STOCK MARKET WATCH, Tuesday July 31

[ozymandius]

Source: DU

Tuesday July 31, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 541/font] LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2398 DAYS
WHERE'S OSAMA BIN-LADEN? 2110 DAYS
DAYS SINCE ENRON COLLAPSE = 2071
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON July 30, 2007

Dow... 13,358.31 +92.84 (+0.70%)
Nasdaq... 2,583.28 +21.04 (+0.82%)
S&P 500... 1,473.91 +14.96 (+1.03%)
Gold future... 676.60 +4.30 (+0.64%)
30-Year Bond 4.96% +0.01 (+0.24%)
10-Yr Bond... 4.80% +0.02 (+0.33%)






GOLD, EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

---

Read more: DU

[ozymandius]

1. Today's Market WrapUp

Rinsing the "Spin" Out of the News Cycle
BY ROB KIRBY

What a world we live in, eh? Interesting times. In an increasingly wired world, we all suffer from information overload, don’t we? Sometimes it seems “where to consume one’s news” is just as important as the content. Isn’t it amazing how two news gathering organizations can “cover” the same story or event and leave the consuming public with such subtly different impressions?

Sometimes the differences in coverage are “GLARING” – other times, more subtle.

Last week, for example, Bloomberg’s John M. Berry produced a piece contrasting the “political nuances” of Federal Reserve against those of the European Central Bank. Interesting stuff if you are so inclined. But a subtly included passage in this piece made my blood boil. The offending passage is in red:

July 23 (Bloomberg) -- Contrasts between the Federal Reserve and the European Central Bank are striking, and not just because the ECB has raised interest rates five times in the past year while the Fed has been on hold.

Last week, for instance, Fed Chairman Ben S. Bernanke was questioned at two hearings by dozens of members of Congress who, should they choose, have the power to give him and his colleagues marching orders on monetary policy. The Fed, after all, is part of the congressional branch of the U.S. government…

For those of you who may not know the difference, the Federal Reserve is no more “federal” than Federal Express. The Federal Reserve is a PRIVATE corporation which has been granted a monopoly to produce the nation’s currency out of thin air.

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

[ozymandius]

2. Today's Reports-a-plenty

8:30 AM Personal Income Jun
Briefing Forecast 0.5%
Market Expects 0.5%
Prior 0.4%

8:30 AM Personal Spending Jun
Briefing Forecast 0.1%
Market Expects 0.1%
Prior 0.5%

8:30 AM Core PCE Inflation Jun
Briefing Forecast 0.1%
Market Expects 0.2%
Prior 0.1%

8:30 AM Employment Cost Index Q2
Briefing Forecast 0.9%
Market Expects 0.9%
Prior 0.8%

9:45 AM Chicago PMI Jul
Briefing Forecast 59.5
Market Expects 58.5
Prior 60.2

10:00 AM Construction Spending Jun
Briefing Forecast -0.1%
Market Expects 0.2%
Prior 0.9%

10:00 AM Consumer Confidence Jul
Briefing Forecast 109.0
Market Expects 105.0
Prior 103.9

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

[UpInArms]

15. 8:30 reports: consumer spending flat

01. U.S. Q2 employment costs index up 3.3% yr-on-yr vs 3.5% Q1
8:30 AM ET, Jul 31, 2007 - 1 minute ago

02. U.S. Q2 employment cost index up 0.9% as expected
8:30 AM ET, Jul 31, 2007 - 1 minute ago

03. U.S. June real disposable incomes up 0.3%
8:30 AM ET, Jul 31, 2007 - 1 minute ago

04. U.S. June nominal consumer spending up 0.1% as expected
8:30 AM ET, Jul 31, 2007 - 1 minute ago

05. U.S. June real consumer spending flat
8:30 AM ET, Jul 31, 2007 - 1 minute ago

06. U.S. June incomes up 0.4% vs. 0.6% expected
8:30 AM ET, Jul 31, 2007 - 1 minute ago

07. U.S. core PCE price index up 1.9% in past year, 3-year low
8:30 AM ET, Jul 31, 2007 - 1 minute ago

08. U.S. June core inflation up 0.1% for 4th month in a row
8:30 AM ET, Jul 31, 2007 - 1 minute ago

[UpInArms]

23. Chicago PMI falls to 53.4% in July vs 60.2 in June

16. Chicago PMI falls to 53.4% in July
9:48 AM ET, Jul 31, 2007 - 56 minutes ago

[UpInArms]

24. Consumer Confidence soars to 112.6 - a 6-year high (what are they smokin'?)

04. U.S. July present situation index 139.2 vs. 129.9
10:02 AM ET, Jul 31, 2007 - 42 minutes ago

05. U.S. July consumer expectations 94.8 vs. 88.8
10:02 AM ET, Jul 31, 2007 - 42 minutes ago

06. U.S. July consumer confidence rises to 112.6 vs. 105.3
10:02 AM ET, Jul 31, 2007 - 42 minutes ago

07. U.S. consumer confidence rises to 6-year high
10:02 AM ET, Jul 31, 2007 - 42 minutes ago

08. U.S. May construction spending up rev 1.1% vs up 0.9 prev
10:00 AM ET, Jul 31, 2007 - 44 minutes ago

09. U.S. June construction spending down 0.3% vs up 0.1% expect
10:00 AM ET, Jul 31, 2007 - 44 minutes ago

[54anickel]

31. U.S. consumer confidence highest since Sept. 11

http://www.marketwatch.com/news/story/us-consumer-confidence-highest-since/story.aspx?guid=%7B9161C441-8CE9-4945-B580-475FFE90D7FF%7D

WASHINGTON (MarketWatch) -- In a sign that U.S. economic growth may yet gain momentum, consumers were more positive about the economy and their own finances in July than at any time since the attacks of Sept. 11, 2001, the Conference Board reported Tuesday.

