STOCK MARKET WATCH, Wednesday January 10

[ozymandius]

Wednesday January 10, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 740 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2206 DAYS
WHERE'S OSAMA BIN-LADEN? 1911 DAYS
DAYS SINCE ENRON COLLAPSE = 1872
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 7
Enron execs conveniently deceased = 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 January 9, 2007

Dow... 12,416.60 -6.89 (-0.06%)
Nasdaq... 2,443.83 +5.63 (+0.23%)
S&P 500... 1,412.11 -0.73 (-0.05%)
Gold future... 615.00 +5.60 (+0.91%)
30-Year Bond 4.74% -0.00 (-0.04%)
10-Yr Bond... 4.66% -0.00 (-0.09%)






GOLD, EURO, YEN, Loonie and Silver


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. Today's Market WrapUp

2007: The Return of the Bear
BY FRANK BARBERA, CMT

Well, Happy New Year one and all, and what a complicated outlook we have headed into 2007. On the surface, the Year 2007 would seem to hold a distinctly bullish bias for the stock market, as positive (if not even outright robust). Pre-Election Years have been one of the great constants in the market for as long as most of us can remember. Since 1950, the S&P has had only one down year in a Pre-Election year, 1987, with a loss of 3.10%. Even more remarkably, over that period of time, 14 of the last 15 Pre-Election years have seen the S&P gain 10% or more; again, going back to 1950. Of those strongly positive years, an amazing 10 of 14 have seen the S&P gain 15% or more, with 5 of 14 gaining more than 20%. In fact,--and get this--the average gain for the S&P in the 14 positive Pre-Election Years since 1950 is a whopping 18.58%! With such a one sided statistical history, a ‘would be’ market ‘bear’ might as well find a nice cave to hibernate in over the next 12 months, right?

-cut-

On a major trend basis, I track several long term Momentum gauges which for the S&P have soared back up to the high end of their historical range. This tells me that the market is clearly no longer on the first floor of risk, but currently resides closer to the technical penthouse, where any downside reversal could represent quite the hard fall. In fact, rarely in stock market history has a market been this overbought, this over-extended, and displayed this type of uniformly one-sided sentiment – all hallmarks of an ultra high risk environment.

In our view, contrary to the overwhelming majority, I believe that 2007 is likely to be a Bear Market year for the S&P, Dow and NASDAQ, with all three averages retaining the potential to fall 20% or more. So why do I feel the way I do? Let's start by looking at a few “Time Spans” and see if this picture doesn’t start to uncloak the hidden wall of towering risks. A few years ago, I pioneered the use of Time Span Analysis which is a way of looking over one’s statistical shoulder to ask the question, "Is this environment statistically normal, or do unusual circumstances prevail?" In Time Span Analysis, we start by acknowledging the market's own internal “pendulum” principle, namely, that there are certain events that repeat year in, year out. The market becomes overbought, and then market becomes oversold; the grand market pendulum swings back and forth. Cycles turn up, and then they turn down. Anyone who has followed even one technical indicator knows there is rhythm to the movements of the crowd, and a sine wave affect at work within the market.

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

[ozymandius]

2. Today's Reports

8:30 AM Trade Balance Nov
Briefing Forecast -$60.0B
Market Expects -$59.5B
Prior -$58.9B

10:00 AM Wholesale Inventories Nov
Briefing Forecast 0.6%
Market Expects 0.5%
Prior 0.8%

10:30 AM Crude Inventories 01/05
Briefing Forecast NA
Market Expects NA
Prior -8132K

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

[54anickel]

16. Trade Deficit Falls by 1 Percent in Nov.

Trade Deficit Falls by 1 Percent to $58.2 Billion in November As Exports Hit All-Time High

http://biz.yahoo.com/ap/070110/economy.html?.v=4

WASHINGTON (AP) -- The U.S. trade deficit unexpectedly fell for a third straight month in November as exports of commercial airplanes and other products hit an all-time high and the bill for foreign oil declined to the lowest level in 16 months.

The Commerce Department reported Wednesday that the deficit fell by 1 percent to $58.2 billion in November, the lowest monthly total since July 2005. The deficit hasn't declined for three consecutive months since early 2003.

The November improvement came as a surprise. Analysts had forecast a slight increase from October's deficit of $58.8 billion.

The politically sensitive deficit with China declined in November after setting records for three straight months. Shipments of cell phones and clothing eased following a huge surge in previous months as retailers had stocked their shelves for holiday shoppers.

Even with the improvement, the imbalance with China for 2006 climbed to an all-time high of $213.5 billion, surpassing the 2005 12-month total of $202 billion, which had been the previous record deficit for a single country.

The overall deficit for 2006 is running at an annual rate of $765.4 billion, putting the country on track to see a record imbalance for the fifth consecutive year. The deficit for all of 2005 was $716.7 billion.

more...

[ozymandius]

3. Oil price drop to $55.64 a barrel

SINGAPORE - Oil prices fell Wednesday on the continued mild winter in the U.S. Northeast and selling by large investment funds.

"We are seeing unfettered selling, any and all supportive factors are being ignored," wrote John Kilduff, senior vice president for energy risk management at Fimat USA, in a research note. "Technical influences will now exert themselves as important support levels are broken."

-cut-

Analysts also said large funds that held long positions — those that expected prices to rise — have been exiting the market since prices began their downward spiral, exacerbating the decline. Crude prices have plummeted nearly 9 percent this year.

Winter in the U.S. Northeast has been warmer than normal, which has curbed demand for heating fuels in the world's largest heating oil market. As a result, market watchers expect to see larger petroleum inventories in this week's government report, due later Wednesday.

http://news.yahoo.com/s/ap/20070110/ap_on_bi_ge/oil_prices_41

[ozymandius]

4. Belarus, Russia agree to compromise on oil pipeline, says Belarus

MINSK (AFP) - The presidents of Russia and Belarus have found a compromise solution to an oil transit row which has disrupted supplies to the European Union, the Belarus presidency has said in a statement.

In a telephone conversation, President Vladimir Putin and his Belarussian counterpart Alexander Lukashenko "found a compromise which allows resolution of the dead-end situation", Lukashenko's office said Wednesday.

"The prime ministers of Belarus and Russia were ordered to work out concrete proposals within two days for resolution of all problem questions and to submit these for review by heads of state by Friday, January 12."

-cut-

Negotiators in Moscow reportedly remained at loggerheads over the row, which began with Belarus' demand for a new transit tax on Russian crude oil sent via its territory to clients in the European Union.

http://news.yahoo.com/s/afp/20070110/ts_afp/russiabelarusenergy_070110124042

[ozymandius]

5. FTSE falls as crude weaken

The FTSE lost ground on Wednesday following overnight falls in Asian markets as oil and energy stocks weighted on the indices.

By mid-day, the FTSE 100 was down 33.7 points, or 0.5 per cent, at 6,163.0. Major oil heavyweights were hit by the weaker oil price.

BP was down 0.6 per cent to 532½p, BG Group lost 0.7 per cent to 636½p and Royal Dutch Shell fell 0.4 per cent to £16.89 as crude again slipped below the $55 a barrel level.

http://news.yahoo.com/s/ft/20070110/bs_ft/fto011020070723380263

[ozymandius]

6. US Airways Raises Delta Air Lines Offer

ATLANTA (AP) -- US Airways Group Inc. raised its offer for Delta Air Lines Inc. by 20 percent to $10.2 billion on Wednesday, as it seeks to put pressure on the bankrupt carrier's creditors to agree to a deal that Delta's management opposes.

US Airways said it would raise its offer by $1.7 billion from its Nov. 15 bid that was currently valued at $8.5 billion.

The increased offer comes just two weeks after the chief of Tempe, Ariz.-based US Airways, Doug Parker, told The Associated Press that his company had no intention at the time to increase its offer.

