STOCK MARKET WATCH, Wednesday 12 April

[ozymandius]

Wednesday April 12, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1013 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1938 DAYS
WHERE'S OSAMA BIN-LADEN? 1638 DAYS
DAYS SINCE ENRON COLLAPSE = 1599
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
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
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON April 11, 2006

Dow... 11,089.63 -51.70 (-0.46%)
Nasdaq... 2,310.35 -22.92 (-0.98%)
S&P 500... 1,286.57 -10.05 (-0.78%)
Gold future... 599.40 -2.40 (-0.40%)
30-Year Bond 5.00% -0.03 (-0.66%)
10-Yr Bond... 4.93% -0.03 (-0.62%)






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

-cut past lotsa charts-

SUMMARY

Last week (3-31-06) we said, "Notice that the price of oil and the yield for the 10-year T-note are near their highs of the last two years. Consequently, we believe that over the next 1-2 weeks we have two possible scenarios ahead of us. 1) Oil and bond yields will re-test their highs and then they will pull back, in which case the equity markets will be under modest pressure over the next 3-5 days, and then they will rally as oil and bond yields retreat. 2) Oil and bond yields will advance decisively above their previous highs, in which case the equity markets will remain under pressure, and in all likelihood they break below support and they will decline to the first downside targets. The key point is this; the equity markets are in a "high-end" consolidation, the outcome of which is depended upon two different variables; oil prices and bond yields. Investors/traders should not attempt to take a bullish/bearish position with regards to the equity markets, unless they can determine with a reasonable degree of certainty where oil prices, and bond yields are headed. The equity markets are the wrong class of assets to focus on at the present time. Currently, the equity markets are not in charge of their "own destiny." They are at the mercy of two other markets--oil, bond yields--which in turn are both vulnerable to exogenous events! At times like these, equity investors who are risk averse ought to be mostly in cash or in hedged positions. Investors ought to be primarily concerned with preserving their capital instead of "catching" the next move. One of the lessons that we have learned in our 17 years of being students of the markets is to never worry about "missing" out on something that is coming, but to always worry about that "something" not missing us when it finally comes!"

This week, higher oil prices and higher bond yields put the equity markets under pressure, and on the defensive. Given that all the technical indicators have turned down--assuming that we don't get a downside reversal in oil and in yields--we ought to expect a continuation of Friday's decline at least for the first 2-3 trading days of this week.

more...

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

[ozymandius]

2. Today's Reports

8:30 AM Trade Balance Feb
Briefing Forecast -$66.0B
Market Expects -$67.5B
Prior -$68.5B

10:30 AM Crude Inventories 04/07
Briefing Forecast NA
Market Expects NA
Prior 2110K

2:00 PM Treasury Budget Mar
Briefing Forecast -$87.0B
Market Expects -$81.0B
Prior -$71.2B

[UpInArms]

21. Feb Trade Balance @ -$65.7 Billion

8:30 AM ET 4/12/06 U.S. FEB. TRADE GAP WITH CHINA LOWEST SINCE MARCH '05

8:30 AM ET 4/12/06 U.S. FEB. TRADE GAP WITH CHINA $13.8 BLN

8:30 AM ET 4/12/06 U.S. JAN. TRADE GAP REV $68.6 BLN VS $68.5 PREV EST

8:30 AM ET 4/12/06 U.S. FEB. TRADE GAP BELOW CONSENSUS OF $67.3 BLN

8:30 AM ET 4/12/06 U.S. FEB. TRADE GAP NARROWS 4.1% TO $65.7 BLN

looks like they revised January gap up a bit :eyes:

and the gap must be mostly OIL :eyes:

[UpInArms]

22. Both exports and imports decline

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BDF712F14%2DD87C%2D4B33%2DA05C%2DC38CBB9984F1%7D&dist=newsfinder&symbol=&siteid=mktw

excerpt:

The trade gap in January was revised up slightly to a record $68.6 billion, compared with the initial estimate of $68.5 billion.

Economists may revise up their forecasts for first quarter real GDP growth as the drag from trade may be less than expected.

But economists do not expect the improvement in the deficit to continue in coming months.

"We do not expect any considerable medium-term improvement in the trade deficit. Trade models suggest that with a stable currency and solid domestic growth the deficit will widen," said economists at Lehman Brothers.

Exports narrowed 1.2% to $113 billion in February, ending an impressive string of four straight monthly gains.

<snip>

The petroleum deficit ticked higher in February.

The U.S. imported 291 million barrels of crude oil in February, or 10.3 million barrels per day, compared with 302.8 million or 9.8 million barrels per day, in January.

...more...

[UpInArms]

47. DOE Petroleum Inventories Report

10:30 AM ET 4/12/06 U.S. CRUDE SUPPLY UP 3.2 MLN BRLS LAST WK: ENERGY DEPT

10:30 AM ET 4/12/06 U.S. DISTILLATE SUPPLY DOWN 4.2 MLN BRLS: ENERGY DEPT

10:30 AM ET 4/12/06 U.S. GASOLINE SUPPLY DOWN 3.9 MLN BRLS: ENERGY DEPT

[UpInArms]

50. U.S. gasoline supply falls for a sixth week: Energy Dept

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD0D3D144%2DEB5D%2D49C2%2DB690%2D5BD1D32E7AA9%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The Energy Department said motor gasoline inventories fell 3.9 million barrels for the week ended April 7 to total 207.9 million. Supplies have lost a total of 18 million barrels in six weeks and are 1.9% below the year-ago level, the government data showed. Crude stocks rose 3.2 million barrels, to total 346 million barrels -- 7.8% above the year-ago level and at their highest level in almost eight years. Distillate supplies fell 4.2 million barrels to 117.4 million. They're 12.3% above the year-ago level. May crude rose 47 cents to $69.45 a barrel. May unleaded gas rose 2.36 cents to a seven-month high of $2.078 a gallon and May heating oil added 3.15 cents to $1.987 a gallon.

It's Bend-over time!

[UpInArms]

52. API Petroleum Inventories Report:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFFA61C1A%2DC639%2D4D41%2D902E%2DB97466C6C012%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute said crude inventories rose 4.3 million barrels for the week ended April 7, higher than the Energy Department's reported 3.2 million-barrel increase. Motor gasoline inventories were down 3.5 million barrels. Distillate stocks fell 4.6 million barrels, the API said.

[UpInArms]

71. March Federal Deficit @ $85.5 Billion

2:00 PM ET 4/12/06 U.S. MARCH RECEIPT UP 10.6% TO $164.6 BLN

2:00 PM ET 4/12/06 U.S. MARCH OUTLAYS UP 13.7% TO RECORD $250 BLN

2:00 PM ET 4/12/06 U.S. FEDERAL DEFICIT $303 BLN YEAR-TO-DATE VS. $295 BLN

2:00 PM ET 4/12/06 U.S. MARCH FEDERAL DEFICIT $85.5 BLN VS. $87 BLN EXPECTED (that's a lie - they expected $81B)

[UpInArms]

72. U.S. March federal deficit widens to $85.5 billion

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4595B9EE%2D6C61%2D402D%2D92D8%2D93468A32342D%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - The U.S. federal deficit widened to $85.5 billion in March compared with $71.2 billion in March a year ago, the Treasury Department said Wednesday. The March deficit was about $1.5 billion less than the $87 billion surplus expected by the Congressional Budget Office in its monthly budget outlook. The Treasury said about $15 billion of the March deficit was due to a timing shift in outlays for Medicare and other benefits that were paid in March this year, but in April last year. Through the first six months of the fiscal year, the deficit totaled $303 billion, about $8 billion more than in the first six months of 2005. For the year, the White House expects a $390 billion deficit.

Wow! This piece of spin states "surplus" not deficit!