The consumer confidence index rose to 112.6 from a revised 105.3, ahead of expectations of a gain to 106.0. See Economic Calendar.

The present situation index rose to 139.2, also the highest since August 2001, from 129.9 in June, while the expectations index rose to 94.8 from 88.8.
"An improvement in business conditions and the job market has lifted consumers' spirits in July," said Lynn Franco, an economist for the private research organization. "This rebound in confidence suggests economic activity may gather a little momentum in the coming months."

Earlier Tuesday, the Commerce Department reported real consumer spending was flat in June, winding up a weak quarter for consumer spending. See full story.
"The consumer remains the key to keeping the economy from having real problems," wrote Joel Naroff of Naroff Economic Advisers.

The improvement in the July confidence index was largely due to fewer consumers expressing pessimism, but the number of optimists also grew.

more... :shrug: Sumptin in the water? Geomagnetic testing again?

[DemReadingDU]

38. I think they drank the kool-aid

No way is confidence up, the market tanked again today.

[CountAllVotes]

40. consumer ...

CONfidence ... }(

:dem:

[ozymandius]

3. Oil prices up slightly in Europe trading

VIENNA, Austria - Benchmark oil prices inched upward Tuesday as market participants eyed the midweek release of U.S. government data expected to show domestic refinery utilization rose for the sixth straight week.

-cut-

Still, expectations of healthy oil and gasoline stockpiles kept prices in check.

Light, sweet crude for September delivery gained 13 cents to $76.96 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.

The contract lost 19 cents to settle at $76.83 a barrel Monday. It rose more than $2 Friday to $77.02, a cent shy of the July 2006 record close for a front-month contract. The contract hit an 11-month intraday high of $77.33 Monday in a short-lived rally analysts said was fueled by technical buying.

-cut-

U.S. Energy Information Administration data due Wednesday is expected to show U.S. refinery utilization increased last week, with an accompanying rise in petroleum product inventories and a decline in crude stocks, according to a Dow Jones Newswires survey of energy analysts.

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

[ozymandius]

17. Oil inches near record high

LONDON (Reuters) -- U.S. oil climbed above $77 a barrel Wednesday, rising toward its all-time high, on forecasts for another weekly decline in crude stocks in top consumer the United States and a recovery in world share markets.

U.S. crude was up 50 cents at $77.33 a barrel in electronic trading after hitting $77.43, the highest mark since Aug. 8, 2006. London Brent crude was up 58 cents at $76.32.

-cut-

OPEC, which pumps more than a third of the world's crude oil, agreed at two meetings late in 2006 to cut supplies by a total 1.7 million barrels per day. Ministers meet again Sept. 11. Some have said they see no reason to change policy.

-cut-

This year's Atlantic hurricane season has so far spared the United States' oil producing and refining region. The market is keeping a watchful eye on the progress of a gathering storm.

http://money.cnn.com/2007/07/31/markets/bc.markets.oil.reut/index.htm?postversion=2007073108

[Dogmudgeon]

20. Timing oil increases

Is it just me, or has anyone else noticed that when the market recovers from a correction of more than, oh, 100 points, the price of oil goes up?

Any insights on that? Or am I just sinking further into insanity?

--p!

[ozymandius]

4. Shaky time for Bush economic aides

WASHINGTON - Gyrating stock prices. Shrinking nest eggs. Spiking foreclosures on home mortgages. Worries that credit will dry up. It's a high-wire balancing act for the Bush administration's top economic officials as they cope with Wall Street's recent turbulence and the fears and uncertainties left in its wake.

While acknowledging the turmoil, policymakers are seeking to project a calming confidence that the country's economic health is fundamentally solid, and the economy will eventually make its way safely through the choppy waters. They're being careful not to make the problems sound worse than they are, which could spread panic and aggravate the situation. At the same time, they don't want to sound too much like a cheerleader, which can undermine credibility.

"It is a very delicate dance," said Richard Yamarone, economist at Argus Research. "They definitely want to send a message they are watching. But they don't want to overdo it," he added.

-cut-

Delivering the Fed's midyear economic report to Congress earlier this month, Bernanke went out of his way to address the pain the housing slump was causing.

Foreclosures have climbed to record highs as rising interest rates and weak home prices have clobbered some homeowners. Dozens of mortgage lenders dealing in higher-risk home loans to people with poor credit histories have been forced out of business.

http://news.yahoo.com/s/ap/20070731/ap_on_bi_ge/bush_s_economic_high_wire

[Demeter]

18. "Don't Want to Overdo It?" A Little Late for That, I Think!

[ozymandius]

5. GM has profit after big loss a year ago

DETROIT - General Motors Corp. reported a second-quarter profit of $891 million on Tuesday, a huge reversal from the $3.4 billion loss it posted in the same period last year.

It was the third straight quarterly profit for the nation's largest automaker, which cited improved sales, especially in growing markets worldwide.

The profit amounted to $1.56 per share for the April-June period in contrast to a loss of $5.98 per share in the year-ago period.

-cut-

The automaker, though, continued to lose money in its home market, North America, where it reported a net loss from continuing operations of $39 million.

The results surpassed Wall Street expectations.

http://news.yahoo.com/s/ap/20070731/ap_on_bi_ge/earns_gm

[ozymandius]

6. Stocks are poised for higher open

NEW YORK - Stock futures rose Tuesday, as Wall Street prepared to extend its recovery on strong earnings from General Motors Corp. and Sun Microsystems Inc.

Investors also awaited personal spending data from the Commerce Department report, which should give them a better idea about the health of the U.S. consumer.

