STOCK MARKET WATCH, Thursday 13 April

[ozymandius]

Thursday April 13, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1012 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1939 DAYS
WHERE'S OSAMA BIN-LADEN? 1639 DAYS
DAYS SINCE ENRON COLLAPSE = 1600
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 12, 2006

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%)
Gold future... 601.30 +1.90 (+0.32%)
30-Year Bond 5.05% +0.05 (+0.96%)
10-Yr Bond... 4.98% +0.04 (+0.89%)






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

HIGHER INTEREST RATES & INFLATION

Just over two hours into the trading session the broad stock indexes stand slightly in positive territory after noteworthy declines on Friday and yesterday. Stock prices have stabilized with a good earnings report from Circuit City on strong sales of flat panel TV’s during the Holiday Season. Boeing also reported a large order from China for 80 aircraft. The big concern for stocks is the slowing economy and rising interest rates. Interest rates are creeping higher again this morning and the dollar is slightly higher after a better than expected trade deficit was reported by the Commerce Department.

According to a Bloomberg survey analysts expectations called for a February trade gap of $67.5 billion follow the record $68.6 billion in January. The deficit reported this morning was $65.7 billion, still the third highest on record. Most analysts suggest this is only a temporary reprieve from what is expected to be another record year for trade deficits. Higher oil prices and continued strong demand from China are expected to drive the deficit moving forward. As it stands, the gap with China narrowed significantly from $17.9 billion in January to $13.8 billion in February. Time will tell how much the higher interest rates will take their toll on consumer spending.

-cut-

Interest Rates Rising

Two weeks ago right after the Fed meeting I noted a comment by Bill Gross of PIMCO who rightly stated that the employment figures would indicate the near-term direction for interest rates. He said strong employment data would signal a further sell-off in bonds ushering in more increases by the Federal Reserve. Bond traders are pricing-in at least two more increases from the Fed to 5.25%. The curve is still flat with the two-year yield currently standing at 4.90%, five-year at 4.89% and the ten-year at 4.96%. Treasury yields should be around 5.4% to 5.5% by the end of June if all goes as expected.

-cut-

When the first hurricane hits this season at least the government and the oil companies will have an excuse for higher prices, not to mention the growing turmoil in Iraq and Nigeria, and the growing tensions with Iran. The real issue is a big increase in the supply of money…that is the core of the inflation issue. Remember, real inflation is very different from the Fed managing inflation expectations with contrived data and a mish-mash of Fed-speak. Based on the above charts, me-thinks they will continue raising interest rates to slow consumption. Keep an eye on the dollar to see just how fast interest rates will rise.

more...

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

[ozymandius]

2. Today's Reports-a-plenty

8:30 AM Business Inventories Feb
Briefing Forecast 0.3%
Market Expects 0.3%
Prior 0.4%

8:30 AM Export Prices ex-ag. Mar
Briefing Forecast NA
Market Expects NA
Prior 0.1%

8:30 AM Import Prices ex-oil Mar
Briefing Forecast NA
Market Expects NA
Prior -0.5%

8:30 AM Initial Claims 04/08
Briefing Forecast 305K
Market Expects 305K
Prior 299K

8:30 AM Retail Sales Mar
Briefing Forecast 0.6%
Market Expects 0.5%
Prior -1.4%

8:30 AM Retail Sales ex-auto Mar
Briefing Forecast 0.7%
Market Expects 0.5%
Prior -0.6%

9:50 AM Mich Sentiment-Prel. Apr
Briefing Forecast 88.5
Market Expects 89.0
Prior 88.9

[UpInArms]

20. 8:30 Reports tumbling in:

8:30 AM ET 4/13/06 U.S. IMPORT PRICES EX-FUELS UP 0.7% YR-OVER-YR

8:30 AM ET 4/13/06 U.S. MARCH BUILDING MATERIALS SALES UP 1.2%

8:30 AM ET 4/13/06 U.S. MARCH NON-FUEL IMPORT PRICES RISE 0.1%

8:30 AM ET 4/13/06 U.S. MARCH RETAIL SALES EX-AUTOS, EX-GAS UP 0.4%

8:30 AM ET 4/13/06 U.S. MARCH NON-PETROLEUM IMPORT PRICES FALL 0.3%

8:30 AM ET 4/13/06 U.S. MARCH GASOLINE STATION SALES FALL 0.1%

8:30 AM ET 4/13/06 U.S. MARCH IMPORT PRICES FALL 0.4% VS RISE 0.1% EXPECTED

8:30 AM ET 4/13/06 U.S. MARCH AUTO SALES UP 1.6%

8:30 AM ET 4/13/06 U.S. CONTINUING JOBLESS CLAIMS DOWN 4,000 TO 2.42 MLN

8:30 AM ET 4/13/06 U.S. FEB. RETAIL SALES REVISED UP TO -0.8% VS. -1.4%

8:30 AM ET 4/13/06 U.S. 4-WEEK AVG. JOBLESS CLAIMS DOWN 1,500 TO 307,500

8:30 AM ET 4/13/06 U.S. MARCH RETAIL SALES EX-AUTOS UP 0.4% AS EXPECTED

8:30 AM ET 4/13/06 U.S. WEEKLY CLAIMS HIGHEST SINCE WEEK ENDED MARCH 11

8:30 AM ET 4/13/06 U.S. MARCH RETAIL SALES RISE 0.6% VS. 0.4% EXPECTED

8:30 AM ET 4/13/06 U.S. WEEKLY JOBLESS CLAIMS UP 12,000 TO 313,000

[UpInArms]

21. U.S. jobless claims rise in latest week to 313,000 - last wk rev'd up 2K

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCA003037%2D1C43%2D4077%2DB56A%2D3FD13DC45016%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - First-time claims for state unemployment benefits rose in the latest week, the Labor Department reported Thursday. The number of initial claims in the week ending April 8 rose 12,000 to 313,000. It's the highest level since the week ended March 11. The increase was larger than expected. The consensus forecast of Wall Street economists was for claims to inch higher by 6,000 to 305,000. Claims in the previous week were revised to a drop of 3,000 to 301,000 compared with the initial estimate of a fall of 5,000 to 299,000. The four-week average of initial claims fell 1,500 to 307,500. Meanwhile, the number of Americans receiving state jobless benefits held steady fell 4,000 to 2.42 million in the week ending April 1, the lowest since the week ended Jan. 20.

[UpInArms]

22. U.S. March retail sales up 0.6% (ex-autos it's up 0.4%)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B9DBE4260%2D7D80%2D4D2C%2D8650%2D213423BC25A7%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - U.S. retail sales increased 0.6% in March, the Commerce Department said Thursday, with unexpected strength in auto and building materials sales. Economists were looking for sales to rise 0.4%. Excluding the 1.6% rise in auto sales, retail sales increased 0.4%, as expected. Sales in February were revised higher to show a 0.8% decline from the previously reported 1.4% decline. Sales rose 3% in January. Auto sales increased 1.6%. Gasoline sales fell 0.1%. Building materials sales rose 1.2%.

Looks like that continuing building without a market is keeping the sales up :eyes:

[spotbird]

70. All the newly unemployed have nothing to do with their

time so they shop. ;)

[UpInArms]

23. U.S. March import prices fall 0.4, 3rd drop in four months (ex-fuel +0.2%)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BDE23D3C9%2D09A7%2D4773%2D8B55%2DC62F53039766%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - U.S. import prices fell 0.4% in March, the third decline in the past four months, the Labor Department said Thursday. The drop was a surprise. Economists were expecting import prices to rise 0.1% in March. Imported petroleum prices fell 0.7% in March, the biggest drop since November. Prices of imports excluding petroleum fell by 0.3%. Import prices excluding all fuels rose 0.1% in March and was up 0.7% in the past 12 months. Meanwhile, prices of U.S. exports rose 0.2% in March. Agricultural export prices fell 0.2%. Prices of all other exports rose 0.2%.

[UpInArms]

31. April UMich Consumer Sentiment @ 89.2 (see! We are happy!)

9:47 AM ET 4/13/06 U.S. APRIL UMICH CONSUMER SENTIMENT 89.2 VS 88.9 IN MARCH

9:48 AM ET 4/13/06 U.S. APRIL UMICH SENTIMENT JUST BELOW CONSENSUS 89.3

[AnneD]

37. Morning Marketeers,

:donut: What in hell are they putting in the water in Michigan? :eyes:

Hubby takes Arabic classes 2 nights a week and before his classes we meet for dinner at an Indian sweet shop. They have cheap eats that won't kill you. The owner is Punjabi and plays great Punjabi music (my favourite Indian pop music-and very popular remix with Ameican rap by the way). Sometimes, if we are lucky, we have some of our other Indian friends join us for some tea and conversation. One guy is a smart trader(and investment banker) from Canada. One guy has a thriving Real Estate business and on guy is a Chiropracter. It is an eclectic and interesting group and we talk about everything. We are (or were) evenly split on politics. One of the things I found interesting was our traders observations. I just asked a general question....what do you think about the market now. He said that he has noticed some things that really bothered him. He said the data and reports from the government were not adding up. He said that 'they are going back with correction far more than I have ever know. IT IS AS IF THEY ARE TRYING TO MAKE THE NUMBERS ADD UP.' This guy does not come to DU but these are his conclusions after a lot of thought. He has scaled back a bit and watches his investments and trades very closely. He was predicting the market to go down next year. I, of course told him that I thought it would be this year. The con is becoming more evident...

Happy hunting and watch out for the bears.....and Happy Easter to all and have a safe peaceful break.

[UpInArms]

41. MSNBC Impeachment Survey - 86% believe *Co should be IMPEACHED

http://www.msnbc.msn.com/id/10562904#survey

Do you believe President Bush's actions justify impeachment? * 235636 responses

Yes, between the secret spying, the deceptions leading to war and more, there is plenty to justify putting him on trial.
86%

No, like any president, he has made a few missteps, but nothing approaching "high crimes and misdemeanors."
4.4%

No, the man has done absolutely nothing wrong. Impeachment would just be a political lynching.
7.6%

I don't know.
1.8%

[AnneD]

47. And when you see numbers like that...

you wonder why Congress doesn't have any balls. Seems like most American's are ready to prosecute! Damn spineless DEMS.

[UpInArms]

34. DOE: US NatGas Supply up 19 bln cubic ft

10:32 AM ET 4/13/06 U.S. NATURAL GAS SUPPLY POSTS FIRST INCREASE OF THE SEASON

10:32 AM ET 4/13/06 U.S. NATURAL GAS SUPPLY UP 19 BLN CUBIC FT: ENERGY DEPT

10:32 AM ET 4/13/06 MAY NATURAL GAS DOWN 3.8C AT $6.77/MLN BTUS

[ozymandius]

3. Oil Prices Hover Above $68 a Barrel

SINGAPORE - Oil prices slid Thursday in Asian trading after the U.S. government reported that its country's crude stocks last week swelled to their highest level in eight years.

Light, sweet crude for May delivery lost 35 cents to $68.27 a barrel in electronic trading on the New York Mercantile Exchange, mid-afternoon in Singapore. The contract slipped 36 cents Wednesday to settle at $68.62 a barrel.

Inventories of crude oil rose 3.2 million barrels to 346 million barrels, their highest level since early 1998, the U.S. Energy Department reported. It was the third straight weekly build in crude stocks.

With refiners apparently still undergoing seasonal maintenance ahead of the summer driving season, petroleum products continued to shrink.

more...

[ozymandius]

4. Oil retreats on swelling US crude stocks

LONDON (Reuters) - Oil retreated further on Thursday from this week's peaks of nearly $70 after U.S. crude supplies rose to their highest level in nearly eight years, but tension over Iran's nuclear ambitions limited bearish sentiment.

-cut-

"We're being bounced around as robust crude supplies take the cream off a market driven up by geopolitical concerns," said Justin Smirk, senior economist at Westpac in Sydney.

Crude stocks in commercial storage in the United States rose by 3.2 million barrels last week to 346 million barrels, more than twice the rise forecast in a Reuters poll and the highest level since 1998, U.S. Energy Information Administration (EIA) data showed on Wednesday.

But with forward contracts for crude delivery later in the year trading near records above $71, analysts say losses will be limited by supply concerns over Iran and summer gasoline as well as buying from fund investors.

more...

[Roland99]

8. Oil inventories are at an 8-year high but gas inventories are dropping

and gas prices are rising higher than they were last year and refineries aren't having to use MTBE (or is it MBTE, I always forget ;) ) either so that excuse can't be used this year. Guess it's just a matter of keeping supplies low and making more bank off the increased prices.

Fargin' iceholes.

[ozymandius]

7. Tame oil's wild price ride with a tax (opinion)

CAMBRIDGE, MASS. – With the onslaught of high oil prices, war in the Middle East, an increasingly bellicose Iran, and the aftermath of hurricane Katrina, energy security has reemerged as a major public policy priority.

We have been here before, and the responses from elected officials have been quite predictable: find scapegoats (usually the oil companies), demand subsidies for the energy technology of the month, and point out that the country lacks a coherent national energy policy.

Give it a few years, however, and the sense of urgency will fall in tandem with the price of oil and we'll go back to business as usual. Presidents from Richard Nixon to Jimmy Carter to George W. Bush have all made similar pledges and yet progress in many of these areas over the past 30 years has been paltry at best. Why?

-cut-

At first glance this may seem politically naive. With gasoline prices hovering around $2.73 a gallon and predictions of even higher prices to come, the chance that our political leaders will pass a gasoline tax in an election year is nil. An alternative would be for the government to set a floor price for oil and then tax the difference between that floor price and the actual price. If oil remains above the floor, there is no tax, but if oil prices drop below it, investors, entrepreneurs and inventors all will know that there will be a market for their products at the floor price. Revenue from the taxes can either be used to accelerate the development of new energy technologies or to offset other taxes.

more...

http://www.csmonitor.com/2006/0413/p09s02-coop.html

[UpInArms]

38. Petrodollars heighten risk from global imbalances: IMF report

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B600FD590%2D2CF4%2D4EF8%2D82A9%2D7B2D435ADCD4%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - Petrodollars have returned to the world stage, and could play a potentially destabilizing role in the U.S. and global trade imbalances, according to a new report from the International Monetary Fund released Thursday.
Petrodollars, just as much a part of the 1970s as bell bottoms and platform shoes, are dollars paid to oil-producing countries and then re-invested in major financial markets.

In the 1970s, these funds were deposited in big Western banks. This time around, it is more complicated. Petrodollars are being recycled through international capital markets and offshore accounts, partially because of the post 9/11 Patriot Act reporting requirements, the IMF said.

But these investments have kept U.S. interest rates low, allowing the U.S. trade imbalance to persist, because there has been no pain from running large trade deficits.

This only adding to the risk of an eventual sharp drop in the dollar, a spike in U.S. interest rates, and a recession, according to the IMF report. The report was one of the chapters of the IMF's World Economic Outlook released Thursday. See full story.

<snip>

The IMF said that much of the $30 per barrel increase in oil prices since 2002 is likely to be permanent. The value of oil exports has more than doubles to nearly $800 billion in 2005.

The higher fuel bill has accounted for one-half of the deterioration in the U.S. current account deficit over the last two years, the agency estimated.

...more...

[UpInArms]

51. May Crude @ $68.50 bbl - May NatGas @ $7.02 mln btus

12:31 PM ET 4/13/06 MAY CRUDE FALLS 12C TO $68.50/BRL IN AFTERNOON NY TRADING

12:31 PM ET 4/13/06 MAY NATURAL GAS TAPS A ONE-WEEK HIGH OF $7.15/MLN BTUS

12:31 PM ET 4/13/06 MAY NATURAL GAS LAST UP 21.2C AT $7.02/MLN BTUS

[Roland99]

54. Natural gas futures tap one-week high.."it's starting to look off-balance"

http://quotes.freerealtime.com/dl/frt/N?tmn_id={ACB2A1B7-082B-4FEC-922A-BF597A533E89}

Supply's up, but traders mull bigger picture; crude eases
By Myra P. Saefong, MarketWatch
Last Update: 1:12 PM ET 4/13/06

SAN FRANCISCO (MarketWatch) -- Natural-gas futures climbed to their highest level in a week Thursday, staging a complete reversal from an earlier drop to a low not seen since late February, as traders weighed the first U.S. supply increase of the season against concerns about hurricane season and high-priced oil.

