STOCK MARKET WATCH, Wednesday 22 December

[ozymandius]

Wednesday December 22, 2004

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 4 YEARS, 29 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 11 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 65 DAYS
DAYS SINCE ENRON COLLAPSE = 1126
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
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 ON December 21, 2004

Dow... 10,759.43 +97.83 (+0.92%)
Nasdaq... 2,150.91 +23.06 (+1.08%)
S&P 500... 1,205.45 +10.80 (+0.90%)
10-Yr Bond... 4.17% -0.03 (-0.74%)
Gold future... 442.90 -0.80 (-0.18%)





GOLD, EURO, YEN, Dollars and Loonie

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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

---

[UpInArms]

1. daily dollar watch

daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 81.90 Change -0.04 (-0.05%)

GLOBAL MARKETS-Shares enjoy festive rally, euro drifts on data

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?font=Reuters&pv_noticia=MTFH97716_2004-12-22_11-16-09_L22501010

excerpt:

Euro zone investment flows data helped cut the beleaguered dollar some slack after showing a slump in net portfolio investments to 5.9 billion euros in October from 41.4 million in September.

But economists said it was too early to call a top in the euro and an end to the dollar's long-term decline.

"We have had very strong investment inflow in September, so maybe this is a little bit of payback time. It does not suggest a trend reversal of inflows into euro zone economy," Kamal Sharma, currency strategist at Dresdner Kleinwort Wasserstein said.

Also helping the greenback, which traded at around $1.3390 versus the euro and bought about 104.10 yen, was an unexpected fall in the Japanese trade surplus .

...more...

Barnes Group cuts 2004 earns forecast

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38343.3302107176-830373022&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (CBS.MW) -- Barnes Group (B) lowered its 2004 earnings forecast to $1.34 to $1.39 a share from $1.60 to $1.65 a share, due to the resistance by customers to accept price increases and to one-time charges for job cuts and asset writedowns. The maker of metal components said it would reduce its workforce by 5 percent to offset higher raw material costs. The stock closed Tuesday down 23 cents at $27.51.

Foreclosure rate 'scary'

Through October, metro area running 28.4% ahead of 2003

http://www.insidedenver.com/drmn/real_estate/article/0,1299,DRMN_414_3317736,00.html

Almost 10,000 metro-area real estate foreclosures have been filed in the first 10 months of this year, eclipsing last year's tally.

And only a technicality prevented that number from exceeding 10,000. That's because at least two counties - Denver and Arapahoe - decided not to hold foreclosure sales during the week before Christmas.

<snip>

But even without every foreclosure being counted, 9,930 foreclosures were opened through October, 28.4 percent more than the 7,731 in the first 10 months of 2003.

<snip>

"Traditionally, 75 percent of the mortgages were fixed and 25 percent were floating, but I hear that last year that maybe 60 percent to 70 percent of the loans were floating," she said.

...more...

GM plans more white collar job cuts

http://www.woodtv.com/Global/story.asp?S=2722225

DETROIT General Motors says it's making early retirement and buyout offers to reduce its white collar work force.
The automaker has 38-thousand salaried workers, 31-thousand of them in Michigan.The company hasn't announced a goal for the new round of cuts, but they're expected to eliminate hundreds of jobs.G-M has been reducing its white-collar work force as its market share has fallen in recent years, from 39 percent in 1986 to 27 percent today.G-M had 44-thousand salaried workers in 2000.

Detroit faces massive layoffs in 2005

City coffers run dry as tax revenue can’t keep up with expenses

http://www.metrotimes.com/editorial/story.asp?id=7123

With the City of Detroit facing a financial crisis of staggering proportions, Mayor Kwame Kilpatrick is preparing for massive layoffs in the new year to plug a deficit that could surpass $360 million in the next six months.

But it might not take six months for the ax to swing.

If the City Council fails to pass a crucial bond measure when it returns from holiday break, the city would have to lay off as many as 2,000 workers, according to Detroit Auditor General Joe Harris.

And the bond issue is only one of the financial problems facing the city.

The mayor and his financial staff have warned of the need to reduce the workforce for more than a year, and things are only getting worse. Population losses and the economic downturn have aggravated ever-declining tax revenues, and health care costs continue to skyrocket, creating an acute situation.

The mayor has repeatedly promised not to cut police, fire and EMS workers. That leaves a pool of about 7,600 employees who could see their ranks cut by more than 25 percent. Cutting 2,000 of these water and sewerage, lighting, and building and engineering workers will have a devastating impact on city services.