June personal spending is expected to edge up 0.2 percent, less than May's increase of 0.5 percent, according to the median estimate of economists surveyed by Thomson Financial. June personal income is expected to rise 0.5 percent, up from a 0.4 percent gain in May.

Tuesday's report will also include the government's reading on core personal consumption expenditures, one of the Federal Reserve's preferred gauges of inflation. If the year-over-year core PCE comes in above the Fed's comfort zone of 1 percent to 2 percent, Wall Street's inflation concerns could re-emerge.

-cut-

Merger-and-acquisition activity also helped lift the stock market, which rebounded Monday following a sharp plunge last week on worries that a deteriorating lending environment would dampen dealmaking and growth. The Wall Street Journal reported that its parent company, Dow Jones & Co., and Rupert Murdoch's News Corp. are closer to a deal, and that billionaire investor Nelson Peltz's Triarc Cos. is willing to offer $37 to $41 a share to buy Wendy's International Inc.

http://news.yahoo.com/s/ap/20070731/ap_on_bi_st_ma_re/wall_street

[UpInArms]

7. dollar watch

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

Last trade 80.730 Change -0.113 (-0.14%)

US Dollar Corrects Gains: Bullish Opportunities Await

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/US_Dollar_Corrects_Gains__Bullish_1185883284620.html



Commentary: We wrote yesterday that “very short term charts (15 min) show that the rally from 1.3608 would be in 5 waves on a push through 1.3679. Therefore, we are expecting EURUSD strength for the next day. Potential resistance is at the 38.2% of 1.3852-1.3608 at 1.3701 and the 61.8% at 1.3759.” Our near term view remains the same. That is, we are looking for weakness from 1.3627 to prove corrective and find support near 1.3658 before a stronger rally comes close to testing 1.3852. Price must remain above 1.3608 in order for this bullish scenario to play out.

Strategy: Look to get bullish close to 1.3658, against 1.3608, target 1.3852

<snip>

Commentary: We continue to favor the downside in the medium term. Very short term, the USDJPY may test the 38.2% of 122.43-118.01 at 119.70. The 7/25 low at 119.81 defends this level. Keep an eye on the support line, drawn off of the May 2006 and March 2007 lows. A sustained break of this level would be a strong signal that the USDJPY is headed much lower, towards 117.60 and potentially 115.14.

Strategy: Sell bounce to 119.30/80, against 120.97, target 1 is 117.60

...more...

US Dollar : Has Risk Appetite Returned?

http://www.dailyfx.com/story/bio1/US_Dollar___Has_Risk_1185830684796.html

Today’s rebound in the financial markets has everyone hoping that we have hit a bottom. Stocks, carry trades and bond yields are all up sharply, but given the strong selling that we saw last week, a recovery is hardly surprising. There was no US economic data released today but stronger earnings from Tyson Foods and Verizon helped to draw back some optimism. Even the VIX index, the measure of volatility in the stock market has retraced, but this does not mean that risk appetite has returned. The new record high in the Shanghai stock index suggests that even though global investors are nervous, they are not nervous enough to dump their Asian exposure. Although it may be tempting to hope that August should bring us a calmer market, it is not time to become complacent. Another major announcement of losses could easily send the Dow and high yielding currency pairs tumbling once again. The market has shrugged off news that American Home Mortgage, which commands 2.5 percent of the mortgage market has to delay its quarterly dividend because of major write-downs. AHM specializes in prime and near prime loans, which means that bad loans are extending beyond subprime lenders. Tomorrow we will get a better look at how consumers are bearing the pain. Personal income and personal spending are due for release along with the PCE deflator, Chicago PMI and consumer confidence. A sharp drop in confidence as well as a widening gap between spending and income will resurrect talk of an end of the year interest rate cut. Fedwatcher John Berry claims that it will take more than a few days of market volatility to change the Fed’s stance, but there is a great deal of economic data this week could affect the Fed’s bias. This includes manufacturing ISM, service sector ISM and non-farm payrolls.

...more...

[UpInArms]

8. Paulson says Treasury to hit debt limit in October

http://www.reuters.com/article/businessNews/idUSN3042449420070730

WASHINGTON (Reuters) - Treasury Secretary Henry Paulson said on Monday the government will hit an $8.965-trillion ceiling on its ability to borrow in early October and asked Congress to raise it.

"The actions that are available to the Treasury department to take in order to avoid breaching the statutory debt limit would create unnecessary uncertainty for the financial markets and result in costs to the government," Paulson said in a letter sent to Senate Majority Leader Harry Reid and made public by the Treasury.

"These actions should be reserved only for extraordinary circumstances, and should be avoided," Paulson said.

The U.S. debt limit is set by statute, so the Treasury has to seek Congress' approval for an increase. With both houses of Congress now under Democratic control, the request likely sets the stage for a debate about the Bush administration's management of the economy and of the national debt.

The debt limit was last raised in mid-March of 2006, a $781-billion increase that took it to its current level. That was the fourth time that it had been raised since 2002 and it came after lengthy wrangling.

In theory, if Congress refused to raise the debt limit, it could trigger a debt default if the government was unable to repay money that it borrows by selling securities.

...more...

[UpInArms]

9. U.S. Treasury raises quarterly borrowing estimate

http://www.reuters.com/article/businessNews/idUSN3042506220070730?feedType=RSS

WASHINGTON (Reuters) - The U.S. Treasury said on Monday it will have to borrow more during the third quarter than it previously thought it would, and that it did not pay off as much debt as it expected in the second quarter.

In its quarterly estimate of borrowing needs, Treasury said it will need to borrow $73 billion of net marketable debt in the July-September third quarter, some $31 billion more than it thought in April.

