset management firms, which relied on investment banks for stock research as recently as five years ago, are building their own teams as their funds swell. Hedge funds, private pools of capital that allow their managers to participate in any profits, oversee $1.57 trillion worldwide, more than double the assets of 2001, according to Hedge Fund Research Inc. in Chicago.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqez7CTSsBUc&refer=home

[ozymandius]

12. Rate concerns could hit stocks again

NEW YORK (CNNMoney.com) -- Stocks looked ready to fall in the early going Thursday as investors will keep an eye on sales reports from major retailers and the yield on the 10-year note that crossed the 5 percent level for the first time in 10 months.

Stock futures fell, indicating a lower open, following a sharp sell-off in stocks Wednesday on interest rate worries.

Treasury prices fell sharply in early trading, which lifted the yield on the 10-year to cross the psychologically significant 5 percent threshold, reaching 5.03 percent, up from 4.96 late Wednesday. Yields have not closed at or above 5 percent since August.

Thursday the major retail chains are due to report May sales. Analysts surveyed by sales tracker Thomson Financial forecast that sales at stores open at least a year, a closely watched retail measure known as same store sales, grew only 2.7 percent in the month, down from the 4.5 percent rise a year earlier, as record gasoline prices in the month may have cut into other forms of consumer spending. Still that would be up from the 0.4 percent rise in April that was the weakest on record.

No. 1 retailer Wal-Mart Stores (Charts, Fortune 500) is forecast to see only a 1.4 percent rise in same store sales, which would be down from the 2.3 percent gain a year ago, but far better than the 1.1 percent decline in April that was the worst the company had ever reported.

http://money.cnn.com/2007/06/07/markets/stockswatch/index.htm?postversion=2007060707

[ozymandius]

14. Benchmark Treasury hits 5%

NEW YORK (CNNMoney.com) -- Bonds tumbled Thursday morning on rising interest rate and inflation concerns, sending the 10-year benchmark's yield above 5 percent, a psychologically significant barrier, and the highest level of the year.

The 10-year benchmark tumbled 11/32, or $3.44 on a $1,000 note, to yield 5.016 percent, up from 4.972 percent late Wednesday. The last time the 10-year yield finished above 5 percent was in August of 2006.

-cut-

The 10-year yield shot up more than a third of a percentage point to near 5 percent in the past month due to signs of strength in the economy, which curbed expectations that the Federal Reserve will cut interest rates from the current 5.25 percent later this year.

Bonds were further pressured by interest rate worries after a series of government reports during the week suggested the Fed would raise rates.

http://money.cnn.com/2007/06/07/markets/bondcenter/bonds/index.htm

[ozymandius]

16. Stocks Poised to Open Mixed

Stocks Point Toward a Mixed Opening After Retail Sales, Ahead of Wholesale Inventories

NEW YORK (AP) -- Stocks pointed toward a lower opening Thursday as May sales reports from major retailers indicated that consumer spending remained tepid.

Many retailers who reported their sales early in the day fell short of expectations, including Wal-Mart Stores Inc.

The market, coming off of two days of heavy losses, will also keep an eye on the Commerce Department's report on wholesale inventories, which are expected to have gained 0.4 percent in April after increasing 0.3 percent in March. Additionally, it will be watching international interest rates, particularly as the United States' own 10-year Treasury yield nears the 5 percent level, which hasn't been reached since August 2006.

http://biz.yahoo.com/ap/070607/wall_street.html?.v=10

[ozymandius]

21. pre-open numbers and blather

08:35 am : S&P futures vs fair value: -4.7. Nasdaq futures vs fair value: -5.8. Still shaping up to be negative start for stocks as futures indications continue to trade well below fair. Meanwhile, investors are sifting through the first of today's three scheduled economic reports. Initial claims unexpectedly fell only 1,000 to 309,000 (consensus 312,000).

That's the lowest level in nearly a month and still indicative of tight labor conditions, hardly the evidence bond traders want to see since high resource utilization remains such a concern for the Fed. The yield on the 10-year note (-18/32) is back at 5.03%.

08:00 am : S&P futures vs fair value: -3.8. Nasdaq futures vs fair value: -7.0. Early indications are again pointing to a lower open for the cash market. As expected, the Bank of England left its benchmark rate unchanged today at 5.50%; however, New Zealand unexpectedly raising rates is fueling an added sense of anxiety among U.S. bond traders who continue to rule out a Fed rate cut anytime soon as global credit continues to wind tighter.

