STOCK MARKET WATCH, Friday 5 August

[ozymandius]

Friday August 5, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 169 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 228 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 292 DAYS
DAYS SINCE ENRON COLLAPSE = 1349
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
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

AT THE CLOSING BELL ON August 4, 2005

Dow... 10,610.10 -87.49 (-0.82%)
Nasdaq... 2,191.32 -25.49 (-1.15%)
S&P 500... 1,235.86 -9.18 (-0.74%)
10-Yr Bond... 4.30% -0.04 ((-0.83%)
Gold future... 443.70 +1.00 (+0.23%)

GOLD, EURO, YEN, Dollars and Loonie




PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Martin Goldberg

TECHNICAL OBSERVATIONS ABOUT THE CURRENT STOCK MARKET RALLY

The stock market rally off of the late April bottom is quite impressive and has been profitable for the early and confident traders. You can say what you will about the lack of fundamental underpinnings of such a rally. From this standpoint, investors should, “sell ‘em all!”. While stocks are at excessive valuations, oil and interest rates are at significantly higher prices than when the rally began. The market should be going down, but it doesn’t always do what it should. Yet you cannot deny the happy and profitable ride taken by traders who have chosen to chase this rally because in simple terms, “the market is going up”. Tonight, I’ll look at the rally, which although generally overbought and due for a correction, still deserves the utmost respect.

Rally without a Pullback

The most significant aspect of the rally is that patience has only been punished. The rally took off with 3 impressive rally days carrying the S&P 500 from 1146 to 1186 – a gain of about 4 percent, which occurred on consecutive days of increasing volume. If you waited for a pullback to enter a buy order, you were disappointed, as the S&P only meandered upward in late May and early June to about 1220. This resulted in a rally gain of over 6% to that point, all without a significant pullback. When a pullback finally did occur on the 24th and 23rd of June, it occurred on increasing volume and decisive “down” days. When viewed together with the earlier low volume meandering up, it appeared that the probability favored a market downtrend more that a continuation of the rally. Some of this suspicion may have appeared to be confirmed on the morning of July 7th, when news of the London terrorist attacks was broadcast. Yet when the market actually gained on that day, the positive sentiment incited a second phase of the rally occurring with a backdrop of generally better-than-expected 2nd quarter corporate earnings reports. If a terrorist attack could not bring down the market, then apparently, nothing could. In retrospect, this was a good entry point and waiting for another pullback was, (to date) not fruitful.

-cut-

Rally without a Pullback

The most significant aspect of the rally is that patience has only been punished. The rally took off with 3 impressive rally days carrying the S&P 500 from 1146 to 1186 – a gain of about 4 percent, which occurred on consecutive days of increasing volume. If you waited for a pullback to enter a buy order, you were disappointed, as the S&P only meandered upward in late May and early June to about 1220. This resulted in a rally gain of over 6% to that point, all without a significant pullback. When a pullback finally did occur on the 24th and 23rd of June, it occurred on increasing volume and decisive “down” days. When viewed together with the earlier low volume meandering up, it appeared that the probability favored a market downtrend more that a continuation of the rally. Some of this suspicion may have appeared to be confirmed on the morning of July 7th, when news of the London terrorist attacks was broadcast. Yet when the market actually gained on that day, the positive sentiment incited a second phase of the rally occurring with a backdrop of generally better-than-expected 2nd quarter corporate earnings reports. If a terrorist attack could not bring down the market, then apparently, nothing could. In retrospect, this was a good entry point and waiting for another pullback was, (to date) not fruitful.

-cut-

Today’s Market

All major US stock market indices were down today on relatively high volume, led by the recent leadership sectors such as semi-conductors down 2.4%, retailers down 1.8%, small caps down 1.4%, and biotech down 1.8%. Notable in its bearish action was Nordstrom (JWN), which, until about a week ago, appeared to be going up because it was going up. Those who decided to hop aboard on its apparent healthy correction were punished with a one day 8% loss, as July same store sales disappointed, and July sales in many retailers disappointed.

more...

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

[54anickel]

24. Small caps again Ozy. Bit reminiscent of the dot.com days?

snip>

Speculative Blow off?

There is a fair amount of good discussion in various media outlets suggesting that the stock market may be in a final phase of a speculative blow off. (see). To this discussion, I will add the relative performance of small cap stocks versus mid-cap stocks as another possible piece of evidence suggesting a possible speculative blow off. The beginning of the bull market was characterized by the leadership of small cap speculative names. Cynics referred this as a “flight to garbage”. Following what appeared to be a market top, the more liquid and stable mid caps took market leadership from small cap stocks. And recently, it appears that the leadership torch has now been passed from mid cap stocks back to small caps. Is this a final curtain call for “garbage”? While this smells like a blow off, there is no telling (from the smell) how high and far this thing will go. It is likely that many institutional investors are just holding their noses and buying. “When the world appears to have gone mad, you must emulate them to some degree.”

[ozymandius]

70. like a castle built upon a woodframe foundation

This is what scares the jeebus out of me. Plus a combination of things: speculative pumping by the "me too" crowd that filled the dot-commies with hot-air hype; speculative pumping by institutional investors that are pushing their startup product; and just plain old pumping by 990N when the proles get short of "resolve" - whatever that is*.

EDIT:
*maybe an unwillingness to "hold stocks over the weekend" or some such drivel.

[54anickel]

72. What do you suppose will happen when the institutional investors

start to diverisfy into the 30 year treasuries in spring? That may help to make up for reduced treasury purchases by the CBs, but who's gonna pick up their slack in the stock market? Or is that where the SS piratization comes into play? Seems it's a never ending game of "borrowing from Peter to pay Paul".

Round and round and round she goes, where she'll fall - nobody knows. But Chopper Ben's ready at the press. :eyes:

[ozymandius]

84. That is a great question.

Since the CBs are diversifying their currency holdings - and less money will expectedly flow into the short term bond auctions - where will the big money come from? Thin air? The thought of thin air currency makes me shudder at the thought of the U.S. becoming another Weimar Republic.

[UpInArms]

2. daily dollar watch

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

Last trade 87.86 Change +0.06 (+0.07%)

FOREX-Dollar falls ahead of U.S. payrolls report

&cap=A%20Chinese%20bank%20employee%20counts%20U.S.%20dollar%20notes%20at%20the%20Bank%20of%20Beijing%20July%2022,%202005.%20%20REUTERS/Jason%20Lee

NEW YORK, Aug 4 (Reuters) - The dollar weakened against most major currencies in a seesaw session on Thursday as dealers adjusted positions ahead of Friday's July U.S. employment report.

The euro powered to a fresh 2-month intra-session high of $1.2402, according to Reuters data, while the dollar tumbled to a two-month low against a basket of currencies.

More talk of central banks selling dollars, stop-loss sell orders and relatively thin markets conspired to push the dollar lower against most currencies except the yen.

"It's positioning ahead of tomorrow's non-farm payrolls," said Charmaine Buskas, foreign exchange analyst at West Chester Pennsylvania-based Economy.com. Investors "are on the sidelines ahead of big economic data, and in particular tomorrow's non-farm payrolls."

Analysts expect another month of solid employment gains in July, with median estimates pointing to the creation of about 183,000 jobs, according to a Reuters survey.

...more...

Yen weakens on fears of government collapse

http://news.ft.com/cms/s/46a7fcd0-04cd-11da-97da-00000e2511c8.html

The yen weakened once again on Thursday, falling to its lowest level against the Australian dollar since 1998, amid growing concerns that the reform-minded government of prime minister Junichiro Koizumi could be on the verge of collapse.

Mr Koizumi has threatened to dissolve parliament and call a snap election if a bill to privatise the postal service is defeated in Japan’s upper house.

Indications that the vote, which was expected to be held today, has now been put back to next week have fed speculation that Mr Koizumi is struggling to win sufficient support.

A number of fund managers are reported to have expressed concerns that political turbulence could disturb the steadily improving economc environment.

...more...

Have a Great Day Marketeers!

[UpInArms]

3. Today's Reports:

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

Aug 5	8:30 AM	Average Workweek	Jul	-	33.7	33.7	33.7	-	
Aug 5	8:30 AM	Hourly Earnings		Jul	-	0.3%	0.2%	0.2%	-	
Aug 5	8:30 AM	Nonfarm Payrolls	Jul	-	175K	180K	146K	-	
Aug 5	8:30 AM	Unemployment Rate	Jul	-	5.0%	5.0%	5.0%	-	
Aug 5	3:00 PM	Consumer Credit		Jun	-	$4.0B	$6.0B	-$3.0B	-

[UpInArms]

8. reports piling in:

8:30am 08/05/05 U.S. JULY RETAIL JOBS UP 50,000, MOST IN 5 YEARS

8:30am 08/05/05 U.S. JULY LABOR PARTICIPATION RATE RISES TO 66.3%

8:30am 08/05/05 U.S. JULY MANUFACTURING JOBS FALL 4,000

8:30am 08/05/05 U.S. MAY, JUNE PAYROLLS REVISED HIGHER BY 42,000

8:30am 08/05/05 U.S. JULY AVERAGE WORKWEEK STEADY AT 33.7 HOURS

8:30am 08/05/05 U.S. JULY AVERAGE HOURLY EARNINGS UP 0.4%

8:30am 08/05/05 U.S. JULY JOBLESS RATE STEADY AT 5% AS EXPECTED

8:30am 08/05/05 U.S. JULY PAYROLLS UP 207,000 VS.183,000 EXPECTED

[UpInArms]

9. spike in NPF

U.S. July payrolls rise 207,000

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38569.3543228935-840048614&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Hiring stepped up in the United States in July as 207,000 jobs were added to nonfarm payrolls, the Labor Department said Friday. The unemployment rate remained at 5%, the lowest in 47 months. Job growth was slightly stronger than the 183,000 expected. Payrolls in May and June were revised higher by a cumulative 42,000. Average hourly earnings rose by 6 cents, or 0.4%, to $16.13. It was the biggest gain in hourly earnings in a year. 2.7% in the past year, just ahead of the 2.5% inflation rate. The average workweek was steady at 33.7 hours in July, as expected. Service-producing jobs rose by 203,000, including 50,000 in retail, the most in more than five years. Factory jobs fell 4,000.