Storage operators are "talking of a glut in natural gas this summer as many could fill to capacity," said Ben Smith, a managing partner at First Enercast Financial.

But with such strength in crude-oil prices, "natural gas is due for some increasing demand growth," he said. "It's difficult to have $70 crude and $6 gas for very long. Energy products are interlinked by some degree, and it's starting to look off-balance."

Well, now. We certainly can't have the price-gouging be *out* of balance, can we?

[ozymandius]

5. Zillow offers bird's eye view of home real estate

SAN FRANCISCO (Reuters) - Zillow.com plans on Thursday to introduce a new feature to its real estate research Web site offering bird's eye, low-altitude photographs of residential neighborhoods, via a deal with software maker Microsoft Corp..

The Seattle-based company, which is looking to transform the way people research home buying and selling, launched Zillow earlier this year.

In the same way that Expedia took the mystery out of ticket pricing, Zillow allows consumers to find out key data on neighborhoods and calculate the value of their homes. It features no property listings.

Using Microsoft's Virtual Earth platform, Zillow will now be the first real estate site to give consumers an immersive, 45-degree-angle view of residential neighborhoods down to specific homes, allowing them to zoom in from four directions.

more...

[ozymandius]

6. China, U.S. reach trade deals

WASHINGTON -- The U.S. has won a string of commitments from China aimed at narrowing a record trade gap, but the White House put Beijing on notice yesterday the promises must be followed by action.

"It's progress -- and now we'll look forward to seeing results," White House press secretary Scott McClellan said.

U.S. President Bush pressed the same message yesterday morning in a meeting with Chinese Vice-Premier Wu Yi, who led the Chinese delegation to the Washington meetings between the two sides that led to a series of deals.

more...

http://lfpress.ca/newsstand/Business/2006/04/13/1532489-sun.html

[UpInArms]

9. daily dollar watch

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

Last trade 89.62 Change +0.03 (+0.03%)

Skeptics Surround U.S. Deficit

http://www.dailyfx.com/story/dailyfx-reports/top-fx-market-movers/8001-skeptics-surround-us.html

Skeptics Surround U.S. Deficit
Euro bidding dissipated later on in the overnight session ahead of the trade balance figures early in New York. Subsequently, with selling pressure, stops below the range low of 1.2140 were set off contributing to dollar buying on a better than expected narrowing of the U.S. trade balance. For the month of February, the overweight deficit narrowed by 4.1 percent, placing the figure below the record $68.5 billion seen in the previous month. Additionally, sentiment was heavy on thin central bank diversification attempts on the session adding to greenback bidding. However, the Euro regained composure later on in the session following bids from Russian and Middle Eastern parties, stabilizing the pair at the 1.2100 handle. Speculation also mounted during the session as market participants questioned the sustainability of a narrowed deficit. Nonetheless, further focus looks to be placed on tomorrow’s retail sales figures and consumer confidence as a shortened week will leave Friday bland. Should both report higher, participants should see a brief test of the 1.2050 floor.

Rumorville
Further bidding looks to enter on the 1.2070 figure with corresponding stops below at 1.2025. Establishing the lower bar, selling atop the 1.2100 handle remains to keep any fluctuations in the Asian session muted. Offers are heavy at 1.2130 and 1.2170.

...more...

Dollar Rally Limited as Market Questions Trade Balance Number

http://www.dailyfx.com/story/dailyfx-reports/daily-fundamentals/8000-dollar-rally-limited-as-market-questions-trade-balance.html

The US twin deficits were the major focus of the day. For the month of February, the trade deficit narrowed from a record high of $68.5 billion to a better than forecasted $65.7 billion. The budget deficit however did not benefit from the same improvement, instead widening to another record high of -$85.5 billion from -$71.2 billion. The tempered rally in the dollar suggests that the market doesn’t necessary believe that just because the trade deficit improved in February, that it will improve again in March. The details of the report indicate that the surplus with China narrowed, but this is probably due to the Chinese New Year holiday that month. Instead, as we saw in yesterday’s March trade figures from China, their surplus increased significantly last month. In fact, their February trade surplus was the lowest since August 2004, which coincides well with the improvement that we saw in the US trade balance this morning. However, with China’s trade numbers last month the highest in the past four, we expect the US balance to have ballooned again in March. Taking a look at some of the past figures, we see that the last time China’s monthly surplus was as high as reported yesterday, which was back in October, the US trade deficit for the same month also hit a record high. Also, oil prices began its climb back towards its all time highs in March, not February, providing yet another confirmation that things have probably worsened last month. Therefore the improvement in today’s trade balance should only provide a limited boost for the dollar and is hardly a reason to get too excited about. With the shortened trading week, the next major focus and probably the more telling one will be tomorrow’s retail sales report. Consumer spending is expected to rebound after a sharp drop in February. However, with growing energy prices and higher mortgage payments, there is a possibility for the number to come in weaker. If so, the market will easily forget about the better trade number that we saw this morning. Yet, if it does come in strong, it would be the validation that dollar bulls have been waiting for to back the recent calls by analysts for the Fed to bring interest rates as high as 5.5 or 6 percent.

...more...

[UpInArms]

10. Firm sues 11 banks over "naked" short-selling fees

http://news.yahoo.com/s/nm/financial_shortselling_lawsuit_dc

NEW YORK (Reuters) - A firm on Wednesday filed an antitrust lawsuit against 11 major U.S. broker-dealers, accusing them of colluding over six years to collect unearned fees as a result of a "naked short selling" practice.

In its complaint filed with the Manhattan federal court, Electronic Trading Group LLC accused the defendants of improperly charging fees by failing to borrow or deliver stock needed to back short sales, essentially resulting in "phantom" transactions. The plaintiff seeks triple damages, and the lawsuit seeks class-action status.

Defendants include the broker-dealer units of Bank of America Corp. (NYSE:BAC - news), Bank of New York Co. (NYSE:BK - news), Bear Stearns Cos. (NYSE:BSC - news), Citigroup Inc. (NYSE:C - news), Credit Suisse Group Inc. (CSGN.VX), Deutsche Bank AG (DBKGn.DE), Goldman Sachs Group Inc. (NYSE:GS - news), Lehman Brothers Holdings Inc. (NYSE:LEH - news), Merrill Lynch & Co. (NYSE:MER - news), Morgan Stanley (NYSE:MS - news) and UBS AG (UBSN.VX).

Short-selling involves a bet that a company's stock will fall. Typically, an investor sells borrowed stock, and hopes to buy it back at a lower price to replenish the lender.

In a naked short sale, the investor sells stock that has not yet been borrowed. Naked short selling is usually illegal, in part because the stock supposedly underlying the transaction may never be borrowed or may not exist. It can be permitted to promote market stability.

...more...

[UpInArms]

11. Treasury alters security notification process -Snow (CFIUS)

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-04-13T002335Z_01_N12325612_RTRIDST_0_ECONOMY-SECURITY-SNOW.XML

OXFORD, Miss., April 12 (Reuters) - The U.S. Treasury has made internal changes to security reviews for foreign acquisitions of U.S. assets, including faster notification of Bush administration staff of sensitive issues, Treasury Secretary John Snow said on Wednesday.

Snow said the changes, which will keep Bush-appointed, Senate-confirmed staff in reviewing agencies "in the loop" on proposed transactions, are the result of lessons learned from the storm of controversy over the proposed takeover of U.S. port operations by a United Arab Emirates-owned company.

Treasury oversees the Committee on Foreign Investment in the United States, an inter-agency panel that reviews foreign investments, including the Dubai Ports World takeover of Britain's Peninsular and Oriental Steam Navigation Co.

"The problem we ran into last time was the communications process didn't work the way it should. I regret that," Snow told reporters after a speech at the University of Mississippi here. "It made it difficult to ever get the true story out."

He said the Bush administration did not have adequate time to "frame the issues" surrounding the deal before misconceptions over Dubai Ports World's role and the future handling of security for the six U.S. ports caused a groundswell of public concern, which he added was exacerbated by talk radio shows.

<snip>

Snow declined to comment directly on the CFIUS review of another proposed acquisition by a Dubai-owned company of Doncasters, a British engineering group with U.S. holdings, including a plant that makes army tank engines.

...more...

[54anickel]

12. `Revolutionary' Fed Study Has Economists Rethinking Forecasts

http://www.bloomberg.com/apps/news?pid=10000103&sid=acqbH7wK9LK8&refer=us

April 13 (Bloomberg) -- A new Federal Reserve study has shaken economists' forecasts by suggesting the U.S. economy will have to decelerate much more over the next decade than most now expect.

The study, to be published in July, finds that the retirement of the Baby Boom generation will force far-reaching adjustments in the way the economy works. Forecasts for everything from growth and employment to corporate profits and interest rates will have to be recast.

The Fed's report ``is such a revolutionary shot,'' said Ian Morris, chief U.S. economist at HSBC Securities USA Inc. in New York. ``Something like this is going to take time to digest.''

The study projects a slower pace of workforce growth than most economists now forecast, suggesting the economy can't keep growing at the present-day pace without generating pressure for higher wages and inflation. To prevent that, the Fed will have to enforce a lower speed limit on the economy by pushing up interest rates.

more...

[UpInArms]

14. Now that is rich!

So this is how they are going to sell their next pile of crap!

:rofl:

In order for it to survive, they have to kill the economy!

:rofl:

Reminds me of that military thing:

"We had to destroy the village to save it."

[54anickel]

15. Yep, good to see not everyone is buying it. They are such ly-y-y-ing

BASTARDS!

[54anickel]

16. Greenspan predicts US governance revamp

http://news.ft.com/cms/s/778d9570-c9e5-11da-852f-0000779e2340.html

Alan Greenspan, former chairman of the US Federal Reserve, predicted on Wednesday the US would make “changes” to the burdensome financial and corporate governance requirements driving companies out of US markets.

Mr Greenspan initially supported the passage of the Sarbanes-Oxley law – the landmark 2002 legislation introduced after the Enron and WorldCom scandals – but said on Wednesday he was “disturbed” when companies started favouring London over New York for their flotations.

“The Sarbanes-Oxley Act has created significant problems for foreign investors with its regulatory structure,” he said at a question and answer session at the Asian Financial Centres conference in Seoul, organised by the Financial Times. “I am nevertheless acutely aware and disturbed by the fact that initial public offerings have moved away from the US – and to a large extent have moved to London.”

Although the basis of the law was a definite advance in terms of governance, some parts of it created too many burdens for business, he said, emphasising the provision that forces companies to have their internal controls certified by auditors.

more...

Hmmmm, Fed and former Fed trying to "move the markets"?

[wordpix]

33. this is so wrong. Inflation is increasing due to high cost of fuel IMO

Workers need higher wages to make ends meet when their fuel oil, electricity and gas at the pump increases 20-50% per year (lately). Businesses and food production are also being impacted with the higher fuel costs. To keep raising interest rates will KILL the economy which is only "hot" in the energy sector---everyone else is just trying to keep pace and stay in the black. Real estate and home building are already feeling the pinch of higher interest rates, and a slowdown is occurring.

I'm not an economist, but I do see the trends and especially, the impact of the high energy costs and increased interest rates on my local economy.

[UpInArms]

13. Treasuries: 10-year yield above 5% for first time since June 2002

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B608E407F%2D9CED%2D41F6%2D990B%2DAAD6345920F5%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Treasurys fell early Thursday, sending yields above 5% for the first time since June 2002, as traders awaited a slew of data expected to show continued economic strength.

The 10-year was last trading down 7/32 at 96 2/32, sending its yield ($TNX ) up to 5.012% from 4.978% late Wednesday.

The 30-year was down 17/32 at 90 30/32, with its yield ($TYX ) at 5.094%.

<snip>

Treasurys have also come under pressure from greater economic strength in Europe and Japan, and concerns about how oil producers will spend their surplus "petrodollars," said Friedlander.

Oil exporters have sharply cut back on their purchases of long-term U.S. securities since hitting a peak in early 2005, he said.

...more...

[JNelson6563]

24. Where will it end?

Lunacy I tell ya!! :scared:

[UpInArms]

36. 30-yr @ 5.1%

10:54 AM ET 4/13/06 <$TYX> 30-YR YIELD AT 5.1% - FIRST TIME SINCE AUGUST 6, 2004

[mike923]

39. Is this good or bad?*

nfm

[UpInArms]

42. if you look long-term

and the rates for long-term debt are rising - you also have to note that the national debt is rising - and thus, the cost of that debt will also rise.

Eventually, the government will be competing with businesses and individuals for that credit and rates will continue to escalate, making the burden of debt more expensive for everyone (except it will be a double whammy) as their own debts costs more and the federal budget will truly be busted with the burden of just paying the interest on the national debt.

Now, it's up to you to decide whether rising long-term rates is good or bad :D

:hi:

[ozymandius]

49. UIA, you mention a point that I overlooked.

"the cost of that debt will also rise."

And who ever heard of this Federal government avoiding massive debt in the past six years?

[UpInArms]

50. here's more information on that

http://www.concordcoalition.org/issues/feddebt/debt-facts.html

Interest on the Publicly Held Debt:

Every borrowed dollar carries an interest cost. The most direct impact of public debt on the federal budget is, therefore, the amount of money taxpayers must come up with each year to finance past borrowing.

Interest on the publicly held debt in fiscal year 2004 amounted to $160.2 billion -- roughly 7 percent of the federal budget.

During the 1980s and 90s, before the 1998-2001 surpluses, interest regularly consumed 13 percent or more of the federal budget a year, reaching a high point of 15.4 percent in 1996.

Interest on the publicly held debt equals 1.4 percent of GDP. Its recent high point was 3.3 percent of GDP in 1991.

Under CBO’s baseline, interest costs will reach $307 billion in 2015, but under the more plausible assumptions mentioned above it jumps to $528 billion.

[Roland99]

58. Esp. when March just set a RECORD AMOUNT OF SPENDING!

[ozymandius]

43. It's bad.

30-Year Bond 5.11% +0.06 +1.21%
10-Year Bond 5.03% +0.06 +1.17%

The difference between the two is so narrow that an interest rate inversion is possible. An inversion of interest rates, as an increase in interest rates, often portends price inflation. Inversion also indicates that our foreign debtors view the U.S. government as a less than favorable investment. An increase in the ten-year yield will indicate higher mortgage interest rates. That economic pillar (real estate) is already cracking.

So it's bad.

[UpInArms]

32. Printing Press Rpt: Fed adds temporary bank reserves via 5 & 14-day repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-13T134029Z_01_N13200809_RTRIDST_0_MARKETS-FED-OPERATIONS-UPDATE-1.XML

NEW YORK, April 13 (Reuters) - The Federal Reserve said on Thursday it added temporary reserves to the banking system via 5-day system repurchase agreements.

Earlier, the Fed said it added temporary reserves to the banking system via $7.0 billion of 14-day system repurchase agreements.

The benchmark fed funds rate last traded at 4.813 percent, above the Fed's current target of 4.75 percent 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]

46. U.S. Treasury to sell $27 bln bills on Monday

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-13T150820Z_01_WAT005291_RTRIDST_0_ECONOMY-BILLS-URGENT.XML

WASHINGTON, April 13 (Reuters) - The U.S. Treasury Department said on Thursday it will sell $14 billion of three-month bills and $13 billion of six-month bills on Monday, April 17.

The bills will be issued on Thursday, April 20.

Proceeds from the sale will be used to refund an estimated $36 billion of publicly held 13- and 26-week bills maturing April 20 and to pay down about $9 billion of debt. Also maturing is an estimated $26 billion of publicly held 4-week Treasury bills, the disposition of which will be announced April 17.

The three-month bills mature on July 20, while the six-month bills mature on Oct. 19.

The Treasury said $6 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 $4.9 billion and for the six-month bills it is $4.55 billion.

...more...

Talk about tricks with smoke and mirrors! How can $27 Billion "refund an estimated $36 billion .... and pay down about $9 billion"????

:rofl:

That printing press must be running fullspeed and other centrifuges are being added daily :eyes:

[UpInArms]

17. GTSI posts loss, auditor casts doubt on prospects (??)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-13T120849Z_01_N13185265_RTRIDST_0_SERVICES-GTSI-EARNS-UPDATE-1.XML

NEW YORK, April 13 (Reuters) - GTSI Corp. (GTSI.O: Quote, Profile, Research), which sells information-technology services to the U.S. government, on Thursday reported a quarterly net loss, reversing a year-earlier profit, hurt by declining sales and a charge.

The company posted a net loss of $5.6 million, or 61 cents per share, for the 2005 fourth quarter, compared with a net profit of $2.7 million, or 29 cents per share, a year ago.

Sales fell about 15 percent to $279.2 million.

GTSI's accounting firm Ernst & Young LLP said in the company's 2005 annual report that there was substantial doubt on the company's ability to continue as a going concern.

...more...

but... but... I thought that the govmint was busy buying technology!

I'm going to have to dig a bit on this one :eyes:

[UpInArms]

26. hmmmm...

GTSI Gets Default Notice From Lender

Saturday, March 4, 2006; D01


GTSI Corp., a Chantilly company that sells technology products and services to the government, has received a default notice from one of its lenders.

Shares of GTSI, which has announced layoffs and management changes in recent weeks, sank 10 percent after the default notice was reported yesterday. The company also said yesterday that it will not release its 2005 financial results on Tuesday as previously planned, but it did not provide details regarding a new date for the filing.

The firm said it was informed on Feb. 27 by GE Commercial Distribution Finance Corp., which is the lead lender, that it breached certain conditions of the loan, including a clause that its ratio of debt to pretax earnings not go beyond a certain point.

The lender also chose to have the loan terminate on its initial maturity date, May 31, rather than extending it for another year. GTSI said it is negotiating to get a forbearance agreement and to arrange a new deal for a longer-term loan.

<snip>

GTSI is trying to restructure itself from a reseller of technology equipment to a more service-oriented company. Two weeks ago, the company said its board of directors had decided to replace longtime chief executive Dendy Young with Leto, a board member and former chief executive of government software giant PRC Inc. At the same time, GTSI said it would reduce its labor force by 10 percent, which follows another 10 percent reduction announced in October.

...more...

Maybe Dendy wasn't shoving enough money into the GOPpiggies pockets?

http://www.newsmeat.com/fec/bystate_detail.php?st=VA&last=young&first=dendy

Young, Dendy Mr.
McLean, VA 22102
GTSI/President & CEO	
GOOD GOVERNMENT FOR AMERICA COMMITTEE (R)	$5,000
primary	10/15/02	
YOUNG, DENDY
MC LEAN, VA 22102
GTSI CORP	STEVENS, THEODORE F (TED) (R)
Senate - AK
STEVENS FOR SENATE COMMITTEE	$1,000
primary	07/31/02	
YOUNG, DENDY
MC LEAN, VA 22102
G T S I	
RNC REPUBLICAN NATIONAL STATE ELECTIONS COMMITTEE	$10,000
primary	02/15/01

Maybe it was a "what have you done for me lately?" kind of thing ... :eyes:

[54anickel]

18. Global Trade War Update (Willie)

http://www.321gold.com/editorials/willie/willie041306.html

Trade war in my opinion coincides with erosion of sovereignty from decades of chronic inflation. Trade protection, even protection from foreign ownership of prized assets, are the manifestation of failed policies. The United States is one of the worst offenders in trade tariffs and policy in opposition to free markets. Year after year of large scale monetary inflation erodes the body economic. It tilts the economy's wealth generation apparatus toward the financial sector, where inflation most vividly appears and where work is minimized. It renders the worker and wages to be uncompetitive, resulting in destroyed entire industries. In the face of frustration, like folded arms, a nation protects itself after years of highly destructive economic policies have wrecked havoc. The consequence is a final chapter marked by wide destruction of commercial relationships. Trade war usually precedes (if history teaches anything) armed conflict, as in war. Voters (often more aware of economic conditions) tend to push Congress toward that war, in both forms. In the 1930 decade, Japan stood in the path for American trade dominance. Now China stands in the path, both as a real and imagined powerful rival and threat. A certain future rival, potentially an enemy, in some ways China is painted as a scapegoat. USGovt leaders are being outfoxed by China on currency management and tactical maneuvers with its vast capital reserves. We are seeing an increasingly toothless America, damaged by both inflation and reckless policy, whose influence and prestige are on the wane. An all-out trade war with China would rocket up US long-term interest rates, causing significant damage quickly.

See "The High Cost of Inflation" for a rant on the subject of consequent economic hardship, and lately lost control, diminished security, and threats to national security. The US public has seen globalization ride as a trend, after a few decades of rampant monetary inflation (govt and credit). Global trade has advanced the industrial growth and power of China. Energy cost distress has advanced the efficient industrial revival in Japan. The US distinguishes itself by making the most powerful (and expensive) weapons. In the United States however, wage gains are non-existent, as three consecutive years of inflation adjusted declines have taken place. The suffered declines are worse than stated, since the adjustment for inflation is very inadequate from gross under-statement. We have created a monster with inflation, and another monster with war. A quote passed my desk last week, relevant to today:

             "For the man who sets out to fight a monster, look to it that he himself does not become a monster." -philosopher Friedrich Nietszche


The Schumer-Graham trade tariff bill against China epitomizes our occasional economic stupidity on the global stage. It is on again, off again, like a threat put on the shelf, then picked up, then put back. Cool heads prevail in recent weeks fortunately, the bill now twice suspended. An argument can be defended that the risk of trade war rises when communication lines are cut, clashes develop in commerce, and hostility is in the air. Nowhere do we see such extremely poor judgment, as we pressure an exporter whom we encouraged five years ago, and put at risk a large slice of capital and credit they supply. The United States has embarked on trade protection legislation on more than one front. We seem to have embarked on a path of economic suicide, with exploding federal deficits, reliance upon foreigners which won a gigantic trade deficit. Now we want to erect one-way street signs certain to anger our trade partners, whose low-cost output is critical to our way of life. We have marched into a corner of our own making. We exchanged low-cost supply for lost industries and colossal debts. Now we resent them for our decisions, when the actual demons were our bad policy and chronic inflation.

Our leaders strain to understand China and its economic state. Boomtowns like Shanghai are not typical. Failure to properly comprehend comes with great risk. Ignorance back in the 'hood and back on the farm, where many emotional poorly read voters reside, carries the same risk when Congressional members must satisfy their occasionally deep hostility and frustration. They will be sorely tempted to play the "anti-China" card. On one hand politicians permit inept and ineffective economic advisors to ransack the nation, to lose jobs, to cater to Wall Street. On the other hand voters loaded for bear with angst urge their Congressional representatives to deliver hostile messages and to enact hostile measures directed against what they perceive to be the villain. In most cases it is not Japan, but rather China. Japan quietly has eaten our lunch. China more visibly eats the entire lunch table, but at our invitation.

While much about China deserves criticism, namely intellectual property royalty payments, like human rights violations, like environmental abuse, like lack of transparent corporate accounting, their yuan currency is just one of several managed Asian currencys. The Japanese yen receives little harsh criticism, yet they abuse the intervention card more than China ever did. Since 1997 and the Asian Meltdown, Asia has embarked on a path whereby they favorably trade economic development and calm financial volatility in exchange for a pile of USTBond IOU paper credits underpinning huge domestic debt. Few realize that without a formal active bond market, China operates at a huge disadvantage in managing its yuan currency. The challenge is like steering a boat without a rudder. It must order a storm so as to shift the boat in location.

more...

