STOCK MARKET WATCH, Thursday 22 September

[ozymandius]

Thursday September 22, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 121 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 276 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 340 DAYS
DAYS SINCE ENRON COLLAPSE = 1397
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 21, 2005

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... 4.19% -0.06 (-1.30%)
Gold future... 472.60 +2.60 (+0.55%)

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 Mike Hartman

Mr. Market says Fed is Wrong!

Financial markets are absolutely consumed with the aftermath of Hurricane Katrina and the onset of Hurricane Rita. Each time I checked-in with CNBC for any breaking news, all I heard was continuing updates on the potential impact of Rita at landfall in a couple days. Economic news was light today with the regular mid-week reports on home mortgage activity and the Energy Department’s weekly inventory numbers. Probably the most noteworthy economic news for the day came from the IMF as they adjusted global growth lower.

In 2004 global growth was 5.1% and 2005 growth was adjusted from 4.4% to 4.3%, with oil prices and protectionist measures in the U.S. and Europe cited as the reasons for the lower expectations. Forecast growth in the U.S. was reduced from 3.6% to 3.5%, but what caught my eye the most was the downward revision for 2006. The IMF has reduced the forecast growth for the U.S. from 3.6% to 3.3%. Putting it all in a different perspective, global growth for 2005 was reduced by 2.3%, but forecast growth in the U.S. was adjusted 8.3% lower for 2006. With inflation on the rise, the 3.3% forecast growth is really only growth by way of inflation. If the true inflation rate is 5%, the real growth in the U.S. would actually be negative after adjusting for inflation.

The Federal Reserve raised interest rates yesterday, saying inflation is a bigger threat to the economy than the risks of an economic slowdown. The Fed statement said the negative economic effects of Katrina would not be a “persistent threat,” but where he missed the mark is simply that natural disasters CAN BE a persistent threat to the economy. Louisiana represents about 20% of our oil refining and infrastructure, whereas Texas represents roughly 25% of our oil infrastructure. There are 26 refineries in Texas, most of which are right on the Gulf Coast. You can’t miss hearing about it if you just turn on your television.

-cut-

If the Fed were raising rates because the economy is booming along, it would not have much of a negative effect. In this case, the economy is slowing, but the Fed has to raise because of the inflation threat. Remember also, the Fed is desperately trying to defend their Federal Reserve Notes (a.k.a.: U.S. dollars) as the reserve currency of the world. I’m sorry, but higher interest rates will not stop the coming carnage in the dollar as the economy and stock markets begin to falter. Even as Greenspan raised rates yesterday and continued with his hawkish rhetoric, investors are selling the dollar today. When Greenspan spoke yesterday, the bond market fell in line and sold-off, reflecting the higher rates and hawkish tone. Today the bond market is singing a different song. Today, rates/yields are moving lower, especially on the long end. The yield curve is flattening, which points more toward economic weakness. The Fed wants higher rates on the long-end, but the market is still not cooperating. I believe the powers that be are actually trying to spin inflation higher in hopes they can spook the bond vigilantes into selling off the long bond. The Fed says they are concerned with inflation, but Mr. Market is saying economic weakness is a bigger threat. The stock market is singing the same song as the players in the bond pits…and Greenspan scratches his head on what to do next.

more...

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

[ozymandius]

2. Oil nears $68, Rita threatens facilities

LONDON (Reuters) - Oil raced toward $68 on Thursday as Hurricane Rita bore down on Gulf of Mexico oil and gas production and forced six refineries in Texas to shut down.

Companies scrambled to close facilities and evacuate staff as Rita, now a maximum Category 5 storm, aimed her 175 mph (280 kph) winds on Texas, home to a quarter of U.S. refining capacity. It is expected to hit land by early Saturday.

-cut-

With 18 of Texas' 26 refineries located near the Gulf of Mexico coast, the Energy Information Administration said Rita -- the third most intense Atlantic hurricane on record gauged by internal pressure -- could have a "substantial impact."

-cut-

Together with the four facilities still closed in Louisiana and Mississippi after Katrina, around 14 percent of U.S. refining capacity is now offline. But the plants in Texas, which are above sea level, face a smaller risk of flooding than the Louisiana refineries that bore the brunt of Katrina.

more

[ozymandius]

5. Oil firms batten down ahead of Rita

NEW YORK (Reuters) - Oil companies on Wednesday began shutting refineries and finishing the evacuation of workers from oil and gas production platforms in the Gulf of Mexico as powerful Hurricane Rita approached.

About 14 percent of U.S. oil refining capacity by Wednesday night was shut as a precaution before Hurricane Rita strikes land and in the aftermath of Hurricane Katrina.

-cut-

As of Wednesday night, six Texas refineries able to process a total of 1.4 million barrels of crude oil per day -- or about 8.7 percent of the nation's oil refining capacity -- had closed down in preparation for the storm. Also, Flint Hills Resources was shutting much of its 290,000-bpd Corpus Christi, Texas refinery, according to a filing with Texas environmental regulators.

Marathon Oil, another large U.S. refiner, said it began shutting down its 72,000 barrel per day refinery in Texas City, Texas, so that employees could start evacuating.

more

[UpInArms]

23. Rita sends oil over $68, safe-havens sought

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-22T130117Z_01_L2240732_RTRIDST_0_MARKETS-GLOBAL-WRAPUP-4.XML

LONDON, Sept 22 (Reuters) - Crude climbed above $68 a barrel while safe-haven government bonds and gold also rallied on Thursday as Hurricane Rita bore down on the Texas coast, disrupting the U.S. oil industry and rattling insurance stocks.

Oil prices rose more than $2 a barrel on fears that production and refining facilities will take another beating, having barely recovered after Hurricane Katrina ripped through the Gulf of Mexico last month.

Gold rallied to a near 18-year peak as high fuel prices raised concerns about inflation and U.S. economic growth, while euro zone government bond yields hit record lows.

European stocks fell, with insurers like Munich Re (MUVGn.DE: Quote, Profile, Research) and Hannover Re (HNRGn.DE: Quote, Profile, Research) among the hardest hit on speculation they may face larger-than-expected damages claims from Katrina and Rita.

"We don't know how big the (Rita's) impact will be but the market is being quite rightly a bit cautious ahead of what is an unknown," said Adrian Darley, senior investment manager at Gartmore Investment Management in London.

"It's not just the hurricane; U.S. rates are rising along with other different things, and valuations are just not as cheap as they used to be."

...more...

[UpInArms]

83. Crude oil closes at 66.50 - we're rich

2:57pm 09/22/05 CRUDE CLOSES DOWN 30 CENTS AT $66.50

[UpInArms]

43. here's a pic of Rita as she buzzsaws through the Gulf

[RawMaterials]

IMHO I think she is going to hit NO

:cry: but i sure hope I'm wrong

[UpInArms]

52. Louisiana governor urges coastal evacuation

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-22T153019Z_01_N22379794_RTRIDST_0_RITA-LOUISIANA-URGENT.XML

BATON ROUGE, Louisiana, Sept 22 (Reuters) - Louisiana Gov. Kathleen Blanco urged all residents of coastal communities to evacuate on Thursday as weather reports indicate Hurricane Rita will come closer to the state than previously thought.

"Southwest Louisiana is now in danger," Blanco told reporters in Baton Rouge.

Blanco said she is asking the federal governments to send more troops to help in search and rescue operations in Louisiana, which is still recovering from Hurricane Katrina.

[UpInArms]

55. Texans flee coast ahead of fearsome storm Rita

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-22T155026Z_01_N22536847_RTRIDST_0_RITA-WRAPUP-3-PICTURE.XML

GALVESTON, Texas, Sept 22 (Reuters) - Cars clogged Texas highways with more than a million people fleeing Hurricane Rita on Thursday as the Category 5 storm roared through the Gulf of Mexico on a potentially catastrophic course.

Heavy traffic jammed highways from Corpus Christi in southern Texas into Louisiana as coastal residents, heeding the lessons of Hurricane Katrina, headed inland to escape what has become one of the most intense storms on record.

The National Hurricane Center said the path of Rita, with top winds dropping slightly to 165 mph (265 kph), had shifted toward the north. It appeared to be headed toward Galveston and Houston, the nation's fourth largest city and center of the U.S. oil industry.

As Rita neared, Exxon Mobil said it was closing the biggest U.S. oil refinery in Baytown, Texas and another in Beaumont, 90 miles (144 km) east.

The closings, combined with earlier shutdowns due to Rita and Katrina three weeks ago, raised to at least 12 the number of U.S. refineries out of commission. Together, they had nearly 20 percent of U.S. refining capacity, raising the specter of serious gasoline shortages in the days ahead.

