STOCK MARKET WATCH, Wednesday 24 August

[ozymandius]

Wednesday August 24, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 150 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 247 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 311 DAYS
DAYS SINCE ENRON COLLAPSE = 1368
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 22, 2005

Dow... 10,519.58 -50.31 (-0.48%)
Nasdaq... 2,137.25 -4.16 (-0.19%)
S&P 500... 1,217.57 -4.16 (-0.34%)
10-Yr Bond... 4.19% -0.03 (-0.76%)
Gold future... 444.30 +1.30 (+0.29%)

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. no WrapUp today and a change in plans

Mrs. Ozymandius has badly injured her ankle and is unable to travel. Our trip to Los Angeles is postponed. So - thanks to UIA for volunteering to start the thread in my absence. We hope to reschedule our trip for the end of October.

And good morning.

:donut: :donut: :donut:

Ozy :hi:

[UpInArms]

4. G'morning, Ozy!

Sorry to hear about the misses's injury :( Hope all is better soon!

Let me know when you are going to go away - am always happy to help you get a bit of vacation :hi:

[AnneD]

54. Morning Marketeers

:donut: Tea and sympathy to the Mrs. Ozy. Those can be nasty injuries.
Well, things are hot and crazy here. Those with older cars and no AC can't afford to drive the speed limit with the windows down (the old 4-40 AC-4 windows down 40 mph) becuse of the prices. I pass several car dealerships on my daily sojourns. I was dumbfounded by the number of SUV's and trucks in the used car sections. Can't give em away is my guess. We have some workers that are turning down overtime because of gas costs (they don't pay OT, just give comp time in return). Happy Hunting, and watch out for the bears.

[ozymandius]

2. Crude Oil Prices Soar

SINGAPORE - The price of crude vaulted Wednesday, ahead of the key U.S. petroleum inventories report that is likely to show falls in crude and gasoline stocks, as traders continued to fret over supply, this time over a building tropical storm which could hurt Gulf of Mexico output.

Crude on the New York Mercantile Exchange rose by as much as 60 cents to $66.31 a barrel for October's front-month contracts, which traders attributed to storm warnings emerging from the Atlantic Ocean.

-cut-

Nymex crude now sits at $66.16 mid-afternoon in Singapore, a gain of 45 cents. On London's International Petroleum Exchange, October Brent crude futures traded 42 cents higher at $65.07 a barrel.

Later Wednesday, the DOE's Energy Information Administration will release its midweek supplies report — where analysts are expecting crude and gasoline stocks to fall, because of the summer driving season.

more

[UpInArms]

12. Chart: California SUV fillup costs

[RawMaterials]

20. my honda civic 4dr

can still be filled up for under 25$ granted its only a 12 gallon tank, and gas is about 2.50 but that last me 2-3 weeks depending on how much i drive.

I live close to work, within 5 miles. plus i can walk to the grocery store and just about everything else.

My prediction is that we are going to see a shift from people living outside of the city(in the suburbs) and having them move back the city were they work. at least for the ones that still have jobs.

[UpInArms]

46. Bush drive to save fuel fails to include cars and biggest SUVs

http://www.guardian.co.uk/usa/story/0,12271,1554939,00.html

The Bush administration yesterday put forward a plan to make the US's burgeoning fleet of pickup trucks, minivans and some sports utility vehicles go further on a gallon of gas in response to the soaring cost of petrol.

But the plan, which would not be implemented until 2008, was condemned by environmental groups because the largest SUVs, such as the Hummer H2, would not be affected. It would also not affect cars.

The average price of a gallon of petrol in the US has risen by 70 cents in the past year to $2.55 a gallon - still significantly less than half the price in Britain. But in a country where ownership of a car, and increasingly of a gas-guzzling SUV, is considered a civil right, the topic is dominating the airwaves, with radio phone-ins inundated with callers complaining about the cost of filling up.

"This is a plan that will save gas and result in less pain at the pump for motorists without sacrificing safety," said Norm Mineta, the transportation secretary, who claimed that the scheme would save 10bn gallons - more than 30m tonnes - of fuel.

<snip>

A watchdog group, the Union of Concerned Scientists, said the "minuscule" change in fuel economy would do virtually nothing to reduce the US dependence on oil or address high fuel costs. "The administration's claim of saving 10bn gallons of gasoline with this proposal amounts to less than one month's worth of gasoline saved over 15 years," a spokesman said.

...more...

[ramapo]

96. What a joke

How amazing is it that Bush can say with a semi-straight face that this will help address our energy problems? What is even more amazing is that anybody would believe him!

[UpInArms]

38. Crude prices top $66; natural gas nears $10

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.4215542014-840833040&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- October crude is up 54 cents at $66.25 a barrel in early trading, ahead of the Energy Department's weekly inventory report. Market expectatations for crude supplies are mixed, but most analysts expect gasoline stocks to mark eight weeks of declines. September natural gas is up 27.7 cents at $9.96 per million British thermal units, with storm activity in the Atlantic continuing to feed concerns over possible production disruptions.

[Roland99]

48. Glad I filled up today: $2.47 with my $0.10 discount

[UpInArms]

64. Oil Prices Rise After U.S. Supply Report

http://www.cbsnews.com/stories/2005/08/24/ap/business/mainD8C68KEG0.shtml


Traders were also watching an approaching storm that could enter the Gulf of Mexico later this week.

Crude oil for October delivery rose 34 cents to $66.05 a barrel in morning trade on the New York Mercantile Exchange. The front-month contract is nearly 50 percent higher than a year ago and hit an all-time high of $67.10 on Aug. 12.

In its weekly petroleum supply report, the Energy Department said domestic inventories of gasoline fell by 3.2 million barrels last week to 194.9 million barrels, or 7 percent below year ago levels.

U.S. supplies of crude oil grew by 1.8 million barrels to 322.9 million barrels, or 13 percent above year ago levels, the agency said. The supply of distillate fuel, which includes heating oil and diesel, increased by 1.4 million barrels to 132.5 million barrels, or 4 percent above last year's level.

On London's International Petroleum Exchange, October Brent crude futures rose 56 cents to $65.21 a barrel.

...more...

[UpInArms]

86. Oct Crude climbs above $67 bbl

2:22pm 08/24/05 OCT CRUDE CLIMBS ABOVE $67/BRL

2:22pm 08/24/05 OCT CRUDE UP $1.34, OR, 2%, AT $67.05, A ONE-WEEK HIGH

[UpInArms]

87. Crude futures climb to a record $67.40

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.6042688889-840841194&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- October crude climbed as high as $67.40 a barrel, surpassing the record $67.10 for a benchmark contract, though the October contract did climb as high as $67.75 on August 12. Prices rallied on the heels of falling U.S. gasoline supplies, a tropical storm in the Atlantic that may threaten Gulf of Mexico output and ongoing tension in the Middle East.

[ozymandius]

92. I just took a look at the news stories.

And it just seems to be a mixed picture of what we might face in the coming months. Inventories are down while, at this time, they are adequate and will continue to be so in the future. This market fluctuation is all about "what ifs". We, the consumers, are being so rediculously publicly gamed and ripped off.

EDIT: This is not to dicsount the notion of peak oil. I truly believe that we are heading toward the threshold of demand outstripping supply.

[ozymandius]

3. dated but relevant: Market at Crossroads of Earnings and Oil

NEW YORK - Wall Street's gains from bullish second-quarter earnings are evaporating quickly in the face of near-record crude oil futures and increasing evidence that high gasoline prices are diverting consumers' dollars.

Because of that, the stock market faces a difficult decision in the week ahead. If investors believe oil will begin to seriously hurt economic growth, then some selling is in order. But if they believe corporate performance is strong enough to overcome energy prices, then holding and bargain-hunting will predominate.

Determining which camp will win depends largely on the price of oil. Crude futures declined for most of the week, though they spiked higher on Friday to settle at $65.35 — shy of the previous week's record, but still quite expensive. The direction of crude futures will likely determine the week's trading.

-cut-

ECONOMIC DATA

(...)
On Wednesday, the Commerce Department will report July's orders for durable goods — big-ticket items designed to last at least three years. Durable goods orders are expected to drop 1.2 percent, compared to June's strong 2.8 percent rise. Since June was unexpectedly high, July's dropoff wouldn't be too surprising. However, if the drop is larger than expected, that may be due to consumers putting off big purchases in the face of higher gasoline prices — a big negative for stocks.

more

[Maeve]

13. I have seen several cheerful editorials lately about oil prices

They tend to be of the "see, things aren't that bad, we can adjust" type, assuming that if there isn't a big reaction now, there never will be. :eyes:

Y'all know I'm a pessimist--I've been burned in the past and I don't trust the powers that be--but nothing I see in the news makes me any more optimistic about the immediate future.

[trogdor]

91. Sure, we can adjust, all right.

We can scale back our Christmas shopping. Can you say, "recession"?

[ozymandius]

93. Yes. Isn't it becoming tiresome?

It seems to suggest that some columunists look toward the crippling of society's framework as a child might rejoice in a tornado's destruction of the local school. I get a sense from these cheerleaders that the Great Depression was just fun and games.

[UpInArms]

5. daily dollar watch

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

Last trade 88.26 Change +0.18 (+0.20%)

U.S. Durable Goods Orders Likely To Retrace After Recent Growth

http://www.dailyfx.com/index.php?option=com_content&task=view&id=2994&Itemid=39

Outlook: After months of unexpectedly high results, the awaited retracement in durable goods orders may finally arrive in the July data. Economists are expecting the total number to decline by 1.5%, while a smaller fall of 0.8% is expected once transportation is excluded. In the first quarter, we saw low figures from a large buildup of inventories, but these were largely depleted by the start of the second quarter. With the cyclical nature of buying, durable goods orders will likely decline after recent strength. The overall trend of durable orders is still positive, however, with a 6.9% increase seen between the first half of 2004 and the same period of this year. Given that long-term performance is generally a better gauge of economic strength than volatile monthly data, the outlook on durable goods continues to be supportive of further Fed interest rate hikes.