[ozymandius]

3. Oil rises above $69 on Iran tension, eyes US stocks

SYDNEY (Reuters) - Oil climbed above $69 on Wednesday with London Brent crude hitting a new record high, ahead of U.S. data expected to show falling gasoline stocks and uncertain supplies from major exporters Iran, Nigeria and Iraq.

U.S. crude traded 19 cents up at $69.17 a barrel by 0649 GMT, after a 24-cent gain on Tuesday, to take prices up 2.6 percent this week and within sight of a record $70.85 hit last August.

The forward price of U.S. crude for delivery later this year has already powered well beyond the psychological $70 barrier, as traders see little chance of short-term solutions to political tensions and anticipate growth in already robust fuel demand during the northern hemisphere summer driving season.

-cut-

Analysts polled by Reuters predict U.S. gasoline inventories fell last week by an average 2.4 million barrels, extending a 14.1 million-barrel fall in the previous five weeks to March 31, in U.S. government data to be released later on Wednesday.

more...

[ozymandius]

4. IEA lifts need for OPEC oil in 2006

LONDON (Reuters) - OPEC will need to pump more oil than previously expected to meet rising world demand and cover a shortfall from other producers such as Russia, the International Energy Agency said on Wednesday.

-cut-

Most members of the Organization of Petroleum Exporting Countries are already pumping crude close to full capacity.

Higher than expected use in the Middle East and Asia Pacific prompted the IEA to raise its estimate for world demand this year to 85.1 million barrels a day in 2006, up 300,000 bpd from a previous estimate.

more...

[ozymandius]

5. European stocks fall on high oil prices

European stocks fell on Wednesday following the previous session's steep losses, as oil prices remained above $69 a barrel, prompting profit taking in miners, oil producers and financial stocks.

-cut-

Soaring commodity prices were the main concern as investors fretted over the inflationary impact of copper, zinc and oil near record highs. The FTSE Eurofirst 300 index fell more than 1 per cent in the previous session, while in New York, the Dow Jones Industrial Average shed 0.5 per cent to 11,089.63 and the Nasdaq Composite slid 1 per cent to 2,310.35.

Stock exchange mergers were back on the agenda on Wednesday after Nasdaq announced late on Tuesday it had acquired a 14.99 per cent stake in the London Stock Exchange, having pulled out of a £2.4bn bid for the market operator last month.

more...

[UpInArms]

43. May Crude @ $69.05 bbl - May NatGas @ $6.81 mln btus

10:04 AM ET 4/12/06 MAY CRUDE UP 7C AT $69.05/BRL AHEAD OF U.S. SUPPLY DATA

10:04 AM ET 4/12/06 MAY NATURAL GAS FALLS 9.8C TO $6.81/MLN BTUS IN NY

[ozymandius]

6. Realtors: Home Sales, Prices to Cool

WASHINGTON - The housing market will likely level out in 2006, as sales of existing and new homes are expected to cool in the coming quarters, according to the National Association of Realtors.

-cut-

But based on those projections for 2006, both the new home and existing home sectors would see their third-best year, following the booming markets of 2005 and 2004, the trade group said.

Prices for new and existing homes are also expected to slow from their previous rate of growth, while still maintaining steady rates of increase over the course of the year.

more...

[UpInArms]

14. U.S. mortgage applications decreased last week-MBA

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-12T110106Z_01_N12254754_RTRIDST_0_ECONOMY-MORTGAGES-URGENT.XML

NEW YORK, April 12 (Reuters) - U.S. mortgage applications fell last week for the first time in three weeks, an industry trade group said on Wednesday, as a near four-year high in interest rates dissuaded consumers from taking out home loans.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week to April 7 decreased 5.5 percent to 579.4 from the previous week's 612.8.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.50 percent, up 0.01 percentage point from the previous week, its highest since the week ended June 14, 2002 when it reached 6.53 percent.

The MBA's seasonally adjusted purchase mortgage index fell 4.7 percent to 417.7 from the previous week's 438.2. The index was also below its year-ago level of 474.5.

<snip>

The group's seasonally adjusted index of refinancing applications decreased 6.6 percent to 1,532.4 compared to 1,640.8 the previous week.

...more at link...

[ozymandius]

7. Skilling Denies Leading Enron Conspiracy

HOUSTON - Former Enron Corp. Chief Executive Jeffrey Skilling says partnerships once run by the company's finance chief were helpful risk management tools that benefited shareholders rather than sinister devices to manipulate earnings.

The ex-CEO, in his second day testifying in his fraud and conspiracy trial Tuesday, methodically addressed prosecution testimony painting him as an earnings-obsessed leader so intent on wowing Wall Street that his subordinates resorted to fraud with his knowledge.

Skilling said he was smart, but not smart enough to be the criminal the government alleges he is.

more...

[ozymandius]

8. LSE surges as Nasdaq rejoins the fray

LSE surges as Nasdaq rejoins the fray
U.S. exchange becomes LSE biggest shareholder

LONDON (MarketWatch) -- Shares in the London Stock Exchange surged as much as 15% Wednesday after the Nasdaq Stock Market revealed it has become the U.K. exchange's biggest shareholder, rekindling expectations of a takeover.

-cut-

Nasdaq snapped up almost the entire 13.8% stake in the London Stock Exchange (UK:LSE: news, chart, profile) held by U.K fund manager Threadneedle Investments, along with another 1.2%, for 1,175 pence a share, or $781.7 million.

-cut-

But the acquisition of a 15% stake means the LSE will no longer be able to ignore Nasdaq.

"The remaining shareholders may also encourage LSE management to hold discussions with Nasdaq," said Michael Long, an analyst at Keefe, Bruyette & Woods.

more...

[ozymandius]

9. Movers: Bausch falls as officials link product to infections

NEW YORK: Shares of Bausch & Lomb experienced their biggest drop in five years Tuesday after the company stopped shipping a contact lens solution linked by some health officials to a rare fungal infection that can cause blindness.

Analysts said the action involving part of the well-known ReNu line may tarnish the reputation of other Bausch & Lomb eye products and hurt sales. The shares dropped as much as 21 percent after analysts downgraded the stock.

"Bausch is suspending sales of its flagship product within the company's most profitable segment," Michael Weinstein, a J.P. Morgan analyst in New York, said in a note to clients. He lowered his rating to "underweight" from "neutral."

more...

http://www.iht.com/articles/2006/04/11/bloomberg/bxmove.php

[ozymandius]

10. Former Vioxx User Gets $13.5M in Damages

ATLANTIC CITY, N.J. — To Carla Tennyson, the case against Merck & Co. and its Vioxx pill boiled down to one thing _ coming clean.

Tennyson was one of the jurors who slapped Merck with a $9 million punitive damage award Tuesday, concluding that the drug maker dragged its feet in notifying people about the risks of its blockbuster arthritis drug and modifying its product label once it knew about them.

-cut-

The verdict, combined with a $4.5 million compensatory damages award ordered by the same jury last week, delivered another dose of bad news to Whitehouse Station-based Merck, which pulled Vioxx off the market in 2004 after a study linked it to increased risks of heart attack and stroke.

The damage award was to John McDarby, 77, of Park Ridge, a diabetic who took the drug for four years before he was stricken. Merck's lawyers stressed his risk for heart disease _ he was 75 at the time, with diabetes and clogged arteries.

more...

http://www.chron.com/disp/story.mpl/ap/business/3788669.html

[ozymandius]

11. Something's gotta give (for stocks)

NEW YORK (CNNMoney.com) - Forget Goldilocks. Pollyanna's been running up and down Wall Street lately, annoying bears and bulls alike, and she doesn't seem to be getting tired - yet.

Oil is back near $70 a barrel, gold is flirting with $600, a 25-year high, and the 10-year Treasury yield is back up near 5 percent, its highest in almost four years -- all classic signs that some investors think inflation's about to make a comeback.

Yet stocks are doing just fine, considering, posting modest declines at most over the past few sessions.

-cut-

Why is that? It may be that the factors lifting oil, gold and interest rates are also lifting stocks, said Stephen Leeb, president of Leeb Capital Management. "The rise in commodities, interest rates, all of this is a reflection of worldwide growth," Leeb said. "That's why the stock market is not crashing."

more...

http://money.cnn.com/2006/04/11/markets/markets_feature/index.htm

[54anickel]

25. Phfft! Who writes this stuff? Even the "The Sky is Falling" section

reads like bullish revisionist bullshit.

And the market could be especially vulnerable if oil, gold and interest rates surge further, he said, noting that such an environment would be somewhat the opposite of what happened in 1982, the start of what the Stock Trader's Almanac calls the "super bull cycle" that stretched on and off until 2000.

Sort of ignores the Lourve and Plaza accords AND Black Monday of 1987 which saw the birth of the PPT (aka President's Working Group on Financial Markets). There was no "super bull cycle" started in 1982, it started with Greenspin's liquidity injections and interventions which he continued to abuse in an attempt to counter natural, healthy corrections in the markets. All he managed to do was to postpone the day of reckoning while making the matter much worse that it would have been naturally.

Inflationary pressures similar to now were in play in 1982, Mendelsohn noted, but receded gradually the next few years, enabling stocks to rise.

Inflation peaked at 13.5% in 1981 and was on it's way down in 1982, made it to 3.something% by '83. How is that similar to now? So the author's worst case scenario and idea of "The Sky is Falling is this...:?

"If inflation doesn't accelerate much from here, and the Fed just raises rates a little more, we might see something like the end of the 1990s again," said Stephen Stanley, chief economist at RBS Greenwich Capital. "But if the Fed has to really ramp up to fight inflation, it's going to be a much worse environment than investors realize."

[UpInArms]

27. spinmeisters just pull shit out of their arses ... eom

[54anickel]

30. If this BS is an example our re-edumacated eCONomists "in charge"

line of thinking as a whole, we are soooooo screwed! It's bad enough they spew this spin drivel - what if they actually believe the bullshit they're spouting?

[AnneD]

49. Morning Marketeers,

:donut: Isn't it amazing what passes for economic fact and analysis today. My broker thinks I am somewhat of a Gloomy Gus but even HE finally started altering his portfolio after listening to some of my concerns.

Well, overnight and on cue the cheap gas here is $2.64, up 10 cents from Sat. It is really hitting people where it hurts now. Resturants are vacant during weekday evenings and I have notice we don't have so many folks flying down the road. I talked to our nearby laundry mat guy on Sunday (a nice VN refugee). He said that he is worried about the utilities going up this summer. He said he may have to cut back the hours AND raise prices. He operates on a thin margin. He does a great job with contract cleaning for restraunts but they haven't had so much in the way of tableclothes and napkins lately (see, it wasn't my imagination!).

I am so glad we locked in that apartment that is within walking distance to our jobs. It is looking better and better.

Happy hunting and watch out for the bears.

[ozymandius]

12. U.S., China OK Deals to Narrow Trade Gap

WASHINGTON (AP) -- The United States has won a string of commitments from China aimed at narrowing a record trade gap, but U.S. industry groups said the real test could come next week in talks between Chinese President Hu Jintao and President Bush over China's currency system.

In a leadup to those discussions on April 20, top economic officials from both countries struck a series of deals on Tuesday in which China pledged to lift its ban on American beef, to crack down on the sale of pirated computer software and to begin negotiations on allowing foreign firms to compete for Chinese government contracts.

-cut-

American manufacturers contend that China is depressing the value of its currency by as much as 40 percent to make Chinese goods cheaper for U.S. consumers and American products more expensive in China.

more...

[UpInArms]

15. China's Trade Surplus With U.S. Surged in March

http://www.nytimes.com/2006/04/12/business/worldbusiness/12trade.html?ex=1302494400&en=f9a1f638331a8866&ei=5088&partner=rssnyt&emc=rss

(free registration or try www.bugmenot.com)

HONG KONG, April 11 — China disclosed Tuesday that its trade surplus surged to $11.19 billion in March, its second-highest monthly surplus ever and a level that could feed trade frictions in advance of President Hu Jintao's visit to the United States next week.

The surplus more than doubled over March of last year on soaring exports and slowing growth in imports, and nearly matched China's record monthly trade surplus of $12.02 billion, set last October.

The March figures were especially significant because China usually runs only modest surpluses or even deficits in the first quarter. In the second quarter, factories step up their shipments to the United States and Europe of things like toys and DVD players, in preparation for the holiday retail season.

<snip>

In Washington, the Treasury Department is in the final stages of deciding whether to accuse China of manipulating the value of its currency — keeping the yuan artificially cheap to maintain the competitiveness of Chinese exports despite rising wages and raw material costs in China.

The yuan was trading at 8.0087 to the dollar in late-afternoon trading in Shanghai on Tuesday, and is widely expected by traders to ease through the psychologically important level of 8 to the dollar before President Hu completes his trip to the United States. China revalued the yuan by 2.1 percent against the dollar last July 21, and it has appreciated an additional 1.27 percent since then.

<snip>

China released only its totals for exports, imports and the trade balance during March, and did not reveal details of trade by country or by product. Exports rose 28.2 percent from a year earlier, to $78.05 billion, while imports climbed 21.3 percent, to $66.86 billion.

...more...

[54anickel]

36. U.S. Feb. Trade Deficit Falls 4.1% as Gap With China Narrows

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aYP2lMZC6Yg0&refer=home

April 12 (Bloomberg) -- The U.S. trade deficit narrowed more than expected to $65.7 billion in February, led by a decline in Chinese imports that may be temporary and do little to ease demands for sanctions.

The gap narrowed by 4.1 percent from a record $68.6 billion in January, the Commerce Department said today in Washington. Imports fell 2.3 percent and exports dropped 1.2 percent. The deficit with China was the smallest in almost a year and may reflect business shutdowns during the lunar New Year holiday.

A jump in oil costs to near-record highs and growing demand for Chinese goods suggest U.S. imports, which exceed the country's exports by 50 percent, will again head higher and cause the deficit to swell. China's President Hu Jintao plans to visit President George W. Bush next week amid Congressional efforts to penalize the Chinese for currency policies that lawmakers say help widen the trade gap.

snip>

China's March Surplus

The Chinese export juggernaut returned in force last month after the New Year holiday. China's trade surplus widened to $11.2 billion in March, the second-highest on record, according to figures released yesterday. Trade with the U.S. accounted for almost all of the gap. China's surplus with the U.S. widened 39 percent last month to $11 billion from $7.9 billion, China's customs bureau said today.

more...

OK, I'm thoroughly confused :crazy:

[UpInArms]

13. daily dollar watch

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

Last trade 89.31 Change +0.05 (+0.06%)

Tomorrow's Economic Releases: US Trade Balance Report Takes Center Stage On Shortened Week

http://www.dailyfx.com/story/calendar/key-events/7962-tomorrows-economic-releases-us-trade-balance-report-takes.html

US Trade Balance (FEB) (12:30 GMT; 08:30 EST)

Consensus: -$67.9B
Previous: -$68.5B

Outlook: The United States’ ever-present trade deficit is expected to have contracted slightly in February as rampant spending by US consumers moderated with the sudden drop in temperatures. Unusually mild temperatures, which had floated consumer confidence for nearly three months, finally reverted to normal winter levels in February. Consequently optimism in the world’s largest economy fell from a 106.8 read in January to 101.7 according to the Conference Board’s measure. Beyond the general dulling of consumer optimism for the period, a 13% decline in crude oil prices further presented a significant reduction to foreign receipts. Accordingly, the cost of imported goods over the month actually fell 0.5%. Other contributors to the drop were the largest decline in food prices in four years as well as softer chemical prices. Demand for US exports on the other hand was likely well supported as global business and consumer optimism continued to drive higher. The disturbingly high trade shortfall has become one of the largest draws on US dollar strength over the last few quarters and will continue to be until either fiscal policy or natural market functions are able to moderate it.