"The increase in borrowing is primarily the result of higher outlays, lower net issuance of state and local government series securities and adjustments in quarterly cash balances," Treasury said in an announcement of its anticipated borrowing needs.

During the April-June second quarter, Treasury said it paid down $139 billion, finishing on June 30 with a cash balance of $25 billion. That was $6 billion less than Treasury estimated in April that it would pay down -- a difference it said was "primarily the result of slightly lower receipts."

Treasury said that, in the October-December fourth quarter, it expects to borrow $74 billion of net marketable debt and to have a cash balance of $30 billion on hand on December 31.

...more...

[UpInArms]

10. Subprime: Let the Blame Begin

http://news.yahoo.com/s/bw/20070730/bs_bw/jul2007pi20070726003656

Who's responsible for the subprime mess? Not us, say the lenders that made risky mortgage loans to consumers. Similar denials come from the Wall Street firms that bought, packaged, and sold the loans to investors; the bond-ratings agencies that said those investments were safer than they turned out to be; and the hedge funds that gorged on them. As the allegations fly, various players are busy issuing disclaimers and pointing fingers at everyone else.

At the center of the controversy are the big bond-rating agencies -- Moody's Investors Service (NYSE:MCO - News), Fitch Ratings, and Standard & Poor's, which, like BusinessWeek, is a unit of The McGraw-Hill Companies (NYSE:MHP - News). These firms are paid by companies to grade their bonds, and investors use those grades when deciding whether or not to invest. The two biggest agencies, S&P and Moody's, have also profited handsomely in recent years by rating collateralized debt obligations (CDOs), or complicated bonds, backed by tens or hundreds of loans and other kinds of debt, that are structured in a way to offer investors higher yields than similarly rated corporate bonds. Sales of CDOs have quintupled since 2001, though neither Moody's nor S&P break out the revenues they receive from rating them. Without the agencies' stamp of approval, many big investors like pension funds and university endowments wouldn't be allowed to buy CDOs. The market, for all practical purposes, wouldn't exist.

<snip>

Two failed hedge funds run by Bear Stearns & Co. (NYSE:BSC - News) did exactly that before telling investors in July that their portfolios were essentially worthless. "How is it that one day they say something is worth 100% and the next day zero?" asks Jacob Zamansky, the attorney who made a name for himself suing on behalf of shareholders during the dot-com meltdown. Zamansky is now readying legal action against Bear Stearns on behalf of investors. The firm did not return calls seeking comment.

The hedge funds are pointing fingers at Wall Street, which took in at least $27 billion in revenues from selling and trading asset-backed securities last year. Investment banks are hunkering down for a fight with regulators, too. The state of Massachusetts is looking into Wall Street's equity research on the stocks of subprime lenders. And Bankers Life Insurance Co., based in St. Petersburg, Fla., is suing Credit Suisse Group (NYSE:CS - News) after losing $1.3 million on mortgage-backed securities, saying the issuer withheld information that would have invited lower ratings on the securities. "Ultimately," says Zamansky, "Wall Street must be held responsible. It facilitated these loans."

Wall Street, in turn, is mad at the lenders that made the bad loans in the first place. Deutsche Bank (NYSE:DB - News), UBS (NYSE:UBS - News), and Credit Suisse are suing mortgage companies for failing to buy back loans headed for early defaults.

...more...

[UpInArms]

11. Subprime Saga: Ten days that changed the tune of IKB

http://news.yahoo.com/s/ft/20070730/bs_ft/fto073020071832547069

IKB's warning that it faced a crisis from the fallout of the US subprime mortgage market came just 10 days after it reassured the market it would not be significantly impacted by weakening property loans.


The shock warning, followed by news that subprime-related losses would cost Commerzbank EU80m ($109m), spread fear among investors that other banks could spring negative surprises and sent shares in German banks falling.

On July 20, IKB said it had enjoyed "a successful start to the financial year", repeated its earnings forecast for the year and played down reports from the credit rating agencies flagging potential problems.

<snip>

It also said it was "in no respect affected" by an analysis from Standard & Poor's of the market for collateralised debt obligations, which may include exposure to mortgages. "It is worth noticing that the bulk of our investments are in portfolios of corporate loans," it said.

On Monday, the bank had to be rescued by its main shareholder, state-owned KfW.

The crisis reminded investors that many financial institutions far away from the fast-paced world of hedge funds and investment banks' trading desks can have large exposures to risky and complex financial instruments, such as the subprime mortgage market.

...more...

[UpInArms]

12. American Home Mortgage tumbles on liquidity issues

http://www.reuters.com/article/businessNews/idUSN3022029520070730?feedType=RSS&sp=true

NEW YORK (Reuters) - American Home Mortgage Investment Corp (AHM.N: Quote, Profile, Research) shares fell sharply on Monday after the company delayed its quarterly dividend, announced "major" write-downs, and said lenders were demanding it put up more cash.

Shares of American Home were down 39 percent, falling in premarket trading to $6.39 from Friday's close of $10.47. Trading was halted for news pending prior to the market open. The shares on Friday hit their lowest level since April 2003.

Late Friday, Melville, New York-based American Home said it was struggling from "unprecedented" disruption in credit markets. The announcement fed investor worries that bad loans are extending beyond "subprime" lenders to providers of home loans to borrowers considered to be good credit risks.

<snip>

"Bankruptcy is not out of the question," said Matt Howlett, an analyst at Fox-Pitt Kelton Inc. in New York. "It needs to find a partner with alternative funding and hope the market turns around. It's going to be tough."

He added, "It's clear now we're in a liquidity crisis. Any loans that aren't pure prime are falling in value."

...more...

[Lucky Luciano]

28. AHM just reopened - down 85%

It is now officially a penny stock - trading at $1.50.