Previous: Revised durable good orders rose by 2.0% in June while growing at a rate of 3.2% excluding transportation. After surging in May on civilian airplane orders, which rose 166.9%, durable goods orders were expected to retrace in June. Such a retracement failed to materialize, however, as the smaller-than-expected decline in aircraft orders was replaced by a 15.4% gain in orders for non-defense communications equipment. Orders of computers also rose by 14.8% after falling by 9.4% in May. In the beginning of the year, business investment fell after relevant tax incentives expired at the end of 2004. In the latest monthly data, however, we saw capital spending coming back and the report conveyed an overall sense of healthy investment.

...more...

Forex: U.S. Dollar Markets Take Hit On Higher Energy

http://www.dailyfx.com/index.php?option=com_content&task=view&id=2986&Itemid=62

Despite better-than-expected data from Europe coupled with less-than-significant news from the US, the EURUSD pair only popped up for a few hours before falling back to challenge the $1.22 level. At midday, the dollar was trading at $1.2212 against the euro.

The only news out of the US today was July’s existing home sales, which fell to a lower-than-expected seasonally adjusted annual rate of 7.16 million sales from the upwardly revised figure of 7.35 million in June. This sales pace is still 4.7% higher than that seen in July of last year and is also the third highest level ever recorded. Another sign of a still-strong housing market are the growing inventory and price levels. The number of available homes rose by 2.6% to 2.75 million while the median price has grown to $218,000 from $217,000 over the month, which is 14.1% higher than a year ago.

With very little news in equities, the stock indexes dropped on still-high oil prices and the lower home sales number creating fears of an end to the housing boom. By 16:46 GMT, the Dow Jones Industrial Average was down 57.24, or 0.54%, to 10,512.65 while the NASDAQ dipped 8.05, or 0.38% to 2,133.36. Additionally, the S&P 500 fell 5.52, or 0.45%, to 1,216.21.

Two of the biggest losers on the day were Pier 1 Imports Inc. and Boston Scientific Corp. Pier 1, the largest US home furnishings retailer, reported expectations for a greater loss this quarter after previous forecasts pointed to a smaller loss and even a potential profit for the quarter. By 16:44 GMT, shares had fallen $0.79, or 5.70%, to $13.07.

...more...

Have a Great Day Marketeers!

[UpInArms]

15. Dollar turns lower vs. euro, pares yen gain after U.S. data

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.3689539583-840830678&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- A report showing a sharp drop in a measure of demand for big-ticket goods erased the dollar's early gains against the euro. The reported drop in durable goods orders was behind pared gains for the greenback against the yen as well. The euro was trading at $1.2243 in recent trading, compared to $1.2218 just before the report. The common currency is up 0.1% against the dollar from where it stood late Tuesday. The dollar stands at 110.24 yen compared to 110.33 before the report, but remains up 0.3% on the day against its Japanese counterpart.

[UpInArms]

25. a peek at the falling dollar

Last trade 87.93 Change -0.15 (-0.17%)

Settle 88.08 Settle Time 23:36

Open 88.35 Previous Close 88.08

High 88.58 Low 87.90

Last tick: 2005-08-24 09:11:17 ET
30-min delayed quote.

[UpInArms]

32. continuing to tumble

Last trade 87.86 Change -0.22 (-0.25%)

Settle 88.08 Settle Time 23:36

Open 88.35 Previous Close 88.08

High 88.58 Low 87.84

Last tick: 2005-08-24 09:26:22 ET
30-min delayed quote.

[UpInArms]

70. Hedge fund trades offset factory, housing data impact

http://www.marketwatch.com/news/story.asp?guid=%7BB3C05F6F%2D972C%2D458E%2D91B3%2DB82FB38D8E8F%7D&siteid=mktw

CHICAGO (MarketWatch) - The dollar turned lower against the euro and pared its advance against the Japanese yen Wednesday after a factory-sector report brought worse-than-expected news on the U.S. economy.

A second report showed U.S. new-home sales at a record high last month, but the impact on dollar trading was negligible. See Economic Report.

Even as it traded mixed against its chief rivals, the greenback proved resilient in the face of such a dour factory-sector release, in large part because hedge funds were thought to be significant buyers of the dollar on dips, said Mike Malpede, currency analyst with Refco in Chicago.

Recent widespread losses for funds on trades involving the Brazilian real and the Mexican peso prompted the liquidation of positions in the major currencies, benefiting the dollar, he said.

...more...

[UpInArms]

6. Today"s Reports:

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

Aug 24	8:30 AM		Durable Orders	Jul	-	-3.5%	-1.5%	2.8%	-	
Aug 24	10:00 AM	New Home Sales	Jul	-	1350K	1328K	1374K	-

Also, the DOE and API will release the petroleum inventory reports this morning.

[UpInArms]

10. BAD NEWS REPORT: U.S. July durable-goods orders down 4.9%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.3542774421-840829983&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - 0rders for new U.S.-made durable goods decreased 4.9% in July, the first decline in four months, the Commerce Department reported Wednesday. The decline was sharper than expected. Economists were expecting orders to fall 1.5% in July. Durable orders in June were revised down to a 1.9% increase from a 2.8% rise previously estimated. Shipments of durable goods decreased 0.1% in July after two straight monthly increases. Orders for core capital goods equipment fell 3.7% in July, the largest drop since last October.

8:30am 08/24/05 U.S. JUNE DURABLE ORDERS REVISED TO RISE 1.9% VS 2.8%

8:30am 08/24/05 U.S. JULY DURABLE-GOODS INVENTORIES UP 0.6%

8:30am 08/24/05 U.S. JULY DURABLE-GOODS SHIPMENTS FALL 0.1%

8:30am 08/24/05 U.S. JULY DURABLE-GOODS BIGGEST DROP SINCE JAN. 2004

8:30am 08/24/05 U.S. JULY DURABLE-GOODS ORDERS DOWN 4.9% VS.1.5% EXPECTED

[UpInArms]

11. details:

http://today.reuters.com/investing/financeArticle.aspx?type=economicNews&storyID=2005-08-24T123041Z_01_N23570296_RTRIDST_0_ECONOMY-DURABLES-URGENT.XML

excerpt:

Orders fell widely. Computers and electronic product orders slipped 5.9 percent, machinery orders dropped 6.2 percent, and electrical equipment orders eased 2.0 percent.

Demand for transportation equipment tumbled 8.6 percent, despite a 1.5 percent rise in motor vehicle orders. Civilian aircraft and parts orders fell 20.2 percent.

Non-defense capital goods orders excluding aircraft, viewed as a proxy for business spending, slipped 3.7 percent, the largest drop since October 2004.

Orders for defense-related capital goods dropped 16.6 percent. Excluding defense, durable goods orders were down 4.5 percent.

...more at link...

[54anickel]

27. Bit more from Bloomberg - it's the oil

Heh, guess maybe sixty-some bucks ain't sustainable after all.:evilgrin:

U.S. July Durables Orders Fall 4.9%; Ex-Transport. Down 3.2%

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aQ6k3d.RizEI&refer=home

snip>

A measure of orders for business equipment fell by the most since October 2004, suggesting rising energy costs may have prompted some companies to adjust their spending plans. With consumers also pinched by record gasoline costs, the economy may receive less of a boost from spending in the months ahead, economists said.

``Higher energy costs have taken a toll on business plans to purchase capital equipment,'' said Chris Rupkey, senior financial economist at Bank of Tokyo-Mitsubishi Ltd. in New York, before the report. ``There is enough uncertainty in the air that the prudent course is for companies to scale back on some of their business equipment purchases.''

snip>

Economists expected durable goods orders to fall from a previously reported 2.8 percent rise in June, according to the median of 62 forecasts in a Bloomberg News survey. Estimates ranged from a decline of 4.5 percent to an increase of 1 percent. Excluding transportation equipment, forecasts ranged from a decline of 1.5 percent to a gain of 1.7 percent. The government last week revised its factory orders data back through 1992.

snip to cheerleading>

Also, economists prefer to look at the trend in durable goods orders rather than month-to-month changes to better gauge factory demand and the July decline followed three straight increases.

``Most people were looking for a downward correction after recent data, but recent manufacturing sector data suggests the trend is picking up,'' said David Sloan, chief U.S. markets economist for 4Cast.com in New York.

snip>

``Utilization of factories is going up as demand starts to increase and that gives people more confidence in investing,'' Splinter said in an interview from Mountain View, California. ``We're confident that we are going to see orders increase for the next couple of quarters.''

more...

[UpInArms]

29. The government last week revised its factory orders data back through 1992

:wtf:

I wonder how those revisions were calculated?

[54anickel]

31. Came as a surprise to me - hadn't read anything about that coming

up. Big revisions like that usually make the news before had. Must-a missed sumptin :shrug:

[UpInArms]

35. Countering the Bad News (w/Spec buying?) U.S. July new home sales rise to

U.S. July new home sales rise to record 1.41 million

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.4172504745-840832721&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Sales of new U.S. homes surged 6.5% in July to a record seasonally adjusted annual rate of 1.41 million, the Commerce Department said Wednesday. The supply of new homes on the market increased 1.8% in July to a record 460,000, which represents a lean 4-month supply at July sales pace. It's the tightest inventory in relation to sales since October. Economists were expecting sales to dip slightly to a 1.33 million pace in July, according to a survey conducted by MarketWatch. New home sales are up 27.7% since July 2004. Reversing a trend toward higher prices, the median sales price fell to $203,800, down 4% in the past year.