Will look for the report - wonder how many were birth/death related?

[UpInArms]

10. more details

http://www.marketwatch.com/news/story.asp?guid=%7B3837FE34%2D2283%2D4C2C%2D827A%2D9150E310789B%7D&siteid=mktw

excerpt:

Jobs in manufacturing industries fell by 4,000, although a majority of manufacturing industries were hiring in July, the first time that's been true in a year.

Construction jobs increased by 4,000.

Service-producing jobs rose by 203,000, including 50,000 in retail, the most in more than five years.

Leisure and hospitality industries added 33,000 jobs, as did professional and business services.

Education and health care added 21,000 jobs.

...more...

[UpInArms]

15. U.S. July jobs report has 'whiff of higher inflation'

(I do believe there's a "whiff" of something else :eyes: )

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38569.3709618287-840051180&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- The July unemployment report contains a hint of higher prices, and ensures the Fed will continue on its measured pace of rate hikes for at least the next two meetings, said Avery Shenfeld, economist at CIBC World Markets. Average hourly earnings rose 0.4% in July, the fastest pace in a year "and gives the report a whiff of inflation," Shenfeld said. "These are the kinds of numbers that make it a no-brainer for the Fed to raise rates at the next meeting and the meeting after that," Shenfeld said.

[AnneD]

47. Morning Marketeers

:donut: We haven't seen some of the announced layoffs yet, and the war on terra in Iraq seems to have going well for the insurgents...Death has NOT taken a holiday. My money is on a net job loss. I know too many HR types that tell me they get hundreds of apps for one job and have heard from the parents of recent grads that tell of their kids sending out thousands of resumes and landing job interviews and offers for either temp and no bennies or job positions so low that college was unneccessary. How are these new grads figured in on the labour stats. They are not drawing unemployement as they have not as yet been employed. Anyone know off hand how they are tracked? Have a good day...and watch out for the bears...

[UpInArms]

4. Oil nears record on U.S. refinery snags

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-08-05T114633Z_01_SP25321_RTRIDST_0_BUSINESS-MARKETS-OIL-DC.XML

LONDON (Reuters) - Oil climbed on Friday to within 50 cents of its all-time high as U.S. refinery outages hampered efforts to meet strong demand growth in the world's biggest consumer.

U.S. light sweet crude rose 66 cents to $62.04 a barrel, 46 cents below the record high hit on Wednesday at $62.50 a barrel.

London Brent crude gained 76 cents to $60.88 a barrel, 38 cents off the record-high of $61.26.

"It's no secret that refineries are the problem. There wouldn't be a problem if there was any slack in the system," said Tony Nunan, a manager at Mitsubishi Corp.'s international energy business in Tokyo.

A half-dozen refineries in the United States have been forced into unplanned shutdowns since late July and some have had to delay planned restarts, leaving the market on edge after U.S. gasoline stocks fell a sharp 4 million barrels last week.

Inventories have fallen into the lower half of their seasonal average, while demand is running 1.1 percent stronger than last year with a month left in the summer season.

...more...

[radfringe]

6. we got hit with a big ouchie

had to order some heating oil today (our hot water comes off the boiler)

$1.95/gallon and this is summer time -- hate to see what's it will be this winter...

meanwhile - local gas prices jumped a dime over night -- On wednesday it was $2.19 - by Thursday morning - $2.29

I don't know how much more of this "tinkle-down bush*t economy" we can afford....

[UpInArms]

7. I got my heating oil shock last month

it was $2.08 a gallon.

I hope that I don't need more to get through the winter - I just hate to even try and think about where it could be by next year.

[CGrantt57]

14. Try this on for size...

Consider yourself lucky.

$2.08 is a bargain.

The wife opened the latest bill from the heating oil company to find that on our budget plan, oil is now $2.64 a gallon.

I have a three hundred gallon tank that I fill at least twice a season.

That's at least $1500 for oil.

And they don't even provide a lubricant.

I know.

I asked.

[UpInArms]

17. Welcome to DU, CGrantt57!

GACK! $2.64 on a "budget plan"?????

I don't think my "budget" would be able to absorb that -

I fear a cold winter :scared:

[CGrantt57]

44. Well, it is New Yawk...

Apparently we pay more up here, because, well...

we just do.

Now, I'm not gloating mind you, my wife and I can easily afford the price of oil.

However, my real concern is for friends and acquaintances who will have a seriously difficult time this winter.

In a way, I'm glad my father in law passed last winter. The heating bills this winter would have killed him.

And, thanks for the welcome. I do appreciate it.

[AnneD]

49. When I lived in NM

I noticed electricity and propane were outrageous. Our electricity bills were cheap as we lived in the mountains (no AC) but winters were so expensive (propane heaters). And wages were so low. Employers would say, well, the cost of living was so low. BULLSHIT! The airlines, phone companies, etc don't give a geographical discount. Then they hawk the scenery....well you can't put sunshine in the bank. I just could not justify the income/expense difference....which is why I live in Texas now and vacation in NM.

[whatelseisnew]

16. Supply and demand? This has been bugging me...

Why does the price of crude rise when it cannot be refined.

I can understand the price of gas, heating oil and other products rising, but if there is less refining going on then there must be

crude piling up somewhere and therefore the price should drop, no?

what say ye marketeers?

[UpInArms]

19. I'm no expert and I broke my crystal ball years ago

but from my limited view, here's what it looks like to me:

OPEC is producing at the highest output rate since 1979
Unregulated hedge funds skew the markets
The dollar (in which oil is priced) has dropped precipitously since 2001 (was over 120 on the index at that time) - oil would travel in an inverse ratio
China's demand for oil has increased exponentially
War and chaos in the ME has made everything unstable

:hi:

[CGrantt57]

45. The Cynic says...

The oil companies have the market, the prices, and the consumer right where they want them.

It's always amusing to me that the price goes up at the mere mention of any kind of problem with oil.

I've watched the price since I was paying 29.9 cents a gallon back in 1974.

After the big hump over a buck because of the OPEC embargo, things kind of settled in for awhile.

Then, I noticed an interesting trend.

About once every two or three years, the price would mysteriously rise by 40 or so cents. Everyone would scream bloody murder; the democrats (and republicans) would scream for an investigation. Well, after awhile the oil companies would issue statements to the effect that they were "amortizing their losses," or needed to "upgrade their equipment to keep America supplied with the finest gasoline available," or some such horseshit.

Then, the price of gas would fall by 20 cents. Most folks would sigh with relief and say, "Hell, $1.50 ain't bad. I was afraid it was gonna stay at $1.70!"

Of course, they were totally unmindful of the fact that the price had just permanently risen by 20 cents, which is what the oil companies wanted after all...

Nobody ever went broke underestimating the intelligence of the American people.

:tinhat:

[AnneD]

55. You have described....

the boiling frog theory. Take a frog, place him in boiling water and he hops out. Put a frog in a pan of cool water and place it on a burner. The water heats up so gradually as to go unnoticed until it is too late.

[Delphinus]

62. Hi and welcome!

What do you say to people that, in today's dollars, we're paying less than when Raygun was in office? That one always stumps me - it "sounds" right but it sure doesn't "feel" (in the gut) right.

[CGrantt57]

64. Well, being a smartass....

I'd probably comment that it sounds like something Ronny would say in his last few days on the planet.

Kinda like that "trees cause more pollution than people crap."

Either that, or a simple, "Yeah, bullshit" will do.

[ozymandius]

86. From one smartass to another -

welcome to DU and to the Stock Market Watch thread! :hi:

:toast:

[UpInArms]

5. U.S. probing alleged Daimler bribes-WSJ

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-08-05T114150Z_01_N05182250_RTRIDST_0_BUSINESS-AUTOS-DAMILERCHRYSLER-PROBE-DC.XML

NEW YORK (Reuters) - U.S. prosecutors are pursuing a criminal investigation of allegations that DaimlerChrysler AG's (DCXGn.DE: Quote, Profile, Research) (DCX.N: Quote, Profile, Research) Mercedes unit paid bribes in at least a dozen countries and that senior executives may have been aware of the practice, the Wall Street Journal reported on Friday.

The newspaper, citing people familiar with the case, said the Justice Department investigation is an escalation of a civil inquiry by the Securities and Exchange Commission that was disclosed late last year.

The earlier inquiry was triggered by a former Chrysler accountant in Detroit who alleged in a lawsuit last year that the company kept dozens of secret bank accounts to bribe foreign officials, the Journal said.