A hurricane warning was in effect from Port O'Connor, Texas, to Morgan City, Louisiana.

...more...

[UpInArms]

80. 21 refineries in Rita's path: American Petroleum Institute

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38617.613001713-843355444&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch)-- Twenty-one oil refineries, or 27.5% of U.S. refining capacity, sits in the potential path of Hurricane Rita, the American Petroleum Institute said Thursday. "The shutdown or anticipated shutdown of any significant part of that capacity could affect U.S. gasoline markets," the industry group said in statement. API said the impact of evacuations and shutdowns due to Rita are already being felt, with 605 platforms and 87 rigs evacuated, representing 92% of daily oil production and 66% of natural gas production in the Gulf. The Louisiana Offshore Oil Port was prepared to suspend operations, limiting oil imports.

2:36pm 09/22/05 HURRICANE COULD CAUSE "SERIOUS' PIPELINE DISRUPTIONS: API

2:36pm 09/22/05 MANY REFINERIES MAY REDUCE RUNS OR SHUT DOWN: API

2:36pm 09/22/05 CLOSED PORTS COULD IMPACT 10-15% OF U.S. OIL IMPORTS

[ozymandius]

3. repeat from 9/21: Rita could equal $5 gas

NEW YORK (CNN/Money) - Remember when gas spiked to $3-plus a gallon after Hurricane Katrina? By this time next week, that could seem like the good old days.

Weather and energy experts say that as bad as Hurricane Katrina hit the nation's supply of gasoline, Hurricane Rita could be worse.

Katrina damage was focused on offshore oil platforms and ports. Now the greater risk is to oil-refinery capacity, especially if Rita slams into Houston, Galveston and Port Arthur, Texas.

"We could be looking at gasoline lines and $4 gas, maybe even $5 gas, if this thing does the worst it could do," said energy analyst Peter Beutel of Cameron Hanover. "This storm is in the wrong place. And it's absolutely at the wrong time," said Beutel.

more

[ozymandius]

4. Government bonds climb as hurricane nears

Government bonds across the globe strengthened on Wednesday as prospects of a second powerful hurricane hitting the Gulf of Mexico raised fears of higher oil prices denting economic growth. As investors rushed into safe-haven debt, US Treasuries gained, pushing yields down, while eurozone government bond yields sank to new all-time lows. The rally largely overshadowed the impact of another interest rate rise on Tuesday by the US Federal Reserve, which also indicated that it would continue on its campaign of monetary tightening.

very short article

[ozymandius]

6. Sony to cut 10,000 jobs, $1 bln assets for revival

TOKYO (Reuters) - Struggling electronics and entertainment conglomerate Sony Corp. (6758.T: Quote, Profile, Research) said on Thursday it would cut about 7 percent of its global work force, sell more than $1 billion in assets and post a loss this year.

With a restructuring plan that underwhelmed some analysts, Sony hopes to reverse its fading fortunes and catch up with rivals such as Matsushita Electric Industrial (6752.T: Quote, Profile, Research) and Sharp Corp. in flat TVs and Apple Computer and its popular iPod player in the portable music industry.

The inventor of the Trinitron TV and Walkman cassette player said it would book 210 billion ($1.9 billion) yen in restructuring charges in the two business years through March 2007 as it closes plants and slashes 10,000 jobs.

"These are pretty moderate plans," Mizuho Securities analyst Koichi Hariya said. "There could have been some investors who had expected more drastic measures from the new foreign CEO."

more

[salin]

7. How much has it dropped this week?

Seems that each day it has gone down - where did we start at opening on Monday?

[Zynx]

8. A little over 10,600.

Actually, more like 10,625 from looking at the chart.

http://www.marketwatch.com/charts/int-adv.chart?siteid=mktw&symb=26099400&sid=1643&time=18&startdate=&enddate=&freq=9&comp=&compidx=aaaaa~0&uf=7168&ma=1&maval=50&type=2&size=1&lf=1&lf2=4&lf3=67108864&style=1013&mocktick=1&rand=740993678&siteid=mktw

[punpirate]

11. As far as the Dow, ~265 points in the past three days...

... 85-odd points Monday, 75-odd points Tuesday, 103 Wednesday.

Not quite October, 1987, but not good for investors, either.

[UpInArms]

9. daily dollar watch

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

Last trade 88.02 Change -0.12 (-0.14%)

Dollar Faces A Moment Of Truth

http://www.dailyfx.com/index.php?option=com_content&task=view&id=3648&Itemid=39

Market Outlook:


Dollar remains in a limbo as traders continue to price in the impact of another hurricane set to strike the US coast within next 36 hours. As the market continue to remain volatile, creating perfect trading conditions for the volatility and short term traders. However a long-term position trader such as this analyst advises to stay out until a clear direction is chosen by the market.

<snipping charts>

EUR/USD – Euro bulls continued their surprising attack against the greenback positions as single currency made its way above the 1.2200 handle during the latest bout of the anti-dollar sentiment. As the price action stalls around the 1.2253, a greenback defensive position established by the 23.6 Fib of the 1.3477-1.1869 USD rally, which is further being reinforced by the 50-day SMA, combined together make for a formidable line of defense for the dollar bulls. As the pair remains above the 1.2200 figure, an inability by the euro longs to push the EUR/USD higher only strengthen the outlook for the dollar bulls, which may use this retracement as a potential to establish new greenback positions. However a break above the 1.2253, will most likely see the dollar retreat to 1.2376, a level marked by the September 9 daily low, but given the outlook that the move against the dollar is a mere gesture, the next major move will most likely see the dollar push toward the 1.2100 handle. A sustained momentum to the downside will most likely see the pair braking below the 1.2041, a euro defensive position established by July 7 daily high, which currently acts as a gateway to the psychologically important 1.2000 barrier. 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 chance for a retrace.

<snip>

USD/JPY – Japanese Yen longs were on a warpath again as the pair remained confined to a narrow trading range and established a tweezer top reversal pattern that signals a short term pullback. A move to the downside will most likely see the yen longs have a tough time achieving a sustainable momentum below the 111.00 figure, as a move to the downside will instantly encounter 50-day SMA at 110.87, followed by the 20-day SMA at 110.51, both of which help the dollar to defend the psychologically important 110.00 handle that is further defended by the 38.2 Fib of the 104.18-113.74 USD rally. Given the unsustainably of the yen rally, a failure by the yen longs to make much headway below the 111.00 figure, will most likely give the battered greenback bulls a chance to retaliate and push the yen bulls above the 112.00 figure. If the dollar longs want to make their way toward the 113.00 figure, its imperative that they gather momentum above the 112.00 level and push the pair above the 112.62, an August 8 daily spike high. Indicators are diverging with momentum indicator above the zero line and MACD sloping upward toward the zero line, while overbought Stochastic gives Japanese yen longs a chance to push the pair lower.

...more...

[UpInArms]

10. Today's Reports (It's MaeveDay!):

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

Sep 22	8:30 AM		Initial Claims		09/17	-	450K	450K	398K	-	
Sep 22	10:00 AM	Leading Indicators	Aug	-	-0.3%	-0.3%	0.1%	-

[UpInArms]

16. Weekly Claims climb to 458,000 (You have to count last week's revision)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38617.3542191898-843298757&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) - On a surge of storm-related job losses, first-time claims for unemployment benefits rose by 8,000 to a seasonally adjusted 432,000 in the week ending Sept. 17, the Labor Department said Thursday. Initial claims were the highest since July 2003. About 103,000 of the new unadjusted claims were related to Hurricane Katrina, a department spokesman said. So far, about 214,000 claims related to Katrina have been filed in the three weeks since the storm struck. Meanwhile, the number of Americans collecting unemployment benefits increased by 88,000 in the week ending Sept. 10 to 2.67 million, the most since March.

8:29am 09/22/05 U.S. SEPT. 10 INITIAL CLAIMS REVISED TO 424,000 VS. 398,000

8:29am 09/22/05 KATRINA-RELATED JOBLESS CLAIMS FILINGS TOTAL 214,000

8:29am 09/22/05 U.S. WEEKLY CONTINUING JOBLESS CLAIMS UP 88,000 TO 2.67M

8:29am 09/22/05 103,000 INITIAL CLAIMS RELATED TO KATRINA: DOL

8:29am 09/22/05 U.S. WEEKLY INITIAL JOBLESS CLAIMS UP 8,000 TO 432,000

There's lots of number scrambling going on with the weekly claims - they are trying to put in a much lower number for this week by upping last week's claims behind the line.

[UpInArms]

18. The 97,000 increase in filings in w/e Sept. 10 was the most since 1992

http://www.marketwatch.com/news/story.asp?guid=%7B223A858F%2DB090%2D46F4%2DBB6A%2D4A08E778A9FC%7D&siteid=mktw

WASHINGTON (MarketWatch) -- On a surge of storm-related job losses, first-time claims for unemployment benefits rose by 8,000 to a seasonally adjusted 432,000 in the week ending Sept. 17, the Labor Department said Thursday.

Initial claims were the highest since July 2003.

About 103,000 of the new unadjusted claims were related to Hurricane Katrina, a department spokesman said. So far, about 214,000 claims related to Katrina have been filed in the three weeks since the storm struck. Read the full report.

The storm, likely the costliest in U.S. history, devastated the Gulf Coast region on Aug. 29, flooding much of New Orleans, which had more than 600,000 jobs before the storm.

Many of the jobless claims are being processed by unconventional methods, including mobile offices at shelters. Upward revisions are possible, the spokesman said.

Initial claims in the previous week were revised up by 26,000 to 424,000. The 97,000 increase in filings in the week ending Sept. 10 was the most since the summer of 1992.

...more...

"Ah'm gonna pick up whar ma daddy lef' off" - GWB - campaign 2000

[UpInArms]

36. U.S. Aug. leading indicators fall 0.2%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38617.4170415972-843306799&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) - A gauge of future economic activity declined in August for the second straight month, falling 0.2%, the Conference Board said Thursday. Five of the 10 leading economic indicators improved in August, while three declined. Consumer expectations was the biggest contributor to the decline in the index. Economists surveyed by MarketWatch were expecting the leading index to fall 0.3%. The coincident index increased 0.2% in August, while the lagging index fell 0.1%. The previously reported 0.1% increase in the leading index for July was revised to a 0.1% decline.

10:00am 09/22/05 U.S. AUG. LAGGING INDICATORS FALL 0.1%

10:00am 09/22/05 U.S. AUG. COINCIDENT INDICATORS UP 0.2%

10:00am 09/22/05 U.S. AUG. LEADING INDICATORS FALL 0.2% VS. 0.3% EXPECTED

Once again they have revised the previous LEI number from a positive to a negative - making this report look better than it is.

:argh:

[UpInArms]

37. More Info: U.S. leading indicators fall 0.2%

http://www.marketwatch.com/news/story.asp?guid=%7BE990E2D7%2D3660%2D45CA%2D9424%2D801A97E1287C%7D&siteid=mktw

WASHINGTON (MarketWatch) - A gauge of future economic activity declined in August for the second straight month, falling 0.2%, the Conference Board said Thursday.

Five of the 10 leading economic indicators improved in August, while three declined. Consumer expectations was the biggest contributor to the decline in the index.

Economists surveyed by MarketWatch were expecting the leading index to fall 0.3%. See Economic Calendar.

The index "began to lose a little momentum before the hurricanes and flooding," said Ken Goldstein, chief economist for the private economic research group.

Even before the storm, levels of business investment and hiring "reflect a level of caution about pricing and profit potential," Goldstein said.

...more...

[UpInArms]

41. Chicago Fed national activity index falls in Aug.

http://today.reuters.com/investing/financeArticle.aspx?type=economicNews&storyID=2005-09-22T140132Z_01_CHB000090_RTRIDST_0_ECONOMY-FED-CHICAGO-URGENT-REPEAT.XML

CHICAGO, Sept 22 (Reuters) - The Federal Reserve Bank of
Chicago on Thursday said its gauge of the national economy fell
in August, hurt mostly by weaker employment- and
housing-related indicators.


The Chicago Fed said its National Activity Index slipped to
0.10 in August from an upwardly revised 0.28 in July, initially
reported as 0.16.


The three-month moving average of the index was lower at
0.26 in August after a reading if 0.29 in July.


Still, any reading above zero for the three-month average
suggests economic growth is above its historical trend. The
average has shown above-trend growth for over two years.


The Fed said the only indicator to show some impact from
Hurricane Katrina in August was industrial production, which
rose less than expected. As a result, production-related
indicators made a small negative contribution to the index.

...more...

[JNelson6563]

12. Gold and Treasuries seeing big inflows

Well, not that I'm gloating or anything but look at gold go!! I just knew these mooks would run everything into the ground and it looks like more and more are getting a clue on that. The way Treasury yields are dropping is like a 40 pt. headline that reads: "Run for your lives!!!"

At this point I wouldn't invest in anything I can't carry with me if/when I flee the country. But hey, I've been pretty skittish all along, ever since Team Bush stole the WH the first time.

Batton down the hatches Marketeers. We're all in this together!

Julie

[UpInArms]

21. Gold prices touch a high above $476 an ounce

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7BF1F68BC6-1C49-4F58-9842-DDA66320B4AF%7D&

NEW YORK (MarketWatch) -- December gold climbed as high as $476.50 an ounce in morning trade and was last at $473.60, up $1. Futures prices have been trading at their highest levels in nearly 18 years as traders bet that high energy prices will pressure the economy. "$500 Gold is looking like a shoe-in here as the December contract hit $479 overnight," said Dale Doelling, chief market technician at Trends In Commodities. "This market needs to take a breather at some point or we're going to see another ambush in the pits and it won't be pretty," he said, noting that he's "looking for some kind of consolidation here."

[UpInArms]

22. Treasurys dip on lower-than-expected weekly jobless claims

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B9C9972FD-0F80-4413-BC8D-F6FC58985CB8%7D&

NEW YORK (MarketWatch) -- Treasurys moved lower, pushing yields higher, following the release of weekly jobless claims data, showing fewer people than expected filing for unemployment benefits. The Labor Department said claims rose by 8,000 to 432,000 in the latest week, below economist expectations of about 454,000. About 103,000 of that total were related to Katrina, a department spokesman said. A total of 214,000 claims related to the hurricane have been filed in the last three weeks. Excluding those filings, claims are steady or slightly lower than pre-Katrina levels, suggesting the storm had no major ripple effect on labor markets across the U.S. The 10-year note was last up 1/32 at 100 21/32, yielding 4.169%.

Don't you just love that spin??? :crazy:

[JNelson6563]

26. If this continues

then I'd look to see gold continue going up in value.

Julie

[UpInArms]

13. Katrina Relief? Just Put It on the Tab!

http://www.businessweek.com/bwdaily/dnflash/sep2005/nf20050922_6947_db045.htm

How will Washington pay for the damage wrought by the hurricane? The same way it pays for everything else these days: By borrowing

In the wake of Hurricane Katrina, and with a wary eye on Hurricane Rita as she churns through the Gulf of Mexico, lawmakers are looking at a staggering short-term bill -- well in excess of $100 billion. Those costs, plus another $100 billion for Iraq, will put major short-term pressure on the federal deficit. And some lawmakers are insisting that hurricane relief should be paid for, either by cutting government spending or raising taxes.

Senator John McCain (R-Ariz.) wants to dump the massive new Medicare drug benefit, which seniors are scheduled to start signing up for in November. House conservatives want to kill about $24 billion in individual highway projects that were included in this year big transportation law. The White House says Congress should approve its proposals to trim Medicaid spending. Democrats want to roll back the Bush tax cuts on capital gains and dividends. And everybody wants to cut government waste.

It isn't going to happen. Oh, Congress may nip some here and tuck a bit there. Some lawmakers may offer to delay a construction project or two -- only for a year, mind you. But a GOP Congress isn't going to raise taxes. Pols won't trim Medicaid. Indeed, they'll expand the program to help hundreds of thousands of homeless and jobless people on the Gulf Coast.

WHAT PRIVATIZATION? And Medicare? Bush not only won't delay the program, the White House is planning a splashy rollout of the plan within the next few days. It is, Bush strategists figure, their best chance in weeks to distract the public from the unrelenting run of grim news -- from New Orleans to Baghdad. Trouble is, every time the White House gets ready for Bush's big announcement, another hurricane pops up on the radar screen.

Of course, some costly Bush initiatives are floundering. His effort to permanently repeal the estate tax has gone aground. His multi-trillion dollar plan to remake Social Security has long since sunk beneath the waves. But abandoning ideas that would have increased deficits is not the same as paying for unexpected short-term costs.

...more...

[UpInArms]

14. Globe union sees greed in (newspaper reporter) cuts

http://business.bostonherald.com/businessNews/view.bg?articleid=103678

The Boston Globe's employee union has issued a call to arms to protest proposed job cuts and what it calls rampant ``corporate greed'' on a par with ``Enron'' and excessive executive pay at the New York Times Co.

In a statement issued to the Herald, the president of the 1,200-member Globe newspaper union also took swings at Boston's self-described ``pinata'' – James Kilts, chief executive of the Gillette Co. and a recent addition to the board of directors at the Times Co., the Globe's corporate parent.

``We are certain this (staff-reduction) action has been embraced by Gillette's Jim Kilts,'' said Dan Totten in a statement.

In June, when the Gillette boss joined the Times board, the Globe union wrote a letter in protest saying ``the appointment of Kilts raises the obvious question if he will find profits by cutting employees.''

<snip>

Totten blasted the staff cutbacks at a time when Times publisher Arthur Sulzberger Jr. ``takes a limousine to work that has his name emblazoned on it,'' and top executives take home millions in compensation.

...more...

[UpInArms]

15. DELTA TO CUT UP TO 9,000 JOBS BY END OF 2007

8:29am 09/22/05 DELTA: PLANE CUTS SPEED MOVE TO SIMPLIFY FLEET

8:28am 09/22/05 DELTA REJECTS LEASES ON 40 PLANES, WILL CUT ANOTHER 80

8:27am 09/22/05 DELTA: 9,000 CUTS EQUAL A 17% OVERALL STAFF REDUCTION

8:26am 09/22/05 DELTA $930M SAVINGS: $325M FROM PILOTS, $605M NON-PILOTS

8:26am 09/22/05 DELTA EMPLOYS 52,000 PEOPLE

8:24am 09/22/05 DELTA SEEKS $930M SAVINGS FROM 3 EMPLOYEE AREAS

8:25am 09/22/05 DELTA $930M SAVINGS IN JOB, OVERHEAD CUTS; MORE PRODUCTIVITY

8:22am 09/22/05 DELTA STAFF-PAY CUTS EXCLUDE THOSE EARNING $25K OR LESS

8:23am 09/22/05 DELTA TO ENHANCE PROFIT SHARING FOR ALL EMPLOYEES

8:21am 09/22/05 DELTA TO CUT PAY AT ALL LEVELS OF MANAGEMENT

8:22am 09/22/05 DELTA TO CUT CEO GRINSTEIN PAY BY 25%

8:22am 09/22/05 DELTA TO REDUCE PAY SCALES 7%-10% FOR MOST LINE STAFF

8:20am 09/22/05 DELTA AIR SEEKS $3 BILLION ADDITIONAL SAVINGS BY END '07

8:21am 09/22/05 DELTA TO CUT 7,000-9,000 JOBS BY END OF 2007

[Zynx]

17. We should just nationalize the airlines.

Then use government financing to buy all new planes since we are using old, fuel inefficient pieces of garbage right now in many cases. Resort to only about four different types of planes to decrease the amount of training mechanics need and hopefully the number of mechanics. Sigh...a man can dream.

[RawMaterials]

24. Or just let the inefficient old legacy carriers die off

and have them be replace by smaller more efficient companies. isn't that the whole point of capitalism, instead we have this greedy hybrid capitalism for individuals and corporate well-fair.

:puke:

[Zynx]

30. In theory if they all did fuel hedging they might be in better shape.

However, only Southwest and JetBlue do that IIRC and the big carriers were convinced oil would stay around $25 a barrel.

[ret5hd]

35. Not entirely true...one that i know of (AA)...

had hedged very well...then sold them to help finance the purchase of TWA...JUST BEFORE 9-11. Talk about timing.

[RawMaterials]

48. NASA put out a report few years back

about the air travel in the future and it basically said the hub and spoke system was old obsolete and not very practical. they predicted a system of planes that would only fly about 4-8 people at a time and you could fly just about anywhere you wanted direct.

the best i could find is this


http://www.forbes.com/2003/11/20/cz_rk_1120aviation.html


"A resurgence of personal aviation will be a major theme of the second century of flight. Personal aviation will once again become a viable alternative to commercial airline travel. The new generation of very light jets will offer all the speed and safety of airline travel at a cost far below that of today's private jets. These aircraft are giving rise to a new industry known as 'air taxis,' where on a few hours notice, a customer can reserve a small, efficient jet, be picked up at the location closest to him and flown directly to the airport nearest his destination on the schedule that works best for him. These for-hire services will cost little more than a full-fare coach ticket on many routes and will provide access to thousands of locations not served at all by airlines today.

[ret5hd]

53. i would compare this solution to...

dismantling the rail/streetcar/public transportation system in the early part of the 20th century: short term gain/long term folly.

don't get me wrong. i'm not defending the inefficiencies of todays large carriers...i'm more in the "nationalize" camp.

[Zynx]

68. Well, that's a special case. n/t

[UpInArms]

70. Delta has cut 33,000 jobs since 9/11

http://www.wcpo.com/news/2005/local/09/22/delta.html

Delta Air Lines says it will cut up to 9,000 jobs and reduce employee pay to rein in costs in bankruptcy.

It's unclear what that will mean for the Cincinnati area. Stay with 9News for more details later today.

The nation's third-largest airline wants an additional $3 billion worth of annual cost savings by the end of 2007.

CEO Gerald Grinstein will take a 25 percent pay cut and all other executives will take 15 percent pay cuts.

The job cuts are on top of roughly 24,000 that Delta has announced since 2001, when terrorist attacks severely hurt the major airlines' financial standing.

Delta filed for bankruptcy protection last week.

The Atlanta-based carrier has lost nearly $10 billion since January 2001.

...more...

[UpInArms]

71. Airline industry may have most job cuts since '01-Challenger

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38617.5374497685-843334944&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The airline industry has eliminated more than 44,000 workers in 2005 and is on track to have its biggest year of jobs cuts since 2001, according to data released Thursday by Challenger, Gray & Christmas Inc. Bankrupt carrier Delta Air Lines Inc. (DAL) is eliminating 9,000 workers, while Northwest Airlines Corp. (NWACQ) said yesterday that it will cut 1,400, bring the year-to-date total to 44,098, according to Challenger -- 39% higher than all of 2004. In 2001, 99,969 airline jobs were lost.

[54anickel]

19. Oil prices ‘will not dent global growth'

http://news.ft.com/cms/s/523ccb50-2ae5-11da-817a-00000e2511c8.html

World economic expansion remains on track despite the rising oil price and a subsequent worsening of global trading imbalances, according the International Monetary Fund.

The IMF's forecast for global growth of 4.3 per cent this year and next is virtually unchanged from its April forecast. Announcing the modest reduction in its twice-yearly World Economic Outlook, the IMF said the impact of recent leaps in the price of oil on growth and inflation had been “surprisingly moderate”.

But the high oil price remained a “clear and present danger” for growth and inflation, Raghuram Rajan, IMF chief economist, said. In particular, high energy prices would hurt consumer confidence and lead to accelerating inflation.

The fund predicted the world economy had the momentum to withstand a rise in market-determined interest rates from very low levels, but warned that rising inflation expectations could lead to a sharp tightening of financial market conditions. It also warned that global growth remained overly dependent on the US and China, and growing global current account imbalances were a key medium-term risk.

There was a further immediate danger, it said, from rising protectionist pressures, particularly in the US and Europe, as a result of trade imbalances and fear of competition from emerging market countries.

more...

[hatrack]

56. If high prices won't dent growth, why are they a "clear & present danger?"

Riddle me this, Mr. Econo-mist?

Are higher energy prices are problem or are they not?

[UpInArms]

59. here's some spew on that

(and it's really really (???) the environmentalists fault :eyes: )

http://www.marketwatch.com/news/story.asp?guid=%7B2CB1C349%2D01E8%2D42A9%2DA80D%2DB8355CEA8319%7D&siteid=mktw

excerpt:

"If $60/ barrel is perceived to impede growth, this is probably also a level that promotes serious longer tem action of alternative forms of energy, conservation, and the search for new supplies."

Outstanding Investments, an energy-focused service, has a less sanguine view. It said recently:

"America's energy infrastructure is cracked and strained, patched together with duct tape, outdated in some areas and pushed to the breaking point in others. Power grids are in dire need of upgrade and replacement; fuel distribution networks are inadequate and subject to disruption; desperately needed refineries and liquid gas terminals have fallen victim to excessive environmental regulation, stifling government procedure and, worst of all, a nearly impenetrable wall of NIMBY/ BANANA type politics. (Not In My Back Yard, Build Absolutely Nothing Anywhere Near Anybody.)"

...more...

[nolabels]

65. All depends what the commodity and shortage of what

Too many for too few jobs, cheap labor

Why do you think the fat cats like monopolies?

Not as much of problem if your car gets 50+ miles to the gallon, and or your city has mass transportation.

The question that should be asked is if conservatives still think chimpy is really a conservative :rofl:
(in the true sense of the word of course)

[Usrename]

89. Noooo, not at all. He's compassionate!

:rofl::rofl::rofl:

[54anickel]

20. Fiddle About

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=46666

Interest rates are dialed by central banks worldwide into the black box that we call the global economy. The main vocation of central bankers is fiddling about with interest rates.

You and I are trapped in this black box, for our lives exist in the real world, not in a conceptual intellectual exercise driven by interest rates. Central bankers have forgotten entirely about the real world. They are absorbed with their wizard-like mastery of both short-term and long- term rates.

It’s commonly known in finance that short-term interest rates are sculpted through individual central banks setting their respective countries’ discount rates. Long-term rates too are under central bank management, but they moderated by global central bank cooperation.

Both ends of the yield curve, long and short term, are under management to common global interests. Long rates are exposed to the risk of derivatives and follow-on failures of settlement. These rates are the beast, the dragon or chimera with which our central bank wizards are most concerned.

snip>

Nobody really knows how the black box works. It is commonly known, however, that as central banks fiddle about, jobs pop up in one place and disappear elsewhere, troops are deployed, oil gets pumped, people get fed, cars get built, and paper pushers everywhere falsely believe they are doing something productive.

more...

[UpInArms]

27. oh my! now I have a tune running through my head

from "Tommy" (The Who)

Fiddle About

Uncle Ernie:

I'm your wicked Uncle Ernie
I'm glad you won't see or hear me
As I fiddle about
Fiddle about
Fiddle about !

Your mother left me here to mind you
Now I'm doing what I want to
Fiddling about
Fiddling about
Fiddle about!

Down with the bedclothes
Up with the nightshirt!
Fiddle about
Fiddle about
Fiddle about !

Fiddle about
Fiddle about
Fiddle about !

You won't shout as I fiddle about
Fiddle about
Fiddle about
Fiddle about !
Fiddle about
Fiddle about
Fiddle about !
Fiddle about
Fiddle about
Fiddle about !
Fiddle about
Fiddle about
Fiddle about !
Fiddle, fiddle, fiddle.
Fiddle, fiddle, fiddle.
Fiddle, fiddle, fiddle.
Fiddle, fiddle, fiddle...FIDDLE!

[UpInArms]

25. pre-opening blather

9:13AM: S&P futures vs fair value: -1.6. Nasdaq futures vs fair value: -3.0.

8:59AM: S&P futures vs fair value: -1.2. Nasdaq futures vs fair value: -2.0. The cash market remains poised for a lower open. In the absence of a separate catalyst, and with Hurricane Rita's wrath imminent, crude (68.01 +1.21) still sits center stage and overshadows the better-than-expected initial claims report, upbeat earnings news from GIS, KBH and BBBY, and a lack of profit warnings... As a reminder, August Leading Indicators (consensus -0.3%), will be released at 10:00 ET...

8:33AM: S&P futures vs fair value: -2.9. Nasdaq futures vs fair value: -4.5. Last week's jobless report checked in at 432K (consensus 450K), but its Katrina-induced 8.5 % jump did not shock traders and rose less than the expected 13.1%... Futures trading holds steady and continues to point towards a lower start for the cash market. Despite positive earnings reports from KB Homes (KBH) and General Mills (GIS), traders' contined focus on Rita and oil's upward move (currently at $68.09/bbl) extends the downbeat sentiment...

8:00AM: S&P futures vs fair value: -2.3. Nasdaq futures vs fair value: -4.0. Stocks are set to open lower today, with the impending arrival of Hurricane Rita to Texas, and concerns about its impact on refining/oil production operations, weighing on sentiment... Crude has risen nearly 2% in early trading to $68.10/bbl and... Separately, last week's initial claims report (consensus 450K) will hit the wires at the bottom of the hour.

[54anickel]

29. Dang, looks like another interesting day and I'm gonna miss most of it!

Gotta head out the door to earn me a few more of them worth less dollars. :hi:

[UpInArms]

32. have a great day 54anickel!

Hopefully, we'll "see" you later :hi:

[RawMaterials]

28. Rising prices, fall fashions keep shoppers out of malls

NEW YORK — Since mid-July new fall fashions, such as shrunken brown-velvet jackets and Victorian-style blouses, have been gathering dust on racks at the nation's retailers.

It's now almost the end of September, and for many merchants a combination of hot weather, subdued fashions in dark colors, high gasoline prices and the ripple effects of Hurricane Katrina have made shoppers stay away from clothing stores.

If sales don't pick up soon, retailers will be forced to cancel some future fall orders, fueling more concern about consumer spending for the holiday season.

snip...

None of this bodes well for spending, which has been one of the engines driving the nation's economy.

"I am worried that without some positive offset, what we will have is a continuation of an uneven performance by the retailers, one that is trending lower and lower," said Michael Niemira, chief economist at the International Council of Shopping Centers. On Tuesday, he pared his September sales forecast to a 3.0 percent gain, from 3.5 percent, after a sharp decline last week.

snip..

The Associated Press-Ipsos poll, conducted Friday through Sunday, revealed that 65 percent of the 1,000 people surveyed expected that gasoline price increases will cause financial hardship in the next six months, with 39 percent of that group describing it as "serious." Only 34 percent said it would not cause financial hardship. One percent said they were not sure.

As for higher food prices, 44 percent of those polled said it would cause financial hardship in the next six months, compared with 55 percent, who said it would not. One percent of the respondents said they weren't sure.

The survey also found that 58 percent polled expected the sharp increase in gasoline prices after Hurricane Katrina will be long-term, while 41 percent thought it would be short-term. One percent said they weren't sure.

snip..

The good news for consumers will be that the nation's retailers are expected to be more aggressive about discounting from the start of the holiday season. But they better be very generous for shoppers like Allocca.

"I am looking for more than 40 percent off," the 35-year-old said.



http://seattletimes.nwsource.com/html/businesstechnology/2002511701_consumeroutlook22.html


more depressing news for the normal people :eyes:

[UpInArms]

31. 9:43 EST casino wheels landing in the red

Dow 10,361.63 -16.40 (-0.16%)
Nasdaq 2,094.17 -12.47 (-0.59%)
S&P 500 1,207.60 -2.60 (-0.21%)
10-Yr Bond 4.181 -0.07 (-0.17%)

NYSE Volume 152,505,000
Nasdaq Volume 127,834,000

[UpInArms]

34. blather

9:45AM: The market started the day on a mixed note, but now, all of the major indices are in negative territory, extending the bearish bias of the last three sessions. With traders fearing a raging Rita, crude prices have jumped 1.1% (to $67.62/bbl) on top of yesterday's 1.0% rise, and natural gas futures have also hit record highs as the storm threatens refining infrastructure...

Helping somewhat to counter the early tone have been upbeat earnings reports from General Mills, which beat EPS estimates by $0.12, KB Homes, which posted EPS $0.16 ahead of expectations, and Bed Bath & Beyond, which flew in $0.01/share above estimates...

[UpInArms]

33. Check-Kiting Scheme Continues: Fed adds reserves through overnight system

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-22T133559Z_01_N22366223_RTRIDST_0_MARKETS-FED-OPERATIONS-UPDATE-2.XML

NEW YORK, Sept 22 (Reuters) - The Federal Reserve said on Thursday that it was adding temporary reserves to the banking system through overnight system repurchase agreements.

Earlier, the Fed added $9.0 billion in temporary reserves to the system through 14-day system repurchase agreements.

The benchmark federal funds rate last traded at 3.75 percent, the Fed's current target for the rate.

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

[UpInArms]

44. More Scheming: Fed adds reserves by buying coupons

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-22T145636Z_01_N22379344_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Sept 22 (Reuters) - The Federal Reserve said on Thursday that it was adding permanent reserves to the banking system by buying coupons.

The Fed said it was buying coupons for delivery on Friday, September 23 with maturity dates ranging from June 15, 2009 to January 15, 2010. The one exclusion was the 11.75 percent coupon maturing November 15, 2014.

The benchmark federal funds rate last traded at 3.75 percent, the Fed's current target for the rate.

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

[UpInArms]

46. Printing Presses Run Full-Speed: U.S. Treasury Dept to sell $32 bln bills

U.S. Treasury Dept to sell $32 bln bills on Monday

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-22T150158Z_01_WBT003867_RTRIDST_0_ECONOMY-BILLS-URGENT.XML

WASHINGTON, Sept 22 (Reuters) - The U.S. Treasury Department said on Thursday it will sell $17 billion of three-month bills and $15 billion of six-month bills on Monday, Sept. 26.

The bills will be issued on Thursday, Sept. 29.

Proceeds from the sale will be used to refund an estimated $33.02 billion of publicly held bills maturing Sept. 29 and to pay down about $1.02 billion of debt.

The three-month bills mature on Dec. 29, while the six-month bills mature on March 30.

Treasury said $4.90 billion of the three-month bills can be excluded when bidders calculate their net long positions. The net long reporting threshold for the three-month bills is $5.95 billion and for the six-month bills it is $5.25 billion.

...more...

[UpInArms]

38. As a Budget Storm Gathers, Bush Ignores Fiscal Forecasts

(free registration or try www.bugmenot.com)

http://www.forward.com/articles/4012

Ever since the Bush administration came to office in January 2001, it has repeatedly expressed overly optimistic views of the future. No sooner are the sunny pronouncements out of their mouths, it seems, that disaster strikes.

This may be the first president who bases the defense for his performance on all the bad things that have happened on his watch. The White House argument seems to be that it is doing surprisingly well — once you take into account the 2001 recession, the September 11 terrorist attacks, the breaching of the levies in New Orleans and the quagmire in Iraq.

The common thread running through all of these disasters is the administration's failure to consider in advance the downside contingencies of history. The same pattern, not so coincidentally, applies to President Bush's economic policy, particularly the budget deficit.

<snip>

In January 2001, the government forecasted that the fiscal surpluses that had been inherited from the preceding administration would continue as far as the eye could see. Among other reasons for this, their forecast of the future economic growth rate did not allow for the likelihood that someday there would be a recession and a consequent decline in tax revenues.

<snip>

Already by August 2001, the Bush administration had given away so much money in tax cuts — without the positive effect on growth and revenues that had been predicted by supply-side economics materializing — that professional forecasts showed that the surpluses were about to disappear.

But most of the public had yet to notice, and soon enough came the September 11 terrorist attacks. The White House was able to give Americans the impression that this tragedy was the source of the renewed budget deficits. Never mind that that the lost growth and tax revenue pre-dated September 11 rather than following it.

...more...

[UpInArms]

39. I.M.F. Warns of Imbalance in World Consumption (because of U.S.)

http://www.nytimes.com/2005/09/22/business/22outlook.html

WASHINGTON, Sept. 21 - The United States is likely to experience slower economic growth next year, and its rapidly rising foreign debt is at the heart of dangerous global imbalances, the International Monetary Fund said Wednesday.

The fund said that global economic growth had become too dependent on a handful of countries, led by the United States, that consume far more than they produce. That imbalance, it warned in its semiannual World Economic Outlook, could lead to a wrenching correction.

In an evident reference to the United States, with its big budget deficits and relentless consumer spending, the I.M.F. warned that the world's consumption is "fueled by increasingly unsustainable fiscal stimulus, as well as housing prices that are ignoring the laws of gravity."

<snip>

The United States' total trade deficit is expected to approach $700 billion this year and to be around 6 percent of the gross domestic product. Put another way, the United States is soaking up a record share of the world's savings and investment money. As it has in the past, the fund said the American financial imbalance had been aggravated by the large budget deficits.

...more...

[UpInArms]

40. 10:48 EST numbers and blather

Dow 10,393.47 +15.44 (+0.15%)
Nasdaq 2,104.19 -2.45 (-0.12%)
S&P 500 1,211.49 +1.29 (+0.11%)
10-Yr Bond 4.185 -0.03 (-0.07%)

NYSE Volume 655,040,000
Nasdaq Volume 471,910,000

10:05AM: The major indices are trading in mixed fashion, with seven of ten economic sectors currently in negative territory... Financials (-0.8%) is the strongest impediment to upward advances that have been spearheaded by Energy (+1.2%), which, unsurprisingly, leads as it benefits from rising energy prices... The Utilities sector is off 0.8% and is the worst-performing area in the early-going.... Spurred by KB Homes' (KBH 72.05 +1.33) 1.9% jump, Homebuilders are acting as a source of support for the Consumer Discretionary (+0.5%)...NYSE Adv/Dec 814/1886, Nasdaq Adv/Dec 634/1796

[UpInArms]

42. 10:58 EST blood on the floor

Dow 10,375.88 -2.15 (-0.02%)
Nasdaq 2,099.89 -6.75 (-0.32%)
S&P 500 1,209.61 -0.59 (-0.05%)
10-Yr Bond 4.181 -0.07 (-0.17%)

NYSE Volume 705,712,000
Nasdaq Volume 508,951,000

[UpInArms]

45. SnowJob blows at the IMF for *Co's other financial fiasco - Iraq

US Treasury's Snow urges IMF,Iraq debt talks

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-22T144530Z_01_WAT003979_RTRIDST_0_IRAQ-USA-DEBT-URGENT.XML

WASHINGTON, Sept 22 (Reuters) - U.S. Treasury Secretary John Snow said on Thursday he hopes the International Monetary Fund and Iraq can soon begin talks on a new loan deal to help stabilize the country's fragile economy.

"We would hope that later this week the next milestone would be reached with the IMF, and the IMF, with Iraq, would be able to announce that they're moving into the negotiations phase of the standby agreement," Snow said before meeting with Iraq's Finance Minister Ali Allawi and Central Bank Governor Sinan al-Shabibi.

The IMF, which gave Iraq a $436 million emergency loan last year, has urged Iraq to secure debt relief from government and private creditors.

...short blurb...

[Roland99]

47. How about Bremer just coughs up the $8.8 billion?

[UpInArms]

49. would Bremer (formerly associated with Kissinger) have to

give up his "Medal of Freedom"?


Paul Bremer received a Presidential Medal of Freedom in December for his work in Iraq.

http://edition.cnn.com/2005/WORLD/meast/01/30/iraq.audit/

excerpt:

"Severe inefficiencies and poor management" by the Coalition Provisional Authority has left auditors with no guarantee the money was properly used," the report said.

"The CPA did not establish or implement sufficient managerial, financial and contractual controls to ensure that funds were used in a transparent manner," said Stuart W. Bowen Jr., director of the Office of the Special Inspector General for Iraq Reconstruction.

The $8.8 billion was reported to have been spent on salaries, operating and capital expenditures, and reconstruction projects between October 2003 and June 2004, Bowen's report concluded.

The money came from revenues from the United Nations' former oil-for-food program, oil sales and seized assets -- all Iraqi money. The audit did not examine the use of U.S. funds appropriated for reconstruction. (Full story)

Auditors were unable to verify that the Iraqi money was spent for its intended purpose. In one case, they raised the possibility that thousands of "ghost employees" were on an unnamed ministry's payroll.

...more...

[Roland99]

50. Nah...in fact, I expect ol' Iyad to get his own soon.

[UpInArms]

51. 11:33 EST redder still

Dow 10,367.68 -10.35 (-0.10%)
Nasdaq 2,098.55 -8.09 (-0.38%)
S&P 500 1,208.42 -1.78 (-0.15%)
10-Yr Bond 4.172 -0.16 (-0.38%)

NYSE Volume 897,991,000
Nasdaq Volume 647,707,000

11:30AM: Little changed since the previous comment, as the market still hovers around the flat line... While the majority of the blue chip average's components remain underwater, support from a trio comprised by Caterpillar (CAT), McDonald's (MCD), and Exxon Mobil (XOM) currently outweigh the laggards' impact... As had been the case with Katrina, CAT shares have gained as traders foresee Rita-related rebuilding profits, helping to minimize the Industrials sector's 0.1% decline today...

McDonald's, for its part, continues to enjoy buying interest after announcing the upcoming IPO of its Chipotle brand, while Exxon continues to rise alongside crude's climb, adding to integrated oil's 34% year-to-date gain.. NYSE Adv/Dec 1150/1915, Nasdaq Adv/Dec 1063/1692

11:00AM: The indices vacillate around the unchanged mark, but the Consumer Discretionary sector (+0.9%) continues to advance and trails only Energy (+1.2%) on the top-performers list. Aside from surging hombuilders (+3.4%), retailers (+1.4%) are pacing the way higher and are working to pare some of their 8.3% year-to-date loss... Bed Bath & Beyond's (BBBY 38.27 +0.85) better than expected Q2 earnings report has triggered its 2.3% gain while CVS (CVS 28.18 +0.36) is benefitting from CSFB initiating coverage with an Outperform rating...

Solid buying interest in Best Buy (BBY 41.60 +0.60) and Circuit City (CC 16.20 +0.20) lend further support... Separately, Leading Indicators for August checked in at -0.2% (consensus -0.3%), but had no real impact on the proceedings...NYSE Adv/Dec 1177/1784, Nasdaq Adv/Dec 1071/1626

(updated blather on edit)

[UpInArms]

54. S&P downgrades Delta-related synthetic (? plastic? credit?) issues

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-22T154937Z_01_WNA8703_RTRIDST_0_AIRLINES-DELTA-SP-URGENT.XML

NEW YORK, Sept 22 (Reuters) - Standard & Poor's on Thursday
cut its ratings on certain corporate-backed trust certificates
of Delta Air Lines Inc. (DAL.N: Quote, Profile, Research), citing a previous downgrade of
Delta's unsecured rating to default.


The new downgrades apply to synthetic transactions linked
to Delta Air Lines' 8.3 percent senior unsecured notes due on
Dec. 15, 2029, S&P said.




S&P last week cut its ratings on Delta to default, citing
the airline's filing for Chapter 11 bankruptcy protection.

Ewwww! I guess I would hate to have Delta owing me any money these days :eyes:

[UpInArms]

57. 12:03 more faith in numbers lost

Dow 10,363.86 -14.17 (-0.14%)
Nasdaq 2,096.71 -9.93 (-0.47%)
S&P 500 1,207.34 -2.86 (-0.24%)
10-Yr Bond 4.173 -0.15 (-0.36%)

NYSE Volume 1,051,967,000
Nasdaq Volume 741,967,000

[ozymandius]

58. lunchtime check in - red stock indeces

12:06
Dow 10,367.20 -10.83 (-0.10%)
Nasdaq 2,096.98 -9.66 (-0.46%)
S&P 500 1,207.54 -2.66 (-0.22%)
10-Yr Bond 41.76 -0.12 (-0.29%)
NYSE Volume 1,066,211,000
Nasdaq Volume 750,182,000

[ozymandius]

60. 12:10 blood and blather

Dow 10,357.89 -20.14 (-0.19%)
Nasdaq 2,094.69 -11.95 (-0.57%)
S&P 500 1,206.35 -3.85 (-0.32%)
10-Yr Bond 41.78 -0.10 (-0.24%)
NYSE Volume 1,084,795,000
Nasdaq Volume 763,499,000

12:05PM: The market has spent the morning trading within a tight range surrounding the flat line, unable to shake a bearish bias that threatens to mark the fourth straight losing session... Hurricane Rita's impending arrival to the Texas coast, which may come as early as tomorrow, has the Katrina-roiled market on edge and fearing further refining disruption that will exacerbate supply shortages... As such, crude oil has extended its uptick, currently gaining 1.3% on top of yesterday's 1% increase, and, along with natural gas futures, has been the focal point of the Rita watch...

A batch of positive news on the earnings front, coupled with some relief that no profit warnings of note have hit today's wires, have worked work to mitigate selling interest...

General Mills, which beat EPS estimates by $0.12, KB Homes, which posted EPS $0.16 ahead of expectations, and Bed Bath & Beyond, which flew in $0.01/share above estimates have served as sources of support, but, ultimately, their impact has not been able to counter the weakness in the financial and tech sectors. With insurance issues receiving an extended blow on Rita concerns today, and with banks and brokers continuing to face selling pressure, the financial sector is off 0.5%... Technology, meanwhile, matches that loss, succumbing to broad-based pressure from semis (-0.6%), diskdrives (-1.9%), and software (-0.8%) that outweighs support from bellwethers like Dell (DELL), Texas Instruments (TXN), Qualcomm (QCOM), and Oracle (ORCL), which is slated to report earnings tonight...

[UpInArms]

62. hiya Ozy!

there's that coin again!

:hi:

[Tace]

79. What Is That? A Mole Coming At You Underground?

It doesn't look like a sovereign issue.

[ozymandius]

61. Oil Prices Near $68 As Rita Eyes Texas

NEW YORK - Crude oil prices neared $68 per barrel Thursday as Hurricane Rita closed in on Texas, raising fears it could cripple major production facilities largely untouched by Hurricane Katrina three weeks ago and drive up at-home energy costs this winter.

Forecasters said the Category 5 hurricane weakened slightly early Thursday, and could slow further by the time it makes landfall Saturday morning. But even with lesser winds, Rita — currently headed for the heart of U.S. oil production — still poses a serious threat to capacity, analysts say.

-cut-

"We have to keep in mind that we were operating at about 100 percent before Katrina," said Sheraz Mian, senior oil analyst with Zack's Investment Research. "If you take out another 10 percent of capacity, we are talking about some serious distillation capacity coming offline.

"We are faced with perhaps the worst possible situation that planners and policy makers could image," Mian said.

more

[bushwackedtwice]

63. $$ made from others pain

These blood sucking co's that repair oil rigs and cleans up areas are the only ones making money. This needs to stop, let those effected repair and cleanup. Haliburton is the worst.

[ozymandius]

64. Welcome to DU and the stock watch bushwackedtwice!

:hi: Ozymandius

[UpInArms]

66. Insurers, reinsurers drop again on Rita (raking in premiums good - paying

claims bad)

http://www.marketwatch.com/news/story.asp?guid=%7B28CD3D80%2DA43A%2D4AFE%2D826A%2D4B278829D1AC%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Shares of insurers and reinsurers fell again on Thursday as investors fretted that Hurricane Rita will hand the industry another hefty loss less than a month after Katrina struck.

Allstate Corp. (ALL: news, chart, profile) , the second-largest U.S. personal lines insurer, fell 2% to $50.79 in morning trading.

Ace Ltd. (ACE: news, chart, profile) , a leading Bermuda-based insurer and reinsurer, declined 2.2% to $43.08 and St. Paul Travelers (STA: news, chart, profile) , which sells commercial and personal lines insurance, dropped 1.2% to $41.49.

Reinsurers fell more on expectations they'll pay a big portion of industry losses from Rita just as they're dealing with the massive financial blow dealt by Katrina.

...more...

[UpInArms]

67. PIEHOLE ALERT: "Hard Work" Pony on the loose!

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38617.5239669676-843331398&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- President Bush on Thursday said it would be premature to detail potential spending cuts that could be used to offset federal spending for relief and rebuilding efforts in the wake of Hurricane Katrina. "It's hard to work with Congress until we fully understand the size and scope" of the rebuilding effort, Bush told reporters at the Pentagon. Some lawmakers have estimated the federal tab could reach $200 billion or more, while other officials have said it's too early to estimate. Bush, who has ruled out raising taxes, said last week that some federal programs would have to face cuts.

[UpInArms]

69. 60% disapprove of *Co's handling of the economy

http://americanresearchgroup.com/economy/

excerpt:

When it comes to Bush's handling of the economy, 34% approve and 60% disapprove.

<snip>

While 53% of Americans say the national economy is getting worse, which is unchanged from August, 11% say the national economy is getting better, which is down from 29% in August. When asked about the national economy a year from now, 54% say it will be worse, compared to 44% in August.

Looking at their personal financial situations, 8% of Americans say their personal financial situations are getting better, compared to 24% in August. A year from now, 15% say their personal financial situations will be better, compared to 27% in August.

...more...

[plasticsundance]

72. What's Holding Gold Back?

How? Remember what I said about producer hedging above? The key component of GATA's claims is that the central banks are lending gold to bullion banks and still keeping the gold on their books as reserves. In these "swaps," each bar of gold essentially gets counted twice, exerting a negative pressure on the gold price when the borrowed gold gets sold on the open market. There's no question that bullion banks are selling borrowed gold -- what makes this the stuff of a "conspiracy" is that GATA says the central banks are not being truthful about whether or not they are counting gold not actually in their vaults as reserves.

Specifically, GATA Chairman Bill Murphy says the central banks are reporting an aggregate of about 31,000 tonnes of gold held in reserve, but only have about half as much in their vaults. The amount of gold they actually have on hand may be as little as 14,000, or even 12,000 tonnes.

Murphy says the International Monetary Fund claims that it recommends that swapped gold be excluded from reserve assets. However, some central banks report otherwise. For example, a footnote on the central bank of the Philippines' Web site contradicts the IMF's claim: “Beginning January 2000, in compliance with the requirements of the IMF's reserves and foreign currency liquidity template...Gold swaps undertaken by the BSP with non-central banks shall be treated as collateralized loans. Thus, gold under the swap arrangement remains to be part of reserves...”

The European Central Bank, the Bank of Finland, the German Bundesbank, and the Bank of Portugal also confirmed in writing to GATA that swapped gold remains a reserve asset as per IMF regulations. So clearly there is a disconnect here.

http://goldmoney.com/en/commentary/2005-09-02.html">What's Holding Gold Back?

[Tace]

73. Your Link Goes To A Microsoft Site

Maybe this'll work, then:

http://goldmoney.com/en/commentary/2005-09-02.html

[ret5hd]

74. no...there's just too many "http//" 's in the addy.