10:00am 08/24/05 U.S. JULY NEW HOME SALES BETTER THAN 1.33M EXPECTED

10:00am 08/24/05 U.S. JUNE NEW HOME SALES REVISED DOWN TO 1.324M VS. 1.374M

10:00am 08/24/05 U.S. JULY NEW HOME MEDIAN SALES PRICE FALLS 4% TO $203,800

10:00am 08/24/05 U.S. JULY NEW HOME INVENTORY RISES 1.8% TO RECORD 460,000

10:00am 08/24/05 U.S. JULY NEW HOME SALES RISE 6.5% TO RECORD 1.41M

[UpInArms]

44. US July new home sales rise to record, prices drop

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-24T140058Z_01_N23569925_RTRIDST_0_ECONOMY-HOUSING-URGENT.XML

WASHINGTON, Aug 24 (Reuters) - Sales of new U.S. homes jumped 6.5 percent to a record high in July, defying economists' expectations for a decline, as purchases soared in the Northeast and West and median prices dropped, a government report showed on Wednesday.

The Commerce Department said new single-family home sales rose to a seasonally adjusted annual rate of 1.410 million units from a downwardly revised 1.324 million unit rate in June. The July sales pace was 27.7 percent higher than a year earlier.

Economists had expected new home sales to drop to a 1.333 million unit pace from June's originally reported 1.374 million unit pace.

While sales climbed, so did supply. The inventory of homes available for sale at the end of July stood at a record 460,000, up 1.8 percent from June and 15 percent higher than a year ago, the report showed. At the current sales pace, the supply of homes represented 4 months' worth in July.

The median price of a new home dropped for the third consecutive month, down 7.2 percent to $203,800 from $219,500 in June and off 4 percent from the price a year ago, the Commerce Department report said. The July sales price was the lowest since December 2003, when it hit $196,000.

...more...

[UpInArms]

47. DOE Petroleum Inventory Report (problems at refinery level?)

10:30am 08/24/05 U.S. CRUDE STKS UP 1.8 MLN BRLS LAST WK: ENERGY DEPT

10:30am 08/24/05 U.S. GASOLINE STKS DOWN 3.2 MLN BRLS: ENERGY DEPT

10:30am 08/24/05 U.S. DISTILLATE STKS UP 1.4 MLN BRLS: ENERGY DEPT

[UpInArms]

49. Energy Dept reports eighth drop in gasoline stocks

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.4417347454-840833901&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The Energy Department said motor gasoline inventories dropped 3.2 million barrels to total 194.9 million for the week ended August 19. That marked the fuel's eighth-straight weekly decline and supplies are now 7% below the year-ago level. Crude supplies rose by 1.8 million barrels to 322.9 million. Distillate stocks were up 1.4 million barrels at 132.5 million barrels. Following the data, September unleaded gasoline is up 4.2 cents at $1.90 a gallon. September crude is up 49 cents at $66.30 a barrel. September heating oil is up 1.36 cents at $1.833 a gallon.

[UpInArms]

55. API confirms drop in gasoline stocks

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.4525329167-840835724&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute said motor gasoline inventories fell by 3.8 million barrels for the week ended August 19. The Energy Department reported a 3.2 million-barrel decline. Crude inventories rose 771,000 barrels and distillate stocks were up 355,000 barrels, the API said. September unleaded gasoline is down 0.5 cent at $1.853 a gallon after trading as high as $1.90 earlier. "Gasoline stocks were sharply lower but ... since we are winding down the travel season for last minute summer vacationers, we may see the market back down from the highs," said John Person, president of National Futures Advisory Service.

[UpInArms]

71. Gasoline prices up as supply falls

http://www.marketwatch.com/news/story.asp?guid=%7B83F10D66%2D13FF%2D407B%2D9C09%2D3767663CEBEB%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Gasoline futures climbed Wednesday after new tallies showed that U.S. supplies of the fuel have fallen for eight consecutive weeks.

At the same time, natural-gas futures touched a high near $10 per million British thermal units, their highest level since February 2003, as traders tracked a tropical storm that may disrupt output in the Gulf of Mexico.

Strength in gasoline and natural gas also seemed to support crude-oil futures, lifting prices to a one-week intraday high of $66.70 despite last week's supply increase.

September unleaded gasoline climbed 2.7 cents at $1.885 a gallon on the New York Mercantile Exchange. Earlier, the contract got as high as $1.90 a gallon.

October crude was up 69 cents at $66.40 a barrel. It traded as high as $66.70 earlier, its highest in a week, when prices topped $67.

...more...

[UpInArms]

7. Today's Humor: Wal-Mart ads aim for the well-heeled

(What? Did they run out of poor people to abuse?)

Retailer known for discounts takes to pages of Vogue

http://www.chron.com/cs/CDA/ssistory.mpl/business/3322850

Wal-Mart Stores is running advertisements in Vogue magazine to polish its image and attract upscale shoppers.

The eight pages of ads in the September issue feature women, including an art professor, a fundraiser and a stay-at-home mom, offering testimonials about Wal-Mart's apparel, Vogue spokeswoman Elissa Lumley said. The ads may have cost about $800,000, according to Vogue's Web site, and are part of an agreement in which Wal-Mart will buy 68 pages of ads over two years.

Wal-Mart is seeking to transform its image as a discounter after rival Target Corp. boosted sales growth by offering exclusive products by designers, including Michael Graves.

<snip>

Wal-Mart is moving away from a marketing strategy that emphasized discounts and price cuts, said Julie Lyle, the vice president of corporate marketing, advertising and administration at the company's headquarters in Bentonville, Ark.

...more...

Or perhaps the cheap China product line is about to come to an end?

[BurgherHoldtheLies]

17. ROTFLMAO

Vogue magazine :rofl: ...oh, oh, that is too funny :rofl:

[AnneD]

56. What type of pearls

go with flip flops....maybe day pearls are appropriate.:sarcasm:
I can just see a Junior Leaguer standing 5th in the check out line behind the hispanic family with 3 kids crawling all over the carts. I can just see her reaction as she notices that they are buying RID lice products by the gross. Yeah, that's a pretty picture.

[UpInArms]

60. LOL!

:rofl:

I can hear it now:

Did you buy that dress at Squal-Mart?



Yes, and I got my new head lice, too!

[AnneD]

69. You can pick out the wealthy shoppers....

They have the stylish scarf wrapped hair (for obvious reasons you are now aware of), large dark sunglasses (incognito), and nice casual clothes. The give away is the nice expensive casual shoes (even sandals) and the expensive watch or jewlery.

[ozymandius]

77. "Thurston, dear, while I'm trying on this mink stole,

would you be so kind as to dash over to aisle 27 and grab the 48 roll pack of Charmin?"

[BurgherHoldtheLies]

62. Wow, now that's a visual. nt

[UpInArms]

8. US mortgage applications fall despite rates drop

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-24T113724Z_01_N24211343_RTRIDST_0_ECONOMY-MORTGAGES-UPDATE-1-REPEAT.XML

NEW YORK, Aug 24 (Reuters) - Applications for U.S. home mortgages decreased last week, with purchasing activity falling for the first time in a month despite slightly lower interest rates, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity fell 0.7 percent to 756.2 in the week ended Aug. 19, denting the previous week's 2.2 gain.

The MBA's purchase index, a gauge of loan requests for home purchases, dropped 2.2 percent to 488.4, erasing the previous week's 0.1 percent gain.

However, the MBA's seasonally adjusted index of refinancing applications rose 1.2 percent to 2313.9 after climbing 5 percent the prior week.

Fixed 30-year mortgage rates fell 1 basis point, or 0.01 of a percentage point, to an average of 5.78 percent, excluding fees, compared with 5.79 percent in the previous week.

<snip>

Government data show home prices up more than 50 percent over the past five years, fueled by the lowest interest rates in decades.

...more...

[UpInArms]

14. Chart: Housing Prices Across the Nation

[Maeve]

18. Our taxation appraisal just came in

In three years, the county says our house went up @ 30% in value and I have to admit it's fairly accurate; I could get what they say the place is worth. And we're not in one of the "bubble" states.

[RawMaterials]

22. people need to stop looking at a home

and thinking its a great way to make a bunch of money.
Its a long term investment at a minimum you should hold onto (live in) your house for at least 10 years. If this is the case, its ok to "over pay" or buy at the top, because inflation will eventually make it all a wash(unless we se deflation then your screwed)
IMHO

[Maeve]

42. Agreed. It can be a way to save money, tho

We pay less for our mortgage, insurance and taxes than it would cost to rent anything big enough for 6 people (and two cats) but we also bought pre-existing and one priced under its value. We also got a 15 year mortgage and stuck to less house than the realator said we could afford.
After 9 years, we owe less than half what we could sell it for, but there were times we wouldn't have been able to sell it at all (school/local economy troubles meant no market).

[54anickel]

39. July Slowing of Home Sales Stirs Talk of Market Peak

http://www.nytimes.com/2005/08/24/business/24econ.html

snip>

Sales of existing homes fell more than expected in July and prices were virtually flat compared with the previous month, the National Association of Realtors reported yesterday. Perhaps most significant, the price of condominiums, which have recently attracted a growing number of speculators looking to cash in on the boom, fell for the second straight month, while the number of condos on the market rose sharply.

For sale in Alameda, Calif., a state where prices rose 16 percent from a year ago, after a 24 percent rise in 2004.
"We could very much be close to the peak at this time," said Lynn Reaser, chief economist at Bank of America's capital markets group.

