STOCK MARKET WATCH, Wednesday 31 August

[ozymandius]

Wednesday August 31, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 143 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 254 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 318 DAYS
DAYS SINCE ENRON COLLAPSE = 1375
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 30, 2005

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... 4.09% -0.08 (-1.99%)
Gold future... 435.50 -5.90 (-1.35%)

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 Ike Iossif: HUI - XAU

charts, charts and more charts...

CONCLUSION

All the indicators have formed patterns that three out of five times turn out to have a bullish resolution. In fact, the very same patterns were observed last year between late July and early August as the HUI and the XAU embarked on a 20% rally; and they were also observed during the 2003 rally. Our expectation is that the XAU will pull back to the 92-91 zone, which represents a triple support point, and if it holds, we will see a reversal to the upside that will carry the XAU to its upper 50 week volatility band around 110-112.

If support doesn't hold and the XAU declines below 90, then we will wait to see where it finds support and then we will re-evaluate.

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

[ozymandius]

2. Stocks Set to Open Down Before GDP Data

NEW YORK - U.S. stock futures are trading lower Wednesday ahead of the revised second-quarter gross domestic product report, expected to show the annual growth rate unchanged from the advance report.

Dow Jones futures were recently down 10 points, while Nasdaq futures were off 3 points and S&P futures were down 1.1 point.

In Japan, the Nikkei 225 Stock Average fell 0.3 percent to 12413.60, as weaker-than-expected industrial production figures prompted investors to sell domestic-demand-sensative stocks

more

[ozymandius]

3. Oil Prices Surge Above $70 a Barrel

18 minutes ago

SINGAPORE - Reports of extensive damage and photos of fallen oil platforms in the Gulf of Mexico sent crude oil prices surging above $70 Wednesday as the extent of damage from Hurricane Katrina become clearer.

Royal Dutch Shell PLC's mammoth Mars platform became the latest — and potentially the largest — Katrina casualty, as aerial photos showed significant damage to the top of the facility that normally churns out 220,000 barrels of crude and 220 million cubic feet of natural gas a day.

The U.S. Coast Guard said at least seven rigs are adrift, while eight refineries have shut down. Companies continued to send planes and helicopters to get an aerial view of their assets and began escorting some previously evacuated workers back to offshore facilities.

Light, sweet crude for October delivery rose as high as $70.63 a barrel on the New York Mercantile Exchange midafternoon in electronic trading in Singapore, before slipping back to $70.43, up 62 cents from Tuesday.

more

[ozymandius]

6. Oil Rises, Gasoline Reaches Record as Katrina Forces Rationing

Aug. 31 (Bloomberg) -- Crude oil rose above $70 a barrel and gasoline reached a record for a third day after Hurricane Katrina paralyzed U.S. oil output, refining and imports along the Gulf of Mexico coast, forcing wholesalers to ration fuel.

Oil and natural gas platforms were shut for a fourth day, sending natural gas prices to a record as well. Eight refineries in Louisiana and Mississippi, accounting for more than 10 percent of U.S. refining capacity, were closed by the approach of Katrina, the most powerful storm to strike the Gulf coast since 1969.

``You have an oil market that is quite tight in the products side, particularly in the U.S.,'' said Robert Mabro, president of the U.K.-based Oxford Institute for Energy Studies. ``Then you have a hurricane which closed eight refineries. The market looks at the situation and realizes supplies are even tighter. Prices will only fall if demand declines.''

-cut-

The U.S. Energy Department will publish its weekly report on petroleum inventories at 10:30 a.m. Washington time.

more

[UpInArms]

40. Crude futures slip, but natural-gas, gasoline prices rise

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.4260833102-841029934&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Unleaded gas futures struck a new record Wednesday, edging closer to $3 a gallon as expectations for a ninth-weekly decline in U.S. gasoline supplies outweighed news that the White House will release some oil from the Strategic Petroleum Reserve. September unleaded gas was up 6.3% at $2.63 a gallon. October unleaded, which becomes the lead-month after the session ends, was up 3.7% at $2.28. At the same time, October natural gas climbed 3.1% to $12.02 per million British thermal units, while October crude fell 32 cents to $69.49 a barrel.

[UpInArms]

53. Oct Crude at $70.05 bbl

10:55am 08/31/05 OCT CRUDE CLIMBS TO $70.05/BRL, UP 24C, OR 0.3%

[UpInArms]

60. Unleaded nears $3; natgas tops $12

http://www.marketwatch.com/news/story.asp?guid=%7B2D71769A%2D4A48%2D4693%2D88C1%2DC2D3C5D09CF6%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Unleaded gas futures edged closer to $3 a gallon Wednesday and natural-gas prices topped $12 per million British thermal units, boosted by a ninth-weekly decline in U.S. gasoline supplies and storm-related production outages in the Gulf of Mexico.

At the same time, crude futures climbed above $70 a barrel as an unexpected decline in inventories outweighed news that the White House will release some oil from the Strategic Petroleum Reserve.

The market realizes that the Hurricane Katrina's devastation at the Gulf Coast hasn't been factored into the nation's petroleum supply report -- at least not until next week's data.

"Hurricane Katrina's impact will only begin to impact the data next Wednesday," said Jason Schenker, an economist at Wachovia Corp.

And "some of the data is subject to revisions as some companies were prevented from reporting actual inventory data" because of Katrina's approach last week, said Thorsten Fischer, an economist at Economy.com.

September unleaded gasoline traded at a record $2.80 a gallon and was last up 21.55 cents, or 8.7%, at $2.69. Prices for the contract jumped over 20% on Tuesday.

...more...

[UpInArms]

63. Oil indexes hit all-time highs

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.4933143403-841033634&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- The indexes tracking the oil and gas industry rallied to record highs Wednesday with investors betting on sustained high energy prices in the wake of Hurricane Katrina. The Amex Oil Index ($XOI) rose 2.7% to 1,011.42 points, the Amex Natural Gas Index ($XNG) added 1.9% to 393.10 points, and the Philadelphia Oil Service Index ($OSX) gained 3.2% to 171.29 points.

I'm certain that the oilmen in the WH are doing the happy dance.

:grr:

[ozymandius]

4. more on the Iranian oil bourse

Iran's oil gambit - and potential affront to the US

WASHINGTON – Is the biggest threat Iran poses to the United States really its nuclear ambitions - or is it petropolitics?

Last month the Iranian government quietly reaffirmed plans to create by next year a euro-denominated exchange in oil, natural gas, and other petroleum products. If successful, such an exchange could start to lap at the walls of the two existing oil exchanges - London's International Petroleum Exchange (IPE) and the New York Mercantile Exchange (NYMEX) - both owned by American companies.

If the billions of dollars in oil sales ever got going in euros, experts say, that could dry up the demand for dollars that the heavily indebted US economy depends on, and it could mean big trouble for the US economy. It's enough to make the Great Satan-loathing visionaries behind the Iranian regime salivate. The chances of success, however, seem quite remote - at least in the short term.

-cut-

Indeed, the exchange proposal is not the only evidence of Tehran's geopolitical plottings. Experts note that Iran has approved huge energy deals with both India and China - deals that not only cement Iran as an energy power, but also could create powerful friends for Tehran's ambitions. Iran signed an agreement this year to provide India with liquefied natural gas over a 25-year period and signed a similar agreement last year to supply China with natural gas over a 30-year period. Both countries are in a deal to invest in and develop Iran's Yadaravan oil field - the kind of investment that US oil companies are prohibited from making because of US sanctions - while Iran presses to build a major pipeline through Pakistan to India. "Iran is definitely looking East, rather than West," says Mr. Seznec, "and that will matter."

more...

http://www.csmonitor.com/2005/0830/p03s01-wome.html

[ozymandius]

5. Fed in August saw U.S. inflation risks rising

WASHINGTON (Reuters) - Most policy-makers at the U.S.
Federal Reserve in August worried that inflation risks had "ticked up" recently, with some fretting that price increases were already at the upper end of their comfort zone.

"While recent monthly readings indicated that core inflation had been subdued, a number of participants noted that underlying core inflation appeared to be running at a pace around the upper end of the range they viewed as consistent with price stability," according to minutes from the central bank's Federal Open Market Committee meeting on August 9, which were issued on Tuesday.

"Participants commented that an increase in inflation from recent rates could have especially adverse effects on longer-run economic performance," the Fed said.

-cut-

Markets viewed the Fed comments through the prism of the recent rise in crude oil futures following Hurricane Katrina, and focused on concerns about the impact of high energy prices. Instead of taking Fed concerns about inflation to signal further interest rate rises, some observers say the storm, which disrupted energy production in the U.S. Gulf, may force the Fed to rethink its policy.

more

[UpInArms]

7. daily dollar watch

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

Last trade 88.45 Change +0.10 (+0.11%)

Dollar Advance Stalls As Majors Regroup

EUR/USD – Euro bulls remained at a stand still as the price action stalled around the 1.2200 figure as greenback longs continued to exert the pressure on the pair, which was met with the same force from the single currency supporters. As an impasse continues, the first side to make a move will most likely to dominate the short-term action, which will most likely dominated by the euro longs as the pair head toward the 1.2300, however the prospective euro bulls should be aware that a failure to by the single currency to break above the greenback defenses at 1.2347, an August 29 daily spike high will most likely signal dollar strength and the retreat of the euro bulls toward their first line of defense around the 1.2163, marked by the 50-day SMA. 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.

<snip>

USD/JPY – Japanese Yen bulls continued to retreat under the weight of the dollar assault with the pair funding active yen offers around the 111.50 level. As the dollar longs fail to punch though the 111.50 which is being defended by the 23.6 Fib of the 104.18-113.74 USD rally, a failure to break to the upside will most likely see the pair temporarily reverse its course and aim toward the psychologically important 110.00 handle. A move toward the 110.00 will most likely see the greenback bulls try to mount a defense around the 110.08 line, marked by the 38.2 Fib of the 104.18-113.74 USD rally. Indicators are mixed with momentum indicator above the zero line with MACD sloping upward toward the zero line, while both oscillators remain in a neutral territory, thus giving either side enough room to maneuver.