[A HERETIC I AM]

32. On the bright side - the dividend is now over 300% yield!

I just noticed this...they still show a $3.89 dividend! At the current share price (1.13 @ 2:51PM) the yield is 353%

Man! Gotta get me some of that!

Bigcharts.com delayed quote;

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=ahm&sid=0&o_symb=ahm

I have a feeling it won't look like that in the morning.

[specimenfred1984]

36. AHM, $35 a share to $1 a share in a year

Guess that stock didn't go up, LOL.

[A HERETIC I AM]

39. Nope, sure didnt. But you still could have made money on it, LOL

If you had bought August Put contracts 90 days ago, you would have made out just fine.

You must have seen this coming, Fred. Didn't you get on that wagon? Seeing as how you are so well informed, i mean.

[kineneb]

26. circular firing squad? nt

[UpInArms]

13. New Luxury Goods ETF Banks On The Wealthy

http://news.yahoo.com/s/ibd/20070730/bs_ibd_ibd/2007730etf

excerpt:

Banking On The Rich

Companies that cater to their tastes may be a defensive sub-sector within the broader consumer sector, says Christian Magoon, senior managing director of Claymore Securities. It is defensive because spending by the rich is less affected by economic cycles. Hilton would snatch up a $2,000 handbag regardless of gas prices or mortgage rates.

<snip>

About 9.5 million people worldwide own more than $1 million in assets, according to the 2007 World Wealth Report, issued by Merrill Lynch (NYSE:MER - News) and Capgemini. Since 2005, the number of millionaires globally grew 8.3%, said the report. Altogether, the wealthy own $37.2 trillion in assets -- 11.4% more than they did in 2005.

<snip>

The 42-stock portfolio includes locally-listed firms such as Porsche, BMW, Christian Dior, UBS, Credit Suisse and LVMH Moet Hennessy Louis Vuitton.

...more...

[Roland99]

14. 5th! And nice 'toon!

[UpInArms]

16. COLUMN-It'll be a cold day before debt markets reopen:James Saft

http://www.reuters.com/article/bondsNews/idUSL3185031320070731

LONDON, July 31 (Reuters) - Hopes that debt markets will reopen for leveraged borrowers after a pleasant summer holiday will be dashed, leaving mergers and buyouts and the stocks which depend upon them very exposed.

The riskier parts of the debt markets, especially leveraged loans, have all but shut up shop. Hedge funds generally can't get credit from their bank lenders and structured finance isn't buying either.

And it's not just that investors could have a long wait before the debt-powered private equity pipeline starts flowing again, it's also possible that a liquidity crisis prompts defaults and wider economic fallout.

Many deals have been shelved or underwriters forced to actually hold paper they hoped to sell on. Cadbury Schweppes (CBRY.L: Quote, Profile, Research) delayed the sale of its U.S. drink business last week, while sale of loans to Alliance Boots and Chrysler totalling more than $22 billion were postponed.

While the catalyst has been a reassessment of the very loose terms credit markets were offering, caused in turn by losses in the subprime debacle, what we are seeing in debt markets is a classic liquidity crisis.

With both collateralised loan obligations, structured vehicles which bundle debt together, and hedge funds sidelined, and with a huge forward calendar of deals needing to be sold, it is hard to see how debt markets can revive quickly.

...more...

[ozymandius]

19. pre-open blather

09:00 am : S&P futures vs fair value: +8.8. Nasdaq futures vs fair value: +14.0. Futures indications are off their best levels but still point to a sharply higher open for the cash market. Further analysis of the latest data showing that consumer spending in June rose at the slowest pace in nine months may be taking some steam out of early buying efforts. MGIC Investment (MTG) and Radian Group (RDN) disclosing that their investments in residential mortgage issuer C-BASS have been "materially impaired" due to an "unprecedented" amount of margin calls is another blemish amid a largely upbeat morning of news.

However, the tame inflation read and strong Q2 report from General Motors (GM) continue to provide a floor of support. Fellow Dow components Johnson & Johnson (JNJ), which unveiled a plan to save $1.3-1.6 bln next year, and DuPont (DD), which is accelerating its $5 bln buyback program, are also contributing to early follow-through efforts.

08:35 am : S&P futures vs fair value: +13.4. Nasdaq futures vs fair value: +21.0. June personal income rose 0.4% (consensus 0.5%) while personal spending rose 0.1% (consensus 0.1%). The more closely watched core-PCE deflator rose just 0.1% (consensus 0.2%), which assuages inflation concerns as the year-over-year rate stays at 1.9% and within the Fed's "comfort zone." The Employment Cost Index checked in at 0.9%, matching economists' forecasts.

The futures market has held relatively steady but they were strengthening ahead of the tame inflation data and point to an even stronger start for stocks.

[ozymandius]

21. bidness being dealt

9:47Dow 13,451.30 Up 92.99 (0.70%)
Nasdaq 2,599.50 Up 16.22 (0.63%)
S&P 500 1,483.69 Up 9.78 (0.66%)
10-Yr Bond 4.821% Up 0.017
NYSE Volume 348,670,000
Nasdaq Volume 236,710,000

[ozymandius]

22. big 10am bounce

10:10
Dow 13,482.11 Up 123.80 (0.93%)
Nasdaq 2,606.42 Up 23.14 (0.90%)
S&P 500 1,487.24 Up 13.33 (0.90%)
10-Yr Bond 4.816% Up 0.012
NYSE Volume 641,672,000
Nasdaq Volume 433,123,000

[DemReadingDU]

25. Bancrofts accept News Corp. deal

CHICAGO (Reuters) -- Dow Jones & Co. Inc.'s controlling Bancroft family "has accepted" News Corp.'s $5 billion offer to buy the publisher of The Wall Street Journal, an executive of a Dow Jones unit said Tuesday.