...more...

Have a Great Day Marketeers!

[StClone]

4. Mouse trap set as Market hits 3 year high?

Will there be a bout of "profit taking" as the year ends?

[KingChicken]

6. Buying on low volume, we will see crash, but buying remains strong....

For now the market has some upside, possibly for a few months, but the fundamentals are still poor, we are still losing market base in which to create a sustained rally.

[ozymandius]

10. Profit taking will occur after the year's end.

This kind of rally has happened so many times as not to be even the least bit funny.

Averages go high, despite the lack-luster data, so that year-end bonuses for corporate honchos and market bigwigs go up. The new year bonus arrives when the selloff happens and averages return to more sustainable, unrealistic levels.

[UpInArms]

9. Dollar remains in negative territory despite U.S. GDP

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38343.3694018866-830374424&siteID=mktw&scid=0&doctype=806&

CHICAGO (CBS.MW) -- A report showing a stronger-than-expected upward revision to the broad measure of U.S. economic growth couldn't bring the dollar into positive territory. The dollar remained modestly lower against its Japanese counterpart. One dollar would buy 104.10 yen in morning U.S. trading, down 0.3 percent from Tuesday. The euro was up 0.1 percent at $1.3375.

[ozymandius]

2. "It's the Santa Claus rally."

Santa Claus rally?

Stocks Seen Higher; Oil Eases Before Data

NEW YORK (Reuters) - U.S. stock futures pointed to a higher market open on Wednesday, with oil prices slipping and momentum from Tuesday's rally helping to fuel the market.

Shares of Research In Motion Ltd. (Toronto:RIM.TO - news) (Nasdaq:RIMM - news) fell, a day after reporting a sharply higher third-quarter profit on sales for its BlackBerry wireless e-mail device. Investors were disappointed that RIM failed to increase its sales forecast for the current quarter. RIM shares fell $4.96, or 5.7 percent, to $82.08 in pre-market trade on the Inet electronic brokerage.

Microsoft Corp. (Nasdaq:MSFT - news), meanwhile, lost a European Union (news - web sites) court appeal against sanctions imposed by EU regulators that would force it to change business practices and sell a stripped-down version of Windows.

more...

http://story.news.yahoo.com/news?tmpl=story&ncid=1196&e=1&u=/nm/bs_nm/markets_stocks_dc&sid=95609877

[UpInArms]

5. Ho Ho Ho!

[UpInArms]

3. Today's Reports

Dec 22 8:30 AM
Chain Deflator-Final Q3
report -
briefing.com 1.3%
market 1.3%
last report 1.3%
revised -

Dec 22 8:30 AM
GDP-Final Q3
report -
briefing.com 3.9%
market 3.9%
last report 3.9%
revised -

8:30am 12/22/04 U.S. Q3 CORE PCE UP 0.9% VS 0.7% PREV EST.

8:30am 12/22/04 U.S. Q3 GROWTH LED BY CONSUMER SPENDING

8:30am 12/22/04 U.S. Q3 REVISIONS DUE TO LOWER IMPORTS

8:30am 12/22/04 U.S. Q3 GDP ABOVE CONSENSUS 3.9% GAIN

8:30am 12/22/04 U.S. Q3 GDP UP 4.0% VS 3.9% PREV EST.

U.S. Q3 GDP revised up to 4.0% vs 3.9% prev.

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38343.3542993518-830373838&siteID=mktw&scid=0&doctype=806&

WASHINGTON (CBS.MW) -- Third quarter GDP growth was revised higher to a 4.0 percent annual rate from the 3.9 percent previously reported, the Commerce Department said Wednesday. The second revision to real gross domestic product in the July-through-September quarter was largely due to a decrease in estimated imports. Economists were expecting Q3 GDP to remain unrevised at a 3.9 percent rate. Inflation measures were revised up slightly; the core personal consumption expenditure price index increased at a 0.9 percent annual rate, up from the previous estimate of a 0.7 percent gain.

[UpInArms]

7. Generation Debt: The New Economics of Being Young

http://www.villagevoice.com/issues/0451/russo.php

Paul Casper, a marketing manager in Eugene, Oregon, bought his first house at age 29, shortly after his wife, Peggy, gave birth to their baby girl. That daughter is now 30, shouldering a mountain of college debt and working an hourly job in high tech. She and her fiancé had to postpone their wedding this year because his tech job got outsourced and he hasn't found another yet. Paul thinks she'll be lucky to own a home by 40, even with two incomes.