"There are signs that investors are becoming a little more cautious about the housing market," she added. "Sellers of the higher-price homes are not getting their asking prices, and there is a buildup of inventories."

Economists pointed out that house sales remained near record highs and that the slowdown might turn out to be more of a blip than a clear signal that the boom was reaching a peak. The agents' association adjusts its numbers to take into account seasonal variations like summer vacations; the adjustments are only an estimate, however, and the picture will not become clearer until more data is available, analysts said.



more...

[54anickel]

43. Homebuilders' Shares Hit by Home-Sales Drop

http://www.thestreet.com/comment/nickgodt/10239306.html

Existing-home sales may have declined and the inventory of unsold homes on the market may have increased in July. But as any bull on housing will tell you, the housing market remains red-hot.

Pundits and stock pushers will also tell you that because everyone's talking about the housing bubble -- and about how it's seemingly deflating a bit -- then it's not really happening, and there's nothing to worry about. Hmm, if that doesn't sound like delusion, then what does?

The denial is more acute as there may be signs that the smart money is bailing out of housing stocks. Taking a look at the Philadelphia Stock Exchange Housing Index since late July, it's hard not to notice the downtrend. After hitting an all-time high of 586.06 on July 28, the index has fallen nearly 10% through Monday's close.

The housing index was recently down another 1.6% Tuesday after the National Association of Realtors said existing-home sales dropped 2.6% in July to 7.16 million, compared with economists' average forecast that sales would fall only 1.1%. Among larger names in the sector, Beazer Homes (BZH:NYSE - news - research - Cramer's Take), KB Homes (KBH:NYSE - news - research - Cramer's Take), Lennar (LEN:NYSE - news - research - Cramer's Take) and Toll Brothers (TOL:NYSE - news - research - Cramer's Take) were each recently down more than 2%.

snip>

Looking at the bright side of things, you can say June sales were revised upward to 7.35 million from 7.33 previously, and that the July number was still the third-highest on record.

For the NAR's chief economist, David Lereah, it's only "some air coming of those balloons," which is not the same as a balloon popping.

more...

[UpInArms]

45. arguing semantics?

"some air coming of those balloons," which is not the same as a balloon popping

hmmmmm

a leaking ship still sinks :eyes:

[AnneD]

59. If memory serves me....

when we had our Real Estate bust here in Houston, it started as only a trickle. Homes stayed on the market longer, then existing home sales dropped. And finally, new home sales dropped and builders stopped making homes. It didn't matter that home were cheaper, many didn't have jobs or could quality (oh and they upped the qualifers because that was after the S&L scandal.

[UpInArms]

9. Ford likely to announced further job cuts in September

http://www.autoindustry.co.uk/news/industry_news/24-08-05_1

Ford Motor Co. Chairman and Chief Executive Officer Bill Ford told the Detroit Economic Forum yesterday that his company is planning another round of cost cutting, which may include plant closures. Ford said a plan is likely to be announced after the Frankfurt IAA show in mid-September.

Ford was speaking after accepting the chairmanship of the Detroit Economic Club from Chrysler Group CEO and DaimlerChrysler and Mercedes-Benz CEO-designate Dieter Zetsche.

Earlier this year, Ford announced plans to cut about 2,700 administrative jobs, lost $907m in the second quarter of this year, and is facing additional costs from the assumption of some of the liabilities of its financially stricken spun-off supplier Visteon. (Detroit Free Press, 24 August)

...very short newsblurb...

[UpInArms]

16. Dollar Tree profit falls, gas prices hurt store traffic

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.3690559838-840830684&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Dollar Tree Stores Inc. (DLTR) said Wednesday that second-quarter profit fell to $27.3 million, or 25 cents a share, from $29.6 million, or 26 cents, a year ago. Sales for the period ended July 30 increased to $769 million from $704.2 million in last year's second quarter, and same-store sales, or sales from stores open at least a year, declined 1.5%. Analysts polled by Thomson First Call were looking for earnings of 25 cents a share on sales of $764.1 million. The Chesapeake, Va.-based discount retailer said rising gas costs hurt traffic, as fewer customers made trips to its stores. For the third-quarter, earnings are seen at 28 to 31 cents a share, straddling analysts' view for 30 cents a share. Full-year earnings are targeted at $1.57 to $1.66, also bracketing analysts' average forecast for $1.64 a share. The company's stock closed Tuesday at $23.08, down 45 cents.

[UpInArms]

19. AOL to reform customer service in Spitzer pact

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-24T131017Z_01_N24393784_RTRIDST_0_MEDIA-TIMEWARNER-SPITZER-URGENT.XML

NEW YORK, Aug 24 (Reuters) - New York Attorney General Eliot Spitzer on Wednesday said Time Warner Inc.'s (TWX.N: Quote, Profile, Research) Internet services unit, America Online, agreed to reform its handling of customer requests to cancel or switch service.

Spitzer's office, responding to about 300 New York customer complaints, conducted a probe into AOL's customer service policies and procedures. With the settlement, AOL agreed to alter incentives it offers customer representatives who try to dissuade customers from canceling their subscriptions.

...short blurb...

[UpInArms]

21. pre-opening blather

9:00AM: S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: -4.0. Guarded tone persists in the futures market as rising oil prices and disappointing durables orders data help keep a lid on the market's enthusiasm... Areas attracting buyers, however, could be Telecom, after Verizon (VZ) was upgraded to Market Perform at Wachovia... Utilities, the only other sector yesterday to trade higher, may also enjoy strong follow-through amid analyst upgrades on EIX and CPN while Retail could get a lift after Coach (COH) raised its outlook for Q1

8:32AM: S&P futures vs fair value: -2.9. Nasdaq futures vs fair value: -5.5. Futures trade pulls back following a larger than expected decline in durables, now suggesting an even lower open for the indices... July durable orders fell 4.9%, well below economists' forecasts which called for a 1.5% decline, versus a downwardly revised 1.9% increase a month earlier (from +2.8%), while ex-transportation fell 3.2%... Bonds, however, have extended early gains, as the 10-year note (+8/32) now yields 4.14%

8:00AM: S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -3.0. Futures market versus fair value suggesting a slightly lower open for the cash market as surging oil prices ahead of economic data weigh on sentiment... Crude oil futures ($66.37/bbl +$0.66) have climbed ahead of weekly inventory data (10:30 ET) and amid tropical storm concerns... Meanwhile, investors are waiting to digest July durables orders (8:30 ET), which are forecast to decline (-1.5%) for the first time since March

[UpInArms]

23. 9:37 EST casino wheels spinning into the red

Dow 10,499.19 -20.39 (-0.19%)
Nasdaq 2,132.85 -4.40 (-0.21%)
S&P 500 1,216.38 -1.21 (-0.10%)
10-Yr Bond 4.159 -0.28 (-0.67%)

NYSE Volume 53,344,000
Nasdaq Volume 87,328,000

[54anickel]

24. Ewwww, nasty news every where. How low can they go?..eom

[UpInArms]

26. 9:45 EST still tumbling

Dow 10,487.34 -32.24 (-0.31%)
Nasdaq 2,131.10 -6.15 (-0.29%)
S&P 500 1,215.48 -2.11 (-0.17%)
10-Yr Bond 4.166 -0.21 (-0.50%)

NYSE Volume 114,350,000
Nasdaq Volume 138,654,000

09:40 ET Market opens on a downbeat note as investors continue to find excuses to sell stocks following the major indices' best monthly performance (July) of the year... Oil prices climbing back above $66/bbl and a larger than expected 4.9% decline in July durable orders (consensus -1.5%), after a revised 9.2% gain over the prior two months, have been the early catalysts fueling modest consolidation efforts... Excluding the transportation component, orders fell a strong -3.2% following a 4.5% two-month gain... However, it is worth noting that even though July's drop was the biggest since Jan. 2004 and the first decline since March, it does not represent a new trend, as underlying business investment remain strong and the July decline simply means that Q3 real GDP may now check in closer to +4.5% rather than +5%... Separately, July new home sales (consensus 1328K) will be released at 10:00 ET... ..NYSE Adv/Dec /. ..NASDAQ Adv/Dec /.

[UpInArms]

33. 10:00 EST (recovering before homes sales report)

Dow 10,502.71 -16.87 (-0.16%)
Nasdaq 2,134.75 -2.50 (-0.12%)
S&P 500 1,217.13 -0.46 (-0.04%)
10-Yr Bond 4.164 -0.23 (-0.55%)

NYSE Volume 209,961,000
Nasdaq Volume 219,061,000

[UpInArms]

37. blather

10:00AM: Stocks still under pressure as nearly every sector remains negative... Materials has paced the way lower amid strong follow-through selling in Steel (-2.2%), Chemicals (-2.0%) and Aluminum (-1.1%) while further consolidation in Retail and Homebuilding has weighed on Consumer Discretionary... Technology has been mixed, as gains in Hardware and Storage have been offset by losses in Semi and Software... Energy, however, has again been an early leader as oil prices ($66.37/bbl +$0.66) have risen for a third straight day ahead of weekly inventories data (10:30 ET)...

The EIA is expected to show a 100K barrel build in crude supplies, a 1.75 mln barrel build in distillates and a 1.5 mln barrel draw in gasoline supplies... Utilities have also shown relative strength, getting a lift from analyst upgrades on EIX (+2.0%) and CPN (+4.7%)... DJTA -0.4, DJUA +0.5, DOT -0.2, Nasdaq 100 -0.2, SOX -0.4, XOI +0.5, NYSE Adv/Dec 1131/1317, Nasdaq Adv/Dec 885/1413

[54anickel]

40. The spike in those 3 charts look like mirror images again - haven't

seen that for a while. The fabled 10:00 bounce has arrived...

10:15

Dow 10,509.45 -10.13 (-0.10%)
Nasdaq 2,136.93 -0.32 (-0.01%)
S&P 500 1,217.71 +0.12 (+0.01%)
10-yr Bond 4.166% -0.02
30-yr Bond 4.385% -0.02
NYSE Volume 298,719,000
Nasdaq Volume 299,523,000

[UpInArms]

28. Gold prices inch up for a third session

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.4066497106-840832293&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Gold futures inched higher on the heels of a two-session climb, with December gold up 50 cents at $444.80 an ounce in morning trade. "The precious metals markets appear stuck around their current levels with no obvious drivers to break the metals out of their currently lethargic ranges," John Reade, an analyst at UBS said in a research note. December gold has traded at or near$445 for the past week.

[54anickel]

58. Taking a hit now - dollar and gold down? Wonder what's up...eom

[AnneD]

66. Viagra

for the same reasons we get more babies after hurricanes, blizzards, etc.

[UpInArms]

67. Gold futures drop $3 to trade at two-week low

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.4830381597-840837156&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- December gold is down $3.60 at $440.70 an ounce after trading as low as $440.50. Prices climbed over $2 in the last two days and haven't seen levels this low since Aug. 10. September silver is down 6.8 cents, or 1%, at $6.90 an ounce after trading at its lowest in seven weeks. Metals indexes also fell, with the CBOE Gold Index ($GOX) down 1.4%.

[54anickel]

78. Miners dig for protection from high energy costs

Newmont building coal power plant

http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050824/RMINES24/TPBusiness/Canadian

NEW YORK -- Newmont Mining Corp., Phelps Dodge Corp. and Barrick Gold Corp., faced with surging energy costs, are building their own power plants, locking in fuel prices and using bigger trucks to reduce expenses.

Newmont, the world's largest gold producer, is constructing a coal-fired power plant in Nevada to save about $50-million (U.S.) a year. Phoenix-based Phelps Dodge, the biggest U.S. copper miner, is expanding its use of hedging to include fuel used at mines in Chile. Toronto-based Barrick, the No. 3 gold producer, is operating 300-ton trucks to haul more dirt.

"Everybody needs to be focused on being more energy efficient," said Bruce Hansen, chief financial officer of Denver-based Newmont. "We have a team looking at ways to save, from making sure people turn off the lights at night to changing air filters on equipment."

snip>

Energy is a mining company's second-biggest expense after labour and makes up about 10 per cent of operating costs, said Brian O'Shaughnessy, chief executive of Rome, N.Y.-based Revere Copper Products Inc., which bought a $600,000 transformer to "improve reliability" of electricity from the power network. To take advantage of non-peak electricity rates, a night shift was added to run the hot mill, a furnace that needs to heat a copper material to 816 C to produce copper coil.

Profits of some of the biggest mining companies are being eroded by the rising costs, even after demand from China and India sent copper prices to a record and gold prices close to a 16-year high.

more...

[UpInArms]

30. Fidelity says one in three workers delaying retirement

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.4066309838-840832287&siteID=mktw&scid=0&doctype=806&

BOSTON (MarketWatch) - Fidelity Investments, the biggest U.S. mutual fund company, Wednesday said a third of working adults are delaying retirement for financial reasons. Fidelity's national survey of workers ages 25 and older found that individuals had different reasons for pushing back retirement, with 55% saying they hadn't saved enough, 35% saying they started saving too late and 34% saying they are continuing to work to maintain their employer-paid health coverage.

[54anickel]

34. Bernanke, Hubbard, Feldstein or ?

http://www.marketwatch.com/news/story.asp?guid=%7B0997E17C%2D9E50%2D41CE%2D9C2A%2DE1FCE52FC277%7D&siteid=mktw&dist=

Three-way race seen to replace Greenspan
By Greg Robb, MarketWatch
Last Update: 12:01 AM ET Aug. 24, 2005

WASHINGTON (MarketWatch) -- One of them worked at Disney World. Another was so apolitical that his colleagues were shocked to discover he was a Republican. And the third stormed out of Washington more than 20 years ago.

One of these three men may soon replace Federal Reserve Chairman Alan Greenspan, according to the conventional wisdom on Wall Street and in Washington.

Glenn Hubbard, who worked at Disney World while growing up in Florida, is currently the dean of the Columbia University Business School. Hubbard was President Bush's top economic adviser during his first term and helped shepherd his prized tax cuts through Congress.

Ben Bernanke, the apolitical economist, worked at Princeton University for 17 years before joining the Federal Reserve board in 2002. At the board, Bernanke tackled some of the toughest questions facing monetary policy, including the threat of deflation. Earlier this year, Bernanke left the Fed to become chairman of Bush's Council of Economic Advisors.

And the last of the three is Martin Feldstein, the president of the National Bureau of Economic Research and a Harvard University economics professor who served as President Reagan's top economist before making a famous break with his administration in 1984 over the size of the federal deficit.

more...

[54anickel]

36. Greenspan tends legacy, no successor yet

http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2005-08-23T192904Z_01_N22483055_RTRIDST_0_BUSINESS-ECONOMY-FED-DC.XML

WASHINGTON (Reuters) - Alan Greenspan, his legacy under the microscope after 18 years as chairman of the Federal Reserve, heads for the annual central bankers' retreat in the Rocky Mountains to face the judgment of his peers.

The 79-year-old is to step down at the end of January when his term on the U.S. central bank's board of governors ends, making the focus of this year's gathering -- the Greenspan years -- particularly timely.

The weekend in Jackson Hole, Wyoming, will likely both render a verdict and fan speculation over his successor.

On Friday morning, Greenspan will reflect on his chairmanship, which began on Aug. 11, 1987, just two months before the "Black Monday" stock market crash that saw stocks take their biggest one-day tumble in history.

The Fed's vow to keep the financial system liquid not only calmed investor nerves but set a positive tone for Greenspan's early days as heir to Fed chief Paul Volcker.

more...

[UpInArms]

41. Treasury gains clipped by robust new-home sales data

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.4261088079-840833199&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- The benchmark 10-year Treasury note remained barely in positive territory after a report showing a record clip of new-home sales last month offset the effects of the day's first report, which showed a tumble in orders for durable goods. At last check, the 10-year note was trading up 1/32 at 100 18/32, yielding ($TNX) a virtually unchanged 4.18%.

[54anickel]

50. Japan Says Sayonara to Bond Market Stability

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_pesek&sid=aX9zP5mW5Q3I

Aug. 24 (Bloomberg) -- The rise in Japanese bond yields coincides with signs of recovery in the world's No. 2 economy. It also reflects something alien to traders here: Political turmoil.

Since Japan is effectively a one-party state, its debt market rarely has anything to fear from politics -- other than politicians issuing too much debt, of course. Japan's debt to- gross-domestic-product ratio is about 150 percent, the biggest by far among developed nations.

That hasn't been a huge problem. Japan is adept at maintaining calm in its financial system. The clubby nature of the world's biggest debt market helps keep rates low. For example, roughly 96 percent of Japan's government securities are held domestically, enabling officials to avoid capital flight even as they sell mountains of debt.

Yet Japan's debt-management skills are about to be tested. While the odds may be long, there's a chance that lower house elections on Sept. 11 will end the ruling Liberal Democratic Party's half-century hold on power. That might foster doubts that Japan's fiscal stability will be maintained.

snip>

Unfriendly to Bonds

The fiscal priorities of the Democratic Party of Japan, the closest thing Japan has to a viable opposition party, aren't all that clear. One policy that may cheer bond investors: The party pledges to trim government expenditures, which might lead to less debt outstanding in the future, driving up prices.

Another DPJ pledge calls for cutting in half the amount individuals may deposit at Japan Post, which runs the world's largest savings bank with 350 trillion yen ($3.1 trillion) in assets. That means the biggest holder of Japanese government bonds might buy less in the years ahead, boosting debt yields and sending prices down.

more...

Remember a couple of weeks ago when the were trying to privatize Japan Post?

[UpInArms]

51. 10:39 EST (happy days are here again!)

Dow 10,530.57 +10.99 (+0.10%)
Nasdaq 2,144.45 +7.20 (+0.34%)
S&P 500 1,220.13 +2.54 (+0.21%)
10-Yr Bond 4.177 -0.10 (-0.24%)

NYSE Volume 423,672,000
Nasdaq Volume 425,420,000

10:30AM: Major indices turn positive following an unexpected rise in new home sales... July new home sales jumped a large 6.5% to a new record high of 1.41 mln (consensus 1.33 mln)... But upon further analysis of the report, as the continued surge in sales came with a surprising dip in prices, as median prices are down -4% year over year, the market now trades in mixed fashion...NYSE Adv/Dec 1624/1200, Nasdaq Adv/Dec 1280/1262

[Roland99]

52. Everything's peachy keen!

DJIA 10,525.40 +5.80
Nasdaq 2,143.61 +6.36
S&P 500 1,219.71 +2.12
Russell 2000 659.52 +4.05
CBOE Volatility 13.26 -0.08
30 Yr Bond 4.41 0.00
10 Yr Bond 4.19 0.00

[UpInArms]

53. From the It's Your Money Dept:

TVI wins 5-yr deal for infrared I.D. markers to U.S. Army

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.4468450232-840835058&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- TVI Corp. (TVIN) said Wednesday that it has won a five-year agreement to provide the U.S. Army with near-infrared reflective material that will be used to identify soldiers in combat. Terms weren't disclosed. The material will be sewn into new Army combat uniforms as a way to minimize so-called friendly fire. The uniforms are expected to be available to the roughly 259,000 soldiers serving the Army by 2007.