The yield on the 10-year note eclipsed the psychological 5.00% level overnight for the first time since last August; but within the last 15 minutes it has climbed as high as 5.04%, raising liquidity concerns and spiking the futures market to morning lows.

[citizen snips]

22. Toyota's Global Hybrid Sales Top 1M

TOKYO (AP) -- A decade after the first Prius went on sale, Toyota's global sales of hybrid vehicles have hit a landmark 1 million, underlining the Japanese automaker's lead in "green" technology that has changed the face of the auto industry.

Toyota Motor Corp.'s cumulative sales of gas-and-electric-powered vehicles totaled 1.047 million as of the end of May. Of those, nearly 345,000 hybrids were sold in Japan, while 702,000 were sold abroad, the company said in a statement Thursday.

Sales of Toyota hybrids have climbed from just 18,000 in 1998 to 312,500 last year, the company said.

Demand for hybrids, which deliver superior mileage by switching between a gasoline engine and electric motor, has soared amid higher fuel prices and greater consumer concern about pollution and global warming.

more...
http://biz.yahoo.com/ap/070607/japan_toyota_hybrids.html?.v=8

[citizen snips]

23. Rite Aid May Same-Store Sales Rise

CAMP HILL, Pa. (AP) -- Drug store chain Rite Aid Corp. said Thursday its same-store sales, or sales at stores open at least a year, rose 1.7 percent in May, below Wall Street estimates.

Analysts, on average, expected a 2.5 percent increase, according to a poll by Thomson Financial.

Same-store sales is a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.

Pharmacy same-store sales increased 1.9, affected by cheaper generic drug introductions. Front-end same store sales were up 1.4 percent.

more...
http://biz.yahoo.com/ap/070607/rite_aid_sales.html?.v=1

[ozymandius]

24. Markets are open for bidness.

9:36
Dow 13,444.87 Down 20.80 (0.15%)
Nasdaq 2,579.42 Down 7.76 (0.30%)
S&P 500 1,512.75 Down 4.63 (0.31%)
10-Yr Bond 5.043% Up 0.073
NYSE Volume 84,339,000
Nasdaq Volume 85,139,000

09:00 am : S&P futures vs fair value: -5.0. Nasdaq futures vs fair value: -8.5. The stage remains set for stocks to open lower for a third straight day as investors continue to use the recent bump-up in interest rates as an excuse to take another look at equity valuations and lock in recent gains. Of more importance than newfound interest-rate nervousness, though, is the fact that May same-store sales have not bounced back as much as many expected, given such a disappointing April. Wal-Mart (WMT) issuing a cautious June sales forecast is also raising concerns as to just how healthy the consumer really is.

I wonder if a rate inversion is in the near future. Would not surprise me.

[Buttercup McToots]

26. Gold Price May Rise to $1,000 on `Tight' Supply, JPMorgan Says

Gold Price May Rise to $1,000 on `Tight' Supply, JPMorgan Says

By Jesse Riseborough

June 7 (Bloomberg) -- Gold may rise to more than $1,000 an ounce as demand from India, China and exchange traded funds increases and production of precious metal falls, according to JPMorgan Chase & Co., the third-largest U.S. bank.

Gold, which has risen 5.2 percent this year, may reach $850 an ounce in the ``medium term,'' on the way to $1,000, analysts from JPMorgan led by John Bridges said in the report dated June 6. They didn't specify what the medium term was.

Gold-mining companies reduced output to a 10-year low of 2,471 metric tons in 2006, according to London-based researcher GFMS Ltd. Demand for gold from India, the world's largest buyer, rose 50 percent in the first quarter of 2007 while demand in China gained 31 percent, according to the World Gold Council.

``We would continue accumulating gold and silver positions looking to higher prices by year-end,'' the analysts said. ``A four-figure gold price looks quite feasible to us given the tight supply demand situation in the gold market.''

Gold for immediate delivery fell as much as $1.30, or 0.2 percent, to $669.45 an ounce and traded at $670 at 11:56 a.m. Sydney time. Silver for immediate delivery fell 1 cent to $13.69 an ounce.

Demand from this year's Indian wedding season, the Chinese year of the `Golden Pig,' and purchases by exchange traded funds may boost prices, the analysts led by Bridges said in the report.

Investors last year bought more gold than they sold, adding a net 388 metric tons of demand to the market, according to GFMS. Gold last year rose to a 26-year high of $730.40 an ounce.