"When I was 29, I made about $3.75 an hour," he says, "but gas was 25 cents a gallon and $5 bought a week's worth of groceries."

Casper's generation of white-collar parents bought into a version of the American dream in which their children's future would be brighter than theirs had been. Instead, many of these parents are now struggling to help their kids remain in the class to which they were born.

Used to be that if parents could just get their kids through college, they were home free, and their kids would be self-sufficient. Used to be these parents could find some reasonable way to pay for college—save some, borrow some, get their kid financial aid and a part-time job. But with income falling further and further behind the cost of living, parents can pay just a fraction of their kids' tuition, or none at all. Their only option is debt—some for themselves, but even more for their offspring. Kids end up crying out about their post-college debt, but most of their parents have sacrificed a lot to get them that degree, however mortgaged it is.

...more...

[RawMaterials]

23. I liked this paragraph

If you're "lucky" like Queens hairdresser Carol Viola, whose son Joe is now in med school, your parents will die young—at age 70 or earlier—and maybe even leave you money for your kids' education. If you're "unlucky" like Penny Banker-Mertz, a tax preparer in Bay City, Texas, your parents will live long enough to eat up their assets with expensive health care. The money Banker-Mertz planned to use for her son's tuition is now going to pay for an assisted-living facility for her late husband's mother. "As my son so crudely put it," she says, " 'Does Grandma know she has to be dead for me to go to college?' "

http://www.villagevoice.com/issues/0451/russo.php

[UpInArms]

8. OfficeMax cuts outlook over holiday sales

http://cbs.marketwatch.com/news/story.asp?guid=%7BA47796D9%2D6F61%2D4362%2D9D7F%2D4E2FFCA2A2BC%7D&siteid=mktw

NEW YORK (CBS.MW) -- OfficeMax Inc. said it's lowered the company's fiscal 2004 operating income forecast due to sluggish holiday sales.

In a statement late Tuesday, OfficeMax (OMX: news, chart, profile) didn't break out specifically what the holiday-related shortfall would mean for net earnings, saying only that its "2004 operating income is expected to be less than previously forecasted."

The Itasca, Ill.-based retailer and office-products distributor attributed the projected shortfall to poor sales and gross margins during the Thanksgiving-to-Christmas holiday season.

As a result, the company said it expects fourth-quarter same-store sales to be nearly flat.

In October, OfficeMax had projected fiscal 2004 net income of $210 million to $240 million.

<snip>

It was the second straight day of bad news for the company. On Monday, OfficeMax's shares lost more than 4 percent after the company said that it's investigating vendor claims of improper fees and that it would postpone share repurchases until the inquiry is complete.

OfficeMax disclosed allegations that "certain employees acted inappropriately in requesting promotional payments and in falsifying supporting documentation" for about $3.3 million in claims during 2003 and 2004.

...more...

[UpInArms]

11. Raines Falls at Fannie Mae

http://www.thestreet.com/_googlen/markets/marketfeatures/10200345.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA

Under pressure from regulators, Fannie Mae's (FNM:NYSE - news - research) board ousted its top two executives in the midst of a deepening accounting scandal.

CEO Franklin Raines and Chief Financial Officer Timothy Howard were forced out Tuesday. The move came as Fannie's regulator, the Office of Federal Housing Enterprise Oversight, issued a statement indicating that the company is "significantly undercapitalized," suggesting Fannie might not have the financial wherewithal to survive a market shock or similar event.

Raines, who long defended the company's accounting despite mounting evidence that it wasn't proper, issued a statement late Tuesday conceding that "mistakes were made" and saying he would assume responsibility as he had earlier promised.

"I have advised the Board of Directors today that I am retiring as Chairman and Chief Executive Officer of Fannie Mae," said Raines, who joined the company in 1999 after a stint with the Clinton White House. "I previously stated that I would hold myself accountable if the SEC determined that significant mistakes were made in the Company's accounting. Although, to my knowledge, the Company has always made good faith efforts to get its accounting right, the SEC has determined that mistakes were made. By my early retirement, I have held myself accountable."

...more...

If Raines thinks that by "retiring" he has held himself accountable, he is wrong - when will he return his "bonuses"?