...more...

Dollar Rebound Limited as Katrina’s Wrath Proves Worst than Expected

http://www.dailyfx.com/index.php?option=com_content&task=view&id=3144&Itemid=39

US Dollar – Even though the dollar is relatively unchanged since yesterday, we are already hearing more reliable word on the actual damage of Hurricane Katrina. Yesterday we had warned that the optimism in the dollar was premature, perhaps that was related to expectations for a climb in the Conference Board consumer confidence survey, which we saw today, but in the overall scheme of things, Katrina’s wrath was underestimated. Katrina ended up shutting down 92% of the normal production in the Gulf and many oil companies such as Chevron have said that they will not know the full storm damage until later this week. Even though the Hurricane is over, the worst may not be over for the US dollar. Royal Dutch Shell has already announced that their platform has suffered damage. Valero, the nation's largest independent refinery indicated that it would take up to 2 weeks to restart its St. Charles refinery in Louisiana. With reports of up to 80% of New Orleans under water, it could take days if not weeks for oil producers and refineries to report final damage. Even if the refineries sustained little overall damage, the ancillary support system such as roads and people are still in such a distressed state that in order for operations to return to normal, people need to be able to get back to their homes first. The local governments’ priorities are certainly to get their cities back to order before allowing the million plus people who have evacuated out of Louisiana to return to their homes, let alone work. This delay in reopening the refineries at a time when capacity is already stretched thin could send gasoline prices soaring towards $80 a barrel. Each additional day that it takes to resume normal oil production, the more strain the disaster causes on oil prices across the nation. We have breached $70 a barrel once again and it wasn’t the gap higher and quick reversal that the we saw yesterday, but a more sustained grind higher. It will not be long before gasoline prices across the nation top $3 a gallon with the more expensive cities charging upwards of $4 a gallon. Even though consumer confidence rebounded in today’s report from the Conference Board, we doubt that the sentiment of the average consumer at this point is really all that more optimistic than last month. The UMich survey is probably the more accurate indicator this time around. Not only will the continual rise in gasoline prices take a big bite out of future consumer spending, but insurers will be paying as much as $26 billion in compensation and that does not even include the damages done to the oil drilling platforms. There is no doubt that this will cause Q3 GDP growth to be much weaker than expected. Meanwhile the Federal Reserve minutes didn’t give us much new information. The Fed was hawkish on inflation pressures, which is far from surprising given the rise in oil prices. They also cautioned about a possible slowdown in house price appreciation and the potential drag of oil prices on consumer spending. Overall, it leaves them at the same place that they were at before – which is more rate hikes at a measured pace.

...more...

[UpInArms]

11. Dollar pares gains after Q2 GDP revised downward

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.3605330787-841026870&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- The dollar pared its gains against major currencies in early trade Wednesday, after U.S. second-quarter GDP was revised to a 3.3% annualized rate from 3.4% previously. The revision was lower than the forecast of economists polled by MarketWatch, who were expecting the reading to be unchanged from prior estimates. The dollar was last quoted at 111.49 yen, up 0.04%, but off its early high of 111.77. The euro was down 0.02% at $1.2211.

[UpInArms]

19. a peek at the buck

Last trade 88.32 Change -0.03 (-0.03%)

Settle 88.35 Settle Time 23:36

Open 88.32 Previous Close 88.35

High 88.56 Low 88.25

Last tick: 2005-08-31 08:43:14 ET
30-min delayed quote.

[UpInArms]

41. Dollar slides after weak regional U.S. economic report

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B1DBCBF8B-A6BE-4DF0-BB07-A72575B7ACA1%7D&

CHICAGO (MarketWatch) -- The dollar fell to session lows against the euro and the yen after a regional U.S. business barometer showed contraction for the first time in 28 months. The report, covering the Chicago region, is often assessed for a broader read on U.S. manufacturing health. The dollar was quoted at 111.07 yen in recent trading, down from 111.51 yen just ahead of the report. The euro firmed to $1.2253 vs. $1.2214. The dollar is down 0.3% against both the euro and the yen from where it stood late Tuesday.

[UpInArms]

45. a peek at the buck

Last trade 88.07 Change -0.28 (-0.32%)

Settle 88.35 Settle Time 23:36

Open 88.32 Previous Close 88.35

High 88.56 Low 88.07

Last tick: 2005-08-31 10:05:19 ET
30-min delayed quote.

[UpInArms]

77. another peek at the falling dollar

Last trade 87.59 Change -0.76 (-0.86%)

Settle 88.35 Settle Time 23:36

Open 88.32 Previous Close 88.35

High 88.56 Low 87.43

Last tick: 2005-08-31 13:53:24 ET
30-min delayed quote.

[UpInArms]

8. Today's Reports:

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

Aug 31	8:30 AM	Chain Deflator-Prel.	Q2	-	2.4%	2.4%	2.4%	-	
Aug 31	8:30 AM	GDP-Prel.		Q2	-	3.4%	3.4%	3.4%	-	
Aug 31	10:00 AM	Chicago PMI	Aug	-	65.0	61.0	63.5	-

[UpInArms]

9. U.S. Second-quarter GDP revised down to 3.3%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?guid={812E21DE-C26B-4557-86BF-0D91F670FE5D}&siteid=mktw

WASHINGTON (MarketWatch) - U.S. economic growth in the second quarter was revised slightly lower to a 3.3% annualized rate from 3.4% previously, the Commerce Department said. The U.S. economy slowed slightly from the 3.8% growth in the first quarter. The economy has grown 3.6% in the past year. The revision was due to an upward revision in imports and a downward revision to consumer spending, offset by an upward revision to inventory investment. Core inflation was revised lower to 1.6% annualized from 1.8% in the previous estimate. Corporate profits from current production accelerated, rising 6.1% or $79.2 billion, to $1.37 trillion annualized. Before-tax profits are up 17.7% year-over-year.

8:30am 08/31/05 U.S. 2Q CONSUMER SPENDING REVISED TO 3.0% FROM 3.3%

8:30am 08/31/05 U.S. 2Q PROFITS COME FROM HIGHER PRICES, LOWER COSTS

8:30am 08/31/05 U.S. 2Q FINAL SALES RISE 5.4%, BEST SINCE 3Q 2003

8:30am 08/31/05 U.S. 2Q GDP REVISIONS DUE TO IMPORTS, CONSUMER SPENDING

8:30am 08/31/05 U.S. 2Q CORPORATE PROFITS RISE 6.1%, UP 17.7% Y-O-Y

8:30am 08/31/05 U.S. 2Q CORE INFLATION REVISED TO 1.6% FROM 1.8%

8:30am 08/31/05 U.S. 2Q GDP LOWER THAN 3.4% EXPECTED

8:30am 08/31/05 U.S. 2Q GDP REVISED TO 3.3% VS. 3.4%

[UpInArms]

34. U.S. 3Q GDP forecast revised lower to 3.8% (from 4.6%): Action Economics

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.4122283912-841029115&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Action Economics lowered its forecast for third-quarter U.S. gross domestic product to 3.8% from 4.6% earlier following Wednesday's revisions to second-quarter GDP and ongoing reports of damage from Hurricane Katrina. The revisions to the second-quarter revealed a slightly lower trajectory for the third quarter, with a smaller bounce in inventory accumulation, said Mike Englund, chief economist. Projected 3.8% growth for the third quarter "is still solid, but not as robust as appeared likely before the most recent spike in energy prices, and the advent of Katrina."

[UpInArms]

35. ECONOMIC CONTRACTION: Chicago PMI shows contraction in August

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.4197025347-841029566&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- A monthly measure of business activity in and around Chicago contracted in August. The Chicago PMI was reported at 49.2% The average of a survey of economists by MarketWatch looked for only modest moderation in the latest report, to 61.3% from July's 63.5%. Employment growth slowed to 51.7% after rebounding to 56.1 in July. Prices paid rose to 62.9% from 61.3%, while orders plunged to 46.5% from 69.6%. Readings above 50% indicate a majority of businesses reported steady or stronger conditions; readings below show more feel business had slowed. The Chicago index had topped this level for 27 straight months.

10:02am 08/31/05 AUGUST CHICAGO PMI AT 49.2 VS. 61.3% EXPECTED

[UpInArms]

37. US Midwest Aug business activity in surprise slump

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-31T140925Z_01_N31496119_RTRIDST_0_ECONOMY-MIDWEST-URGENT.XML

CHICAGO, Aug 31 (Reuters) - Business activity in the U.S. Midwest slumped in August, contracting for the first time in more than two years as new orders dried up, a report showed on Wednesday.

The National Association of Purchasing Management-Chicago business barometer fell to 49.2 from 63.5 in July. Economists had forecast the index at 61.5. A reading below 50 indicates contraction.

The employment component of the index fell to 51.7 from 56.1 in July. Prices paid rose to 62.9 from 61.3 and new orders slumped to 46.5 from from 69.6.

Ruh-Roh - looks like that "con"fidence number is about to evaporate.

[UpInArms]

46. DOE Petroleum Inventory Report:

10:32am 08/31/05 U.S. CRUDE STKS DOWN 1.5 MLN BRLS LAST WK: ENERGY DEPT

10:32am 08/31/05 U.S. UNLEADED GAS STKS DOWN 500,000 BRLS: ENERGY DEPT

10:32am 08/31/05 U.S. DISTILLATE STKS UP 2.7 MLN BRLS: ENERGY DEPT

[UpInArms]

49. Energy Dept reports ninth fall in gasoline stocks

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.4450477894-841030745&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The Energy Department said motor gasoline inventories fell for a ninth-straight week, down 500,000 barrels to total 194.4 million. The fall was a bit less than expected, however. The data cover the week ended August 26 so it doesn't reflect the bulk of Hurricane Katrina's impact. Crude supplies fell by 1.5 million barrels to 321.4 million, defying most expectations for a climb. Distillate stocks were up 2.7 million barrels at 135.2 million barrels. September unleaded gasoline is up 8.3% at $2.68 a gallon. October crude is down 31 cents at $69.50 a barrel. September heating oil is down 0.5%at $2.065 a gallon.

[UpInArms]

54. API confirms drop in gasoline stocks

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.4550219792-841031180&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute said motor gasoline inventories fell by 1.7 million barrels for the week ended August 26. The Energy Department reported a 500,000-barrel decline. Crude inventories rose 1 million barrels, contrary to the government's reported 1.5 million-barrel fall. Distillate stocks were up 4.4 million barrels, the API said.

[UpInArms]

10. Treasury prices rise, yields fall after GDP revised lower

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.3613966088-841026888&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Treasury prices ticked higher, sending yields a bit lower, early Wednesday after the Commerce Department announced that U.S. economic growth in the second quarter was revised slightly lower to a 3.3% annualized rate from 3.4% previously. The yield on the benchmark 10-year Treasury note fell to 4.077% from $4.10 late Tuesday. The revision was due to an upward revision in imports and a downward revision to consumer spending, offset by an upward revision to inventory investment.

[UpInArms]

27. Check Kiting Continues: Fed adds reserves through overnight system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-31T134107Z_01_N31348303_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Aug 31 (Reuters) - The Federal Reserve said on Wednesday it added temporary reserves to the banking system through overnight system repurchase agreements.

Fed funds last traded at 3.625 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]

12. Energy Secy Bodman: U.S. to tap Strategic Pete Reserve, CNBC

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid={7F4C94A5-3193-4AA7-9B12-1D1B76E7911C}&dist=bnb

NEW YORK (MarketWatch) -- Energy Secretary Samuel Bodman said the U.S. plans to tap into the Strategic Petroleum Reserve during an interview broadcast Wednesday on CNBC. Bodman said an announcement about the specifics of the decision, which follows the devastation of Hurricane Katrina in the Gulf Coast, would come later in the day.

[UpInArms]

13. Ariz AG says seized $101 mln in (Bayou) hedge fund probe

http://today.reuters.com/investing/financeArticle.aspx?type=fundsNews2&storyID=URI:urn:newsml:reuters.com:20050831:MTFH98060_2005-08-31_00-11-20_N30311556:1

NEW YORK, Aug 30 (Reuters) - The Arizona Attorney General's office on Tuesday said it had seized $101 million that may belong to Bayou Management LLC, the Connecticut money management firm under investigation for possible fraud.

The money was seized on May 19 at a Wachovia Corp. (WB.N: Quote, Profile, Research) bank branch in Phoenix, two months before it emerged that Bayou was being investigated by state and federal law enforcement officials, according to Arizona Attorney General Terry Goddard's spokeswoman, Andrea Esquer.

Connecticut Attorney General Richard Blumenthal last week said that Stamford, Connecticut-based Bayou is being probed for failing to account for some $440 million that it listed as having under management following investor complaints.

The fund told investors in recent weeks that it was closing but investors have yet to see any money, law enforcement officials have said.

The Arizona disclosure is the latest twist in a widening mystery to roil the secretive hedge fund world. Separately, Blumenthal said today the state is forming a task force to look into reforming the hedge fund industry, a move likely to face industry opposition in a state with more hedge funds than any other.

...more...

:wtf:

[UpInArms]

33. Bayou Fund, Founder Face Lawsuits Over $4.5 Mln in Unpaid Debts

http://www.bloomberg.com/apps/news?pid=10000103&sid=aIIh6K4TFWc8&refer=us

Aug. 31 (Bloomberg) -- Bayou Management LLC, the Connecticut-based hedge-fund company under investigation for fraud, and founder Samuel Israel III face two lawsuits claiming at least $4.5 million in unpaid debts.

South Cherry Street LLC, a Denver-based investor, claims in an Aug. 26 complaint that Bayou didn't return its $1.5 million in the Bayou Accredited Fund LLC as promised in letters in July and August. Separately, Steven Starker claims Israel failed to repay a $3 million promissory note that came due July 15. Israel had borrowed the money a month earlier, according to the suit Starker filed Aug. 19.

``Defendant has failed and has acknowledged his inability to pay the obligations due under the note,'' according to Starker's complaint. His suit and South Cherry Street's were filed in state court in New York.

Israel, 46, wrote investors July 27 that he was shutting the four funds run by his Stamford-based company and returning their money. Investors have yet to be reimbursed, triggering probes by the Federal Bureau of Investigation, the U.S. Securities and Exchange Commission and the Connecticut Department of Banking into what happened to the $440 million Bayou had under management.

Bayou is the biggest hedge fund to come under scrutiny for missing funds since 2000, when money manager Michael Berger was accused of hiding $400 million of losses over four years. Hedge funds -- lightly regulated investment portfolios designed for wealthy investors and institutions -- will have to register with the SEC beginning in February, opening them to random audits for the first time. There are about 8,000 hedge funds with about $1 trillion under management.

...more...

[UpInArms]

14. Tiffany quarterly profit rises 53 percent

(and Zale Corp went down 41% - guess who's got the $$$$)

http://today.reuters.com/investing/financeArticle.aspx?type=marketsNews&storyID=2005-08-31T115430Z_01_N31342407_RTRIDST_0_RETAIL-TIFFANY-EARNS-UPDATE-1.XML

NEW YORK, Aug 31 (Reuters) - Tiffany & Co Inc. (TIF.N: Quote, Profile, Research) on Wednesday said quarterly profit rose a better-than-expected 53 percent on strong sales growth in both its U.S. and international stores.

Earnings for the fiscal second quarter ended July 31 rose to $50.6 million, or 35 cents per share, from $33.1 million, or 22 cents per share, in the year-ago period.

Wall Street analysts on average had forecast earnings of 24 cents per share, according to Reuters Estimates.

Sales rose to $526.7 million from $476.6 million, the company said in a statement. Sales at the company's U.S. sales rose 8 percent and international retail sales rose 12 percent during the quarter.

...more...

[hatrack]

18. Oh, thank GOD! That poverty report yesterday had me worried for a sec!

But now I know that everything's nifty, swell and A-OK in new, perfect America! :puke:

[UpInArms]

26. Let Them Eat Cake As They Drown: Tiffany's earns top Wall St. estimate

http://www.marketwatch.com/news/story.asp?guid=%7B69EDE3FC%2D3F07%2D4BE2%2DA18E%2D04CD7D583683%7D&siteid=mktw

NEW YORK (MarketWatch) - Strong double-digit sales growth helped Tiffany & Co. deliver a better than expected profit performance in the second quarter.

The New York jewelry and luxury gifts retailer also on Wednesday lifted its earnings outlook for the full year, citing the "encouraging" quarterly results and expectations for total fiscal 2005 sales growth of between 8% and 10%.

The stock (TIF: news, chart, profile) leapt 10.6% to $36.73 in morning action. Volume of 817,500 was already approaching the issue's daily average of 844,000.

For the three months ended July 30, Tiffany reported earnings of $50.6 million, or 35 cents a share, up from a year-ago profit of $33.1 million, or 22 cents a share. The company attributed a boost of 5 cents a share in its latest earnings to a lower effective tax rate than last year.

Sales rose 11% in the latest three months to $526.7 million from $476.6 million in the same period a year earlier. Same-store sales rose 6% in the U.S. and 1% in Japan. On a world-wide, constant exchange rate basis, comparable sales increased 4% in the period.

...more...

[UpInArms]

15. Mortgage applications fall despite rates

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-08-31T112323Z_01_DIT139625_RTRIDST_0_BUSINESS-ECONOMY-MORTGAGES-DC.XML

NEW YORK (Reuters) - Applications for U.S. home mortgages fell for the second consecutive week despite a steady decline in fixed mortgage interest rates in August, an industry group's figures showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications -- which includes both purchase and refinancing loans -- fell 4.5 percent to 722.5 in the week ended August 26. In the previous week, the index fell 0.7 percent.

The MBA's seasonally adjusted purchase index dropped 3.6 percent to 470.6, adding to the previous week's 2.2 percent loss.

The MBA's seasonally adjusted refinancing index fell 5.4 percent to 2,187.8, more than erasing the previous week's 1.2 percent gain.

...more...

[UpInArms]

16. Scammers Unlimited: Wells Fargo changes subprime mortgage practices

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-31T123151Z_01_N31349345_RTRIDST_0_FINANCIAL-WELLSFARGO-LENDING.XML

NEW YORK, Aug 31 (Reuters) - Wells Fargo & Co. (WFC.N: Quote, Profile, Research), long criticized for its lending practices to less creditworthy borrowers, has adopted safeguards that it said will ensure fairness for borrowers who do not qualify for the best rates.

The No. 2 U.S. mortgage lender this week changed its "subprime" mortgage lending practices "as part of our continuing efforts to respond to our customers' evolving needs," said Mark Oman, senior executive vice president for the bank's home and consumer finance group, in a statement.

Wells Fargo has long been a target of fair lending advocates such as the Association of Community Organizations for Reform Now, or ACORN, which has conducted protests and filed lawsuits. Mortgage lending is also a subject of a closely watched federal lawsuit involving dozens of state regulators, including New York Attorney General Eliot Spitzer.

Among Wells Fargo's changes is a new $1,500 maximum on origination fees for loans the bank makes directly. Prepayment penalties will be limited to the first three years of loans, and not exceed 3 percent of the loan amount in the first year, 2 percent in the second year, and 1 percent in the third year.

The bank also eliminated mandatory arbitration for disputes, and said it will make "certain" that all customers who qualify for lower-cost "prime" loans will get them.

...more...

[UpInArms]

17. US stock futures give up gains as GDP disappoints

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-31T125844Z_01_N31354351_RTRIDST_0_MARKETS-STOCKS-UPDATE-2.XML

NEW YORK, Aug 31 (Reuters) - U.S. stock futures gave up earlier gains as news of slower-than-expected economic growth offset a retreat in crude oil prices after the Bush administration said it would tap the Strategic Petroleum Reserve.

A release of oil from the reserve to a Gulf Coast refiner could begin as early as Thursday to offset oil production losses caused by Hurricane Katrina, the Department of Energy said. The storm forced operators to close more than a tenth of U.S. refining capacity and a quarter of its oil output.

Crude oil fell 47 cents to $69.34 on the news, after trading as high as $70.65 earlier in the day.

Higher oil prices are generally seen as negative for stocks because they increase business costs and eat into consumers' discretionary budgets.

"It certainly looks like it's the news about the releasing of the reserves that helped, but it's probably going to be a volatile day," said Rich Parker, head of trading at Stamford Group in New York. "This hasn't been done very often. It takes a natural disaster to happen."

...more...

[UpInArms]

20. I wonder when the costs for cleanup of environmental damage will

be noticed?

9:15am 08/31/05

DUPONT: FIRST CHEMICAL ANILINE PLANT AT PASCAGOULA AFFECTED

9:15am 08/31/05

DUPONT: MOBILE, ALA., 2 LA., PLANTS NOT AS SEVERELY AFFECTED

9:14am 08/31/05

DUPONT: TITANIUM DIOXIDE PLANT AT DELISLE AFFECTED

9:13am 08/31/05

DUPONT UNCLEAR ON TIMING OF RESTART AT MISS. FACILITIES

9:12am 08/31/05

DUPONT REPORTS EXTENSIVE FLOODING AT 2 FACILITIES IN MISS.

9:13am 08/31/05

DUPONT DECLARES 'FORCE MAJEURE" FOR BOTH MISS. FACILITIES

and then there was this pic:


An oil refinery is submerged in water in Codin, Alabama, August 30, 2005. Oil prices scrambled back towards their fresh high above $70 on Wednesday as dealers feared a sharp squeeze on fuel supplies after Hurricane Katrina shut down vital U.S. Gulf Coast refineries and offshore production platforms. REUTERS/Marc Serota

[UpInArms]

22. DuPont declares force majeure for two plants

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-31T131731Z_01_WEN8239_RTRIDST_0_CHEMICALS-DUPONT-URGENT.XML

NEW YORK, Aug 31 (Reuters) - DuPont Co. (DD.N: Quote, Profile, Research), the No. 2 U.S. chemical maker, on Wednesday declared force majeure for a titanium dioxide plant and an aniline plant in Mississippi due to extensive flooding caused by Hurricane Katrina.

DuPont said in a statement it was not clear when the plants would restart based on its preliminary assessment of damages.

By declaring force majeure, an exporter does not have to bear financial responsibility for delays in shipments in breach of contract agreements with importers.

...more...

[ozymandius]

21. pre-open blather

9:15AM: S&P futures vs fair value: +1.2. Nasdaq futures vs fair value: +3.0. Futures trading has held steady, still indicating a flattish start for the stock market. Treasuries, meanwhile, have gotten a modest bid from the slight downward revision to Q2 GDP; the 10-year note is up six ticks and yielding 4.067%.

8:56AM: S&P futures vs fair value: -0.4. Nasdaq futures vs fair value: +2.0. Futures trade has lost steam following the slight downward revision to Q2 GDP and is signalling a relatively flat start for the market... In some coporate developments of note, Novellus (NVLS) provided a somewhat disappointing Q3 mid-quarter update after the close that is expected to act as a restraint on the semiconductor group; meanwhile, Tiffany & Co. (TIF) provided some welcome good news for the retail group, having posted better than expected Q2 results and raising its FY06 EPS guidance

[UpInArms]

24. 9:39 EST and all is well in the Land of LaLa

Dow 10,420.06 +7.24 (+0.07%)
Nasdaq 2,133.58 +3.82 (+0.18%)
S&P 500 1,209.30 +0.89 (+0.07%)
10-Yr Bond 4.073 -0.17 (-0.42%)

NYSE Volume 75,939,000
Nasdaq Volume 79,371,000

[ozymandius]

25. The Land of LaLa.

:rofl:

That's great! I can see the markets going gangbusters while unemployment hovers at 25% with this trading crowd.

[ozymandius]

23. markets are open for bidness

tepid start to the day - 9:38
Dow 10,416.56 +3.74 (+0.04%)
Nasdaq 2,132.56 +2.80 (+0.13%)
S&P 500 1,209.14 +0.73 (+0.06%)
10-Yr Bond 40.70 -0.20 (-0.49%)
NYSE Volume 69,532,000
Nasdaq Volume 74,482,000

[UpInArms]

29. blah blah blah

9:45AM: As futures trading had suggested, the equity market has opened on a relatively lackluster note. Traders remain fixated upon Hurricane Katrina's aftermath, specifically on the price of crude (-0.46 at $69.35 /bbl), which is trading down this morning on news the Dept. of Energy will tap the Strategic Petroleum Reserve to mitigate supply disruptions...

How dare those traitors look at Katrina's aftermath!

[ozymandius]

32. Who will shield their virgin eyes?

If they see this destruction, then they might not be in a buying mood. Even the oil processing industry might siphon profits to pay for repairs. And that just would not do!

[ozymandius]

28. Gas at $3.50 a gallon could trigger recession

Assessing Katrina's long-term impact
Gas at $3.50 a gallon could trigger recession

-cut-

"There is a real sense of foreboding about the economy now that Katrina has struck with full force," said Bernard Baumohl, executive director of Economic Outlook Group. "The Louisiana and Mississippi Gulf region represent the soft underbelly of the U.S. energy industry."

Katrina took aim at a vulnerable chokepoint for U.S. energy markets. The region not only produces a large percentage of domestic oil and gas, it is also a transportation hub for both imported and domestic production.

-cut-

Oil, gas production

Even in the best-case scenario, production of crude petroleum, natural gas and refined gasoline are likely to be severely stunted for at least several weeks as Gulf production and refineries go back on line.

-cut-

The impact of Katrina may be felt not just in the devastated Gulf region, but throughout the nation as energy prices soar. There's no insurance policy or government grant to offset the cost of $3.50 a gallon gasoline.

more

[RawMaterials]

59. Experts: $4 a gallon gas coming soon

"There's no question gas will hit $4 a gallon," Ben Brockwell, director of pricing at the Oil Price Information Service, said. "The question is how high will it go and how long will it last?"

OPIS tracks wholesale and retail oil prices and provides pricing information for AAA's daily reports on fuel prices.

Brockwell said with gasoline prices now exceeding $3 a gallon before even reaching the wholesale level, it "doesn't take a genius" to expect retail prices to hit $4 a gallon soon.

"Consumers haven't seen the worst of it yet," Brockwell said.





http://money.cnn.com/2005/08/31/news/gas_prices/index.htm

The recession was coming anyway now the public has a "event" to remember and blame instead of the poor fiscal planing by the current administration.

[UpInArms]

61. Idiotsonofanutjob will tell us that the economy will rebound

just around the corner - as we park our cars and walk to work.

[UpInArms]

67. 9/11 and 8/30 can take the blame for all the fiscal irresponsibilities

of this maladministration.

How easy is that?

Never do the real job of government and let catastrophies occur because that way people don't see how badly you are actually fleecing them.

:grr:

More record gasoline prices on tap
Some consumers may see $4 gas: analyst

http://www.marketwatch.com/news/story.asp?guid=%7B3BCA7212%2DFEEF%2D4852%2D965A%2DF65726B043EC%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Storm disruptions to output in the Gulf of Mexico and nine weeks of falling gasoline supplies joined forces to pull regular unleaded gas prices to a fresh record -- and they're still no where near their peak, analysts said Wednesday.

There's a "surfeit of worry over gasoline supplies to much of the U.S. and gasoline prices have acted accordingly," said John Kilduff, an analyst at Fimat USA.

At the retail level, the average price for regular unleaded stood at an all time high of $2.619 a gallon Wednesday, according to AAA's Daily Fuel Gauge Report. That's a full 40.8% above the $1.860 of a year ago. See the data.

And unleaded gasoline for September delivery climbed as high as $2.80 a gallon, a level that market has never reached before. See Futures Movers.

"This is shaping up to be a 1970s-style energy price shock," said Kilduff, in a note to clients.

And "$4 gasoline will likely be visited upon consumers in many areas," he said.

Hurricane Katrina, which hit the Gulf -- home to about 25% of U.S. oil and natural-gas production -- earlier this week, has halted the movements of 95.2% of the region's daily oil output, according to a Tuesday report from the Minerals Management Service. For comparison, Hurricane Ivan from late last year forced the daily shut in of only 83% at the height of it's impact.

...more...

[ozymandius]

30. numbers going nowhere

9:52
Dow 10,416.25 +3.43 (+0.03%)
Nasdaq 2,134.93 +5.17 (+0.24%)
S&P 500 1,210.72 +2.31 (+0.19%)
10-Yr Bond 40.76 -0.14 (-0.34%)
NYSE Volume 170,082,000
Nasdaq Volume 153,647,000

9:45AM: As futures trading had suggested, the equity market has opened on a relatively lackluster note. Traders remain fixated upon Hurricane Katrina's aftermath, specifically on the price of crude (-0.46 at $69.35 /bbl), which is trading down this morning on news the Dept. of Energy will tap the Strategic Petroleum Reserve to mitigate supply disruptions...

[UpInArms]

31. American Poverty Rate Rises, Swelling Government Health Plans

http://www.bloomberg.com/apps/news?pid=10000103&sid=aUPJSmThrXtc&refer=us

Aug. 30 (Bloomberg) -- The percentage of Americans living in poverty rose to a six-year high in 2004, driving more people into the government health-insurance plan for the poor, the U.S. Census Bureau reported today.

The 1.1 million increase in the ranks of the U.S. poor brought the total to 37 million, or one in eight. At the same time, enrollment in Medicaid, the U.S. health-insurance program for the indigent, rose 5.6 percent to 37.5 million, or almost 13 percent of the population. Government health plans including Medicaid cover more than one out of four Americans.

The increased reliance on Medicaid puts additional pressure on the budgets of state and federal governments, which jointly fund the program, said Diane Rowland, executive director of the nonprofit Kaiser Commission on Medicaid and the Uninsured. Congress this year plans to cut as much as $10 billion in Medicaid spending as states seek ways to trim enrollment.

``Medicaid is under the gun,'' said Rowland, whose private Washington-based group studies health-care trends, in an interview today. ``If we have more poverty, we have more people straining the safety net.''

...more...

IIRC, didn't the idiotsonofanutjob criticize NK for "starving its people"?

[UpInArms]

36. 10:10 EST Bottom Falls Out

Dow 10,368.57 -44.25 (-0.42%)
Nasdaq 2,124.08 -5.68 (-0.27%)
S&P 500 1,206.88 -1.53 (-0.13%)
10-Yr Bond 4.074 -0.16 (-0.39%)

NYSE Volume 298,256,000
Nasdaq Volume 265,034,000

10:00AM: Buyers and sellers alike not showing much conviction, leaving the major indices hovering near the flat line. Mixed corporate news has added to the sentiment, with Novellus (NVLS 26.91, -0.55) delivering a disappointing Q3 mid-quarter update after the close, in which it cut its EPS outlook to 0.20-$0.21 vs. the $0.22 consensus, lowered its revenue forcast to $320 mln and narrowed bookings guidance to $285-$290 mln. Tiffany & Co. (TIF 36.66, +3.35), on the other hand, delivered earnings $0.06 ahead of expectations and issued upside FY06 guidance (EPS of $1.55-1.65, vs. previously-guided $1.45-1.55 and the $1.51 consensus).... Separately, just crossing the wires that the Chicago Purchasing Manager's Index checked in at 49.2 after a prior read of 63.5... That is well below the consensus estimate of 61.0... NYSE Adv/Dec 1635/881, Nasdaq Adv/Dec 1237/1027

Oopsie! Somebody blinked.

[UpInArms]

38. Interstate to close Iowa bakery

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-31T140103Z_01_WEN8244_RTRIDST_0_FOOD-INTERSTATE-URGENT.XML

CHICAGO, Aug 31 (Reuters) - Interstate Bakeries Corp (IBCIQ.PK: Quote, Profile, Research) on Wednesday said it would close a bakery in Davenport, Iowa, as part of its plan to cut costs while in bankruptcy.

The maker of Wonder Bread and Hostess Twinkies said it expects charges of $5 million related to the closing, the latest in a series of bakeries to be closed. About 150 workers will be affected by the closing, the company said.

[UpInArms]

39. "Chopper" Ben Opens Piehole and LIES to the World

White House's Bernanke: Katrina impact to be modest

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.4285717708-841030124&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- The economic impact of Hurricane Katrina is likely to be modest as long as damage to the energy infrastructure is temporary, said top White House economic adviser Ben Bernanke in an interview with CNBC business network on Wednesday. "I expect it's going to be absorbed easily," Bernanke said of the temporary rise in energy prices. The White House is expected to announce later Wednesday the details of a release of crude oil from the government's strategic petroleum reserve to alleviate spot shortages.

Since when did $30 BILLION become "modest"?

[fasttense]

43. God almighty, I know folks here on this thread

normally just post facts with very little opinion but I couldn't take this comment from Ben Bernanke. "I expect it's going to be absorbed easily"???????? Tell that to the folks suffering. You know, the ones living out of their cars, the ones living with 20,000 people in the super dome. Maybe he was referring to the water covering NOL but I doubt it. He means the haves and have mores will do just fine.

[UpInArms]

44. It is almost beyond comprehension, no?

thanks, fasttense, for seeing the complete assinity of the clowns that spew from the highest offices of our country.

[JNelson6563]

62. You are correct

Last night gas here in northern MI had jumped to 2.99 a gallon. I just was out and saw it is at 3.20. I can tell you it is hitting hard in such a rural area where, for many, everything is very far away. Don't even get me started about how far flung our school district is. Transportation used to be a big fat 8% percent or so of the budget, now, well I can only imagine! This will hurt everyone!

Julie

[UpInArms]

64. a friend of mine just called and said that it cost $20 for 7 gallons

of gasoline this morning in a very rural area.

The farmers are going to have to ask themselves if they can afford to even harvest their crops with the cost of fuel exceeding the expected sale of what is in the fields.

It's going to get ugly.

[UpInArms]

50. Economic Reality Contradicts "Chopper" Ben

Katrina may negatively affect US CMBS deals-FITCH

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-31T142708Z_01_WNA7241_RTRIDST_0_FINANCIAL-ASSET-BACKEDS-URGENT.XML

NEW YORK, Aug 31 (Reuters) - Various commercial mortgage-backed securities (CMBS) transactions may be adversely affected by damage caused to New Orleans and the surrounding Mississippi Gulf coast by Hurricane Katrina, Fitch Ratings agency said on Wednesday.

"Making landfall as a category 4 hurricane, Katrina has inflicted severe damage not only to commercial real estate properties, but the local economy and infrastructure that support them. The effects of this disaster will be felt for some time," Adam Fox, director, Fitch Ratings, said in a press release.

Fitch identified 18 transactions with property concentration in the area ranging from 5 percent to as high as 52 percent. Fitch is particularly concerned with 12 transactions due to limited or no credit support to Fitch rated classes.

Fitch said it will closely monitor the following deals:

...more...

[UpInArms]

56. Mississippi Power reports damage to majority of power grid

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.4592016204-841031529&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Southern Co. (SO) affiliate Mississippi Power said Wednesday that after assessing three-quarters of the company's high powered transmission and distribution lines it expects roughly 70% will need to be rebuilt or repaired due to damage sustained during Hurricane Katrina. The utility said it may take up to four weeks to restore electricity to homes and businesses in areas hit hardest by the storm. Mississippi Power expects to immediately begin to work on parts of the electric system in less damaged areas, the company said in a statement.

[54anickel]

69. Asshole is thinking of the broken window fallacy. As long as the

damage to the energy infrastructure is temporary.

They'll make sure it is - there will be no responsibility for the environmental clean-up, lots of gov't aid to fix what got broken, and the rest of us peons will end up footing the bill for generations. Meanwhile, profits continue to flow.

Ben will just go print up some more greenbacks so we can afford the gas. :eyes:

Did ya get yer wheelbarrow yet?

[54anickel]

72. Katrina shows U.S. economy's vulnerabilities-Rebuilding effort should help

Rebuilding effort should help, but energy impact seen severe

http://www.msnbc.msn.com/id/9132279/

Even as emergency workers and others slosh through the soaked, debris-strewn streets of New Orleans and other areas torn up by Hurricane Katrina, some economists fear American policy-makers will take the wrong lesson from the storm and ignore America’s larger vulnerabilities.

Katrina’s “immediate effect will be a bump in gas prices of maybe 20-25 cents a gallon -- although that might be mitigated now the Bush administration has released some crude oil from the Strategic Petroleum Reserve. But the price of gas is going higher anyway,” said Stephen Leeb, president of Leeb Capital Management.

With gas prices already at record highs, a further jump is likely to have a negative impact on the U.S. economy.

The more serious issue, Leeb argued, is how quickly one strong storm can tip America’s energy needs at a time when global oil supplies are tight and getting tighter.

snip>

Despite this, other observers note that the billions of dollars of devastation wrought by Katrina will be offset by billions in reconstruction activity.

snip>

So, the question is whether the various authorities will use the emergency funds to build affordable housing or if developers will buy that land to build expensive housing, he added.

more...

[AnneD]

83. Today was a good day....

A bud of mine once said that a bad day was when you you didn't have time to duck before the shit hit the fan. A good day was when you had a few seconds of warning before the shit hits :hide:. Well I got my 5 second warning. I have been in meeting all day today. As you know by now, many of those homless in the Superdome will be placed in the Astrodome. Now I joked about the shortage of Tabasco Sauce in town yesterday, but it will soon be a reality. The meetings I have been in were about absorbing refugee children into our schools. We will be packed to the gills. I have no idea how this will be paid for-we hope FEMA can help us defray the cost:rofl: These are people that lost everything...homes, family members, pets, their posessions, their jobs, and their beloved city. I don't think things are that good. We are talking a major southern port city.

[54anickel]

88. Did you hear they cleared the Astrodome's calendar through December?

Can you imagine call a block of stadium seats home for months? :cry:

[UpInArms]

86. Katrina Expected to Disrupt National Economy

http://ap.tbo.com/ap/breaking/MGB5742Z1DE.html

WASHINGTON (AP) - Surging energy prices and business disruptions from Hurricane Katrina, likely the costliest natural disaster in U.S. history, threaten to slow what has been a steadily expanding economy.

The powerful and deadly storm devastated much of the Gulf Coast area in the South, knocking out oil refineries, shuttering businesses and crippling the flow of commerce through ravaged ports.

While the damage has yet to be fully assessed, economists and other experts believe the disaster will rack up insured losses of up to $25 billion. That would surpass the $21 billion (in inflation-adjusted losses) stemming from Hurricane Andrew in 1992, analysts said.

"This will be one of the - if not the - biggest single event in terms of insured losses in U.S. history," said Julie Rochman, spokeswoman at the American Insurance Association.

From an economic point of view, the biggest worry is that fallout from the storm will propel already lofty energy prices even higher. That's because the Gulf Coast region is an essential hub for oil and gas production and distribution.

Rising energy prices are likely to crimp consumer spending and business investment, slowing economic growth in the second half of this year, economists predicted. A worst-case and remote scenario is that the economy would be thrust into a recession, analysts said.

...and then the spinners took over the article...

[54anickel]

89. Heh-heh, there's that flexibility again.

[UpInArms]

76. Hurricane may affect Entergy's rating

http://www.marketwatch.com/news/story.asp?guid=%7B1F3ECC8F%2DF39F%2D4FF9%2D9D47%2DBBFFF1049D80%7D&siteid=mktw

WASHINGTON (MarketWatch) - Hurricane damage sustained by Entergy Corp.'s power system and the economic affects of the storm on the Gulf region could negatively affect the company's credit rating, Standard & Poor's Ratings Services said Wednesday

The ratings agency placed the energy holding company's BBB corporate credit rating on credit watch with negative implications.

The announcement "reflects the potential that Entergy's underlying business may have been irreparably harmed by the devastation wrought by Hurricane Katrina," the ratings agency said.

"The economic restoration of New Orleans and the surrounding communities is clearly going to be a painful and prolonged process, which may permanently weaken Entergy's credit quality," said Standard & Poor's credit analyst John Kennedy.

Whether or not Entergy's (ETR: news, chart, profile) credit quality erodes will depend on several factors, including restoration cost estimates, economic viability of the region, the level of responsiveness from state authorities, including regulators, and the timeline for Entergy to recover its storm costs, Standard & Poor's said.

...more...

[UpInArms]

42. Ford to fire 400 white-collar workers

http://www.freep.com/news/statewire/sw120518_20050830.htm

DETROIT (AP) -- Ford Motor Co. plans to fire 400 U.S. salaried employees by the end of this year as part of a restructuring plan, a company spokesman said Tuesday.

It is the first time in 30 years that Ford has forced out so many white-collar workers, spokesman Oscar Suris said.

Ford has said it wants to reduce its North American salaried work force by 2,750 jobs by the end of this year, but Tuesday was the first time the company has confirmed that 400 of those employees will be fired. Some of those firings already have occurred, Suris said.

The company has been trying to reduce its work force through buyouts and voluntary separations, but only 1,000 people had left the company by the end of July. Ford has 35,000 salaried workers in North America.

The firings were announced in an e-mail to midlevel and senior managers from Ford president and chief operating officer Jim Padilla. The employees will be given severance packages according to their years of service with the company, Suris said.

...more...

[Roland99]

48. Maybe if Ford had some sense and didn't waste billions on....

a 6,000lb super-dooper gas-guzzler....

[UpInArms]

47. 10:39 EST Land of LaLa in recovery

Dow 10,389.15 -23.67 (-0.23%)
Nasdaq 2,128.94 -0.82 (-0.04%)
S&P 500 1,208.02 -0.39 (-0.03%)
10-Yr Bond 4.020 -0.70 (-1.71%)

NYSE Volume 469,036,000
Nasdaq Volume 390,975,000

10:30AM: Indices take a hit following the disappointing Chicago Purchasing Manager's Index, which contributed to slowdown concerns with the monthly reading checking in at 49.2 versus 63.5 in the prior month and the consensus estimate of 61.0... Furthermore, the employment, production, and orders components of that report were all down from the prior month while the prices paid index was up slightly... The 10-yr has rallied on the data and is now up 17 ticks with its yield at 4.03%...

For the most part, though, equity losses remain modest in scope as traders have been careful not to assign too much weight to this single, regional report ahead of the national ISM Index, which will be released tomorrow... From a sector standpoint, it is deja vu all over again as energy (+1.26%) is the only sector in the early-going sporting a gain... On a related note, the Dept. of Energy will be releasing weekly inventory data momentarily... NYSE Adv/Dec 1364/1446, Nasdaq Adv/Dec 1009/1534

[ozymandius]

51. recovery, as in addiction?

10:54
Dow 10,392.36 -20.46 (-0.20%)
Nasdaq 2,129.13 -0.63 (-0.03%)
S&P 500 1,208.45 +0.04 (+0.00%)
10-Yr Bond 40.28 -0.62 (-1.52%)
NYSE Volume 546,682,000
Nasdaq Volume 453,728,000

0:30AM: Indices take a hit following the disappointing Chicago Purchasing Manager's Index, which contributed to slowdown concerns with the monthly reading checking in at 49.2 versus 63.5 in the prior month and the consensus estimate of 61.0... Furthermore, the employment, production, and orders components of that report were all down from the prior month while the prices paid index was up slightly... The 10-yr has rallied on the data and is now up 17 ticks with its yield at 4.03%...

For the most part, though, equity losses remain modest in scope as traders have been careful not to assign too much weight to this single, regional report ahead of the national ISM Index, which will be released tomorrow... From a sector standpoint, it is deja vu all over again as energy (+1.26%) is the only sector in the early-going sporting a gain... On a related note, the Dept. of Energy will be releasing weekly inventory data momentarily... NYSE Adv/Dec 1364/1446, Nasdaq Adv/Dec 1009/1534

[ozymandius]

52. I wonder how much the markets are priced above profit now? n/t

[UpInArms]

55. 11:05 EST heading for the magical 10,400

Dow 10,395.78 -17.04 (-0.16%)
Nasdaq 2,128.84 -0.92 (-0.04%)
S&P 500 1,208.64 +0.23 (+0.02%)
10-Yr Bond 4.035 -0.55 (-1.34%)

NYSE Volume 608,294,000
Nasdaq Volume 496,855,000

11:00AM: The indices are showing a mixed disposition as traders do their part to assess the economic impact of Hurricane Katrina and their concerns have been most noticeable in energy futures... On that score, the Dept. of Energy's weekly inventory report hasn't provided any real price relief... Granted distillate inventories were higher than expected (+2.75 mln vs +1.50 mln) while the drawdown in gasoline inventories was less than expected (508K vs -1.63 mln); meanwhile, crude inventories fell 1.52 mln barrels versus an expected increase of 1.0 mln barrels...

In light of the massive damage done in Katrina's wake, though, inventory standings at this point are apt to be treated with a glass is half empty perspective... As such, energy futures - crude, natural gas, unleaded gas, and heating oil - continue to sport gains following the DOE report... NYSE Adv/Dec 1726/1191, Nasdaq Adv/Dec 1384/1299

[UpInArms]

57. 11:12 EST Traitors Victorious in the Land of LaLa - We're Rich!

Dow 10,417.60 +4.78 (+0.05%)
Nasdaq 2,132.02 +2.26 (+0.11%)
S&P 500 1,210.41 +2.00 (+0.17%)
10-Yr Bond 4.035 -0.55 (-1.34%)

NYSE Volume 648,519,000
Nasdaq Volume 523,216,000

[ozymandius]

58. 11:38 and vacillating all over the place

Dow 10,424.85 +12.03 (+0.12%)
Nasdaq 2,134.83 +5.07 (+0.24%)
S&P 500 1,211.43 +3.02 (+0.25%)
10-Yr Bond 40.38 -0.52 (-1.27%)
NYSE Volume 799,320,000
Nasdaq Volume 610,202,000

Forget about conviction one way or the other today.

[UpInArms]

65. Futures markets doubtful for late-year Fed hike

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.5023324769-841034027&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

CHICAGO (MarketWatch) -- Interest-rate futures markets have been active Wednesday as traders assess the economic impact of Hurricane Katrina and digest a downward revision to U.S. GDP figures and a weak, if questionable, regional manufacturing report from Chicago. The market now sees only the slimmest of chances, 6%, for Federal Reserve interest rates to be as high as 4.25% in December. Odds were at 26% Tuesday. The market still sees a very strong chance for an upward adjustment to the Fed's current 3.5% target next month, but has pared back its bets for a 4% target in November, to 66% odds from 81%. The chance for a move to 4.25% in February, assuming no move in December, were clipped to 27% from 56%.

[UpInArms]

66. 12:11 EST numbers and yada

Dow 10,396.34 -16.48 (-0.16%)
Nasdaq 2,131.43 +1.67 (+0.08%)
S&P 500 1,208.94 +0.53 (+0.04%)
10-Yr Bond 4.039 -0.51 (-1.25%)

NYSE Volume 915,948,000
Nasdaq Volume 701,790,000

12:00PM: Futures trading pointed toward a mixed start for the cash market, and that's basically what we got as traders remain pre-occupied with the ramifications of Hurricane Katrina's massive, and destructive, footprint... In a bid to help relieve some of the supply disruptions associated with Katrina, Secretary of Energy Sam Bodman announced the government will tap the Strategic Petroleum Reserve - news that fostered a measure of relief for the market and which has kept crude prices in check today...

Buying interest, however, has been tempered as gas prices continue to move up and feed concerns about the pace of consumer spending in the weeks and months ahead... In turn, investors appear to have been put off somewhat by the downward revision to Q2 GDP (to 3.3% from 3.4%) and a much weaker than expected Chicago Purchasing Manager's Index (49.2 vs 63.5 in prior month and 61.0 consensus estimate)... The ISM Index, which is a gauge of national manufacturing activity, is due out tomorrow... Early corporate news has contributed to the market's mixed disposition...

Chip equipment maker Novellus Systems (NVLS 26.91, -0.55) delivered a disappointing Q3 mid-quarter update after Tuesday's close, cutting its EPS outlook to 0.20-$0.21 vs. the $0.22 consensus, lowering its revenue forcast to $320 mln and narrowing its bookings guidance to $285-$290 mln... Tiffany & Co. (TIF 36.66, +3.35), on the other hand, delivered earnings $0.06 ahead of expectations and issued upside FY06 guidance (EPS of $1.55-1.65, vs. previously-guided $1.45-1.55 and the $1.51 consensus), and has since surged over 11%, lending support to the consumer discretionary sector...

[ozymandius]

68. all red again now, save bonds

12:19
Dow 10,387.97 -24.85 (-0.24%)
Nasdaq 2,129.23 -0.53 (-0.02%)
S&P 500 1,207.63 -0.78 (-0.06%)
10-Yr Bond 40.27 -0.63 (-1.54%)
NYSE Volume 952,384,000
Nasdaq Volume 727,097,000

[54anickel]

74. 1:21 and all black again

Dow 10,415.76 +2.94 (+0.03%)
Nasdaq 2,134.73 +4.97 (+0.23%)
S&P 500 1,210.88 +2.47 (+0.20%)
10-yr Bond 4.028% -0.06
30-yr Bond 4.272% -0.03
NYSE Volume 1,199,153,000
Nasdaq Volume 890,281,000


1:00PM: Although the disappointing Chicago PMI data this morning didn't do much to stir the equity markets, the dollar has slipped in its wake against both the euro and the yen. The reported slowing in the region's manufacturing activity fanned fears that the overall economy is slowing and has acted as a deterrent for dollar buyers. Conversly, the weaker than expected Chicago PMI print (49.2 vs. 61.0) has boosted the bond market on the presumption slower growth will stem the Fed's tightening activity. The major indices, meanwhile, have been virtually unchanged over the past half hour...

12:30PM: The market is trading in mixed fashion with neither buyers nor sellers showing much conviction... The one exception, of course, is energy (+2.42%) as that sector continues to rally on the coattails of rising energy prices.... A notable laggard in the blue chip world is the financial sector (-0.59%), which continues to be weighed down by losses among the property & casualty insurers (-2.43%) and the concerns surrounding the flattening yield curve that makes for a less profitable environment...

The relatively flat standing of the major indices, though, belies an otherwise decent performance from the small-cap stocks that is reflected in the 0.9% increase in the S&P 600 Smallcap Index... NYSE Adv/Dec 1934/1194, Nasdaq Adv/Dec 1477/1364

[54anickel]

70. The Chairman Almost Confessed

http://www.321gold.com/editorials/schmidt/schmidt083105.html

snip>

While the cable news shows can still find some that do not understand the danger in the impending U.S. housing market crash, at least the Chairman is starting to recognize the obvious. He noted, "Nearer term, the housing boom will inevitably simmer down"(Greenspan,2005,¶ 3) Is "simmer down" the NASDAQ plummeting from 5000 to the first bottom? Was that near fatal collapse in the NASDAQ stocks nothing more than a "simmer down?" What will be the value of your home when prices "simmer down?"

Next the Chairman commented, " . . . home price increases will slow and prices could even decrease" (Greenspan,2005,¶ 3) . That's the phrase that bothered everyone. That's the phrase that rattled the psyche of so many. Commenting further he said, "As a consequence, home equity extraction will ease and with it some of the strength in personal consumption expenditures"(Greenspan,2005,¶ 3). That statement is as close as anyone at the Federal Reserve has come to saying a Great Recession is likely to follow the bust of the housing bubble. However, we note that the good Chairman did not accept any of the blame for the situation.

Many are still deluded into thinking that housing prices are a local phenomenon. That condition was true in 1955. In 2005, as will be explored in the September issue of THE VALUE VIEW GOLD REPORT, housing prices are a national phenomenon. The financing of housing has taken a giant step from the days of our parents borrowing money for their two bedroom, one bath home at the local savings & loan. Hyman Minsky did not write enough, but his musings on financial fragility and instability are about to become a whole lot more well known.

The Chairman went on to comment on the likely ". . . rise in the personal savings rate, a decline in imports, and the corresponding improvement in the current account"(Greenspan,2005,¶ 4) that will follow the lower level of "home equity extraction." Greenspan said, "Whether those adjustments are wrenching will depend, as I suggested yesterday, on the degree of economic flexibility that we and our trading partners maintain, and I hope enhance, in the years ahead"(2005,¶ 4).

Those last comments are extremely important. For what they mean is that the difference between "simmering down" and a Great Recession in the U.S. lies with the attitudes and expectations of U.S. trading partners. In short, will they continue to hold about one and a half trillion dollars of U.S. debt while watching the U.S. collapse into an economic abyss? As with elections, we have some early indications from the exit polls. The early "exit polls" suggest that the existing incumbent is losing support.

more...

[54anickel]

71. The Government Bubble (Mogambo)

http://www.kitco.com/ind/Daughty/aug312005.html

With Alan Greenspan out of town, the Federal Reserve reduced Total Fed Credit by $2.2 billion. Even the foreigners who buy government and agency debt through their accounts at the Fed have suddenly NOT been buying more. In fact, they were net sellers of US government debt by $2.5 billion last week!

What in the hell does all this mean? Jim Otis, otherwise famously known as the Optimist, explains "liquidity can only be added, but it can never be removed. Removing the stimulus of the added money supply would cause the very deflationary depression that the money was injected to prevent. For each crisis that is solved by increasing the money supply, there must be a correspondingly higher inflation caused by an increase in the amount of fiat paper which is chasing the same amount of purchasing opportunities."

So, suddenly, your head is snapped upright! You instantly see the problem! Stimulus is not being added! The ultimate significance is that this is very bad news if you have money invested in anything, because the money that would enable higher prices suddenly isn't there anymore. Bubbles require constantly more money and credit. Without the additional money and credit, you cannot have a bubble. Suddenly, you achieve True Mogambo Wisdom (TMW) when you realize why you are hearing the sound of howling wolves in the soundtrack; we are not seeing more money and credit being created! WoooOOOoooo!


The reason that Alan Greenspan is out of town is that the annual secret meeting of the Fed and all their horrid little friends is underway in Jackson Hole, Wyoming. I usually refer to this as "The A-holes at the J-hole", because that pretty much sums up my attitude toward the whole thing. Namely, a bunch of posturing and preening idiots wondering why their idiotic economic theories are not working out in real life.

But it was Greg Ip in the Wall Street Journal that put me over the edge. It was last Friday when he wrote in his article "Greenspan's Legacy Explored" what I took as some congratulatory praise for Greenspan. I know that he is just an employee, but was it really necessary to so gloriously laud him as a "Fed chairman who presided over a decline in the U.S inflation rate and unemployment and successfully navigated several financial crises"? Hahahaha! For one thing, Alan Greenspan had nothing to do with the apparent fall in the inflation rate! The REAL reason is that China started providing us with stuff cheaper. THAT is what caused it to look like inflation fell.

more...

[JNelson6563]

78. Mogambo is so irreverent!

Which is why I get such a kick out of reading him! haha Thanks for posting 54, I was due for a reason to smile. Seems our world crumbles before our very eyes....

Julie

[54anickel]

91. Mogambo and Jim Willie are two of my favorites. So how's life in

your neck of the woods, Julie?

Always good to "see" you stop by. Still long on gold? ;-)

[54anickel]

73. Fears rise that U.S. standard of living falling

http://www.chron.com/cs/CDA/ssistory.mpl/business/3332423

WASHINGTON - U.S. workers are dissatisfied with the economy and fear their standard of living is declining, according to a survey released Tuesday by the AFL-CIO.

The labor organization's survey of 805 workers found widespread dissatisfaction with their economic situation, even as other indexes show rising consumer confidence and a more plentiful job market.

Rising health care costs, gasoline prices and job outsourcing weighed on the minds of those surveyed by the AFL-CIO.

Seventy percent of those surveyed said their salaries are not keeping pace with rising costs, and 69 percent said most new jobs do not offer good pay or benefits.

Only 43% hopeful
Only 43 percent of the respondents were hopeful and confident about achieving their financial goals, down from 70 percent in 1999, the AFL-CIO said.

"Working families are in a deep and growing economic crisis and they know it, even if the Washington and Wall Street crowds don't," AFL-CIO President John Sweeney said.

more...

[UpInArms]

75. McLeodUSA announces 240 layoffs

http://desmoinesregister.com/apps/pbcs.dll/article?AID=/20050831/BUSINESS/50831005/1029

McLeodUSA has laid off 240 employees in its 25-state footprint as part of its effort to restructure the financially troubled telecommunications company.

According to a regulatory filing late Tuesday, the Cedar Rapids-based company expects to pay $3.2 million for severance payments.

McLeod has 1,970 employees in total.

McLeod provides voice and Internet services primarily to business customers. In the second quarter, McLeod lost $268 million, including payments of $4.8 million for financial and legal help in its restructuring efforts.

...more...

[UpInArms]

79. 2:27 EST numbers and yada

Dow 10,420.30 +7.48 (+0.07%)
Nasdaq 2,136.46 +6.70 (+0.31%)
S&P 500 1,210.31 +1.90 (+0.16%)
10-Yr Bond 4.051 -0.39 (-0.95%)

NYSE Volume 1,471,286,000
Nasdaq Volume 1,085,789,000

1:55 ET Crude ($68.20/ bbl) continues its decline, and sentiment is further assuaged by reports that water in New Orleans has stopped rising. Transportation (+1.0%) stocks have taken a cue from oil's decline, and, to that end, the Dow Jones Transportation index (+0.15%) has edged into positive territory. The Russell 2000's outperformance (+1.07%) highlights the relative strength of small caps versus blue chip stocks today... ..NYSE Adv/Dec 2184/993. ..NASDAQ Adv/Dec 1713/1190.

1:30 ET The averages have jumped over the flat line, largely on a trio of Dow components' backs. Trumping ExxonMobil's (XOM 59.69 +1.08) gain is Caterpillar's (CAT 55.33 +1.55) 2.9% hike, which has recently launched into the Dow's driver's seat as attention towards construction companies' potential benefit from Katina has picked up steam. Hewlett-Packard (HPQ 27.53 +0.43), meanwhile, has risen 1.6% on the day, although there is no news to be credited. Underpinning the new-found modest boost of bullishness is the fact that crude oil has carved out a new session low, currently trading at $68.85/bbl. ..NYSE Adv/Dec 2030/1135. ..NASDAQ Adv/Dec 1688/1203.

[UpInArms]

80. Another Way to Scam the Poor: 98.8 Percent Overhead

http://www.seattleweekly.com/features/0534/050824_news_nsccf.php

The North Seattle Community College Foundation is one of the nation's biggest credit-counseling agencies, but hardly any of the millions of dollars in revenue goes to helping students. Most of it goes to for-profit corporations.

Desperate debtors were supposed to be the key to riches for the North Seattle Community College Foundation, created to independently raise money for North Seattle Community College, a public school. Finding money for scholarships can be tough for a two-year school that alumni are prone to forget after they transfer to a four-year college. So seven years ago, the nonprofit foundation, which had relied on dinners and other traditional fund-raising events, settled on an unusual way to fill its coffers: credit counseling.

As the foundation began to morph into a credit-counseling agency in the ensuing years, organization officials predicted great things. Credit counseling would bring in as much as $1 million a year for scholarships, they said.

The foundation's credit-counseling business today is one of the biggest in the nation, generating yearly revenue in the tens of millions of dollars. But federal records show just a small fraction of that money—far less than $1 million in any given year—has gone to college scholarships or programs. Most of the money raised has gone to for-profit concerns contracted to do the foundation's credit-counseling work, not needy students.

In the fiscal year ending June 30, 2004, the North Seattle Community College Foundation took in $65.7 million and gave just $895,725 in scholarships and grants to college departments. Since setting up its credit-counseling business in late 1998, the foundation has taken in $233.6 million and contributed only 1.2 percent of that in scholarships and grants, according to tax returns. That would put overhead costs at 98.8 percent.

...more...

[54anickel]

81. Oh for Pete's sake. Is there absolutely no good news in the US anymore?

Is every damned noble and charitable thing turning into a f'ing profit center to line to pockets of a handful of greedy bastards?

Speaking of greedy bastards, I just saw dumb-ass is going to be on the tele at 5:00 pm. Nothing like ruining America's appetite around the dinner hour. :puke:

[RawMaterials]

82. with gas and the economy the way it is who can afford to

eat dinner anyway?

[ozymandius]

84. coming up to the close

3:38
Dow 10,470.54 +57.72 (+0.55%)
Nasdaq 2,148.59 +18.83 (+0.88%)
S&P 500 1,218.05 +9.64 (+0.80%)
10-Yr Bond 40.20 -0.70 (-1.71%)
NYSE Volume 1,886,990,000
Nasdaq Volume 1,382,373,000

blather says that stocks are betting against the dollar and, of course, energy stocks are up

3:00PM: One of the pockets of strength today has been the XAU Philadelphia Gold & Silver index (+2.0%). Lending support to the index has been the jump in gold prices that has been a by-product of the dollar's weakness and some safe-haven buying interest... In particular, Barrick Gold (ABX 26.13, +0.45), Newmont Mining (NEM 39.28 +0.41), and Gold Fields (GFI 11.36 +0.47) are among the stocks benefitting today from higher gold prices. Separately, the indices have moved to session highs as the price of crude (-$1.26 at $68.55) is down by more than a dollar on the day. NYSE Adv/Dec 2233/996, Nasdaq Adv/Dec 1784/1167

[54anickel]

87. WTF is going on? Of course gold would be going up, it was on sale

after breaking below 435. How does gold and oil up explain ALL the indices moving up?

I call Bushit!

[Career Prole]

85. On the off chance I ever have enough money to invest...

...is there anything that makes the market go down anymore?

Seriously...I thought I was starting to "get it", but now :shrug:

[ozymandius]

90. closing numbers - not that they make any damn sense

Dow 10,481.60 +68.78 (+0.66%)
Nasdaq 2,152.09 +22.33 (+1.05%)
S&P 500 1,220.33 +11.92 (+0.99%)
10-Yr Bond 40.20 -0.70 (-1.71%)
NYSE Volume 2,257,241,000
Nasdaq Volume 1,631,784,000

[ozymandius]

92. as to why they make no sense: posts #50 and #86 - bad futures n/t

[54anickel]

95. Aww Ozy, such a worry-wort. That's the future -this is today! And we're

all gonna be rich, I tell ya RICH!!! These stock prices are bargains, they'll just go up, and up, and up. :eyes:

We tend to say the stock market is not the economy - these traders are betting on it.




Meanwhile, economists still unaware of the elephant in the room - but they're catching a whiff of something in the air.

[UpInArms]

97. I feel a song comin' on

Whiskey bottles, and brand new cars
Oak tree you're in my way
There's too much coke and too much smoke
Look what's going on inside you
Ooooh that smell
Can't you smell that smell
Ooooh that smell
The smell of death surrounds you

Angel of darkness is upon you
Stuck a needle in your arm
So take another toke, have a blow for your nose
One more drink fool, will drown you
Ooooh that smell
Can't you smell that smell
Ooooh that smell
The smell of death surrounds you

Now they call you Prince Charming
Can't speak a word when you're full of 'ludes
Say you'll be all right come tomorrow
But tomorrow might not be here for you
Ooooh that smell
Can't you smell that smell
Ooooh that smell
The smell of death surrounds you

Hey, you're a fool you
Stick them needles in your arm
I know I been there before

One little problem that confronts you
Got a monkey on your back
Just one more fix, Lord might do the trick
One hell of a price for you to get your kicks
Ooooh that smell
Can't you smell that smell
Ooooh that smell
The smell of death surrounds you
Ooooh that smell
Can't you smell that smell
Ooooh that smell
The smell of death surrounds you

Lynyrd Skynyrd

[54anickel]

98. Bravo UIA. Best suited tune for all that's been going on this week in

the good old US of A.

[UpInArms]

101. here's the best graphic

and with all those Louisiana transplants going to Texas, perhaps that state will turn blue also.

[54anickel]

102. SWEET!!! 43 down and 7 to go! Which one will be next to join the

awakened?

[54anickel]

100. Don't forget the broken window fallacy. It's just like the "war is good

for the economy" mentality. See post 72. Then there's this LBN thread out there

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1741150

Katrina securities scams hit investors

WASHINGTON (Reuters) - Financial fraudsters are already hitting investors with post-Hurricane Katrina stock scams tied to speculation about spiking energy prices, U.S. market regulators warned on Wednesday.
After catastrophes like Katrina, fraudsters often rush to repackage old schemes around the latest sensational headlines, said the U.S. Securities and Exchange Commission.

"Already we are seeing e-mails touting stocks on the basis of hurricane activity in the Gulf (of Mexico)," said Susan Wyderko, director of the SEC's Office of Investor Education.

"Unfortunately, disasters always bring out scammers who prey on human suffering," she said in an interview.

One spam e-mail making the rounds on the Internet refers to "a spate of refinery glitches and an unusually active hurricane season" and says investors could more than double their money in just days on certain penny stocks, the SEC said.

[UpInArms]

96. "No Losers" blather

Close: The stock market turned in a winning performance Wednesday as oil prices declined while the action in the Treasury market conveyed a burgeoning belief the Fed will be inclined to end its tightening activity sooner than expected.... Specifically, the Treasury market caught a bid in the wake of a slight downward revision to Q2 GDP (to 3.3% from 3.4%) and a much weaker than expected Chicago Purchasing Manager's Index (49.2 vs 61.0 consensus)... The move was predicated on optimism that high energy prices will slow the economy to a point that will keep inflationary pressures under wraps...

That viewpoint was evident in the steepening of the yield curve today, where the front end (most sensitive to Fed tightening) outperformed the back end, and the spread between the 2-yr and 10-yr notes widened to 20 basis points (it got as narrow as 11 basis points on Tuesday)... The inference from that showing is that traders are starting to place bets that the dual forces of high energy prices and Hurricane Katrina will slow the economic expansion and provide the Fed with reason to curtail its tightening efforts...

The point is debatable, but it is a silver lining idea that helped feed broad-based buying interest in the stock market during the afternoon trade... Fittingly, the yield curve-sensitive financial sector (+0.68%) was an active participant late in the session that saw the indices close at their highs for the day on the heaviest volume all week... Though crude prices declined, the energy sector (+2.60%) remained the market's best performer as investors remained convinced demand is going to remain strong for an extended period... From an economic sector standpoint, there were no losers today...

[Roland99]

103. WTF?!?!

[UpInArms]

93. After the Bell: Freddie Mac 1Q and 2Q net income slumps

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.6844339931-841041851&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Freddie Mac (FRE) reported a slump in first- and second-quarter profit late Wednesday as the mortgage-finance company tries to recover from accounting problems in 2003 that forced a $5 billion restatement. First-quarter net income came in at $875 million, or $1.19 per share, down from $1.31 billion, or $1.82 a share, a year earlier, the company said. Second-quarter net income was $769 million, or $1.03 per share, versus $2.75 billion, or $3.91 a share, in the same period a year ago, the company added. Freddie Mac was expected to earn $1.71 per share in the first quarter and $1.77 a share in the second quarter, according to a survey of analysts by Thomson First Call.

[UpInArms]

94. Halliburton at 52 week high

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38595.6810580093-841041691&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Shares of companies that are expected to help in Gulf of Mexico oil and gas infrastructure restoration rallied to 52-week highs and one record Wednesday. Halliburton (HAL) shares closed at a 52-week high of $62, up 3.8%, or $2.29. Oceaneering International (OII) jumped 8.2%, or $3.76, to close at a record $49.72. Global Industries (GLBL) jumped 5.9%, or 77 cents, to close at a 52-week high of $13.77. And Tidewater (TDW) saw its shares rally 8.4%, or $3.46, to close at a 52-week high of $44.54.

[54anickel]

99. I bet it's actually an all time high, but they didn't want to rub it in...

[daleo]

104. Well, at least someone is optimistic

I know, the stock market is funny that way.