EADS to act as prime contractor to bid on Army contract

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.4456941319-840834571&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- EADS (FR:005730) said Wednesday that it will act as the prime contractor on a team bidding for a contract to make light utility helicopters for the Army. The aerospace and defense company said its North American division and its American Eurocopter business unit will offer the UH-145 advanced rotary-wing aircraft for the contract. The Army is planning to buy more than 300 light utility helicopter platforms to replace aging UH-1 and OH-58 aircraft, EADS noted.

[UpInArms]

73. Northrop Grumman wins $208 Million Navy Contract

11:57am 08/24/05 NORTHROP GRUMMAN WINS $208M NAVY TRAINING-RANGE CONTRACT

[54anickel]

57. Is India's outsourcing honeymoon over?

Report: Labor shortage and wage inflation in outsourcing market has other countries in hot pursuit.

http://money.cnn.com/2005/08/23/news/international/india_outsourcing/index.htm

NEW YORK (CNN/Money) - Surprise! India's reign as the world's "Outsourcing King" may be slipping, even with its rock-bottom call center costs.

A new report from market research firm Gartner, Inc. warns that a labor crunch and rising wages could erode as much as 45 percent of India's market share by 2007.

Indian industry watchers acknowledge that the country's outsourcing industry -- its golden goose of the moment -- is indeed facing a "serious" problem.

snip>

More importantly, the Gartner report cautions that a host of emerging countries such as the Philippines, Malaysia, Vietnam and Eastern European nations including Hungary and Poland, are also starting to challenge India's leadership in offshore business process outsourcing (BPO.)

Many U.S. and international companies maintain that outsourcing business processes such as customer service call centers, administrative and accounting processes to low-cost and low-wage countries like India helps to keep down their own cost of doing business.

more...

Pretty much expected as corps treat labor as simply another commodity. The great labor arbitrage continues...:eyes:

[UpInArms]

61. Fraud R Us: Kmart: Big buys, bigger lies

http://www.freep.com/money/business/kmart24e_20050824.htm

Former Kmart Corp. Chief Executive Officer Chuck Conaway and his chief financial officer deceived investors to hide the fact that the company made $850 million in "extraordinary and reckless" inventory purchases -- lies that prevented the public from realizing the Troy-based company was headed for collapse, a federal lawsuit filed Tuesday said.

In a richly detailed 15-page lawsuit filed in U.S. District Court in Detroit, the U.S. Securities and Exchange Commission said Conaway and John McDonald Jr. engaged in numerous deceptions to conceal actions that led to the largest bankruptcy in U.S. retail history in January 2002.

The Kmart bankruptcy and its aftermath ultimately changed the fabric of the nation's discount retail industry. Kmart reorganized under new ownership, rescued its finances and acquired longtime rival Sears, Roebuck and Co. for $12.3 billion. It has relocated its main office to Hoffman Estates, Ill., and the longtime Kmart headquarters in Troy is in the process of being sold.

The Kmart failure wiped out an estimated $6.3 billion in stockholder equity, left creditors on the hook for $7.8 billion in losses and resulted in more than 67,000 firings and the closing of 600 stores.

<snip>

Tom Jendrowski, a Gladwin resident who suffered significant financial losses when his Kmart stock became worthless, said he feels particularly burned by Conaway, whose words attracted him to buy more of the stock.

...more...

Gee, isn't is a wonderful thing that the shareholders get to bear all the costs of the CEOs greed and malfeasance?

background info:

SEC: How Kmart execs defrauded investors in '01

http://www.freep.com/money/business/kmart-box224e_20050824.htm

Summer: Chief Operating Officer Mark Schwartz spends $850 million on Christmas inventory without approval.

August: Executives find out, but think he spent $400 million. Fearing they've exceeded credit limits, they begin belt-tightening.

September: They learn the real amount is $850 million; launch Project Slow It Down to delay payments to suppliers. By late month, they've withheld $163 million from suppliers and owe Kmart's primary banks $1.185 billion.

Late October: Some suppliers, including Black & Decker, 3M, Newell Rubbermaid and Samsung, stop shipments; CEO Chuck Conaway is warned of a cash crunch.

Late November: Conaway and CFO John McDonald Jr. tell employees to lie to vendors and blame late payments on computer glitches. Later, they also lie to investors.

[54anickel]

63. Pounding the table for gold and silver (Mogambo)

http://www.kitco.com/ind/Daughty/aug242005.html

The Federal Reserve tiptoed back, hoping I wouldn't notice, into expanding credit, as evidenced by their $2 billion infusion of make-believe money last week. Not too bad, actually. But worse, they actually started down the path of the ultimate fraud, and bought up $1.6 billion of government debt! Hahaha! The government creates a bond, and the damned Federal Reserve creates the money out of thin air to buy the bond! Hahaha! This is fiat money at its finest! Hahahaha! And we wonder why we get so little respect from the rest of the world!

Of course, this was probably necessitated by the Treasury holding the pedal to the metal and driving us into an astounding level of debt, and as of yesterday they had indebted us by another $57 billion in the first nineteen days of August alone! Three billion bucks a damned day! A day! This takes us to, according to the Treasury's website, a national debt of $7,926,779,954,124.77. Almost eight trillion dollars. And this level of new borrowing increases our debt at over a trillion dollars a year! A trillion!

As if that was not enough to push me off the deep end, they also allowed the banks to decrease reserves again, down to new historical lows, freeing up money that is supposed to be a hedge against losses from all those loans they have been making all these years to less-than-credit-worthy borrowers. Hahahaha! The reserves that the banks were holding against potential losses due to their profligate lending are now being used to create more loans! So that they will have more losses! And less cushion! With a tone of utter contempt in my voice, these are the depths to which banking has sunk.

And why are they doing this? Well, as those clever wags at WhiskeyAndGunpowder.com so pithily put it, "As soon as the credit bubble stops expanding, kiss this economy goodbye."

But what to do with the money? How about borrowing money to buy stocks? Well, Eric J. Fry, in his Rude Awakening column at the Daily Reckoning.com site, reports that stocks are grossly overpriced. "Last year, for example, the S&P 500's 'operating earnings,' the flattering, quasi-fictional results imagined by Wall Street analysts, totaled $66.62. But after applying GAAP standards to these quasi-fictional earnings, and adjusting them for the cost of stock options, the S&P's actual earnings dropped to only $55.25, according to James Montier, equity strategist at Dresdner Kleinwort Wasserstein. That earnings number would put the S&P 500 on a rich PE multiple of 22 times earnings."

more...

[UpInArms]

84. a graphic for the Mogambu

The estimated population of the United States is 296,821,850
so each citizen's share of this debt is $26,737.06

[ramapo]

97. It's our debt!

Remember Bush crowing about how the "surplus" was our money and we deserve it back?

[UpInArms]

65. US/Canada Trade War Brewing: Retaliation hinted in lumber dispute

http://seattletimes.nwsource.com/html/businesstechnology/2002450184_lumber24.html

REGINA, Saskatchewan — The Canadian government yesterday hinted at an escalating trade war with the United States, with two federal ministers warning of tariffs on U.S. products in retaliation for Washington, D.C.'s policies against Canadian lumber.

Trade Minister Jim Peterson is identifying areas where Canadian tariffs could put pressure on the U.S. economy with minimal damage domestically, two of his Cabinet colleagues told reporters attending a Liberal Party caucus in western Canada.

Industry Minister David Emerson — a former chief executive of Canfor, Canada's largest softwood producer — used a sports analogy to describe the federal government's willingness to retaliate against its North American Free Trade Agreement (NAFTA) partner.

"I have a background from my younger days in hockey. When somebody slammed you into the boards with undue force and aggression, you took their number," Emerson said. "I think we've got to take their number."

The Bush administration imposed the tariffs in 2002 after accusing Canada of subsidizing its lumber industry. Most U.S. timber is harvested from private land at market prices, while in Canada, the government owns 90 percent of timberlands and charges fees for logging.

...more...

[UpInArms]

68. Enron Fraud Costs Continue to Soar

Enron hurts CIBC's quarterly results

http://www.marketwatch.com/news/story.asp?guid=%7B5B2B3121%2D43C1%2D48AF%2D9FE6%2DCAA85AF92CA9%7D&siteid=mktw

NEW YORK (MarketWatch) - Canadian Imperial Bank said Wednesday that two Enron-related settlements hurt the firm's third-quarter financial results.

CIBC (BCM: news, chart, profile) said it lost $1.91 billion, or $5.77 a share. A year ago, CIBC earned $596 million, or $1.60 a share.

The most recent quarter included an after-tax provision of $2.53 billion, or $7.45 a share, to account for Enron litigation.

...more...

[54anickel]

72. The Grave Danger of Catfish Terrorism

http://www.mises.org/story/1890

Read a typical news article, editorial, or even a history or economics text, and the “case” for regulation is posed in the following way: In their zeal for profits, business owners will cut corners when it comes to safety, which is even truer when their product falls into the categories of food and drugs.

Capitalists, it is argued, are prone even to make people susceptible to terrorist attacks, all in the name of preserving their profits. Therefore, government must regulate businesses in the “public interest.” The darker side of regulation—its use as a tool of business cartelization or trade protection—generally does not make the news headlines.

Thus, when the State of Alabama recently announced that it was banning the importation of Vietnamese basa fish, the stated reason was to protect health and safety. Declared the August 16 Mobile Register:
Alabama is joining Louisiana in banning the sale of a Vietnamese-imported fish that competes with U.S.-farmed catfish, agriculture officials said Monday.

Alabama Agriculture Commissioner Ron Sparks initiated the statewide ban on the sale of Vietnamese basa fish, similar to catfish, on Friday. The ban will last until all the basa fish in the state can be tested for an antibiotic outlawed for agricultural uses in the United States, he said.

Of course, one can imagine that testing each basa fish (as opposed to the accepted means of taking statistically-reliable samples) will take a long time. (Protection of the “public health,” after all, is a time-consuming matter.) Further down in the article, we hear that the real intention of state officials is to protect Alabamians from terrorists, as officials attempt to raise the level of intensity (and further justify their actions):
Jesse Chappell, a fisheries specialist with the Alabama Cooperative Extension System, said, "The apparent intent is to protect people from virulent infections and bioterrorism". . . .

more...

[happyslug]

82. Mises again Saying Government, bad, Corporations Good.

I liked they comments on the use of Antibiotics on the fish. The comment was basically while the particular antibiotic being tested for is ILLEGAL in the US, it is legal in Vietnam and thus the fish from Vietnam is safer do to the use of a better antibiotic (Ignoring the fact that Antibiotics are added to most animals food NOT to keep them healthy but to fatten them up quicker, and it is to this use of Antibiotics that is leading to increase resistance to antibiotics, much more than the use of antibiotics to cure disease).

Mises is good at find examples of where Government does something bad, but never when Government is doing something good. I would have more respect for them if they did list such examples (As where Government control, intervention or ownership improved people's lives). Mises problem is that it ignores any other social function other than economics. For example Rural Electrification. Corporations did NOT want to extent electric lines to such rural areas for the cost to provide such service was the highest in the country while the Revenue from such service would be the lowest. In my home county of Cambria The Private electric company ran electric lines all along the main line of the Pennsylvania Railroad but refused to extend lines outside the urban areas around the main line. Thus Rural Co-ops had to provide the service. Rural Co-ops only exist do to Government Sponsorship.

Mises would say that the rural people did not really want electricity for they were unwilling to pay for it. Mises just ignore the fact that utility service i more like a public road than a local store in its advocacy of the glories of capitalism.

[54anickel]

106. I didn't get the "Corporations Good" from this article, but to each their

own perspective. I don't agree with everything from Mises, then again I don't agree with everything from any economic theorist. Each has their good and bad, logical and illogical...I keep an open mind and learn a bit from each.

Hell, Mogambo would have never made it to this thread if I had to agree with everything he says. :evilgrin:

[happyslug]

107. I agree, my point is that you have to take Mises with its bias

And they make an effort to hide it so I have to remind myself of their bias. It is like reading TASS under the old Soviet Union, they told the "Truth" but in a way that if you were not careful you would accept the lie not stated (The Neo-Cons and the GOP do the same, spin the facts to make it fit their agenda even if the facts is a clear rejection of their agenda, i.e. IRaq and the Tax Cuts).

[54anickel]

108. I think you need to read just about everything with the critical

thinking part of your brain engaged. I doubt it's anything new, just that the stakes seem higher these days than in the past - maybe it's just the information overload we are subjected to these days.

[Sven77]

74. CNBC Guest

some guy on CNBC today said that the price of oil was not causing inflation, it was the cost of workers. :grr:

[UpInArms]

75. since all the costs of being alive are removed from the

calculation for inflation (i.e. energy and food), it is apparent that any person's existence on this planet is free! Free! I tell you!

:sarcasm:

footnote:

Just remember "Freedom is Free" (or so sayeth the right-wingers) :sarcasm:

[54anickel]

76. Greatest Business Leaders of the 20th Century

My eyes rolled on quite a few of the names listed.

http://www.fastcompany.com/subscr/98/open_3ways-list.html?cid=yahoo-pf-12%3fpartner=yahoo-pf

Here's the lead-in story:

The Three Ways of Great Leaders
http://biz.yahoo.com/special/lead05_article1.html

In a new study, some leading business thinkers identify the attributes of great leadership -- and nominate the best bosses of the 20th century.

What are the elements of this alloy we call "leadership"? Certainly, they include vision and integrity, perseverance and courage, a hunger for innovation, and a willingness to take risks. But in building their list of the top business leaders of the past century, Harvard Business School professors Anthony J. Mayo and Nitin Nohria have unearthed an immutable attribute that's shared by all of the giants of business: They had an innate ability to read the forces that shaped the times in which they lived -- and to seize on the resulting opportunities.

Henry Ford, Ray Kroc, Estee Lauder, Jack Welch -- these business masters had more than their fair share of what Mayo and Nohria call "contextual intelligence." That is, they possessed an acute sensitivity to the social, political, technological, and demographic contexts that came to define their eras. And they adapted their enterprises to best respond to those forces. Their outsized success at sensing opportunities and capitalizing on them had a dual effect: Just as the times profoundly influenced these business masters, they, in turn, profoundly influenced their times.

"We've always treated the historical context of a particular time as a kind of sidebar to any discussion about business leadership," says Nohria, a coauthor of 10 books on leadership and organizational change. "But we've found that context is far more salient than we ever imagined."

Four years ago, Mayo and Nohria set out to fill a void in the field of management thinking: the lack of a canon of history's greatest business leaders. Students of literature read the classics of Shakespeare, Milton, and Joyce; the Harvard professors believed that students of business should understand the history and critical biographies of Sloan, Procter, Disney, and the other business leaders from the past century who profoundly shaped American life. So Mayo and Nohria identified 1,000 great chief executives and company founders of the 20th century; they then surveyed 7,000 business executives, asking them to evaluate and rank the original list of 1,000. Out of this, they produced a ranking of the top 100 business leaders of all time.

more...

[ozymandius]

79. lunchtime check-in

12:24
Dow 10,532.16 +12.58 (+0.12%)
Nasdaq 2,150.35 +13.10 (+0.61%)
S&P 500 1,221.46 +3.87 (+0.32%)
10-Yr Bond 4.185% -0.00
NYSE Volume 873,736,000
Nasdaq Volume 812,714,000

12:00PM: Market remains in positive territory midday, as solid housing data helps offset volatile oil prices and a disappointing read on durable orders, but gains remain modest at best... Much like yesterdays smaller than expected July existing home sales weighed on sentiment, this morning's stronger than anticipated 6.5% rise in July new home sales to a new record high of 1.41 mln (consensus 1.33 mln) has reminded investors that the housing market remains strong...

Sure, July durable orders fell 4.9% (consensus -1.5%), after a revised 9.2% gain over the prior two months, while ex-transportation fell 3.2%, following a 4.5% two-month gain, sparking concern of slowing economic growth... But even though the decline might shave a bit off Q3 GDP forecasts (to 4.5% growth from 5.0%), the volatile data do not represent a new trend, as underlying business investment remains strong... Meanwhile, crude oil prices ($66.30/bbl +$0.50) have been choppy all morning amid concerns that another tropical storm may threaten rigs in the Gulf and following a mixed weekly oil report...

Crude oil inventories rose 1.85 mln barrels (consensus +100K) but gasoline inventories fell 3.25 mln barrels (consensus -1.5 mln)... But with oil prices bouncing back above $66/bbl, the Energy sector has taken notice, still pacing the day's gains and providing some leadership for a market that has lacked much of any throughout most of August... Technology has also shown relative strength, getting a boost from Semiconductor and Hardware... Apple Computer (AAPL 46.94 +1.20) has surged 2.6% amid reports that Google's (GOOG 283.80 +4.22) new Talk instant messaging service will allow users to communicate with AAPL's iChat...

[ozymandius]

80. such happy stock people

12:55
Dow 10,554.79 +35.21 (+0.33%)
Nasdaq 2,155.83 +18.58 (+0.87%)
S&P 500 1,223.83 +6.24 (+0.51%)
10-Yr Bond 41.97 +0.10 (+0.24%)
NYSE Volume 983,651,000
Nasdaq Volume 911,358,000

12:30PM: Stocks extend their gains as buying remains widespread across most areas... It may be worth noting that, in addition to record new home sales reassuring investors that economic growth remains strong, recent market weakness has presented buying opportunities, especially in underperforming sectors like Technology (+0.9%), Consumer Discretionary (+0.4%) and Industrials (+0.3%), which have posted year-to-date losses of 1.5%, 4.4% and 4.4%, respectively... NYSE Adv/Dec 1792/1329, Nasdaq Adv/Dec 1605/1258

[UpInArms]

81. Bankruptcy filings up as law takes effect

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-08-24T152653Z_01_N24616228_RTRIDST_0_BUSINESS-ECONOMY-BANKRUPTCY-DC.XML

WASHINGTON (Reuters) - Bankruptcy filings in U.S. federal courts jumped 16 percent in the quarter ended June 30 from the previous period as individuals rushed to file before a tougher law takes effect, a report from the Administrative Office of the U.S. Court showed on Wednesday.

The quarterly total was the highest level of bankruptcy filings on record under a data series dating to the March 1995 period, the first quarter for which figures are available, a spokeswoman at the Administrative Office said.

In the April-to-June quarter, just prior to and in the three months after a new federal bankruptcy act became law, filings totaled 467,333, up 66,000 from the previous period. Compared with a year ago, filings rose 11 percent, the Administrative Office said.

Filings in the 12 months ended June 30 rose 0.1 percent to 1.64 million from the comparable period a year ago.

...more...

[54anickel]

83. Wonder what the demographics of that group filing are...I think a lot

of your regular "Joe Six-packs" just struggling along trying to make ends meet don't even realize how this will effect them. I'm afraid just the rise in minimum payments alone is gonna catch them by surprise, and then it will be too late.