[UpInArms]

12. Merrill sees year-end rally for retail sector (practicing comedy routine?)

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38343.3768180556-830374757&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (CBS.MW) -- Merrill Lynch believes the retail sector is poised to rally into the end of the year due to expectations of a strong finish to the Christmas selling season. Analyst Daniel Barry said favorable weather conditions, two extra shopping days between Thanksgiving and Christmas, a rise in gift cards and increased promotional activity are among reasons to believe sales will accelerate over the next 2 weeks. The Retail Holdrs (RTH) , a tracking stock for the retail sector, closed Tuesday up 87 cents at $96.90, up 2.8 percent since the end of October, but down 5 percent since the Nov. 15 close.

[MrUnderhill]

13. Raises an interesting accounting point

Gift card sales are WAY up this year (as are internet sales). Online sales aren't going to show up in "same store sales" figures, and gift cards are not sales.

At least that's how I remember it from accounting. The gift certificate becomes a liability for the company (a reason to NOT buy gift cards from companies that may go under... they usually become worthless since they fall behind all secured debt). It isn't a "sale" until the card is used to purchase merchandise from the store.

So wouldn't this have the effect of delaying some "sales" figures in to the new year when people start cashing in the cards they got for Christmas?

[UpInArms]

14. I agree - that is the basic accounting procedure for "gift cards"

they are liabilities until they are cashed in and the sales cannot be calculated until such time.

here's an update on that retail sector:

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38343.4035939699-830376327&siteID=mktw&scid=0&doctype=806&

Retail shares open slightly off (WMT, S, TGT)
NEW YORK (CBS.MW) -- Retail shares opened fractionally lower Wednesday, with the industry benchmark S&P Retail Index down less than 1 point to 450.83. Sector components dragging the index down included Wal-Mart Stores Inc. (WMT) , which was off 14 cents to $52.46 in recent trading; Sears, Roebuck & Co. (S) , which shed 19 cents to $51.85; and Target Corp. (TGT) , shares of which traded down 28 cents to $50.32 in recent dealings.

[UpInArms]

15. Conflicting views on retailers' stocks

http://cbs.marketwatch.com/news/story.asp?guid=%7B2488BD0D%2D576E%2D46C1%2DB555%2D0D972E7373A0%7D&siteid=mktw

NEW YORK (CBS.MW) -- Banc of America Securities on Wednesday cut estimates for eight major retailers, a move based on lackluster holiday sales, while Merrill Lynch said it expects a year-end rally for the retailing sector in general.

In a note to clients, Banc of America analyst Dana Cohen slashed estimates for AnnTaylor Stores Corp., Federated Department Stores, Gap Inc., Kohl's Corp., Limited Brands Inc., May Department Stores, Saks Inc. and TJX Cos.

"With only a few days left, we suspect that Christmas '04 is turning into a much more lackluster season than even we anticipated (and we were not too optimistic)," said Cohen in a research note. "We recognize that there are some very big days left, both pre- and post-Christmas. However, we are running out of days to make it up."

As such, Cohen's made broad revisions to her fourth-quarter earnings estimates.

...more...

[UpInArms]

16. 9:49 EST numbers and pre-opening blather

Dow 10,760.32 +0.89 (+0.01%)
Nasdaq 2,151.72 +0.81 (+0.04%)
S&P 500 1,205.95 +0.50 (+0.04%)
10-Yr Bond 4.168 0.00 (0.00%)

NYSE Volume 110,254,000
Nasdaq Volume 203,364,000

9:15AM: S&P futures vs fair value: +1.2. Nasdaq futures vs fair value: -3.0. With the second revision to Q3 GDP of little significance and today being the last for earnings reports before the Christmas holiday, a mixed tone in the futures market still reflects a lack of conviction among either buyers or sellers... As such, subdued action continues to suggest a fairly uneventful start for the cash market

9:01AM: S&P futures vs fair value: +1.1. Nasdaq futures vs fair value: -4.5.

8:32AM: S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: -2.0. Futures trade ticks higher ever so slightly, ahead of a modest upward revision to Q3 GDP data, but pull back a bit, still indicating a somewhat mixed start for equities... A final read on Q3 GDP just came in at 4.0% (consensus 3.9%) along with a Chain Deflator reading of 1.4% (consensus 1.3%)

8:00AM: S&P futures vs fair value: +1.6. Nasdaq futures vs fair value: -1.0. Futures market suggesting a mixed open for the cash market... Factors contributing to early market action have been news that Fannie Mae's (FNM) CEO and CFO have been forced to step down, Boeing's (BA) potential $4 bln deal with Japan Airlines and ConAgra's (CAG) better than expected Q2 (Nov) earnings of $0.47 per share, which beat forecasts by a penny... In othe corporate news, Microsoft (MSFT) will be forced to change its commercial practices according to a European Union court ruling...