To contact the reporter on this story: Jesse Riseborough in Melbourne at [e-mail]

Last Updated: June 6, 2007 22:24 EDT
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=att3dm6ELVzk

[Roland99]

27. Mogambo has been pitching Gold/Silver for a while now...

[Ghost Dog]

28. Asian Stocks Are Little Changed; Sony Declines, Cnooc Jumps

http://www.bloomberg.com/apps/news?pid=20601080&sid=aBEIEuY7OgOE&refer=asia

June 7 (Bloomberg) -- Asian stocks were little changed as concern global interest rates will rise dragged on technology and property shares, offsetting gains among oil producers.

Sony Corp. and Sino Land Co. led declines after U.S. labor costs rose more than economist forecasts, while energy shares including Cnooc Ltd. tracked oil higher. China's CSI 300 Index climbed for a third day, damping speculation a rout that erased more than $400 billion of market value will resume.

``We are moving into a phase whereby long-term interest rates will go a lot higher,'' said Chua Soon Hock, who manages about $400 million at Asia Genesis Asset Management Pte in Singapore. ``You need to be defensive and preserve your capital.''

National Australia Bank Ltd. fell after the government said May employment rose almost four times as much as economists estimated, suggesting borrowing costs may increase.

The Morgan Stanley Capital International Asia-Pacific Index fell less than 0.1 percent to 153.12 as of 6:17 p.m. in Tokyo, halting a five-day, 3.3 percent rally. BHP Billiton Ltd. led mining shares lower after metals prices fell.

Japan's Nikkei 225 Stock Average added 0.1 percent to 18,053.38, after earlier dropping as much as 1 percent. Trading companies advanced after Nikko Citigroup Ltd. raised its rating on shares of Sumitomo Corp. and Marubeni Corp.

Benchmarks declined in other regional markets, except for South Korea, Taiwan and Pakistan.

/...

[Ghost Dog]

29. Caution caps HK blue chips, China plays down

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070607:MTFH09573_2007-06-07_08-57-02_HKG310390&type=comktNews&rpc=44

HONG KONG, June 7 (Reuters) - Hong Kong blue chips held steady on Thursday as investors found solace in mostly higher Asian markets, helping to offset morning losses triggered by overnight sell-offs in U.S. and European equities.

Sinopec Corp. (0386.HK: Quote, Profile , Research) was a big drag on blue chips as investors sold Asia's top oil refiner after a recent rally, but those losses were cancelled by CNOOC Ltd. (0883.HK: Quote, Profile , Research), which rose for a sixth-straight session, thanks to recent broker upgrades.

...

Investors stayed skittish amid fresh inflation and interest worries after Wednesday's U.S. government report showed unit labour costs rose higher than expected.

Hong Kong's interest rate cycle tends to track the U.S.'s, since its currency is pegged to the U.S. dollar.

Moreover, not everyone was convinced that the day's strong recovery in mainland equities <.SHSZ300> would be sustained amid talk of more interest rate increases by China's central bank.

"Although the mainland market rebounded substantially, Hong Kong players remain cautious about China," said Kenny Tang, associate director at Tung Tai Securities.

Whether the Shanghai Composite Index <.SSEC> can stay near the key 4,000 level remained a concern, Tang said.

The benchmark Hang Seng Index <.HSI> ended near the day's high at 20,800.16, down 18.45 points. The China Enterprises index of H shares <.HSCE>, or Hong Kong-listed shares in mainland companies, fell 0.7 percent to 10,956.67.

Analysts said the market would stay its range-bound course as it has for the past few weeks, though some were cautiously optimistic.

/...

[Ghost Dog]

34. China's trade deficit in farm produce reaches 100 mln USD from Jan to April

http://news.xinhuanet.com/english/2007-06/07/content_6212790.htm

BEIJING, June 7 (Xinhua) -- China's trade deficit in farm produce reached 100 million U.S. dollars in the first four months of 2007, the Ministry of Commerce (MOC) said here Thursday.

The country's exports of farm produce hit 11.48 billion dollars, up 23.9 percent year-on-year, while imports were 11.58 billion dollars, up 10.4 percent year-on-year.

China's farm produce exports to the European Union hit 1.64 billion dollars, South Korea 1.37 billion dollars, the United States 1.39 billion dollars and ASEAN 1.17 billion dollars, according to MOC figures.

Of the total, private enterprises exported 3.67 billion dollars, foreign-funded companies 4.68 billion dollars and state-owned firms 2.67 billion dollars.

China's trade deficit in farm produce in 2006 stood at 670 million dollars, a decrease of 41.3 percent from the 2005 level of1.14 billion dollars, according to official figures.

[Ghost Dog]

35. China's imports of nonferrous metals rise 76 pct in first four months

http://english.peopledaily.com.cn/200706/07/eng20070607_382020.html

Imports of nonferrous metals in China jumped 76 percent year-on-year in the first four months of 2007, according to the nation's top economic planning agency.

Analysts said China's economy, which expanded 11.1 percent in the first quarter, has boosted its imports of various raw materials and products ranging from oil and iron ore to nonferrous metals.

Imports of non-ferrous metals in the world's fastest-growing economy reached 19.14 billion U.S. dollars between January and April, 76 percent up on a year ago, the National Development and Reform Commission (NDRC) announced. It added that exports had also jumped 34.2 percent year-on-year to 8.56 billion U.S. dollars.

The trade deficit for metals increased 136 percent from a year ago to hit 10.6 billion U.S. dollars for the four months, the NDRC stated.

Imports of bauxite surged 245 percent year-on-year to 6.5 million tons, while nickel ore soared 10.4 times to 3.85 million tons, according to the NDRC.

/..

[mojavekid]

41. Prudent Squirrel: Are world bubbles peaking?

http://www.321gold.com/editorials/laird/laird060707.html

Get this:

China is serious about slowing their stock bubbles. They just increased a stamp tax to .3% on stock sales, formerly a .1% rate. This is not a miniscule amount because it is assessed on every trade - they add up. China has raised interest rates repeatedly, and their senior economic leaders have stated that their stock bubbles are rising too fast. China intends to cool their bubbles. More on that, but they may be the ones to break the entire world financial bubbles - first - judging on the reaction to their February 9% stock declines that led to two weeks of serious Asian market crashes - and one 500 point drop in the US DOW - that led to so much volatility that Dow fell behind in the quotes for several hours that day.
a
China's manufacturing purchasing index declined from 58.6 to 55.7. I posited last week or so that China manufacturing boom will be telegraphed by dropping base metal demand in things like copper, and that commodities would likely telegraph any slowing in China before economic data does.
a
ECBs Trichet, and Bernanke, have just stated - again - that the world financial markets are not taking into account the risk out there - ie they are in a semi euphoria. The last time we heard comments such as these from the ECB - within a month or two, we saw the February stock crashes in Asia led by the Chinese.

snip...

a
It is stated that much of the stock increases in the last year or so are due to corporate buy backs, mergers and buyouts that are taking stock out of circulation in public markets. When this phase peaks there will be perhaps little further impetus to world stock bubbles -
a
Increasing interest rates world wide are putting pressure on all the leverage and margin in world stock markets. Rising interest rates will continue to be a problem till the markets all start to tank. The logic is that, if that happens, central banks will lower interest rates- but if investor sentiment is hit badly, will it be fast enough? With all the leverage, every one and his dog has out - public, corporate, government, and the pan leverage of the Yen carry in all financial markets - I rather doubt the world central banks would be able to effectively rekindle world financial markets if there are crashes that spread further, like the late February crashes in Asia and briefly here in the US - and started with the way over inflated China stock markets.

more...

[Ghost Dog]

30. European stocks extend losses, slide to 4-week lows

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070607:MTFH14768_2007-06-07_12-30-26_L132363&type=comktNews&rpc=44

LONDON, June 7 (Reuters) - European stocks extended losses to trade at their lowest in about four weeks on Thursday, bruised by a fall in U.S. stock index futures after yields on all Treasuries debt securities rose above 5 percent, triggering valuation worries for equities.

By 1220 GMT, the pan-European FTSEurofirst 300 index <.FTEU3> was 0.9 percent weaker at 1,571.7, after falling as low as 1,569.3, its lowest since May 11. The index has lost as much as 3.5 percent so far this week, whacked by inflation and interest rate worries, but is up 6 percent so far this year.

/..