German federal authorities joined the investigation after the July 22 suicide of Rudi Kornmayer, managing director of the company's plant in Nigeria, it reported.

...a bit more...

[UpInArms]

11. Commentary: The simple truths in the energy spike

http://www.marketwatch.com/news/story.asp?guid=%7B39B760E6%2D6733%2D406F%2DB6D4%2D35F81EAF7885%7D&siteid=mktw

BALTIMORE (MarketWatch) -- My hands shake and my eyes roll when I hear some of the media clap trap on the energy markets coming from supposed "experts."

I've been trading commodities for nearly 17 years, worked on numerous exchanges -- here and abroad -- and have toiled in the energy pits of the New York Mercantile Exchange. I've traded over the counter energy derivatives for prestigious trading firms and thousands of futures contracts. Even I wouldn't call myself an "expert."

Rest assured, there is a wealth of disinformation and sound byte nuggets out there, and investors need to wade carefully when venturing into the deep end of the information pool.

Quite frankly, as crude oil reaches new highs, which seems to be a weekly occurrence lately, this is uncharted territory for everyone.

<snip>

The most common question I get at cocktail parties is, "where will crude oil go?"

After a long pause, and another sip of my drink, my usual answer is "higher," then I spot a pig in a blanket on a passing tray and make a hasty retreat. It's been more or less my same answer for the last five years.

...more...

[UpInArms]

12. U.S. Treasuries fall on upside payrolls surprise

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-05T124133Z_01_NYG000015_RTRIDST_0_MARKETS-BONDS-PAYROLLS-URGENT-REPEAT.XML

NEW YORK, Aug 5 (Reuters) - U.S. Treasury debt prices fell substantially on Friday after highly anticipated non-farm payrolls data beat expectations in July, likely reinforcing the U.S. Federal Reserve's case to steadily raise short-term interest rates.

The U.S. government said the U.S. economy generated 207,0000 new non-farm jobs in July, above economists' expectations of a 183,000 reading and June's upwardly revised result of 166,000 jobs.

Benchmark 10-year notes were 9/32 lower to yield 4.36 percent, compared with 4.32 percent late on Thursday.

...more...

[UpInArms]

13. U.S. stock futures point down after jobs data

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-05T123912Z_01_N05252401_RTRIDST_0_MARKETS-STOCKS-UPDATE-2.XML

NEW YORK, Aug 5 (Reuters) - U.S. stock futures lost ground on Friday after a government report showed job creation was higher than expected last month, spurring concern that the Federal Reserve may need to extend its interest-rate increases.

S&P 500 futures were down 0.4 points, Dow Jones industrial average futures were down 10 points, and Nasdaq 100 futures slipped 1 point.

All three indexes were slightly below fair value, a model evaluating pricing by accounting for interest rates, dividends and time to expiration on the contract.

...short blurb...

[54anickel]

20. What? Numbers too stellar this morning? Are they finally catching

on to Greenspin's "war against labor" as he ponders a "a diminution of the pool of available workers."

This is such BS. You get a (questionable) report that supposedly shows a growing economy and yet the futures chart dives off the cliff, for fear of rising interest rates by the Fed. Shareholders are getting a bit edgy these days, aren't they...we're not exactly in a tight labor market here.

[UpInArms]

22. the Consumer Credit report comes out this afternoon

seems as though the market will "rejoice" if people spend and falter if they have a job that will pay their bills. :crazy:

[UpInArms]

18. Chesapeake sees 2Q loss, lowers 2005 earnings outlook (acctng errors)

Seems to me there are a great number of "accounting errors" being reported these days :shrug:

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38569.3762258449-840051952&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

LONDON (MarketWatch) -- Chesapeake Corp. (CSK) , a provider of paperboard and plastic packaging, said it expects a second-quarter loss in the range of 9 cents to 11 cents a share. Adjusted earnings are seen in the range of 22 cents to 24 cents a share. For 2005, Chesapeake lowered its earnings outlook to between 80 cents and $1 a share. In addition, the company said it has identified accounting errors, which appear to have commenced in early 2004, that have the effect of overstating historically reported net income. Chesapeake expects to complete its analysis of the impact of the accounting errors, which will include a determination of the specific periods affected, by Aug. 11, 2005.

[UpInArms]

21. pre-opening blather

9:15AM: S&P futures vs fair value: -3.0. Nasdaq futures vs fair value: -5.0.

9:00AM: S&P futures vs fair value: -2.9. Nasdaq futures vs fair value: -5.0. Buyers still showing some reserve in pre-market trading as futures indications now point toward a lower open for the cash market... As expected, the reaction in bonds has changed the tone of trading in equities, as benchmark yields at their highest levels since mid April weigh on sentiment... Couple that with oil prices back above $62/bbl and the broader market's attempt at a sixth consecutive week of gains could be jeopardy

8:33AM: S&P futures vs fair value: +0.2. Nasdaq futures vs fair value: -1.0. Futures trade pulls back slightly following jobs report, now suggesting a relatively flat open for the indices... Nonfarm payrolls rose 207K, above forecasts of 180K, while June payrolls were revised upward to 166K from 146K... The unemployment rate held steady at 5.0% but hourly earnings unexpectedly rose 0.4%, perhaps piquing some inflation concerns... Bonds, which were up slightly before the release, have fallen as the 10-yr note is now down 10 ticks to yield 4.35%

8:00AM: S&P futures vs fair value: +2.2. Nasdaq futures vs fair value: +2.5. Futures market versus fair value suggesting a slightly higher open for the cash market, as investors wait for data that may show the economy added the most jobs since April... At 8:30 ET, the Labor Dept. will release July nonfarm payrolls (consensus 180K), unemployment rate (consensus 5.0%), hourly earnings (consensus +0.2%) and average workweek (consensus 33.7) figures

[UpInArms]

23. stumbling at the start

Dow 10,596.64 -13.46 (-0.13%)
Nasdaq 2,190.50 -0.82 (-0.04%)
S&P 500 1,234.49 -1.37 (-0.11%)
10-Yr Bond 4.374 +0.55 (+1.27%)

NYSE Volume 19,552,000
Nasdaq Volume 36,086,000

[UpInArms]

25. Driven by the PRICE OF GASOLINE: 7-Eleven same-store sales up 5.9%

http://www.marketwatch.com/news/story.asp?guid=%7B6BC77E16%2D27A5%2D4910%2DB15D%2DEB2D38B5AE89%7D&siteid=mktw

NEW YORK (MarketWatch) -- Convenience-store operator 7-Eleven Inc. said Friday that July merchandise sales accelerated over last year, while total sales got a lift from rising gasoline prices.

Dallas-based 7-Eleven (SE: news, chart, profile) said its July same-store sales, or sales of merchandise at stores open at least year, rose 5.9%, topping a 4.2% gain in the same month last year.

Total sales, including gas sales, advanced 12% to $1.24 billion from $1.11 billion in July 2004. Excluding gas sales, total merchandise sales advanced 7% to $783.1 million from $732.2 million.

Gas sales increased 21% to $453.6 million from $375.1 million in the same period a year ago. The average price of a gallon of gas for July 2005 was $2.33 compared with $1.94 last year, the retailer said.

...more...

Well, folks - there it is - the RISE IN RETAIL SALES is INFLATION

[54anickel]

26. Strength and Subjectivity

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=45337

As second quarter numbers are digested and expectations are ratcheted up, selective focus reigns supreme. The Peoples Bank of China (PBoC) decision to delink exclusively from the US Dollar, and the most recent profit and personal income numbers have gone unexamined and largely unpriced. Despite all this, our dominant three indexes have all underperformed our sub-accurate leading inflation measures. That must be why so many are so confident in their up revised prognostication. Just in case major macro events still interest you, I have cobbled together some thoughts on epic making recent developments that are particularly hard to spot through rose colored glasses and froth.

Personal income data, reported by the Bureau of Economic Analysis (BEA) on August 02, 2005 was terrifying. No, I don’t mean that we have valiantly reached a national savings rate of 0%, although that is truly frightening. I mean that what everyone thinks of as personal income went up .2% not .5% in June. Wage and Salary disbursements went up a whopping .2% and supplemental income went up an astonishing .3%. Ouch! Where did the feds get that .5% headline number? Proprietors' income with inventory valuation and capital compensation adjustment was up a strong 2.0% in June. Proprietor’s income grew at 400% its three year average rate while wage and salary income grew at 50% its anemic three year growth rate. Buckle up American Business the public is flush. Well, perhaps the next best thing, they spent like they were. Perennially undeterred by affordability, America went shopping for expensive durable goods. June spending on these expensive items came in just under 300% of its three year average growth rate. I guess folks are bullish given housing’s great returns. Adjusted rental income was down 5.5%.

snip>

No one is talking about an ominous but interesting series of recent reports and polls on Brand America. Business for Diplomatic Action, a consortium of concerned business leaders, has been raising concern and warning about a global turning away. Several recent polls reveal a growing hostility toward the US and this seems to be beginning to affect the perception of our businesses. The Anholt-GMI National Brands Index shows declining regard for the US outside simply our foreign policy. Most recently the US ranked 11th for overall perception thanks to low opinions of our culture and populace. A recent poll of 1004 Americans conducted by Foreign Affairs and Public Agenda discovered that a clear majority of Americans have become worried about the way America and her citizens are perceived around the world. Will earnings estimates remain immune to such sentiments?