"The Bancroft family has accepted," John Prestbo, editor and executive director of Dow Jones Indexes, told reporters on Tuesday in Chicago. "Dow Jones (up $5.43 to $56.99, Charts) "will be part of News Corp (down $0.11 to $22.73, Charts, Fortune 500)," he said.

Prestbo told Reuters the information came from an internal company memo.

Dow Jones' shares were gaining 10.8 percent Tuesday morning on the New York Stock Exchange following the announcement.


http://money.cnn.com/2007/07/31/news/companies/bc.dowjones.reut/index.htm?postversion=2007073111


edit to add more info...
http://www.msnbc.msn.com/id/20032918/

[54anickel]

27. 2:15 and getting by with a little help from some friends

Seems to be doing a bit better than just an hour or so ago...

Dow 13,414.64 56.33 (0.42%)
Nasdaq 2,583.30 0.02 (0.00%)
S&P 500 1,477.89 3.98 (0.27%)
10-yr Bond 4.7980% 0.0060
30-yr Bond 4.9380% 0.0210
NYSE Volume 2,623,747,000
Nasdaq Volume 1,705,879,000

2:00 pm : The major averages are now trading in split fashion as the resurfacing of more subprime concerns takes the wind out of the market's sails. About 45 minutes ago the market began to weaken after American Home Mortgage Investment Corp (AHM 10.47) said that it is unable to borrow on its credit facilities and is struggling to raise money, including "the orderly liquidation of its assets."

Yesterday, AHM was unable to fund lending obligations of approximately $300 mln and it does not anticipate funding roughly $450-500 mln today. The stock closed at $10.47 on Friday, is currently halted, and indicated to open between $1.00 and $1.75 a share. That translates into the elimination of about 83-90% in AHM's market value should the troubled mortgage lender open within that range.DJ30 +22.47 NASDAQ -6.29 SP500 +1.22 NASDAQ Dec/Adv/Vol 1198/1751/1.58 bln NYSE Dec/Adv/Vol 889/2366/1.11 bln

1:30 pm : The market is trading at improved levels as buying remains widespread across most areas. Of the 147 S&P industry groups, however, not all of them are participating in today's reflex rally. Personal Products (-5.0%) is the biggest laggard after Avon Products (AVP 36.35 -2.50) missed expectations on a 25% drop in Q2 profits. Another Q2 earnings shortfall is responsible for earmarking Internet Retail (-3.6%) as today's second worst performer. Before the bell, IAC/InterActiveCorp (IACI 29.15 -1.20) fell short of Wall Street's forecasts.

Biotech (-0.9%) ranks third as Amgen (AMGN 54.34 -1.85) plunges 3.3% on reports that Medicare tightened reimbursement rules for anemia drugs. while Thrifts & Mortgage (-0.7%) rounds out today's 10 worst. The latter is weak after MGIC Investment (MTG 41.42 -4.02) disclosed that its investment in residential mortgage issuer C-BASS has been "materially impaired" due to an "unprecedented" amount of margin calls. DJ30 +87.06 NASDAQ +9.19 SP500 +9.32 NASDAQ Dec/Adv/Vol 1102/1844/1.48 bln NYSE Dec/Adv/Vol 768/2488/1.04 bln

1:00 pm : More of the same for stocks as the blue-chip averages continue to outpace the Nasdaq to the upside. The Tech sector continues to vacillate in and out of negative territory, stalling some of the momentum that within the first hour of trading help vault all three major indices up 1.0% on average.

At its intraday highs, the tech-heavy Composite was finally back above last Thursday's close and in positive territory for the month; but it is now down about 0.6% for the month. DJ30 +73.61 NASDAQ +4.91 SP500 +7.83 NASDAQ Dec/Adv/Vol 1173/1751/1.37 bln NYSE Dec/Adv/Vol 871/2367/944 mln

12:30 pm : No real change in the proceedings as the afternoon session commences. Oil prices, though, are near their best levels of the day as traders price in expectations that tomorrow's EIA report will show a drawdown in weekly crude supplies. Crude for September delivery is now up 1.6% at $78.05/bbl, just $0.35 below the intraday record level reached on July 14, 2006.

Fortunately for market bulls, the Energy sector (+1.4%) subsequently hitting fresh session highs is offering enough needed leadership to offset the commodity's inflationary characteristics. Oil & Gas Storage (+3.8%) now ranks among today's top 10 performing S&P industry groups.DJ30 +81.24 NASDAQ +7.63 SP500 +7.54 XOI +1.1% NASDAQ Dec/Adv/Vol 1172/1736/1.25 bln NYSE Dec/Adv/Vol 840/2364/846 mln

12:00 pm : The major averages are sporting modest gains midday as tame inflation data and a batch of upbeat earnings reports lend further evidence that stocks remain oversold following last week's sizable downturn.

With the Fed still citing inflation as its predominant concern, their favored inflation gauge rising just 0.1% for the fourth straight month has left investors believing policy makers now have more breathing room to justify a rate cut at some point. The year-over-year core PCE rate currently stands at 1.9%, which is still within the Fed's 1.0% to 2.0% "comfort zone."

On the earnings front, Sun Microsystems (SUNW 5.23 +0.34) posting its third straight profitable quarter last night initially helped set a positive tone coming into today's session. Dow component General Motors (GM 33.96 +1.35) swinging to a much larger than expected Q2 profit, however, has been an even bigger catalyst contributing to this morning's respectable follow-through efforts.