-cut-

The increased bid includes 89.5 million shares of US Airways stock and $5 billion in cash. The original offer included 78.5 million shares of US Airways stock and $4 billion in cash. The value of the increased bid could go even higher if US Airways' stock rises after the market opens later Wednesday.

http://biz.yahoo.com/ap/070110/delta_us_airways.html?.v=15

[ozymandius]

7. Dow, Nasdaq Poised to Open Lower

U.S. stock futures slipped Wednesday on further weakness in crude prices and after Chevron Corp. said it expects fourth-quarter results to be hit by lower commodity prices. Shares in Alcoa were set to rise after a solid earnings report.

S&P 500 futures fell 5 points at 1,415.50 and Nasdaq 100 futures lost 8.75 points at 1,801.75. Dow industrial futures gave up 31 points at 12,452.

-cut-

Among companies in focus, Alcoa Inc. late Tuesday kicked off earnings season when it reported fourth-quarter net income of $359 million, or 41 cents a share, up from $224 million a year ago. Revenue jumped 20 percent to $7.8 billion.

-cut-

Also after Tuesday's closing bell, Chevron said it expects fourth-quarter results to be adversely affected by lower commodity prices and lower downstream margins relative to third-quarter earnings.

http://biz.yahoo.com/ap/070110/wall_street.html?.v=4

[ozymandius]

8. Good morning everyone.

:donut: :donut: :donut:

Have a fun day watching the wheels spin at the Casino! I'll be back late this afternoon.

Ozy :hi:

[NC_Nurse]

9. Morning All!

Another great toon as usual, Ozy!

Yesterday's thread - VERY interesting. I was surfing last night and the CNBC cheerleaders were (as usual) predicting big gains for stocks....do they EVER
get bearish? Oh, yeah...right AFTER a crash.

AnneD - I so know what you're going through! Every job I've had they keep adding responsibilities until it's impossible to do it. It's ridiculous.
Since when do school nurses take care of the staff? I thought your job was about STUDENT health. The staff can get a flu shot at Walgreen's fer crissake!
I'm sure you just needed one more thing to do. :eyes:
If you end up doing it, make sure they all sign the waiver first. Shouldn't come back to bite YOU in the ass. I've had to give them to patients before procedures.
Not my usual practice, but that's the way it is these days. Pull out the manual and do it...sheesh!

[54anickel]

10. Stocks set for rocky start

Major gauges poised to open lower, following in the path of losses in Asia, Europe.

http://money.cnn.com/2007/01/10/markets/stockswatch2/index.htm

NEW YORK (CNNMoney.com) -- Stock weakness throughout the world could hit Wall Street when trading begins Wednesday.

At 8 a.m. ET, Nasdaq and S&P futures were solidly lower, indicating a lower open for the markets. Markets in Asia ended lower, while Europe was down in midday trade.

Oil prices fell ahead of the weekly inventory report, due after the market open. U.S. light crude eased 63 cents to $55.01 a barrel in electronic trading.

Lower oil prices have weighed on energy majors such as Exxon Mobil (Charts), Valero Energy (Charts), ConocoPhilips (Charts) and Sunoco (Charts).

snip>

In addition to earnings, stock trading on Wednesday will be influenced by the economic reports that are expected, including readings on the November trade balance and wholesale inventories.

Treasury prices slipped, with the 10-year note yield rising to 4.67 percent from 4.65 percent late Tuesday.

In currency trading, the dollar jumped versus the euro but was weaker versus the yen.

more...

[54anickel]

11. GLOBAL MARKETS-Stocks, emerging markets down as oil fall deepens

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=2e4339f3-97eb-418c-9395-9082ef2b1a14

LONDON, Jan 10 (Reuters) - Stocks and emerging markets fell on Wednesday as political moves in Venezuela and a sharp dive in crude oil prices in recent sessions rattled markets, encouraging investors to move out of riskier assets.

snip>

Along with weaker commodity prices, moves by Venezuela to nationalise some major oil projects and other industries, and measures by Thailand to tighten rules on majority-owned foreign companies reminded investors of the need for a premium from emerging assets.

"At the edges, there is a fraying in the risk appetite trade," said Peter Lucas, global investment strategist at fund manager Ashburton.

"I see the biggest risk as a general unravelling of risk appetite, a gradual loss of confidence in the bond market, ultimately culminating with another top in equities."


snip>

The dollar benefited from the switch out of more peripheral and commodity-based economies, as well as fading expectations that the Federal Reserve will cut interest rates in the coming months.

The dollar hit 1-1/2 month highs against both the euro <EUR=> and a basket of currencies <=USD> as stronger-than-expected U.S. jobs data last week showed the world's largest economy remained in relatively good health.

"The payrolls data has led to rate expectations being factored out, it's a corrective phase after the dollar was being oversold," said Peter Fontaine, currency strategist at KBC in Brussels.

"Investors are turning to the U.S. dollar as Venezuela is undermining emerging market sentiment." :eyes:

more...

[54anickel]

12. Private equity in 2007

Thanks to cheap debt and aggressive pension funds, 2006 was the year of private equity. So what's in store for these dealmakers in the year ahead?

http://money.cnn.com/magazines/fortune/fortune_archive/2007/01/22/8397970/index.htm?section=money_latest

(Fortune Magazine) -- Every few years there's a shift in the type of financier that becomes the rock-star embodiment of capitalism unfettered. The '80s icon was the investment banker. The '90s belonged to the venture capitalist. And if the first years of the new millennium went to the hedge fund manager, the player who now gets all the love is the private equiteer.

Once the scourge of companies and CEOs, the buyout firms are now wooed by potential acquirees and hailed as corporate alchemists who can take over a company, work their magic on its operations and then exit to massive profits in an IPO.

snip>

" the face of 21st-century American capitalism," says Carlyle Group co-founder David Rubenstein. That proclamation would've been outlandish not long ago; now it seems only mildly self-serving. Carlyle's 2006 highlights included pieces of the $14.6 billion Kinder Morgan (Charts) acquisition and the $17.6 billion Freescale Semiconductor (Charts) deal.

"American capitalism used to be General Motors and Ford and IBM," says Rubenstein. "Now it's Blackstone and Texas Pacific Group and KKR and Carlyle because we're doing so many things to move the economy."

Several factors have fueled the PE boom. Lenders are offering the buyout firms money on the cheap and with more relaxed loan restrictions than in the past. Institutional investors, notably pension funds, have been funneling more money into buyout firms.

snip>

Finally, some suggest Sarbanes-Oxley has been private equity's silent partner, driving companies away from the regulatory web that comes with public ownership and into the arms of PE firms.

more...



After the buyout boom: The bust?
A string of deals led by private equity firms will push buyouts to record levels this year. But if things turn sour, look out.

http://money.cnn.com/2006/12/18/markets/private_equity_outlook/index.htm

NEW YORK (CNNMoney.com) -- The merger machine's rolling full steam ahead, and private equity investors are playing a bigger role than ever before - a trend that's likely to carry into 2007.

But some investors and merger experts are starting to worry that the slew of deal-making could come to a nasty end, especially if slower economic growth or a recession make it harder for companies to deal with the debt that's often involved in today's buyout deals.

snip>

The risk, he and others said, is that a downturn in the economy could upset the applecart.

"If the debt markets have a crisis of confidence and there is a real turndown of the economy we could see a dramatic pullback," Blaydon remarked. "We know there will be a pullback, we just don't know when that is going to happen."

Private equity buyers in particular use borrowed funds to finance their deals, then usually overhaul the business and try to sell to another corporate buyer or investor group - or take it public. Often, investors use the assets of the target firm to secure the debt.

snip>

But there are two other scenarios that could cripple the buyout market: a recession or another pickup in inflation, which could lead to higher interest rates - and rising payments for companies that have been acquired and loaded up with debt.