Last but not least, the prestige and position of the US dollar declined last month. The much anticipated and quantitatively anti-climactic revaluation of the Yuan slipped into the past tense on July 21, 2005. While a modest 2.1% revaluation against the dollar failed to impress many, the real story is China’s delinking, rapidly followed by Malaysia’s decision to follow suit. Although China’s move was much trumpeted as beneficial and a sign of our influence, I beg to differ. China is almost as influential an importer of raw materials as it is an exporter of finished goods. I see no reason brutal internal competition and the mortal need to grow exports may not result in the pass through of import cost savings to lower export prices. Where is that discussion? China and other nations must now change the composition of their currency reserves. They and Malaysia clearly need to reallocate reserves away from the dollar. Who else will follow? In addition, following on the rancorous dispute- with much political involvement in both nations- over Unocal, China’s desire for contested global assets and acquisition currency will only grow. What does that portend?

more...

[UpInArms]

27. Oil stocks mixed as crude cruises to $62

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38569.4011919907-840055663&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Major oil stocks, boosted by gains in shares of Exxon Mobil Corp. (XOM) , and oil-service shares, including National Oilwell Varco (NOV) , traded higher Friday morning, while independent producers slipped. The Amex Oil Index ($XOI) rose 0.1% to 963.86 points and the Philadelphia Oil Service Index ($OSX) added 0.3% to 167.80 points. The Amex Natural Gas Index ($XNG) eased 0.1% to 382.75 points.

[UpInArms]

29. Crude Oil Heading for Third Weekly Gain on Refinery Concern

http://www.bloomberg.com/apps/news?pid=10000086&sid=aj2mOiEG_LBc&refer=latin_america

Aug. 5 (Bloomberg) -- Crude oil rose, poised to close for the first time above $60 a barrel for a full week in New York, on deepening concern refineries may struggle to meet a year-end peak in demand for fuels.

Oil, headed for its third consecutive weekly gain, surged to a record $62.50 a barrel two days ago following the death of Saudi Arabia's King Fahd on Aug. 1. Refinery shutdowns and speculation about hurricane damage have also underpinned prices.

``The concern with the refining situation hasn't gone away,'' said Kevin Blemkin, a broker with Man Financial in London. ``In the background, you've got hurricanes that are likely to cause havoc and affect output if they hit'' platforms.

Crude for September delivery rose as much as 57 cents, or 0.9 percent, to $61.95 a barrel on the New York Mercantile Exchange, where it was up 41 cents at 11:11 a.m. London time. Prices have almost doubled from the end of 2003.

U.S. refineries have operated at more than 90 percent of capacity since March, racing to meet surging demand for oil-derived products such as gasoline and diesel. They've also started to boost supplies of heating oil before requirements pick up in the fourth quarter. No new refineries have been built in the U.S. in almost 30 years.

...more...

What in the hell???? These freaking oil corporations are awash in cash and they will not invest in new refineries.

:argh:

[54anickel]

32. Well, investing in your infrastucture does cut into the profit margin

ya know.

By not investing, they end up tightening supply, the laws of supply/demand kick in and they can make even more profits to offer higher incentive pay to attract the best and the brightest to head up their corporations who can in turn come up with even better ways to drive up profits by cooking the books, driving down labor related costs, etc.

See, it's the Murikan way - nobody really works or produces much of anything for money anymore. Production is soooo non-profitable. That's so 70-ish :crazy:

[ZR2]

35. Due to current enviromental laws

It is basically impossible for refineries to be built in the US anymore. It is cheaper to have it refined overseas and shipped in to the US.

[54anickel]

40. Looks like "new" refineries aren't the answer so much as updating

the existing ones. They shut down or cut back rather than invest what was needed to meet environmental standards. Not that the needed updates would have put them out of business, just cut into those profit margins a bit.

Didn't Cheney's "secret" Energy Bill lower those environmental standards or limit the liability for non-compliance? Cheaper to pay the fine than clean refine. :eyes:

Here's a list of refineries in the US
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/refinery_capacity_data/pdf/table_38.pdf

And Wikipedia has an incomplete list of refineries world wide.
http://en.wikipedia.org/wiki/List_of_oil_refineries

[UpInArms]

33. Sept Crude at $62.15 bbl

10:10am 08/05/05 SEPT CRUDE CLIMBS 77C TO $62.15/BRL IN EARLY NY TRADE

10:10am 08/05/05 SEPT NATGAS UP 9.9C, OR 1.2%, AT $8.57/MLN BTUS

[54anickel]

57. Big Oil warns of coming energy crunch (Ad campaign)

http://news.ft.com/cms/s/7af6dc38-050c-11da-97da-00000e2511c8.html

International oil companies have advertising campaigns warning that the world is running out of oil and calling on the public to help the industry do something about it.

Most of the executives ofThe world's five largest energy groups generally maintain that oil projects are viable with the price at which they test a project’s viability is within the around $20 a barrel. range. But their advertising and some of their companies' own statistics appear to tell a different story.

ExxonMobil, the world's largest energy group, said in a recent advertisement: “The world faces enormous energy challenges. There are no easy answers.” And the companies' statistics back up the sentiment. In The Outlook for Energy: A 2030 View, the Irving, Texas-based company forecasts that oil production outside the Organisation ofthe Petroleum Exporting Countries, the cartel that controls three-quarters of the world's oil reserves, will reach its peak in just five years.

Chevron, the US's second-largest energy group, sends a similar message, but goes two steps further. “One thing is clear: The era of easy oil is over. We call upon scientists and educators, politicians and policy-makers, environmentalists, leaders of industry and each one of you to be part of reshaping the next era of energy. Inaction is not an option,” was the message in a recent advertising campaign. The company has even set up a website, www.willyoujoinus.com, warning of the pressures of high demand and fewer fields and offering a forum of discussion.

more...

[UpInArms]

80. Crude ends higher, logs 2.9% gain on the week ($62.31 bbl)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38569.6283371528-840085462&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Crude oil-futures climbed Friday and logged a 2.9% gain for the week as refinery output problems, five weeks of falling U.S. gasoline inventories and strong economic data fed concerns that demand will outstrip supplies. Crude oil for September delivery climbed as high as $62.40 a barrel on the New York Mercantile Exchange -- near the all-time intraday high of $62.50 it touched on Wednesday -- before ending at $62.31, up 93 cents, or 1.5%. A week ago, the contract closed at $60.57. September unleaded gasoline was also up, rallying 3.27cents at $1.8350 a gallon, near the record futures high of $1.86 from last month.

[UpInArms]

28. More Check Kiting: Fed adds reserves via over-weekend system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-05T133443Z_01_N05343815_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Aug 5 (Reuters) - The Federal Reserve said on Friday it was adding temporary reserves to the banking system through over-the-weekend system repurchase agreements.

Fed funds last traded at 3.438 percent, above the Fed's current 3.25 percent target for the rate on overnight loans between banks.

Further details of the operations are available at: http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[54anickel]

34. 7.5 billion today, 18.25 yesterday. Hey, pretty soon we'll be looking at

some serious moo-la! :sarcasm:

The Outstanding Public Debt as of 05 Aug 2005 at 02:17:42 PM GMT is:



The estimated population of the United States is 296,685,713
so each citizen's share of this debt is $26,582.45.


Just short of the record -
07/29/2005 $7,887,617,581,195.58

[UpInArms]

30. "Chopper" Ben opens piehole

9:53am 08/05/05 WHITE HOUSE'S BERNANKE: STILL SLACK IN LABOR MARKET

9:54am 08/05/05 BERNANKE SEES STRONG JOB GROWTH IN COMING MONTHS

edited to add the following link and text:

White House sees room for jobs growth - Bernanke

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-05T141612Z_01_NYG000016_RTRIDST_0_ECONOMY-JOBS-BERNANKE-URGENT.XML

NEW YORK, Aug 5 (Reuters) - The U.S. jobs market still has slack and has room for more growth, Ben Bernanke, the Chairman of the White House's Council of Economic Advisers, said on Friday following release of strong payrolls data in July.

The Labor Department said the economy had generated 207,000 jobs in July and it upwardly revised the June jobs reading to 166,000. Economists had expected 183,000 new jobs in July.

"Our view is that we can continue to have good, 180,000-plus-type job numbers for quite a while. I think there's still some slack. There is room for growth in labor markets," Bernanke said in an interview with CNBC television.

"Jobs numbers are very variable, So you can't look at them month to month. But in the last six months, jobs growth has been over 200,000 a month and that's telling us something about the job market," he said, but added there is concern that wage growth was not keeping pace with inflation.

...short blurb...

[UpInArms]

36. Someone pulls Blow-Job's string

10:19am 08/05/05 SNOW SAYS HIGH ENERGY PRICES HURT U.S. ECONOMY

10:27am 08/05/05 SNOW SAYS U.S. ECONOMIC FUNDAMENTALS STRONG

(edited to add "strong fundamentals" quote :rofl: )

[UpInArms]

42. Rising interest rates no surprise -Treasury's Snow

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-05T143916Z_01_WBT003654_RTRIDST_0_ECONOMY-SNOW-RATES-URGENT.XML

WASHINGTON, Aug 5 (Reuters) - U.S. Treasury Secretary John Snow said on Friday rising yields on U.S. government bonds were no surprise given evidence of the strength of the U.S. economy.

Asked in an interview with cable television outlet MSNBC whether yields on 10-year Treasury notes, which rose on Friday on stronger-than-expected jobs growth data, would continue to rise, Snow replied: "The market will tell us that over time."