[Ghost Dog]

31. FTSE firms after Bank rate decision

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B3b09746c%2D11de%2D4925%2D9ec3%2D0966bee4529b%7D

After tumbling on Wednesday, London blue-chips rallied modestly at midday on Thursday after the Bank of England announced it decision to hold interest rate at 5.5 per cent. Vodafone led the morning gainers, adding 2.6 per cent to 157.7p after activist investor ECS Assets pressured the telecoms giant to return as much as £38 billion to its shareholders. John Mayo, former deputy chairman of Marconi, is backing ECS’ proposal. Intercontinental Hotels Group rose 1.4 per cent to £13.37 after the Barclay brothers, the hotelier’s largest shareholders, increased their stake in the company to 10 per cent. Talk of the brothers bidding for IHG - which also runs Crowne Plaza and Holiday Inn hotels - has circulated since January, when they announced they had a 5 per cent stake in the company. BAE Systems, Europe’s largest defense company, was trading down 1.7 per cent at 431p after media reports that it paid £1 billion over ten years to the Saudi royal family in connection with Britain’s biggest arms sale. The FTSE 100 gained 17 points, or 0.26 per cent, at 6,539.7 after closing 110 points weaker on Wednesday at 6,522.7, its biggest one day fall since March.

[Ghost Dog]

66. London ends lower after weak start on Wall Street

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B3f32dd37%2D1987%2D4f8c%2D9865%2D90e1f58c62fb%7D

London equities handed back earlier gains by the close of trade on Thursday after Wall Street began trading lower as the yield on the 10-year bond rose above a major psychological level and retailers posted weaker-than-expected sales growth for May. By the close in London, the FTSE 100 fell 0.27 per cent to 6,505.1 while the FTSE 250 lost 1.32 per cent to 11,626.3.

[Ghost Dog]

65. European shares close down tracking weak US stocks

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7Bc8bbe963%2D01bb%2D4068%2Dbdea%2D5dab5bf7b463%7D

European bourses handed back earlier gains by the close of trade on Thursday after Wall Street began trading lower as the 10-year Treasury note’s yield surpassed 5 per cent, stoking concerns among investors that the possibility of a rate cut later in the year is diminishing. By the end of trading, the FTSE Eurofirst 300 fell 1.13 per cent to 1,568.56 while the CAC 40 was down 1.46 per cent at 5,890.49 and the Xetra Dax 30 gave up 1.44 per cent to 7,618.61.

[ozymandius]

36. 10:23 numbers and outdated blather

Dow 13,434.30 Down 31.37 (0.23%)
Nasdaq 2,578.26 Down 8.92 (0.34%)
S&P 500 1,511.57 Down 5.81 (0.38%)
10-Yr Bond 5.047% Up 0.077
NYSE Volume 428,650,000
Nasdaq Volume 384,907,000

10:00 am : The major averages are now trading in split fashion, spearheaded largely by a turnaround in Technology. Helping the Dow inch into the green has been IBM (IBM 102.84 +0.43); but its modest 0.4% advance barely makes a dent in the stock's 3.2% sell-off yesterday.

Intel (INTC 21.58 +0.09) turning positive is also providing notable blue-chip support. The tech sector's best performers, though, are Google (GOOG 524.37 +6.12) and Apple (AAPL 126.28 +2.64); the bellwethers are up 1.2% and 2.1%, respectively. DJ30 +8.78 NASDAQ -3.94 SOX +0.2% SP500 -2.94 NASDAQ Dec/Adv/Vol 1574/930/182 mln NYSE Dec/Adv/Vol 2160/646/84 mln

[ozymandius]

38. gotta dash

See you later folks. I'll check back before the day's bidness closes.

Ozy :hi:

[mojavekid]

40. The Mogambo Guru: Financial Toxic Waste Disposal

http://www.safehaven.com/article-7718.htm

"$503 billion is a lot of collateralized debt obligations, and a whopping 500% increase in three years is enough to make your eyeballs comically spring from your head, as in 'Booiinnnnng!'"

Fortunately, I had been eating a very low-roughage diet for a couple of days, which worked out perfectly to keep me from making a big mess in my pants when I saw that, last week alone, Total Fed Credit was up by $3.7 billion, foreign central banks bought up another $14 billion in government and agency debt (stashing them at the Fed), and another $4.8 billion of actual, in-your-hand cash money was printed up, which comes out to about $35 for each of the 137 million Americans who have a freaking job. In one week! One!

And sure enough, all this new money and credit is showing up in prices, and the Consumer Price Index, as tortured into compliance as it is, is still registering a hefty monthly increase of 0.6%. This doesn't look so bad at first blush, but if you are adept at multiplying numbers by 12, then you a probably aware that this comes to an annual, non-compounded inflation rate of 7.2%, which is in the range of "R", as in "Run, screaming for your life, because inflation is going to eat you alive!"

And inflation in prices is soon to visit the euro region, too, as from Bloomberg.com we get the spooky news that "Money-supply in the euro region grew at close to the fastest pace in 24 years in April" as the M3 money supply "rose 10.4% from a year earlier, after increasing 10.9 in March". Yikes!