At 8:30 ET, the Commerce Department will release its final Q3 GDP reading (consensus 3.9%) and corresponding Q3 Chain Deflator (consensus 1.3%)

[UpInArms]

18. 10:34 EST numbers and blather (10,800! WHEE! aiming for 11,000!)

Dow 10,800.59 +41.16 (+0.38%)
Nasdaq 2,156.96 +6.05 (+0.28%)
S&P 500 1,209.19 +3.74 (+0.31%)
10-Yr Bond 42.05 +0.37 (+0.89%)

NYSE Volume 306,709,000
Nasdaq Volume 481,697,000

10:00AM: Major indices continue to hover around the unchanged mark as earnings reports continue to be few and far between heading into the holiday... S&P 500 constituent ConAgra (CAG 27.94 +0.24) reported Q2 (Nov) earnings of $0.47 per share, which were a penny above expectations but 10% under year-ago levels, while A.G. Edwards (AGE 41.83 +0.28) beat analysts' Q3 (Nov) forecasts by $0.07, despite revenues of $639.2 mln coming in a bit lighter than anticipated... The DOE will report its weekly oil inventories report at 10:30 ET...

Crude supplies are expected to drop by 800K while distillate stockpiles are forecasted to fall by 1.13 mln...NYSE Adv/Dec 1326/1048, Nasdaq Adv/Dec 1382/1068

9:40AM: Without much in the way of market-moving news, stocks open slightly lower and remain mixed... Even this morning's upward revision to GDP data has done little to keep yesterday's bullish sentiment intact... The Commerce Department released a final read on Q3 GDP of 4.0%, slightly better than forecasts of 3.9%, and a chain deflator of 1.4% (consensus 1.3%)... While an upward revision to GDP on November 30 prompted some selling interest in bonds, treasuries have also shrugged off the data and barely budged in the early going, as the 10-year note is still off 3 ticks yielding 4.17%...

[UpInArms]

21. updating blather

10:35AM: Market gets a boost following better than expected weekly oil inventories data... Crude supplies rose 2.1 mln barrels (consensus -800K) while distillate stockpiles came in at +600K (consensus -1.13 mln)... Stocks had been trading with a tinge of caution ahead of the data as broad-based gains that pushed every major indice to new highs yesterday had stalled early momentum... Showing some resilience have been homebuilding, materials, financial, airline, networking, retail and utility while sectors under early selling pressure have been disk drive and energy...NYSE Adv/Dec 1612/1226, Nasdaq Adv/Dec 1442/1264

Gotta run and handle RL for a while :hi:

(edited to correct post)

[UpInArms]

17. U.S. industrial output revised slower in 2003, 2004

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38343.4168819329-830376741&siteID=mktw&scid=0&doctype=806&

WASHINGTON (CBS.MW) -- U.S. industrial output in the past two years has not been as strong as previously thought, the Federal Reserve said Wednesday in its annual revisions to production and capacity data. And the steep recession in the U.S. industrial sector in 2001 wasn't quite as steep as previously thought, while the rebound in 2002 was a bit stronger than prior estimates. Industrial production rose 4.3 percent in 2004, not the 4.9 percent that was estimated earlier, while production in 2003 was 1.2 percent, not the 1.5 percent earlier reported.

10:00am 12/22/04 U.S. INDUSTRIAL OUTPUT REVISED SLOWER IN 2003, 2004

10:00am 12/22/04 U.S. 2004 INDUSTRIAL OUTPUT REVISED TO 4.3% FROM 4.9%

10:00am 12/22/04 U.S. 2003 INDUSTRIAL OUTPUT REVISED TO 1.2% FROM 1.5%

[UpInArms]

19. Petroleum Inventories Report

10:34am 12/22/04 U.S. CRUDE STKS UP 2.1 MLN BRLS LAST WK: ENERGY DEPT

10:34am 12/22/04 U.S. DISTILLATE STKS UP 600,000 BRLS: ENERGY DEPT

10:34am 12/22/04 U.S. GASOLINE STKS UP 1.8 MLN BRLS: ENERGY DEPT

[UpInArms]

20. Challenger Gray sees 'vigorous' hiring growth in 2005

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38343.4422107523-830377672&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (CBS.MW) -- Challenger, Gray & Christmas Inc. said Wednesday that it expects "vigorous" hiring growth in 2005 stemming from lower energy prices and health-care costs for employers. The outplacement firm said it expects the most hiring to occur in health care - which is expected to add 3.6 million jobs by 2012 - and construction - which could add 1 million jobs in the same period.