"In the past, we've always seen some increase in interest rates coinciding with a stronger economy," he said. "So, that's clearly to be expected with a strong, growing economy, as this one is."

[54anickel]

75. Snow spewing horseshit no surprise - DU's 54anickel...eom

[UpInArms]

31. 10:03 EST numbers and blather

Dow 10,586.93 -23.17 (-0.22%)
Nasdaq 2,187.42 -3.90 (-0.18%)
S&P 500 1,231.09 -4.77 (-0.39%)
10-Yr Bond 4.381 +0.62 (+1.44%)

NYSE Volume 243,363,000
Nasdaq Volume 228,953,000

10:00 ET Stocks are still on the defensive as the bulk of sector leadership remains negative... Interest-rate sensitive areas like Financial and Utilities have paced the way to the downside as benchmark yields near 4-month highs push up borrowing costs... Health care has been under pressure, as weakness in large-cap drug names offset a rebound in biotech, while Consumer Discretionary has extended losses amid weakness in homebuilding and autos... Technology, however, has recently inched into positive territory, getting another boost from Microsoft (MSFT 27.43 +0.11) and relative strength in Hardware, while a 2.8% surge in shares of Monsanto (MON 68.39 +1.85) has helped the Materials sector shrug off a stronger dollar... ..DJTA -0.4%. ..DJUA -1.0%. ..SOX -0.2%. ..DOT -0.1%. ..XOI -0.1%. ..BTK +0.5%. ..Nasdaq 100 +0.1%. ..S&P Midcap 400 -0.5%. ..Russell 2000 -0.2%. ..NYSE Adv/Dec 799/1545. ..NASDAQ Adv/Dec 1050/1277.

9:40 ET Market opens slightly lower as investors digest mixed employment data... July nonfarm payrolls rose a stronger than expected 207K (consensus 180K) while June payrolls were revised upward to 166K (from 146K), suggestive of rising incomes and continued consumption... Also positive, the unemployment rate held steady at 5.0% for a second straight month, matching the lowest levels since Sept. 2001... However, an unexpected 0.4% rise in average hourly earnings (consensus +0.2%) has stirred up some inflation fears, suggesting the Fed may keep raising benchmark rates through the end of the year... ..NYSE Adv/Dec /. ..NASDAQ Adv/Dec /.

[UpInArms]

38. 10:34 yada

Dow 10,581.12 -28.98 (-0.27%)
Nasdaq 2,183.93 -7.39 (-0.34%)
S&P 500 1,229.78 -6.08 (-0.49%)
10-Yr Bond 4.382 +0.63 (+1.46%)

NYSE Volume 447,048,000
Nasdaq Volume 378,219,000

10:30 ET Major indices slip to session lows, taking a bearish cue from ongoing deterioration in the Treasury market... Continued selling pressure in bonds has recently sent benchmark yields on the 10-year note (-18/32) back to their highest levels (4.38%) of the morning, keeping buyers on the sidelines heading into the weekend... ..NYSE Adv/Dec 724/2081. ..NASDAQ Adv/Dec 919/1696.

More weekend buyers sidelined :eyes:

[54anickel]

37. US may live to regret letting politics kill the CNOOC bid

http://news.ft.com/cms/s/63613d7c-03bb-11da-b54a-00000e2511c8.html

An inquest into the demise of the bid by CNOOC for US oil company Unocal would reject the verdict that it died of natural causes. This was a blatant case of foul play. The bid was killed off by political opposition, culminating in last week's reprehensible decision by Congress to pass legislation dragging out the regulatory approval process.

This sorry tale should trouble anyone who believes in the importance of free and open markets. It also exposed the disturbing mood of anti-China hysteria now gripping Washington.

CNOOC sailed into a perfect storm. Congress is furious about the US-China trade deficit and the strength of the renminbi, the supposed loss of American jobs overseas, gas prices, China's military build-up, its continued denial of political and religious freedoms and its acquisition of natural resources round the world. These disparate issues converged over CNOOC.

snip>

There was no legitimate reason to sabotage the deal. China and the US are both big net importers of oil: they share the same interests in high output and low prices. For every barrel of Unocal oil China might have diverted for its own use it would import one fewer barrel of oil from elsewhere, leaving global supply and prices unchanged.

snip>

...It ill behoves a country to treat foreign investors in this way when it is dependent on inflows of foreign capital to finance its record trade deficit, and to enable it to fund the war on terror without raising taxes or crowding out private investment.

more...

[UpInArms]

39. Where are the stories that talk about regretting

NAFTA
GATTS
FTAA
CAFTA
Most Favored Nation Trade Pact (China/Nixon)

????

[54anickel]

43. Won't find them in MSM or financial press. Gotta go to the blogshpere

uncovered by google to find "regret cafta". There is of course Pat Buchanan.

http://amconmag.com/2005_05_09/buchanan.html

snip>

In the mail this week came the annual graphs and tables from Charles McMillion of MBG Information Services, who has patiently chronicled the decline and fall of the once-awesome U.S. industrial machine. Since 1992, when some of us urged the president’s father not to grant MFN to China, the returns are these:

* Between 1993 and 2004, the U.S. trade deficit with Beijing grew 700 percent to $162 billion.


* In the last decade, China’s total trade surplus at U.S. expense was $805 billion.


* China’s leading exports to us, which account for almost half her $162 billion trade surplus, came from shipments of computers, electrical machinery, and parts.


Leading U.S. exports to China (Boeing alone excepted) were, in ascending order: meat, meat offal, fibers, ore, slag, ash, organic chemicals, fertilizers, copper, cereals, raw hides, skins, pulp of wood, cotton, and the big seller—oil seeds and oleaginous fruits (soybeans). All very, very high-tech stuff.
China’s surplus, the largest one nation has ever run against another, provides her with the hoard of cash to buy Russian and Western weaponry to menace Taiwan and the 7th Fleet and pile up the T-bills that give Beijing the leverage it enjoys today over the sinking U.S. dollar and shaky U.S. prosperity.

In the 1993 battle of NAFTA, the Clinton-Gore-Dole-Gingrich globalists predicted our trade surplus with Mexico would grow, Mexico would prosper, and illegal immigration would be easier to control. Either they deceived us, or they deceived themselves. For since NAFTA passed:

* The U.S. trade surplus with Mexico has vanished and the annual trade deficit is now running above $50 billion a year.


* The cumulative trade deficit with Mexico is now over $300 billion.


* 1.5 million illegal aliens are caught each year crossing our border and 500,000 make it in to take up residence and enjoy all the social programs a generous but over-taxed America can provide.


snip to Buchanan's worst fear> :evilgrin:

If there are any Reagan Democrats left still loyal to the GOP, CAFTA may see them off. For if the GOP passes CAFTA over Democratic opposition, Hillary’s party may just be able to take back North Carolina, Ohio, and a couple of bright red farm states as well.

[ozymandius]

41. hugging daily lows at 10:47

Dow 10,577.70 -32.40 (-0.31%)
Nasdaq 2,182.05 -9.27 (-0.42%)
S&P 500 1,229.31 -6.55 (-0.53%)
10-Yr Bond 43.82 +0.63 (+1.46%)
NYSE Volume 519,820,000
Nasdaq Volume 435,263,000

10:30AM: Major indices slip to session lows, taking a bearish cue from ongoing deterioration in the Treasury market... Continued selling pressure in bonds has recently sent benchmark yields on the 10-year note (-18/32) back to their highest levels (4.38%) of the morning, keeping buyers on the sidelines heading into the weekend... The move lower has removed what little upside momentum the tech sector had recently shown amid a rebound in chip stocks just over a half hour ago, taking the Nasdaq to lower levels not seen since July 28... SOX -0.5, NYSE Adv/Dec 724/2081, Nasdaq Adv/Dec 919/1696

[loudsue]

46. After last night's thread in GD about all of the world markets going red

I am not too surprised to see us a little bit red this a.m.


:boring: I slept late since I was up all night, so this is my first peep at the market.

:donut: And as I pour my first cup o java....

I just wonder what it is the world markets thought this little "correction" was about.


:kick::kick::kick:

[UpInArms]

48. 11:51 EST slip sliding away

Dow 10,562.98 -47.12 (-0.44%)
Nasdaq 2,179.41 -11.91 (-0.54%)
S&P 500 1,226.67 -9.19 (-0.74%)
10-Yr Bond 4.377 +0.58 (+1.34%)

NYSE Volume 833,448,000
Nasdaq Volume 646,951,000

11:30AM: Major average extend their reach into negative amid a renewed wave of selling pressure, especially in the influential financial and tech sectors... Bucking the bearish bias, however, has been Goodyear Tire (GT 18.25 +0.80), as a 4.6% surge following a stronger than expected Q2 report has helped the Tire & Rubber Index turn in today's best performance with a 2.8% gain... The Movies & Entertainment Index (+1.0%) has been another bright spot in a down market following strong Q2 earnings from Viacom (VIA.B 34.11 +0.24) last night...NYSE Adv/Dec 694/2302, Nasdaq Adv/Dec 902/1877

11:00AM: Market continues to languish near its lowest levels of the morning as oil prices inch closer to new record levels... Crude oil futures, which have seen strong follow-through buying interest amid reports of more refinery problems and potential supply tropical storm-related disruptions, have recently touched $62.25/bbl (+$0.87), just shy of Wednesday's historic high of $62.50/bbl... Even though the commodity has almost as quickly pulled back to below the $62/bbl level, the combination of other inflationary worries (e.g. an uptick in hourly earnings) continues to underpin a sense of nervousness...