Plenty more...

[citizen snips]

42. Rates on 30-Year Mortgages Jump

WASHINGTON (AP) -- Rates on 30-year mortgages rose for a fourth straight week, hitting the highest level in 10 months, as bond markets responded to strong employment growth.

Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.53 percent this week. That was up sharply from 6.42 percent last week and represented the highest point for 30-year mortgages since they averaged 6.55 percent on Aug. 10.

Analysts attributed the increase to recent signs of economic strength outside of the slumping housing market including last week's report that the economy created 157,000 jobs in May, nearly double the April pace.

"Mortgage rates climbed this week owing to market concerns of a tight labor force and wage growth," said Frank Nothaft, Freddie Mac's chief economist.

more...
http://biz.yahoo.com/ap/070607/mortgage_rates.html?.v=1

[Egnever]

45. How will this affect the ARMs?

and wont this put even more pressure on the housing makret making it even harder for people to get out of their houses?

Am I wrong to think prices are going to come down a lot more before they start going back up?

[Gregorian]

46. Some have rate floors or ceilings.

There are a variety of configurations. Some loans are fixed until a certain time. A lifetime cap, or any number of things. Also there are negative amortization caps for when payments don't cover the principal.


If I didn't feel the same way as you I wouldn't have sold my last place and be sitting here in a stinking rental house waiting. I know it's predatory, but it's my turn to have a place darn it. I still can't believe it has taken this long. Prices absolutely have not budged. Inventory has skyrocketed. That is what I see as the first major indication.




Oh, but you are right. with rates going up people will be less able to buy. Therein lies the other facet of this real estate problem.

[citizen snips]

44. Bank of England Holds Rates Steady

LONDON (AP) -- The Bank of England held its key interest rate steady at a six-year high of 5.5 percent on Thursday, following reports that price inflation is slowing in the services sector and that house price growth may be easing.

The bank last raised rates last month after three other rises since August apparently failed to cool inflationary pressures and a buoyant housing market. Even after the European Central Bank raised rates Wednesday by a quarter point to 4 percent, Britain remains atop of the interest rate table of the world's seven wealthiest nations.

Most economists even expect another quarter of a percentage point rise next month as the Bank of England tries to bring Consumer Price Index inflation back to its 2 percent target from its current level of 2.8 percent.

"It remains highly likely that interest rates will rise to 5.75 percent sooner rather than later, and we continue to favor a move in July," said Global Insight's chief U.K. economist Howard Archer.

more...
http://biz.yahoo.com/ap/070607/britain_interest_rates.html?.v=3

[citizen snips]

51. Sector Snap: Apple Suppliers

NEW YORK (AP) -- A bullish note from an analyst estimating that Apple Inc. can sell 45 million iPhones in 2009 boosted the stock of the iPod and computer maker Thursday, but it didn't seem do much for shares of possible suppliers for the highly anticipated gadget.

The estimate "may seem like a bold prediction," wrote Piper Jaffray analyst Gene Munster in a note to investors. But, he added "a number in this area is not as far of a reach as some may think."

Apple stock was flying high, but shares of companies such as Marvell Technology Group Ltd. and Broadcom Corp., both mentioned in the past by analysts as likely suppliers of iPhone components, were mixed.

Apple keeps mum on its suppliers, and until the gadget goes on sale June 29 and is dissected, the companies involved will be the subject of heavy speculation.

more...
http://biz.yahoo.com/ap/070607/sector_snap_apple_suppliers.html?.v=1

[citizen snips]

52. Sector Snap: Airline Stocks Skid

NEW YORK (AP) -- Airline stocks slid Thursday as the price of oil, one of the industry's biggest costs, rose.

The Amex Airline Index dropped 1.4 percent in early afternoon trading, with 10 of its 11 component stocks falling. The index has declined in each of the past three trading sessions, hurt by rising fuel costs and concerns about flagging domestic results.

A barrel of crude climbed 94 cents to $66.90 on the New York Mercantile Exchange.