Deal databank
If either of those happens, there could be a sharp downturn in the private equity boom that would not be pretty, money managers and others say.

"There's an endless appetite for credit now, and that's kind of scary," said one high-yield investment manager. "It's all liquidity-driven. Every day something else is being announced. It's a question of when the music stops."

more...

So, if enough of them get stuck with "real" assets (buildings, equipment, etc) would there be a deflationary fire sale? Maybe hubby's union could finally afford to buy out their company...employee buyouts - might not be such a bad thing in the end.

[54anickel]

13. SEC's Atkins OK with "dark pools"

http://today.reuters.com/summit/summitarticle.aspx?type=summitNews&summit=RegulationSummit07&storyid=2007-01-09T233421Z_01_N09198218_RTRUKOC_0_US-REGULATION-SUMMIT-ATKINS-DARKPOOLS.xml&src=011007_0751_INVESTING_reuters_regulation_summit

WASHINGTON (Reuters) - Regulators should lighten up on trading networks known as "dark pools," U.S. Securities and Exchange Commission member Paul Atkins said on Tuesday.

Advances in technology, and the desire to keep trade strategies secret, has fueled a proliferation of these networks that offer investors an anonymous platform for trading stocks.

Stock exchange and some SEC officials have warned these trading systems threaten to fragment markets and could lead to less attractive pricing. Traditional exchanges also warn investors could be harmed if broker dealers take advantage of transactions hidden from the public eye.

But Atkins told the Reuters Regulation Summit in Washington it makes sense that investors prefer to keep their trades out of sight and not tip their hand to others.

"We would be crazy to try to go and shut that down. I think that redounds unfavorably to investors, and eventually to mutual funds and (pension) beneficiaries," Atkins said.

"It's a big world out there. These trades can easily be done offshore, through derivatives and through other weird instruments," he said.

That position conflicts with statements made by SEC officials at a September trading conference.

more....


Here's a bit from WSJ - I don't have subscriber access anymore though.

http://online.wsj.com/google_login.html?url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB116831491827571061.html%3Fmod%3Dgooglenews_wsj

Shares Bought in the Dark
By Aaron Lucchetti
Word Count: 908 | Companies Featured in This Article: Goldman Sachs Group, Credit Suisse Group, Morgan Stanley, NYSE Group

A Supreme Court jurist once wrote that sunlight is the best disinfectant. Wall Street, though, is increasingly finding it more profitable to work in the dark.

In the past few years, large brokerage firms, trading boutiques and even stock exchanges have launched or announced plans to start almost 40 trading networks known as "dark pools," named because they attempt to put buyers and sellers together anonymously without exposing their clients' orders first to the public, as happens on traditional stock markets like the New York Stock Exchange and Nasdaq Stock Market.

The pools have proliferated as big institutional investors respond ...

[54anickel]

14. New backdating scheme rips off stockholders (& taxpayers)

A novel twist in the options scandal makes bad execs look even worse, says Fortune's Geoff Colvin.

http://money.cnn.com/magazines/fortune/fortune_archive/2007/01/22/8397963/index.htm?postversion=2007011006

snip>

Bizarrely, while this book-cooking appears to be a tax scam, it may actually leave the U.S. Treasury better off than if the executives had been honest. What it reveals most strongly is some executives' utter contempt for their shareholders.

snip>

But in the more recently discovered scam, executives allegedly fudged the date on which they chose to exercise options, citing some earlier date when the stock price was lower, thus reducing their own gain.

Why would anyone want to do that? Most people wouldn't, because most option holders sell their shares the same day they buy them. But some executives plan on holding their shares for a while before cashing them in. Their "gain on exercise" - the difference between what they pay for the shares and the shares' market price that day - is taxed as ordinary income, at a top rate of 35 percent.

But any gain after that is taxed as a long-term capital gain, at 15 percent, assuming the executive holds the shares more than a year. By moving the exercise date back to when the market price was lower, this new backdating is simply a tax dodge that transforms some highly taxed gain on exercise into lower-taxed capital gain.

Any executive who did this - and we can expect a new wave of investigation announcements from companies in the coming weeks - is playing a far more dangerous game than in the old type of grant-date backdating. There, no money changed hands; some old documents just had incorrect dates in them. But this new exercise backdating "involves a real transaction," observes Dennis Beresford, former chairman of the Financial Accounting Standards Board and now a professor at the University of Georgia.

snip>

Thus, when an executive works a scam to reduce his reported gain on exercise, he's also shrinking his own company's tax deduction - causing it to pay more tax.

Note a couple of important points here. First, the shareholders are unambiguously getting shafted. Exercise backdating changes only one thing from their perspective, reducing the tax deduction their company gets. The company needlessly pays more tax, robbing shareholders of wealth, because some top executive got greedy.

more....

[54anickel]

15. China Trade Surplus Jumps to Record $177.5 Billion (Update2)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aVXNk98nyeVg&refer=worldwide

Jan. 10 (Bloomberg) -- China's trade surplus swelled 74 percent to a record $177.5 billion last year as exports surged, the official Xinhua News Agency said.

Exports rose 27 percent and imports gained 20 percent, Xinhua said, citing the General Administration of Customs. The surplus has soared almost eight-fold since 2001, when China joined the World Trade Organization.

China's ballooning trade surplus has prompted calls from the U.S. and Europe for the nation to loosen controls on the yuan and crack down harder on counterfeiting of overseas software, movies and consumer goods. The surplus has also flooded the world's fastest-growing major economy with cash, complicating government efforts to cool an investment boom.

``The number is scary,'' said Huang Haizhou, an economist at Barclays Capital in Hong Kong, citing concern of investment in unneeded factories and real-estate projects. The government ``should be ready to let the yuan appreciate a bit faster.''

The surplus as reported by Xinhua is in line with the $177.3 billion median estimate of 16 analysts in a Bloomberg News survey. The December surplus is $21 billion, down from $22.9 billion in November, according to Xinhua.

Huang expects a widening to $200 billion in 2007, with the yuan gaining more than 5 percent against the dollar.

more...

[54anickel]

17. Revised margin debt rules: Don't try this at home

http://www.chicagotribune.com/business/yourmoney/chi-0701090162jan09,0,5042813.column?coll=chi-business-hed

During last fall's stock market rally, investors took on a greater amount of debt as they paid to play.

This year, a historic change in the process of borrowing to invest will unfold for investors deemed by their brokers to be sophisticated enough to use more flexible margin debt rules adopted last month by the Securities and Exchange Commission.

The number of individuals likely to participate initially in the new rules is small. But the change in thinking on the part of regulators and the potential increase in investment-related debt are huge.

Currently, federal regulations limit the amount an investor may borrow to 50 percent of the purchase price of stock. If you purchase an option to buy stock, your cash requirement, in relation to the stock price, will be significantly less. The borrowing limits on stocks and options are imposed separately.

In December, the SEC authorized the Chicago Board Options Exchange and the New York Stock Exchange to permit margin requirements based on a multiproduct portfolio of equities and options on stocks, stock indexes and stock index futures. The new rule is called portfolio margining.

"This is the biggest change in the way securities margining works in 50 years," said William Brodsky, CBOE chief executive. "The whole name of the game here is you can make better use of your capital without increasing your risk."

more...