NYSE Adv/Dec 687/2225, Nasdaq Adv/Dec 889/1796

[UpInArms]

50. America's corporate elite

http://www.amnews.com/public_html/?module=displaystory&story_id=15294&format=html

excerpt:

However, most boards are heavy with active or retired CEOs. It's very common to have one person be both CEO and chair of the board (as at Morgan Stanley, FedEx, Home Depot, and Pfizer, to name a few). For example, Phillip Purcell, as chair of Morgan Stanley's board, was able to secure the appointment of his sidekick Stephen Crawford as a director. Board compensation committees commonly consist of CEOs, often directly appointed by the person whose compensation is at issue. We can't expect such boards of directors to judge objectively the performance and value of top executives.

The collusion between CEOs and their boards creates a self-serving and self-perpetuating managerial elite of power and affluence. Their wealth shelters them from the realities of ordinary life in America, from concerns about medical expenses, income security and educational expenses. Like Vice President Cheney, former CEO of oil services giant Halliburton, they rotate in and out of government posts.

This corporate elite uses its wealth to elect and influence the best government money can buy. President Bush expressed his gratitude by giving them tax cuts greater than the salaries of many working Americans. At their bidding he sent his treasury secretary (a former CEO) to lobby against a proposed SEC rule that would make it easier for shareholders to get candidates onto boards of directors. Public Interest reports that "fifty-three senior executives from corporations opposed to the rule qualified as 'Rangers,' 'Pioneers' or 'Super Rangers' - the honorary titles given to big-money bundlers who have collected at least $200,000 or $100,000, respectively, for the Bush campaigns or $300,000 for the Republican National Committee."

...more at link...

[UpInArms]

51. Ex-WorldCom executive Vinson gets prison time

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-05T155526Z_01_N05211988_RTRIDST_0_CRIME-WORLDCOM-SENTENCING-UPDATE-1.XML

NEW YORK, Aug 5 (Reuters) - Betty Vinson, a former midlevel manager at WorldCom Inc., was sentenced on Friday to five months in prison for participating in the $11 billion fraud at the telecommunications company that triggered its bankruptcy.

Vinson also was ordered to serve five months in home detention. A former WorldCom director of management who helped prepare financial documents, Vinson testified for the government in the trial of former Chief Executive Bernard Ebbers.

She was the first of five former WorldCom officials -- who all cooperated with prosecutors probing financial wrongdoing at the company -- who face sentencing over the next week.

Troy Normand, WorldCom's ex-director of legal entity accounting, was set to be sentenced later on Friday.

<snip>

At Ebbers' trial, she described bogus accounting designed to help the company meet its profit expectations. She said she was pressured by her superiors to manipulate the company's books.

...more...

[UpInArms]

52. Sovereign ending controversial bonus program

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38569.5075691551-840070456&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Sovereign Bancorp (SOV) on Friday said it will end a controversial bonus program for outside directors effective Oct. 1, according to a Securities and Exchange Commission filing. Directors will instead receive $50,000 in cash and $50,000 in company stock, the filing said. Shares of Sovereign fell 4 cents to $23.98 in midday trading.

12:07pm 08/05/05 SOVEREIGN DIRECTORS TO RECEIVE $100,000 CASH AND STOCK

12:07pm 08/05/05 SOVEREIGN BONUS PROGRAM TO END OCT. 1

12:07pm 08/05/05 SOVEREIGN ENDS BONUS PROGRAM FOR OUTSIDE DIRECTORS

:rofl:

Notice they did this after they picked up the $100,000 in "cash and stock".

[UpInArms]

53. noon yada

Dow 10,561.22 -48.88 (-0.46%)
Nasdaq 2,177.21 -14.11 (-0.64%)
S&P 500 1,226.18 -9.68 (-0.78%)
10-Yr Bond 4.383 +0.64 (+1.48%)

NYSE Volume 935,009,000
Nasdaq Volume 725,379,000

12:00PM: Market remains under pressure midday as mixed employment data and surging oil prices renew inflation worries, keeping every economic sector in negative territory... July nonfarm payrolls checked in at a stronger than expected 207K (consensus 180K) and there was an upward revision in June payrolls, to 166K from 146K, consistent with strength seen across other economic data... Also encouraging has been the fact that the unemployment rate held steady at 5.0% - the lowest level since Sept. 2001 - for a second consecutive month...

Be that as it may, an unexpected 0.4% increase in average hourly earnings (consensus +0.2%), has brought the inflation hawks out of hiding (as most recent economic reports have shown contained pricing pressures) to suggest the Fed's tightening cycle may not conclude anytime soon... The news has underpinned a negative sentiment throughout the Treasury market, lifting benchmark yields on the 10-year note (-16/32) to 3 1/2-month highs (4.37%), dampening the benefit of the strong data for stocks...

To that end, the interest-rate sensitive Utilities and Financial sectors have turned in the morning's worst performances, with the latter providing the bulk of leadership to the downside... Even with oil prices trading near a record level, which has added an extra sense of caution for investors heading into the weekend, Energy has also succumbed to widespread consolidation... Crude oil futures ($61.85/bbl +$0.47) have extended yesterday's gains amid reports of more refinery problems and potential supply tropical storm-related disruptions...


Notice they didn't worry about inflation when the prices for everything living related surged - it was only inflation when "wages" increased a measly .4% :banghead:

[54anickel]

56. They've been indoctrinated by nearly 20 years of Greenspinism.

more on that book you were interested in - made it to Yahoo

Has Greenspan Committed Fraud? The Dr. Ravi Batra Interview

http://biz.yahoo.com/tm/050728/12791.html?.v=1

Someone also posted it in the Econ forum

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x17085


Think this is the one I orginally posted
http://www.howestreet.com/story.php?ArticleId=1368

[54anickel]

54. US workers struggle to cope in new economic reality

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2005-08-04T175819Z_01_N04631538_RTRIDST_0_PICKS-BIZECONOMY-MANUFACTURING-DC.XML

snip>

In the heart of the U.S. Midwest, St. Louis, Missouri was an archetypal factory town. Twenty five years ago, 40 percent of all of its high-paying jobs were in manufacturing, according to a March study by the Federal Reserve Bank of St. Louis.

But in the last 10 years, it has lost 63,000 manufacturing jobs. Today, the industry provides just 3 percent of all job vacancies, a recent Job Openings Survey from the University of Missouri found, while health care, social assistance and the hospitality industry deliver 60 percent.

:wtf: How will these "jobs of the future" fair when nobody will be able to afford them. And "social assistance" wtf is that about - programs being cut all over, unless that's a fancy way of stating prison guard, I don't see a hell of a lot of job growth in that area either ouside of working for the unemployment office. Oh and the job losses are not just in manufacturing, but we all know that.

snip>

Of the 8,000 entry-level jobs identified in the University of Missouri study, 45 percent paid less than $8 an hour and the next 25 percent paid less than $15 an hour.

Even if he wanted to take a lower-paid job, Asnell finds that prospective employers don't want to take the chance of hiring. He said they usually look at how much he earned before, inform him that he wouldn't be happy making less and close the interview.

NATIONAL CRISIS

more...

[barb162]

60. your wtf

'How will these "jobs of the future" fair when nobody will be able to afford them'

You and I are on the same page. I often wonder about the people who still have excellent paying jobs (like MDs). How will they be paid when noone can afford to get medical care, physical therapy, etc. How will hospitals pay for the RNs or all the expensive equipment? Well, the expensive eqipment and trained techs will end up on the junk heaps because only the most affluent areas will have hospitals

[AnneD]

66. I work in health care

all during the gogo 90's when everyone was making buckets o'money...nurse wages were flat and lower skilled workers (aides) were well below poverty level. Now the new management trick is to put out help wanted ads with sign on bonuses, sit on the apps, and go to the overworked staff and claim there have been no hires because "there is a nursing shortage". The GAO stated that we currently have an adequate number of nurses but the problem will be when the Boomers retire.
The second trick they do is require tons of skills, but low ball the salary (wanting a brain surgeon for the price of physician's assistant). People laugh at me, but I look for ins co to pay for overseas surgeries to circumvent medical laws.

[54anickel]

58. Bank of England Rate Peak May Teach Fed a Lesson

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_gilbert&sid=a1upSxyRZJwk

Aug. 5 (Bloomberg) -- The Bank of England celebrated its 100th monetary policy meeting by trimming its key lending rate by a quarter-point to 4.5 percent yesterday, marking the lowest peak in U.K. interest rates for more than half a century.

There may be a lesson here for the U.S. Federal Reserve and its seemingly relentless campaign to drive the overnight target rate ever higher. Maybe the elusive ``neutral'' level that Fed officials are seeking is lower -- a lot lower -- than it was in the past.

Because central bankers get paid to worry, they leaven their economic forecasts with large dollops of uncertainty. Any silver lining in the inflationary cloud on the horizon is always tarnished; the glass isn't just half-empty, it's also cracked. Uncertainty, though, is going out of fashion.

Bond-market volatility is down. Traders and investors expect Treasury bond prices to swing by just 0.78 percentage point in the next 12 months, according to Merrill Lynch & Co.'s Move index, which tracks options market prices. The index had an average value of 0.81 in the first half of this year, 0.99 last year, more than 1.13 in 2003 and more than 1.22 in 2002.