Of the 10 economic sectors trading higher, Utilities (+1.4%), Materials (+1.3%), and Telecom (+1.1%) are pacing the way. Renewed confidence throughout the beaten-down and much more influential Financial sector (+0.8%), though, is again the key to a second straight day of trying to recoup what was lost last Friday. The S&P 500 is trading exactly where it closed last Thursday.DJ30 +83.32 DJTA +0.6% DJUA +1.5% DOT -0.3% NASDAQ +7.68 NQ100 -0.1% R2K +0.8% SOX -1.0% SP400 +0.7% SP500 +8.75 XOI +0.9% NASDAQ Dec/Adv/Vol 1251/1651/1.10 bln NYSE Dec/Adv/Vol 867/2317/742 mln

[54anickel]

30. Spoke too soon....2:30 and turning red

Dow 13,355.95 2.36 (0.02%)
Nasdaq 2,576.67 6.61 (0.26%)
S&P 500 1,473.25 0.66 (0.04%)
10-yr Bond 4.7980% 0.0060
30-yr Bond 4.9400% 0.0190
NYSE Volume 2,778,621,000
Nasdaq Volume 1,803,233,000

[girl gone mad]

34. PPT was too early..

couldn't hold back the flood.

[54anickel]

29. WSJ: Murdoch Has Votes to Get Dow Jones

There goes the neighborhood

http://biz.yahoo.com/ap/070731/dow_jones_murdoch.html?.v=20

Murdoch Appears to Have Enough Votes to Secure Dow Jones & Co. Deal, Journal Reports


NEW YORK (AP) -- Rupert Murdoch's bid for Wall Street Journal publisher Dow Jones & Co. appears to have won enough support from the company's controlling shareholders to ensure its passage, the newspaper reported Tuesday.

The Journal reported that a key family trust has reversed its position and decided to support the deal. That likely means Bancroft family members and trusts holding about 38 percent of the total vote are in favor of the takeover by Murdoch's News Corp.

However, a spokesman for the family said that the polling process among Bancroft family members and their trustees was continuing, and that it was premature to conclude that a specific level of support had been reached. The Bancroft family controls a total of 64 percent of the company's shareholder vote through a complex series of trusts.

The vast majority of the 29 percent vote held by public shareholders is expected to approve the deal, but Murdoch's media conglomerate wants to ensure a comfortable margin for passage in the likely event some public shareholders don't vote.

News Corp. has said it would only proceed if it felt there was enough support among the Bancrofts, but it hasn't specified what that level is. A News Corp. spokesman said Monday that the company was "highly unlikely" to proceed with the deal if support from the family remained at the level reported at that time -- about 29 percent.

News Corp.'s board was scheduled to meet Monday at 4 p.m. ET, and Dow Jones directors were set to meet Tuesday evening.

Dow Jones shares rose sharply Tuesday on hopes that a deal was close, and were getting closer to Murdoch's offering price of $60 a share, indicating growing confidence the deal will go through. In afternoon trading, Dow Jones stock rose $6.02, or 11.7 percent to $57.58.

[ozymandius]

33. Who dropped the chocolate bar in the pool?

3:19
Dow 13,331.64 Down 26.67 (0.20%)
Nasdaq 2,569.18 Down 14.10 (0.55%)
S&P 500 1,468.71 Down 5.20 (0.35%)
10-Yr Bond 4.775% Down 0.029
NYSE Volume 3,317,452,000
Nasdaq Volume 2,163,379,000

3:00 pm : The indices are extending their reach to the downside as sellers continue to gain the upper hand. Market breadth is now mixed as decliners on the Nasdaq enjoy the same 16-to-13 margin advancers did just 30 minutes ago. As evidenced by the floor recently falling out of the Financial sector (-0.8%), which was now down more than 1.0% and 2.5% off its best levels of the day, it's again becoming apparent just how disconcerting the underlying concerns about mortgage lending and corporate borrowing have become.

Technology (-1.0%), though, is now the day's worst performing sector and, not surprising, the tech-heavy Nasdaq is sharply lower in sympathy. Not even the Energy sector (-0.1%), despite crude futures surging 1.8% to a new record close above $78/bbl, has been able to maintain its upward momentum. DJ30 -30.36 NASDAQ -17.47 SP500 -5.06 NASDAQ Dec/Adv/Vol 1663/1325/1.98 bln NYSE Dec/Adv/Vol 1458/1804/1.42 bln

[Hugin]

35. Are you sure it was a chocolate bar?

Index Last Change % change
• DJIA 13207.43 -150.88 -1.13%
• NASDAQ 2546.27 -37.01 -1.43%
• S&P 500 1454.80 -19.11 -1.30%

[JNelson6563]

37. Holy Cannolli!

I haven't looked at the markets since way early, maybe it was just futures I saw...something like the DOW up 120 or so?

I am really surprised to see how the day played out.

Well I'm sure CNBC will tell me all about how it's actually a very good thing when I tune in in the morning.

I hope all you Marketeers are stayin' cooler that I am and that nobody lost too much in the casino today.

:toast:

Julie

[UpInArms]

41. PPT Alive and Well: Fed will act on market slide if warranted--Poole

http://www.reuters.com/article/bondsNews/idUSN3124400420070731

WASHINGTON, July 31 (Reuters) - The U.S. central bank is still examining the impact of last week's stock market slide, but would act if this threatened its goals for inflation or employment, a top Federal Reserve official said on Tuesday.

"The Fed doesn't know, and market participants do not know either, the full implications of last week's stock market declines and increases in risk spreads," St Louis Federal Reserve President William Poole said.

Poole said the Fed should not add to the uncertainty by making its own policy less predictable. But if it was convinced about the scale of the risks, it would not stand idle.

"The market understands, I believe, that the Fed will act in due time if and when evidence accumulates that action would be appropriate," he said.

Poole, a voting member of the Fed's interest-setting committee this year, was speaking at a University of Missouri luncheon in Columbia, Missouri. The event was closed to the media, but a copy of his remarks was made public.

<snip>

"The Fed should respond to market upsets only when it has become clear that they threaten to undermine achievement of fundamental objectives of price stability and high employment, or when financial-market developments threaten market processes themselves." Poole said.

...more...

:eyes:

[ozymandius]

43. Do I get this correctly?

A private entity (Federal Reserve) will act on the behalf of private equities markets (NYSE) with an infusion of funds from public sources (taxpayers).

Call me a cynic.

[UpInArms]

44. ding, ding, ding!

we have a winner here!



Sorry about the cynism - it appears what was the servant is now the master.

:(

[AnneD]

46. Give that man.....

a Reggi Bar.:evilgrin:

[ozymandius]

42. the final word on this nastiness

Dow 13,211.99 Down 146.32 (1.10%)
Nasdaq 2,546.27 Down 37.01 (1.43%)
S&P 500 1,455.27 Down 18.64 (1.26%)
10-Yr Bond 4.771% Down 0.033
NYSE Volume 152,047,000
Nasdaq Volume 2,789,550,000

4:20 pm : Monday's bounce was short lived as renewed fears of potential subprime spillover and surging oil prices overshadowed some solid earnings reports, upbeat analyst commentary, and more proof that inflation remains contained.

With pricing pressure still the predominant concern among policy makers, the Fed's favored inflation gauge (i.e. core PCE) rising just 0.1% for the fourth straight month initially helped pave the way for another day of broad-based buying. That left the year-over-year rate at 1.9% and within the Fed's 1.0% to 2.0% "comfort zone," offering further evidence that core prices are falling faster than expected and leaving investors believing the Fed now has more breathing room to justify a rate cut at some point.

Throw in General Motors (GM 32.52 -0.09) swinging to a much larger than expected Q2 profit and an analyst upgrade on fellow Dow component Verizon Communications (VZ 42.75 +1.24) and stocks were on their way to post another strong performance. The Dow was up as much as 140 points while the S&P 500 and Nasdaq, at their best levels early on, were also up more than 1.0% on average and trading above last Thursday's close, effectively wiping out Friday's drubbing.

Nonetheless, the temptation among investors to sell into the market's latest rally became evident less than an hour after the opening bell sounded. At 9:45 ERT, the Chicago PMI checked in with its lowest reading (58.5) since April.

Then, a 1% rise in oil prices to their highest level in a year ($77.60/bbl), in anticipation that tomorrow's EIA report will show a drawdown in weekly crude supplies, a reversal in Health Care, and speculation Apple (AAPL 131.76 -9.67) may cut iPhone production began to take some steam out of early follow-through momentum.

Even though the subprime mortgage problem continues to linger, UBS upgrading bank stocks to Overweight from Equal Weight helped investors initially shrug off MGIC Investment (MTG 38.66 -6.78) disclosing that its investment in residential mortgage issuer C-BASS has been "materially impaired" due to an "unprecedented" amount of margin calls.

The resurfacing of more subprime concerns at around 1:15 ET, however, took the wind out of the market's sails and set the stage for another bloodletting that eventually more than wiped out Monday's reflex rally.

American Home Mortgage Investment Corp (AHM 1.09 -9.38) said that it is unable to borrow on its credit facilities and is struggling to raise money, including "the orderly liquidation of its assets." After being halted for a day and a half, AHM shares finally opened but at a more than 85% discount to where they closed on Friday. The troubled mortgage lender, which was unable to fund lending obligations of about $300 mln yesterday and did not anticipate funding roughly $450-500 mln today, tumbled 89% and took nearly the entire Financial sector down with it.

All 10 economic sectors lost ground, paced by a 1.8% sell-off in Financials that saw a more than 3% swing from its morning highs. Technology was a close second while Industrials and Discretionary also fell more than 1.0%. Not even the Energy sector (-0.95%), despite crude futures surging 1.8% to a new record close ($78.21/bbl), was able to maintain any upward momentum. DJ30 -146.32 NASDAQ -37.01 SP500 -18.64 NASDAQ Dec/Adv/Vol 1812/1237/2.15 bln NYSE Dec/Adv/Vol 1908/1406/1.97 bln

[54anickel]

47. Zowie!!! When this whole fiasco started last week I told hubby it'd probably

bottom somewhere just below 13K...I was just blowing smoke outta my ass. Heck, at this rate it just may happen, there sure wasn't the usual EOM influx. 13K might be looking pretty good, though hard to obtain by mid-August. :evilgrin:

[ozone_man]

48. Might you be underestimating?

13K as a bottom? I would think that would be more of the kick off point for some really deep diving. :evilgrin:

[UpInArms]

45. Sowood hedge fund collapse sparks fear, little else

http://www.reuters.com/article/bondsNews/idUSN3124622720070731?sp=true

BOSTON, July 31 (Reuters) - Hedge fund Sowood Capital's spectacular collapse this week sparked fears more funds may be on the brink, but its impact on the overall health of the industry will be small, investors and analysts said Tuesday.

The Boston-based hedge fund, which managed money for Harvard University, lost roughly half of its $3 billion in capital in less than a month, becoming the first high-profile victim of the recent credit market woes.

People who passed on Sowood when Jeff Larson launched the fund three years ago called the decline "unbelievable" and "shocking" on Tuesday, and several blamed weak risk management for the fund's death spiral.

These hedge fund investors also said the bad fortune of Sowood clients would be more personally painful than harmful for the broader $1.75 trillion hedge industry, where returns for July were flat, according to data from some industry trackers.

<snip>

"For the next month, we are not going to be out of the woods quite yet," said Charles Gradante, principal at Hennessee Group, which invests in hedge funds and tracks their returns.

...more...