[54anickel]

18. 10:15 check in, then I've gotta run for the morning

Dow 12,381.03 35.57 (0.29%)
Nasdaq 2,436.11 7.72 (0.32%)
S&P 500 1,407.59 4.52 (0.32%)
10-yr Bond 4.6880% 0.0320
30-yr Bond 4.7720% 0.0340
NYSE Volume 464,032,000
Nasdaq Volume 365,625,000

10:00 am : The blue-chip indices extend their reach to the downside as all 10 sectors are now in negative territory. With the mass exodus out of oil just six trading days into the New Year, Energy not surprisingly is pacing the way lower (-0.9%). Aside from oil's 1.1% slide this morning ahead of upcoming weekly inventories data, the Energy sector is under additional pressure amid more earnings uncertainty. Chevron (CVX 69.70 -0.93) saying Q4 will be adversely affected relative to its record Q3 results serves as the latest reminder that earnings estimates for other energy names will likely be revised lower.

Following upbeat analyst commentary and several price target increases, Apple Inc. (AAPL 94.74 +2.17) tacking a 2.3% gain onto yesterday's 8% rally to a new all-time high is helping the Nasdaq bounce off morning lows; but the tech-heavy Composite is still languishing below the flat line. DJ30 -50.75 NASDAQ -8.16 SP500 -5.91 NASDAQ Dec/Adv/Vol 1778/706/188 mln NYSE Dec/Adv/Vol 2074/602/86 mln

09:40 am : As futures trade presaged, stocks open lower across the board as huge losses in foreign markets exacerbate valuation concerns and overshadow a solid start to earnings season. Kicking things off last night was Alcoa (AA 29.56 +1.04), which topped Wall Street forecasts. The Dow component is up 3.6% as a nearly 60% year/year rise in Q4 earnings lends some optimism for the S&P 500 to extend its streak of double-digit growth to 14 straight quarters. However, since Alcoa is not a bellwether for overall earnings trends and the Q4 season doesn't pick up in earnest until next week, buyers remain on the sidelines amid worries last year's second-half rally left it overextended when faced with the likelihood of a slower rate of earnings growth this year. DJ30 -40.77 NASDAQ -13.54 SP500 -5.71 NASDAQ Vol 82 mln NYSE Vol 50 mln

09:15 am : S&P futures vs fair value: -5.7. Nasdaq futures vs fair value: -8.5.

09:00 am : S&P futures vs fair value: -5.6. Nasdaq futures vs fair value: -8.2. Futures indications are showing some improvement since the last update but still maintain a negative bias, suggesting stocks will open lower. Oil selling off again, down 1% near $55/bbl amid concerns that today's weekly inventory report (10:30 ET) will show a large build in stockpiles, is providing some support. However, with investors more preoccupied with the pace of economic growth than easing inflation pressures, attributing lower demand for crude to a weak economy and digesting another profit warning in the Energy sector, the subsequent loss of leadership throughout Energy may again act as an offset. Chevron (CVX) said Q4 will be adversely affected relative to its record Q3 results.

08:32 am : S&P futures vs fair value: -6.5. Nasdaq futures vs fair value: -10.5. Still shaping up to be a weak start for stocks as futures continue to languish below fair value. Just hitting the wires, the Commerce Dept. reports that the U.S. trade deficit unexpectedly narrowed in November to $58.2 bln (consensus -$59.5 bln), its lowest since July 2005. Reaction in both stocks and bonds, however, has so far been muted as investors await a reading on wholesale inventories (10:00 ET) and upcoming testimony from Chicago Fed President Moskow (12:30 ET) to perhaps provide a clearer read on the economic outlook.

08:00 am : S&P futures vs fair value: -5.4. Nasdaq futures vs fair value: -10.5. Earnings season officially got underway on a solid note last night, after Alcoa (AA) topped Wall Street forecasts. The Dow component is up more than 4% in pre-market action. However, huge losses overseas, which have been highlighted by a continued slide in emerging markets amid global risk reduction efforts, are contributing to an added sense of nervousness in the early going that leaves the futures market trading well below fair value. Both the Nikkei 225 and Hang Seng plunged 1.7% while European bourses are also down sharply.

06:19 am : FTSE...6161.50...-34.60...-0.6%. DAX...6556.25...-58.12...-0.9%.

06:19 am : S&P futures vs fair value: -5.2. Nasdaq futures vs fair value: -10.3.

06:19 am : Nikkei...16942.40...-295.37...-1.7%. Hang Seng...19568.34...-329.74...-1.7%.

[Ghost Dog]

19. That fool Mogambo: Burdened...

http://www.321gold.com/editorials/daughty/daughty011007.html

-- Total Fed Credit expanded another $7.3 billion to $859 billion last week and another $3 billion in actual cash was created, but being already safely ensconced inside the Fortified Bunker Of The Mogambo (FBOTM) nicely attenuated my stark terror to, thankfully, barely-controllable levels. A few tranquilizers, some assorted anti-depressants, a bourbon neat with a beer back, a little light Mozart on the stereo, my pockets loaded with gold, the door locked, my back against a wall, and a loaded Uzi in each hand make things seem to be under Complete Mogambo Control (CMC).

Burdened as I am with gold and firepower, I can't easily provide a wrap-up to the economic year. So instead, I make a waving motion with the barrel, indicating for you to sit down, shut up, keep your hands where I can see them, and turn to Doug Noland's "Credit Bubble Bulletin" column at PrudentBear.com, who reports "For the year, Bank Credit expanded $809 billion, or 10.8% annualized. Loans & Leases increased $12.3 billion to a record $6.076 TN, with a 2006 gain of $621 billion (11.4%). Commercial & Industrial (C&I) Loans expanded 12.6% during the year. Bank Real Estate loans expanded 14.1% during 2006. Total CP has increased $344 billion, or 20.9%, over the past 52 weeks."

Now, I always thought of myself as a hardened, man-of steel kind of macho guy who had "seen it all", my big, bulging muscles rippling beneath my shirt as beautiful women swoon at my feet, but the guns fall clattering to the floor, dropped from my numbed, lifeless hands at this terrifying news, my mouth hanging open in stunned disbelief, made even more dis-believable by him also reporting that it is getting worse, and faster, as "Total CP has expanded at a 27% rate over the past 20 weeks."

And here come the foreign central banks, putting another $11 billion's worth of Treasury and agency debt into their accounts at the Fed, bringing their enormous load of toxic American debt to a record $1.8 trillion.

The Economist magazine figures that "Though there is no agreement on how to measure liquidity, using the global supply of dollars as a proxy," they estimate that "in the past four years it has risen by an annual average of 18%, probably the fastest pace ever."

...

-- If you want a reason why things are in such a mess, then look no further than the clueless Steven Hofman, who had a hand in it as the "former director of research and policy for the House Republican leadership", who is now writing the Outside Shot column in the January 8 issue of Business Week.

Despite all those credentials, it's the Medicare problem that he thinks needs to be addressed, and with a flourish of mathematical wizardry figures that "if the 35 million nondisabled Medicare beneficiaries reduced their spending by a mere 5%, then $13.12 billion would be saved annually" in the federal budget. Hahaha! $13.12 billion a year? Hahaha!

Big freaking deal, Steverino! That's chump change! Hell, the federal government borrows more money than that every freaking week, you moron! Jeez!

/continues...

[54anickel]

27. Heh-heh, Thanks GD for diggin' up the fool today. Dang, he's on a roll today!!!

[Ghost Dog]

34. Today's poem: Wish You Were Here

So, so you think you can tell Heaven from Hell,
blue skies from pain.
Can you tell a green field from a cold steel rail?
A smile from a veil?
Do you think you can tell?
And did they get you to trade your heroes for ghosts?
Hot ashes for trees?
Hot air for a cool breeze?
Cold comfort for change?
And did you exchange a walk on part in the war for a lead role in a cage?
How I wish, how I wish you were here.
We're just two lost souls swimming in a fish bowl, year after year,
Running over the same old ground.
What have we found? The same old fears.
Wish you were here.

- Pink Floyd (Roger Waters, I think)...

:hi: :-(

[antigop]

20. Does anyone know about securities lending?

Back in October, the DOL issued this news release:
http://www.dol.gov/ebsa/newsroom/pr103006.html

>>
U.S. Labor Department Finalizes Amendment On Securities Lending Exemption

Washington, DC - The U.S. Department of Labor's Employee Benefits Security Administration today announced adoption of a final class exemption expanding the opportunities for securities lending between employee benefit pension plans, banks and broker-dealers.

The exemption, which consolidates two existing class exemptions, provides conditions to safeguard the assets of plans involved in securities lending transactions. The updated requirements will permit pension plans to earn additional income by lending securities from their portfolios to a greater universe of permissible borrowers.
>>

Evidently State Street is a player in securities lending:
http://www.statestreet.com/securitiesfinance/en/index.html
>>
State Street has been providing securities lending services since 1974. In the decades since, we've put that experience to work in order to achieve significant returns for our clients without ever compromising our conservative approach to risk. With a global presence, a top-quality team, and hundreds of lending and borrowing clients worldwide, we are proud to be the industry leader in securities finance.
>>

Since I don't trust the DOL under Bush, I have to wonder what the ramifications are of this exemption by the DOL.

Anybody got any info? TIA.

[54anickel]

35. I dunno without doing more digging, just a guess is that they are being

allowed to "lend" to brokers who in turn lend to short sellers. Maybe somehow that could extend to naked short sellers in the long run? :shrug:
I'm probably way off base, I tend to assume the worse and then wander into CT territory.

Under the exemption, the categories of permissible borrowers have been expanded to include broker-dealers and banks of the United Kingdom, Canada and certain other foreign broker-dealers and banks. In addition, the types of collateral that may be offered to plans for securities lending transactions have been broadened to include negotiable certificates of deposits payable in the United States, mortgage backed securities, the British pound, the Canadian dollar, the Swiss franc, Japanese yen, the Euro, securities issued by Multilateral Development Banks, rated foreign sovereign debt and irrevocable letters of credit issued by certain foreign banks. If the plan’s U.S. domiciled lending agent agrees to indemnify the plan against losses resulting from a borrower’s default, the final exemption permits a plan to accept any other type of collateral currently permitted by the Securities and Exchange Commission under Rule 15c3-3 of the Securities and Exchange Act of 1934.

[antigop]

42. I wonder what "certain other foreign broker-dealers and banks" are included

Thanks for the reply.

I'm very curious as to what is going on here. If these are shares in pension funds that they are lending, I'm wondering if they are somehow putting the pension fund at risk.

How about shares in 401(k)'s? Can those be lent out by State Street?

[54anickel]

43. I wonder what the original list of "permissible borrowers" looked like, it

obviously didn't include the groups this new ruling extends to.

You bring up a good question, what and who is really at risk (if any) here. Then again, to me it's all just a big game they play with other peoples money --- ours. :grr:

[citizen snips]

21. Oil Prices Settle at 19-Month Low

NEW YORK (AP) -- Oil prices tumbled to settle at a 19-month low Wednesday after the government reported rising inventories of gasoline, heating oil and diesel fuel.

Crude oil stockpiles fell for the fourth straight week, according to a weekly report by the Energy Information Administration. But inventories of refined products grew faster than market analysts had expected, pressuring prices lower.

Light, sweet crude for February delivery dropped $1.62 to settle at $54.02 a barrel on the New York Mercantile Exchange, after sinking to $53.89 in earlier trading. The settlement was the lowest since June 10, 2005.


Refineries in the U.S. are running at more than 91 percent capacity amid strong imports and weaker demand for products. That has "been a big anchor on the market," said Michael Guido, director of commodity hedge fund marketing with Societe Generale.

more...
http://biz.yahoo.com/ap/070110/oil_prices.html?.v=18

[citizen snips]

22. US Airways Increases Bid for Delta

ATLANTA (AP) -- US Airways increased the pressure on Delta Air Lines' unsecured creditors to take its buyout offer by raising the bid Wednesday nearly 20 percent to $10.3 billion. Whether the deal would survive regulatory scrutiny may be the deciding factor

The Tempe, Ariz.-based company also set a Feb. 1 deadline for certain conditions to be met or its entire bid would be revoked.

The ball is now in the creditors' court.

The question is whether they want to take the money US Airways is offering and run the risk of a long regulatory fight, or stick with Delta's plan to emerge from bankruptcy by the middle of this year as a standalone company worth $9.4 billion to $12 billion.

more...
http://biz.yahoo.com/ap/070110/delta_us_airways.html?.v=30

[citizen snips]

23. Lower Prices Squeeze Chevron 4Q's Profit

SAN FRANCISCO (AP) -- Chevron Corp. warned lower oil prices will crimp its fourth-quarter profit, an about-face from the favorable market conditions that fueled the industry's earnings boom through much of last year.

The circumspect report issued late Tuesday wasn't surprising. Two other major oil companies, ConocoPhillips and BP PLC, had previously disclosed their profits tapered off in 2006's final quarter.

Since soaring above $78 per barrel last July, crude oil prices have declined dramatically. Oil has sold for below $54 per barrel on the New York Mercantile Exchange this week, the lowest level in 19 months.

During the first two months of the fourth quarter, Chevron said its crude oil price averaged $52.26 per barrel, an 18 percent drop from $63.98 per barrel for the entire third quarter. Chevron fetched $54.99 per barrel during the same 2005 period.

more...
http://biz.yahoo.com/ap/070110/chevron_outlook.html?.v=5

[citizen snips]

24. XM and Sirius Grow on Analyst Notes

NEW YORK (AP) -- Shares of XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. rose Wednesday as analysts supported both broadcasters.

XM is open to a merger attempt with rival Sirius, Citigroup analyst Eileen Furukawa said in a client note, predicting that if such a deal is to happen, it will be before fall 2007. XM said a merger could create a shareholder value of $5 billion to $9 billion. Though XM finished fourth quarter 2006 with 7.6 million subscribers, short of its target of 7.7 million to 7.9 million, Furukawa said growth from Original Electronic Music Radio should help the company grow in 2007.

Furukawa raised her target price for Washington, D.C.-based XM to $21 per share from $16 and maintained her "Buy" rating.

Stifel Nicolaus analyst Kit Spring also felt the signs pointed to a Sirius-XM merger, and said the move would probably get Department of Justice and Federal Communications Commission approval.

more...
http://biz.yahoo.com/ap/070110/sirius_xm_movers.html?.v=1

[citizen snips]

25. Grain Mixed, Soybeans Rise

CHICAGO (AP) -- Grain futures were mixed Wednesday on the Chicago Board of Trade, while soybeans ended higher.

Wheat for March delivery fell 3 1/2 cents to $4.49 1/2 a bushel; March corn rose 5 3/4 cents to $3.60 1/4 a bushel; March oats fell 2 1/4 cents to $2.50 a bushel; March soybeans rose 1/4 cent to $6.64 3/4 a bushel.

Beef futures were mixed while pork finished higher on the Chicago Mercantile Exchange.

February live cattle rose 1.65 cent to 93.95 cents a pound; March feeder cattle fell .20 cent to 96.85 cents a pound; February lean hogs rose .80 cent to 60.55 cents a pound; February pork bellies rose 1.50 cent to 89.90 cents a pound.

more...
http://biz.yahoo.com/ap/070110/board_of_trade.html?.v=4

[citizen snips]

26. Stocks Stage Modest Comeback

NEW YORK (AP) -- Wall Street posted a modest advance Wednesday after blue chips including Alcoa Inc. extended their gains. Investors managed to look past concerns that falling crude prices would hurt profits of oil producers.

The market began the session with fresh concern that oil's decline would hurt profits in the energy sector and scare off money from sources like hedge funds that have helped push stocks higher in recent months. Adding to that sense was a profit warning from Chevron Corp. Investors' unease about sliding prices was a marked departure from that seen last summer and in subsequent months, when rising oil raised the specter of a jump in inflation.

Investors eventually turned their attention to upbeat news, such as word that US Airways Group Inc. raised its bid for Delta Air Lines Inc. by 20 percent to $10.2 billion. Investors were also pleased by news from Apple Computer Inc., which unveiled long-awaited plans for a mobile phone, as well as by a solid profit report from Alcoa Inc.

"There are good underlying good economic fundamentals. The buyers are starting to get a little more courageous in coming off the sidelines," said Al Goldman, chief market strategist with A.G. Edwards & Sons. "Markets take a rest, and the sellers do their dastardly deeds and the buyers become a little more aggressive and then you lift up."

more...
http://biz.yahoo.com/ap/070110/wall_street.html?.v=36

[citizen snips]

28. Stocks end up on earnings, tech strength

NEW YORK (Reuters) - U.S. stocks ended higher on Wednesday as a surge in Apple Inc.'s (NASDAQ:AAPL - News) shares sparked a rally in the technology sector and Alcoa Inc.'s (NYSE:AA - News) stronger-than-expected profit boosted optimism about company earnings.

Based on the latest available data, the Dow Jones industrial average (^DJI - News) was up 25.32 points, or 0.20 percent, to end at 12,441.92. The Standard & Poor's 500 Index (^SPX - News) was up 2.70 points, or 0.19 percent, at 1,414.81. The Nasdaq Composite Index (NASDAQ:^IXIC - News) was up 15.50 points, or 0.63 percent, at 2,459.33.

Apple rose 4.8 percent to $97 on the Nasdaq. Shares of Alcoa, a Dow component, jumped 6 percent to $30.23.

http://biz.yahoo.com/rb/070110/markets_stocks.html?.v=15

[citizen snips]

29. Las Vegas Sands Hits High on Macau News

NEW YORK (AP) -- Shares of casino and resort operator Las Vegas Sands Corp. climbed Wednesday, after a Jefferies & Co. analyst said the company received approval for a new development on Hengqin Island, near Macau.

Shares jumped $10.43, or 11.3 percent, to close at $102.81 on the New York Stock Exchange after trading at more than double their average volume. Earlier in the day, the stock traded as high as $103.08, eclipsing a previous 52-week high of $97.25.

Analyst Lawrence A. Klatzkin in a client note said he learned the company has received approval to develop on Hengqin Island. The company already operates and is developing facilities in Macau.

Klatzkin said Las Vegas Sands' managers indicated they hope to break ground on the new project before mid-February. The analyst estimates the work will take 11 years to complete.

more...
http://biz.yahoo.com/ap/070110/las_vegas_sands_mover.html?.v=1

[citizen snips]

30. Dollar Rises Against Major Currencies

FRANKFURT, Germany (AP) -- The dollar rose against other major currencies Wednesday after better-than-expected trade deficit figures were reported from Washington.

In afternoon New York trading, the euro bought $1.2936, down from $1.2999 on Tuesday, putting it at its lowest point since late November. The British pound fell to $1.9331 from $1.9398.

The dollar edged up against the Japanese currency, rising to 119.60 yen from 119.36 yen late Tuesday.

The dollar's gains came after the Commerce Department reported the trade deficit unexpectedly fell for a third straight month in November by 1 percent to $58.2 billion, the lowest monthly total since July 2005.

more...
http://biz.yahoo.com/ap/070110/dollar.html?.v=2

[citizen snips]

31. Venezuela to Negotiate Nationalizations

CARACAS, Venezuela (AP) -- President Hugo Chavez's government will negotiate settlements with companies that it plans to nationalize, a Venezuelan lawmaker said Wednesday.

"We're not going to do anything illegal. We will negotiate," Ricardo Sanguino, head of the congressional finance commission, told reporters. "There will always be compensation."

Chavez announced plans this week to take over the country's largest telecommunications provider and the electricity sector. The announcement sent Venezuelan stocks diving as investors sold their holdings in CA Nacional Telefonos de Venezuela, known as CANTV and which is partially owned by U.S.-based Verizon Communications Inc., and the utility Electricidad de Caracas, controlled by AES Corp., based in Arlington, Va.

Other than CANTV, Chavez did not specify which companies would be taken over, and Sanguino declined to elaborate.

more...
http://biz.yahoo.com/ap/070110/venezuela_nationalization.html?.v=3

[citizen snips]

32. Sector Snap: Securities Exchanges

NEW YORK (AP) -- Shares of securities exchanges advanced Wednesday after three trading platforms announced they reached record volume a day earlier.

Nymex Holdings Inc., which operates the New York Mercantile Exchange commodities trading floor, said Wednesday afternoon it hosted trade of 2 million contracts on Tuesday. Heavy trading in contracts tied to the value of oil propelled volume to a record, the exchange said.

Nymex said its energy contracts listed on Chicago Mercantile Exchange Holdings Inc.'s CME Globex platform also hit a record Tuesday.

Shares of Nymex rose $3.36, or 2.9 percent, to $121 and shares of Chicago Mercantile Exchange Holdings rose $10.21 to $548.37 in afternoon trading on the New York Stock Exchange.

more...
http://biz.yahoo.com/ap/070110/sector_snap_exchanges.html?.v=1

[citizen snips]

33. Sector Snap: Smartphone Makers

NEW YORK (AP) -- Shares of smartphone makers traded mixed Wednesday, a day after Apple unveiled a gadget that combines phone, e-mail and Web browsing services with features from its popular iPod digital music player.

Shares of Blackberry maker Research in Motion Ltd. sank nearly 8 percent to close at $131 yesterday, but regained some ground Wednesday. The Waterloo, Canada-based company's stock added $4.23, or 3.2 percent, to $135.23 in early afternoon trading on the Nasdaq.

Goldman Sachs analyst Brantley Thompson called Tuesday's sell-off an "overreaction" on the part of investors.

"The iPhone will compete with RIM's Pearl; however we do not see these products as 100 percent overlapping due to difference in price, functionality and consumer positioning," Thompson wrote in a note to investors.

more...
http://biz.yahoo.com/ap/070110/sector_snap_gadget_show.html?.v=1

[citizen snips]

36. Sears Expects Higher 4Q Profit

CHICAGO (AP) -- Sears Holdings Corp.'s announcement that it expects fourth-quarter and full-year profits to rise boosted the company's stock Wednesday. But another drop in a key measure of sales left analysts and investors wondering about the future of the nation's third-largest retailer.

Same-store sales, or sales at stores open at least a year, fell 1.2 percent for Kmart in the last two months of 2006, reflecting lower apparel sales due to unseasonably warm weather, the company said. Sears, Roebuck and Co.'s same-store sales fell 5.6 percent, which the company attributed to lower lawn and garden and appliance sales.

For the fourth quarter ending Feb. 3, the company forecast net income will reach $750 million to $830 million, or $4.87 to $5.39 per share, up from $648 million, or $4.03 per share, a year ago.

Results include a projected one-time, $12 million after-tax gain, the company said. It said unspecified gains from property sales were offset by losses of undisclosed magnitude related to derivatives trading.

more...
http://biz.yahoo.com/ap/070110/sears_guidance.html?.v=9

[citizen snips]

37. Genentech Earnings Soar 75 Percent

SAN FRANCISCO (AP) -- Genentech Inc. said Wednesday that strong demand for its cancer-fighting drugs fueled a 75 percent profit increase as the biotechnology bellwether shook off doubts its tremendous growth spurt over the last few years was slowing significantly.

The South San Francisco-based company reported it earned $594 million, or 55 cents per share, during the three months ending in December compared to $339.2 million, or 31 cents per share, at the same time in 2005.

Revenue for the period totaled $2.7 billion, a 38 percent increase from the previous year.

If not for accounting expenses unrelated to its ongoing operations, Genentech said it would have earned $659 million, or 61 cents per share. That figure exceeded by a nickel the expectations among analysts surveyed by Thomson Financial.

more...
http://biz.yahoo.com/ap/070110/earns_genentech.html?.v=1

[citizen snips]

38. Sector Wrap: Airline Shares Rise

NEW YORK (AP) -- Airline shares closed higher Wednesday, as crude prices continued to fall and US Airways Group Inc. boosted its bid for rival Delta Air Lines Inc.

Calyon Securities analyst Ray Neidl also upgraded several of the industry's biggest players on expectations for a strong first half of 2007.

The Amex Airline Index rose 2.7 percent to end at 62.61, with eight of its 11 component stocks marking gains. Helping shares, a barrel of oil dropped $1.50 to $54.14 on the New York Mercantile Exchange, easing pressure on an industry that counts fuel among its top costs.

Calyon's Neidl upgraded American Airlines' parent AMR Corp., Continental Airlines Inc., US Airways and United Airlines' parent UAL Corp. all to "Buy" from "Add." In a research note, he wrote that he sees encouraging industry fundamentals, including strong demand and increasing fares.

more...
http://biz.yahoo.com/ap/070110/airlines_sector_wrap.html?.v=1

[citizen snips]

39. Blockbuster Shares Up 6 Percent

NEW YORK (AP) -- Blockbuster Inc. shares climbed more than 6 percent Wednesday after the video rental service company announced strong growth in its new online subscription service.

Shares rose 6.4 percent, or 38 cents, to close at $6.28 on the New York Stock Exchange after a day of trading more than three times its average volume. In the last 52 weeks it has traded between $3.20 and $5.95.

Investors pushed up the stock after Blockbuster, known primarily for its in-store video rental service, said it expected to double its online subscriber base this year. The company has been trying to break into the online subscriber market where competitor Netflix has dominated. Netflix allows users to rent movies online and receive and return them by mail with no late fees. Blockbuster's online service, called Total Access, does the same -- except it also allows rentals and returns at its stores.

Citigroup analyst Tony Wible upped his price target on the news to $6.50 from $6.25. He said the company will advertise and likely reinvest in the online business.

more...
http://biz.yahoo.com/ap/070110/blockbuster_mover.html?.v=1

[citizen snips]

40. Procter & Gamble to Invest in Boston

BOSTON (AP) -- Procter & Gamble Co. on Wednesday said it will invest $35 million to $50 million in a Gillette manufacturing center in South Boston, on top of a $200 million commitment P&G made nearly two years ago to upgrade the century-old plant.

Cincinnati-based P&G also announced a reorganization to shift units gained in its 2005 acquisition of Gillette Co. into existing P&G divisions. P&G has operated a separate Gillette global business unit since the $57 billion acquisition was completed in October 2005.

P&G said its latest investment at the 33-acre site in South Boston would improve office space, lobby and meeting areas, training rooms, a cafeteria, and an employee fitness center.

Employees at the former Gillette corporate headquarters in the 52-story Prudential Tower in Boston's Back Bay section will move to the South Boston plant when the Prudential lease expires in 2009, P&G said.

more...
http://biz.yahoo.com/ap/070110/p_g_gillette.html?.v=1

[54anickel]

41. Treasuries Fall After Mortgage Index Boost, Trade Gap Reduction

http://www.bloomberg.com/apps/news?pid=20601009&sid=aXhzLuybDHdw&refer=bond

Jan. 10 (Bloomberg) -- U.S. Treasuries fell after reports showed mortgage applications surged last week and the U.S. trade deficit narrowed in November.

The data, and comments by Federal Reserve Bank of Chicago President Michael Moskow, reinforced the view that the Fed is unlikely to cut interest rates this quarter. Moskow said policy makers must remain ``vigilant'' on inflation because of low unemployment, and that economic growth will quicken in 2007.

``The Fed wants to remain on hold as long as possible,'' said Thomas di Galoma, head of U.S. Treasury trading at Jefferies & Co. in New York, an institutional brokerage firm. ``Customers generally continue to fight the lower-yield environment we're in.''

The yield on the benchmark 10-year note rose almost 3 basis points, or 0.03 percentage point, to 4.68 percent at 3:23 p.m. in New York, according to bond broker Cantor Fitzgerald LP. The price of the 4 5/8 percent security maturing in November 2016 fell 7/32, or $2.19 per $1,000 face amount, to 99 17/32.

Treasury yields, which move inversely to their prices, remained lower than the levels they touched last week when a government report showed December job growth exceeded economists' expectations.

more....

Are the bond vigilantes caving?

[54anickel]

44. The numbers for the record....

Dow 12,442.16 25.56 (0.21%)
Nasdaq 2,459.33 15.50 (0.63%)
S&P 500 1,414.85 2.74 (0.19%)
10-yr Bond 4.6820% 0.0260
30-yr Bond 4.7700% 0.0320
NYSE Volume 2,764,950,000
Nasdaq Volume 2,342,815,000

4:20 pm : After struggling to find direction for most of the session, some afternoon buying interest, buoyed by another mass exodus out of oil and fears of missing out on an extended tech rally, helped all three major averages close modestly higher.

While lower oil prices are certainly good for the economy, as they've substantially reduced overall consumer price inflation of late, lingering concerns that diminishing demand for crude may foreshadow even weaker than expected economic growth acted as an offset to oil's continued downturn. After tumbling as much as 3.6%, as larger than expected builds in gasoline and distillate supplies continued to ease supply concerns, crude for February delivery closed down 2.9% at $54.02/bbl. That was the first time oil closed below $55/bbl since June 2005.

Another cautious-sounding statement out of the Energy sector (-1.6%) also contributed to the lack of leadership from one of the biggest contributors to aggregate earnings growth on the S&P 500 for several quarters that minimized blue-chip gains. Chevron (CVX 69.41 -1.22) said Q4 will be adversely affected relative to its record Q3 results, serving as the latest reminder that earnings estimates for other energy names will likely be revised lower.

The inability by economically-sensitive transportation stocks to take full advantage of another sell-off in oil also lent some credibility to concerns about diminishing demand for crude being a result of weaker than expected economic growth. In fact, airlines were among the only transports attracting buyers, but that was largely due to US Airways (LCC 58.90 +1.00) raising its hostile bid for Delta by 25% to $10.2 bln.

Aside from M&A activity, Alcoa (AA 29.61 +1.09) kicking off the Q4 earnings season Tuesday night on a solid note, topping Wall Street forecasts, was another positive. Even though Alcoa is not a bellwether for overall earnings trends, a 6.0% advance on today's best performing Dow component left Aluminum as today's best performing S&P industry group.

Turning in the second best performance on the Dow was Intel (INTC 21.52 +0.49) whose 2.3% advance helped lift the influential Tech sector's 2007 gain to nearly 3% just six trading days into the new year. Intel is providing chips for the recently introduced Apple TV. Sizable gains in two companies believed to be beneficiaries of Apple's iPhone -- Marvell Technology Group (MRVL 20.88 +1.15) and Nvidia (NVDA 34.90 +1.65) -- prompted even more rotation out of areas like Energy and into Tech, which Briefing.com rates as "Overweight." Meanwhile, Apple (AAPL 96.80 +4.23) tacked a 4.6% gain onto yesterday's 8% rally to close at a new all-time high following upbeat analyst commentary and several price target increases.

Consumer Staples was another bright spot for investors after Dow component Altria Group (MO 89.19 +1.07) surged 1.2% to a fresh all-time high, as investors continue to find value tied to the upcoming spin-off of its stake in Kraft. BTK +0.6% DJ30 +25.56 DJTA +0.2% DJUA +0.1% DOT +0.3% NASDAQ +15.50 NQ100 +1.1% R2K +0.1% SOX +1.8% SP400 +0.3% SP500 +2.74 XOI -1.7% NASDAQ Dec/Adv/Vol 1539/1493/2.15 bln NYSE Dec/Adv/Vol 1638/1640/1.45 bln

3:30 pm : More of the same for equities as the Nasdaq continues to turn in a better performance than its blue-chip peers going into the close. Thus, of the nine sectors trading higher, it's not surprising to see Technology (+0.7%) leading the charge. The Materials sector (+0.6%) is a close second, as Alcoa's (AA 30.22 +1.70) strong Q4 results helps to earmark Aluminum as today's best performing S&P industry group (+6.0%).DJ30 +28.92 NASDAQ +14.07 SP500 +3.08 NASDAQ Dec/Adv/Vol 1587/1411/1.86 bln NYSE Dec/Adv/Vol 1744/1476/1.22 bln

3:00 pm : Stocks regain some upward momentum since the last update, lifting the indices to fresh session highs. Crude oil prices recently closing below $55/bbl for the first time since June 2005, actually settling near $54/bbl, remains the driving factor behind this afternoon's market recovery. Be that as it may, it is worth noting that negative market breadth continues to lend little conviction on the part of buyers, suggesting that most of today's modest market gains can be attributed to strength from a handful of large-cap names (e.g. PG +1.1%, MO +1.3%, INTC +2.0%, AAPL 4.1%, HD +1.3%, QCOM +1.0%, YHOO +3.3%, SUNW +4.7%, S +1.6%, TXN +1.7% and AA +5.8%). DJ30 +26.52 NASDAQ +11.56 SP500 +2.60 NASDAQ Dec/Adv/Vol 1657/1329/1.72 bln NYSE Dec/Adv/Vol 1853/1366/1.12 bln

2:30 pm : The major averages are off their best levels but continue to sport modest gains. Turning in today's best performance among the most closely-watched indices, though, is the Nasdaq 100 (+0.8%). A 3.5% surge in Apple (AAPL 95.85 +3.28) is providing the bulk of support, while gains of more than 5.0% are also being enjoyed by Marvell Technology Group (MRVL 20.82 +1.09) and Nvidia (NVDA 34.95 +1.70), which are believed to be beneficiaries of Apple's iPhone. XM Satellite Radio (XMSR 16.72 +1.60) is pacing the way with a 10.6% advance, after Citigroup raised their price target to $21 from $16, while Sears Holding (SHLD 170.32 +4.09), after raising its Q4 and full-year profit outlook, is also a notable gainer. DJ30 +11.30 NASDAQ +6.53 SP500 +0.75 NASDAQ Dec/Adv/Vol 1669/1299/1.57 bln NYSE Dec/Adv/Vol 1880/1337/1.02 bln

2:00 pm : Buyers continue to show their resolve as recovery efforts help the indices try to abandon their neutral stance. Oil prices recently breaking through $54/bbl (-3.3%), and a simultaneous turnaround in the influential Financials sector, have been the big reasons behind the Dow and S&P 500 turning positive for the first time today. The Energy sector’s ability to again show some resilience in the face of plunging oil prices is also noteworthy. Energy (-1.1%) is now the only sector in the red. However, respectable gains of roughly 0.4% for Tech, Consumer Discretionary and Staples are the driving forces behind the market's recent improvement. DJ30 +18.67 NASDAQ +7.79 SOX +0.9% SP500 +1.95 NASDAQ Dec/Adv/Vol 1726/1239/1.42 bln NYSE Dec/Adv/Vol 1927/1225/928 mln

1:30 pm : The market has inched higher since the last update, but all three indices still vacillate around the unchanged mark. While the number of sectors trading higher (6) outnumber those trading lower (4) for the first time today, it is also worth noting that gains/losses only average about 0.1% to 0.2% for every sector, excluding Energy (-1.4%). DJ30 -6.81 NASDAQ +2.97 SP500 -1.35 NASDAQ Dec/Adv/Vol 1719/1221/1.26 bln NYSE Dec/Adv/Vol 1973/1226/840 mln

1:00 pm : Stocks remain mired in relatively tight trading ranges, showing little reaction to recent testimony from Chicago Fed President Moskow. Moskow, who is a voting Fed member this year, said 30 minutes ago that he remains optimistic the economy will pick up in coming months and return to its potential growth rate of around 3.0%, also noting that housing is not spilling over into broader economy. However, with the threat of higher inflation still Moskow's "predominant concern," his mixed remarks have done little to help set a more definitive tone to today's lackluster trading action. DJ30 -20.35 NASDAQ +0.86 SP500 -1.61 NASDAQ Dec/Adv/Vol 1798/1131/1.16 bln NYSE Dec/Adv/Vol 2079/1104/770 mln

12:30 pm : No real change in sentiment as traders make their way through the New York lunch hour. The hesitation on the part of buyers, as the Nasdaq clings to the smallest of gains, is further evidenced in negative market internals. As reflected in the A/D line, decliners hold a 17-to-11 margin over advancers on the tech-heavy Composite while those on the NYSE hold a 2-to-1 edge. Down volume also outpacing down volume by a healthy margin at both the Big Board and Composite further underscores the developing nervousness amongst investors. DJ30 -21.39 NASDAQ +1.24 SP500 -2.46 NASDAQ Dec/Adv/Vol 1719/1167/1.01 bln NYSE Dec/Adv/Vol 2053/1079/670 mln

12:00 pm : Stocks are trading with a sense of caution midday as plunging oil prices continue to play havoc with investor psyche. Market participants are also showing some reserve ahead of testimony about the economic outlook from Chicago Fed President Moskow at 12:30 ET.

While lower oil prices are certainly good for the economy, substantially reducing overall consumer price inflation, lingering concerns that diminishing demand for crude may foreshadow even weaker than expected economic growth is acting as an offset to oil's continued downturn. Crude for February delivery is down 2.0% at $54.50/bbl following much larger than expected builds in gasoline and distillate supplies. Another warning in the Energy sector (-1.8%) is also contributing to the lack of leadership from one of the biggest contributors to aggregate earnings growth on the S&P 500 for several quarters. Chevron (CVX 69.12 -1.51) is down more than 2.0% after saying Q4 will be adversely affected relative to its record Q3 results.

Of the five other sectors trading lower, the most influential S&P 500 sector -- Financials -- turning in the day's second worst performance also remains an obstacle for the bulls to overcome.

On a positive note, Alcoa (AA 29.61 +1.09) kicked off the Q4 earnings season last night on a solid note after topping Wall Street forecasts. The Dow component is up 3.8%. However, since Alcoa is not a bellwether for overall earnings trends and the Q4 season doesn't pick up in earnest until next week, buyers remain worried that last year's second-half rally left stocks overextended when faced with the likelihood of a slower rate of earnings growth this year.

As evidenced by the Nasdaq clinging to a small gain, Technology remains the best story so far in 2007. The sector is getting the bulk of its support from hardware (HWI +1.2%), especially a 5.2% surge in Apple (AAPL 97.38 +4.81) following upbeat analyst commentary and several price target increases. Relative strength in chip stocks is also lending some support, especially from Dow component Intel (INTC 21.22 +0.19), which is reportedly slated to make the CPU for Apple's iPhone. With IBM (IBM 98.27 -1.80) hitting multi-year highs yesterday, however, AG Edwards downgrading the Dow component on valuation concerns may leave investors questioning the sustainability of strong gains in other tech names.DJ30 -20.71 NASDAQ +1.27 SOX +0.5% SP500 -2.37 NASDAQ Dec/Adv/Vol 1695/1155/902 mln NYSE Dec/Adv/Vol 2069/1028/580 mln