[plasticsundance]

77. Thanks

Forgot to take out the http.

[UpInArms]

75. 1:54 EST happy dancing all over the floor

Dow 10,422.61 +44.58 (+0.43%)
Nasdaq 2,110.63 +3.99 (+0.19%)
S&P 500 1,213.50 +3.30 (+0.27%)
10-Yr Bond 4.173 -0.15 (-0.36%)

NYSE Volume 1,575,152,000
Nasdaq Volume 1,108,589,000

1:30PM: With oil trading at fresh session lows (+$0.20 $67.00/bbl), each of the three indices have regained positive footing... Sector-status has reversed, with seven of ten sectors currently sporting gains, led by a 1.1% surge in Consumer Discretionary amid rebounds in homebuilding and retail... Energy, however, has fully erased today's rise and is now off 1.2%, while Financials (-0.1%), which remains red, has pared much of its loss due largely to a 0.8% jump in Citigroup (C 45.22 +0.40) shares... NYSE Adv/Dec 1014/2176, Nasdaq Adv/Dec 1153/1771

1:00PM: Trading has remained flat over the past half an hour... On account of sector-spanning declines that leave 31 of its 33 components with losses, the Utilities sector (-0.8%) remains the session's laggard... Exelon (EXC 53.24 -0.76), the sector's most influential component, was downgraded to Neutral from Overweight at Prudential... On the other side of the aisle is Healthcare...

Despite continued pressure from its biotech group (-1.0%), the sector has staged a modest recovery effort, chalking a 0.1% gain as mainstays like United Healthcare (UNH 53.54 +0.95) and Abbott Labs (ABT 43.75 +0.65) attract follow-through buying interest, and as drug giants Pfizer (PFE 25.38 +0.07), Johnson & Johnson (JNJ 65.06 +0.36), and Eli Lily (LLY 54.11 +0.42) maintain solid footing...NYSE Adv/Dec 985/2176, Nasdaq Adv/Dec 1013/1864

[UpInArms]

76. YeeHaw! Rita downgraded to CATEGORY 4 (markets rejoice)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38617.5774116435-843346896&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - U.S. stocks shot higher Thursday afternoon, following news that Hurricane Rita has been downgraded to Category 4 from Category 5 status. The Dow Jones Industrial Average ($INDU) last was up 47.22 points at 10,425.25, the S&P 500 ($SPX) up 3.82 points at 1,214.02, and the Nasdaq composite ($COMPX) up 5.24 points at 2,111.88.

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7BA80478AD-C88E-407F-8460-AA659FAC40E9%7D&

SAN FRANCISCO (MarketWatch) -- Rita has been downgraded to a category 4 hurricane, according to the latest update from the National Hurricane Center, with maximum sustained winds decreasing to near 150 miles per hour. Some slight weakening is forecast during the next 24 hours but Rita is expected to remain an extremely dangerous hurricane, the NHC said.

Wasn't Katrina a Cat 4 when it hit? Wasn't Ground Zero in Mississippi - 70 miles (or more from NOLA)?

Let's do the happy dance! :sarcasm:

[Roland99]

84. Guess the WS types never heard of the term "eyewall replacement"

[UpInArms]

86. updated pic of Rita

looks like she's meaner and leaner (jmho)

[Roland99]

87. Notice the eye isn't as defined. Looks like she went thru an ERC.

I fear the new eyewall forming and then the storm moving west will move it out of the shear effect from the high-pressure system to its north right now will strengthen her right back up by tomorrow.

[UpInArms]

78. Insurance Scammer Redux: Connecticut sues Marsh for bid-rigging

Like father like son

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-22T180542Z_01_N22568684_RTRIDST_0_FINANCIAL-MARSH-CONNECTICUT.XML

NEW YORK, Sept 22 (Reuters) - Connecticut's Attorney General said he has filed a lawsuit against insurance broker Marsh & McLennan Cos. (MMC.N: Quote, Profile, Research) for rigging bids and steering contracts in the state, forcing businesses to overpay by 20 percent for insurance coverage.

Marsh, the world's largest insurance broker, earlier this year agreed to pay $850 million to settle bid-rigging accusations raised by New York Attorney General Eliot Spitzer.

[UpInArms]

85. Conn. Atty General adds new allegations to Marsh lawsuit

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38617.6334242708-843360453&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Connecticut Attorney General Richard Blumenthal added new allegations to his lawsuit against Marsh & McLennan Cos. (MMC) on Thursday, claiming the insurance broker rigged bids for insurance policies it arranged on behalf of businesses in the state. The amended complaint also alleges price-fixing and steering, similar claims leveled against Marsh by New York Attorney General Eliot Spitzer in October 2004. Blumenthal said he has unearthed "powerful evidence" of a scheme to raise insurance prices that harmed several Connecticut businesses including including Hubbell Inc. (HUBB) , Kaman Corp. (KAMNA) , Hexcel Corp. (HXL) , and Bridgeport Hospital. Marsh shares rose 1% to $29.54 on Thursday.

[JNelson6563]

81. Recommended, as always

Just caught up on all the financial news and commentary on today's thread, great stuff as usual.

2:58

Dow 10,412.74 +34.71 (+0.33%)
Nasdaq 2,109.62 +2.98 (+0.14%)
S&P 500 1,213.14 +2.94 (+0.24%)
10-Yr Bond 4.169% -0.02


Today's charts remind me of the choppy waters down in the gulf.

Let's hope those poor folks don't get hammered too hard down there. :scared:

Juile

[ozymandius]

82. 3:18 numbers and blather

Dow 10,420.86 +42.83 (+0.41%)
Nasdaq 2,109.57 +2.93 (+0.14%)
S&P 500 1,213.79 +3.59 (+0.30%)
10-Yr Bond 41.77 -0.11 (-0.26%)
NYSE Volume 2,008,483,000
Nasdaq Volume 1,414,348,000

3:00PM: Little has occurred since the last comment. Like the equity market, Treasurys too have been relatively static, as the benchmark 10-year note appears poised to close off 2 ticks to yield 4.17%... Despite the Fed's move Tuesday to raise rates another 25 basis points and unchanged policy statement suggesting more increases are forthcoming, yields have fallen 11 basis points over the past three days... NYSE Adv/Dec 1313/1932, Nasdaq Adv/Dec 1336/1628

[54anickel]

88. Woo-hoo!!! See, nuttin' to worry about!

Must have been another fire sale. :eyes:

[ozymandius]

90. Yeah boy! Instead of catastrophe, we only face devastation. (close)

Dow 10,422.05 +44.02 (+0.42%)
Nasdaq 2,110.78 +4.14 (+0.20%)
S&P 500 1,214.62 +4.42 (+0.37%)
10-Yr Bond 41.76 -0.12 (-0.29%)
NYSE Volume 2,424,624,000
Nasdaq Volume 1,741,494,000

Close: Saddled by concerns related to the growing strength of Hurricane Rita and its ordained path toward the oil rigs and refining facilities along the Texas coast, market participants essentially began Thursday's session with the same sense of caution that led to broad-based losses on Wednesday... Once again, rising energy prices - and specifically rising unleaded gas and natural gas prices - were the focal point of concern that kept the indices on the defensive in the early-going... Losses were held in check, however, thanks again to the energy sector, which maintained its leadership position...

Unlike recent sessions, though, the energy sector wasn't the lone source of support for the broader market... In Thursday's trade, the consumer discretionary sector exhibited relative strength from the onset of trading as the recent pummeling the group has taken sparked some broad-based bargain hunting interest...

Better than expected earnings results from Bed Bath & Beyond (BBBY 39.70, +2.28) and KB Home (KBH 73.70, +2.98) acted as catalysts for the renewed buying interest that picked up steam in the afternoon session when crude, unleaded gas, and natural gas futures pulled back from earlier highs... The retreat within the energy complex was precipitated by some profit taking activity that followed reports Hurricane Rita had been downgraded to a Category 4 storm... That news, in turn, helped put a bid in the broader market and stirred some short covering activity that left each of the major indices in positive territory at the closing bell... The overall gains were modest in scope, but the turn in sentiment was evident in the increased volume and the improved standing of the ten economic sectors, eight of which closed higher for the day...

[54anickel]

91. Geez Ozy, who lit a fire under the buck?

Last trade 88.55 Change +0.43 (+0.49%)

Settle 88.56 Settle Time 16:35

Open 88.17 Previous Close 88.14

High 88.63 Low 87.75

Certainly pulled the reins in on gold for the day. Still just a wee-bit of confidence left? Or is it more games by the CBs?

[ozymandius]

92. After hours trading, maybe?

Off-hours trading often produces completely weird affects.