YEAH! Wonder if there's a school that teaches "Bed Pan Changing Etiquette"?

[UpInArms]

22. Fixed mortgage rates rise in latest week: Freddie Mac

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38343.4519308565-830378030&siteID=mktw&scid=0&doctype=806&

CHICAGO (CBS.MW) -- U.S. fixed mortgage rates rose in the latest week, while short-term, adjustable rates edged lower after rising over several weeks, the latest Freddie Mac (FRE) survey, released Wednesday, showed. The 30-year fixed-rate mortgage averaged 5.75 percent, up from last week when it averaged 5.68 percent. The average for the 15-year rate was 5.18 percent, up from 5.11 percent. A one-year Treasury-indexed, adjustable-rate mortgage, or ARM, averaged 4.17 percent this week, down slightly from last week's 4.18 percent.

[loudsue]

24. Thanks for that cartoon.....TOO funny!! LOL!!

That's one of the best cartoons I've seen in a while!

:kick::kick::kick::kick:

[Left Brain]

26. I'll second that!

Great 'toon Ozy, cracked me up!

[MARALE]

25. Market Update

2:00PM: Major averages pull back a bit but remain in positive territory as investors search for opportunities... One of the only notable talking points in the bond market has been Fannie (FNM) business and the question of whether or not the exit strategy of the mortgage giant's CEO and CFO was forced... Treasuries have been under pressure all day but have stabilized at current levels on a light volume trade, with the 10-year note off 8 ticks yielding 4.19%...

Meanwhile, FNM shares, which had surged as much as 4% in early trading in anticipation that management changes would help it alleviate accounting and regulatory concerns, have also leveled off around 72.05 (+1..70)...NYSE Adv
/Dec 1941/1306, Nasdaq Adv/Dec 1707/1360

[UpInArms]

27. closing numbers and blather

Dow 10,815.89 +56.46 (+0.52%)
Nasdaq 2,157.03 +6.12 (+0.28%)
S&P 500 1,209.57 +4.12 (+0.34%)
10-Yr Bond 4.201 +0.33 (+0.79%)

NYSE Volume 1,390,881,000
Nasdaq Volume 1,808,309,000

Close: Stocks extend yesterday's rally, prompted by a better than expected weekly oil report, and keep the major indices at new highs... The market may have shown little follow through during the first hour of trading, but a wave of broad-based buying interest swept through equities after the Energy Department released its weekly oil data at 10:30 ET...

Weekly crude oil stockpiles came in at +2.1 mln barrels, while consensus called for an 800K barrel decline, and showed a 600K barrel increase in distillate inventories (consensus was -1.13 mln barrels), regardless of severely cold weather throughout the Northeast... Crude oil prices ($44.24/bbl -$1.52), which were relatively unchanged ahead of the data, sold off immediately following the report, taking the energy (-1.1%) sector down with it... Airline stocks (+2.6%) took note gaining the most ground and helped offset some modest profit taking in other transportation stocks to keep the Dow Jones Transportation Average near its highest level in years...

Homebuilding (+1.1%) also caught a bid, as mortgage rates increased for the first time in three weeks, while financial (+0.6%) also got a boost following the departure of Fannie Mae's (FNM 71.85 +1.50) CEO and CFO... Meanwhile, blue chip leadership from Boeing (BA 53.94 +0.52), which announced a multi-billion deal with Japan Airlines, along with a recovery in drug stocks, helped offset weakness from Microsoft (MSFT 26.97 -0.10), which lost its court battle with the European Union... The Dow closed at another 3 1/2 year high... Showing the most weakness today was the electronic manufacturing services sector (-4.5%) following two analyst downgrades on Solectron (SLR 5.27 -0.76) after it reported disappointing earnings guidance...

the buck

Last trade 81.99 Change 0.00 (0.00%)

Settle 81.93 Settle Time 15:38

Open 81.97 Previous Close 81.94

High 82.12 Low 81.73

Last tick: 2004-12-22 16:10:46 ET
30-min delayed quote.

[Pegleg Thd]

28. Just remember

That the higher the pukes jack the market the farther it gets to fall!!!!!!:nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: