STOCK MARKET WATCH, Wednesday 21 September

[ozymandius]

Wednesday September 21, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 122 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 275 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 339 DAYS
DAYS SINCE ENRON COLLAPSE = 1396
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 September 20, 2005

Dow... 10,481.52 -76.11 (-0.72%)
Nasdaq... 2,131.33 -13.93 (-0.65%)
S&P 500... 1,221.34 -9.68 (-0.79%)
10-Yr Bond... 4.24% -0.00 (-0.09%)
Gold future... 470.00 -0.40 (-0.09%)

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 - WEEKLY CHARTS

SUMMARY

Last week we said,

"The indices have come up to resistance while the Quantifiers have rallied back up to the zero line. The set up implies that, strictly from a technical point of view, the odds favoring a break-out are almost even with the odds favoring a downside reversal. The VXO (see chart below) is hinting that we need to be more concerned about a downside reversal due to the identical set-up between now and early April (see chart below) which resulted in a 5% decline. Next week we have options expiration, and usually, options expiration weeks tend to have a positive bias. In addition, the price pattern associated with a positive options expiration week is characterized by weakness on Monday and Tuesday, followed by strength Wednesday through Friday. Therefore, early on we will be looking for confirmation that the week will turn out to be a typical options expiration one. If we have weakness on Monday and Tuesday but price is contained above support, we will expect the rally to resume by Wednesday and last until Friday. On the other hand, if the indices rally on Monday and Tuesday, it would imply that we are dealing with an "atypical" options expiration week, and thus, we will re-evaluate as we go, based on the technical readings that are associated with the rally."

(Current) Last Friday we got the "customary" options expiration rally, and given that most indicators were flirting with the zero line, the odds slightly favored a continuation for another 1-2 days. If the markets had been able to continue higher yesterday and today then the rally would have accelerated by Wednesday, and in the case of the SP for example, it would have climbed to new recovery highs in the 1265-1285 zone. Unfortunately, the markets were unable to continue higher during the first couple of days of this week, and at the same time, the McClellan Oscillators and the Quantifiers reversed to the downside at the zero line. In addition, the BSEs and the TOs also turned negative! Consequently, the odds at this point, favor additional price weakness.

more...

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

[whistle]

3. If the federal debt is now close to $9 trillion and the real GDP is

...$11.5 trillion and the debt by the time Bush leaves office in Jan 2009 will be $13.5 trillion and the annual interest on that debt will be $641.25 billion and all of that interest will have to be borrowed if it is to be paid, will the United States have a Chinese appointed as national receiver to collect and distribute federal revenues to pay off the debt?

Projected federal debt Jan 2009 = $13.5 trillion
U.S population Jan 2009 = 301,500,000
Debt per man, woman and child = $44,851.00

[ozymandius]

2. DOWNSIDE REVERSAL - DEAD AHEAD

NYSE Advance/Decline Anomalies

To begin with, I will start with the a comparison between the NYSE A/D data as reported by Associated Press (AP) and the NYSE A/D data as gathered by my computer. For those who are not aware, the reported AP Data has dwindled steadily in its utility over the years as the A/D data has become heavily polluted with ETFs (double counting) Preferred Stocks and Bond Funds. The result is that the commonly reported A/D Data is heavily biased by interest-rate sensitive stocks, which are really bond surrogates.

-cut-

In fact, just yesterday, the NYSE AP reported data series caused the Widely Watched A/D Line to move to a new high for the move. In classic technical analysis this is an all clear signal for the stock market as the A/D Line will normally turn down well in advance of a serious stock market decline. However, the data is polluted and skewed to the upside.

-cut-

Removing the Bias Reveals the Truth

In any event, there is a huge upward bias in the reported numbers, which when stripped away as I said earlier, reveals a portrait of a much weaker stock market than most would expect. How weak? The Answer: Very Weak. Over the last few weeks, the S&P 500 has hovered near four-year highs, yet over the same period of time, my Operating Company Only A/D Line has been moving lower and has actually undercut its 200-day moving average. Yesterday, as the S&P 500 came within 3.56 S&P points of a new closing high, my Operating Companies Only A/D Line ended just barely back above the 200-day moving average.

more...

http://www.financialsense.com/editorials/barbera/2005/0913.html

[whistle]

4. Where should one's investments be to protect against market declines

[Zynx]

7. Typical market corrections are nothing to worry about for a long term

investor. However, one should have a value tilt to their portfolio with large cap non-cyclicals like Procter & Gamble and Kimberly Clark if you are concerned about volatility. Frankly, I say that if you are not willing to see an individual stock you own go down 20% or a mutual fund you own go down 10%, you shouldn't be in the stock market.

If that is your situation, load up with "Balanced" funds that are half bonds and half stocks and generally provide a consistent 8% a year unless equity performance is like the 2000-2002 period, which was an anomaly.

[RawMaterials]

106. This is not a Stock investor Board

Also from post of your from the past don't you think if your going to pimp a company like PG you should also let everyone now that you own it and have a vested interest in it going "up".

[AnneD]

55. Morning Marketeers,

:donut: Thanks to all the good folks that contribute hard data and gleaned facts to this site daily or frequently (Ozy, 54anickle, UIA, Maeve just to name some that pop into the brain). Yes it is a bit depressing but we have seen this coming for a while and most of us have adjusted as much as we could for this. It will deficiently be 'a hard rain gonna fall'.
And speaking of hard rains....we are bracing for Rita. People have gone ape shit down here. I went to the grocery store to get a few extra items, like bottled water and canned goods and you would have thought it was the second coming the way things were flying off the shelf. Katrina and her aftermath really scared the crap out of everyone along the coast. We realize that we cannot rely on the government that we elected (ok, I didn't vote for them)to do their job and we will be left to our own devices. We are lucky we have a good city government here in Houston and I have faith in them. The news outlets are even talking about evacuations. Well, IMHO it is way too early. We won't have a good idea until Fri. How ironic, our shelters are still filled with Katrina evacuees. C'est la vie.

[spooked911]

5. Thanks again for this, Ozymandias, though it is depressing as hell

[ozymandius]

45. You're welcome!

I know it is depressing as hell. Every day, it is as though we enter the courtroom of public opinion with financial evidence of what's wrong with this country under its present stewardship. But we keep on doing it because moral revolutions take time.

[spooked911]

87. Moral revolution: I like that. Hadn't heard it before.

[UpInArms]

6. daily dollar watch

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

Last trade 87.99 Change -.61 (-0.69%)

Dollar Retreats As Emotions Run Wild

http://www.dailyfx.com/index.php?option=com_content&task=view&id=3616&Itemid=39

Dollar hastily retreated as emotionally charged market made a quick work of the greenback bids with the majors retaking the levels lost during the previous few trading sessions.

<snip>

EUR/USD – Euro bulls came out in full force and retaliated against the dollar longs as they pushed the pair above the 1.2200 figure during the latest bout of anti-dollar bearishness. As the price action temporally switches sides, a failure to gain momentum above the 1.2200 handle will most likely see the euro retrace the initial move and break below the 1.2100 figure, which provided temporary support for the single currency longs. A break below the 1.2100 level will most likely see the dollar rally resuming its course and target the bids around the 1.2041, a euro defensive position established by July 7 daily high. A sustained momentum on the part of the dollar bulls will most likely see the vanguard greenback forces attack the psychologically important 1.2000 handle, with a break below taking on the euro bids around 1.1982, a level marked by the July 26 daily low. Indicators are favoring the dollar bulls with both momentum indicator and MACD below the zero line, while extremely oversold Stochastic gives the euro bulls a fighting chance.

<snip>

USD/JPY –
Japanese Yen longs once again tried to retake the territory lost to the dollar bulls during the last few trading session as they pushed the pair toward the 111.50 mark, which is being defended by the 23.6 Fib of the 104.18-113.74 USD rally. A failure to break to the downside will most likely see the Japanese Yen bulls once again feel the wrath of the greenback longs with the pair retreating above the 112.00 handle. A sustained momentum on the part of the dollar bulls will most likely see the pair take-on the yen defenses around 112.62. a level marked by the August 8 daily spike high. A break above the 112.62 will most likely open the 112.98, a July 19 daily high as a potential target which currently acts as a gateway toward the 2005 high at 113.68. Indicators are beginning to diverge, with momentum indicator above the zero line and MACD sloping upward toward the zero line, while overbought Stochastic give Japanese yen longs a chance to retaliate.

...more...

I would assume that those emotions are tied to this:

HURRICANE RITA ACHIEVES CATEGORY 4 STATUS

[UpInArms]

8. Oil spike hurts dollar, bonds firm

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T100312Z_01_L21646421_RTRIDST_0_MARKETS-GLOBAL-WRAPUP-3.XML

LONDON, Sept 21 (Reuters) -Fears of another devastating hurricane striking the U.S. Gulf coast pushed oil prices past $67 a barrel on Wednesday, hitting the dollar and overshadowing signs from the Federal Reserve that further rate rises are coming.

After lashing the Florida Keys, Hurricane Rita was upgraded to a Category 3 storm and could quickly become Category 4, similar to Hurricane Katrina which devastated Louisiana last month and sent oil prices to records above $70 a barrel.

Longer dated euro zone government bond prices rose on concerns the high energy prices and the hurricane's effect were a threat to growth, forcing yields lower.

"The hurricane has been upgraded to four, similar to Katrina, so that is preying on people's minds particularly if it hits areas with some key strategic oil facilities," said Kamal Sharma, currency strategist at Bank of America.

Short covering also hurt the dollar after it failed to keep upward momentum after the Fed raised U.S. interest rates for the 11th straight time and hinted at more rises to come.

...more...

[UpInArms]

114. Crude closes near $67; natural gas at record

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.6328815972-843180193&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- October crude closed at $66.80 a barrel, up 60 cents, but off the session's top level of $68.10. A minor fall in U.S. crude inventories last week and a build in gasoline supplies put some pressure on prices, though traders remained focused on Hurricane Rita. October natural gas was not yet settled, at $12.60 per million British thermal units, up 0.9%.

2:56pm 09/21/05 NOV CRUDE CLOSES AT $66.80/BRL, UP 60C, OR 0.9% FOR THE DAY

[54anickel]

24. Dollar`s Lucky 11 as Alan Shrugs Katrina

http://www.forexnews.com/AI/default.asp

snip>

The fact that the Fed deems “core inflation has been relatively low in recent months and longer-term inflation expectations remain contained” despite the surging volatility in energy prices, means the central bank is highly confident of the accommodative role of its overall monetary policy.

Indeed, despite the 11 rate hikes of the past 15 months, liquidity remains plentiful. The red graph in the chart below shows that the month-to-month increase in money supply (M2) stands at a relatively modest 0.2%, but is well above its April lows of -0.1%, suggesting the Fed is raising liquidity to offset the effect of rising interest rates and mounting fuel prices. This clearly suggests that Fed’s tightening campaign is aimed at normalizing interest rates towards a neutral level—most likely at a 4.00%-4.25% fed funds target, but without hindering economic growth, hence, maintaining an “accommodative” policy via generous M2 liquidity.



Moreover, our rationale for a pause in monetary policy is underlined by the emerging of a slowing US consumer in the 2 years preceding the Hurricane. The next chart shows that the contribution of US consumers and companies into GDP growth to have slowed invariably. The slowdown in consumers' contribution to GDP from 4.1% in Q3 2003 to 2.1% in Q2 2005 occurred well before the 30% increase in gasoline prices between July and mid September. Falling consumer confidence (tumbling Univ of Michigan), increased jobless claims and unemployment which are not guaranteed to be filled are factors that are cause for a Fed pause. It may be argued that a Fed pause today might have run the risk of bringing the Fed it behind inflation especially that there is no scheduled meeting in October. But as we argued over the past year, the contractionary risks of higher oil are increasingly shadowing the inflationary risks of oil. And the aforementioned spillover effects of Katrina are likely to be distributed over the next few months, especially when the economy has been stretched thin by the factors seen in the chart below.



more on FX impact...

[54anickel]

42. Fed May Sacrifice Growth to Prevent Inflation

I may be way off, but I think that, right now, the Fed is concentrating on propping up the bucks that are flooding the system. Gotta keep the confidence games going in the buck, the markets and the US economic "growth". Al keeps juggling the confidence balls - which one will drop first?

http://www.bloomberg.com/apps/news?pid=10000103&sid=aqK90OPxsY9U&refer=us

Sept. 21 (Bloomberg) -- Federal Reserve policy makers may be willing to sacrifice economic growth if that helps them keep inflation under control as energy prices soar, economists said after reading the central bank's latest statement.

``This is not a policy of indifference,'' said David Resler, chief economist at Nomura Securities International in New York. ``This is a policy of additional restraint. Contrary to what they say, they think the inflation threat is graver than the threat to growth.''

snip>

``When push comes to shove, the Fed will opt in an unmistakable fashion to preserve the inflation achievements they have,'' said Anthony Karydakis, chief U.S. economist at J.P. Morgan Asset Management. ``They will be very willing to sacrifice some growth for a while to keep inflation under control.''

That's a break from the way the Chairman Alan Greenspan and other Federal Open Market Committee members handled rising energy prices in the past, former Vice Chairman Alan Blinder said.

Keeping Pace

The Fed previously tried to ``cushion the blow to the real economy by being easier with monetary policy, not tighter,'' when there were temporary oil price increases, said Blinder, now an economics professor at Princeton University. ``In this case, he was not easier with monetary policy. It looks like a small, sliding away from that previous tradition.''

more...

[54anickel]

47. Dollar Declines on Concern Damage From Rita Will Slow Economy

http://www.bloomberg.com/apps/news?pid=10000103&sid=aWKX1cOrLdSo&refer=us

Sept. 21 (Bloomberg) -- The dollar fell the most in three weeks against the euro and dropped versus the yen on concern Hurricane Rita will add to damage caused by Katrina, damping consumer spending and slowing U.S. economic growth.