Previous: The US’s trade deficit with the rest of the world widened to a record $68.5 billion in January as exuberant domestic consumer demand benefited cheaper goods from abroad. While the value of exports over the month accelerated 2.5% to $114 billion, its highest level on record, imports easily exceeded it with a 3.5% rise to $182.9 billion. As retail sales at home jumped 2.3%, demand for foreign-made consumer goods rose to a value of $36.2 billion while those for autos climbed to $22.7 billion. Another weighty issue for the trade value was purchases of overseas energy products. Though demand for crude slimmed 8.2 million barrels over the month, the total cost of petroleum imports actually rose to $24.6 billion from $23.6 billion in December. Finally, the most alarming feature of an already alarming shortfall came from the US deficit held with China. After accounting for nearly a quarter of the United State’s deficit through 2005, China leg up began the year by growing 9.9% to $17.9 billion.

...more...

[54anickel]

28. Heh-heh! Place your bets!!!

The disturbingly high trade shortfall has become one of the largest draws on US dollar strength over the last few quarters and will continue to be until either fiscal policy or natural market functions are able to moderate it.

Fiscal policy? BWAHAHAHAHAHA :rofl: Ain't gonna happen with these war-mongering, profiteering bastards in charge and China's already said "thanks but no thanks" to Plaza redux. That pretty much leaves it to "natural market functions". What goes up, must come down - the question is how far down will natural market functions take an unnatural market? :scared:

Can you say?...

[UpInArms]

31. Seeing as I do not believe this maladministration is capable of a "sound

fiscal policy", I guess I'll take "unnatural markets" for $1 (seeing as I am one of the fortunate dollar-aires :eyes: )

[exlrrp]

32. Good Question!!

"the question is how far down will natural market functions take an unnatural market?"
Right on time

[54anickel]

42. Hi Exlrrp and welcome to the SMW thread and DU.

It's the possible answer to the question that's scary as hell. Either way, the buck is going down and you'll need a lot more of them to buy "stuff". Hmmmm, might that not also raise the price of stocks? Why that could raise the P/E ratio even more, and what does that do to the value? What a fine mess Mr. Greenspin and this mal-admin have gotten us into.

[54anickel]

34. On the question of gold confiscation

I'm posting this not so much as it relates to gold confiscation, but for what it has to say about Forex and foreign currencies in the event of a US$ crisis. Could get interesting....

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=53344

snip>

There is one major difference between today and then, that is: we do not have gold U.S. coin currency now. In other words, one of the prime motivations to confiscate gold in the 1930s is not at work today (i.e. to get back the US gold coin in circulation). The other risk, however, that of flight out of the U.S. dollar into gold hoarding, still remains in effect.

To get around flight out of the dollar, the major issue to the U.S. government would have to focus on is the currency markets because they have the size and liquidity to do the job. The US government would probably institute foreign exchange restrictions, i.e. freezing the conversion of electronic accounts into other currencies. That is, accounts already denominated in US dollars would probably be forced to stay in US dollars.

The amount of gold bullion available is a very, very small fraction of the total assets available for a change out of U.S. dollars. Foreign currencies would be the prime objective for converting out of the U.S. dollar, and gold would be a very small part of this equation.

Therefore, I do not see gold being the main target of foreign exchange restrictions as it was in the 1930s. However, the U.S. can indeed confiscate anything they feel threatens the stability of the U.S. dollar with laws already on the books.

more...

[Changenow]

45. So those international funds

in which I have half my 401k invested will be frozen? Or will they simply require I cash out into domestic investments?

[54anickel]

55. I'm guessing they would be frozen until things settled down, based

upon Argentina's experience. But I'm just pullin' that outta my arse - I have no idea. Having it frozen where it's at might not be such a bad thing - as long as you don't need it for a while. I'm thinking it would be better than being frozen in a worth less and less buck. :shrug:

...It will all just become "not for sale." The other main alternative would have to be other decent foreign currencies to flee into, because of the size and liquidity required. The US would have to institute currency exchange restrictions like Argentina did a few years ago, where they prevented people from taking out pesos (allowed a very low monthly withdrawal), and froze bank accounts.

[UpInArms]

16. Ross-Simons says security breach exposes customers

http://news.yahoo.com/s/nm/20060412/bs_nm/retail_rosssimons_dc

NEW YORK (Reuters) - Ross-Simons, which sells specialty merchandise through retail stores and more than 60 million catalogs each year, late on Tuesday said a security breach could allow unauthorized access to its customers' confidential financial information.

The company -- whose products includes jewelry, gifts and home decorative merchandise -- said the data breach has potential to harm individuals who had applied for its private label credit card.

Although the security snafu has been identified and corrected and the matter is under investigation, Ross-Simons said it may have exposed the private label credit card numbers and other personal information of those that had applied for the cards.

...more...

[UpInArms]

17. WUHBPH stumps for Dimson in S Korea via satellite

Greenspan Addresses Conference in S. Korea

http://news.yahoo.com/s/ap/20060412/ap_on_bi_ge/skorea_greenspan

SEOUL, South Korea - Former U.S. central bank chief Alan Greenspan said Wednesday that global economic imbalances might improve if some high-growth economies allowed their currencies to strengthen.

<snip>

Greenspan spoke by satellite from the United States. He didn't specify the economies by name, but was responding to a question about the accumulation of vast amounts of foreign reserves by Asian countries including China, Japan and South Korea.

<snip>

Persistent worries over growing U.S. budget and current account deficits have led some in Washington to call for U.S. trade partners including China to allow their currencies to strengthen against the dollar.

That could cause their products to become more expensive in the U.S. while making American goods cheaper in their markets, thus helping reduce the trade balance.

<snip>

Last year's budget deficit came to $319 billion, an improvement from 2004 but still the third largest deficit ever recorded. This year, the White House is projecting the deficit to swell to $423 billion, which would set a record in dollar terms.

...more...

[54anickel]

39. In other words....

"I'm looking for a few good volunteers to absorb the next currency crisis. The IMF and World Bank are at the ready to help you to recover after, but we need someone willing to take it on the chin for the Ole Gipper buck. It would be much better and less disruptive on a whole that having the world's reserve currency destroyed...So, who's with me.....anyone?....anyone?...."

[UpInArms]

54. WUHBPH begging act - part II

Asset prices will fall, Greenspan says

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B5DFCB013%2DFF8D%2D4662%2DBC2F%2DD2CFAE288487%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- Former Federal Reserve Chairman Alan Greenspan warned in uncharacteristically blunt terms that global asset prices are too high.

"Asset prices will fall eventually," Greenspan said Wednesday in remarks to the Asia Financial Centers Summit in Seoul, Korea, according to media reports. Greenspan made his remarks by satellite television.

Greenspan said the market value of assets has been rising faster than gross domestic product growth due to a significant decline in real equity premiums and the decline in real long-term interest rates.

"A good part of this expansion is a direct function of the decline in real equity premiums," he said. "That cannot go on indefinitely."

<snip>

His words Wednesday echoed a speech from late 1996, in which Greenspan spoke of an "irrational exuberance has unduly escalated asset values."

Greenspan also said he believed imbalances in the global economy, such as large current account imbalances, could be corrected if high-growth Asian nations would allow their currencies to strengthen.

...more...

[54anickel]

56. Bastard! He caused most of this mess and yet again he wants some

other country to foot the bill for the US stupidity and greed. "They hate us for our freedoms"... yeah, right. :eyes:

[54anickel]

64. From Today's Pfenning on the WUHBPH...

http://www.kitcocasey.com/displayArticle.php?id=657

snip>

While I'm talking about China and Japan... Our old buddy (NOT!) Big Al Greenspan, now has the freedom to really speak his mind (I know, I could really have a field day with that one, but I'll leave it be this time!), and last night decided his topic would be Asian currencies... I'm going to give this to you straight from the horse's mouth...

"It would be very difficult to get agreement between a number of countries that have different domestic goals for adjustments to find a single adjustment that all could agree on... The equilibrium is better reached by allowing a number of these countries that show a much higher growth rate than developed countries to allow their currencies to firm."

OK... Now you know one of the reasons I had a problem with Big Al... Even now, he gives you his thoughts in "Greenspeak"... Basically, as I read this over and over again... I think he's talking about China and Japan... Especially China... He wants their currency to rise vs. the dollar...

And... I'll say this once more... (OK, you know me, I'll harp on this forever!), If you don't think the U.S. administration doesn't want a weaker dollar... Why then are they always harping on China to allow their currency to get stronger vs. the dollar? Yes, I know Big Al isn't a part of the administration any longer, but he was there for 18 years, it's been pounded in his head for years!

An old Mark Twain Bank friend sent along a note to me after his recent visit to Thailand... He said the activity there is bustling, and foreign investment is very strong... To that, he believes the Central Bank will want to get into the intervention game to keep the baht from getting too strong vs. the dollar... Makes sense... Let's just hope they don’t go about like the Japanese and spend trillions keeping their currency weak! Of course Thailand doesn't have the war chest like Japan, so that won't happen, but you get the gist of my thought...

more...

[UpInArms]

18. Slowing economy, weak buck could push gold past $850

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF3D1E4C3%2D2FF4%2D49F0%2DA96E%2D472D5A2DA0EF%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Gold may post further strong gains in the next two years -- and even surpass the 1980 high of $850 an ounce -- as the U.S. economy slows and the dollar loses ground.

That's the key finding of the GFMS Gold Survey 2006 published Wednesday.

"Levels safely over $600 are now in our sights and further hefty gains over the next year or two are quite possible -- in the right circumstances, the 1980 high of $850 could even be taken out," said Philip Klapwijk, chairman of the independent precious metals research consultancy.

Gold will continue to find support from inflationary pressures and political tensions in the Middle East, retaining its role as a safe-haven investment.

But the metal's gains of the past year have also made it an attractive investment target for institutional investors, seeking bigger returns than are available on stocks and bonds.

...more...

[UpInArms]

26. Gold gains on Iran fears (June Gold @ $601 oz)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B37EEBB13%2D870E%2D4115%2DB599%2DBDE26666222F%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Gold futures edged higher early Wednesday, after Iran pledged to push ahead with industrial-scale uranium enrichment, provoking criticism from the United States, European Union and Russia.

Gold for June delivery was last trading up $1.60 cents at $601 an ounce on the New York Mercantile Exchange. The contract tapped a 25-year high of $608.40 an ounce on Tuesday before closing lower, reflecting caution about its lofty level.

The U.S. said Iran is "moving in the wrong direction" with its nuclear program after the Tehran government announced that it has successfully enriched uranium at one of its facilities.

President Mahmoud Ahmadinejad said the country has become a nuclear power and will push ahead with large-scale enrichment. He reiterated that Iran is aiming to generate power for peaceful, civilian use and is not planning to develop nuclear weapons.

<snip>

Silver futures were last trading up 7 cents at $12.67 an ounce. Platinum was up $2.40 at $1,097 an ounce and palladium was down 80 cents at $345.20 an ounce.

...more...

[UpInArms]

38. June Gold @ $600.50 oz - May Silver @ $12.675 oz - May Copper @ $2.743 lb

9:41 AM ET 4/12/06 JUNE GOLD CLIMBS $1.10 TO $600.50/OZ AFTER $602.40 HIGH

9:41 AM ET 4/12/06 MAY SILVER UP 7.5C AT $12.675/OZ IN NY

9:41 AM ET 4/12/06 MAY COPPER RISES 2.15C, OR 0.8%, TO $2.743/LB

[UpInArms]

60. June Gold @ $602.60 oz - May Silver @ $12.75 oz - May Copper @ $2.786 lb

11:51 AM ET 4/12/06 JUNE GOLD RISES $3.20 TO $602.60/OZ AFTER $604 HIGH

11:51 AM ET 4/12/06 MAY SILVER UP 15C, OR 1.2%, AT $12.75/OZ

11:51 AM ET 4/12/06 MAY COPPER UP 6.45C, OR 2.4%, AT A RECORD $2.786/LB

[UpInArms]

19. Evidence proving Dimson LIED regarding Iraq's "bio-labs"

Paper: Bush touted WMD find despite conflicting evidence

http://www.cnn.com/2006/US/04/12/iraq.weapons.ap/index.html?section=cnn_latest

WASHINGTON (AP) -- The Bush administration claimed trailers captured soon after the fall of Baghdad proved Iraq had weapons of mass destruction even though U.S. intelligence officials had strong evidence that was not the case, The Washington Post reported.

When the two small trailers were seized in late May 2003, President Bush proclaimed a fresh victory for his administration in Iraq. The administration said they were mobile "biological laboratories," and Bush declared, "We have found the weapons of mass destruction."

The claim, repeated by top administration officials for months afterward, was cited at the time as supporting evidence for the decision to go to war.

But a secret mission to Iraq had concluded the trailers had nothing to do with biological weapons. Leaders of the Pentagon-sponsored mission sent their findings to Washington in a report on May 27, 2003, two days before the president's statement, the Post reported.

The brief initial report and a 122-page final report finished soon after that were shelved. Meanwhile, for nearly a year, administration and intelligence officials continued to publicly claim the trailers were weapons factories.

...more...

[UpInArms]

20. US shelved evidence discounting Iraq's WMD: report

http://today.reuters.com/news/articlenews.aspx?type=domesticNews&storyid=2006-04-12T061439Z_01_N11262021_RTRUKOC_0_US-IRAQ-USA-LABS.xml

WASHINGTON (Reuters) - The Bush administration publicly asserted that two trailers captured by U.S. troops in Iraq in May 2003 were mobile "biological laboratories" even after U.S. intelligence officials had evidence that it was not true, The Washington Post reported on Wednesday.

On May 29, 2003, President George W. Bush hailed the capture of the trailers, declaring "We have found the weapons of mass destruction".

But a Pentagon-sponsored fact-finding mission had already concluded that the trailers had nothing to do with biological weapons, the Post reported, citing government officials and weapons experts who participated in the secret mission or had direct knowledge of it.

The Post said the group's unanimous findings had been sent to the Pentagon in a field report, two days before the president's statement.

Bush cited the threat posed by weapons of mass destruction as the prime justification for invading Iraq. No such weapons ever were found.

...more...

[UpInArms]

23. Treasuries pare gains after US Feb trade gap data

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-12T124032Z_01_NYG000177_RTRIDST_0_MARKETS-BONDS-URGENT.XML

NEW YORK, April 12 (Reuters) - Treasury debt prices pared gains on Wednesday after a narrower-than-expected U.S. February trade deficit hinted at strong first quarter economic growth.

The deficit was $65.74 billion, below economists' median forecast for $67.50 billion and down from an upwardly revised $68.59 billion in January.

Benchmark 10-year notes <US10YT=RR>, which tend to respond to expectations for economic growth and inflation, shed some price gains soon after the report to trade up 2/32 in price for a yield of 4.91 percent versus 4.93 percent late on Tuesday.

[UpInArms]

37. Printing Press Report:Fed adds temporary reserves via overnight repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-12T133344Z_01_N12343156_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, April 12 (Reuters) - The Federal Reserve said on Wednesday that it had added temporary reserves to the banking system via overnight system repurchase agreements.

The benchmark fed funds rate last traded at 4.75 percent, the Fed's current target for the overnight lending rate on loans between banks.

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

[UpInArms]

62. Looming auction pulls Treasuries modestly lower

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-04-12T152839Z_01_N12393930_RTRIDST_0_MARKETS-BONDS-UPDATE-3.XML

NEW YORK, April 12 (Reuters) - U.S. government bond prices eased on Wednesday as investors tried to cheapen the market ahead of an auction of $8 billion in inflation-protected debt later in the day.

But price moves were small, with bonds mostly rangebound as investors waited for any information that might alter prevailing expectations for one additional interest rate increase from the Federal Reserve.

Benchmark 10-year notes dipped 2/32 for a yield of 4.94 percent, compared with 4.93 percent Tuesday. Two-year notes were off 1/32 and yielding 4.88 percent.

"We have lots of supply to absorb," said Mary Ann Hurley, a senior Treasuries trader at D.A. Davidson & Co.

...more...

[UpInArms]

74. Treasuries extend losses after $8 bln 10-yr auction (crappy bid-to-cover)

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-04-12T175424Z_01_N12493654_RTRIDST_0_MARKETS-BONDS-UPDATE-5.XML

NEW YORK, April 12 (Reuters) - U.S. government bond prices extended losses on Wednesday after a Treasury auction of $8 billion in inflation-protected debt attracted a less aggressive bid than the market appeared to have anticipated.

"It was an average auction," said Frank Hsu, director of global fixed income at Fimat.

The Treasury said primary dealers bought $3.99 billion of the 10-year indexed note sale, while the indirect bid totaled $3.93 billion.

The bid-to-cover ratio for the 9-year, 9-month notes, a reopening of a previously sold issue, was 1.95. Non-competitive bids totaled $69.7 million.

Bonds yields crept higher, erasing the previous day's move. Stocks, too, were on firmer footing after sharp declines in the previous session.

...more...

Hmmmm... "average"???? Bid-to-cover is usually around 2.25 to 2.50 ... :eyes:

[UpInArms]

75. New Spin: Treasury prices decline ahead of religious holidays

Now I guess Gawd will tell them not to buy bonds :eyes:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B915C05C3%2D854A%2D4058%2DA4A9%2DF9395AF772DB%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Treasury prices dropped Wednesday afternoon, propelling yields back toward their recent peaks, as investors lightened positions ahead of approaching religious holidays.

An afternoon auction of $8 billion in inflation-protected notes had little impact on nominal notes.

The benchmark 10-year Treasury note gave up brisk morning gains and last was down 6/32 at 96 10/32 with a yield ($TNX ) of 4.980%. Prices and yields move in opposite directions.

The 30-year long-bond was 11/32 lower at 91 18/32 with a yield ($TYX ) of 5.050%.
Morning price gains evaporated around midday as investors lightened positions and prepared for early exits ahead of the Wednesday evening start of Passover and Good Friday observance.

<snip>

The auction of $8 billion in 9-year, 9-month notes attracted a slightly low bid-to-cover -- or bids rendered to bids accepted ratio -- of 1.95. However demand at a reopening often is lighter than demand at an original sale.

...more crap!...

I do so wish that I had whatever drugs these freaks are using. :eyes:

[UpInArms]

24. Goldman's Spear Leeds unit fined $200,000

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B06F48E05%2DD595%2D4D57%2D9E0E%2DDC5528BA1C91%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- NYSE Regulation Inc. on Wednesday said it fined Spear Leeds Kellogg Specialists LLC $200,000 for improperly contacting companies considering listing on the New York Stock Exchange. The alleged contact was made between June 2003 and March 2004, regulators said. The NYSE also faulted Spear Leeds, a unit of Goldman Sachs Group Inc. (GS 159.15, -3.31, -2.0% ) , for failing to have proper systems in place to meet its disclosure obligations. Shares of Goldman Sachs closed down $3.31 on Tuesday to $159.15. NYSE Regulation is a not-for-profit unit of NYSE Group Inc. (NYX 73.12, -2.93, -3.9% ) .

What a great group to trust with investments! Insider trading, improper contacts - what will we learn next? :eyes:

[UpInArms]

40. NYSE Regulation fines E-Trade $100,000

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCC3E5B53%2DFD52%2D48FC%2D9DA5%2DD5CDFEE022E8%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch)-- NYSE Regulation said Wednesday it fined E-Trade Financial Corp's (ET 26.07, -0.54, -2.0% ) E-Trade Clearing LLC $100,000 for failing to require minimum equity of $25,000 at all times in day traders' accounts. The regulator said E-Trade Clearing broke rules permitting customers to execute transactions in cash accounts "whereby the cost of securities purchased was met by the prior sale of other securities on same day." It said the violations took place from September 2002 through December 2003. NYSE Regulation said E-Trade consented to the fine, without admitting or denying guilt.

Does this mean that they are not adequately covering the "margin"?

[UpInArms]

29. pre-opening blather

09:00 am : S&P futures vs fair value: +0.5. Nasdaq futures vs fair value: +0.6. Futures indications have backed off their best levels since the last update, perhaps in sympathy with a pullback in Treasuries, and now suggest a relatively flat open for equities. While the yield on the 10-yr note dipping in recent days to 4.91% has offered some solace for the stock market, expectations on Fed policy have not changed and continue to underpin a cautious tone.

08:34 am : S&P futures vs fair value: +2.2. Nasdaq futures vs fair value: +3.0. Improvements in the futures market, amid a pullback in crude, better than expected earnings (e.g. DNA and CC), Boeing's (BA) 80-aircraft deal with China and a declining budget deficit, now imply that bargain hunters may step in following yesterday's sell-off and lift the cash market at the open. The recently released Feb. Trade Balance report showed a deficit of $65.7 bln, better than the $67.5 bln deficit that economists had forecasted. While the data have provided some comfort for equity investors, the reaction to the data within the bond market has been a muted one, as the 10-yr note is still up just 2 ticks to yield 4.90%.

08:00 am : S&P futures vs fair value: +0.1. Nasdaq futures vs fair value: +0.5. Futures versus fair value suggests a relatively sluggish start for stocks. Some factors that are contributing to traders' lack of conviction include ongoing concerns about the Fed's inclination to raise rates in the face of rising commodity prices and increased resource utilization. Investors may be waiting for an update on the trade deficit (8:30 ET) and continued improvements in Treasuries to set a more positive tone for trading.

[ozymandius]

33. Bidness is being dealt.

9:30
Dow 11,092.67 +3.04 (+0.03%)
Nasdaq 2,309.21 -1.14 (-0.05%)
S&P 500 1,287.06 +0.49 (+0.04%)
10-Yr Bond 49.22 -0.10 (-0.20%)
NYSE Volume 18,668,000
Nasdaq Volume 34,883,000

[UpInArms]

35. 9:35 EST Pollyanna's loose on the floor

Dow 11,127.41 +37.78 (+0.34%)
Nasdaq 2,311.31 +0.96 (+0.04%)
S&P 500 1,289.37 +2.80 (+0.22%)
10-Yr Bond 4.918 -0.14 (-0.28%)

NYSE Volume 67,898,000
Nasdaq Volume 79,640,000

[UpInArms]

41. Air Force chief says DoD aims to buy 7 C-17s with war funding

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B3ADB8452%2D5732%2D4EDE%2D9ED7%2DF0A56D1A9D82%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- U.S. Air Force Chief of Staff Michael Moseley said Tuesday that the Air Force will try to buy seven C-17 cargo planes with emergency war funding.

Boeing Co. (BA) makes the planes, which cost around $200 million each including engines and other gear. Current Air Force plans call for halting production at 180 total aircraft, which would shut down Boeing's Long Beach production line in 2008.

Moseley said the Air Force supports an official program of 180 planes. But the service needs another seven planes because of heavy use related to Iraq and Afghanistan operations.

Cargo planes ought to be treated like trucks or helicopters that wear out faster in wartime, Moseley told a Defense Writers Group breakfast. The service has listed seven more planes as an "unfunded requirement," and it now plans to find the money in war-related emergency spending bills, he said.

"We've got some of the money in this GWOT supplemental," he said, using military shorthand for supplemental spending tied to the "global war on terror."

...more...

[UpInArms]

44. U.S. stocks rise on Boeing, earnings hopes

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-12T141520Z_01_N12307932_RTRIDST_0_MARKETS-STOCKS-UPDATE-4.XML

We're sorry... this story is not currently available

Just a "headline" - no story - just spinning why those stocks are climbing - hopes and taxpayers' money to fund the GWOT - more bullsh*t.

[Roland99]

51. IOW: Deficit financing.

[UpInArms]

46. Steelworkers union sues Alcoa over retiree benefits changes

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BA93AF08B%2DB268%2D40A8%2D8D02%2D9550D5B2FB2A%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - The United Steelworkers union said Wednesday it filed a federal lawsuit in Knoxville, Tenn., against Alcoa Inc. (AA 33.90, -0.19, -0.6% ) on behalf of retirees who had their medical benefits changed by Alcoa in January. The union said the lawsuit seeks class-action status and seeks monetary and injunctive relief for the affected retirees, spouses, surviving spouses and dependents.

Didn't Alcoa just report record profits yesterday? Looks like those profits were stolen from the employees once again.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BA675B456%2DE162%2D4A31%2D8060%2D4F13720C586F%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Alcoa Inc., after handing in unexpectedly strong quarterly results, saw its shares jump nearly 8% early Tuesday amid a flurry of gushing analysts notes on the world's biggest aluminum producer.

Alcoa, a Dow 30 component, reported after Monday's closing bell a first-quarter net profit of 69 cents a share, up from 30 cents a year ago and far outpacing the 51 cents a share Wall Street had been looking for. See Alcoa results.

Alcoa shares hit a fresh 52-week high of $35.40 at the open, up $2.57, or 7.8%, from Monday's close and a level not touched since April 2004.

<snip>

Alcoa's results built on strong prices, with aluminum prices hitting a 17-year high during the quarter, and what the company called robust demand from the commercial transportation and aerospace sectors, two of its biggest customers.

<snip>

"Due to its restructuring and efficiency initiatives, the company was able to offset higher energy costs and lower its cost of goods sold as a percent of sales," Merrill Lynch Analyst Daniel Roling wrote in a research note.

...more...

Don't you just love those euphemisms: restructuring and efficiency initiatives - layoffs and reductions in benefits for workers :mad:

[AnneD]

53. Let's hope those workers

get some of that record profit placed into their retirement accounts before management scurries off with it.

[UpInArms]

48. 10:32 EST Pollyanna heading for the door?

Dow 11,112.36 +22.73 (+0.20%)
Nasdaq 2,311.40 +1.05 (+0.05%)
S&P 500 1,287.41 +0.84 (+0.07%)
10-Yr Bond 4.932 0.00 (0.00%)

NYSE Volume 432,577,000
Nasdaq Volume 380,992,000

10:00 am : Major averages are holding their own at current levels but gains remain modest at best. With regard to sector leadership, Financial is getting a lift from Progressive Corp's (PGR 106.00 +3.77) strong Q1 report. Health Care is also posting a modest gain, as Medtronic's (MDT 51.28 +0.78) $2.5 bln buyback and a rebound in HMOs overshadows weakness in Genentech (DNA 80.39 -1.31), which beat estimates but is consolidating following weak Rituxin sales. Industrials is also providing leadership following Boeing's (BA 82.90 +2.33) 80-aircraft deal with China. Energy, though, is trading lower in sympathy with a pullback in oil prices ahead of weekly inventories (10:30 ET) while weakness in retail and homebuilding is weighing on Consumer Discretionary.DJ30 +32.65 NASDAQ +1.65 SP500 +2.01 NASDAQ Dec/Adv/Vol 1199/1212/196 mln NYSE Dec/Adv/Vol 1041/1497/152 mln

09:40 am : Market is exhibiting a slightly positive bias at the start of trading, but overall, there is little conviction behind the market's action in what is expected to be two quiet days of trading heading into the holiday weekend. A larger than expected narrowing in the U.S. trade deficit for February, which may boost Q1 GDP figures a bit, has provided some comfort for the stock market early on but stalled follow-through buying interest in bonds, keeping market gains at a minimum since Treasuries tend to dictate overall trading. The 10-yr note is currently flat yielding 4.91%.DJ30 +35.12 NASDAQ +0.48 SP500 +2.89 NASDAQ Vol 96 mln NYSE Vol 69 mln

[Tace]

57. MOGAMBO GURU: "Run For Your Lives. It's Inflation!"

Richard Daughty, the angriest guy in economics -- World News Trust

snip

If you listen carefully to the soundtrack, you will notice that it sounds like kettledrums and werewolves howling. Or maybe werewolves playing kettledrums while howling. I dunno. But either way, that frightful music means, if you have ever been to the movies, that something horrible is getting ready to happen. And sure enough, you can dimly see, rising slowly out of the murky depths, a hideous monster rising up. Suddenly, someone shouts, "Run for your lives! It's inflation, and it is going to eat the living guts out of our spending power and our standards of living!" Actually, in the movie, it turned out to be this scaly creature that lived in this lagoon, called the Black Lagoon, see, which the people manage to kill at the end, which explains why the rest of the audience laughed at me and shouted as I bolted for the door in my panic, "Good riddance, creep!"

But it's the same idea, only in real life the creature IS inflation, and it wins in the end, and the people are all killed. And eaten. And their kids. And everybody else, too, for years and years and years. Ugh.

more

http://worldnewstrust.org/modules/AMS/article.php?storyid=3034

[skids]

58. Sage economist Rudy Giuliani Speaks...

(:sarcasm:)

Former New York Mayor Rudolph Giuliani said Wednesday that another Sept. 11-like terror attack would be disastrous, but that he was confident the world economy could withstand it.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2222400&mesg_id=2222400

[Roland99]

59. Is he cheering one on? Is he expecting another one?

What does Rudy know and when did he learn it?

;)

[AnneD]

61. It will also depend on the location of the strike...

:sarcasm: some areas are more essential to the economy and some aren't. Reminds me of the joke about a tornado blowing through a red neck trailer park....did $500,000 in home improvement. ;)

[54anickel]

63. BWAHAHAHAHA!!!! good one!!! n/t

[Roland99]

67. Zing!

[ozymandius]

65. pollyannas on a shopping spree

Does anyone have a graphic of a polyanna vulture?

12:49
Dow 11,131.25 +41.62 (+0.38%)
Nasdaq 2,313.54 +3.19 (+0.14%)
S&P 500 1,288.03 +1.46 (+0.11%)
10-Yr Bond 49.61 +0.29 (+0.59%)
NYSE Volume 1,022,934,000
Nasdaq Volume 855,569,000

12:30 pm : Not much has changed since the last update as the blue chips continue to outpace their Nasdaq counterparts. Aside from a 3.7% surge lifting Boeing (BA 83.51 +2.94) to a historic high, the Dow has also found support from General Motors (GM 19.84 +0.62), which is up 3.2% following positive commentary from the auto maker's second in command Robert Lutz regarding GM's ongoing turnaround. DJ30 +36.49 NASDAQ +2.06 SP500 +1.41 NASDAQ Dec/Adv/Vol 1410/1452/794 mln NYSE Dec/Adv/Vol 1648/1430/670 mln

12:00 pm : Stocks are sporting modest gains midday as bargain hunters step in following recent market weakness. However, investors' ongoing preoccupation with higher oil prices and rising interest rates, which underscores our Neutral view, has kept the market's advance minimal and sector leadership mixed.

Supporting some of this morning's recovery efforts has been continued momentum in Industrials, as Boeing's (BA 83.45 +2.88) 80-aircraft deal with China plays into our Overweight rating on the sector. Health Care has also been a source of early support, getting a big lift from a rebound in HMOs. Genentech (DNA 80.85 -0.85), which is not a member of the S&P 500 but is still influential nonetheless, beat expectations and raised its outlook but disappointing Rituxin sales have prompted some investors to lock in recent gains. Technology has benefited from a recovery in semiconductor, following an upgrade on KLA-Tencor (KLAC 46.71 +0.91) and upbeat analyst commentary on Micron Technology (MU 15.38 +0.28), and follow-through buying in communications equipment fueled by an analyst upgrade on suggested holding Motorola (MOT 23.87 +0.30).

The absence of leadership from Energy, which is again expected to account for the bulk of EPS growth on the S&P 500, continues to act as an overhang as oil prices remain volatile following mixed weekly inventories data. Consumer Discretionary has also been under pressure, as rising prices at the pump make retail stocks less attractive and rising bond yields weigh on rate-sensitive areas like homebuilding. Consolidation in Treasuries, fueled by worries that the Fed will go too far with its tightening efforts to keep inflation in check and data that showed the trade deficit in February narrowed more than economist's anticipated, has lifted the yield on the 10-yr note to 4.95% and within reach of 5.0%, underpinning a sense of nervousness that doesn't appear to be going away anytime soon. DJ30 +36.58 NASDAQ +2.02 SP500 +1.31 NASDAQ Dec/Adv/Vol 1378/1440/724 mln NYSE Dec/Adv/Vol 1402/1626/600 mln

[RawMaterials]

66. how about this one

[ozymandius]

80. good color choice

so vividly depicts the pollyannish disemboweling of its prey

[Roland99]

68. Not of a vulture but of a pollyanna

Fly stock prices, fly! Fly to the glorious heavens above!


:D

[AnneD]

69. Need to photo shop

the butterfly out and substitute a vulture.

[Roland99]

70. hmm...or create a hybrid vulture/faerie?

[AnneD]

76. That hybrid...

just seems like a violation of some natural law :dilemma:.... althought it would certainly find it's niche on WS.

[ozymandius]

79. good one

Maybe someone can photoshop her holding some carrion.

[UpInArms]

73. Water Pik: Acquisition by Carlyle, Zodiac completed

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B565C0E13%2D828E%2D4A5B%2DA1C4%2DA0B501C32A78%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Water Pik Technologies Inc. (PIK 27.74, +0.01, +0.0% ) on Wednesday said the company's $380 million acquisition by the Carlyle Group and Zodiac S.A. has been completed. Under the terms of the agreement, shareholders will receive $27.75 a share in cash, the Newport Beach, Calif.-based maker of healthcare and pool products said.

[AnneD]

77. Great....

does that mean we can use it to wash these guys mouths out. I vote for a pneumatic setting....Or maybe they want to design a Gitmo line.

[ozymandius]

78. another happy day in the salt mines

Dow 11,129.97 +40.34 (+0.36%)
Nasdaq 2,314.68 +4.33 (+0.19%)
S&P 500 1,288.12 +1.55 (+0.12%)
10-Yr Bond 49.76 +0.44 (+0.89%)
NYSE Volume 1,937,159,000
Nasdaq Volume 1,572,147,000

4:20 pm : Investors looking for bargains following recent market weakness looked past a surge in bond yields, embracing upbeat corporate news, a narrowing trade deficit and finally, for the moment anyway, sidelining their preoccupation with higher energy bills as oil prices fell from 7-month highs. Oil prices closed down 0.5% and below $69/pbl following a larger than expected build in weekly crude inventories to 8-yr highs.

It is worth noting, however, even though the market showed some resilience in the face of a sell-off in Treasuries, as the stock market may have already priced in the specter of higher rates over the last few sessions, below average total volume indicates that there was little conviction behind today's recovery efforts as the much of the institutional money headed for the exits early. Consolidation in bonds, fueled by worries that the Fed will go too far with its tightening efforts to keep inflation in check and data that showed the trade deficit in February narrowed more than economist's anticipated, lifted the yield on the 10-yr note (-12/32) toward its highest levels in nearly four years and within reach of 5.0%. Such high borrowing costs still underscore our Neutral market view.

With regard to sector strength and weakness, Industrials provided the bulk of support behind the Wednesday's recovery efforts. The sector got a huge boost from Boeing (BA 83.31 +2.74), which hit an all-time high after inking a $4.6 bln aircraft deal with China -- a move that plays into our Overweight rating on the sector -- as well as gains in transportation stocks that benefited from oil's pullback. Health Care was also a source of market support, getting a big lift from a rebound in HMOs and strength in biotech despite consolidation in one of the group's biggest names. Genentech (DNA 80.85 -0.85), which is not a member of the S&P 500 but is still influential nonetheless, beat expectations and raised its outlook, but disappointing Rituxin sales prompted investors to lock in recent gains.

Consumer Discretionary was also in focus following better than expected earnings and upside guidance from Circuit City (CC 26.68 +2.07) and amid positive commentary from General Motors' (GM 20.08 +0.86) Chairman Robert Lutz regarding GM's ongoing turnaround. Weakness in retail and homebuilding, however, kept the sector from closing in positive territory. Energy, however, turned in the day's worst performance as participants used a pullback in oil prices as an incentive to consolidate recent gains in refiners and explorers. The absence of leadership from Technology also prevented the market from moving more aggressively to the upside. Semiconductor benefited from an upgrade on KLA-Tencor (KLAC 46.54 +0.74), upbeat analyst commentary on Micron Technology (MU 15.34 +0.24) and a 2.8% surge in Advanced Micro Devices (AMD 35.29 +0.94) heading into its earnings report was not enough to offset weakness in computer hardware and storage. BTK +1.5% DJ30 +40.34 DJTA +0.3% DJUA +0.1% DOT -0.2% NASDAQ +4.33 R2K +0.7% SOX +0.6% SP400 +0.3% SP500 +1.56 XOI +0.1% NASDAQ Dec/Adv/Vol 1332/1653/1.55 bln NYSE Dec/Adv/Vol 1584/1651/1.39 bln

[JNelson6563]

81. & futures are bright/shiny as of 7:45 this eve

I'm so grateful things are just great. We can all breathe a sigh of relief.

[54anickel]

82. Ready for $262 a barrel oil? (OMG! Did I miss this yesterday?)

Two of the world's most successful investors say oil will be in short supply in the coming months.

http://money.cnn.com/2006/01/27/news/international/pluggedin_fortune/index.htm

April 11, 2006: 2:31 PM EDT


DAVOS, Switzerland (FORTUNE) - Be afraid. Be very afraid.

That's the message from two of the world's most successful investors on the topic of high oil prices. One of them, Hermitage Capital's Bill Browder, has outlined six scenarios that could take oil up to a downright terrifying $262 a barrel.

The other, billionaire investor George Soros, wouldn't make any specific predictions about prices. But as a legendary commodities player, it's worth paying heed to the words of the man who once took on the Bank of England -- and won. "I'm very worried about the supply-demand balance, which is very tight," Soros says.

"U.S. power and influence has declined precipitously because of Iraq and the war on terror and that creates an incentive for anyone who wants to make trouble to go ahead and make it." As an example, Soros pointed to the regime in Iran, which is heading towards a confrontation with the West over its nuclear power program and doesn't show any signs of compromising. "Iran is on a collision course and I have a difficulty seeing how such a collision can be avoided," he says.

Another emboldened troublemaker is Russian president Vladimir Putin, Soros said, citing Putin's recent decision to briefly shut the supply of natural gas to Ukraine. The only bit of optimism Soros could offer was that the next 12 months would be most dangerous in terms of any price shocks, because beginning in 2007 he predicts new oil supplies will come online.

more...

[Roland99]

83. I saw an article discussing about 2-3 weeks ago. The $262 is worst-case

scenario stuff but, well, what hasn't been almost a worst-case scenario since * took office?

[54anickel]

84. Worst case seems to be par for the course these days. Then again

I really think that worst case is what this mal-admin tends to aim for. Guess I should give them credit for being soooo successful in their endeavors.

[Roland99]

85. "When they're bad, they're *really* bad"

apologies to Mae West. ;)