The index's lone gainer was Frontier Airlines Holdings Inc., whose stock added 5 cents to $6.10. The carrier said late Wednesday its May traffic grew 13.4 percent on a 13.7 percent capacity increase. The Denver-based airline also said its unit revenue -- a key industry gauge that measures revenue divided by capacity -- fell 2.2 percent in May, compared to a year earlier.

more...
http://biz.yahoo.com/ap/070607/airlines_sector_snap.html?.v=1

[Roland99]

53. 2:05pm - Running for the exits

DJIA 13,315.74 -149.93 -1.11%
Nasdaq 2,548.85 -38.33 -1.48%
S&P 500 1,497.07 -20.31 -1.34%
Dow Util 489.29 -14.62 -2.90%
NYSE 9,751.09 -143.92 -1.45%
AMEX 2,309.87 -48.27 -2.05%
Russell 2000 826.51 -14.70 -1.75%
Semcond 476.16 -5.59 -1.16%
Gold future 665.10 -9.50 -1.41%
30-Year Bond 5.21% +0.12 +2.42%
10-Year Bond 5.10% +0.13 +2.64%

[citizen snips]

55. Brazil Cuts Interest Rate 0.5 Percent

RIO DE JANEIRO, Brazil (AP) -- Brazil's central bank slashed the country's reference interest rate by 0.5 percentage points, doubling recent cuts amid continued low inflation and signs of gradual economic acceleration.

The bank's monetary policy committee voted 5-2 late Wednesday to reduce the Selic rate to 12 percent annually, sending it to its lowest level since the committee was established in 1996. The bank has reduced the Selic rate 7.75 percentage points since September 2005.

The move was expected by many market participants, who had complained that the Central Bank was overly cautious about reducing rates.

The National Confederation of Industry welcomed the 0.5-point cut, issuing a statement that "this certainly will create conditions for continuing and intensifying the growth of the Brazilian economy."

more...
http://biz.yahoo.com/ap/070607/brazil_interest_rate.html?.v=2

[citizen snips]

56. AutoZone Shares Edge Up on Buyback

MEMPHIS, Tenn. (AP) -- Shares of AutoZone Inc. edged up Thursday following the auto parts retailer's announcement that its board approved the buyback of an added $500 million of its common stock.

Its stock gained $1.95 to $133.65 in early trading, before falling back to $132.81 in afternoon trading. Over the past 52 weeks, AutoZone shares have traded between $83.81 and $137.66.

The additional $500 million in shares boosts AutoZone's total buyback authorization to $5.9 billion, AutoZone said.

Based on the company's Wednesday closing stock price of $131.70, the buyback would represent about 44.8 million shares. As of March 1, AutoZone had about 70 million shares outstanding, according to a filing with the Securities and Exchange Commission.

more...
http://biz.yahoo.com/ap/070607/autozone_mover.html?.v=1

[citizen snips]

57. General Dynamics Shares Rise 2 Percent

Shares of General Dynamics Corp. climbed Thursday after an analyst raised his stock-price target on expectations that increased demand for armored vehicles will boost the company's revenue.

Lehman Brothers analyst Joseph Campbell raised his target on the defense contractor's stock price to $92 from $85, saying accelerated production of Mine Resistant Ambush Protected, or MRAP, vehicles will help boost the company's combat systems' unit revenue 5 percentage points to an 18 percent gain in 2007.

Last year, General Dynamics posted a 19 percent gain of $6 billion in revenue for that unit.

Shares of the -Falls Church, Va.-based company rose $1.46, or 1.9 percent, to $80.39 in midday trading. Shares traded between $62.19 and $82.41 over the last 52-week period.

more...
http://biz.yahoo.com/ap/070607/general_dynamics_mover.html?.v=2

[citizen snips]

58. Sector Snap: Housing

NEW YORK (AP) -- Homebuilder shares tumbled Thursday after interest rates rose, making it more likely that demand for new homes will ebb further and housing prices will continue to fall.

The sector was also jolted when yet another major builder withdrew its full-year orders and deliveries estimates, giving investors more reason to think the industry won't find the long-sought bottom of its nearly two-year slump any time soon.

Volume builders such as D.R. Horton Inc., Lennar Corp. and Centex Corp. were all down by more than 3 percent in midday trading. Luxury-home builders Hovnanian Enterprises Inc. and Standard Pacific Corp. shot down more than 4 percent. All major companies were trading lower on heavy volumes.

Rising Treasury yields became the latest threat to the struggling housing market when the 10-year government bond reached a 10-month high. That makes it more expensive to borrow money.

more...
http://biz.yahoo.com/ap/070607/housing_sector_snap.html?.v=1

[citizen snips]

59. Sector Snap: Online Retail Trades Mixed

NEW YORK (AP) -- Shares of online retailers traded mixed Thursday, with Netflix Inc.'s shares gaining solid ground for the second day in a row as investors reacted to a rumor that the company could be bought out by Amazon.com Inc.