The dollar extended losses after Rita was upgraded to the same strength as Hurricane Katrina when the storm slammed the U.S. on Aug. 29. Oil prices climbed and yields on Treasury notes fell as Rita approached Texas and Louisiana. The dollar weakened even after the Federal Reserve raised interest rates yesterday and said the impact of the first storm will be short-lived.

``With the upgrading of Hurricane Rita, the wind has been taken out of the sails for dollar buyers after the Fed's rate increase,'' said David Mozina, a currency strategist in New York at Lehman Brothers Holdings Inc. ``This is drumming up fears that the damage to the economy from Hurricane Katrina will be exacerbated by Rita.''

snip>

The euro's 14-day relative strength index versus the dollar, a measure of the currency's momentum over a given period, was 46.46 after dropping to 36.37 yesterday, the lowest in more than two months. A reading below 30 suggests a reversal of direction.

Traders sold the U.S. currency even after the Fed raised the target rate for overnight loans by a quarter-point to 3.75 percent, the highest in four years. In a statement, the central bank said the U.S. economy faces only a ``near-term'' setback after Katrina.

more on the vulnerable buck...

[UpInArms]

51. Dollar drops on hurricane worries

http://www.marketwatch.com/news/story.asp?guid=%7B4F66E496%2DAECA%2D47A3%2DA575%2D3C2E536951B2%7D&siteid=mktw

CHICAGO (MarketWatch) - The dollar faltered against all of the globe's leading currencies Wednesday, pressured by the impact a strengthening Hurricane Rita was having on oil prices and the U.S. stock market.

With North American trading well underway, the dollar stood down 0.9% against Europe's shared currency from where it was late Tuesday, changing hands at $1.2232 per euro.

The greenback fell 0.8% to 111.08 yen.

The dollar was off 0.7% against its U.K. counterpart, with the pound worth $1.8121.

And, the buck shed a full percent against the Swiss franc, generally considered the "low-risk" currency during economic or political uncertainty. One dollar would buy 1.2686 francs.

...more...

[UpInArms]

99. BoJ Intervention methods and motives

http://www.howestreet.com/mainartcl.php?ArticleId=1556

excerpt:

The Bank of Japan (BOJ) is often referred to as “Federal Reserve East” as it regularly coordinates its monetary policy with the American central bank. Over the last few years, the BOJ has spent considerable resources (trillions of Yen) to support the U.S. Dollar. In early 2003, Japan publicly stated that its central bank would prop up the dollar should it drop sharply following the then upcoming invasion of Iraq. The reason most commonly cited for Japanese intervention in the currency markets (i.e. buying dollars) is that Japan lives and dies by its ability to export goods, and therefore the Yen must be kept competitive with the Dollar and other currencies.

Another motive for BOJ intervention lies with the old phrase: “If you owe the bank $100,000, the bank owns you; but if you owe the bank $100 million, you own the bank.” Of course $100 million is just peanuts considering that Japan holds $700 billion worth of United States Treasury debt. Any hiccup in the U.S. economy and the market value of those Treasury holdings will suffer. Japan’s willingness to accept U.S. treasuries is nothing more than a gigantic vendor finance program!

The final and perhaps least-discussed reason why the BOJ has historically said “How high?” when asked to “jump” by the Fed is the geopolitical situation. As discussed above, from the end of World War II up until today, Japan has been 100% dependant on the United States for its security. This arrangement served both sides well for more than half a century but, as we have shown you, things are beginning to change. A Japan that does not rely on the United States for its security means that the BOJ will no longer feel the need to cooperate with the Fed. As a result, a rearmed Japan will realize that it has an even more powerful Dollar weapon than China (the second largest holder of U.S. Treasuries) does. Eventually, these two Asian central banks will stop accumulating treasuries and possibly begin to unload them, which could trigger a Dollar collapse. Even more threatening to the Dollar is a possible alliance among Asian countries with the desire to form their own regional currency similar to the Euro. While all of these scenarios are just talk, the common denominator among them is a Japan which no longer relies on America for its protection. The bottom line is that the more you hear about the changing role of Japan’s military, the closer we are to a major Dollar devaluation.

...more at link...

[54anickel]

130. Yep, we've been talking about that scenario for quite a while now.

Yet it's funny how it was Powell who first prodded Japan to give up their pacifist ideology. There are all kinds of dots to connect in Asia, and although they want you to think it's all about N Korea and nukes, there's a whole lot more going on.

[UpInArms]

9. Hurricane Rita develops into Category 4 storm

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T071155Z_01_N21441861_RTRIDST_0_WEATHER-RITA.XML

MIAMI, Sept 21 (Reuters) - After lashing the Florida Keys, Hurricane Rita gained power on Wednesday and headed across the Gulf of Mexico on a course that could take it to Texas and dump more rain on Katrina-battered Louisiana.

Rita was upgraded to a Category 3 storm and the National Hurricane Center said it probably would develop into a Category 4 on Wednesday, the same classification as Hurricane Katrina, which devastated parts of Louisiana, Mississippi and Alabama last month.

Rita had sustained winds of 115-mph (185-kph) winds on Wednesday as it headed into the Gulf. The storm hit the Florida Keys but did not get close enough to reach the vulnerable chain of islands with its most destructive forces.

Rita's most likely future track would take it to Texas by the end of the week, raising fears the sprawling storm could bring heavy rains to flooded New Orleans and threaten the recovery of oil production facilities in the Gulf of Mexico.

...more...

[UpInArms]

109. Port of Houston to be closed Thursday and Friday due to Rita

2:11pm 09/21/05 PORT OF HOUSTON TO BE CLOSED THURSDAY, FRIDAY

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.5955844329-843172715&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- The Port of Houston said Wednesday that it will be closed on Thursday and Friday due to the approach of Hurricane Rita. According to the port, 200 million tons of cargo moved through the 25-mile long complex in 2004, with a total of 6,539 vessel calls recorded. The port is ranked second in the U.S. in total tonnage.

[UpInArms]

110. here's a satellite pic of Rita

looking a lot like Katrina did

[AnneD]

125. Schools in Houston closed today and tomorrow

We have been battening down the hatches all day. I still think we will only get wind and water (looks like we will be on the dirty side). Parents have been streaming in all day picking up kids. Keep us in your thoughts and prayers (if you are so inclined). I'll post when I can. Look like we'll be riding the bear.

[UpInArms]

135. take care AnneD!

You (and all the other good folks down there) are definitely being held in our hearts)

:grouphug:

[UpInArms]

121. Rita now a category 5 hurricane; winds at 165 mph -- NHC

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.6705125231-843187934&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Rita has been upgraded to a category 5 hurricane, according to the latest update from the National Hurricane Center, with winds of 165 miles per hour.

[UpInArms]

10. Treasury will not give details on 10-year holdings

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-20T213540Z_01_N20413309_RTRIDST_0_FINANCIAL-TREASURY-NOTES.XML

CHICAGO, Sept 20 (Reuters) - The U.S. Treasury Department will not give details of the cash position reports it received on Tuesday related to expiring 10-year Treasury note futures, a department official said.

"The information we receive is commercially sensitive. We never disclose it," the official said.

The Treasury on Sept. 14 called for entities holding $2 billion or more in the 10-year notes maturing in August 2012 as of Sept. 12 to report their positions on Sept. 20.

The August 2012 notes are the cheapest to deliver (CTD) against Chicago Board of Trade September 10-year futures which are due to stop trading on Wednesday.

The Treasury's call for information followed a rocky expiration of June 10-year note futures, when low supplies of the CTD cash notes led to charges of an artificial squeeze.

U.S. Treasury Secretary John Snow said in a television interview on Sept. 16 that the department is attempting to understand "market dynamics."

...more...

[WhiteTara]

61. you would think that this information

would be something they have to give out. Isn't this our government and they are our public SERVANTS? Snow follows a long line of pukes who won't give information. I'm thinking sensitive means that their collective asses are in a crack.

[UpInArms]

68. Treasuries strengthen on energy woes as Rita looms

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T140827Z_01_N21471156_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Sept 21 (Reuters) - U.S. Treasury debt prices climbed on Wednesday as the prospect of another major hurricane shutting in oil output in the Gulf of Mexico again stoked fears soaring energy costs will take a toll on consumer spending.

Gasoline futures prices jumped and crude oil soared above $68 per barrel as Hurricane Rita was upgraded to a Category 4 storm and appeared to be headed toward oil and natural gas production facilities along the Texas coast.

Slower economic growth could influence the Federal Reserve to back off of its 15-month-old monetary policy tightening campaign, keeping a lid on interest rates and debt yields.

"Consumers have definitely already started to feel the pinch and if this hurricane does hit that region directly you could easily see gasoline up another $1 to the gallon very quickly," said Adam Brown, co-head of global U.S. Treasury trading at Barclays Capital.

"Psychologically and also money-wise it could have a very big impact on consumer behavior," he said.

...more...

[UpInArms]

72. Check-Kiting Continues: Fed adds reserves via bill pass

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T144009Z_01_N21100566_RTRIDST_0_MARKETS-FED-BILLPASS-URGENT.XML

NEW YORK, Sept 21 (Reuters) - The Federal Reserve said on Wednesday it added permanent bank reserves by buying U.S. Treasury bills maturing between Jan. 12, 2006 and Mar. 16, 2006.

No issues were excluded. Details of the coupon pass are available on the New York Fed's Web site: http://www.newyorkfed.org/markets/permanent.html

Fed funds last traded at 3.75 percent, at the Fed's target for the rate on overnight loans between banks.

Permanent Reserves by buying U.S. Treasury bills????

[54anickel]

89. Buyer of last resort? Beats the embarassment of leftovers at the

auction.

Think of it as one of those all you can eat for 1.99 joints, where people leave just about all of the first serving on the plate. A buck's worth was more than they could stand. :evilgrin:

Think that's from an old Huey Lewis tune - Bad is Bad, or something like that.

[UpInArms]

115. Treas Undersecretary learning how to yodle SnowJobs showtunes

Adams: Snow to press China exchange rate flexibility at G7

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.6251343056-843178544&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Treasury Secretary John Snow will call for "greater exchange rate flexibility" from China at Friday's meeting of finance ministers and central bankers from the world's seven richest nations, Treasury Undersecretary Tim Adams said in a prepared statement Wednesday. Adams also warned that energy supply disruptions may put a damper on world growth, and called for Europe and Asia to do more to spur demand-led growth.

3:00pm 09/21/05 TREASURY'S ADAMS: ENERGY DISRUPTIONS MAY DAMPEN WORLD GROWTH

3:00pm 09/21/05 ADAMS: SNOW TO PRESS EXCHANGE RATE FLEXIBILITY AT G7 MEETING

3:00pm 09/21/05 ADAMS: MORE DEMAND-LED GROWTH NEEDED FROM EUROPE, ASIA

3:00pm 09/21/05 ADAMS: G7 SHOULD ALLOW POOR COUNTRIES TO CANCEL DEBT

[UpInArms]

11. U.S. consumer confidence gauge falls (again) - report

http://today.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=URI:urn:newsml:reuters.com:20050920:MTFH40428_2005-09-20_21-17-31_N20415532:1

NEW YORK, Sept 20 (Reuters) - The confidence of American consumers fell again last week, weighed down by high gasoline prices and the destruction caused by Hurricane Katrina on the Gulf Coast, ABC News and the Washington Post said on Tuesday.

Their Consumer Comfort Index fell to -23 in the week ending Sept. 18 from -20 the prior week.

The index is a four-week moving average. Three of the four weeks in the most recent reading reflected the period following the hurricane.

All three components of the index fell in the latest week. The percentage of Americans with a positive view of the national economy fell to 30 percent from 32 percent.

The number of consumers with positive views of their personal finances dropped to 55 percent from 56 percent and the percentage of consumers who thought the buying climate was good was 31 percent, down from 32 percent a week ago.

...more...

[UpInArms]

118. US CEO Outlook Index drops to 88.2 vs 95.9 pre-Katrina

3:23pm 09/21/05 U.S. CEO OUTLOOK INDEX DROPS TO 88.2 VS. 95.9 PRE-KATRINA

3:16pm 09/21/05 U.S. CEOS SAY KATRINA WILL CUT GROWTH, CAPITAL SPENDING

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.6468701042-843183039&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- Chief executives officers of major U.S. corporations say Hurricane Katrina is having a "significant, but not overwhelming" impact on their business, the Business Roundtable said Wednesday. In a special survey, the CEOs' economic outlook index fell to 88.2 from 95.9 in a survey conducted just before the storm hit. The biggest impact will be on capital spending, with 40% now saying they'll increase spending in the next six months, down from 54% before the storm. Sales growth is expected by 74% of CEOs, down from 83% before the storm. Sixty-five percent of them said Katrina would have a negative effect on their business from with higher energy prices and damage to infrastructure.

[JNelson6563]

12. Great 'toon today Ozy!

Hoo-boy, looks like we'e in for a bumpy ride. Of course what we are about to suffer with new increases in gas prices will pale in comparison to how things are going to go when winter sets in the heating bills start coming.

I guess it's a good news/bad news thing. We're going to be totally screwed but the Rethugs are done for.

Julie

[UpInArms]

29. Mornin' Julie!

Looks like this winter is definitely going to be a painful one.

Oil markets rise with the latest hurricane. But the real impact will be felt this winter

http://www.time.com/time/business/article/0,8599,1107430,00.html

Get ready for a chilly winter at home. As the increasingly high winds of Hurricane Rita tore through the Gulf of Mexico Tuesday, petroleum prices soared in expectation that America's already battered oil sector could take another direct hit. The rise was tempered by an offer by OPEC to release an extra 2 million barrels a day on world markets, which helped prices to ease slightly on the New York Mercantile Exchange—where the cost of a barrel of light crude had risen by more than $4 Monday, the biggest one-day increase in history.

Still, the long-term costs for consumers are almost certain to increase. The problem is a lack of U.S. refining capacity, which means that even if extra petroleum is available, there may be no way to transform it into gasoline and other products like home heating fuel. The result: utilities in many parts of the U.S. are warning customers that winter heating costs could be up to 70% higher than last year's levels. In the event Rita hits Texas, the largest oil refiner in the U.S., disruption could be serious. That state alone has 26 refineries, largely along the coast, with a capacity of roughly 4.6 million barrels a day, or somewhat more than one quarter of the U.S. total.

...more...

[ozymandius]

37. We should all hang together.

Or we will surely hang seperately.

Democrats now have a mountain of data and an endless supply of rhetorical resources to demonstrate why Republicans are bad for everything that decent people care about. Remember the 2002 midterms? How often did we see and hear ads about Democratic politicians crowing about "working with President Bush"?

We now know the perils of working with Bush and the fundie Republican corporatists: Dems lose elections and we collectively lose our country.

The Rethugs are done for. No doubt about that. One fundamental truism needs to be forged into a popular meme - Democrats are historically tasked with correcting Republican mismanagement. We need some real political and managerial talent to clean up the mess that lays before us.

[UpInArms]

13. AAA avg retail gasoline price up 48.7% vs yr ago

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.3318328125-843118480&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- AAA said Wednesday that the average U.S. retail price of regular unleaded gasoline stood at $2.764 a gallon, down from $2.788 a gallon on Tuesday but up 48.7% from a year ago. The automobile association said the average price of diesel fuel stood at $2.823 a gallon, down slightly from $2.831 a gallon on Tuesday. The average price of diesel fuel was $1.931 a gallon a year ago. October unleaded gasoline futures were last up 7.14 cents, or 3.6%, at $2.048 a gallon on fears about the impact of Hurricane Rita on the already-ravaged Gulf of Mexico.

[UpInArms]

14. Delta - Bosses learn of job cuts today

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050921/BIZ01/509210329

Delta Air Lines, during a meeting in Atlanta today, will tell its managers how many jobs could be lost and what kinds of pay and benefit cuts could be coming according to sources familiar with the situation.

The Atlanta-based carrier will cut pay of nonunion workers 7 percent to 15 percent, depending upon the position, sources said.

In addition, benefits such as flight privileges, health care and 401(k) benefits could be affected, the sources said.

Some front-line workers could get smaller cuts to help reduce turnover as the airline heads into the busy holiday travel season. But most employees will see some sort of reduction as Delta tries to restructure under bankruptcy - the company filed for Chapter 11 protection Sept. 14.

In addition, an overall figure for job cuts has been established, the sources said, but they did not have details.

The airline already is planning to cut 26 percent of its capacity at Cincinnati/Northern Kentucky International Airport on Dec. 1, a move that could result in as many as 1,000 job cuts, most of them local. Of that, 350 jobs could come from Comair, Delta's Erlanger-based regional subsidiary.

...more...

[UpInArms]

15. Crude above $68, natgas hits record

http://www.marketwatch.com/news/story.asp?guid=%7B2F5939B1%2D1C2D%2D43A3%2D9D82%2D61E8135D1AC9%7D&siteid=mktw

NEW YORK (MarketWatch) -- Crude-oil futures climbed above $68 a barrel in early Wednesday trade and natural gas touched a fresh alltime high as Hurricane Rita gathered strength and headed toward the Gulf of Mexico and Texas coast, home to about a fourth of U.S. refining capacity.

November-dated crude was last up $1.66 to $67.86 a barrel in electronic trade in its first day of trade as the front-month contract, having earlier risen to as high as $68.

October natural gas futures climbed 6.28 cents, or 5%, to $13.12 per million British thermal units, setting a new record.

October unleaded gasoline futures were up 10 cents, or 5.1%, at $2.08 a gallon, while October heating oil futures climbed 6.12 cents, or 3%, to $2.073 a gallon.

The National Hurricane Center said Rita has become a Category 4 hurricane and will be taken into the open Southeastern Gulf of Mexico during the next 24 hours.

...more...

[54anickel]

23. OPEC powerless as oil keeps climbing

http://biz.yahoo.com/rb/050921/energy_opec.html?.v=2

VIENNA (Reuters) - OPEC ministers left Vienna on Wednesday powerless over oil prices that kept climbing despite the cartel's commitment to offer up every last barrel of its spare production to reassure consumers.

"We have done everything we can. This is the time for others to do what they can," Libya's Oil Minister Fathi Omar Bin Shatwan told Reuters ahead of his departure.

The deal, struck on Tuesday, means the 11-member Organization of the Petroleum Exporting Countries is putting its remaining two million barrels a day of crude on the block, with most of the extra oil held by top exporter Saudi Arabia.

The agreement has been welcomed by the European Union and Britain's finance minister Gordon Brown, among OPEC's harshest critics in the run-up to the meeting. But with oil edging further above $67 a barrel, OPEC's argument that gaps in the global refining network were to blame gained authority.

Hurricane Rita is accelerating toward the Gulf of Mexico and threatening U.S. refineries spared by Hurricane Katrina last month. The market fears a shortage of gasoline and heating fuel in the world's biggest consumer, the United States.

more...

[54anickel]

16. Down The Rathole (Mogambo)

http://www.321gold.com/editorials/daughty/daughty092105.html

- Through the peephole of the Mogambo Bunker Of Impenetrable Steel (MBOIS), I see that the Federal Reserve only increased total credit by $1.3 billion last week. While $1.3 billion is probably chump change to a big shot like you and the spendthrifts at the Fed and Congress, it is still a big chunk of change to me. More interesting, of course, is that the Fed is now steadily monetizing federal debt, and last week they created enough money to buy up $2 billion in government debt! Not much, but like my parents said when I got a lousy stick of chewing gum for Christmas, it is the thought that counts, not the amount.

Spinning the periscope around, we can see what the stupid banks were up to, and if you want to know why I call them "stupid banks", then spend a few minutes reading economic history and you will see that all economic crises were caused by the banks acting stupidly for one reason or another, by which I usually mean "because the government acted stupid", by which I mean "they spent so damned much money and incurred so damned much debt that the economy was destroyed." So, now that you are scared of the banks and are hiding under your bed, that is why you are peeking out and whimpering, "What in the hell are they up to now?"

Well, their little sandboxes got filled with some new sand and new toys, as the Required Reserves in the banks abruptly fell to $42.4 billion, even though their Loans/Leases book increased by $25 billion to $5,312 billion. According to these figures, the Reserve Ratio is, and hold onto your hats, now a measly 0.08%! The standard, textbook example ratio is 10%! And here they are at less than 1%! They have no cushion against losses of any kind! Wow! What guts! What nerve! What stupidity!

Since I am too aghast for words, I will make a very rude gesture to indicate that this means that the Fed is getting more and more desperate to cram money into this ridiculous economy, and is giving the banks unprecedented degrees of freedom to loan out every nickel they can get their grubby little banker hands on, all in a desperate attempt to keep this bankrupt economy going for a few more hours, or days, or weeks. Maybe months. Maybe it will even work. But I seriously, seriously, and you can see from my face how serious I am, doubt it.

But they are pulling out all the stops. Mark Lundeen, an independent economist of sorts, reports that last Thursday "The Fed added to the Repo pool 3 times! Unheard of!!!! Crazy!!! Lotsa worried men in suits buzzing round Uncle Alan."

more...

[UpInArms]

17. Morgan Stanley 3rd-qtr net falls 83 pct on charge

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T122808Z_01_N21461339_RTRIDST_0_FINANCIAL-MORGANSTANLEY-EARNS-UPDATE-1.XML

NEW YORK, Sept 21 (Reuters) - U.S. investment bank Morgan Stanley (MWD.N: Quote, Profile, Research) on Wednesday said third-quarter profit fell 83 percent as a $1 billion charge from the sale of its aircraft-leasing business offset higher revenue from increased banking and trading.

The New York-based company's net income fell to $144 million, or 13 cents, in the quarter ended Aug. 31, from $837 million, or 76 cents, in the year-earlier period.

Excluding the charge and other one-time items, Morgan Stanley's results were much improved, as income from continuing operations rose 36 percent to $1.17 billion, or $1.09 a share. Net revenue rose 29 percent to $6.95 billion, the highest since the second quarter of 2000.

Analysts, on average, expected the securities and credit card company to earn $1.05 a share on revenue of $6.3 billion, according to Reuters Estimates.

...more...

[54anickel]

18. Share buybacks rise 92% in US

http://news.ft.com/cms/s/793d7cc6-29f6-11da-b890-00000e2511c8.html

snip>

Standard & Poor’s, the index provider, said buyback activity in the second quarter grew 92 per cent compared with the same period last year for companies in the S&P 500 index, the most widely used gauge for the world’s largest stock market.

S&P 500 buybacks totalled $82bn in the second quarter, from $42bn in the second quarter of last year.

Companies buying back their own stock also appear to be reducing their share count at a higher rate than in the past by buying back more stock than they issue, S&P said. This has the potential to boost earnings per share and represents a shift from previous quarters when buybacks would typically be used as a countermeasure to the issuance of stock options to employees and management.

Howard Silverblatt, equity market analyst at S&P, said: “ seeing an increase in companies actually reducing their share count, which directly benefits existing shareholders... companies are actively trying to reduce their share count to assist in boosting earnings per share, as growth and comparisons become more difficult.”

more...

[ozymandius]

40. Just yesterday we saw Goldman Sachs insulating itself.

Pumping the market with a huge $7.1 billion stock buyback. One has to wonder where is this money going and for what?

[UpInArms]

44. IIRC the hedge funds are pressuring

the corps to do all these buybacks - will go and look for that article

[UpInArms]

46. here's an article

(not the one I initially read, but says similar things)

http://www.thestreet.com/_googlen/markets/emmatrincal/10241193.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA

In the latest effort by an activist hedge fund to rein in acquisitive managers, Atlantic Investment Management urged Sonoco Products' (SON:NYSE - commentary - research - Cramer's Take) board to consider a one-time $10 million stock buyback.

The fund is seeking either a Dutch tender offer or an accelerated share-repurchase plan, and wants them carried out as soon as possible. Atlantic Investment's Alexander Roepers, with 5.6% of Sonoco's outstanding shares, is the packaging company's second-largest shareholder.

"Shareholders have the right and opportunity to express their opinion," said Alan Cecil, a vice president of investor relations at the Hartsville, S.C.-based global packaging company. He had no further comment.

<snip>

(and here's where it actually hurts those corporations that do this)

A buyback would push up the debt-to-capital ratio. In short, "It could hurt the company," says Manuel.

...more at link...

[UpInArms]

48. here's some more "shareholder" pressure

9:42am 09/21/05 ANGELICA SAYS BUYBACK IMPRUDENT NOW DUE TO DEBT, FUEL COSTS

9:41am 09/21/05 ANGELICA RESPONDS TO BUYBACK REQUESTS FROM HOLDERS

9:41am 09/21/05 ANGELICA WILL CONSIDER A BUYBACK IN THE FUTURE

9:42am 09/21/05 ANGELICA SAYS BUYBACK IMPRUDENT NOW DUE TO DEBT, FUEL COSTS

9:40am 09/21/05 ANGELICA'S O'HARA CONTINUES AS CEO

9:41am 09/21/05 ANGELICA SAYS BUYBACK NOW IS `IMPRUDENT'

9:39am 09/21/05 ANGELICA NAMES STEVE O'HARA CHAIRMAN

9:40am 09/21/05 ANGELICA'S O'HARA SUCCEEDS HUBBLE AS CHAIRMAN

and just what and who is "Angelica"

Angelica Corporation Website Annual Report
424 South Woods Mill Road Phone: [phone]
Chesterfield MISSOURI 63017

Fax: [phone]


Angelica Corporation. The Group's principal activity is to provide outsourced linen management services to the United States healthcare industry. The Group has developed a comprehensive service offering that allows healthcare providers to outsource some or all aspects of their linen management needs. During 29-Jan-2005, the Group provided laundry services, linen, and apparel rental and on-site linen management services to its customer base of approximately 4,500 healthcare providers located in 24 states. It also provided linen management services to customers in the hospitality business. In 2004, the Group processed over 620 million pounds of linen for its customers. As of 30-Jul-2005, 6,940 service associates delivered the services customers through a network of 34 laundry plants and fleet of 600 delivery vehicles. In 2004, the Group acquired laundry business assets of Duke University Health System Inc and Royal Institutional Services Inc and The Surgi-Pack Corporation on 22-Mar-2005.

[UpInArms]

19. Laff for the Day: Can new lineup of big SUVs revive GM?

http://www.detnews.com/2005/autosinsider/0509/21/A01-322175.htm

WARREN -- General Motors Corp. on Tuesday unveiled the most important new vehicles in its effort to turn around its troubled North American operations.

But by betting big on a redesigned fleet of 12 full-size SUVs, including the Chevrolet Tahoe and Cadillac Escalade, GM is trying to buck a consumer shift toward smaller, more fuel-efficient cars and crossover vehicles.

Rising gas prices have hit the large SUV segment hard this year, with U.S. sales down 11 percent through August.

Yet GM, the biggest player in the full-size SUV market, expressed confidence that its new lineup will invigorate a segment that has been steadily shrinking.

"It may contract, but it's not going away," said Mark LaNeve, GM's head of sales and marketing. "This is a very large, very important and very profitable market."



...more...

[hatrack]

32. Rhetorical question, right? Short answer - no.

If it's still the same old tired GM Shitwagon getting 14 mpg, you'd get more "invigoration" pouring sea water on a lemon tree.

[ozymandius]

53. Question: how many must they sell to make a product line profitable?

Ford has pulled their Perversion* from production because they needed to sell 25,000 of them to break even. In the first year, Ford sold barely 12,000. It makes me wonder what GM is thinking because in my area of Atlanta (where big cars like SUVs constitute about 60% of vehicles driven) these behemoths are sitting on the lot. Lots of sales up where I live.

So what is GM thinking? Perhaps the entire board has been taken over by sentient lemmings, salivating over the prospect of jumping off a cliff of unsold cars.

*In the Ozy household, we have nicknames for behemoth automobiles. They are as follows:

Ford Excursion = Ford Perversion
Ford Expedition = Ford Pollution
Ford Explorer = Ford Rollover
Hummer = Dummer

[UpInArms]

57. I would think that they would need

to sell all of them to be profitable :eyes:

Love your names for them, Ozy!

I have always used the term "UAVs" instead of "SUVs" (Urban Assault Vehicles)

and our household names are:

Recreation Vehicles (RV) = REs (wretched excess)
Ford Excursion = Ford is Curseds
Ford Expedition = Ford Exhibition
Ford Explorer = Ford Exploder
Hummer = Penis Extenders

[hatrack]

59. For Excursion, I always preferred the Ford Excrescence

Can't say I invented it - I only wish I had . . .

[amandabeech]

100. I call them "SAV's".

"Suburban Assault Vehicles." When I lived in the Md. suburbs of D.C., I always had visions of squads of these things trying to evac out of D.C. by attempting to climb the West Virginia mountains off-road. And of course all getting stuck or turning over or just falling back down the mountain. The world would be a better place after that.

[UpInArms]

20. Conrad Black's right-hand man pleads guilty to $32m fraud

http://www.guardian.co.uk/business/story/0,3604,1574485,00.html

David Radler, the former right hand man of disgraced media tycoon Conrad Black, pleaded guilty to fraud charges yesterday in a Chicago courtroom.

The plea could prove a pivotal moment in the long-running investigation into the alleged looting of Hollinger International, the newspaper group that until last year owned the Daily Telegraph. "This is the first step in making amends for what has taken place," Mr Radler's lawyer, Anton Valukas, said after the hearing.

Mr Radler had been a business partner of Lord Black for 35 years and was the financier behind the flamboyant former press baron. But there were clear signs of a crack in the relationship last month when Mr Radler was indicted on seven fraud charges, each carrying up to five years in prison.

The US attorney general, Patrick Fitzgerald, said at the time that Mr Radler would plead guilty and had agreed to cooperate with further investigations. Federal investigators disclosed in March that they were conducting a fraud inquiry into Hollinger, Mr Radler and Lord Black.

There were reports in the US media at the weekend that Lord Black could in turn be planning to point the finger of blame firmly at Mr Radler. According to the Wall Street Journal, Lord Black has been building a defence strategy arguing that he had not been a hands-on manager and that any alleged misdeeds were down to Mr Radler.

<snip>

Lord Black and Mr Radler began their business relationship by acquiring a small newspaper in Quebec in 1969. They built an empire of more than 340 titles, including the Chicago Sun-Times, the Daily Telegraph and the Jerusalem Post. While Lord Black hobnobbed in London, Mr Radler worked behind the scenes in the company's offices in Vancouver and Chicago.

...more...

When will the wheel turn to Richard Perle???

[UpInArms]

21. Glaxo Settles U.S. Fraud Charges - Pays $150 Million Fine

http://www.nytimes.com/2005/09/21/business/21glaxo.html

WASHINGTON, Sept. 21 (AP) - GlaxoSmithKline has agreed to pay more than $150 million to settle fraud accusations over the pricing and marketing of two antinausea drugs, the Justice Department said on Tuesday.

The company, according to the government, engaged in an effort to inflate the price of the two drugs, Zofran and Kytril, for the federal Medicare and Medicaid programs, which reimburse health care providers based on the manufacturers' prices. The drugs are used mainly to counteract nausea brought on by chemotherapy and radiation.

But according to the Justice Department, the company charged health care providers less for the drugs, knowing that the providers would be able to pocket the difference.

GlaxoSmithKline, which is based in London and has its American offices in Philadelphia and North Carolina, did not admit wrongdoing as part of the settlement.

...more...

[UpInArms]

79. Legg Mason settles SEC mutual fund charges

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T154810Z_01_N21111426_RTRIDST_0_FINANCIAL-LEGGMASON-SEC-UPDATE-1.XML

WASHINGTON, Sept 21 (Reuters) - Broker-dealer Legg Mason Wood Walker Inc. (LM.N: Quote, Profile, Research) agreed to pay $1 million to settle charges it improperly processed thousands of mutual fund orders after regular trading hours, regulators said on Wednesday.

According to the U.S. Securities and Exchange Commission, between September 2002 and October 2003, the Baltimore-based company processed over 18,000 mutual fund orders after the market close at that day's net asset values.

Trades occurring after the market close are supposed to be executed at the next day's price.

Legg Mason Wood Walker, or LMWW, neither admitted nor denied the charges in settling. The company also agreed to a censure and to take remedial actions, the SEC said in a statement.

...more...

[UpInArms]

91. Springer Investment to pay $50K to settle SEC charges

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.5092265162-843155917&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission said Wednesday that Springer Investment Management Inc. has agreed to pay a $50,000 civil penalty to settle charges that it overvalued a private security held by the Apollo Fund, a hedge fund it managed. The SEC said in a statement that the overvaluation allowed the Sacramento, Calif.-based company to "paint a deceptive picture of the fund's performance, minimizing the impact of the fund's significant decline." According to the SEC, Springer manages over $30 million in investor funds.

[54anickel]

22. China warns on wage gap 'unrest'

http://news.bbc.co.uk/1/hi/business/4266964.stm

snip>

The Ministry of Labour and Social Security says income disparity is at "yellow alert", its second-most serious level, and may reach "red alert".

"If it continues this way for a long time, the phenomenon may give rise to various forms of instability," it said.

snip>

However, it also consisted of those who gained wealth through collusion with officials in power-for-money deals, or because they happened to work in monopoly companies or through stealing state assets.

The Ministry of Labour and Social Security report urged the government to push forward reform of property rights to state assets.

It also called for the break up monopolies and establishment of a robust social security net.

more...

Ironic in a way - China is talking about "doing" many of the things Repukes are trying to "undo" here. Repukes can't exactly go back to the old boogie men of "Communism/Socialism" now that China's our banker, can they?

[UpInArms]

26. Repukes can't exactly go back to the old boogie men

of "Communism/Socialism" now that China's our banker, can they?

Uh...Yeah!

Made in China: Your Job, Your Future, Your Fortune

http://abcnews.go.com/GMA/print?id=1142148

excerpt:

As the economic picture in China transforms, so does the cultural landscape.

An old military factory that used to turn out uniforms, is now producing the Chinese edition of Seventeen magazine for a generation that relates to American values.

"They believe in self-expression," said Huang Hung, chief executive officer of China Interactive Media group. "They believe in individuality. They believe in pursuit of happiness for themselves."

At a trendy nightclub in Shanghai, the DJ who used to buy his favorite music on the black market growing up, now makes a living spinning hip hop above packed dance floors.

Slowly, the American Dream is becoming the Chinese Dream, but not everyone is comfortable with the transformation.

"We are dealing with a takeover attempt by the most powerful communist dictatorship in the world," James Woolsey, former director of the CIA, recently told Congress.

...more...

hmmmm.... James Woolsey - PNACer ex-CIA ....

[54anickel]

33. HA! Well, I guess they can. I watched the segment yesterday on GMA

about this. At the very end the anchor said something about it being a communist country. Something about people just put up with and tolerate the gov't, the same as we do here. It was a strange line - think this is what he was summarizing. From your post -

"After the Tiananmen massacre, the Chinese leadership said to its people, 'OK, here's the deal folks. You can do whatever you want. You can start whatever business you want. You can say in private whatever you want. Just let us rule," Friedman said.

Too bad they don't have the video on their sight - this "transcript" doesn't do it justice.

[UpInArms]

54. Ross calls on U.S. Congress to stop "China-bashing"

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B693442E5-3E04-48A9-BC0A-6224E75C80C6%7D&

NEW YORK (MarketWatch) -- Turnaround specialist Wilbur Ross on Wednesday reiterated his plans to move into the auto parts business in a talk given at the Dow Jones Private Equity Conference and said the industry appears to be ripe for restructuring. He's "praying" that gas prices don't go too much higher and interest rates don't increase excessively. He also called on the U.S. Congress to "stop China-bashing," overhaul the corporate tax code and provide healthcare in order to make U.S. companies more competitive. He expects the current trend of globalization to continue.

[54anickel]

62. In other words, relieve the corporations of all those silly "social"

expenses - put them on the backs of the tax payers so they can run in pure profit mode. I suppose he promises those profits will trickle-down to the public in higher wages too. Seems the American working class is indeed in a race to the bottom, or at least the middle...our living standards must come down, while China et al make their way up. Hoepfully we meet in the middle. But with corporate globalization in control, we'll probably all end up in some sort of corporate servitude. :-(

Sorry, I'm feeling especially pessimistic today.

[UpInArms]

75. Former defense sec. urges greater cooperation with China

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.3971779051-843132417&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Former Defense Secretary William Cohen, speaking at the Dow Jones Private Equity Conference Wednesday, called China an increasingly important trading partner with the U.S. "We need to engage them, collaborate, compete and challenge them," he said. "We have to work with them."

"have to"

hmmmm....

[UpInArms]

25. "Seasonally Adjusted" Home Mortgage Info

http://today.reuters.com/investing/financeArticle.aspx?type=economicNews&storyID=2005-09-21T110047Z_01_NAT001802_RTRIDST_0_ECONOMY-MORTGAGES-URGENT.XML

NEW YORK, Sept 21 (Reuters) - Applications for U.S. residential mortgages rose last week as higher interest rates failed to deter borrowers from refinancing their existing home loans, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its index of total mortgage applications for home purchase and refinancing loans rose 1.5 percent to 772.2 in the week ended Sept. 16. The index fell 1.4 percent in the previous week.

The MBA's purchase index fell 2.6 percent to 500.3, reversing the previous week's 2.9 percent gain.

The refinancing index rose 7.0 percent to 2,353.7, more than offsetting the previous week's 6.7 percent loss.

The indexes were all seasonally adjusted, the MBA said.

...more...

[WhiteTara]

65. eating your house syndrome has quickened

doesn't matter if the rates are higher, they still need to eat larger and larger chunks.

[UpInArms]

27. G7 likely to keep pressure on China over yuan

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2005-09-21T060445Z_01_SCH121732_RTRIDST_0_PICKS-GROUP-CURRENCIES-DC.XML

LONDON (Reuters) - Good effort. But must do better.

That's the likely message to China when finance ministers and central bankers from the Group of Seven industrialized nations meet in Washington this week.

The rich nations' club has been calling for more exchange rate flexibility for nearly two years now -- code for Beijing to adjust upwards its yuan currency's value against the dollar.

China responded on July 21 when it dropped an 11-year-old peg to the dollar and revalued the yuan by 2.1 percent to 8.1 per dollar, opening the door for further appreciation.

The G7 welcomed the move then but U.S. policymakers have been frustrated that the yuan has since been allowed to rise by just 0.23 percent. That's not enough, they argue, to ease the growing trade imbalance between the two countries.

...more...

[UpInArms]

30. IMF urges Bank of Japan to keep easy money policy

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T130848Z_01_WAT003954_RTRIDST_0_ECONOMY-IMF-JAPAN.XML

WASHINGTON, Sept 21 (Reuters) - Japan's economy is set to grow more than a percentage point faster in 2005 than forecast just five months ago but the Bank of Japan should retain its zero interest rate policy for now, the IMF said on Wednesday.

In its twice-yearly World Economic Outlook, the International Monetary Fund said Japanese gross domestic product was now likely to advance 2 percent both this year and next. It forecast growth of just 0.8 percent in April.

Despite a more robust economy, the IMF said the Bank of Japan should maintain its ultra-loose monetary policy -- whereby it keeps interest rates at zero while flooding the market with new money.

"Until deflation is decisively beaten, it is important that the Bank of Japan maintain its very accommodative monetary policy stance," the IMF said. "A premature end to the existing quantitative easing framework would endanger the progress that has been made in tackling deflation in recent years."

The fund said Japanese deflation -- or the falling consumer prices that have dogged Japan's economy for a decade, causing households to delay spending -- is set to ease next year.

...more...

[54anickel]

34. Is that recommendation for the interest of Japan, or the US buck?

Inquiring minds and all.

[UpInArms]

36. my first inclination is

toward the buck :eyes:

[UpInArms]

117. U.S. to tell G7 Katrina economic drag is temporary

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T191219Z_01_WBT003859_RTRIDST_0_ECONOMY-TREASURY-ADAMS-URGENT.XML

WASHINGTON, Sept 21 (Reuters) - The United States will suffer a "noticeable but short-lived" impact from Hurricane Katrina, a senior U.S. Treasury official said on Wednesday as he outlined the U.S. position ahead of Group of Seven finance ministers' meeting.

But Timothy Adams, undersecretary for international affairs, made clear the key message will be that the United States wants other G7 members to focus on boosting their growth rates to help correct big U.S. trade deficits.

"What is needed is not less growth in the U.S., but more engines of growth from more countries and new reforms to appreciably boost potential growth rates," Adams said in prepared remarks.

[UpInArms]

28. IMF raises 2005 forecast for China (growth) to 9 percent

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T130742Z_01_WAT003952_RTRIDST_0_ECONOMY-IMF-CHINA.XML

WASHINGTON, Sept 21 (Reuters) - The International Monetary Fund on Wednesday raised its 2005 growth forecast for China, the world's fastest-growing economy, and advised Beijing it may need to tighten monetary policy if investment growth rebounds.

In its twice-yearly snapshot of the world's economies, the IMF said Chinese growth was now poised to hit 9 percent this year, up from 8.5 percent predicted in April.

In 2006, the fund expects China's economy to grow 8.2 percent, again up from the IMF's April outlook of 8 percent.

"The expansion in China has continued to exceed expectations," the IMF said in its updated World Economic Outlook report.

...more...

[UpInArms]

31. pre-opening blather

9:13AM: S&P futures vs fair value: -3.1. Nasdaq futures vs fair value: -4.0.

9:00AM: S&P futures vs fair value: -3.3. Nasdaq futures vs fair value: -6.0. Futures trading heads further south as crude (+$1.65 $67.81/bbl) continues to rise, setting the stage for the cash market's lower open. A bevy of earnings warnings has also contributed to the negative bias, but look for influential pockets of relative strength in the likes of Qualcomm (QCOM 43.88 +0.46), which boosted its fiscal Q4 EPS guidance, Intel (INTC 24.86 +0.38), which was upgraded to Buy from Neutral at Merrill Lynch, and FedEx (FDX), which handily beat fiscal Q1 consensus estimates and raised its FY06 outlook...

8:30AM: S&P futures vs fair value: -3.3. Nasdaq futures vs fair value: -6.0. Futures trading continues to suggest a lower start for the cash market, as crude's steady increase (+$1.40 $67.57/bbl) gives traders reason to extend the bearish bias that arose yesterday afteroon. On the other side of the aisle, though, reassuring earnings reports from Morgan Stanley (MWD) and FedEx (FDX), along with analyst upgrades of Nucor (NUE), Southwest Airlines (LUV), and Intel (INTC), have acted as sources of support ..

8:00AM: S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: -3.5. The cash market is poised for a lower open as crude's early1.8% uptick (to $67.39/bbl), driven by worries over Hurricane Rita's path toward Texas, and ongoing concerns about the pace of consumer sepnding in the face of high energy prices and rising interest rates, is weighing on sentiment

[UpInArms]

35. 9:34 EST LaLa Land opens with a resounding THUD

Dow 10,439.33 -42.19 (-0.40%)
Nasdaq 2,124.12 -7.21 (-0.34%)
S&P 500 1,219.05 -2.29 (-0.19%)
10-Yr Bond 4.187 -0.56 (-1.32%)

NYSE Volume 71,764,000
Nasdaq Volume 70,620,000

[UpInArms]

41. 9:44 EST still falling

Dow 10,430.49 -51.03 (-0.49%)
Nasdaq 2,118.82 -12.51 (-0.59%)
S&P 500 1,216.77 -4.57 (-0.37%)
10-Yr Bond 4.191 -0.52 (-1.23%)

NYSE Volume 172,409,000
Nasdaq Volume 154,407,00

[ozymandius]

43. THUD getting thicker

9:45
Dow 10,428.18 -53.34 (-0.51%)
Nasdaq 2,118.12 -13.21 (-0.62%)
S&P 500 1,216.33 -5.01 (-0.41%)
10-Yr Bond 41.92 -0.51 (-1.20%)
NYSE Volume 183,469,000
Nasdaq Volume 164,520,000

[UpInArms]

38. Gold trading at $471.30 ounce

9:38am 09/21/05 DEC GOLD UP $1.30 AT $471.30 AN OUNCE

(adding link and blurb on edit)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.4060521065-843134455&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) - Gold futures climbed back above $470 an ounce in morning dealings, after falling more than $1 on Tuesday. December gold was last up $1.40 at $471.40 an ounce. From here, prices may see some "backing and filling but overall, these markets remain healthy," said Dale Doelling, chief market technician at Trends In Commodities. "If the recent dollar rally stalls and turns south, this would certainly underpin the precious metals markets," he said. Metals indexes mirrored gold's strength Wednesday, with the CBOE Gold Index ($GOX) adding 2.2% to trade at 99.64.

[UpInArms]

107. Gold closes at $473.20 - highest since late 1987

1:56pm 09/21/05 DEC GOLD CLOSES AT $473.20, HIGHEST SINCE LATE 1987

1:56pm 09/21/05 DEC GOLD CLIMBS $3.20, OR 0.7%, FOR THE SESSION

(adding link and blurb on edit)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.5851016204-843170651&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Gold futures closed at their highest level since late 1987, according to monthly charts. Other metals prices followed suit as strength in oil prices continued to raise concerns over the economy. December gold rose $3.20, or 0.7%, to end the session at $473.20 an ounce.

[UpInArms]

113. Gold (in after hours trading) up at $475.20

2:53pm 09/21/05 DEC GOLD CLIMBS ABOVE $475/OZ IN AFTER-HOURS TRADE

2:53pm 09/21/05 DEC GOLD AT $475.20, UP $2.60 IN AFTER-HOURS TRADE

[54anickel]

128. Nice!!! Silver's not lookin' bad these days either.

[UpInArms]

39. IMF says oil could trigger inflation, higher rates

Ya think???

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T133519Z_01_WAT003958_RTRIDST_0_ECONOMY-IMF-RATES-URGENT.XML

WASHINGTON, Sept 21 (Reuters) - There is a chance high oil prices could trigger broad inflation and push interest rates higher, International Monetary Fund chief economist Raghuram Rajan said on Wednesday.

"The possibility that oil prices could trigger more general inflation, rising interest rates and affect housing prices is a real possibility," Rajan told a Washington press conference.

He said inflation has been relatively well contained in industrial countries so far, but remains a factor to watch.

[UpInArms]

49. IMF says U.S. Fed rightly cautious on inflation

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T135809Z_01_WAT003962_RTRIDST_0_ECONOMY-IMF-FED-URGENT.XML

WASHINGTON, Sept 21 (Reuters) - U.S. inflation seems contained but it pays to be cautious and it is evident that the Federal Reserve still sees a potential threat, a senior the International Monetary Fund official said on Wednesday.

"We thing that inflation at this point is still contained but there are signs which make us cautious," IMF chief economist Raghuram Rajan told a Washington press conference. He noted that productivity was slowing and unit labor costs for production were on the rise.

"These are warning signs that things may not be so benign going forward, so I think the Fed yesterday in raising interest rates has suggested that it still sees some potential threat from inflationary pressures," he added.

...more...

OMG! He noted that productivity was slowing and unit labor costs for production were on the rise.

Only looking at "wage inflation"? How about looking at how much it costs the freakin' workers to just keep their jobs? How about looking at how many "tax incentives" corporations get that are funded by the taxpayer?

These morans make me :puke:

[54anickel]

58. What was that Greenspin phrase again....

"a diminution of the pool of available workers."

I just don't think the rising labor costs for production have anything to do with a tight labor market this time around.

The "productivity miracle" Greenspin used to tout has come to a dead stop as corps sit on cash rather than re-investing into improved processes. There is no wage inflation, there might be productivity deflation going on though. :shrug:

edit to add -
Found the article that line phrase was from
http://www.pimco.com/LeftNav/Late+Breaking+Commentary/FF/2005/FF+August.htm

snip>

...But now the situation is different because the unemployment rate is a full percentage point above the low it made back then. And even more importantly, the year-over-year change in annual wages looks like a dead man’s electrocardiograph.

Utterly flat.
And going nowhere fast. At the same time, we have the reality that corporate profits as a share of GDP are as high as they have been in over three decades. Which is telling you that capital is getting a disproportionate share of productivity gains. That is axiomatic. We have had strong productivity gains. Meanwhile wages are going nowhere at the speed of light and corporate profits as a share of GDP are at the highest level in thirty years.

So labor is getting stiffed.
Well, you could say that. It would be a value judgment, however. I am careful about making value judgments since I am already known as a principled populist. But just as a practical matter, it is hard to argue that the labor market has become so sufficiently tight that the Fed should try to knock job creation on its head.

Clearly, tight is the last word you’d use to describe this labor market. This expansion has really lagged at job creation.
Nonetheless, too many new jobs is your traditional justification for tightening monetary policy: Somebody somewhere may be getting a job and, God forbid, he also may be getting a raise.

Heaven forbid, because that might stir up inflationary pressures.
Right. But that is a really hard case to make, fundamentally, when corporate profits are at a multi-decade high as a share of GDP and while you are also arguing about the glories of this positive structural shock to productivity. Now, if anybody can make that case, it is Greenspan, because he is that clever. I take my hat off to him. That is not a criticism but a compliment. Or rather, it is a criticism as a citizen but a compliment as a fellow analyst. When you can convince somebody that Cold Duck is actually Dom Perignon, you are good.

[UpInArms]

50. Here's the 10 o'clock "bounce"

Dow 10,447.13 -34.39 (-0.33%)
Nasdaq 2,120.70 -10.63 (-0.50%)
S&P 500 1,217.20 -4.14 (-0.34%)
10-Yr Bond 4.184 -0.59 (-1.39%)

NYSE Volume 345,034,000
Nasdaq Volume 282,480,000

9:45AM: As futures trading had presaged, the equity market opened lower as traders extend the downside momentum sparked late yesterday. Crude oil's ($68.03/bbl) 2.8% spike, fueled by Rita-related worries that the Texas coast - which produces a quarter of the nation's refined fuel - may be hit by the end of the week - serves as the strongest early impediment... With the Q3 earnings season on the horizon, profit warnings from several companies, across a diverse section of industry groups, have also underpinned the initial sense of caution...

Some offenders on the warning front of late include The New York Times (NYT 30.56, -1.57), American Eagle Outfitters (AEOS 21.27, -0.54), Avon Products (AVP 26.92, -3.68), Jack In the Box (JBX (31.18, -2.34), and Diebold (DBD 38.50, -5.87)...

[UpInArms]

52. California AG (Lockyer) wins victory in fund case: report

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.4195108565-843137318&siteID=mktw&scid=0&doctype=806&

BOSTON (MarketWatch) -- A California state judge has rejected arguments by American Funds to get a case brought against the company by California Attorney General Bill Lockyer dismissed, The Wall Street Journal reported Wednesday. Lockyer filed a securities fraud lawsuit against the mutual fund arm of Los Angeles-based Capital Group Companies, alleging the firm failed to adequately inform investors about $426 million in "shelf space" payments to brokers as incentive to sell the funds. American Funds challenged Lockyer's office with its own lawsuit, claiming the case is without merit and should be dismissed, and had argued the California attorney general has no jurisdiction in the matter.

[UpInArms]

56. 10:12 EST back to the cliff it goes

Dow 10,421.81 -59.71 (-0.57%)
Nasdaq 2,116.49 -14.84 (-0.70%)
S&P 500 1,215.35 -5.99 (-0.49%)
10-Yr Bond 4.186 -0.57 (-1.34%)

NYSE Volume 421,780,000
Nasdaq Volume 331,231,000

10:00AM: With eight of the ten economic sectors currently in the red, the major indices continue to trade below the flat line... Conversely, the Treasury market is in positive territory, with the 10-year note up 15 ticks and its yield down to 4.18%... The drop in market rates and the uncertainty related to Hurricane Rita is acting as an underpinning factor for the Utilities sector (+0.2%)... Transportation, in turn, has emerged as an area of relative strength, gaining 0.7% on account of soaring FedEx (FDX) shares...

After the company delivered Q1 EPS of $1.25, beating analysts expectations by $0.08, and simultaneously issued upside FY06 guidance (EPS of $5.40-5.65 vs. $5.30 consensus), investors have sent FDX shares up 7.4%...NYSE Adv/Dec 949/1637, Nasdaq Adv/Dec 602/1801

[ozymandius]

63. 10:40 downdate

Dow 10,439.33 -42.19 (-0.40%)
Nasdaq 2,120.96 -10.37 (-0.49%)
S&P 500 1,216.66 -4.68 (-0.38%)
10-Yr Bond 41.86 -0.57 (-1.34%)
NYSE Volume 648,899,000
Nasdaq Volume 481,073,000

10:30AM: The market maintains its negative stance, with respective 0.9% and 0.6% declines in Financials and Tech weighing upon the indices. The Consumer Discretionary sector is the worst-performing of the day, though, down 1.3% as broad-based weakness in retailers (-1.6%) and soaring energy prices (crude is up 2.9% to $68.10/bbl) help extend the sector's 8.9% year-to-date loss... Starbucks (SBUX 46.33 +0.17), meanwhile, stands out as one of the few winners following the company's announcement of a 2-for-1 stock split..NYSE Adv/Dec 984/1887, Nasdaq Adv/Dec 678/1934

[WhiteTara]

60. now that is the best cartoon that I

have seen in awhile. Thanks for posting that.
:rofl: and :cry: at the same time.

[ozymandius]

64. You're welcome. And thanks! n/t

[TrogL]

66. Loonie Watch

http://members.shaw.ca/trogl/looniewatch.html

Highlights.



http://www.x-rates.com/d/USD/CAD/data30.html

Detailed analysis (http://quotes.ino.com/exchanges/?r=CME_CD)

Up-to-the-minute graph (http://quotes.ino.com/chart/?s=CME_CDY&v=i)

Current TSE:




2005-08-22 Monday, August 22 0.830565 USD
2005-08-23 Tuesday, August 23 0.834655 USD
2005-08-24 Wednesday, August 24 0.8364 USD
2005-08-25 Thursday, August 25 0.841184 USD
2005-08-26 Friday, August 26 0.83689 USD
2005-08-29 Monday, August 29 0.835771 USD
2005-08-30 Tuesday, August 30 0.838997 USD
2005-08-31 Wednesday, August 31 0.840831 USD
2005-09-01 Thursday, September 1 0.843526 USD
2005-09-02 Friday, September 2 0.841751 USD
2005-09-05 Monday, September 5 0.841751 USD
2005-09-06 Tuesday, September 6 0.842673 USD
2005-09-07 Wednesday, September 7 0.843526 USD
2005-09-08 Thursday, September 8 0.845881 USD
2005-09-09 Friday, September 9 0.851136 USD
2005-09-12 Monday, September 12 0.843597 USD
2005-09-13 Tuesday, September 13 0.847458 USD
2005-09-14 Wednesday, September 14 0.845809 USD
2005-09-15 Thursday, September 15 0.842957 USD
2005-09-16 Friday, September 16 0.845594 USD
2005-09-19 Monday, September 19 0.855359 USD
2005-09-20 Tuesday, September 20 0.854409 USD






The loonie lost against all major currencies yesterday. Nothing drastic, but noteworthy. I have no idea why.

I'm posting early because I heard a vice president from the conservative Howe Institute on CBC radio this morning and want to get this down while I still remember it. Apparently they've published a report on taxation in a whole bunch of countries and rate Canada very low. I'll link to it later if I can find it.

Primarily, his point was that Canada has high taxation on investment income and it stifles corporations. Fine, that's standard conservative fare. What was hysterical was that after a few minutes of questioning, he had to admit that this was easily offset by a well-trained, healthy workforce paid for by, you guessed it, those exact same taxes he was complaining about.

Go figure.

[TrogL]

131. Here's the report and some blather

http://www.cdhowe.org/pdf/commentary_216.pdf

http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050921/RCDHOWE21/TPBusiness/

Canada is trailing all but one of its international peers when it comes to a competitive tax system for attracting investment, the C.D. Howe Institute says in a new report that calls on all leading industrialized countries to lighten the tax burden to compete with Asian economies.

Canada has the second-highest overall tax rate on capital investment -- the lifeblood of economic growth -- among 36 leading industrialized and developing countries in the world, the institute says in a report released yesterday.

It's a particularly dismal statistic for a country that's struggling to cope with new competition from fast-growing China and India and has seen its share of foreign direct investment sag in recent years

Note that there's not a word about education and health care.

[ozymandius]

67. 11:03

Dow 10,448.01 -33.51 (-0.32%)
Nasdaq 2,123.55 -7.78 (-0.37%)
S&P 500 1,218.23 -3.11 (-0.25%)
10-Yr Bond 41.83 -0.60 (-1.41%)
NYSE Volume 804,925,000
Nasdaq Volume 595,417,000

10:55AM: The averages move from session lows, but sellers still control the action... Over the past half hour, the EIA's weekly report indicated that crude oil inventories fell 323K barrels (consensus was a rise of 1.0 mln barrels), while gasoline inventories rose 3.47 mln barrels (consensus was a fall of 250K barrels) and distillate inventories rose 820K (consensus was a fall of 500K barrels)...

Crude's price ($67.80/bbl) has held relatively steady, rebounding from an intial decline and reflecting the market's worries about Rita's potential impact on supply. The Energy sector (+1.0%), meanwhile, retains its best-performing status, with ExxonMobil (XOM 65.02 +0.49) offering leadership and standing as one of the Dow's few bright spots, along with Intel (INTC 24.74 +0.26), Johnson & Johnson (JNJ 64.71 +0.31), and SBC (SBC 24.09 +0.01)...NYSE Adv/Dec 1185/1792, Nasdaq Adv/Dec 818/1895

[54anickel]

69. Huh? Gas and distillate inventories are up? Crude down? Sort of

negates the OPEC comment in another post that points a finger at refineries. The EIA wouldn't play with the numbers from time to time, would they?

:wtf:

[UpInArms]

71. here are the Petroleum Inventory Reports

API reports small decline in crude stocks

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.4441287384-843142449&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- The American Petroleum Institute said crude inventories fell by 158,000 barrels for the week ended Sept. 16 -- that's just over half the government's reported 300,000-barrel decline. Motor gasoline inventories rose 2.1 million barrels. Distillate stocks were up 3.2 million barrels, the API said.

U.S. crude stocks fall; gasoline stocks up: Energy Dept

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.4411710995-843141901&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK(MarketWatch) -- The Energy Department said crude inventories fell for the week ended Sept. 16, down 300,000 barrels to total 308.1 million. They've already fallen 14.5 million barrels in the last three-straight weeks. Motor gasoline supplies rose by 3.4 million barrels to 195.4 million. Distillate stocks were up 800,000 barrels at 134.1 million barrels. Energy prices continued higher with all eyes on Hurricane Rita. October unleaded gas is up 5.7% at $2.09 a gallon. October crude is up $1.20 at $67.30 a barrel after trading as high as $68.10 earlier. October heating oil is up 2.4% at $2.06 a gallon.

How would anyone really know what the numbers are :crazy:

[UpInArms]

70. Timken closes plant - lays off workers

11:08am 09/21/05 TIMKEN: MANY S.C. PLANT WORKERS TO BE OFFERED OTHER CO JOBS

11:09am 09/21/05 TIMKEN: S.C. PLANT PRODUCES BEARINGS FOR INDUSTRIAL USES

11:07am 09/21/05 TIMKEN:PLANT PRODUCTS TO BE INTEGRATED INTO OTHER FACILITIES

11:08am 09/21/05 TIMKEN SEES MAJORITY OF PRODUCTS BEING MANUFACTURED IN U.S.

11:05am 09/21/05 TIMKEN: S.C. PLANT CLOSURE PART OF AUTO GROUP RESTRUCTURING

11:06am 09/21/05 TIMKEN SEES S.C. PLANT PRODUCTION PHASED DOWN OVER 2 YEARS

11:05am 09/21/05 TIMKEN PLANS TO CLOSE CLINTON, S.C. PLANT

(adding link and blurb on edit)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.4796502083-843149925&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Timken Co. (TKR) said Wednesday that its plans to close its plant in Clinton, S.C. as part of a previously announced restructuring of its automotive group. Production at the plant -- which produces components and bearings for automotive powertrain and chassis applications -- is expected to be phased down over the next two years. Timken said products manufactured at the plant will be integrated into other facilities. It expects to continue producing the majority of the products in the United States. Many employees at the Clinton plant will be offered jobs at other facilities, said Timken.

[54anickel]

86. Timken - the Bush photo-op ended up being the kiss of death. Seems

every time he tells someone "helluva job" during a propaganda shoot it's the kiss of death.

[UpInArms]

73. "Soothing" and "Calming" Investors?????

Starbucks announces 2-for-1 split; investors soothed

http://www.marketwatch.com/news/story.asp?guid=%7BF55F58D3%2D876C%2D41A4%2D9E14%2DF45D4C36E7C0%7D&siteid=mktw

CHICAGO (MarketWatch) -- Starbucks Corp. calmed the investment waters Wednesday by announcing -- at long last, in the eyes of many shareholders -- that it will split its stock.

The Seattle-based coffee purveyor said shareholders of record on Oct. 3 will get an extra share for each one they hold. The new shares are to be payable Oct. 21.



Shares of Starbucks (SBUX: news, chart, profile) rose 29 cents to $46.45 in an otherwise down morning of trading for restaurant stocks. Since June, shares of Starbucks have tumbled nearly 17%. On a year-over-year basis, Starbucks shares are relatively flat.

This is the fifth time Starbucks has split its stock since its initial public offering in 1992. The last split, however, was in April 2002; shareholders have been calling for a split for more than a year.

...more...

Lennar, seeking to calm investors, ups profit view

http://today.reuters.com/news/newsArticleSearch.aspx?storyID=174470+21-Sep-2005+RTRS&srch=lennar

NEW YORK, Sept 21 (Reuters) - Home builder Lennar Corp. (LEN.N: Quote, Profile, Research) on Wednesday said third-quarter earnings would exceed Wall Street estimates, with orders for new homes remaining strong even as concerns reverberated through the stock market about how long the boom can continue.

Shares of Lennar and other home builders bounced back in Wednesday trading after falling across the board Tuesday after the U.S. Federal Reserve raised interest rates for the 11th time in a row and signaled that its campaign of raising rates to combat inflationary pressures would continue unabated.

Lennar said third-quarter earnings would exceed $2 per share, and it expects to raise its 2005 earnings forecast when it reports the third-quarter results next week. Wall Street analysts, on average, expected profit of $1.93 per share for the quarter and $7.86 for the year, according to Reuters Estimates.

"While we generally don't preannounce our quarterly results, given yesterday's market volatility and given the fact that our Miami corporate office was closed and management was inaccessible because of Hurricane Rita, we felt it prudent to preannounce our third quarter results," Chief Executive Stuart Miller said in a statement.

...more...

[ozymandius]

74. redder

11:32
Dow 10,424.76 -56.76 (-0.54%)
Nasdaq 2,118.17 -13.16 (-0.62%)
S&P 500 1,215.82 -5.52 (-0.45%)
10-Yr Bond 41.88 -0.55 (-1.30%)
NYSE Volume 976,560,000
Nasdaq Volume 712,559,000

[UpInArms]

78. 11:48 EST downward momentum accelerating

Dow 10,419.27 -62.25 (-0.59%)
Nasdaq 2,116.88 -14.45 (-0.68%)
S&P 500 1,215.10 -6.24 (-0.51%)
10-Yr Bond 4.189 -0.54 (-1.27%)

NYSE Volume 1,059,719,000
Nasdaq Volume 773,785,000

[UpInArms]

76. Fed's Ferguson says markets may underprice risk

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T144927Z_01_WBT003852_RTRIDST_0_ECONOMY-FED-FERGUSON-URGENT.XML

WASHINGTON, Sept 21 (Reuters) - Federal Reserve Vice Chairman Roger Ferguson on Wednesday said many financial markets may be underpricing risks and said both policy-makers and markets should take a medium-term view when gauging risk.

In a statement to be delivered to the IMF's policy-setting panel on Saturday on behalf of the Financial Stability Forum, Ferguson pointed to a number of factors, including low levels of risk premia and long-term interest rates, that suggested a high level of risk-taking.

"Considering the potential challenges these developments imply, many markets may perhaps be underpricing risks going forward," Ferguson said.

[UpInArms]

77. Nastily Written Headline: Stingier outlook for holiday shopping

(oh, so now you're "stingy" if you don't spend money you don't have)

http://www.newsday.com/business/ny-bzsale4435391sep21,0,1845210.story?coll=ny-business-headlines

High gasoline prices and the grim spectacle of Hurricane Katrina led to a drop in retail sales last week, and those factors will contribute to a weaker holiday selling season this year, economists said yesterday.

There could be a silver lining for shoppers, though: Retailers nervous about their sales are likely to start slashing prices early, leading to a holiday season heavy on big sales events, especially for toys and apparel.

Sales for the week ended Sept. 17 fell 2.1 percent from the previous week, according to the International Council of Shopping Centers. That was the steepest drop since December 2003 and followed a drop of 0.2 percent for the week ending Sept. 10.

"It looks like an echo of the Katrina effect," said Michael Niemira, chief economist for the Manhattan-based trade group.

Most worrisome for retailers is evidence that the spending chill "has affected both the low-end and high-end consumer," Niemira said, based on his conversations with apparel makers and other vendors.

If it continues, that trend could crimp hopes that wealthy shoppers will continue to splurge at a time when their poorer counterparts continue to cut back because of high gasoline prices.

...more...

Just "who" is a "wealthy" shopper?

[UpInArms]

92. Holiday outlook, consumers hit retailers

http://www.marketwatch.com/news/story.asp?guid=%7BFA012DBC%2D56DE%2D442D%2DBF66%2D5C766BE8661B%7D&siteid=mktw

CHICAGO (MarketWatch) -- Nearly every component of the retail sector's main measure stumbled Wednesday amid growing concerns about consumer spending and a lackluster forecast for holiday sales.

The S&P Retail Index ($RLX: news, chart, profile) dropped 5.6 points, or 1.3%, to stand at 423.09.

The National Retail Federation joined a growing chorus of doomsayers by predicting that holiday-season sales growth will slow this year compared to 2004's robust results. The trade group sees a 5% increase compared with last year's 6.7% rise.

"We have a seen a slowing in sales," said Rosalind Wells, chief economist at the NRF. "The Federal Reserve is increasing interest rates at every opportunity it has, employment seemed slow before Hurricane Katrina, income is not terribly robust and the consumers' savings rate is a minus. I think consumers are pretty hard-pressed -- and that's even before Katrina and the gasoline prices were rising."

Discounters and department-store stocks were hardest hit. SunTrust Robinson lowered its recommendation on Stein Mart and Tuesday Morning, sending those shares diving.

...more...

[UpInArms]

80. 12:04 EST bloodletting continues - DOW under 10,400

Dow 10,399.60 -81.92 (-0.78%)
Nasdaq 2,111.80 -19.53 (-0.92%)
S&P 500 1,213.05 -8.29 (-0.68%)
10-Yr Bond 4.188 -0.55 (-1.30%)

NYSE Volume 1,142,326,000
Nasdaq Volume 837,362,000

11:30 Without a new catalyst to spark either buying or renewed selling interest, trading remains range bound. The Treasury market, meanwhile, stays strong. The benchmark 10-year note has risen 13 ticks, yielding 4.19%, while the 30-year note is up 28 ticks and offering a yield of 4.47% following yesterday's rate hike... Strength at the back-end of the curve after the Fed decision connotes a belief that traders are comfortable with the idea that long-term inflation expectations will remain contained... Despite the Fed's decision, the dollar is weaker today against both the euro and yen - falling the most in three weeks as traders fear Rita will exacerbate Katrina's slowing effect on the economy and perhaps allow the Fed to refrain from raising rates at its next meeting... ..NYSE Adv/Dec 1273/1754. ..NASDAQ Adv/Dec

[UpInArms]

83. updating blather

12:05PM: The major indices have extended their losses as crude's rise has given traders a reason to retain the bearish bias that yesterday's FOMC announcement produced. Although the commodity pulled back from session highs following the EIA's weekly report that gasoline and distillate supplies unexpectedly rose, the fact that crude oil inventories unexpectedly fell 323K barrels (analysts estimated a 1.0 mln bbl rise) exacerbated supply concerns that Katrina triggered and that Hurricane Rita have worsened ...

A dearth of data on the economic front has kept price momentum across the energy complex in the spotlight; moreover, a series of profit warnings from multiple industry groups has underpinned today's cautious tone...To that end, The New York Times (NYT 30.56, -1.57), Avon Products (AVP 26.92, -3.68), Jack In the Box (JBX (31.18, -2.34), and Diebold (DBD 38.50, -5.87), and American Eagle Outfitters' (AEOS 21.27, -0.54) are among the recent warners of note. The Consumer Discretionary segment has lost 1.2% today and leads all economic sector's in the loss department...

Selling pressure remains broad-based, but homebuilders (+0.7%) have bucked the trend and stand as one of the sector's few pockets of strength...With the exception of Energy (+1.2%), every sector trades underwater. The negative standings of the influential Financial and Tech sectors have served as the heaviest drags. Financials, off 1% on the day, are particularly pressed by banks' 1.0% slip that comes on the heels of the latest 25 basis point hike to the overnight borrowing rate. Despite another upbeat earnings report from the brokerage group - Morgan Stanley's $1.21 in Q3 EPS beat estimates by $0.16 - the brokers have slipped 1.0% as well...

As for Tech, Qualcomm's (QCOM) 1.3% rise, sparked by its heightened fiscal Q4 EPS guidance, and Intel's (INTC 24.86 +0.38) 0.4% gain, due to Merrill Lynch's upgrade, have not been able to counter sector wide selling activity...DJTA +0.52, DJUA -1.07, DOT -0.42, Nasdaq 100 -0.82, Russell 2000 -0.80, SOX -1.43, S&P Midcap 400 -0.90, XOI +0.18, NYSE Adv/Dec 1149/1949, Nasdaq Adv/Dec 802/2047

[ozymandius]

84. Here's the silver lining to ugly numbers.

Diebold shares fall on lowered forecast

SEP. 21 11:05 A.M. ET Shares of Diebold Inc. plunged to a new year low Wednesday after the company said its president quit and it slashed its earnings forecast for the third quarter, blaming Hurricane Katrina and rising fuel costs along with a lower outlook for its automated teller machine business.

The North Canton company, which also makes security and voting machines, said its president and chief operating officer quit and that Walden W. O'Dell, Diebold's chairman and chief executive, would assume those positions to become more involved in the company's global operations.

"Our recent financial performance has been unacceptable, and these organizational changes are a major step toward improving our direction," O'Dell said.

more

[UpInArms]

97. thanks for that, Ozy

When Diebold is small enough to drown in a bathtub (to borrow a phrase from Grover Norquist), I shall rejoice.

http://www.motherjones.com/commentary/columns/2004/03/03_200.html

March 5, 2004

Soccer moms and NASCAR dads come and go, but swing states are always in fashion. And this year, Ohio is emerging as the most fashionable of the bunch. Asked recently about the importance of Ohio in this year's presidential campaign, one veteran of Buckeye State politics told Salon, "Ohio is the Florida of 2004."

That label sounds ominously accurate to the many who are skeptical of computerized voting. In addition to being as decisive as the 2000 polling in Florida, they worry this year's vote in Ohio could be just as flawed. Specifically, they worry that it could be rigged. And they wonder why state officials seem so unconcerned by the fact that the two companies in line to sell touch-screen voting machines to Ohio have deep and continuing ties to the Republican Party. Those companies, Ohio's own Diebold Election Systems and Election Systems & Software of Nebraska, are lobbying fiercely ahead of a public hearing on the matter in Columbus next week.

<snip>

In recent years, central Ohio has been transformed from a bastion of Republicanism into a Democratic stronghold. Six of Columbus' seven city council members are Democrats, as is the city's mayor, Michael Coleman. But no Democrat has been elected to Congress from central Ohio in more than 20 years, and the area around Columbus still includes pockets where no Democrat stands a chance. One such Republican pocket is Upper Arlington, the Columbus suburb that is home to Walden "Wally" O'Dell, the chairman of the board and chief executive of Diebold. For years, O'Dell has given generously to Republican candidates. Last September, he held a packed $1,000-per-head GOP fundraiser at his 10,800-square-foot mansion. He has been feted as a guest at President Bush's Texas ranch, joining a cadre of "Pioneers and Rangers" who have pledged to raise more than $100,000 for the Bush reelection campaign. Most memorably, O'Dell last fall penned a letter pledging his commitment "to helping Ohio deliver its electoral votes to the President."

O'Dell has defended his actions, telling the Cleveland Plain Dealer "I'm not doing anything wrong or complicated." But he also promised to lower his political profile and "try to be more sensitive." But the Diebold boss' partisan cards are squarely on the table. And, when it comes to the Diebold board room, O'Dell is hardly alone in his generous support of the GOP. One of the longest-serving Diebold directors is W.R. "Tim" Timken. Like O'Dell, Timken is a Republican loyalist and a major contributor to GOP candidates. Since 1991 the Timken Company and members of the Timken family have contributed more than a million dollars to the Republican Party and to GOP presidential candidates such as George W. Bush. Between 2000 and 2002 alone, Timken's Canton-based bearing and steel company gave more than $350,000 to Republican causes, while Timken himself gave more than $120,000. This year, he is one of George W. Bush's campaign Pioneers, and has already pulled in more than $350,000 for the president's reelection bid.

...more...

Timken and Diebold both in the news today :eyes:

[UpInArms]

81. Another Laff!: US household wealth rose in first quarter--Fed

(reminds me of that joke: If there are 9 men with zero assets or income sitting at a table and Bill Gates enters the room and sits down, the average wealth at the table makes every man a billionaire.)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T160237Z_01_WAT003968_RTRIDST_0_ECONOMY-WEALTH-URGENT.XML

WASHINGTON, Sept 21 (Reuters) - The net wealth of American households rose in the second quarter of 2005 as real estate, pension and mutual fund assets gained value, the Federal Reserve said on Wednesday.

In its quarterly "Flow of Funds" report, the central bank said household balance sheet values rose to to $49.83 trillion in the quarter, up from a revised $48.89 trillion in the first quarter of the year.

The 2005 first quarter net worth was originally reported at $48.79 trillion. The data is not seasonally adjusted.

Elsewhere in the report, the Fed said borrowing outside the financial sector rose at an annual rate of 7.3 percent in the second quarter, as slower borrowing by federal, state and local government outweighed faster household borrowing. The rise in borrowing in the second quarter was slower than the 9.9 percent increase in the first quarter of 2005, and was the smallest rise since the second quarter of 2004.

[ozymandius]

82. lunchtime check-in

12:08
Dow 10,409.40 -72.12 (-0.69%)
Nasdaq 2,113.42 -17.91 (-0.84%)
S&P 500 1,213.53 -7.81 (-0.64%)
10-Yr Bond 41.87 -0.56 (-1.32%)
NYSE Volume 1,163,826,000
Nasdaq Volume 851,300,000

[UpInArms]

93. 12:48 EST tourniquet in place

Dow 10,417.60 -63.92 (-0.61%)
Nasdaq 2,116.01 -15.32 (-0.72%)
S&P 500 1,214.69 -6.65 (-0.54%)
10-Yr Bond 4.185 -0.58 (-1.37%)

NYSE Volume 1,330,970,000
Nasdaq Volume 963,852,000

12:30PM: The indices head further south, yanked by increased selling pressure within the Financial sector, which, behind Utilities' 1.7% slide, represents the day's deepest decline. Within the languishing sector, however, the insurance brokerage group (+1.1%) has emerged as a pocket of relative strength - standing as the only gainer with the sector and as one of the best performers across the S&P today...

Dual rises in Marsh & McLennan (MMC 29.63 +0.19) and Aon Corp. (AOC 32.16 +0.63) are responsible, but are ultimately unable to offset declines in REITs, property and casualty insurers, and asset managers, which are the session's worst performing financial groups... Separately, utility stocks have rolled over in the past half hour and now comprise the worst performing sector (-1.71%) today... The specific cause for the reversal is unknown at this point...NYSE Adv/Dec 1075/2060, Nasdaq Adv/Dec 760/2116

[UpInArms]

85. U.S. debt grows 7.3% in second quarter

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.5012702431-843154403&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- U.S. nonfinancial debt grew at a 7.3% annual rate in the second quarter, the slowest growth in a year, the Federal Reserve reported Wednesday. Households and businesses stepped up their borrowing, while federal borrowing was nearly flat. Household debt grew at a 9.9% rate, with mortgage debt rising 11.5%. Business borrowing increased 8.4%, the fastest in five years. A $940 billion increase in household net worth to $49.83 trillion offset much of the increase in debt. The increase in net worth came from capital gains on existing assets, rather than from new investments.

12:01pm 09/21/05 U.S. HOUSEHOLD NET WORTH RISES 1.9% TO $49.8 TRILLION

12:01pm 09/21/05 U.S. BUSINESS DEBT RISES 8.4%, FASTEST SINCE 2Q 2000

12:01pm 09/21/05 U.S. HOUSEHOLD DEBT RISES AT 9.9% PACE IN 2Q

12:01pm 09/21/05 U.S. DEBT RISES AT 7.3% PACE IN 2Q, SLOWEST IN A YEAR

[54anickel]

90. Had to throw that "slowest in a year" in there, didn't they? See, we've

been worse off. :crazy:

[Gregorian]

96. In just one quarter!

I may be an idiot, but that sounds like a HUGE increase.


Not good.

[UpInArms]

88. PIEHOLE ALERT: The check is in the mail

12:13pm 09/21/05 BUSH: WE'VE MAILED CHECKS TO 600K KATRINA EVACUEES

[Systematic Chaos]

94. The last four paragraphs of this week's Mogambo (scary but true)

***The Mogambo Sez: Gold is, if you have been reading the newspapers, on a tear, as more people than just you and I recognize that only precious metals can save us now.

And in response to all of you who want to know if the government will again confiscate gold, the answer is "yes". But not now, nor anytime soon. But one day, when consumer buying has completely dried up because nobody has any money, and the few people who DO have any money cannot afford to buy anything because inflation is off the charts, the government will get the bright idea to confiscate your gold, or your house, or your car, or your retirement accounts, or anything that you have that is worth something, and put dollars in your hand, hoping that you will run out and buy something.

That that day is coming is foreordained, as there is no way, no freaking way, no freaking way in hell to stop the collapse of the despicable economic system that has evolved in this country. If there was a way, any way at all, then one other country in the whole history of countries that have gotten themselves into this kind of mess would have thought of it by now. None have, although they have tried everything, even the stuff that they already knew would NOT work. Then they went to war. Which merely finished them off.

Welcome to fiat currency, fractional-reserve, deficit-spending hell. They call it "hell" for a reason.

[54anickel]

98. Just a thought...confiscate your home, car, retirement account -

New bankruptcy bill...Say you can't swing the payments anymore - could there be a gov't program the buys the house from you, yet lets you live there for say a lower payment - sort of like a reverse mortgage. Maybe the same with your car. They won't call if confiscation - that's too ugly. Some benign sounding program to get worthless $ in your hand so you'll spend them.

I dunno - just a thought. :shrug:

[UpInArms]

95. Wall Street braces for weak September retail sales

http://today.reuters.com/investing/financeArticle.aspx?type=economicNews&storyID=2005-09-21T143657Z_01_N21464867_RTRIDST_0_RETAIL-SALES.XML

CHICAGO, Sept 21 (Reuters) - A profit warning from American Eagle Outfitters Inc. (AEOS.O: Quote, Profile, Research) may be the first of many as the nation's retailers limp through the vital back-to-school sales season, analysts said on Wednesday.

Hurricane Katrina kept many shoppers glued to the television and also drove up fuel prices, cutting into consumer spending. Now, Hurricane Rita may deal another blow to sales in the Southeast and Gulf Coast.

Adding to the pain, warm weather in parts of the United States has curbed demand for fall clothing. Analysts said fashion trends were largely a rerun of last year's denim-focused styles, leaving shoppers uninspired.

That has prompted retailers to start slashing prices in hopes of spurring demand, putting pressure on profits.

"Back to school dropped dead," Merrill Lynch analyst Mark Friedman wrote in a note to clients.

...more...

[UpInArms]

101. 1:36 EST sinking back down again

Dow 10,404.71 -76.81 (-0.73%)
Nasdaq 2,113.93 -17.40 (-0.82%)
S&P 500 1,213.42 -7.92 (-0.65%)
10-Yr Bond 4.184 -0.59 (-1.39%)

NYSE Volume 1,534,678,000
Nasdaq Volume 1,095,371,000

[ozymandius]

102. and down

1:39
Dow 10,394.59 -86.93 (-0.83%)
Nasdaq 2,111.61 -19.72 (-0.93%)
S&P 500 1,212.19 -9.15 (-0.75%)
10-Yr Bond 41.84 -0.59 (-1.39%)
NYSE Volume 1,557,237,000
Nasdaq Volume 1,108,266,000

1:00PM: The indices edge back from their worst levels, yet continue to trend decidely negative... Despite the 1.9% surge in crude prices today, airlines have surfaced as one of the market's strongest segments. Helping in that regard is Southwest Airlines (LUV), which was upgraded to Overweight from Underweight at JP Morgan and initiated with a Buy rating at Citigroup... The Industrials sector, which is sporting a 0.4% loss, currently ranks as best of the laggards thanks to the support from LUV and the gain in FedEx (FDX), which impressed with its latest earnings results and outlook...NYSE Adv/Dec 1120/2033, Nasdaq Adv/Dec 798/2124

[UpInArms]

104. 1:53 EST down more than 100 points

Dow 10,379.94 -101.58 (-0.97%)
Nasdaq 2,108.28 -23.05 (-1.08%)
S&P 500 1,210.81 -10.53 (-0.86%)
10-Yr Bond 4.181 -0.62 (-1.46%)

NYSE Volume 1,623,228,000
Nasdaq Volume 1,170,237,000

1:30PM: Range bound trading persists as little movement has occurred since the previous comment. Healthcare (+0.04%), however, has edged north and vacillates around the unchanged mark. Though a good portion of the sector remains underwater, solid performace from mainstays Johnson & Johnson (JNJ 65.01 +0.61), Amgen (AMGN 85.60 +0.62), Abbott Labs (ABT 43.31 +0.22), and United Healtchare (UNH 53.19 +0.57) are helping to offset weakness in drug giants Merck (MRK 27.94 -0.24), Eli Lilly (LLY 53.85 -0.25) and Pfizer (PFE 25.35 -0.05)...NYSE Adv/Dec 1166/1995, Nasdaq Adv/Dec 853/2084

[UpInArms]

103. WorldCom settlements to return $6.1B to investors - AP

1:48pm 09/21/05 WorldCom settlements to return $6.1B to investors - AP - MarketWatch.com

1:46pm 09/21/05 J.P. Morgan Chase to pay $2B for WorldCom settlement - AP - MarketWatch.com

1:45pm 09/21/05 Citigroup to pay $2.58B for WorldCom settlement - AP - MarketWatch.com

1:44pm 09/21/05 Federal judge OKs WorldCom settlements of $6.1B - AP - MarketWatch.com

(adding link and blurb on edit)

Federal judge approves $6.1B in WorldCom settlements - AP

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38616.5819238426-843170066&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- A federal judge has approved legal settlements that will return more than $6.1 billion to investors who lost money in the WorldCom (MCIP) accounting fraud, according to a published report Wednesday. The deals will divide payments among about 830,000 people and institutions that held stocks or bonds in WorldCom around the time of the telecommunication company's collapse in 2002, the Associated Press reported. The largest payment portions will be from Citigroup Inc. (C) with $2.58 billion; and from J.P. Morgan Chase & Co. (JPM) with $2 billion, the AP reported. Investors claim the companies, which were among those that underwrote or traded WorldCom securities, should have been aware of the fraud, the AP reported.

[ozymandius]

105. Mommy make the bad man stop!

1:57
Dow 10,391.48 -90.04 (-0.86%)
Nasdaq 2,109.52 -21.81 (-1.02%)
S&P 500 1,211.81 -9.53 (-0.78%)
10-Yr Bond 41.81 -0.62 (-1.46%)
NYSE Volume 1,648,867,000
Nasdaq Volume 1,181,791,000

[UpInArms]

108. 2:09 EST Bad Man Clearing Tables in the Casino

Dow 10,386.39 -95.13 (-0.91%)
Nasdaq 2,109.59 -21.74 (-1.02%)
S&P 500 1,211.39 -9.95 (-0.81%)
10-Yr Bond 4.178 -0.65 (-1.53%)

NYSE Volume 1,700,705,000
Nasdaq Volume 1,228,233,000

2:00PM: The indices carve out fresh session lows as broad-based consolidation continues... The Materials sector (-1.4%) has moved into last place among the 10 economic sectors, unable to stay afloat despite relative strength in gold (+2.8%)... The latter group, which is being led by Newmont Mining (NEM 46.04 +1.23), stands as the day's best performing group and reinforces its month-to-date leadership position. Gold is up today on account of its defensive attributes, and because a weak greenback makes dollar-denominated assets, like gold, more affordable to foreign investors...

Steel's 1.4% rise, for which Nucor's upgrade (to Buy from Neutral at UBS) is responsible, has also been overshadowed by a 3.1% plunge in diversified chemicals, a 2.7% slide in fertilizer, and a 2.3% decline in industrial gases...NYSE Adv/Dec 1115/2069, Nasdaq Adv/Dec 783/2174

[UpInArms]

111. 2:45 EST hanging on to the 10,400

Dow 10,407.56 -73.96 (-0.71%)
Nasdaq 2,112.72 -18.61 (-0.87%)
S&P 500 1,213.17 -8.17 (-0.67%)
10-Yr Bond 4.185 -0.58 (-1.37%)

NYSE Volume 1,873,720,000
Nasdaq Volume 1,349,991,000

2:30PM: The market hovers around session lows, with every sector besides Energy (+1.1%), Healthcare (-0.2%), Telecom (-0.7%), and Industrials (-0.7%) chalking losses over 1.0%... The most influential drags on the broader market continue to be Financial (-1.3%), Consumer Discretionary (-1.1%) and Technology (-0.9%)...

Separately, McDonald's (MCD) shares have pared some early losses after the fast-food giant delivered a triple dose of upbeat news during its analyst day: it upped its dividend 22%, disclosed an IPO of minority interest in its Chipotle concept, and reaffirmed its targets of 3-5% sales growth and 6-7% operating income growth...NYSE Adv/Dec 1094/2131, Nasdaq Adv/Dec 751/2226

[UpInArms]

112. 2:56 EST fairies help out! color now pink

Dow 10,440.21 -41.31 (-0.39%)
Nasdaq 2,117.45 -13.88 (-0.65%)
S&P 500 1,215.58 -5.76 (-0.47%)
10-Yr Bond 4.184 -0.59 (-1.39%)

NYSE Volume 1,943,793,000
Nasdaq Volume 1,394,015,000

[UpInArms]

116. 3:10 EST back to color Red

Dow 10,411.31 -70.21 (-0.67%)
Nasdaq 2,112.57 -18.76 (-0.88%)
S&P 500 1,212.20 -9.14 (-0.75%)
10-Yr Bond 4.185 -0.58 (-1.37%)

NYSE Volume 2,035,591,000
Nasdaq Volume 1,457,102,000

3:00PM: Further selling pressure has been stunted, and the indices are enjoying a bounce that has moved them off their lows for the session... Nonetheless, the prevailing bearish bias in the market today can be seen in the market's internals. At the NYSE, decliners maintain a nearly 2-to1 edge over advancers, while, on the Nasdaq, decliners exceed advancer 11 to 4. Adding to the day's struggles has been the inability by the Dow, S&P and Nasdaq to find initial support near key technical levels of 10460, 1217 and 2120, respectively...NYSE Adv/Dec 1109/2129, Nasdaq Adv/Dec 778/2216

[UpInArms]

119. 3:30 EST under 10,400 - will the last 1/2 hour fairies come for the push?

Dow 10,391.48 -90.04 (-0.86%)
Nasdaq 2,108.58 -22.75 (-1.07%)
S&P 500 1,211.38 -9.96 (-0.82%)
10-Yr Bond 4.188 -0.55 (-1.30%)

NYSE Volume 2,159,384,000
Nasdaq Volume 1,539,022,000

3:30 The market's recovery effort was short lived, as the indices have moved back toward their lows for the session. Even Energy (+0.8%), with commodity trading closed, has given back some of its day-long gain, although it remains comfortably on positive ground with a gain of 0.9%. The sector's performance today falls in line with its broad-based, month-to-date rise. Of September's top ten gainers, the Energy segment is home to four. Explorers have surged 9.3%, integrated oil has chalked a 7.9% gain, oil storage and transportation has soared 5.6%, and refiners are up 5.2%... The latter group is up 88.5% year-to-date and is the market's best-performing industry group in 2005... ..NYSE Adv/Dec 1117/2149. ..NASDAQ Adv/Dec 812/2220.

[UpInArms]

120. U.S. taxable money funds report $15.4 bln outflow

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-21T195406Z_01_N21502426_RTRIDST_0_FINANCIAL-MONEYFUNDS-IMONENYET-URGENT.XML

NEW YORK, Sept 21 (Reuters) - U.S. taxable money market funds reported $15.4 billion of outflows during the week ended Sept. 20, following a $16.2 billion inflow the previous week, the Money Fund Report said on Wednesday.

Tax-free funds reported a $4.9 billion outflow in the week ended Sept. 19, following $2.8 billion of inflows the prior week, said the report published by iMoneyNet Inc.

Average taxable money fund yields rose by 7 basis points to 3.03 percent, while tax-free yields rose by 10 basis points to 1.97 percent.

[UpInArms]

122. closing numbers

Dow 10,378.03 -103.49 (-0.99%)
Nasdaq 2,106.64 -24.69 (-1.16%)
S&P 500 1,210.20 -11.14 (-0.91%)
10-Yr Bond 4.188 -0.55 (-1.30%)

NYSE Volume 2,532,870,000
Nasdaq Volume 1,772,348,000

blather to come...

[ozymandius]

123. Yikes! I go to a meeting and.. well... just look at this mess.

I shudder to think what will happen if Rita takes out a refinery and some pumping stations.

[UpInArms]

124. an ugly day for the gamblers - here's the blather

Close: Industrials (-0.6%), while submerged all day, fared better than some sectors, bolstered by Southwest Airlines (LUV), upgraded to Buy at JP Morgan and initiated as such at Citigroup, and a surging FedEx (FDX), which impressed with its latest earnings results and outlook... To that end, the Dow Jones Transportation Average rose 0.4% today...

The Treasury market, meanwhile endured a very different day. While the benchmark 10-year note jumped 17 ticks, yielding 4.18%, the 30-year note rose 34 ticks, to offer 4.46%. Strength at the inflation sensitive, back-end part of the curve, on the heels of the Fed's rate decision, reflects traders' sense that the Fed will remain vigilant with its inflation-busting policy and that long-term inflation expectations will remain contained... Rita's reported Texas-bound path, and the possible disruption/damage to refining operations and offshore platforms, roiled a Katrina-shaken market that fears further oil supply disruptions. .. Accordingly, crude futures gained as much as 3% in the early going before slipping back on speculation Rita might veer far enough south to spare Texas' refining facilities...

On a related note, the EIA's weekly inventory report indicated gasoline and distillate supplies unexpectedly rose while crude oil inventories unexpectedly fell (by 323K barrels vs. analysts' estimate of a 1.0 mln bbl rise)... To say the least, it was a busy day in the energy pits and in the trading of energy stocks, which comprised the stock market's only winning sector... Since traders had no economic data with which to contend today, rising crude prices sat center stage... While the commodity closed off of its session highs, it booked a 1.0% increase with its $66.90/bbl finish, spurring the Energy's sector's (+1.2%) gain...

The remaining sectors all finished with a loss... The lack of leadership and several profit warnings from a variety of companies spanning several sectors underpinned today's cautious tone...To that end, The New York Times (NYT 30.56, -1.57), Avon Products (AVP 26.92, -3.68), Jack In the Box (JBX (31.18, -2.34), and Diebold (DBD 38.50, -5.87) were among the companies cutting earnings expectations... On the flip side, FedEx (FDX) and Morgan Stanley (MWD) delivered reassuring earnings news, but ultimately, their good fortune wasn't enough to shift the bearish tide...

Financials, after languishing all day, finished with a loss of 1.5%, leaving it as the worst performing sector... Banks, which dropped 1.4%, led the retreat as a flattening yield curve prompted selling interest... Technology also spent the day in the red, unable to benefit from increased fiscal Q4 guidance from Qualcomm (QCOM) and a Merrill Lynch upgrade of Intel (INTC) to Buy from Neutral...Industrials (-0.6%), while submerged all day, fared better than some sectors, bolstered by an upgrade of Southwest Airlines (LUV) at JP Morgan and the gain in FedEx... To that end, the Dow Jones Transportation Average rose 0.4% today...

The Treasury market, meanwhile, endured a very different day. While the benchmark 10-year note jumped 17 ticks, lowering its yield to 4.18%, the 30-year note rose 34 ticks, and its yield dropped to 4.46%. Strength at the inflation sensitive, back-end part of the curve, on the heels of the Fed's rate decision, reflects traders' belief that the Fed will remain vigilant with its inflation-fighting policy so that long-term inflation expectations will remain contained...DJTA +0.44, DJUA -1.28, DOT -0.57, Nasdaq 100 -1.04, Russell 2000 -1.48, SOX -1.74, S&P Midcap 400 -2.18, XOI +0.52, NYSE Adv/Dec 1118/2175, Nasdaq Adv/Dec 774/2280

[ozymandius]

126. Have a good evening UIA and everyone.

See you in the morning!

Ozy :hi:

[AnneD]

129. Ozy

The beaches in Galveston are brown and sometimes you run into a substance called beach tar. No, it is not from the ships cleaning their fuel lines....much naturally seeps up from off shore from the shoals, coastline, etc. In other words, we pump and refine lots of petro and much of it sits on the coast for easy shipping. Fill up your cars today.

[54anickel]

127. Cripes! The couple of bucks I made today just don't seem worth

the trouble anymore. I'm gonna start charging in gas or groceries or something. I don't want no more stinkin' dollars - there's no place to put 'em where they'll retain any value. :-(

[spotbird]

132. Wow, you said it,

no where at all. A mattress is starting to look good.

[bobo4u]

136. Prudent Bear Global Income Fund...

After sitting stagnant for some time, my gold fund is starting to take off. Some say gold is pretty risky though--so beware. Check out the Prudent Global Income Fund...protect yourself from declining dollar values.

http://www.prudentbear.com/funds_info_home.asp

[Zynx]

134. Not even my nice conservative portfolio was safe.

I own Emerson, P&G, MMC(finally that's making me some money), Wells Fargo, Johnson Controls, Medtronic, and the Brazilian airplane manufacturer Embraer(ok that one's not conservative). Today I got hit for about .4% in total. My mutual funds did a whole lot worse though.

[EuroObserver]

133. Swiss francs? Sterling? Swedish Krona? n/t