[UpInArms]

19. New York & Co. slashes quarterly profit forecast (March sales sucked)

http://news.yahoo.com/s/nm/20060413/bs_nm/retail_newyorkco_outlook_dc

CHICAGO (Reuters) - Clothing retailer New York & Co. Inc. (NYSE:NWY - news) on Thursday said quarterly profit would be much lower than it had expected because of disappointing sales.

The company said it now sees earnings of 9 cents to 13 cents per share for its first quarter, which ends in April, down from its earlier forecast for 20 cents to 23 cents per share.

Analysts on average expected 20 cents, according to Reuters Estimates.

The retailer said that based on current trends, April sales would probably be between $88.5 million and $94 million, with sales at stores open at least a year showing a 1 percent to 6 percent gain.

While that would be a major improvement from March, when same-store sales fell 15.7 percent, New York & Co. said it was not enough to reach its quarterly profit goal.

...more...

[RawMaterials]

25. Bullion bull tips gold to break $US850/oz

PLEASE welcome the latest gold bull: the London-based precious metals research firm GFMS says it's possible the yellow metal will take out its 1980 record of $US850 an ounce within the next few years.

At the very least, gold will be sitting comfortably above the $US600/oz mark by year's end, according to GFMS's Gold Survey 2006 released in London overnight.

The survey found many positive factors pushing gold upwards: high investor demand driven by fears that the US twin deficits constitute a financial ticking bomb, rising energy prices leading to inflation, the possibility of a severe economic slowdown next year, rising tensions in the Middle East due to Iran's nuclear weapons program, and the threat of more global terrorism.

snip..

GFMS, formerly Gold Fields Mineral Services, said the key finding in its 2006 industry survey was the possibility of a further strong increase in the gold price.

Chairman Philip Klapwijk said the bull run would be driven overwhelmingly by investment.

"Levels safely over $US600 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 $US850 could be taken out," said Mr Klapwijk.

GFMS found gold investors believed central banks were becoming friendlier towards gold.

Yet net official gold sales, including those by the European central banks that were signatories to the agreement limiting disposal, rose 40 per cent in 2005 to a new yearly record of 650 tonnes.

GFMS said the prevalent view among investors surveyed was that the longer the US dollar defied gravity, the more likely that any devaluation of the greenback would be severe.



http://www.theaustralian.news.com.au/story/0,20867,18799752-643,00.html


Uh-oo :eyes: Maybe time to get into Euro's or Renminbi (The People's Currency)

[UpInArms]

29. June Gold @ $597.70 oz - May Silver @ $12.655 oz - May Copper @ $2.791 lb

9:42 AM ET 4/13/06 JUNE GOLD FALLS $3.60 TO $597.70/OZ IN MORNING TRADING

9:42 AM ET 4/13/06 MAY SILVER DOWN 0.8C TO TRADE AT $12.655/OZ

9:42 AM ET 4/13/06 MAY COPPER CLIMBS 2.05C TO $2.791/LB AFTER A RECORD $2.803

[UpInArms]

48. June Gold @ $599.10 oz - May Copper @ $2.813 lb

11:54 AM ET 4/13/06 JUNE GOLD FALLS $2.20 TO $599.10/OZ AFTER $594 LOW

11:54 AM ET 4/13/06 MAY COPPER CLIMBS 4.15C, OR 1.5%, TO A RECORD $2.813/LB

[UpInArms]

27. pre-opening blather

09:15 am : S&P futures vs fair value: -2.2. Nasdaq futures vs fair value: -2.8. Futures trade continues to weaken heading into the opening bell as investors' preoccupation with rising interest rates acts as an overhang and overshadows optimism about increased earnings from blue chips like GE, AMD, TRB and NYT as well as another pullback in oil prices.

09:00 am : S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -1.2. Futures indications are off their best levels and are back to suggesting a lower start to the last day of a holiday-shortened week in which volume is expected to again be light. Reversing recent attempts to get buying efforts back on track has been further deterioration in Treasuries which has lifted the yield on the 10-yr note to 5.02%.

08:35 am : S&P futures vs fair value: +0.7. Nasdaq futures vs fair value: +1.8. Futures trade gets a boost following economic data and now suggests potential follow-through buying for the indices. March retail sales rose 0.6% (consensus 0.5%) and sales, ex-autos, rose 0.4% (consensus 0.5%), both relatively in line with forecasts, which underscores that consumer spending remains solid but is not growing too fast to raise inflation concerns. Initial claims rose 12K to 313K (consensus 305K). Bonds, though, have held relatively steady as the 10-yr note is still off 4 ticks to yield 4.99%.

08:00 am : S&P futures vs fair value: -1.8. Nasdaq futures vs fair value: -2.2. Futures market versus fair value suggests that stocks may begin the day on a downbeat note. Even though General Electric (GE) and Advanced Micro Devices (AMD) delivered solid earnings reports, lingering concerns about rising inflation has lifted the yield on the 10-yr note to 5.00% for the first time since June 2002, stoking worries about an economic slowdown and earnings deceleration.

[UpInArms]

28. 9:33 EST Pollyanna nowhere in sight

Dow 11,115.16 -14.81 (-0.13%)
Nasdaq 2,312.09 -2.59 (-0.11%)
S&P 500 1,285.53 -2.59 (-0.20%)
10-Yr Bond 5.032 +0.56 (+1.13%)

NYSE Volume 92,614,000
Nasdaq Volume 42,471,000

[JNelson6563]

30. Casino early action update

9:45 and so far the house is winning and the bettors, not faring well:

Dow 11,113.16 16.81 (0.15%)
Nasdaq 2,311.84 2.84 (0.12%)
S&P 500 1,284.64 3.48 (0.27%)
10-Yr Bond 5.03% 0.54

10 yr. yield up 54 basis pnts. already? *gulp*

Julie

[JNelson6563]

35. 10:51 and here comes the sun!!

Dow 11,152.22 22.25 (0.20%)
Nasdaq 2,322.60 7.92 (0.34%)
S&P 500 1,289.18 1.06 (0.08%)
10-Yr Bond 5.02% 0.44

B-)

[ozymandius]

40. Pollyannas in La-La Land

11:28
Dow 11,163.11 +33.14 (+0.30%)
Nasdaq 2,329.96 +15.28 (+0.66%)
S&P 500 1,290.74 +2.62 (+0.20%)
10-Yr Bond 50.28 +0.52 (+1.05%)
NYSE Volume 759,865,000
Nasdaq Volume 625,155,000

11:00 am : Market spikes higher over the last 15 minutes as the bulk of industry leadership turns positive. Continued momentum in Technology, benefiting from a 1.8% surge in Cisco Systems (CSCO 21.40 +0.38), one of our suggested holdings, has been the biggest catalyst behind renewed buying interest. A recent turnaround in Apple Computer (AAPL 67.17 +0.46), follow-through buying in semiconductor, and news that SanDisk (SNDK 61.99 +2.52) will be added to the S&P 500 are also sources of sector support. Energy, which was acting as the biggest drag this morning amid another pullback in oil prices, has pared most of its losses while Financial is now providing some upside leadership following a turnaround in bank stocks despite rising interest rates. DJ30 +41.70 NASDAQ +13.82 SOX +0.7% SP500 +3.00 NASDAQ Dec/Adv/Vol 1307/1353/490 mln NYSE Dec/Adv/Vol 1961/1005/388 mln

10:30 am : Market now trades in split fashion following an economic report that typically gets little attention from investors. Business inventories were unchanged in February as retail sales (the only unknown component) fell an unexpected 0.3% -- a swing big enough to pare down the aggregate inventory profile for Q1 GDP. However, there is little conviction behind the market's modest improvement since volume is again expected to be on the light side, which could lead to volatile market swings. DJ30 +6.38 NASDAQ +2.67 SP500 -1.56 NASDAQ Dec/Adv/Vol 1230/1354/336 mln NYSE Dec/Adv/Vol 1764/1079/268 mln

[ozymandius]

44. Suddenly they become a bunch of shrinking violets.

11:43
Dow 11,144.06 +14.09 (+0.13%)
Nasdaq 2,328.56 +13.88 (+0.60%)
S&P 500 1,289.25 +1.13 (+0.09%)
10-Yr Bond 50.28 +0.52 (+1.05%)
NYSE Volume 832,678,000
Nasdaq Volume 674,865,000

[UpInArms]

45. Ford to close VirginIa, Minnesota plants-union

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-13T153828Z_01_N133161_RTRIDST_0_AUTOS-FORD-PLANT-UPDATE-2.XML

DETROIT, April 13 (Reuters) - Ford Motor Co. (F.N: Quote, Profile, Research) plans to close its St. Paul, Minnesota, and Norfolk, Virginia, assembly plants as part of the automaker's broader restructuring plan, local United Auto Workers union officials said on Thursday.

"Ford will make an announcement at one o'clock informing the employees that it will close the plant in 2008," Chris Kimmons, president of UAW Local 919, representing 2,400 workers at the Virginia plant, told Reuters.

The Minnesota assembly plant is marked for closure in 2009, Bob Killeen, treasurer for UAW Local 879, which represents the workers at the plant, told Reuters.

The plant, which employs about 1,750 hourly workers, builds Ranger pickup trucks, which has seen demand decline sharply in recent years.

The Norfolk assembly plant builds Ford's best-selling F-150 pickup truck, which is also assembled in Ford's Dearborn, Michigan and Kansas City, Missouri facilities.

<snip>

Ford's restructuring plan, dubbed "Way Forward," calls for the closing of 14 plants, including seven assembly plants, and slashing up to 30,000 blue-collar jobs. It is designed to reverse a $1.6 billion loss last year in the company's North American operations.

...more...

[UpInArms]

52. Freddie Mac: 30-yr mortgage averages 6.49% vs 6.43%

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B3F1A8C3B%2D13AE%2D4ADC%2D87C7%2DCC4545DD42F6%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The benchmark 30-year fixed rate mortgage average rose in the week ending Thursday, to 6.49% from 6.43%, said Freddie Mac (FRE 60.08, +0.49, +0.8% ) . The mortgage agency said its weekly survey showed the 15-year loan also increased, to 6.14% from 6.1%. The 1-year Treasury-indexed adjustable rate rose to 5.61% from 5.57%. The 5-year hybrid ARM increased as well, to 6.13% from 6.11%. "Mortgage rates continued to creep up following the unexpected drop in March's unemployment rate. That drop indicated there may be some upward pressure on wages in the near future, which could lead to a rise in inflation," said Frank Nothaft, Freddie Mac chief economist, in a statement. "And the threat of a higher rate of inflation, as we all know, invariably leads to higher mortgage rates."

[ozymandius]

53. love is gone

1:11
Dow 11,120.20 -9.77 (-0.09%)
Nasdaq 2,327.07 +12.39 (+0.54%)
S&P 500 1,287.18 -0.94 (-0.07%)
10-Yr Bond 50.38 +0.62 (+1.25%)
NYSE Volume 1,117,637,000
Nasdaq Volume 932,129,000

1:00 pm : Indices continue to sport gains, showing little reaction to a turnaround in oil prices. Within the last 15 minutes crude oil futures have turned positive and are trading back above $68 per barrel at session highs. It is worth noting that since the May contract, which is currently at $68.08 per barrel (+$0.13), will expire on April 20th, the market will become more focused on the June contract next week, which is near historic highs at $70.35 per barrel (+$0.26).DJ30 +12.51 NASDAQ +15.23 SP500 +1.02 NASDAQ Dec/Adv/Vol 1024/1829/903 mln NYSE Dec/Adv/Vol 1560/1562/691 mln

[JNelson6563]

55. 2:12 and it was only MOSTLY dead

Dow 11,136.37 6.40 (0.06%)
Nasdaq 2,330.24 15.56 (0.67%)
S&P 500 1,288.77 0.65 (0.05%)
10-Yr Bond 5.036% 0.60


An obviously confusing day for investors. No love for Treasuries whatsoever though.

Run for your lives. ;-)

Julie

[ozymandius]

56. coming up on the close

3:39
Dow 11,127.18 -2.79 (-0.03%)
Nasdaq 2,325.00 +10.32 (+0.45%)
S&P 500 1,288.03 -0.09 (-0.01%)
10-Yr Bond 50.36 +0.60 (+1.21%)
NYSE Volume 1,632,255,000
Nasdaq Volume 1,362,521,000

3:30 pm : Little changed since the last update as the market continues to trade with a tinge of caution heading into the closing bell. The lack of enthusiasm behind today's action has been demonstrated by limited participation, as evidenced by the NYSE finally surpassing 1.0 bln shares and mixed market breadth. DJ30 -10.73 NASDAQ +9.74 SP500 -0.47 NASDAQ Dec/Adv/Vol 1253/1719/1.30 bln NYSE Dec/Adv/Vol 1811/1396/1.03 bln

3:00 pm : Market is losing some steam going into the final hour of trading as traders depart early for the Passover and Easter holidays. The Dow and S&P 500 have been hit the hardest; but then again, with the headwind from high oil prices and rising interest rates not going away any time soon, it's not a huge surprise to see investors' reluctance to hold stocks going into the long weekend. DJ30 -18.33 NASDAQ +11.02 SP500 -1.04 NASDAQ Dec/Adv/Vol 1130/1823/1.21 bln NYSE Dec/Adv/Vol 1787/1414/952 mln

[Roland99]

57. Markets are closed tomorrow, aren't they?

[AnneD]

61. Today is Maudy Thursday...

and tomorrow is Good Friday. My guess is that they will be closed-banks are closed? Anyone know for sure?

[Roland99]

62. Ayup...they're closed. From the NYSE >>>>

http://www.nyse.com/Frameset.html?displayPage=/about/1022963613686.html

[ozymandius]

59. This shit just makes me furious.

Go Bankrupt, Then Go Overseas

Delphi's (DPHIQ ) battle with the United Auto Workers has all the earmarks of a conventional labor showdown. Chief Executive Robert S. "Steve" Miller Jr. has demanded up to 40% pay cuts, which he says are necessary to lift the world's largest auto parts maker out of bankruptcy and make it globally competitive. The UAW has agreed in principle that concessions are inevitable but is adamantly resisting the scope of changes Miller wants.

But what's different in this battle is that Miller wants to use the bankruptcy courts to drastically slash Delphi's U.S. presence, thus freeing it up to focus on its already vast overseas production. Miller filed for Chapter 11 protection only for his U.S. operations, which employ 32,000 UAW and other union workers. He was careful to exclude Delphi's 115,000-worker foreign factories, many of which operate in low-wage countries such as Mexico and China.

If Miller gets his way, court filings show, Delphi will end up with a U.S. workforce of perhaps 7,000, leaving the bulk of its production abroad. "The company will only keep U.S. operations that have technological value," says Brian Johnson, an auto analyst at Sanford C. Bernstein. Miller declined comment.

-cut-

Critics are trying to throw up all the roadblocks they can. On Apr. 6, two UAW allies, Senator Evan Bayh (D-Ind.) and Representative John Conyers Jr. (D-Mich.), introduced legislation in Congress to tighten up the bankruptcy laws in response to Delphi's moves. The bills would require the courts to factor in a bankrupt company's overseas operations when determining whether it can abrogate union contracts and retiree health-care plans in the U.S.

more...

[ozymandius]

60. Ford Closing Plants in Minn., Va., in 2008

DETROIT (AP) -- Ford Motor Co., which is closing plants and cutting jobs in an effort to improve results from its North American auto business, said Thursday that it will shutter assembly plants in Norfolk, Va., and St. Paul, Minn., in 2008.

The two plants employ about 4,300 hourly and salaried workers.

-cut-

The nation's second-biggest automaker announced in January that it would close 14 plants by 2012, but only identified five of them. It said at the time that it would name two more plants later in the year.

Ford, in a news release announcing the closures, said the staff reductions in Virginia and Minnesota are part of the 25,000 to 30,000 job cuts announced in January.

http://biz.yahoo.com/ap/060413/ford_plant_closures.html?.v=8

[AnneD]

63. How about this dirty trick that hospitals played on staff...

a company buy a hospital out. At the stoke of midnight, all the staff are fired and rehired immediately. This wipes out all their senority, screws their retirement, etc. And they don't find out about this until after the fact. And they wonder why Nurses are leaving in droves and are so cynical.

[ozymandius]

64. stocks stroll across the finish line

Have a great weekend everyone!

Ozy :hi:

Dow 11,137.65 +7.68 (+0.07%)
Nasdaq 2,326.11 +11.43 (+0.49%)
S&P 500 1,289.12 +1.00 (+0.08%)
10-Yr Bond 50.36 +0.60 (+1.21%)
NYSE Volume 1,876,666,000
Nasdaq Volume 1,516,982,000

4:20 pm : The broader market opened with little fanfare and closed in much the same fashion, as investors weighed what should be a reasonably good Q1 reporting season against surging bond yields and rising oil prices, while the Nasdaq extended its year-to-date gain to more than 5.0%. Nevertheless, our market view remains Neutral since it will be difficult for stocks to make much headway given the negative psychological impact of 10-yr note yields above 5.00% for the first time in nearly four years and crude futures approaching $70 per barrel. As an aside, the lack of investor participation, with volumes well below average as traders headed home early for the holiday weekend, also lent little credibility behind the market's performance as more notable economic data and a plethora of influential earnings reports next week will set a more definitive tone for the overall market.

The 10-yr note plunging 14 ticks to yield 5.03% was one of the day's most significant news items but the market shrugged off higher bond yields long enough to maintain modest gains into the close. Treasuries were weak across the yield curve amid ongoing concerns that the Fed may go too far with monetary policy to keep inflation in check. Worries were exacerbated late in the day following hawkish commentary from Fed Governor Donald Kohn. Today's economic data did little to sideline such worries as March retail sales came in as expected but were consistent with current forecasts of 4 1/2% or more Q1 real GDP growth.

Meanwhile, investors were also focused on General Electric (GE 33.79 -0.67), which reported double-digit growth in Q1 earnings and revenue. While GE's solid quarter underscores our Overweight rating on Industrials, management merely reaffirming their FY06 outlook left some on Wall Street disappointed and, since GE is the second most influential stock on the S&P 500, stalled the market's recovery efforts. Also weighing heavily on the sector was consolidation in Caterpillar (CAT 76.65 -1.19) -- the Dow's best performing component (+32% year-to-date) so far this year.

In the end, however, it was Technology's leadership, the Financial sector's resilience to rising borrowing costs and a late rebound in Energy that the market's head above water. The sector got a lift from positive analyst commentary on IBM (IBM 81.92 +1.17) and Intel (INTC 19.45 +0.33), with overblown concerns over market share losses to Advanced Micro Devices (AMD 32.15 -3.27) providing a boost to rival Intel. AMD beat forecasts but guided flat Q2 sales growth. Strong earnings from Lam Research (LRCX 46.77 +2.06) also sparked follow-through buying in semiconductor. UBS raising their price target to $23 on Cisco Systems (CSCO 21.18 +0.16) -- a suggested holding, and news that SanDisk (SNDK 61.90 +2.43) will be added to the S&P 500, were also sources of tech support. DJ30 +7.68 NASDAQ +11.43 SOX +0.4% SP500 +1.00 NASDAQ Dec/Adv/Vol 1211/1778/1.55 bln NYSE Dec/Adv/Vol 1783/1443/1.24 bln

[ozymandius]

65. Kinda late to post - but this is interesting.

http://www.dailykos.com/storyonly/2006/4/13/19326/4046

from a Reuters article:

Omens look good for hedge fund returns this year

-excerpt-
Hedge funds delivered strong returns in the first quarter of this year and with market volatility expected to rise and clear trends evident in currencies and bonds the omens for 2006 are good . . .

"It's been a good start ... There is a very good chance that we will do better then we did last year," said Ian Morley, chief executive at Dawnay Day Olympia.

Whether hedge fund returns do exceed those of equities this year remains to be seen and few are prepared to forecast the sort of event that could trigger a major stock market correction.

But the fact that wealthy individuals, who are usually ahead of the game and who have been heavily invested in stocks for the last three years, are once again focusing on hedge funds is a clue that equity market sentiment could be turning negative.

and from a Forbes article: The Life of a Vulture

Distressed investing--putting money into high-risk debt that most others won't touch--sure ain't what it used to be. Too bad for the hedge funds and institutions that dominate this field. A daunting $17 billion poured into distressed securities last year (double 2000's inflow). Aim: to buy cheap bonds in hopes of scoring big in restructurings.

These hoped-for scores aren't abundant, though: Returns of hedge funds specializing in distressed paper have averaged only 2.2% over the last 12 months. That's a far cry from the 34% returns these funds earned in 1991 as the economy was pulling out of a recession. The difference: Last time there were many good companies with bad balance sheets; this time they're often bad on both counts.

Is anyone winning this game lately? Among vulture investors, one name is mentioned often with both envy and appreciation.

David Matlin has been averaging 40% returns annually since he started in 1994 running Credit Suisse First Boston's vulture fund. Okay, these returns aren't publicly available, but Matlin says his auditor Ernst & Young vouches for them. And few in the distressed-investing community are surprised by them. "I haven't seen actual returns, but that all fits together," says Thomas Cole, managing director at Deutsche Bank, which trades with distressed-debt scavengers.

We at the Stock Market Watch have entertained ourselves with the vilification of the vulture investor. This Kos diarist says they are circling again, in numbers.

[54anickel]

66. Uh-oh, the brown matter is going to hit the fan

If hedge funds do beat stocks this year it will be the first time since 2002 when they returned an average around 3.0 percent compared with losses of 19.5 percent for the widely-watched benchmark MSCI index <.MSCIWD> of world stocks.

snip>

Hedge funds have sold the dollar on the basis that the U.S. economy will come unstuck this year and some are betting on higher U.S. Treasury bond yields because they think the U.S. central bank is unlikely to halt interest rate rises at 5.0 percent in May.

[RawMaterials]

67. I'm beating on a repeat of the 70's

lets get ready for 12% interest rates. :puke: esp since the fed is now saying how they want a to slow down the us economy for the good of the economy

[AnneD]

72. Remember....

when the interest got so high, people bought into stocks because it was the only thing that kept up with inflation. I remember my Mom and my MIL were derided when they got jumbo CD' s toward the end of the cycle and they had a long time to mature. Then when the rates went down, they were locked into the highest rate. Boy did they luck out. I think we will see a run up in the stock as these soon to be retired boomers try to save. But then people will be drawing down (remember that 721/2 yrs thing-I think that is how old your are when you have to draw out). More people will be drawing out than investing and THAT is when the shit hits the fan again.

[JNelson6563]

68. 'Toon to fill the void

No markets today but I found this in the 'toon thread in GD:



Good clean fun. :-)

[54anickel]

69. BWAHAHAHahaaha - Thanks Julie, It's a keeper!!! Just brings some

reality to the "Strong, vibrant economy" meme they've been spewing...sure it is, for those at the top blowin' smoke!

[ozymandius]

71. Just great! Spot on!

Thanks Julie. What a great find you made.

Ozy :hi:

[AnneD]

73. Great toon...

spot on. I here that the exec pay and perks are so big now that it is really starting to cut into CO profits. Of course they stuck the mic in front of Jack Welch's mouth (did I tell you how much I hate that pompus arrogant SOB). Of course he defended it(everyones's doing it, good leadership is hard to find yadayadayada) :eyes: but honestly, when the CEO's pay cuts into profits, it's time to have a come to Jesus talk, esp when the CO declines on his watch.