Netflix shares added $1.15, or 5.1 percent, to $23.75 in afternoon trading.

Speculation that Netflix could be purchased by the online retailer drove shares up as much as $1.44, or 6.5 percent in trading Wednesday.

At the time, Jackson Securities analyst Brian Bolan said talks between the two companies would not be unlikely, as Amazon's stock has traded higher recently while Netflix shares dipped while fending off competition from companies like Blockbuster. Blockbuster runs an in-store and online movie rental service called Total Access.

Amazon shares lost $1.09 to $71.20 in afternoon trading.

more...
http://biz.yahoo.com/ap/070607/sector_snap_internet.html?.v=1

[citizen snips]

60. Sector Snap: Semiconductor Stocks Fall

NEW YORK (AP) -- Semiconductor stocks edged lower in Thursday's trading, along with the broader market.

NetLogic Microsystems Inc., a maker of processors used in networking equipment, suffered some of the steepest losses in the sector, despite bullish comments from CIBC analyst Allan Mishan.

"NetLogic is clearly developing a compelling growth story in the service provider market to augment its existing business in the enterprise (market)," Mishan wrote in a client note published on Thursday.

Shares of NetLogic, which have traded between $17.55 and $35.17 over the last 52 weeks, fell $1.37, or 4.6 percent, to $28.44 in afternoon trading.

more...
http://biz.yahoo.com/ap/070607/semiconductors_sector_snap.html?.v=1

[natrat]

61. 3 gap down days , can we get another? tune in tomorrow

[ozymandius]

63. at the close: blood and eyeballs on the floor

Dow 13,266.73 Down 198.94 (1.48%)
Nasdaq 2,541.38 Down 45.80 (1.77%)
S&P 500 1,490.72 Down 26.66 (1.76%)
10-Yr Bond 5.099% Up 0.129
NYSE Volume 3,538,259,000
Nasdaq Volume 2,421,770,000

4:20 pm : For all of the market bears struggling to have their overbought argument heard for so long, their wrangling was heard loud and clear again Thursday as stocks closed lower across the board for a third straight session.

With the Dow, S&P 500, and Nasdaq up 7.4% already this year, as of Wednesday's close, and recording nearly half of those gains during the historically disappointing month of May alone, another pullback was not all that surprising. That's especially accurate when the bears were armed with everything from soaring interest rates to rising oil prices and May same-store sales figures that were mixed at best after such a disappointing April.

The yield on the 10-year note finally eclipsing the psychological 5.00% level overnight for the first time since last August was the main catalyst setting the stage for another day of profit taking.

Rising interest rates are disconcerting for stocks since higher yields increase the safe-haven appeal of Treasuries and increase the costs of borrowing. That latter issue poses an added concern for the likes of private equity firms whose record pace of leveraged buyout activity has essentially not ruled out any company as a takeover candidate and has helped keep an underlying bid in equities.

Today the yield on the 10-year note soared 17 basis points (at its highs of 5.13%), resulting in the benchmark bond's worst one-day performance in more than three years.

After taking a mild breather yesterday, the bond selling picked up steam after New Zealand unexpectedly raised its benchmark rate to 8.00%. That exacerbated nervousness among U.S. bond traders who have basically ruled out any chance of a rate cut in the U.S. this year. An up-tick in mortgage-related hedging later in session pulled the rug out from under Treasuries where they languished for the remainder.

Pimco's Bill Gross late in the day saying he is now a bear market manager after 25 years of being a bond bull was the final straw that exacerbated the sell-off in equities. Every index closed at session lows.

The Dow, S&P 500, and Nasdaq plunged 1.7% as widespread selling activity closed all 10 economic sectors sharply lower. Only four of 147 S&P industry groups closed in positive territory.

The S&P 400 MidCap Index (-2.1%) and Russell 2000 (-1.9%) fared even worse, which wasn't overly surprising since higher interest rates spark valuation concerns among growth stocks, greatly impacting the borrowing power of smaller and mid-size companies.

Market breadth was unquestionably bearish, as decliners outpaced advancers on the NYSE by a whopping 10-to-1 edge. BTK -3.0% DJ30 -198.94 DJTA -2.4% DJUA -3.3% DOT -1.8% NASDAQ -45.80 NQ100 -1.7% R2K -1.9% SOX -1.7% SP400 -2.1% SP500 -26.66 XOI -1.4% NASDAQ Dec/Adv/Vol 2373/670/2.15 bln NYSE Dec/Adv/Vol 3056/297/1.81 bln