[UpInArms]

85. 2:10 EST numbers and blather

Dow 10,528.73 +9.15 (+0.09%)
Nasdaq 2,152.35 +15.10 (+0.71%)
S&P 500 1,220.95 +3.36 (+0.28%)
10-Yr Bond 4.178 -0.09 (-0.21%)

NYSE Volume 1,219,964,000
Nasdaq Volume 1,139,371,000

2:00PM: Market continues to weaken, as renewed selling interest pushes the Dow into the red for the first time this afternoon... Notable components recently turning negative include C, DD, HON, IBM, JNJ, JPM, KO, PG and WMT... Meanwhile, Industrials like CAT and UTX have been weak all day following the disappointing durable goods orders data... NYSE Adv/Dec 2029/1180, Nasdaq Adv/Dec 1837/1123

1:30PM: Market pulls back somewhat as oil prices spike to session highs... Crude oil futures have recently touched $66.99/bbl, flirting with the all-time record of $67.10/bbl reached on Aug. 12... However, a 1.1% gain in Energy, led by blue chips like XOM (+0.5%), COP (+1.2%), HAL (+2.5%) DVN (+1.1%) and SLB (+1.4%), appears to be lending some support to the major averages at current levels... XOI +0.7, NYSE Adv/Dec 2031/1144, Nasdaq Adv/Dec 1803/1129

[UpInArms]

88. 2:34 EST oil spooks dow

Dow 10,504.15 -15.43 (-0.15%)
Nasdaq 2,146.73 +9.48 (+0.44%)
S&P 500 1,218.41 +0.82 (+0.07%)
10-Yr Bond 4.185 -0.02 (-0.05%)

NYSE Volume 1,306,659,000
Nasdaq Volume 1,218,395,000

[UpInArms]

89. 2:53 EST DOW under 10,500

Dow 10,495.92 -23.66 (-0.22%)
Nasdaq 2,144.56 +7.31 (+0.34%)
S&P 500 1,216.82 -0.77 (-0.06%)
10-Yr Bond 4.180 -0.07 (-0.17%)

NYSE Volume 1,387,272,000
Nasdaq Volume 1,292,560,000

2:30PM: Major indices continue to trade in mixed fashion as oil prices hitting a new all-time high takes some more wind out of the market's sails... Even though the market will start shifting its focus to distillates (i.e. heating oil) when the summer driving season ends in about two weeks, this morning's larger than expected draw down in gasoline inventories, coupled with the storm concerns in the Gulf, have helped crude oil futures ($67.35/bbl +$1.64) close at another new record...NYSE Adv/Dec 2027/1205, Nasdaq Adv/Dec 1850/1127

[ozymandius]

90. 3pm and falling

Dow 10,485.91 -33.67 (-0.32%)
Nasdaq 2,142.03 +4.78 (+0.22%)
S&P 500 1,215.48 -2.11 (-0.17%)
10-Yr Bond 41.81 -0.06 (-0.14%)
NYSE Volume 1,418,243,000
Nasdaq Volume 1,318,646,000

[ozymandius]

94. looking for a new floor

3:28
Dow 10,444.27 -75.31 (-0.72%)
Nasdaq 2,130.46 -6.79 (-0.32%)
S&P 500 1,211.26 -6.33 (-0.52%)
10-Yr Bond 41.79 -0.08 (-0.19%)
NYSE Volume 1,607,329,000
Nasdaq Volume 1,494,188,000

3:00PM: Blue chip averages and the Nasdaq continue to trade in opposing directions, as concerns about record oil prices curbing profit growth and consumer spending weaken market internals... Advancers on the NYSE, which had outpaced decliners by almost 2 to 1 all afternoon, now hold a 19 to 13 edge, while advancing issues on the Nasdaq struggle to hold a 17 to 12 advantage over declining issues... The ratio of up to down volumes, however, actually still suggests a positive tone to trading while total is running at an above average pace... NYSE Adv/Dec 1934/1302, Nasdaq Adv/Dec 1738/1250

[ozymandius]

95. approaching the close

3:45
Dow 10,452.31 -67.27 (-0.64%)
Nasdaq 2,133.55 -3.70 (-0.17%)
S&P 500 1,211.63 -5.96 (-0.49%)
10-Yr Bond 41.79 -0.08 (-0.19%)
NYSE Volume 1,715,518,000
Nasdaq Volume 1,575,095,000

3:30PM: Market falls off a cliff with only a half hour left in the trading day, as renewed selling interest sends the major averages sharply lower... Homebuilders, however, continue to show relative strength, as the PHLX Housing Sector Index (HGX 528.41 +4.25) looks to close higher for just the first time in nine sessions... Prompting the bulk of the group's recovery effort has been the larger than expected rise in new home sales last month...

However, short covering has perhaps also contributed to the broad-based move to the upside, as BZH, HOV, KBH, RYL and TOL are just a few homebuilders in which short interest (as a percentage of float) exceeds 10%... Toll Brothers (TOL 49.82 +1.89) has also been in focus ahead of its Q3 (Aug) report tomorrow morning... NYSE Adv/Dec 1594/1670, Nasdaq Adv/Dec 1325/1676

[ozymandius]

98. all over but the blather

Dow 10,434.87 -84.71 (-0.81%)
Nasdaq 2,128.91 -8.34 (-0.39%)
S&P 500 1,209.59 -8.00 (-0.66%)
10-Yr Bond 4.179 -0.08 (-0.19%)
NYSE Volume 1,912,262,000
Nasdaq Volume 1,716,164,000

[UpInArms]

99. Fed Reserve calls (emergency) meeting re DERIVATIVES

http://www.marketwatch.com/news/print_story.asp?print=1&guid={2C2C7703-384B-42A9-B000-0D9C0FDA173D}&siteid=mktw

NEW YORK (MarketWatch) -- U.S. stocks ended near seven-week lows Wednesday after oil prices tapped a record high and the New York Federal Reserve called a meeting to discuss trading practices in the derivatives market, prompting concern about a potential credit-risk problem.

...more...

RUH-ROH...

[54anickel]

103. They wouldn't have been so easily spooked if derivatives were the

"market friendly" tool Greenspin tries to make us believe they are.

[54anickel]

100. Ewww! Once I again, I step out for a bit to make a couple of bucks and

come back to bloody, stinkin' mess. Before I left it looked as though they might pull it off and stay relatively flat. Pixies are running outta dust.

[UpInArms]

101. Moody's cuts Ford Motor's sr unsecured debt to junk

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.6795191319-840844310&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Moody's Investors Service on Wednesday lowered the ratings of Ford Motor Co.'s (F) senior unsecured debt to Ba1 from Baa3, and assigned a Ba1 corporate family rating and an SGL-1 speculative grade liquidity rating. It also lowered Ford Motor Credit Co.'s senior unsecured rating to Baa3 from Baa2, and short-term rating to prime-3 from prime-2. The outlook for both companies is negative. Moody's said the downgrades reflect further erosion in Ford's operating results and cash flow generation, and noted that those factors are expected to result in a pretax loss from automotive operations for 2005. Since improvement in Ford's cost structure can only be implemented over a period of time, said Moody's, financial performance is expected to remain weak.

[UpInArms]

102. Moody's lowers General Motors sr unsecured debt to 'Ba2'

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7BFB7BE379-7462-422B-98CB-6DFFF935392C%7D&

SAN FRANCISCO (MarketWatch) -- Moody's Investors Service on Wednesday lowered General Motors Corp.'s (GM) senior unsecured debt to Ba2 from Baa3; its short-term rating to 'not prime' from prime-3; and assigned GM a Ba2 corporate family rating and an SGL-1 speculative grade liquidity rating. Moody's also lowered General Motors Acceptance Corp.'s senior unsecured debt to Ba1 from Baa2, and its short-term rating to 'not-prime' from prime-2. The outlook for both companies is negative. Moody's said the downgrades reflect continuing operating losses in GM's North American automotive operations, as well as challenges in restructuring the company to achieve a viable long-term competitive position. Moody's also said that in its view, a successful restructuring must address the GM's high fixed-cost burden associated with hourly employee healthcare costs and excess capacity, among other issues.

[UpInArms]

104. and now the blather

Close: Stocks closed lower across the board, as oil prices hitting a new all-time record underpinned a sense of nervousness, providing investors with another reason to overlook the reality that market fundamentals have not changed and that economic growth remains robust... Sure, investors raised questions about the economy before the bell, after the Commerce Dept. reported a larger than expected 4.9% decline in July durable orders (consensus -1.5%), following a revised two-month gain of 9.2%...

Even orders excluding the volatile transportation component fell 3.2%, after surging 4.5% over the previous two months... But even though July's drop, which might shave a bit off Q3 GDP forecasts (to 4.5% growth from 5.0%), was the biggest since Jan. 2004, the fact that the data do not represent a new trend, as underlying business investment remains robust, was not really acknowledged until investors digested an unexpected 6.5% rise in July new home sales to a record high of 1.41 mln (consensus 1.33 mln)...

The latter report countered yesterdays smaller than expected July existing home sales figure, reassuring participants that the housing market is not cooling off and improving overall sentiment... That is, until commodities traders took oil prices to new heights... Crude oil futures closed at $67.40/bbl (+$1.69), surpassing the previous record of $67.10/bbl (Aug. 12) amid concerns that Tropical Storm Katrina may reach hurricane strength by the weekend and shut down production in the Gulf... A larger than expected 3.25 mln barrel draw down in gasoline inventories (consensus -1.5 mln) for an eighth straight week, which offset a much larger than expected 1.85 mln build in crude oil inventories (consensus +100K), also contributed to the commodity's 2.6% surge...

[54anickel]

105. Perhaps they should move that meeting up a bit. Sept 15 might be a bit

late. :shrug:

[RUMMYisFROSTED]

109. To Ozy, 54, UIA, Maeve, etc...

Thanks for providing DU's guilty pleasure.


:applause:

[ozymandius]

110. You're welcome!

And thank you for saying!

Ozy :hi: