STOCK MARKET WATCH, Tuesday 30 August

[ozymandius]

Tuesday August 30, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 144 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 253 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 317 DAYS
DAYS SINCE ENRON COLLAPSE = 1374
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 29, 2005

Dow... 10,463.05 +65.76 (+0.63%)
Nasdaq... 2,137.65 +16.88 (+0.80%)
S&P 500... 1,212.28 +7.18 (+0.60%)
10-Yr Bond... 4.17% -0.02 (-0.38%)
Gold future... 441.40 -0.70 (-0.16%)

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 Rob Kirby

THE GREENSPAN LEGACY

Soaring Like a Double Eagle Over Jackson Hole, Wyoming

This past week saw his eminence - a surprisingly sober Sir Alan Greenspan accepting the accolades of his peers and the press, taking a victory lap through the resort community of Jackson Hole, Wyoming. After 18 years stewarding the America’s monetary fortunes at the Federal Reserve, many pundits claimed that this ‘love in’ and the platitudes were his due – so much so, I must admit – that I even found myself ‘welling up’ and reaching for a Kleenex at one point watching CNBC’s Friday afternoon coverage of the proceedings. So, in the retrospective spirit of the moment, I’ve decided to write a snippet or a “look see” of Sir Alan’s legacy from a contrarian’s bird’s eye perspective – highlighting one of his biggest achievements and zero in on how he’s changed over the years.

The End of the Innocence

As I began writing this piece - I found myself wanting to open with a statement that attests to Mr. Greenspan’s contributions or accomplishments as an economist – but truthfully, I’ve had a great deal of difficulty doing so. Years ago, I used to view Al the economist, in such pure terms - like pretty maids all in a row. My view of Alan Greenspan today is not one of economist - appointed to head the Federal Reserve 18 years ago with the solemn duty to execute the effective and responsible monetary policy of the United States of America. My view of Sir Alan today is one of a politician who deserted his roots.

-cut-

Desperado

I must say that I find it somewhat odd – Greenspan’s parting words at Jackson Hole seemed sobering - almost lucid – like he was in fact coming to his senses. It had a familiar ring to it – like a girl from yesterday. He warned of growing excesses that pose systemic risk to the American financial system – the very ones that his economic stewardship outlined above helped to create. If, as and when Sir Alan finally checks out of this Hotel Jackson Hole, my fear is that his legacy and the imbalances he created just won’t ever leave. Oh well, we’ve always got love to keep us alive!

more...

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

[UpInArms]

10. the best this Has-Been Partisan Hack can hope for is an

unmarked grave.

As I see it, every baby boomer in this country will line up to piss on anything that is marked with his disgusting name.

[AnneD]

35. Morning Marketeers

:donut: Here Here UIA. You know that's not true. A certain number of boomer will lay the blame on Clinton.
Well, our population in Houston grew overnight. Every hotel room in the city just about has been rented to NOLA refugees and our shelters are full. I am happy to have them here and the state attorney is making sure there is no price gouging and there are many activities they can see free with a La, Ms, Ala drivers license. But DAMN, they are cleaning out all of Tabasco Sauce (and that is a hanging offense here in Texas. I just can't eat my eggs without it. That's ok, I'll get revenge the Cajun way, I'll just reach over the way and scoop a big bite of peppered eggs off HIS plate with MY for while saying thank yew Cher....Well it will be a fun day in the oil patch and on Wall Street. Well happy hunting and watch out for the Bears- oh and check your Tabasco levels---no word on the MacInnerny Islands of La, where that red gold is made. That's the next shortage

[UpInArms]

53. Mornin' AnneD!

Well, if I blame Clinton for this at all, it's because he didn't can the Has-Been Partisan Hack.

Hope that all those newcomers to the Houston area can hang in there and share the hotsauce with you :hi:

[UpInArms]

2. daily dollar watch

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

Last trade 88.60 Change +0.35 (+0.40%)

Katrina Downgraded to Category 1, Oil Prices Recede, US Dollar Rallies

http://www.dailyfx.com/index.php?option=com_content&task=view&id=3114&Itemid=39

US Dollar - To our surprise, the dollar has completely shrugged off the potential damage of Hurricane Katrina. Yes, Katrina has been downgraded to a category 1 storm from a category 5 storm and oil prices have retraced as a result, but it is too early for her complete damage to be correctly assessed. We think that today’s price action is more a result of a lack of liquidity due to a London market holiday than sensible price action. The long-term consequences of higher oil and natural gas prices is a problem that has not yet been resolved and the latest uptick in prices only exacerbates the potential strain that the higher costs could have on consumers. Oil production platforms across the gulf have been closed causing October crude oil futures to hit a high of $70.80 a barrel during Asian trading. Since 30% of US oil is produced in the Gulf of Mexico, the disruptions down south are particularly alarming. According to analysts contacted by the Financial Times, “12% of US crude oil production capacity and roughly 10% of total US refining capacity was shut down.” There are rumors that some of the refineries were particularly hard hit; the FT reports 1.8 m barrels a day of capacity has been shut down by the storm, which means that it may take weeks for them to be brought back to normal operating capacity. At a time when oil supplies are already dwindling and spare capacity evaporating, this oil supply shock could be disastrous for oil prices in the medium term. However, the big story today was not oil but natural gas futures, which leaped over 14% to a high of $12.07 per million btu. Even though prices have abated thanks to the reopening of the Henry Hub gas gathering facility, these higher prices could be very difficult for US consumers to bear in the coming months. Over 57% of Americans heat their homes using natural gas and it is already estimated that the rise in natural gas prices could cause heating bills to be anywhere from 15-20% higher this winter. Unless the government taps into the country’s Strategic Oil Reserve, there seems to be no respite ahead for the US consumer (It seems that the President is indeed mulling over temporarily “lending” supplies of crude oil to refineries to tie over delayed shipments). Retail gasoline prices continue to creep higher with a gallon of regular grade gasoline reaching $3.96 on Catalina Island in Southern California. According to the EIA, the average price of gasoline in the US for the week of August 22 is $2.612, which is a 10% rise over the past 2 weeks. Sooner rather than later we expect that these high costs will have a major impact on the US economy and the US dollar. Like the University of Michigan consumer confidence survey reported last week, tomorrow’s Conference Board Consumer Confidence survey could also take a sharp dive, which would give dollar bears a reason to reinitiate their short positions.

...more...

Dollar Invades Majors Territory

http://www.dailyfx.com/index.php?option=com_content&task=view&id=3116&Itemid=39

EUR/USD – Euro longs managed to hold on to their positions after losing ground to the advancing dollar bulls following a surprise attack which pushed the pair below the 1.2300 figure. As the price action stalls above the 1.2200 figure, single currency bulls will most likely push the dollar back toward the 1.2300 handle and with sustained momentum taking on the greenback defenses around the 1.2347, marked by the previous trading session highs. Due to the recent volatile price action a wedge has been developing which can be observed clearly on the dealer chart, with an upcoming breakout most likely testing the dollar defenses around the psychologically important 1.2500 handle which is heavily defended by the August 12 high and a key 38.2 Fib of the 1.3477-1.1869 USD at 1.24886. Indicators signal range trading conditions with neutral oscillators, which can lend support to the either side, while positive MACD is diverging from a negative momentum indicator, thus adding to a possibility of a reversal.

<snipping charts>

USD/JPY – Japanese Yen bulls were in full retreat after repeated failures to break below the psychologically important 110.00 handle. As the price action remains in favor of greenback longs, a failure to break above the 111.00-111.50 corridor which is marked by the two key defenses lines established by the 50-day SMA and a 23.6 Fib of the 104.18-113.74 USD rally will most likely see the yen taking over the price action and pushing the greenback back toward the previous levels. Indicators remain in favor a move to the downside with both the momentum indicator and MACD below the zero line, while both oscillators continue to tread in a neutral territory, thus giving either side enough room to maneuver.

...more...

Have a Great Day Marketeers!

[UpInArms]

23. Dollar gains as storm concern abates

http://www.marketwatch.com/news/story.asp?guid=%7BA8AA4BCA%2DB21A%2D425F%2D8B9A%2D8E2CC45C9EA8%7D&siteid=mktw

CHICAGO (MarketWatch) - The dollar hit three-week highs against the yen and gained against its European counterparts Tuesday, helped by weaker-than-expected Japanese spending data and some relief that oil prices remain below $70.

Oil gained overnight but remained shy of record territory. Some relief spread through financial markets that Hurricane Katrina, while expected to rank among the most expensive storms, didn't bring as much havoc to metropolitan New Orleans as once feared. Oil refineries in the area were expected to come back on line, although damage reports were still filtering in.

The White House is also considering tapping oil reserves as short-term aid in the wake of the storm, although Bush aides said no decision has been made.

Crude oil for October delivery traded at $68.30 a barrel on the New York Mercantile Exchange after hitting a record $70.80 Monday.

Expensive oil is seen feeding the U.S. trade deficit, which was behind the dollar's tumble to multiyear lows in 2004. It could also slow the U.S. economy should consumers have to rein in spending on other goods and services.

...more...

[UpInArms]

24. Gold futures fall to a one-month low

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.4065339699-840995914&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- December gold is down $6.10 at $435.30 an ounce in New York, after trading at a low of $434, its weakest level since July 29. "The dollar's strength is having an obvious affect on the precious-metals markets," said Dale Doelling, chief market technician at Trends In Commodities. The greenback strengthened against its major counterparts as worry about the impact of Hurricane Katrina eased when the center of the storm missed New Orleans.

[UpInArms]

32. Dollar gets additional boost from confidence index

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.4300491782-840997135&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

CHICAGO (MarketWatch) -- The dollar briefly extended its gain against the euro and remains up sharply against the yen after the release of a measure of U.S. consumer confidence that came in well above expectations. The report's impact was only partially offset by a second release showing a fall for factory orders. That decline, however, was in line with expectations. The dollar improved from 111.45 yen just ahead of the reports' release to trade recently at 111.51 yen, up 0.8% from where it stood late Monday. The euro slipped from $1.2190 before the data to $1.2178 after the release, but had since scratched back to $1.2184. The euro remains down 0.3% against the dollar compared to late Monday.

[UpInArms]

3. Japan Reports that US reports of Capital Inflows are WRONG

US cap flows better digested with grain of salt?

http://today.reuters.com/investing/financeArticle.aspx?type=economicNews&storyID=2005-08-30T081302Z_01_T278090_RTRIDST_0_MARKETS-JAPAN-CAPFLOWS.XML

TOKYO, Aug 30 (Reuters) - For all the attention the U.S. Treasury's capital flows data gets, some analysts say investors should take those figures with a grain of salt given the sometimes big discrepancies with Japanese numbers.

Take the figures for June.

The Ministry of Finance data shows Japanese investors shed $4.06 billion (446.6 billion yen) of U.S. bonds that month. But according to the U.S. Treasury's widely followed TIC figures, Japanese investors scooped up a net $2.4 billion of U.S. bonds that month.

Economists say the MOF data is a better immediate guide for knowing the ebb and flow of funds because Japan imposes more stringent rules on reporting, a relic of tight capital controls in the past.

<snip>

On the other hand, the U.S. Treasury has said its data measures only a slice of investment flows into the United States and numbers are complicated because reporting is voluntary. The Treasury has said it is trying to improve its data collection.

"You shouldn't take U.S. data at face value," said Mizuho's Shimazu.

Capital flows figures are scoured by exchange rate analysts and economists to divine investment patterns and to track how the United States funds its record current account deficit from cash-rich countries like Japan.

The discrepancies between the two data are not limited to June. In fact, the two figures hardly match in any month.

...more...

[UpInArms]

4. Katrina brings more bad news for pump prices

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2005-08-29T185326Z_01_N29210125_RTRIDST_0_PICKS-WEATHER-KATRINA-GASOLINE-DC.XML

WASHINGTON (Reuters) - There is a new name for what ails U.S. drivers at the gasoline pump, and her name is Katrina.

If things weren't bad enough last week with the average U.S. retail gasoline price hitting a record $2.61 a gallon, Hurricane Katrina struck at the heart of the U.S. oilpatch on Monday.

Katrina's 135 mph (216 kph) winds walloped crude oil platforms and shut down about half the Gulf of Mexico's oil production.

The storm also shuttered eight Gulf refineries that normally churn out about 1.8 million barrels of gasoline each day -- about 9 percent of daily U.S. needs.

<snip>

But if wholesale prices are any indication, consumers are in for more pain in their wallets. Wholesale gasoline traded in the U.S. Gulf Coast leaped by 50 cents a gallon on Monday, and gasoline futures soared as much as 24 cents on the New York Mercantile Exchange.

...more...

[UpInArms]

62. Katrina has no rating impact on oil, gas firms-S&P

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-30T160810Z_01_WNA7169_RTRIDST_0_ENERGY-KATRINA-SP-URGENT.XML

NEW YORK, Aug 30 (Reuters) - Hurricane Katrina is not
expected to affect ratings in the U.S oil and gas sector,
although it is too early to fully assess the storm's damage,
Standard & Poor's said on Tuesday.


"High commodity prices throughout 2005 are expected to
provide some financial cushion for affected companies to
withstand the expected temporary service and production
disruptions and restoration efforts," S&P credit analyst
Jeffrey Morrison said in a statement.




Hurricane Katrina, which slammed into the Gulf Coast on
Monday, put an estimated 2 million barrels per day of refining
capacity off line, representing 10 percent to 12 percent of
total U.S. capacity, S&P said. As much as 90 percent of oil and
gas production from the region also remains shut as a result of
the storm, S&P said.

That run-up in prices had nothing to do with Katrina - So Stop Saying That!

Those prices were supposed to get that high spiky look! :wtf:

[UpInArms]

91. Katrina damages total $24 bln, could rise to $34 bln

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.605448831-841004296&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Hurricane Katrina likely caused more than $24 billion in damages, said Chuck Watson, director of research at Kinetics Analayis Corp., which has developed a computer model to predict damages from tropical storms. The damage estimate could rise by $8 billion to $10 billion if the breaches in the New Orleans levees are not patched in the next few hours, he said. Just before the storm hit, Kinetics Analysis' model was predicting losses of $50 billion, but the storm weakened slightly and shifted to the east. The company is estimating that 22% of Gulf of Mexico oil production and 5% of natural gas production will be disrupted for more than a month.

[UpInArms]

93. Katrina rips through retail sector

http://www.marketwatch.com/news/story.asp?guid=%7BEF8D84FA%2DBD18%2D4E2D%2D87BC%2D0FFD49474AB9%7D&siteid=mktw

CHICAGO (MarketWatch) -- Retail stocks took a uniform turn to the downside in heavy trading Tuesday as investors absorbed the devastation wreaked by Hurricane Katrina.

With few exceptions, retail stocks were treading water as the sector's main measure sunk to its lowest levels in seven weeks. The S&P Retail Index ($RLX: news, chart, profile) was down at 452.1 points.

Investors worried that higher prices at the pump would take a bigger bite out of consumer spending. Last week, retail sales dropped for the fourth straight week, as consumers held back on unnecessary clothing and merchandise purchases, according to the International Council of Shopping Centers.

Chief Economist Mike Niemira blamed some of the 0.3% decline on warm weather as a detriment to fall back-to-school shopping, but indicated that that rising gas prices were crimping spending as well.

"Consumers continue to worry about those high energy expenses and are scaling back on discretionary spending," he said.

...more...

On a human note - I wish I could insert a wave file playing taps for all the lives lost and destroyed by Katrina.

Am going to take a break from the keyboard for a while - it's just too hard to think about anyone caring about the markets right now.

:cry:

[UpInArms]

5. China defends yuan policy

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-08-30T090627Z_01_N30255854_RTRIDST_0_BUSINESS-CHINA-USA-CURRENCY-DC.XML

BEIJING (Reuters) - China defended its currency regime on Tuesday ahead of a visit to the United States by President Hu Jintao, but hinted at possible future changes by saying it would "develop and perfect" the exchange rate.

Some U.S. politicians and industry groups complain that the yuan's small revaluation last month will do little to address the yawning U.S. trade deficit, and hope President Bush will press Hu on the matter when they meet next week.

In a briefing about Hu's trip, He Yafei, director-general of the Foreign Ministry's department of North American and Oceanian affairs, said the reforms to the yuan, also known as the renminbi, fit China's reality.

"We will further develop and perfect the renminbi exchange system with a firm heart," He said.

...more...

[UpInArms]

6. KPMG admits to $2.5 billion tax fraud

http://www.chicagotribune.com/news/nationworld/chi-0508300152aug30,1,3297434.story?coll=chi-newsnationworld-hed

NEW YORK -- Sparing itself from a potentially lethal criminal indictment, KPMG LLP, the nation's fourth-largest accounting firm, admitted Monday to setting up fraudulent tax shelters for its wealthiest clients that cost the U.S. billions of dollars in revenue.

While the firm avoided prosecution, Justice Department officials in New York filed tax fraud charges against eight former employees of the accounting firm and one outside lawyer for allegedly conspiring to defraud the Internal Revenue Service through the scheme.

Appearing in a Lower Manhattan courtroom, KPMG lawyers admitted that "a number of KPMG tax partners engaged in conduct that was unlawful and fraudulent."

<snip>

Citing a desire to avoid "collateral damage" to the public and KPMG employees, U.S. Atty. Gen. Alberto Gonzales, speaking in Washington, signaled that the government was looking to avoid an Andersen-like collapse.

<snip>

"Simply stated, if you had a multimillion-dollar tax liability, KPMG would find a way to wipe it out, even when the firm's own experts thought the transactions would not survive IRS scrutiny," said IRS Commissioner Mark Everson. "The only purpose of these abusive deals was to further enrich the already wealthy and to line the pockets of KPMG partners."

...more...

[54anickel]

100. Gonzales is full of shit!!! He doesn't give a damn about the public.

snip>

If the Andersen case serves as a guide, KPMG's roughly 1,000 corporate clients would likely have stopped doing business with a firm under federal indictment.

Gonzales said that "there are many factors that we weigh to determine the appropriate law enforcement action," including "what are the consequences on the company and what are consequences on the industry?"

snip>

The Department of Justice called the KPMG scandal the largest criminal tax case ever filed and said the firm's scam allowed clients to avoid paying $2.5 billion in taxes.

[UpInArms]

7. NEW YORK STOCK EXCHANGE: Member charged in merger death threat

http://www.chicagotribune.com/business/chi-0508300111aug30,1,7412142.story?coll=chi-business-hed

NEW YORK -- A 32-year member of the New York Stock Exchange was charged Monday with making a death threat to another NYSE seatholder who is suing the exchange to block its purchase of Chicago-based Archipelago Holdings Inc.

Edward A. Reiss, 65, turned himself in to the New York Police Department and was released after a misdemeanor aggravated harassment charge was filed. The police have been investigating a telephone message that threatened William Higgins.

Higgins, along with three other NYSE members, filed a lawsuit in May to block the Big Board's acquisition. The proposed takeover of Archipelago would convert the 213-year-old institution into a for-profit public company.

...short blurb...

[UpInArms]

8. Chavez plans to offer oil to aid U.S. poor

http://www.chicagotribune.com/news/nationworld/chi-0508300139aug30,1,5132447.story?coll=chi-newsnationworld-hed

CARACAS, VENEZUELA -- After a four-hour closed-door meeting Monday, Jesse Jackson and Venezuela President Hugo Chavez announced a plan to help the poor in the United States weather the storm of rising fuel costs this winter.

Chavez said that the Venezuelan-owned, Texas-based Citgo Petroleum Co. would offer to poor schools, hospitals, churches and other groups 66,000 barrels a day of oil products refined at its U.S. plants.

Oil Minister Rafael Ramirez said Chavez has offered heating oil to be sold directly to communities, avoiding retailers, to bring down costs, Ramirez said. Details of the plan would have to be settled. Jackson called it "a brilliant idea."

...short blurb...

[UpInArms]

9. Federated wraps up May merger; to close seven more stores

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.3223016435-840991543&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Federated Department Stores (FD) on Tuesday said it completed its merger with The May Department Stores. The company said it has identified an additional seven duplicate stores in California, New York and Massachusetts it intends to divest in 2006. The company reiterated its July 28 plan to shut down 68 stores. Conversion of most May Company locations to the Macy's nameplate is expected in fall 2006, consistent with Federated's announcement of July 28. Yet to be determined is whether it will divest either the Filene's or Macy's East store in downtown Boston. The specific store to be divested has not yet been determined. Federated stock rose 16 cents to $70.66 on Monday.

[UpInArms]

11. Today's Reports:

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

Aug 30	10:00 AM	Consumer Confidence	Aug	-	101.0	101.0	103.2	-	
Aug 30	10:00 AM	Factory Orders		Jul	-	-2.2%	-2.3%	1.4%	-
Aug 30	2:00 PM		FOMC Minutes		Aug 9	-	-	-	-	-

[UpInArms]

26. WHEE! U.S. consumer confidence bounces back in August!

(and I have some swampland to sell :eyes: )

http://www.marketwatch.com/news/newsfinder/pulseone.asp?guid={70E81765-B168-47EF-B0E5-6A5F1F68E4DC}&siteid=mktw

WASHINGTON (MarketWatch) - The U.S. consumer confidence index rose to 105.6 in August, reversing most of July's decline to 103.6, the Conference Board said Tuesday. Economists were expecting the index to decline further to 100.8, according to a survey conducted by MarketWatch. The present situation index rose to 123.6 from 119.3, the highest since September 2001. The expectations index, meanwhile, increased to 93.7 from 93.2.

(edited to add the line info)

10:00am 08/30/05 U.S. CONSUMERS MORE UPBEAT ABOUT EMPLOYMENT

10:00am 08/30/05 U.S. AUG. EXPECTATIONS INDEX 93.7 VS. 93.2

10:00am 08/30/05 U.S. AUG. CONSUMER CONFIDENCE BETTER THAN 100.8 EXPECTED

10:00am 08/30/05 U.S. AUG. PRESENT SITUATION INDEX 123.6, BEST SINCE SEPT '01

10:00am 08/30/05 U.S. AUG. CONSUMER CONFIDENCE INDEX 105.6 VS. 103.6

[AnneD]

38. I want to have

what they're smoking...dang that must be some powerful stuff.:eyes: :party: Shall we take bets on when and how much it is revised down.

[punpirate]

96. CHOCO RATION...

... lowered raised to 25 grams per week....

[UpInArms]

27. U.S. July factory orders down 1.9%, in line with forecast

(pay no attention to that man behind the curtain)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.4170573264-840996383&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Orders for U.S.-made factory goods decreased 1.9%in July, the Commerce Department estimated Tuesday. The drop was in line with forecast of Wall Street economists. It was the biggest drop in factory orders since April 2004. Orders for nondefense capital goods excluding aircraft - so-called core factory orders - fell 4.1% in July. Shipments of factory goods rose 0.7% in July, the third straight monthly gain. Inventories increased 0.5%, and have risen in eighteen of the last nineteen months. Unfilled orders rose 1.0%, the third straight monthly gain. Orders for durable goods decreased 4.9% in July, unrevised from the initial estimate last week. Orders for nondurable goods increased 1.7%.

10:00am 08/30/05 U.S. JULY FACTORY ORDERS EX-TRANSPORTATION DOWN 0.5%

10:00am 08/30/05 U.S. JULY DURABLE ORDERS DOWN 4.9%, UNCHANGED VS PREV EST.

10:00am 08/30/05 U.S. JULY FACTORY ORDERS DROP BIGGEST SINCE APRIL 2004

10:00am 08/30/05 U.S. JULY FACTORY ORDERS DOWN 1.9%, IN LINE WITH FORECAST

[UpInArms]

30. more info

http://today.reuters.com/investing/financeArticle.aspx?type=economicNews&storyID=2005-08-30T135958Z_01_N28166815_RTRIDST_0_ECONOMY-FACTORY-URGENT.XML

excerpt:

While orders were not as weak as expected in July, the department said orders were not quite as strong as previously thought in June, when they rose just 0.9 percent. The department had previously said June orders were up 1.4 percent.

Orders for transportation equipment plummeted 8.8 percent in July. Excluding that drop, factory orders were down 0.5 percent, the first decrease since April.

Non-defense capital goods orders excluding aircraft dropped 4.1 percent after a 4.9 percent rise in June, offering a cautionary note on business investment plans.

The department said factory shipments, which held steady in June, rose 0.7 percent in July. Inventories also rose, climbing 0.5 percent - the 18th increase in the last 19 months.

...more...

[UpInArms]

86. FOMC Minutes - 2006 growth forecast cut/inflation core raised

FOMC sees inflation risks rising

http://www.marketwatch.com/news/story.asp?guid=%7BB0E5D47A%2D341E%2D4F65%2DA77C%2DDB17B62F6DBA%7D&siteid=mktw

WASHINGTON (MarketWatch) - Federal Reserve policymakers just are not comfortable with the inflation outlook.

And some FOMC members wondered why financial markets weren't as concerned, according to a summary of the FOMC Aug. 9 meeting released on Tuesday.

According to the report, "most" FOMC members said inflation risks had "ticked up" over the summer, due to higher energy prices and an upward revision to inflation in the Commerce Department's benchmark revisions to the GDP data.

On the other hand, "many" other FOMC members argued that businesses could not raise prices because of low-wage goods coming into the U.S. from China and India, and as long as the FOMC continued hiking rates at a measured pace.

But the more concerned members of the FOMC said that core inflation was already running at the upper end of their acceptable range.

There was some sentiment on the FOMC that financial markets were not alert to the risk that the FOMC might be forced to become more aggressive if the inflation numbers turned ugly in coming months.

...more...

"Turned ugly"? Ewwww! I think we may be turning yet another corner :(

2:00pm 08/30/05 FOMC MINUTES: FED STAFF CUTS 2006 GROWTH FORECAST

2:00pm 08/30/05 FOMC MINUTES: FED STAFF SEES FULL EMPLOYMENT BY YR-END

2:00pm 08/30/05 FOMC MINUTES: FED STAFF RAISES CORE INFLATION FORECAST

2:00pm 08/30/05 FOMC: TIMING, EXTENT OF HOUSING SLOWDOWN UNCERTAIN

2:00pm 08/30/05 FOMC: MEMBERS SAW SIGNS OF COOLING IN HOUSING SECTOR

2:00pm 08/30/05 FOMC: SOME MEMBERS VIEWED MARKET INTEREST RATES AS TOO LOW

2:00pm 08/30/05 FOMC: SOME SAID MORE HIKES WOULD KEEP INFLATION IN CHECK

2:00pm 08/30/05 FOMC: SOME SAW CORE INFLATION AT UPPER END OF STABLE RANGE

2:00pm 08/30/05 FOMC: PACE, EXTENT OF FUTURE HIKES DEPENDS ON DATA

2:00pm 08/30/05 FOMC MINUTES: INFLATION RISKS 'TICKED UP' OVER SUMMER

[UpInArms]

12. Countrywide Financial dips as BAC cuts to 'sell'

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.3536105556-840992937&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Countrywide Financial (CFC) shares fell 2% to $32.50 in pre-market trade on Tuesday after Bank of America cut its rating on the mortgage financing giant to "sell." In a note to clients, analyst Robert Lacoursiere cited slower growth and worsening visibility and said the company's valuations "should compress toward cyclical troughs." He cut his price target to $30 a share from $39 a share for Countrywide. He also raised his earnings outlook for IndyMac (NDE) but cut its price target to $41 a share from $47 a share. Lacoursiere said Golden West Financial (GDW) remains the "most defensive" mortgage stock.

[UpInArms]

13. Zale 4Q Earnings Decline 41 Percent

http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=AP&Date=20050830&ID=5071499

DALLAS (AP) - Fine jewelry retailer Zale Corp. said Tuesday that earnings declined nearly 41 percent in the fiscal fourth quarter, and the company announced plans to close 30 to 35 Bailey Banks & Biddle stores after the holiday season.

...more...

[UpInArms]

14. U.S. retail chain store sales fall 4 weeks in a row

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.3609786343-840993307&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Sales at major U.S. retail chain stores fell 0.3% last week, the fourth decline in a row, the International Council of Shopping Centers said Tuesday. Same-store sales decelerated to 3.9% year-over-year growth from 4% the previous week. "Consumers continue to worry about those high energy expenses and are scaling back on discretionary spending," said Michael Niemira, chief economist for the shopping center group. ICSC expects August same-store sales to increase by about 4% year-over-year when most companies report on Thursday.

[UpInArms]

17. U.S. chain store sales fall in latest week-Redbook

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-30T125432Z_01_NAT001767_RTRIDST_0_ECONOMY-RETAIL-REDBOOK-URGENT.XML

NEW YORK, Aug 30 (Reuters) - U.S. chain store sales fell in the final week of August, with back-to-school sales suffering due to unusually warm weather, a report said on Tuesday.

Sales in August to date were down 1.0 percent compared with the same span in July, while sales at major retailers rose by 3.4 percent on a year-over-year basis for the week ended Aug. 27, said Redbook Research, an independent company.

"Some retailers believe hot weather may be delaying back-to-school activity, especially in the apparel categories," Redbook said.

"Despite the month's softness, retailers continue to expect satisfactory back-to-school and fall business in coming weeks," Redbook added.

...more...

[UpInArms]

15. Oil edges up on storm damage fear

http://www.marketwatch.com/news/story.asp?guid=%7BE6ED94D2%2DA78F%2D4F71%2DB34A%2DF7475EBA1DC7%7D&siteid=mktw

NEW YORK (MarketWatch) - Crude-oil futures were higher in electronic trade Tuesday, as traders continued to assess the damage that Hurricane Katrina has caused to production in the Gulf of Mexico.

"Intermediate- to long-term impact will take days it not weeks to determine," said CreditSights analyst Brian Gibbons.

"Oil and natural gas prices will remain high given the magnitude of the near-term impact and the potential for long-term damages, plus the potential for additional, unexpected supply disruptions in such a low spare capacity environment," he said.

Crude for October delivery were last up $1.50, or 2.2%, at $68.70 a barrel. The contract traded as high as $70.80 early Monday, before moving back to close well off its peak following speculation of a possible release from the Strategic Petroleum Reserve and reports that OPEC will consider a hike in production when it meets in September.

The contract closed up $1.07, or 1.6%, at $67.20 a barrel on Monday.

Unleaded gasoline futures were up 7.41 cents, or 3.6%, at $2.135 a gallon, while heating oil futures added 3.62 cents, or 2.4%, to $1.955 a gallon.

...more...

[UpInArms]

33. Unleaded gas futures lead energies higher ($2.23 gal)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?guid={B508265E-5DEC-45EE-A78A-F1B114191D1C}&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Unleaded gas led the climb among the energy futures in early trading with traders looking for any damage reports to oil and natural-gas facilities in the Gulf of Mexico in the wake of Hurricane Katrina. September unleaded gas is up 6%, or 12.44 cents, at $2.185 a gallon -- a new record. October crude is at $69.25 a barrel, up $2.05, or 3.1%. September heating oil is up 8.12 cents, or 4.3%, at $1.99 a gallon. October natural gas is up 4.5%, or 53.1 cents, at $11.65 per million British thermal units.

[UpInArms]

60. More pain at the gasoline pump (Consumer cost to be more than $3 gal)

http://www.marketwatch.com/news/story.asp?guid=%7B6ECFD9AB%2D15CE%2D4AC7%2D851D%2D7B1C7420AA09%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Consumers will take a direct hit from all the storm havoc in the Gulf of Mexico as prices at the gasoline pump are expected to move higher even as the summer driving season comes to a close in one week.

"The evacuations and preparations that Floridians took last week consumed an estimated 20 million gallons of unleaded gasoline," said John Person, president of National Futures Advisory Service. Listen to interview with Person.

Now there's the evacuation of almost 2 million residents in the New Orleans area, and possibly more throughout Louisiana, and that "will also cause a drain on inventories," he said.

"The biggest concern is what damage and how fast supplies will become available to be able to be replenished if considerable damage is done to Gulf region oil rigs and refineries" by Hurricane Katrina, he added.

<snip>

"Most places will be north of $3 a gallon," said Tom Kloza, chief oil analyst at the Oil Price Information Service. "The Southeast is particularly at risk for many reasons -- not just for high prices but for continuity of 'normal' supply. The Midwest as well," Kloza said.

<snip>

the gougers come out

"Gulf Coast gasoline trading remains absolutely frenzied with latest cash prices for unleaded regular soaring some 75-80 cents a gallon over gasoline futures," he said.

...more...

Charging more than the futures? The fuel those people are buying was bought for much less. :argh:

[UpInArms]

46. Crude at $70.45 bbl (up $3.25)

11:16am 08/30/05 OCT CRUDE JUMPS $3.25 TO $70.45/BRL AFTER $70.60 HIGH

[UpInArms]

54. Crude futures near $71 a barrel

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.474410706-840999022&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Crude futures rallied to an intraday high of $70.90 a barrel in New York, surpassing the electronic trading record of $70.80 from early Monday. October crude was last at $70.75, up $3.55, or 5.3% as traders awaited definitive reports on storm damage in the Gulf of Mexico.

[UpInArms]

64. Shell says its U.S. Gulf output still shut after storm

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.5089378819-841000382&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Shell Oil, the U.S. unit of Royal Dutch Petroleum Co. (RD) said Tuesday all of its Gulf of Mexico oil and natural gas production remained shut one day after Hurricane Katrina swept through the area. A company spokeswoman said the company was conducting aerial surveys of its offshore facilities. "Our production is completely shut in and we have reconnaissance flights out there right now," she said. Shell's daily production in the Gulf ahead of the storm was running at about 300,000 barrels of oil and 1.2 billion cubic feet of natural gas.

[UpInArms]

68. Chevron says won't know full storm damage until Wednesday

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.5178117708-841000774&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Chevron Corp. (CVX) said Tuesday it will not know the extent of hurricane damage to its Gulf of Mexico oil and gas facilities until Wednesday. A Houston-based spokesman for the nation's second-biggest oil company said their aircraft were currently making initial damage assessments of offshore rigs and onshore facilities, including the 325,000 barrel-per-day Pascagoula refinery in Mississippi, which the company evacuated ahead of Katrina. Pascagoula is one of the biggest refineries along the Gulf Coast. Chevron evacuated 2,100 offshore employees and contract workers and shut its New Orleans office ahead of the hurricane. The company declined to say how much oil and gas output was shut by the storm.

[UpInArms]

88. Newfield Exploration loses production platform to hurricane

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.5842543634-841003505&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Newfield Exploration Co. (NFX) said Tuesday that it appears to have lost its "A" production platform at Main Pass 138 as a result of Hurricane Katrina, following an aerial survey of its operations in the eastern Gulf of Mexico. The Houston-based oil and gas company said all of its other structures appear to be intact. The company said it began shutting in production on Saturday in preparation for the hurricane and since that time 1.1 billion cubic feet of natural gas equivalent has been deferred.

[UpInArms]

89. Diamond Offshore trying to find one rig, secure another

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.5899713889-841003657&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Diamond Offshore Drilling Inc. (DO) said Tuesday that its jack-up drilling rig Ocean Warwick could not be found during a fly-over search made earlier in the day. The Warwick is insured for $50 million, net of applicable deductibles, and has a book value of $14 million. The Houston-based drilling services company said it's also working to secure its Ocean Voyager drilling rig, which broke free from its moorings in the aftermath of hurricane Katrina and has been located roughly 9 miles north of its pre-storm location. Initial fly-bys of other rigs in the path of the hurricane haven't indicated any damage, Diamond Offshore said.

[UpInArms]

92. GlobalSantaFe: 1 Gulf of Mexico rig grounded, 2 listing

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.6080452083-841004371&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) GlobalSantaFe Corp. (GSF) said Tuesday that as a result of Hurricane Katrina, one of its rigs in the Gulf of Mexico drifted off its original location and was grounded in shallow waters near the mouth of the Mississippi River. The Houston-based oil and gas company said that two other rigs were listing slightly, and crews were dispatched today to assess their condition. GlobalSantaFe said the other two rigs in its five-rig Gulf fleet showed no signs of damage after a preliminary aerial inspection. The company said personnel began returning to the rigs today to assess their conditions.

[UpInArms]

16. U.S. stock futures slip as storm damage surveyed

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-30T124254Z_01_N30261960_RTRIDST_0_MARKETS-STOCKS-UPDATE-2.XML

NEW YORK, Aug 30 (Reuters) - U.S. stock futures declined, pointing to a weaker market open on Tuesday on the heels of what may be one of the costliest hurricanes in U.S. history for insurers.

Risk analysts say damage from Hurricane Katrina may cost insurers as much as $26 billion, pressuring companies such as St. Paul Travelers Co. (STA.N: Quote, Profile, Research). But some European peers were steady in early trading on relief that the figure wasn't higher.

Stocks closed higher on Monday as a downgrade of the hurricane helped push oil down from record highs. Crude futures were up $1.18 to $68.45 on Tuesday.

"This morning, when you see the damage, it's bringing it back to reality," said Rick Meckler, president of investment firm LibertyView Capital Management in Hoboken, New Jersey. "It's hard to see it as a positive, so you're likely to see some weakness as people reassess both the impact of the oil prices and the damage done to some southern businesses."

...more...

OMG - you mean they can't put a "positive" spin on devastation, destruction, loss of life? What's the world coming to? :sarcasm:

[UpInArms]

18. Treasurys mark time ahead of consumer confidence report

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.3758783565-840993966&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- Treasury notes were little changed ahead of the release of a measure of consumer sentiment, due at 10 a.m. Eastern time. The report will be compared to last week's release of consumer sentiment figures from the University of Michigan, which showed the lowest reading since May. The benchmark 10-year Treasury note was priced at 100 22/32, up a slender 1/32, or about 31 cents per each $1,000 in securities at face value, from Monday. The small price change left its yield ($TNX) virtually unchanged at 4.16%. The 2-year note rose 1/32 to 99 30/32, yielding 4.03% vs. 4.05%.

[UpInArms]

22. Treasury Check-Kiting Scheme: Fed adds reserves through 2-day system repur

Fed adds reserves through 2-day system repurchases

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-30T133232Z_01_N30342832_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Aug 30 (Reuters) - The Federal Reserve said on Tuesday it added temporary reserves to the banking system through two-day system repurchase agreements.

Fed funds last traded at 3.563 percent, above the Fed's target of 3.500 percent 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

[UpInArms]

55. Pumping the Debt: US Treasury to sell $20 bln 13-day bills Wednesday

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-30T150407Z_01_WAT003709_RTRIDST_0_ECONOMY-BILLS-CASHMANAGEMENT-URGENT.XML

WASHINGTON, Aug 30 (Reuters) - The U.S. Treasury Department said on Tuesday it will sell $20.00 billion of 13-day cash management bills on Wednesday, Aug. 31.

The bills will be issued on Sept. 2 and will mature on Sept. 15. The Treasury said the net long position reporting threshold is $7.00 billion.

Noncompetitive bids must be received 12:00 noon EDT (1600 GMT) and competitive bids by 1:00 p.m. EDT (1700 GMT).

The CUSIP for the cash management bills is 912795VR9.

[UpInArms]

63. Treasury investor sentiment little changed-survey

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-30T155031Z_01_N30281340_RTRIDST_0_FINANCIAL-TREASURIES-JPMORGAN.XML

NEW YORK, Aug 30 (Reuters) - Investor sentiment in Treasuries barely budged from a week ago, as bond yields have been stuck in a tight range ahead of Friday's August nonfarm payroll report, a survey released on Tuesday showed.

Investors who said on Monday they were long Treasuries slipped to 17 percent from 19 percent last week, J.P. Morgan Securities said.

Those who said they were short Treasuries totaled 47 percent, unchanged from a week ago.

Investors surveyed who said they were neutral on Treasuries increased to 36 percent from the prior week's 34 percent.

Among its active clients, which include market makers and hedge funds, 8 percent of them said they were neutral on Treasuries, up from 6 percent a week earlier, J.P. Morgan said.

...more...

[UpInArms]

19. pre-opening blather

8:55AM: S&P futures vs fair value: -1.8. Nasdaq futures vs fair value: -4.5. Futures trading moves slightly lower, and the cash market is still poised for a downside start as the price of crude ($68.75/bbl) continues to increase. Home Depot (HD 40.80 +0.36) shares enjoy an early rise, as Katrina's damage continues to maintain traders' interest in the retailer. Separately, the treasury market is trading in lackluster fashion ahead of today's economic data, particularly the most recent FOMC minutes. The benchmark 10-year note is down two ticks and yields 4.16%.

8:35AM: S&P futures vs fair value: -1.7. Nasdaq futures vs fair value: -3.0. Futures trading holds steady and continues to point towards a modestly lower open for the cash market, as the Katrina factor continues to weigh on sentiment. Crude futures are currently at $68.40 versus yesterday's close of $67.20. Another item of added interest today will be GM's analyst meeting, which begins at 9:45 ET. Look for comments from that meeting to influence GM's stock and perhaps the broader market.

8:03AM: S&P futures vs fair value: -1.6. Nasdaq futures vs fair value: -3.0. Futures trading suggests a modestly lower open for the cash market, as the aftermath of Hurricane Katrina creates uncertainty with respect to oil production and refining capabilities. That uncertainty is reflected in energy futures, which are trading higher and serving as the key focal point weighing on sentiment. Separately, the August Consumer Confidence report will be released at 10 ET, along with Factory Orders, and will be followed later in the day by the Minutes from the Aug. 9 FOMC meeting.

[UpInArms]

20. 9:34 EST spinning wheels heading south

Dow 10,433.34 -29.71 (-0.28%)
Nasdaq 2,129.76 -7.89 (-0.37%)
S&P 500 1,208.79 -3.49 (-0.29%)
10-Yr Bond 4.146 -0.27 (-0.65%)

NYSE Volume 41,150,000
Nasdaq Volume 55,881,000

I'm looking forward to seeing the "recovery" :eyes:

[UpInArms]

25. 9:58 EST numbers (prior to reports)

Dow 10,412.26 -50.79 (-0.49%)
Nasdaq 2,129.20 -8.45 (-0.40%)
S&P 500 1,207.44 -4.84 (-0.40%)
10-Yr Bond 4.146 -0.27 (-0.65%)

NYSE Volume 185,994,000
Nasdaq Volume 186,494,000

9:40AM: As futures trading had suggested, the cash market began the session lower as Hurricane Katrina's damage continues to weigh upon sentiment. On account of crude oil's ($68.84/bbl +1.64) uptick, energy stocks are enjoying an early boost. Dow component Exxon-Mobil (XOM 58.73 +0.31) is up about 0.53%, but Wal-Mart (WMT 45.45 -0.20), which closed 3.3% of its stores in Katrina's wake, is trending negative.

9:15AM: S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: -4.5.

[UpInArms]

28. 10:05 EST recovery in progress

That confidence seems to be spreading :eyes:

Dow 10,420.70 -42.35 (-0.40%)
Nasdaq 2,132.05 -5.60 (-0.26%)
S&P 500 1,207.41 -4.87 (-0.40%)
10-Yr Bond 4.150 -0.23 (-0.55%)

NYSE Volume 229,600,000
Nasdaq Volume 225,297,000

[ozymandius]

29. confidence falling as oil prices rise

10:11
Dow 10,407.41 -55.64 (-0.53%)
Nasdaq 2,129.90 -7.75 (-0.36%)
S&P 500 1,207.02 -5.26 (-0.43%)
10-Yr Bond 4.147% -0.03
NYSE Volume 257,335,000
Nasdaq Volume 247,294,000

Oil Prices Up, Traders Await Katrina Data

VIENNA, Austria (AP) -- Oil futures rose more than $1 a barrel Tuesday as traders awaited reports on the extent of the damage Hurricane Katrina had caused to U.S. oil and gas refineries in the Gulf of Mexico.

Analysts said that -- even if Katrina did less harm than feared -- its effects were bound to tighten the availability of already scarce refined products, thereby driving prices up further.

Gasoline and heating oil, which hit new closing highs on the New York Mercantile Exchange on Monday, continued their upward climb. A gallon of unleaded gas rose more than 8.6 cents to $2.1470 by afternoon in Europe, while heating oil rose more than 5 cents to $1.9615 a gallon.

Light sweet crude for October delivery rose $1.51 to $68.71 a barrel on the Nymex. Prices are more than 50 percent higher than a year ago.

more...

http://biz.yahoo.com/ap/050830/oil_prices.html?.v=12

[UpInArms]

21. Death Profiteers Swoop In: Oil stocks in morning rally

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.4020656829-840995409&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Oil and gas stocks rallied Tuesday morning with investors betting that shut-in production in the Gulf of Mexico would lead to a sustained rise in energy futures and benefit the group. The Amex Oil Index ($XOI) rose 0.5% to 971.73 points, the Philadelphia Oil Service Index ($OSX) gained 0.7% to 163.87 points, and the Amex Natural Gas Index ($XNG) added 0.3% to 381.66 points.

[Zynx]

During the Napoleonic Wars and after, British companies did even worse.

They sought permission from the governments of various countries to collect unclaimed bodies to use their bones for livestock feed and industrial purposes.

[UpInArms]

51. that's beyond horrific

and reminds me of the movie, Soylent Green.

:shudder:

[UpInArms]

31. Skewed Poverty Report:

10:15am 08/30/05 REAL U.S. MEDIAN HOUSEHOLD INCOME FLAT FOR 2ND STRAIGHT YEAR

10:15am 08/30/05 2004 PERCENT WITHOUT HEALTH INSURANCE STEADY AT 15.7%

10:15am 08/30/05 U.S. 2004 POVERTY RATE RISES TO 12.7% FROM 12.5% IN 2003

10:15am 08/30/05 U.S. REAL HOUSEHOLD INCOME UNCHANGED IN 2004 AT $44,389

[Roland99]

36. Income flat for 2 years in a row? But...but...but...

The economy is on FIRE!

[UpInArms]

48. U.S. incomes treading water (NOT!)

http://www.marketwatch.com/news/story.asp?guid=%7BAA922AC6%2DADB4%2D4691%2DAE17%2DBCF7C0AF9C29%7D&siteid=mktw

WASHINGTON (MarketWatch) - For the second straight year, the income of the typical U.S. family was unchanged in 2004 after adjusting for inflation, the Census Bureau said Tuesday.

The real median income of U.S. households was essentially unchanged at $44,389 in 2004, the government said in its annual report on income and poverty trends.

"Median income" means half of U.S. households made more, and half made less. "Real" means adjusted for inflation.

The official poverty rate increased from 12.5% to 12.7%, representing 37 million people in poverty, up from 35.9 million in 2003. Among children, the poverty rate remained at 17.8% or 13 million.

For a family of four, the poverty level was defined as household income of $19,307. For a single person, it was income of $9,645.

Real median earnings for men working full-time and year-round fell 2.3% to $40,798, while real median earnings for women working full-time fell 1% to $31,223. Women working full-time earned 77% of men working full time, up from 76% in 2003.

...more...

[UpInArms]

67. CEO pay: Sky high gets even higher

(my thanks to Algorem and this DU thread:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=1737319&mesg_id=1737319)

http://money.cnn.com/2005/08/26/news/economy/ceo_pay/

NEW YORK (CNN/Money) – If sky-high executive pay at publicly traded companies gives you vertigo, you might want to read this sitting down.

In 2004, the ratio of average CEO pay to the average pay of a production (i.e., non-management) worker was 431-to-1, up from 301-to-1 in 2003, according to "Executive Excess," an annual report released Tuesday by the liberal research groups United for a Fair Economy and the Institute for Policy Studies.

That's not the highest ever. In 2001, the ratio of CEO-to-worker pay hit a peak of 525-to-1.

Still, it's quite a leap year over year, and it ranks on the high end historically. In 1990, for instance, CEOs made about 107 times more than the average worker, while in 1982, the average CEO made only 42 times more.

<snip>

The report also compares the growth in average CEO pay – which was $11.8 million in 2004 – to the growth in the minimum wage. Had the minimum wage risen as fast as CEO compensation since 1990, the researchers calculated, it would now be $23.03 an hour instead of just $5.15. And the average production worker would be making $110,126 a year instead of $27,460.

<snip>

The authors of "Executive Excess" highlight what they consider to be war profiteering on the part of several CEOs of defense contractors. One such CEO, David H. Brooks of bulletproof-vest maker DHB Industries, raked in $70 million for 2004. By contrast, in 2001, he made $525,000.

...more...

All the while, the average worker "treads water" - while inflation and high energy costs eat holes in their pockets.

:nuke:

but for a bit of history:

http://www.huppi.com/kangaroo/Timeline.htm

excerpt:

By the end of the decade, the bottom 80 percent of all income-earners will be removed from the tax rolls completely. Taxes on the rich will fall throughout the decade.

By 1929, the richest 1 percent will own 40 percent of the nation's wealth. The bottom 93 percent will have experienced a 4 percent drop in real disposable per-capita income between 1923 and 1929.

The middle class comprises only 15 to 20 percent of all Americans.

Individual worker productivity rises an astonishing 43 percent from 1919 to 1929. But the rewards are being funneled to the top: the number of people reporting half-million dollar incomes grows from 156 to 1,489 between 1920 and 1929, a phenomenal rise compared to other decades. But that is still less than 1 percent of all income-earners.

...more...

[AnneD]

40. I am in healthcare....

and the number of those without insurance is more than that!!!!!!!!

[UpInArms]

49. in the fine print -

from the Marketwatch article I just posted:

The gains in health insurance were due to increased coverage by Medicaid, the federal-state health insurance for poor people. Coverage by employment-based insurance fell to 59.8% from 60.4%.

[UpInArms]

56. More Info: US poverty rate rises; ranks of poor whites expand

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-30T144845Z_01_N30277975_RTRIDST_0_ECONOMY-POVERTY-UPDATE-1.XML

WASHINGTON, Aug 30 (Reuters) - The U.S. poverty rate rose in 2004, driven by an increase in the number of poor non-Hispanic whites, while the median income for Americans as as a whole remained stable, the government said on Tuesday.

The percentage of the U.S. population living in poverty rose to 12.7 percent from 12.5 percent in 2003, as 1.1 million more people slipped into poverty last year, the Census Bureau said in its annual poverty report.

The ranks of the poor rose to 37.0 million, up from 35.9 million the previous year, the report said.

The poverty rate rose for only one group -- non-Hispanic whites -- which had an 8.6 percent poverty rate for 2004 compared with 8.2 percent in 2003. The poverty rate declined for Asians and remained unchanged for blacks and Hispanics, the report showed.

The real median household income in 2004 totaled $44,389, flat from 2003 and marking the second consecutive year in which income showed no change.

...more...

Hasn't our country just flourished under the stewardship of criminals?

[UpInArms]

34. Scammer Unlimited: Wells Fargo units revamp subprime lending practice

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.4138233565-840996202&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Wells Fargo & Co. (WFC) said Tuesday its Wells Fargo Financial and Wells Fargo Home Mortgage units adopted new policies for nonprime real estate-secured lending. The changes include: flat maximum limit for origination fees on retail nonprime loans, simplified caps on prepayment charges, eliminating mandatory arbitration clauses on real-estate loans at Wells Fargo Financial, revising principles for responsible nonprime real-estate lending. Wells Fargo said nonprime lending customers will be charged origination fees limited to a maximum $1,500. Customers will have the choice to "buy down" the interest rate of their home loan by paying discount points. Shares of Wells Fargo were down 12 cents at $59.16.

[justabob]

37. Maybe one of you can answer a question?

I understand that oil/gas/fuel is obviously where consumers feel the most pain, but I am curious about all the other petroleum/hydrocarbon based products... medicines, cosmetics, plastics, asphalt and other building materials etc. How much has the recent surge in crude prices effected all those other seemingly unrelated products? Maybe they aren't so important(?) but I have been curious about this for a while and really have no idea how to find out. Thanks in advance for any info.


ps. thanks for maintaining this thread every day. I've been reading it fairly regularly for months... good work!

on edit... Sorry to be so ignorant on the subject, but I have another question.... are the non fuel products dependant on the same refineries as gas/motor oil etc

[ret5hd]

39. i know this doesn't directly answer your question, but...

there was an article recently in Harpers magazine that said that for every calorie of food that you eat, a calorie of oil was burned to produce that food...that includes transportation, packaging, fuel for farm equipment, oil based insecticides, etc etc etc...in essence, we are eating oil.

[justabob]

45. very relevant, thank you

We ARE eating oil. Really what I am getting at is this oil crunch is really going to pound us, but not solely because of gas prices even though that gets the most attention(rightly). There are so many products from the same source that no one ever mentions that I think we kinda lose sight, or get tunnel vision. Its not just alternative fuels we need but what happens to all those other things? Are there alternatives to those? I just want to try and find out how 'all those other things' are doing relative to oil/gas.

[UpInArms]

43. here's what a barrel of oil makes

What a barrel of crude oil makes.
Product Gallons per Barrel
Gasoline 19.4
Distillate Fuel Oil 9.7
(Includes both home heating oil and diesel fuel)
Kerosene-Type Jet Fuel 4.3
Coke 2.0
Residual Fuel Oil 1.9
(Heavy oils used as fuels in industry,marine
transportation,and for electric power generation)
Liquefied Refinery Gases 1.9
Still Gas 1.8
Asphalt and Road Oil 1.4
Petrochemical Feedstocks 1.1
Lubricants 0.5
Kerosene 0.2
Other 0.4

Figures are based on average yields for U.S.refineries in 2000.One
barrel contains 42 gallons of crude oil.The total volume of products
made is 2.6 gallons greater than the original 42 gallons of crude oil.
This represents “processing gain.”



If it weren ’t for petrochemicals,you could
kiss lipstick goodbye.Oil does a lot more
than simply provide fuel for our cars and trucks,
keep our homes and offices comfortable,and
power our industries.Oil is a key ingredient in
making thousands of products that make our
lives easier – and in many cases – help us live
better and longer lives.From lipstick to aspirin
and diapers to roller blades,petrochemicals
play a vital part.Here are just a few examples.

Antihistamines
Antiseptics
Artificial Hearts
Aspirin
Audiocassettes
Baby Strollers
Balloons
Bandages
Blenders
Cameras
Candles
CD Players
Clothing
Compact Discs
Computers
Containers
Crayons
Credit Cards
Dentures
Deodorant
Diapers
Digital Clocks
Dinnerware
DVDs
Dyes
Eyeglass Frames
Fertilizers
Food Preservatives
Food Storage Bags
Footballs
Foul Weather Gear
Furniture
Garbage Bags
Glue
Golf Balls
Hair Dryers
Hang Gliders
Heart Valve Replacements
House Paint
Infant Seats
Ink
Insecticides
Life Jackets
Lipstick
Luggage
Medical Equipment
Nylon Rope
Pacemakers
Pantyhose
Patio Screens
Perfumes
Photographic Film
Photographs
Piano Keys
Roller Blades
Roofing
Safety Glass
Shampoo
Shaving Cream
Shower Curtains
Slippers
Soft Contact Lenses
Sunglasses
Surfboards
Surgical Equipment
Syringes
Telephones
Tents
Toothpaste
Toys
Umbrellas
Vitamin Capsules
Paint
Infant Seats
Ink
Insecticides
Life Jackets
Lipstick
Luggage
Medical Equipment
Nylon Rope
Pacemakers
Pantyhose


Source: http://www.api.org

I don't know if this answers your question - because I am not certain at which point of the refining process the chemicals are extracted. Perhaps someone with more knowledge of that would be willing to give us the details?

[justabob]

47. Thank you

That's very helpful. I had forgotten many of the things on that list. I appreciate you taking the time to post it.

[UpInArms]

50. glad to have you join in here at the SMW, justabob!

Just let us know and if one of us can find it, we'll post it :hi:

[justabob]

52. Thanks

I am really pretty hopeless as far as this stuff goes and you regulars have been enormously helpful getting through all the hype and bs that spews forth everyday, all day.

:toast:

[UpInArms]

41. 11:03 reality sets in?

Dow 10,380.89 -82.16 (-0.79%)
Nasdaq 2,123.75 -13.90 (-0.65%)
S&P 500 1,204.46 -7.82 (-0.65%)
10-Yr Bond 4.131 -0.42 (-1.01%)

NYSE Volume 534,689,000
Nasdaq Volume 460,679,000

10:30AM: The Conference Board's report on Consumer Confidence in the month of August checked in better than expected at 105.6 (consensus 101.0) and was accented by increases in both the current conditions (to 123.6 from 119.3 and expectations components (to 93.7 from 93.2) from the prior month... The market, however, showed little enthusiasm for the data as it is presumed consumer attitudes will soon change given the relentless rise in energy prices...

Presently, the indices are at, or near, their worst levels of the morning, pulled down by a virtual absence of sector leadership, with the exception of energy (+1.29%), and the sight of another sizable uptick in energy futures: Crude +$2.20 at $69.40/bbl; Natural Gas +$0.491 to $11.63 per million BTUs; and Unleaded Gas +$0.1177 to $2.085 per gallon... NYSE Adv/Dec 1063/1710, Nasdaq Adv/Dec 1023/1555

[hatrack]

42. Gee, did the phrase "Potential $30-billion catastrophe" finally sink in?

:eyes:

[UpInArms]

44. must have finally entered the gray matter - 11:20 update w/blather

Dow 10,364.65 -98.40 (-0.94%)
Nasdaq 2,120.12 -17.53 (-0.82%)
S&P 500 1,202.76 -9.52 (-0.79%)
10-Yr Bond 4.137 -0.36 (-0.86%)

NYSE Volume 611,867,000
Nasdaq Volume 518,906,000

11:00AM: As damage reports roll in detailing Hurricane Katrina's destructive force, the equity market continues to slide... No doubt that participants are fixated on the action in the energy pits as crude futures are now pushing $70/bbl again... Barring an official announcement that oil will be released from the Strategic Petroleum Reserve, traders are anticipating further increases... The spike in energy prices has underpinned the energy sector (+1.51%) today and it has also aided the Treasury market, which is viewing rising oil prices as a retardant for economic growth...

The 10-yr note is up 8 ticks, pushing its yield down to 4.13% from the 4.42% level seen Aug. 8... The drop in the benchmark rate is encouraging renewed buying interest in the homebuilding stocks, which comprise one of the few pockets of relative strengh in today's weak market... NYSE Adv/Dec 1093/1775, Nasdaq Adv/Dec 980/1731

Yep - that $30 billion dollar price tag comes pretty steeply with crude pushing $70 per bbl.

[UpInArms]

57. 11:38 EST bleeding badly - no way to spin

Dow 10,369.03 -94.02 (-0.90%)
Nasdaq 2,120.38 -17.27 (-0.81%)
S&P 500 1,204.23 -8.05 (-0.66%)
10-Yr Bond 4.124 -0.49 (-1.17%)

NYSE Volume 694,795,000
Nasdaq Volume 582,857,000

11:30AM: Major indices have hit new session lows in the past half hour as they continue to run in the opposite direction of oil prices, which were pushing $71/bbl a short time ago (currently +$3.05 at $70.25)... It's a similar site across the energy complex as futures prices continue to push higher on supply concerns... Not surprisingly, the hefty gains in energy futures are leading to hefty uptick in the CRB Index, which is up 2.0%...

The equity fallout is benefitting the Treasury market, as the 10-yr note is now up 12 ticks, leaving its yield at 4.12% - or just 12 basis points higher than the yield on the 2-yr note... The ongoing curve flattening is flattening a number of bank stocks today, which are among the main drivers behind the financial sector's 1.0% decline... NYSE Adv/Dec 1111/1840, Nasdaq Adv/Dec 960/1829

[Roland99]

58. "Look out below!!"

[UpInArms]

61. 12:04 tourniquet application in progress

Dow 10,376.91 -86.14 (-0.82%)
Nasdaq 2,122.81 -14.84 (-0.69%)
S&P 500 1,204.18 -8.10 (-0.67%)
10-Yr Bond 4.131 -0.42 (-1.01%)

NYSE Volume 808,235,000
Nasdaq Volume 665,649,000

12:00PM: Hurricane Katrina has moved on, but the energy market hasn't as damage reports are provoking heightened supply concerns that are being reflected in sizable gains across the energy complex... While those gains have underpinned the energy sector (+1.89%), they have undercut the broader market, as misgivings about the pace of spending and economic growth have been behind the selling activity... Perhaps the best indication speaking to the slowdown concerns was the market's virtual dismissal of a stronger than expected Consumer Confidence report for August...

Economists were expecting a reading of 101.0, but were greeted with an actual level of 105.6 that compared favorably to the prior month's reading of 103.6... Furthermore, both the current conditions and expectations components of the report were up from the prior month... That seemed to matter little to today's participants, though, as the major indices moved to new session lows in the wake of the data on the assumption consumer attitudes will soon change given the relentless rise in energy prices... The slowdown consideration is also benefitting the Treasury market at both the front- and back-ends of the Treasury curve...

The benchmark 10-yr note is up 11 ticks, with its yield at 4.12% - a mere 12 basis points above the 2-yr note yield... The narrowing spread, or flattening of the curve, is weighing on the financial sector (-1.08%), which is today's most influential laggard... It has plenty of company, though, as the industrials (-1.39%), consumer discretionary (-1.38%), consumer staples (-1.14%), and materials (-1.06%) sectors are all down more than 1.0%.

Don't you know that folks are confident? :eyes:

[UpInArms]

66. 12:22 EST back up to 10,400

Dow 10,401.43 -61.62 (-0.59%)
Nasdaq 2,125.84 -11.81 (-0.55%)
S&P 500 1,206.46 -5.82 (-0.48%)
10-Yr Bond 4.130 -0.43 (-1.03%)

NYSE Volume 877,539,000
Nasdaq Volume 711,948,000

[54anickel]

70. Side o' blather

12:30PM : The major indices have moved off their worst levels of the day, and coincidentally, oil prices (+2.20 at $69.40) have moved off their best levels of the day... To be sure, there isn't a perfect inverse relationship between the stock market and oil prices, but as oil prices dance around yet another "psychologically important" level (this time $70), the tie that binds tends to get a bit stronger... In any event, there is no denying participants are fixated on the action in the energy pits today...
Gains in that arena are giving a boost to ExxonMobil (XOM 58.74, +0.32), which is one of only three Dow components in positive territory at the moment... The other two are Hewlett-Packard (HPQ 26.90, +0.21) and General Motors (GM 34.17, +0.13)... NYSE Adv/Dec 1116/1914, Nasdaq Adv/Dec 967/1892

[UpInArms]

59. From the Visionless: GM updating analysts on new lineup

:rofl:

I don't think you can sell these dolts a clue.

http://www.marketwatch.com/news/story.asp?guid=%7BA8C83160%2D885A%2D446B%2D9838%2D9CA00374449F%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) - General Motors showcased its new car and truck lineup during the first half of its analyst meeting in Detroit on Tuesday, and Wall Street will stayed tuned to what GM has to say about its union and Delphi discussions in the afternoon portion of the presentation.

<snip>

"We expect the new SUVs to buck a secular sales downtrend for the large SUV segment for a little over one year (production likely up over 25% in 2006 and but less than 5% in 2007) before resuming a fade with the rest of their segment peers," he said.

...more...

[UpInArms]

65. Cheerleaders Come Out: US factory sector set to grow through 2006-report

http://today.reuters.com/investing/financeArticle.aspx?type=economicNews&storyID=2005-08-30T154656Z_01_N30280155_RTRIDST_0_ECONOMY-MANUFACTURING.XML

WASHINGTON, Aug 30 (Reuters) - The U.S. factory sector is poised to grow through 2006, although the pace of its expansion will likely cool, a manufacturing group said on Tuesday.

The Manufacturers Alliance/MAPI said 20 of 27 industries enjoyed stronger new orders or production in the second quarter than they had a year ago, with the computer industry leading the way with 33 percent year-over-year growth.

The group said the broad-based gains reflected "consistent strength," even though the number of industries exhibiting stronger growth than a year ago was down slightly from 22 in the first quarter.

<snip>

"High energy costs directly affect manufacturing costs and they indirectly reduce the demand for manufactured goods by consumers and business as discretionary funds are redirected towards paying for energy," he said in a statement.

Still, the group, which offered forecasts for 24 of the 27 industries, said the outlook through next year was mostly upbeat.

...more...

ummmm.....right.... :eyes:

[AnneD]

71. I ain't no holler back girl.

eom.

[UpInArms]

74. LOL!

[UpInArms]

85. S&P cuts Unisys debt ratings to 'BB-' from 'BB+'

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.5753385764-841003110&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Standard & Poor's Ratings Services on Tuesday lowered its corporate credit and senior unsecured debt ratings on Unisys Corp. (UIS) to BB- from BB+. The agency also removed them from creditwatch, where they were placed on Aug. 16 with negative implications. "The downgrade reflects deteriorating credit protection measures, coupled with uncertainties regarding the company's ability to improve profitability and cash flows over the near term in light of challenging market conditions and problematic contracts," S&P credit analyst Philip Schrank said in a statement.

[54anickel]

69. Greenspan and the Bubble (Krugman)

http://www.nytimes.com/2005/08/29/opinion/29krugman.html

Most of what Alan Greenspan said at last week's conference in his honor made very good sense. But his words of wisdom come too late. He's like a man who suggests leaving the barn door ajar, and then - after the horse is gone - delivers a lecture on the importance of keeping your animals properly locked up.

Regular readers know that I have never forgiven the Federal Reserve chairman for his role in creating today's budget deficit. In 2001 Mr. Greenspan, a stern fiscal taskmaster during the Clinton years, gave decisive support to the Bush administration's irresponsible tax cuts, urging Congress to reduce the federal government's revenue so that it wouldn't pay off its debt too quickly.

Since then, federal debt has soared. But as far as I can tell, Mr. Greenspan has never admitted that he gave Congress bad advice. He has, however, gone back to lecturing us about the evils of deficits.

Now, it seems, he's playing a similar game with regard to the housing bubble.

At the conference, Mr. Greenspan didn't say in plain English that house prices are way out of line. But he never says things in plain English.

more...

[UpInArms]

72. Good on Krugman

He's one of the very few that looks at that Has-Been Partisan Hack and calls him on his treachery.

[AnneD]

94. I agree....

with both your assessments of Greenspan. He had done much to steer us in a generally good direction under Clinton (the economy and Clinton's budget plan priorities helped too). But once Bush got in and the economy tanked-Greenspin did so many wrong things. I am not an economist but I am a fiscally conservative. What he hawked as cures and dangers was unconscionable. He took a bad economy and drove it even further into the ground. Even Snow warned of the dangers and then was 'cast out'.

[54anickel]

73. As Bear Funds Show, a Short Seller's Life Is Hard

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_currier&sid=am1bsi4tN1Kg

Aug. 30 (Bloomberg) -- You've got to give credit to David Tice's Prudent Bear Fund.

The $379 million fund, which aims to prosper when the stock market doesn't via such means as short-selling and owning gold shares, frequently turns in better results than the stock indexes might lead us to expect.

Look at its record for the past year through the end of last week. While the Standard & Poor's 500 Index has posted a positive return of 11 percent, the Prudent Bear Fund has declined a mere 4.8 percent, according to Bloomberg data.

Over the last three years, Prudent Bear has declined just 5.8 percent a year while the S&P 500 has returned 10.3 percent per annum. In the last five years, the fund boasts a 12.9 percent annualized gain, compared with the S&P 500's 2.8 percent per-year loss.

In the upside-down world of bear market funds, this stands as market-beating performance. However much the S&P 500 rises or falls, the aggregate results of those who bet against it would figure to be about the same in the opposite direction. Maybe worse than that, once costs are factored in. Tice has done a lot better.

more...

[54anickel]

75. Chinese Checkerboard of Effects (Willie)

http://www.321gold.com/editorials/willie/willie082605.html

Mark July 21, 2005 down as an historic day in the financial world. Few people among the public will fully appreciate its importance. In fact, even among the investment community, the date might not stand tall in significance aside other key dates. The 1987 Black Monday, the 1997 Asian Meltdown, the 1998 Russian Default, the 2000 Tech Stock Bust, these dates will stand out. On the July 21-st date, the Chinese announced a delink from the USDollar, began to enforce a new tie from their yuan to a basket of currencys, and finally permitted more liberal hedging practices for both banks and commercial entities. In my Hat Trick Letter August issue, subscribers were shown no less than 20 effects of the currency regime change exercised by China. Some are significant and somewhat immediate. Some are clear but behind the scenes in nature. Some have the capability of shaking the entire world financial system. In my analysis, the Chinese yuan revaluation decision manages to poke a hole with widening cracks in the grand USDollar world currency dam. The hidden damage might be better seen with the US$-based trading system for commodities. Such is the underwater pressure building forces behind the dam structure.

In the last few months, each continent has had a major event. Europe voted NO on centralized power backed by a constitution. That put a sudden halt to the expansion of the European Union, and retained member nation sovereignty. The euro currency was shaken. Asia saw the end of the fixed Chinese yuan currency regime. The United States and Canada blocked acquisition attempts by China for Noranda and Unocal, with Maytag collateral damage. China might have learned that Anglo-Saxon mergers and acquisitions are peachy keen, but not Asian. See British Petroleum and their merger with Amoco. The Chinese will move in earnest on foreign reserves diversification, even as Asia follows. These are tectonic shifts which have collectively forced the cracks wider in the USDollar world currency system.

Let's touch on two key effects among the 20. My effort during a North Carolina beach vacation was to read about the Chinese currency decision, note a couple overlooked analytic points, and produce a listed litany of effects in leisure on a spiral notebook while observing waves and other walking scenery. A couple valued friends actually assessed the decision to be trivial, since the 2.1% amount is so small. Well, so is a crack in a dam small, whereas its existence is the important fact. The spread of the crack is unavoidable, inescapable, certain to cause unfortunate problems. The stress from colossal world imbalance exerts continual pressure.

#5) China will be indirectly granted a price discount in commodity imports (oil, gas, copper, iron, aluminum, zinc, lumber, cement, grains, soybeans). Look for commodity demand to be buffeted by with each yuan upgrade.

snip>

#20) China might gradually undermine the entire petro-dollar system, a financial superstructure designed to facilitate oil purchase in USDollars. Look for warning signals from OPEC, which might someday announce oil priced in terms of a basket of currencys also.

more...

[UpInArms]

76. Silver Lining: Wal-Mart closed 123 stores due to Katrina

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-08-30T131633Z_01_N30270301_RTRIDST_0_BUSINESS-RETAIL-WALMART-KATRINA-DC.XML

CHICAGO (Reuters) - Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) said on Tuesday that 123 of its U.S. stores, or 3.3 percent, were closed due to Hurricane Katrina, many due to power outages.

The stores include both Wal-Mart and Sam's Club stores, a spokeswoman said, adding that two distribution centers were also closed.

It was too early to say what financial impact the shutdowns would have, the spokeswoman, Sharon Weber, said.

...short blurb...

[nolabels]

95. Maybe later they will close four, five and six due to lack of interest

http://www.walmartsucks.org/

[UpInArms]

77. S&P cuts Janus Capital's rating, outlook stable (Fund Outflows)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-30T163852Z_01_WNA7173_RTRIDST_0_FINANCIAL-JANUS-SP-URGENT.XML

NEW YORK, Aug 30 (Reuters) - Standard & Poor's on Tuesday cut its counterparty credit rating on Janus Capital Group Inc. (JNS.N: Quote, Profile, Research), citing concerns over outflows from its funds and declining earnings.

Denver-based Janus last month reported lower second-quarter profits as the firm continued to suffer outflows and lackluster performance in its flagship funds.

S&P cut Janus Capital's counterparty credit rating to "BBB," the second-lowest investment-grade rating, from "BBB-plus." The outlook was revised to stable from negative.

...short blurb...

[54anickel]

78. Oil hits new record near $71 (new pain threshold set to $80)

http://biz.yahoo.com/rb/050830/markets_oil.html?.v=6

snip>

OPEC's biggest crude oil producer Saudi Arabia moved swiftly to pledge an extra 1.5 million barrels per day (bpd) of oil to the market if needed and the United States announced it would dip into its strategic reserves if necessary.

"Seventy dollars a barrel is a level that has invoked a political reaction," said Mark Keenan, a fund manager at MPC Commodities Fund.

But the market paid little heed.

snip>

GULF OF MEXICO OUTPUT AT STANDSTILL

More than 90 percent of the Gulf of Mexico's oil output and over 80 percent of natural gas production was shut as a precaution, the U.S. minerals management service said.

That closed down 1.4 million bpd of crude, roughly seven percent of U.S. domestic demand and about the same amount as the estimated spare capacity held by OPEC.

"It's not out of the question that $80 could be the next barrier if there's long-term damage," said Gerard Burg, minerals and energy economist at National Australia Bank.

The last time oil prices, adjusted for inflation, averaged $80 a barrel was 1980, after the Iranian revolution.

more...

:eyes: What are they gonna do when they loose that "adjusted for inflation" talking point?

Gotta run, just had to check in and see what we going on for the day. I'll have to check back for the close later in the day. :hi:

[UpInArms]

80. I do believe it has crossed my "pain threshold" a while back

have a great day 54anickel - "see" you later :hi:

[UpInArms]

79. Security breach at J.P. Morgan (wealthy clients compromised)

http://www.marketwatch.com/news/story.asp?guid=%7BC794C2B2%2DB783%2D4104%2DBC8E%2D4DBE14AA8E56%7D&siteid=mktw

NEW YORK (MarketWatch) - J.P. Morgan Private Bank has informed its wealthy clients that a computer containing their personal information was stolen from its Dallas offices this month.

The bank said it's working with local authorities on the case.

In a letter from Managing Director Elaine Agather, dated Aug. 25, clients were told that the computer contained personal and financial information about them, which may also be linked to other accounts they hold in joint names. The computer was stolen Aug. 8, the bank said.

"Although the computer was password-protected, it is possible that your information could be accessed and disclosed," the letter said.

...more...

Oopsie!

[UpInArms]

81. The rich don't shop retail

(I think I'm going to :puke: )

http://www.marketwatch.com/news/story.asp?guid=%7B7CFC19A9%2D654C%2D4499%2D97BD%2D9C9DE0FCF409%7D&siteid=mktw

SANTA MONICA, Calif. (MarketWatch) -- Despite retail brokerages' attempts to gain favor with the wealthy by providing money management, trading, checking, credit, mortgage, estate, insurance, tax, accounting and an even more exhaustive list of proprietary product services, the rich aren't buying.

The Luxury Institute, a New York-based research firm that tracks the habits of the wealthiest 10% of the country, says just like any proper lady who lunches, the rich don't like to shop retail.

Boutique outfits, such as trust companies and private banks, gain the most favor with those who have a net worth of $5 million or more, according to the institute.

"More wealthy people like doing business with specialists," says Milton Pedraza, The Luxury Institute's chief executive. "They like the uniqueness, the exclusivity and the prestige."

<snip>

"They are spending millions of dollars on advertising campaigns, when referrals are the critical factor for wealthy people," Pedraza says.

It seems a shame to be wasting all that money, because brokerages are cutting off more and more their relationships with average investors in favor of wealthier ones. Most brokerage houses now call their brokers "wealth managers." (A recent Financial Planning Association online member message board discussion asks, "Has 'wealth manager' become too me-too?")

Other firms toss investors with assets of less than $100,000 online. Or, as with Merrill Lynch, they are directed to a call center. In other words, the average retail investor isn't worth the personal attention that comes from a face-to-face meeting.

...more...

[UpInArms]

82. 1:06 EST numbers and dreck

Dow 10,393.00 -70.05 (-0.67%)
Nasdaq 2,124.25 -13.40 (-0.63%)
S&P 500 1,205.71 -6.57 (-0.54%)
10-Yr Bond 4.139 -0.34 (-0.81%)

NYSE Volume 1,002,797,000
Nasdaq Volume 807,084,000

1:00PM: Indices remain mired in negative territory, but have pared their losses during the New York lunch hour... As has been the case all day, energy (+1.22%) remains the lone economic sector sporting a gain... The other nine sectors, meanwhile, are attempting to claw their way back from larger losses seen earlier... At the moment, consumer discretionary (-1.16%) is the only sector down more than 1.0%...

Retailers are the biggest drag, as concerns about consumer spending in the face of rising energy prices and lost sales from store closures/destructions in Louisiana, Mississippi, and Alabama are feeding the selling interest... Leading laggards include home improvement retail (-2.29%), general merchandise (-2.23%), department stores (-2.43%), and specialty stores (-2.08%)... NYSE Adv/Dec 1184/1900, Nasdaq Adv/Dec 1014/1890

[UpInArms]

87. 2:05 EST numbers and blahter

Dow 10,385.51 -77.54 (-0.74%)
Nasdaq 2,124.13 -13.52 (-0.63%)
S&P 500 1,204.96 -7.32 (-0.60%)
10-Yr Bond 4.138 -0.35 (-0.84%)

NYSE Volume 1,191,930,000
Nasdaq Volume 946,625,000

2:00PM: The stock market has held its own in the afternoon session as this morning's relentless rise in crude prices has given way to some profit taking after the October contract failed to eclipse yesterday's high of $70.80 with much conviction... Crude futures, though, remain comfortably above the unchnaged mark (+$2.30 at $69.50) in today's trading and have acted as an overhang on the consumer discretionary sector (-1.15%), which remains the day's biggest laggard...

While energy trading will continue to serve as a catalyst for today's market, it could get pushed aside for a bit as the primary driver in the event the FOMC Minutes from the Aug. 9 meeting, which will be released momentarily, offer some surprises with respect to the Fed's thinking on the pace of its tightening activity... NYSE Adv/Dec 1277/1870, Nasdaq Adv/Dec 1126/1800

1:30PM: Buying efforts have tapered off which, in turn, has interrupted the afternoon recovery effort... Crude futures, which got knocked back in noticeable fashion after failing to clear yesterday's high ($70.80) in meaningful fashion, have started to inch higher again toward the $70 level (the high today was $70.85)... On the sector front, pockets of relative strength are founb in the health care (-0.33%) and utilities (-0.35%) sectors, which are known for their defensive characteristics...

With the jump in energy prices, the Dow Jones Transportation Average is taking a hit; currently, it is down 1.10%... NYSE Adv/Dec 1194/1928, Nasdaq Adv/Dec 1006/1922

[UpInArms]

90. Oil, Fed remarks on inflation weigh

http://www.marketwatch.com/news/story.asp?guid=%7BBEA34A98%2D008B%2D4D5F%2DA4EC%2D5591044B0A37%7D&siteid=mktw

NEW YORK (MarketWatch) - U.S. stock losses intensified in afternoon trading Tuesday after Federal Reserve policy makers expressed concern about inflationary pressures in the economy, further undermining a market already knocked back by rising oil prices.

The Dow Jones Industrial Average ($INDU: news, chart, profile) was last down 93 points at 10,369, just off an earlier low of 10,359.32.

The Nasdaq Composite Index ($COMPQ: news, chart, profile) fell 15 points to 2,122 while the S&P 500 Index ($SPX: news, chart, profile) dropped 9 points to 1,203.

In a summary of the Federal Open Market Committee meeting on August 9, some FOMC members wondered why financial markets were not as concerned as they were by the risks of inflation.

...more...

at 2:24 EST

Dow 10,381.62 -81.43 (-0.78%)
Nasdaq 2,124.24 -13.41 (-0.63%)
S&P 500 1,204.89 -7.39 (-0.61%)
10-Yr Bond 4.122 -0.51 (-1.22%)

NYSE Volume 1,265,804,000
Nasdaq Volume 1,002,232,000

[UpInArms]

83. Top Security Trust executives plead guilty

http://today.reuters.com/investing/financeArticle.aspx?type=governmentFilingsNews&storyID=URI:urn:newsml:reuters.com:20050830:MTFH90777_2005-08-30_16-50-21_N30160145:1

NEW YORK, Aug 30 (Reuters) - New York Attorney General Eliot Spitzer on Tuesday said two former top executives of Security Trust Co. have pleaded guilty to criminal charges in his investigation of illegal mutual fund trading.

Grant Seeger, the former chief executive of Arizona-based Security Trust, pleaded guilty in New York County Supreme Court to second-degree grand larceny and to a violation of the Martin Act.

Former Security Trust President William Kenyon pleaded guilty to a felony violation of the Martin Act.

<snip>

Seeger in his plea admitted developing a procedure for hedge fund clients Canary Capital and Samaritan Asset Management to disguise their market timing and late trading activities from various mutual fund families by attaching, or "piggy-backing," their trades to those of STC's retirement plan clients.

...more...

[UpInArms]

84. Coast Guard says lower Mississippi ports remain shut

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.5795496528-841003199&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The U.S. Coast Guard said Tuesday that all ports on the Mississippi River from Baton Rouge, La. to the Gulf of Mexico remain shut to ship traffic following Hurricane Katrina. Ports along the Intercoastal Waterway from New Orleans to Panama City, Fla., also remain shut a day after the powerful storm ripped through the region. A Coast Guard spokesman said search and rescue efforts remain their top priority and that at this point it is "impossible" to say when the waterways can be assessed and eventually reopened. The vast dock and storage facilities along the lower Mississippi handle more cargo by volume than any other port in the United States.

1:44pm 08/30/05 COAST GUARD: PRIORITY REMAINS RESCUE OPERATIONS

1:45pm 08/30/05 COAST GUARD: IMPOSSIBLE TO SAY WHEN PORTS CAN REOPEN

[UpInArms]

97. just before the close

Dow 10,415.05 -48.00 (-0.46%)
Nasdaq 2,129.71 -7.94 (-0.37%)
S&P 500 1,208.34 -3.94 (-0.33%)
10-Yr Bond 4.090 -0.83 (-1.99%)

NYSE Volume 1,801,609,000
Nasdaq Volume 1,406,927,000

3:00PM: Buyers have backed off earlier efforts in the wake of the FOMC Minutes and the indices have moved back to their worst levels of the day... By and large, there just haven't been any convincing bullish catalysts in the headlines to sustain Monday's advance... Oil prices are back near $70, sector leadership is lacking, and the FOMC Minutes didn't do anything to alter the understanding that the Fed is going to keep raising rates...

As sizable as today's losses are, keep in mind that, when yesterday's gains are included, the Dow, Nasdaq and S&P are still close to flat for the week in the face of crude prices that have risen nearly 6.0%... NYSE Adv/Dec 1180/2029, Nasdaq Adv/Dec 1072/1894

Isn't it wonderful how resilient the markets have become? :crazy:

[UpInArms]

98. Energy Dept gets loan request for oil reserve - White House

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38594.6505279977-841005995&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- The Energy Department is reviewing a formal request for a loan from the Strategic Petroleum Reserve, said White House spokesman Scott McClellan on Tuesday. A loan request is the first step toward a possible release of oil from the nation's emergency stockpile. "They're reviewing that right now, and they are prepared to review any additional requests that come in. That is something that remains under review by the Department of Energy at this point," McClellan told reporters at a briefing. On Monday, the White House said it was willing to tap the oil reserve if necessary because of the damage from Hurricane Katrina.

[UpInArms]

99. closing numbers and yada

Dow 10,412.82 -50.23 (-0.48%)
Nasdaq 2,129.76 -7.89 (-0.37%)
S&P 500 1,208.41 -3.87 (-0.32%)
10-Yr Bond 4.090 -0.83 (-1.99%)

NYSE Volume 1,879,226,000
Nasdaq Volume 1,436,866,000

The market was mired in negative territory all day as preliminary damage assessments from Hurricane Katrina caused a storm of different proportions in the energy pits that hung like a dark cloud over the stock market... Specifically, futures prices across the energy complex shot higher on supply concerns stemming from the closure/flooding of production and refining facilities along the Gulf Coast... Unlike Monday, the spike in prices wasn't dismissed as images of destruction from Louisiana to Florida that played out over and over on TV monitors made it readily apparent that it will take some time before shipping operations and refining activity return to normal... At one point, crude futures were up as much as 5.4% to a record $70.85/bbl while unleaded gas futures and natural gas futures were up as much as 12.3% and 7.7%, respectively... When the trading session ended, crude prices settled at $69.81, unleaded gas stood at $2.1997/gallon, and natural gas prices were $11.659 per million BTUs... Strikingly, the indices were near their lows for the day when futures trading concluded at 2:30 ET, but they managed to cut their losses considerably in the final half hour when it was speculated President Bush would likely open the Strategic Petroleum Reserve to mitigate the supply disruption... As one might expect, the surge in energy prices put a bid in the energy stocks, which comprised the only winning sector today... Energy rose 1.46%, but the other nine sectors suffered losses ranging from 0.08% (utilities) to 0.94% (consumer discretionary)... The latter sector trailed the action in understandable fashion as retailers remained under pressure amid concerns about energy prices cutting into consumer spending and the lost sales opportunities in the hurricane-ridden states... A better than expected consumer confidence report (105.6 vs consensus of 101.0) even failed to provide relief for the retailers as it was assumed consumers' attitudes will soon change given the relentless rise in energy prices... On a related note, the minutes from the Aug. 9 FOMC meeting didn't help the market's cause as it was revealed the Fed said energy prices would probably feed core inflation and that the price of home appreciation is expected to slow...

The Fed did acknowledge, however, that inflation expectations are still quite well anchored - a salient point that gave the Treasury market an added boost...

The 10-yr note gained 18 ticks and its yield dropped to 4.10%, leaving the spread between it and the 2-yr note at 16 basis points...

The flattening action held back the financial sector (-0.63%), but altogether, there was no leadership to speak of outside the energy sector...

The exception to the latter statement could be found in the closing stage of trading as the technology sector (-0.11%) experienced a late burst of buying interest ahead of the mid-quarter update from chip equipment maker Novellus Systems (NVLS) after the close...

That update, along with the action in the energy pits, the revision to Q2 GDP and the Chicago Purchasing Manager's Index will form the basis for trading decisions on Wednesday... ..

Nasdaq 100 -0.4%. ..S&P Midcap 400 -0.4%. ..Russell 2000 -0.2%. ..NYSE Adv/Dec 1433/1822. ..NASDAQ Adv/Dec 1173/1828.