Stagnant Stocks

more...

[54anickel]

59. Global CDO issuance sees sharp upturn

http://news.ft.com/cms/s/8c0a072c-051e-11da-97da-00000e2511c8.html

This year’s global issuance of collateralised debt obligations (CDOs) – pools of debt assets – was running at $123bn by late July, sharply up from last year’s total in the same period of $78bn, JPMorgan, the US investment bank, has estimated.

snip>

This estimate may not capture all market activity since a large proportion of CDO deals are being arranged on a private, bespoke basis between counterparties, rather than in public view with credit ratings.

There is currently no central single standard for measuring the total size of the market, and many banks are reluctant to issue any volume estimates.

snip>

Moreover, the outlook for the sector has provoked intense debate among bankers in recent weeks, given that large losses were incurred by some hedge funds and investment banks on CDO instruments during the credit market turmoil in May.

In the immediate aftermath of May’s credit turmoil, which was triggered by ratings downgrades of Ford and General Motors, some observers argued that CDO issuance was likely to slow for the rest of the year. If so, that could have implications for the profits of some investment banks, since the sector has generated a significant flow of revenues in the past two years.

more single sentence paragraphs.....

[54anickel]

61. The Modern Command Economy: the 30-Year Bond is Returning

http://www.merkfund.com/merk-perspective/insights/2005-08-04.html

snip>

The "return of the long bond" warrants some reflections of the environment we are in. In October 2001, the Treasury Department announced it would no longer issue 30-year bonds, and focus on the issuance of 10-year bonds. The official reason was that deficits had been brought under control and the long bond was no longer required. That was obvious nonsense: the tech bubble had burst, the economy was fragile, and record deficit spending was in the pipeline in the aftermath of the 9/11 attacks.

Instead, an important driver behind the abolishment of the 30-year bond was the desire to stimulate the economy. By abolishing the 30-year bond, investors in the bond market were forced to purchase shorter maturities. There is an inverse relationship between bond prices and yields: as supply for the long bond was artificially decreased, and demand for shorter maturities was artificially increased, bond prices rose and yields fell. This significantly contributed to lower medium and long-term interest rates. Short-term interest rates are controlled directly by the Federal Reserve, and these were also lowered.

As we have reported in the past, former Federal Reserve Board Member Ben Bernanke (currently the Administration's Chief Economic Advisor and candidate to succeed Federal Reserve Board Chairman Allan Greenspan) is an open advocate of managing the entire yield curve (see also our April 18, 2005, analysis, The Fed Embraces Public Perception in Place of Sound Monetary Judgment to Set Policy) to fine tune the economy.

snip>

It is beyond the scope of this analysis to discuss the 'interest rate conundrum' in detail - it shall only be said that we believe that the market properly reflects that the economy is not as strong as suggested by some data; you only need to reflect on why the automotive industry has to provide its biggest incentives ever to lure consumers if the economy were truly as strong as suggested. Needless to say, the markets have not been swayed by Greenspan's words and long-term rates have not moved significantly. The Fed Chairman's wish is the Treasury's command (the Fed and the Treasury operate independently, but these days, they closely coordinate policy). By reintroducing the long-bond, supply is added to the market, and a steeper yield curve (longer-term interest rates higher than short-term rates) is fostered.

The shape of the yield curve affects many facets of the economy. Amongst others, financial institutions typically operate more profitably when the spread between long-term and short-term interest rates is higher. When short-term interest rates are as high as long-term rates or even higher, it tends to discourage investment activity.

more...

[54anickel]

63. The Sausage Factory (CAFTA vote deals)

http://www.house.gov/paul/tst/tst2005/tst080105.htm

snip>

Late-night arm-twisting by House leaders to get votes is of course nothing new. We witnessed far worse when Congress passed the ruinous Medicare prescription drug bill in the dead of night two years ago. Yet even after months of unprecedented wheeling and dealing by corporate lobbyists, congressional leaders, and the White House, the Washington establishment still failed to pass CAFTA in the US House. That’s right, when the 15-minute voting period expired last Wednesday evening, CAFTA seemingly had been defeated.

Here’s how. As the vote progressed, the tally was neck and neck. When the 15-minute period ended, CAFTA had gone down in flames. But pro-CAFTA forces were so determined to get what they wanted, they broke the rules. House leadership ignored the time limit and kept twisting arms and making deals until they finally had the votes to pass CAFTA nearly an hour later.

What kind of deals? Well, one member of House leadership told reluctant legislators, “We've got to have you; you tell us what you want.” And tell they did. Lawmakers in textile producing states were bought off with promises of textile subsidies. Lawmakers in sugar-producing states were bought off with promises of special treatment in the 2007 farm bill. On and on it went, with promises of new bridges, parks, and whatever else it took to pass CAFTA.

Rest assured that you will pay dearly for these bribes used to buy votes. Every favor granted and every pet project funded comes on top of the pork-laden appropriations bills already passed in the House this year. These new goodies will be added to the final House-Senate versions passed later this year. One of my colleagues estimated that the price tag for buying the CAFTA vote will be at least $50 billion. That’s right, $50 billion to win a vote. Is this what you want from your representatives in office?

more....

[CGrantt57]

65. Is this what you want from your representatives in office?

No, but sadly, it's what I've come to expect.

[54anickel]

74. Maybe that's another part of the problem, we've been indoctrinated

into lowering our expectations. Sort of goes back to that frog in boiling water.

How many times have you heard someone say, "it doesn't matter - all politicans are crooked". Maybe Murika is getting the representation she deserves. DUers are sort of a exception to the norm - most people have just accepted it as "the way it is".

[UpInArms]

67. MasterCard quarterly profit surges 83%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38569.5555977778-840076664&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (Marketwatch) -- MasterCard Inc. on Friday reported second-quarter net earnings of $120.2 million, or $1.20 a share, up 83% from $65.7 million, or 66 cents a share, in the year-ago period. Revenue at the Purchase, N.Y.-based financial services company rose to $771.9 million from $647.3 million last year.

See what living on plastic does for the money-changers?

[54anickel]

76. Watch Out For Universal Default On Credit Cards

http://www.channel3000.com/money/4814731/detail.html

snip>

"If you change your behaviors in any way on any of your pieces of credit, they have the right to increase your rate," said Brian McKay, SC Telco Marketing Manager.

A new study by Consumer Action found 45 percent of all banks have universal default policies on their credit cards.

The policy means that one late payment on just one of your credit cards can result in higher interest rates from everyone to which you owe money.

Other things like going over your credit limit, bouncing a payment check, getting a new credit card or simply having too much debt can trigger the universal default clause.

snip>

This year, according to Consumer Action, credit card rates are being raised to as much as 35 percent



http://credit.about.com/gi/dynamic/offsite.htm?site=http://www.cardratings.com/howtoavoidcreditcardinterestratehikes.html


snip>

It’s not a phrase that most are familiar with, and it’s certainly not one that’s used in day-to-day conversation. And although you may not even know what it means, it is very possible that you could learn about universal default any day now—the hard way.

Buried in the fine print of the credit card terms and agreements, a universal default clause generally states that if you default (are late paying your bills) to the credit card issuer or any other lender the interest rate on the credit card could be raised. Banks that utilize the universal default clause periodically check credit reports of their cardholders. If a credit score is lowered for any reason—late payments, high debts on loans, etc.—then the universal default can be activated. Yes, even if you have a perfect bill-paying record with the card issuer.

According to Linda Sherry of Consumer Action, more banks than ever use universal default policies to increase interest rates based on their customer’s credit performance with other creditors. “Banks seem to be saying that if there is even a shadow of a doubt that a cardholder might not pay, they are going to get a premium on their money while they still can.”

“We (Consumer Action) believe the real purpose of these policies is to maximize revenue at the expense of those who are least able to afford it.”

Heh, ya think? Oh and that new bankruptcy bill is just what the lender order. :eyes:

[ozymandius]

68. more selling resolve

2:32
Dow 10,563.60 -46.50 (-0.44%)
Nasdaq 2,179.45 -11.87 (-0.54%)
S&P 500 1,226.70 -9.16 (-0.74%)
10-Yr Bond 44.02 +0.83 (+1.92%)
NYSE Volume 1,389,316,000
Nasdaq Volume 1,079,075,000

2:00PM: The absence of spirited leadership from a number of blue chips continues to weigh on the proceedings, as sellers remain an active bunch... One new issue, however, generating a buzz in spite of the overall negative tone to trading has been Baidu.com (BIDU 118.99 +91.99)... Billed as the Chinese Google, shares of BIDU have soared 340% on its debut, becoming one of the hottest Wall Street IPOs over the last five years... NYSE Adv/Dec 685/2500, Nasdaq Adv/Dec 924/2039

1:30PM: Market pares some of its losses, retracing levels not seen around 10:00 this morning, but still trades in negative territory... Spearheading recent recovery efforts has been a rebound in Technology, which has just turned positive... Continued upside momentum in Microsoft (MSFT 27.70 +0.38), albeit amid much lighter volume than over the last few strong sessions, has touched another new high for the year while advances of more than 1.0% from AAPL, SYMC, Q, AV, NVDA, LSI, SBL and GTW have also provided some support... NYSE Adv/Dec 664/2493, Nasdaq Adv/Dec 951/2006

[54anickel]

69. Dang, getting right back down to the 10,500 range again...will it hold

to head back for 10,700? Sure seems to be stck between the two this year. Wonder if some of this foolish talk regarding Iran has the markets a bit jittery yet.

[ozymandius]

71. Has that petrol bourse opened yet? n/t

[54anickel]

73. Heh-heh, you mean the one authorized back on July 26th?

http://xiaodongpeople.blogspot.com/2005/07/iran-oil-bourse-wins-authorization.html

edit to add:

The most recent articles about the authorization in July are hard to track down - I get hits in google that lead to articles that are no longer available. Here's an older one on it though.

http://www.globalresearch.ca/articles/CLA410A.html

The Iranians are about to commit an "offense" far greater than Saddam Hussein's conversion to the euro of Iraq’s oil exports in the fall of 2000. Numerous articles have revealed Pentagon planning for operations against Iran as early as 2005. While the publicly stated reasons will be over Iran's nuclear ambitions, there are unspoken macroeconomic drivers explaining the Real Reasons regarding the 2nd stage of petrodollar warfare - Iran's upcoming euro-based oil Bourse.

In 2005-2006, The Tehran government has a developed a plan to begin competing with New York's NYMEX and London's IPE with respect to international oil trades - using a euro-denominated international oil-trading mechanism. This means that without some form of US intervention, the euro is going to establish a firm foothold in the international oil trade. Given U.S. debt levels and the stated neoconservative project for U.S. global domination, Tehran's objective constitutes an obvious encroachment on U.S. dollar supremacy in the international oil market

"Of all the enemies to public liberty war is, perhaps, the most to be dreaded because it comprises and develops the germ of every other. War is the parent of armies; from these proceed debts and taxes...known instruments for bringing the many under the domination of the few. . . No nation could preserve its freedom in the midst of continual warfare."

- James Madison, Political Observations, 1795

Madison’s words of wisdom should be carefully considered by the American people and world community. The rapidly deteriorating situation on the ground in Iraq portends an even direr situation for American soldiers and the People of the world community - should the Bush administration pursue their strategy regarding Iran. Current geopolitical tensions between the United States and Iran extend beyond the publicly stated concerns regarding Iran’s nuclear intentions, and likely include a proposed Iranian "petroeuro system" for oil trade. Similar to the Iraq war, upcoming operations against Iran relate to the macroeconomics of the `petrodollar recycling’ and the unpublicized but real challenge to U.S. dollar supremacy from the euro as an alternative oil transaction currency.

more...


The world is getting fed up with collecting US bucks for their hard earned oil and goods. Yesterday I posted a couple of articles about CBs diversifying their buck holdings. Could start getting interesting. :popcorn:

[54anickel]

77. 3:32 numbers and yada

Dow 10,573.24 -36.86 (-0.35%)
Nasdaq 2,182.30 -9.02 (-0.41%)
S&P 500 1,228.01 -7.85 (-0.64%)
10-yr Bond 43.92 +0.73 (+1.69%)
30-yr Bond 45.82 +0.60 (+1.33%)
NYSE Volume 1,633,503,000
Nasdaq Volume 1,287,605,000

3:00PM : Market continues to trade near its worst levels as bond yields finish the day near session highs... The Treasury market has recently closed, with the benchmark 10-year note down 19 ticks at 4.39% - the highest yields since mid April... Perhaps more notably is the fact that, with the duration of the Fed's tightening cycle still in question, especially ahead of a widely expected 25 basis point rate hike at next Tuesday's FOMC meeting, higher rates could keep the market on the defensive over the next several weeks since the number of notable earnings reports is nearing an end...NYSE Adv/Dec 691/2511, Nasdaq Adv/Dec 938/2048

2:30PM : Major averages continue to sport broad-based losses as a bearish bias remains intact... Decliners on the NYSE hold a more than 3 to 1 advantage over advancers while declining issues on the Nasdaq outpace advancing issues by a 2 to 1 margin... A more than 2-to-1 ratio of down to up volumes also suggests a sense of nervousness among investors while total volume has been evenly matched at both the Big Board and Composite, with the latter seeing less than half the average number (123 mln) of Microsoft (MSFT 27.71 +0.39) shares that have exchanged hands over the last three days...

Separately, June consumer credit (consensus $6.0 bln) will be released at the top of the hour... NYSE Adv/Dec 652/2552, Nasdaq Adv/Dec 894/2081

2:00PM : The absence of spirited leadership from a number of blue chips continues to weigh on the proceedings, as sellers remain an active bunch... One new issue, however, generating a buzz in spite of the overall negative tone to trading has been Baidu.com (BIDU 118.99 +91.99)... Billed as the Chinese Google, shares of BIDU have soared 340% on its debut, becoming one of the hottest Wall Street IPOs over the last five years... NYSE Adv/Dec 685/2500, Nasdaq Adv/Dec 924/2039

[54anickel]

78. U.S. consumer credit up $14.51 bln in June

:wow: WASHINGTON (Reuters) - U.S. consumer credit rose an unexpectedly large $14.51 billion in June, the biggest increase in eight months, as both credit card use and closed-end lending surged, a Federal Reserve report showed on Friday.

The central bank said total consumer debt outstanding grew to a seasonally adjusted $2.146 trillion, reversing direction after a revised $1.23 billion decline in May.

Wall Street analysts polled by Reuters had expected a slimmer $6.75 billion consumer credit rise in June after an originally reported $3.02 billion May decline.

The Fed said nonrevolving credit -- made up of closed-end loans for cars, boats, education expenses and holidays -- rose $6.88 billion in June. Revolving credit, which includes credit and charge cards, rose $7.63 billion.

[UpInArms]

79. If they keep spending like there's no tomorrow,

pretty soon, there won't be.

[54anickel]

81. Getting closer every day in our "New Economic Reality"...eom

[54anickel]

82. Insider Trading Accusation in Reebok Deal

http://biz.yahoo.com/ap/050805/reebok_insider_trading.html?.v=2

Croatian Woman Is Accused of Insider Trading in Adidas-Reebok Deal Due to Well-Timed Trades


NEW YORK (AP) -- The U.S. Securities and Exchange Commission said Friday it froze the accounts of a Croatian woman who netted $2 million in well-timed trades of Reebok International Ltd. -- trades that the SEC believes could have been made on inside information.

The SEC obtained an temporary restraining order against Sonja Anticevic after she allegedly tried to move the money out of her brokerage account and into an overseas account, said David Rosenfeld, associate regional director in the SEC's New York office.

"Our complaint alleges that these trades were highly suspicious, and alleges insider trading," Rosenfeld said. "This allows us to do an expedited investigation while those funds are frozen."

Rosenfeld said Anticevic allegedly purchased $130,000 worth of call contracts -- options to purchase Reebok stock at a set price. When Reebok's stock rose after its $3.8 billion acquisition by Adidas-Salomon AG was announced Wednesday, Anticevic exercised the option, buying Reebok shares at the lower price, then reselling them at the higher market price for a profit of $2 million, Rosenfeld said.

more...

[ozymandius]

83. closing numbers

Dow 10,558.03 -52.07 (-0.49%)
Nasdaq 2,177.91 -13.41 (-0.61%)
S&P 500 1,226.42 -9.44 (-0.76%)
10-Yr Bond 43.92 +0.73 (+1.69%)
NYSE Volume 1,897,177,000
Nasdaq Volume 1,474,406,000

Yowzee! What a thrashing bonds took today!

[UpInArms]

85. a side of blather

Close: Stocks closed lower across the board as a mixed jobs report and oil prices near historic highs reinforced inflation fears and the potential for further Fed hikes... Expectations that employers would add the most jobs since April initially provided some early buying support, as futures indications pointed to a slightly higher open for the cash market...

And it seemed as though investors may get their wish, as July nonfarm payrolls rose a stronger than expected 207K (consensus 180K) while June payrolls were upwardly revised to 166K (from 146K), consistent with strength seen across other economic data and supporting continued GDP growth above long-term trends... Providing some extra reassurance to the economy's health, the unemployment rate held steady at 5.0% - the lowest level since Sept. 2001 - for a second consecutive month... That is until investors got wind of an unanticipated 0.4% rise (consensus +0.2%) in the average hourly earnings component, which raised the prospect of wage-push inflation pressures...

As expected, concerns that the Fed Funds rate may now reach 4.25% by year's end sparked a sell-off in bonds that lifted benchmark yields on the 10-year note (-19/32) to their highest levels (4.38%) since mid April, which subsequently changed the tone of trading in stocks... Adding insult to injury, more refinery problems and potential supply disruptions (e.g. tropical storms) helped crude oil prices ($62.31/bbl +$0.93) close near record levels... To that end, the fact that even more emphasis will be placed on interest rates (e.g. next Tuesday's FOMC meeting) and oil prices over the coming weeks, now that earnings season is winding down, underpinned a bearish bias that closed all ten economic sectors lower...

Guess they didn't want to "hold" those stocks over the weekend :eyes:

Have a Great Weekend All!

:hi:

[54anickel]

87. Wage-push inflation pressure - Bwahahahaha!!!! As for bonds - I

don't know - I think the article today that points to Chopper Ben's attempt to micro-manage the bond market might be on the money. I'm thinking the bond vigilantes may yet thwart his attempts in the end. Meantime, they say "volatility is good". For whom, I have no idea. :eyes: