STOCK MARKET WATCH, Thursday January 11

[ozymandius]

Thursday January 11, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 739 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2207 DAYS
WHERE'S OSAMA BIN-LADEN? 1912 DAYS
DAYS SINCE ENRON COLLAPSE = 1873
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 10, 2007

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%)
Gold future... 613.40 -1.60 (-0.26%)
30-Year Bond 4.77% +0.03 (+0.68%)
10-Yr Bond... 4.68% +0.03 (+0.56%)






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

BETTING ON OIL
Opportunity of the Decade?
BY CHRIS PUPLAVA

In the context of the New Year I thought I would try something new--writing my own macro theme picture for 2007. There are several topics I want to cover and will put them out over the next several weeks. With the recent beating in energy stocks precipitated on the unseasonably warm weather this month, I thought I would start there and look at some long term trends and the fundamentals.

-cut-

So what will to be the mania for this decade? There are many candidates, but those that appear the most likely are similar to those seen in the 70s, precious metals and energy. The AMEX Oil Index (XOI) is up from the low of 416.71 in early 2003 to the a reading of 1131.78 as of January 3rd (+172%), and gold is up from a low of $257.90/oz in early 2001 to $629.80/oz (+144%) as of January 3rd. An even greater run has been seen in uranium, which has surged unabated in its performance since the start of its bull run in 2003 at roughly $10/lb to the current $72/lb, up 620%.

-cut-

Supply & Demand Fundamentals

Despite weakness in the U.S. economy, the fundamentals for energy still remain strong. Global oil demand is rising in the face of falling oil production and OPEC cuts. Since the sharp rise in global oil demand in 2004, oil demand has been decelerating and even briefly turned negative in early 2006. However, global oil demand has since reaccelerated and has remained on an upward path since the same time production has been falling.

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

-very lengthy-

[ozymandius]

2. Today's Reports

8:30 AM Initial Claims 01/05
Briefing Forecast 320K
Market Expects 320K
Prior 329K

2:00 PM Treasury Budget Dec
Briefing Forecast $26.0B
Market Expects $24.0B
Prior $11.2B

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

[54anickel]

29. Jobless Claims Drop by 26,000 Last Week

Jobless Claims Fall by 26,000 to 299,000 Last Week, Its Lowest Level in Nearly 6 Months

http://biz.yahoo.com/ap/070111/economy.html?.v=3

WASHINGTON (AP) -- The number of newly laid off workers filing claims for unemployment benefits fell sharply last week to the lowest level in nearly six months.
The Labor Department reported Thursday that applications for jobless claims dropped by 26,000 to 299,000 last week on a seasonally adjusted basis. It marked the first time jobless claims have fallen below 300,000 since the week of July 22.

The improvement was much better than the decline of 9,000 that analysts had been expecting and provided further evidence that the slowing U.S. economy has not begun to seriously affect the labor market outside of specific industries such as housing and auto manufacturing.

The four-week moving average for claims, which helps to smooth out week-to-week volatility, edged down to 314,750, the lowest level since early November.

The good news on jobless claims followed a report last week that employers added 167,000 new jobs in December, a better-than-expected showing which helped keep the unemployment rate steady at a 4.5 percent.

Job gains in service industries such as health care and banking offset losses in such areas as construction, which had been hard hit by the slump in the once-booming housing market, and in autos, where domestic automakers are struggling against stiff foreign competition.

While economic growth slowed significantly in the second half of the year, analysts said there are no signs that the economy was threatening to topple into a recession. They believe that the Federal Reserve is close to achieving its hoped-for soft landing in which slowing growth lowers inflation pressures without triggering a severe downturn.

more...

[ozymandius]

3. Oil prices falls to $53.22 a barrel

SINGAPORE - Oil prices extended declines in Asian trading Thursday after U.S. government data showed a larger-than-expected increase in domestic inventories of gasoline and heating oil.

Light, sweet crude for February delivery dropped 80 cents to $53.22 on the New York Mercantile Exchange in electronic trading mid-afternoon in Singapore. The contract fell $1.62 to end at a 19-month low of $54.02 a barrel Wednesday.

-cut-

Oil prices have declined more than 11 percent the past two weeks, as speculators have bid down futures on expectations of lower winter demand and a belief that the Organization of Petroleum Exporting Countries lacks the discipline to comply with its recent output cuts.

-cut-

It's not just energy prices that have been falling. The broader commodities market have taken a hit in 2007 by what some analysts say has been an exodus of investment fund money. Industrial metals such as copper, and precious metals including gold, have dropped since the year began.

http://news.yahoo.com/s/ap/20070111/ap_on_bi_ge/oil_prices_59

[ozymandius]

4. Russia resumes pumping oil to Europe

MOSCOW - Russia resumed pumping oil to Europe via Belarus on Thursday, ending a three-day suspension of supplies caused by a dispute between the former Soviet neighbors that has left lasting doubts in European capitals about Russia's dependability as an energy supplier.

The Russian state pipeline operator said that it had started deliveries to Germany and a number of Eastern European countries through Belarus Thursday morning.

"Russian oil is flowing through the Druzhba pipeline to Europe," OAO Transneft Vice President Sergei Grigoriyev told The Associated Press.

This followed a resumption of supplies late Wednesday by Belarus, which was compensating Russia for 87,000 tons of crude that it had illegally siphoned off, Grigoriyev said.

http://news.yahoo.com/s/ap/20070111/ap_on_re_eu/russia_belarus_oil_26

[ozymandius]

5. Fuel dealers' earnings melting in mild winter

Mild weather may sit well with Mummers and anyone else who relishes a springlike day in January. But to those in the energy trade, this winter already looks like a slow-motion train wreck.

And that's especially true for fuel-oil dealers in Philadelphia and elsewhere in the Northeast.

Demand for heating fuels is down sharply from last year. Peco Energy sold 18 percent less natural gas in December than it did a year earlier. Philadelphia Gas Works says its December sales dove 26 percent. Area fuel-oil dealers say deliveries are down 20 percent to 25 percent.

With weather also mild in the Midwest and Europe, lower demand has depressed prices, too. Since Dec. 1, spot prices for natural gas have dropped nearly 30 percent, the federal Energy Information Administration said yesterday. In that same period, spot prices for West Texas Intermediate crude oil have fallen about 12 percent.

http://www.philly.com/mld/inquirer/16422803.htm

[ozymandius]

7. EU Unveils Major New Energy Policy

The European Commission unveiled sweeping plans Wednesday to diversify EU energy sources, slash carbon emissions by 20 percent and enforce rules for fuel competition.

The commission presented the plan as the gateway to a "post industrial revolution" amid deep concern over the reliability of supplies from Russia, breaches of EU energy principles by member governments and global warming.

After recent oil spikes and tensions with Russia over its gas and oil shipments and signs that some EU governments prefer national policies, EU Commission President Jose Barroso called on the 27-nation bloc to "face new realities" with coherent EU action.

"Europe must lead the world into a new, or maybe one should say, post industrial revolution -- the development of a low carbon economy," he told journalists. "We have already left behind our coal-based industrial past, it is time to embrace our low carbon future."

http://www.dw-world.de/dw/article/0,2144,2305545,00.html

[ozymandius]

8. EU proposes break-up of energy giants

The grip of Europe's energy giants on the Continent's oil and gas markets will come under threat today when the European Commission unveils plans which could mean formal separation of supply and generation companies.

A policy document will express a preference for full "unbundling" of ownership, but will also offer a less radical shake-up under which companies such as E.on and Electricité de France would retain ownership of network assets.

-cut-

Today's energy and climate change launch will unveil plans to push for new targets under which the EU's CO2 emissions would be cut by 30 per cent on 1990 levels by 2020 if other developed countries agree to follow suit, and 20 per cent if applied unilaterally.

http://news.independent.co.uk/business/news/article2140308.ece

[Roland99]

16. And gas is still 10-20% above the price levels from summer 2005

depending on where you live.

[UpInArms]

6. dollar watch

(it's just not "daily" anymore - life in the UIA household has changed - having to leave early fairly often and not having very many moments to even check in and see what is happening)

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

Last trade 84.80 Change -0.27 (-0.32%)

Instant Insight - BOE Shocks With Rate Hike to 5.25%

http://www.dailyfx.com/story/special_report/special_reports/Instant_Insight___BOE_Shocks_1168517777554.html

In a surprise move, the Bank of England raised rates by 25 basis points to 5.25% stating that "growth continues at a firm pace" and risks to inflation appear more to the upside. The UK economy has shown remarkable resiliency over the past several months as the consumer sector led by a strong rebound in retail sales firm labor market and near double digit increase in housing has provided a solid base for economic growth.

What has been even more impressive is UK recovery in the manufacturing sector with today's release showing upside surprises in Industrial production and the first positive reading in manufacturing production in three months. The MPC is clearly trying to nip any inflationary pressures in the bud. Today's shocker should prove beneficial for the pound especially against the yen - where expectations of any rate hike by the BOJ have been put on hold. Last time the BoE surprised with a rate hike the GBP/JPY cross moved 700 points higher within two weeks. While such a spurt is unlikely given the lofty levels that the pair currently trades at, the news should continue to attract more carry capital in to the cross now that the interest rate differential has increased.

...more...

Dollar Bid On Better Than Expected Trade Report

http://www.dailyfx.com/story/currency/eur_news/Dollar_Bid_On_Better_Than_1168459311979.html

The dollar finally came across a fundamental indicator worthy of moving the currency market. November’s trade balance offered up another reason to push the greenback right up to (and in some cases over) major technical levels.

In the benchmark EURUSD, the pair slipped below sound support seen at 1.2975 on a 70-point swing lower to 1.2930. Against the pound, a steady, 100-point advance in the dollar pushed the pair down to 1.9320. Marking a new 10-week high, USDCHF overtook the 1.2450 level with authority, leaving few levels of resistance until 1.2560. Finally, USDJPY has made a test on a major falling trendline with the intra-day rise to 119.80 following a 65-point.

After a slow start the US economic calendar was finally printing numbers that would impact fundamentalists’ dollar valuations. The key release for the day was the Commerce Department’s measure of the trade deficit. A stepping stone for the emerging dollar bulls, the third consecutive contraction in the trade shortfall shirked the market’s expectation of a modest swelling for the month. The balance printed a $58.2 billion deficit compared to the $58.8 figure in October, for the smallest net outflow since July of 2005. Breaking the overall indicator into its parts painted an even brighter picture of trade. Total imports over November grew only 0.3 percent to $183 billion as the crude bill shrank to $21.5 billion, also the smallest since 2005. On the other hand, exports reached a record after growing 0.9 percent to $124.8 billion. Encouraged by a drop in the dollar and strong European-region growth, the increase in shipments abroad was seen in many of the key industry groups. Statistics reveal services grew 1.4 percent, commercial aircraft shipments rose 15.7 percent and auto sector exports picked up 3.7 percent. Another measurement that bodes well for trade relations in the future was the contraction in the trade deficit with China. Stepping back from a record $24.4 shortfall in October, the $22.9 balance should alleviate some of the urgency in Washington to impose harsh trade restrictions on imported Chinese textiles and consumer goods.

While nearly every angle of the trade report was positive, the dollar’s reaction to the news was disproportionately mild. This suggests the market is trained focused on more immediate threats to the US economy rather than the ever-present ‘big’ deficit numbers every month. This reservation may be just another build up in pressure that could trigger a significant shift in momentum on a surprise retail sales report.

...more...

[ozymandius]

11. Good morning UIA and all.

:donut: :donut: :donut:
I have missed the "daily" part very much. But such things happen when your real life leads the way. Much is the case with me now since one job passed away in October and another has taken its place with increasing regularity.

About the dollar: its gradual decrepitude has taken a bite out of my love for imported cheeses. So sad. At least we have microbreweries these days in America to provide good beer.

Have a great day folks!

Ozy :hi:

[54anickel]

14. Hi UIA. The intra-day movement in the buck has been pretty crazy

these days. If you get a chance, check today's daily chart-between 7 & 9 am for a good example. http://quotes.ino.com/chart/?s=NYBOT_DX&v=s
Been doing that the past couple of weeks at different hours of the day, like there's some tug-o-war going on. There'd be a steep, substantai move in one direction, followed by another in the opposite direction. It's usually been a down followed by an overshooting up. :shrug: Whatever the cause, there's some big money moving around.

[AnneD]

15. Morning Marketeers....

:donut: and lurkers. Thanks Ozy, UIA, and 54anickel. Things have been getting crazier these days, both at home and the markets. I get the feeling that there is a large amount of liquidity sloshing around out there. Nothing brings out the sharks faster than blood in the water. I'm looking for a continuation of some REALLY BIG scandals to snap up some of that money.

I am beginning to think the next big thing is more of these privately held companies being taken private-bucks extracted from them in the form of loans being taken out against the companies, they be repackaged a bit and then being put on the market at a higher price, for even more profit. I think that the big money will flip companies much like folks flipped homes until recently. Stocks will become over valued (even more than they are now)until the rug gets pulled out from under them. It is a thought that has been gnawing at my brain for a few weeks after I read one of the posts here about an IPO on a Co. that had been taken private for a while. Wish I could say wither it was 54 or UIA that posted it and I think it was Halliburton or KBR that got me thinking on that track.. What do you guys think-is it possible or am I spitting in the wind?

Happy hunting an watch out for the bears.

[Ghost Dog]

25. India is awash in private equity

http://money.cnn.com/magazines/fortune/fortune_archive/2007/01/22/8398211/index.htm?postversion=2007011110

(Fortune Magazine) -- India has never rolled out the welcome mat for foreign companies. Red tape, restrictions on ownership and other barriers have made it difficult for banks, retail giants and media companies to gain a foothold in one of the world's fastest-growing economies. But when it comes to foreign private equity, that's another story.

Indeed, the door is wide open: Foreign private-equity investments in Indian companies doubled to $2.2 billion in 2005 from the previous year, then increased in the first nine months of 2006 to $5.4 billion, according to industry newsletter Venture Intelligence.

And unlike South Korea and Japan, where foreign private-equity groups have been castigated as "vultures," they have been embraced in India - even after scoring big profits, as TPG Newbridge did last year when it netted $260 million selling its stake in Matrix Laboratories to U.S. generics giant Mylan Laboratories (Charts).

"There's a far more mature and benevolent environment for private equity in India," says Leo Puri, director of McKinsey & Co. in India. "Unlike East Asia, there has historically been no distress associated with the involvement of private equity in India."

/...

Hi AnneD :hi: I always pay great attention to what your 'bones' have to say... ;-)

[AnneD]

32. We must be on the same wave length...

I was thinking about you when I typed the morning post. Guess the radar is more sensitive than usual today. Been missing your posts :hi:

[54anickel]

34. You must be onto something - they're debunking you.

Debunking the private equity myth

Does the private equity boom mean that no company wants to be public anymore? Hardly. Fortune's Adam Lashinsky explodes the hype behind today's business buzz.

http://money.cnn.com/2007/01/09/commentary/lashinsky_pluggedin_privatemyth.fortune/index.htm?postversion=2007010910

SAN FRANCISCO (Fortune) -- A series of laughable assertions is becoming vogue in business circles these days, regarding what a gosh-darn pain in the rear it is to run a publicly traded company.

Hot-shot CEOs would rather work for a company controlled by a private-equity firm than by public shareholders, as The New York Times asserted in a front-page story Monday. Entrepreneurs would rather sell out than go through the tedious process of an initial public offering. Companies that do plan to go public intend to do it outside the United States.

There's a word for this kind of thinking, but it's not the kind of word that Fortune writers use in print. So let's just say it's ridiculous.

CEOs who leave the world of public firms for the supposedly cushy realm of private-equity-controlled corporations know damn well that one day - soon, if all goes according to plan - their company will attempt again to go public. That's simply how the game is played. Similarly, high-quality companies can and do go public (Google (Charts), Salesforce.com (Charts) and so on).

Riding the private equity gravy train
Finally, companies with any self-respect don't run to lightly regulated exchanges like London's AIM. According to the little understood rules there, eventually U.S. companies that list in London will come under the scrutiny of the U.S. Securities and Exchange Commission anyway. So running away from U.S. regulators is pointless.

more...

[AnneD]

52. When you're hot you're hot.....

love these quotes from the same article...

<snip>
"Moreover, the private-equity firms that help management take companies private aren't planning to make their annual bonuses from the dividends that the companies in their portfolio pay. Nine times out of ten, the way they'll make their haul is by conducting an IPO. Again. As the colorful CEO of Seagate (Charts), Bill Watkins, told Fortune's Jeff O'Brien recently: "When you go private, the only thing you think about is going public again."

It's true that private-equity investors are willing to out-pay public boards of directors, surprising though that may seem at first blush. That gives you some sense of who's losing out in a going-private transaction.

The private-equity firms are all about money. If they can make their money - which they achieve by buying low and selling high - they'll pay a CEO $100 million just as easily as they'll pay him $20. To the extent they are able to buy low, it's no mystery who's getting the raw end of the deal: the previous shareholders.

Alas, the private equity inflation of CEO salaries is merely the free market at work. For all the outrage over obscene CEO pay - and I share it - I've yet to see a good proposal for how to rein it in. New York magazine columnist Kurt Andersen suggests two solutions in a recent column: "limit tax deductibility of CEO pay" or "by making CEO pay subject to shareholder vote every year."

I am not trained in Economics so when some of these stories hit the thread-it takes me a while to digest them (cogitate on it if you will). I remember this idea first hit me when I started reading about the Hertz IPO. I read about it two, three, or more time (til I got a headache actually). I read about them taking out loans, not for the company, but to pay themselves. Then they put the company on the market as an IPO. Now the company (plus the added debt) was offered. So folks buying the IPO were suckered into paying the loan PLUS the IPO share price (plus the holding company seems to be getting other goodies too). It just seemed like a giant house flipping scheme to me and a way to milk more capital out of a company without putting in any improvements.

Thanks for the article, I take it as an affirmation. I felt a bit awkward posting that thought....but like I said-it's been on my mind since the IPO offer.

[54anickel]

56. That whole article is obviously geared to the Fortune reading crowd. What

gets my goat is that line about private-equity firms make their money by buying low and selling high. Not always true. Have 2 manufacturing plants in the area that were taken over by private-equity for a decent price with their eyes on going public in 5 years.

One has cut labor, wages, benefits, closed or consolidated plants and made the company look pretty damned good - on paper. Profits and productivity are up from when they took over, things are shiny-bright in the books, but they're also steadily loosing market share due to delivery and quality issues. Any "savings" aren't being passed along to their customers, so what's to keep them? They're looking to go public this year - I imagine that's so they can sell high while they still "look good".

The other was bought 5 years ago and never got the books shiny enough for an IPO - they're on the auction block looking for another private-equity "sucker". Their asking price is pretty high because they racked up a lot of debt trying to "polish a turd".

[Ghost Dog]

17. Yes, I'm also observing signs of a currency "tug of war"

... Powerful interests involved, of course. Perhaps, some being given the opportunity to trade out gadually before the apparently almost inevitable continued dollar fall?

[Ghost Dog]

18. Euro falls as ECB gives no hint on hikes

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070111:MTFH74493_2007-01-11_15-13-34_N11352630&type=comktNews&rpc=44

NEW YORK, Jan 11 (Reuters) - The euro slumped to eight-week lows against the dollar on Thursday after European Central Bank President Jean Claude Trichet offered no clear signal that the central bank would raise interest rates at its next meeting.

The euro pared gains versus the yen, which hit a 13-month low against the dollar.

The ECB left interest rates unchanged as expected but in his post-meeting press conference, its President Jean Claude Trichet said the bank would act in a "firm and timely way" but would not use "strong vigilance" when watching monetary developments.

Although the market is still pricing in another ECB rate rise by the end of the first quarter, Trichet's cautious tone led market players to scale back their expectation that the move could come as early as February.

Some analysts even interpreted his comments as casting doubt on the likelihood of a rate hike by March.

/...

[Ghost Dog]

20. Surprise BoE hike hits bonds, stocks; sterling up

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070111:MTFH69381_2007-01-11_12-25-08_L11637600&type=comktNews&rpc=44

LONDON, Jan 11 (Reuters) - British stocks and bonds fell while sterling jumped on Thursday after the Bank of England unexpectedly raised interest rates to combat inflation. While the rate rise rattled British markets, global stocks and bonds also took a hit as the move raised concerns about tighter monetary conditions draining liquidity from international markets.

The BoE hiked rates to a 5-1/2 year high of 5.25 percent, surprising most in the market who had expected the central bank to wait at least another month for further clues on wages and consumer spending.

"The MPC is once again reinforcing its status as the world's most hawkish central bank," said Kit Juckes, head of debt market research at RBS.

"The currency obviously benefits from this and it will increase nervousness about what the ECB and the Fed are going to do next. This could tip the balance for a sell-off in stocks and corporate bonds."

Sterling <GBP=> rose to an 18 month peak against the euro <EURGBP=> and climbed 1 percent against the dollar <GBP=> to $1.9520.

/...

[54anickel]

30. Treasuries Fall After Bank of England's Unexpected Rate Boost

http://www.bloomberg.com/apps/news?pid=20601009&sid=aremBe91w3BM&refer=bond

Jan. 11 (Bloomberg) -- Treasuries fell after the Bank of England unexpectedly raised its benchmark interest rate, pushing yields higher on European bonds and cooling speculation that the U.S. Federal Reserve will lower borrowing costs this year.

The U.K. decision may indicate a greater likelihood of increases by other central banks, including the Bank of Japan, aimed at quelling inflation risks. British policy makers said inflation risks ``now appear more to the upside.'' Fed Governor Donald Kohn on Jan. 8 said it's ``still too early'' for the central bank to relax its guard on inflation.

``Inflation risks are still, both domestically based on what we continue to hear from Fed officials and globally, tilted to the upside,'' said Mark Ficke, head of U.S. government bond trading at BNP Paribas Securities Corp. in New York, one of the 22 primary U.S. government securities dealers that trade with the Fed. ``The market is way too far ahead of itself'' in pricing in a rate cut by the Fed.

Yields on U.S. two-year notes, more sensitive than longer- maturity debt to changes in monetary policy expectations, touched the highest in about two months. The note's yield rose 3 basis points to 4.84 percent, the highest since Nov. 17, at 9:52 a.m. in New York, according to bond broker Cantor Fitzgerald LP. The price of the 4 3/4 percent security maturing in December 2008 fell 2/32, or 63 cents per $1,000 face amount, to 99 26/32.

The benchmark 10-year note's yield rose 2 basis points to 4.71 percent.

more...

Hmmm, is this some concerted effort to shake the bond vigilantes loose? They've been betting the next Fed move will be to lower rates. Are we looking stagflation in the eyeball? Nah, can't be - we're experiencing solid growth - just look at the numbers from the Dept of Lies...er, I mean Labor. :shrug:

[Ghost Dog]

22. European shares up on absence of "strong vigilance"

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=londonMktRpt&storyID=2007-01-11T140937Z_01_L11681543_RTRIDST_0_MARKETS-EUROPE-SHARES-RECOVERY-URGENT.XML

LONDON, Jan 11 (Reuters) - European shares recovered further on Thursday after ECB President Jean-Claude Trichet did not use the term "strong vigilance" in his speech after the bank left interest rates steady at 3.5 percent.

The phrase "strong vigilance" is seen as indicative of future rate increases.

"March will be the next rate rise, but after that we see in Trichet's message a more prudent tone on the situation which makes us think that the ECB may be getting closer to ending its monetary tightening cycle," said SG economist Veronique Riches-Flores.

At 1359 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.51 percent at 1,485.19 points.

Among regional indexes, both Germany's DAX <.GDAXI> and France's CAC 40 <.FCHI> were up 0.5 percent, while Britain's FTSE 100 .FTSE was down 0.2 percent after a surprise rate increase by the Bank of England.

/.

[Ghost Dog]

19. Dollar surges above 120 yen line to hit 13-month high

http://asia.news.yahoo.com/070111/kyodo/d8mj3c001.html

(Kyodo) _ The U.S. dollar surged above the key 120 yen barrier Thursday morning in London, rising as high as 120.40 yen at one point -- a 13 month high -- due to receding expectations for a rate hike in Japan in the near future.

At 11 a.m., the dollar was quoted at 120.30-40 yen, compared with 119.95-97 yen at 5 p.m. Thursday in Tokyo.

The euro was quoted at $1.2960-2970 and 156.10-15 yen, against Thursday's 5 p.m. quotes of $1.2966-2968 and 155.53-57 yen in Tokyo.

The yen was already under strong selling pressure in late Tokyo trading when European participants began taking the lead in the market. It was quoted at around 120.20 yen shortly after 5 p.m. in Tokyo.

The dollar continued to firm against the yen in London trading as more market players bet that the Bank of Japan will not raise its interest rates in January, dealers said.

They said that even though some Japanese exporters have been selling the dollar and buying the yen, more European banks have been selling the yen.

The yen is likely to lose further ground to the upper 120 yen level, they said.

/.

[Ghost Dog]

23. Japan Leading Economic Index Falls In November; Coincident Index Retreats To Threshold

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070111\ACQRTT200701110153RTTRADERUSEQUITY_0055.htm&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD&chk=unchecked&lang=&link=&headlinereturnpage=http://www.international.nasd

(RTTNews) - Japanese leading economic index slumped to 20.0% in the month of November, a preliminary report from the Cabinet Office said Thursday. The result was in line with economists' expectations. The gauge fell below the boom-or-bust line of 50%. In October, the index showed a reading of 54.5%. The leading index blends a group of economic time series that tend to precede business cycle turning points.

A reading above the 50% level points to expansion and below the level suggests contraction in the economy.

/...

Not good...

[Ghost Dog]

24. Tokyo stocks fall after oil prices slide

http://www.ft.com/cms/s/72907bb6-a124-11db-8cc9-0000779e2340.html

The Japanese stock market pared moderate early gains to end down on the day Thursday.

Some analysts blamed the decline on a fall in oil prices. Lower oil prices should in theory boost the Tokyo market since Japan is a massive net oil consumer, but on Thursday analysts suggested hedge funds that had lost money on oil were forced to make sell down Japanese equities to cover those positions.

By the end of the day the Nikkei 225 was 0.6 per cent lower at 16,838.17. The broader Topix fell 0.4 per cent to 1,656.72.

Sectors such as retailing were hit by expectations of a rise in interest rates next week. The sector as a whole dropped 1.2 per cent. Fast Retailing, the mid-market clothing retailer, closed down 1.4 per cent at Y11,110, suffering in the wake of poor December sales figures published earlier this week. Seven & I, which runs convenience outlets, department stores and supermarkets, declined 1.6 per cent to Y3,720.

/..

[54anickel]

43. Geithner Says Dollar Accumulation Will Be Transitory (Update2)

http://www.bloomberg.com/apps/news?pid=20601087&sid=a2hqqK1L.gS8&refer=home

Jan. 11 (Bloomberg) -- Federal Reserve Bank of New York President Timothy Geithner said the pattern of large foreign central bank purchases of dollars that is holding down U.S. interest rates will prove ``transitory.''

``Very substantial official accumulation of dollar reserves'' masks the impact that U.S. budget and trade deficits would otherwise have on interest rates, he said. He urged policy makers to reduce the budget gap and endorsed the restoration of fiscal rules requiring new tax cuts or spending to be offset.

``These forces are almost certainly transitory, but their impact on capital flows, interest rates and asset prices are likely quite important,'' Geithner said in a speech in New York. ``If they are large enough, they have the potential to alter or distort current decisions about investment and consumption in a way that could be detrimental'' to long-term growth, he said.

Ten-year Treasury yields have averaged 4.38 percent since the start of 2002, a period when the budget slid into deficit, down from 5.48 percent in the previous four years of surpluses. Foreign official holdings of Treasuries more than doubled since 2002, to $1.32 trillion in October, Treasury data show.

Geithner, speaking at the Council on Foreign Relations, didn't comment on the outlook for U.S. monetary policy.

more...

[UpInArms]

9. Accountant Pleads Guilty to conspiracy and tax fraud (+ more) in KPMG Shelter Case

http://www.nytimes.com/2007/01/11/business/11shelter.html?ex=1326171600&en=83bfd8c817b60a24&ei=5088&partner=rssnyt&emc=rss

(free registration or try www.bugmenot.com)

A California accountant pleaded guilty yesterday to charges of conspiracy, tax fraud and obstructing a federal investigation, and pledged to help prosecutors as they conduct a widening criminal investigation of questionable tax shelters.

The accountant, Steven Michael Acosta, entered his plea in Federal District Court in Manhattan, becoming the fourth person to do so in the inquiry.

Mr. Acosta, 49, of Pasadena, Calif., is a relatively minor figure in the investigation, which has led to the indictment of 16 former employees of the accounting firm KPMG. The inquiry has also ensnared Deutsche Bank, Germany’s largest bank, and other banks, accounting, law and investment firms.

But his plea may have significant consequences for one of the 16 KPMG defendants, who are scheduled to stand trial in September. That defendant is David Greenberg, a former partner in KPMG’s Los Angeles office.

In his plea before Judge Denny Chin, Mr. Acosta read a statement that provided explicit details about Mr. Greenberg’s role in questionable tax shelters and his close work with Mr. Greenberg.

...more...

I wonder if David Greenberg is related to Maurice "Hank" Greenberg?

[UpInArms]

10. Comverse Technology's Ex-Counsel to Settle Suit

http://www.nytimes.com/2007/01/11/business/11comverse.html?ex=1326171600&en=ab59c4305df57f18&ei=5088&partner=rssnyt&emc=rss

Comverse Technology’s former general counsel, William F. Sorin, will pay $3.1 million to settle Securities and Exchange Commission accusations he conspired with the company’s former chief executive, Jacob Alexander, to backdate stock options.

Mr. Sorin will forfeit $1.7 million in profit, plus $818,000 in interest, and will pay a $600,000 fine, according to an agreement filed yesterday in Federal District Court in Brooklyn. He played a “critical role” in backdating options at Comverse, the world’s biggest maker of voice-mail software, the S.E.C. said.

The fine is the S.E.C.’s first against a corporate lawyer for options backdating in a sweeping investigation of business practices.

...more...

[UpInArms]

12. US trade deficit with China reaches record $214bn

http://news.yahoo.com/s/ft/20070110/bs_ft/fto011020070938390275

The US trade deficit with China has reached an all-time high, according to figures published on Wednesday, which will fuel calls in Washington for Beijing to revalue its currency.

The politically-sensitive trade gap with China reached $214bn in November, shattering the 2005 annual record of $202bn and putting the total on track to exceed $230bn.

The overall US international trade deficit in November narrowed to $58.2bn from $58.8bn, as strong demand from America's trading partners pushed exports to a record.

The rise in exports is likely to bolster US economic growth for the fourth quarter, but the widening trade gap with China will increase the domestic political pressure on Hank Paulson, US Treasury secretary, to persuade Beijing to allow its currency to appreciate.

Mr Paulson, a former head of Goldman Sachs, has initiated a strategic economic dialogue with China aimed at persuading Beijing to embrace further financial reforms.

...more...

If Congress really wanted to do something about the trade deficit with China, they would close the doors of every Squal-mart in this country. :eyes:

[texpatriot2004]

13. K & R nm

[Ghost Dog]

21. Carlyle applies for proposed buyout of Taiwan ASE

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070111:MTFH66232_2007-01-11_09-59-04_TP235493&type=comktNews&rpc=44

TAIPEI, Jan 11 (Reuters) - U.S. firm Carlyle has filed an application with Taiwan's government to set up a new company, which then will buy microchip packaging firm, ASE (2311.TW: Quote, Profile , Research) (ASX.N: Quote, Profile , Research), a government official said on Thursday.

In late November, a private equity consortium led by the Carlyle Group made a $5.5 billion bid for Advanced Semiconductor Engineering Inc. (ASE), joining the march of global buyout houses to look to the island for value.

/...

[Ghost Dog]

26. Africa: UN Predicts Deceleration of World Economy

http://allafrica.com/stories/200701110469.html

The United Nations (UN) has predicted a deceleration of the world economy this year after three straight years of growth with American economy weakening dragged down by a softening United States housing market.

The World Economic Situation and Prospects 2007 report forecasts world economic growth to slow down to 3.2 percent this year, from the record high of 4 percent in 2005 and an estimated 3.8 percent last year.

But the growth will remain robust with slight moderation in developing states and economies in transition, the report states.

It further notes that among developing nations, sustained high growth in India and China has engendered more internal growth through increasing south-south trade and financial linkages.

Stating that the American economy will be a major drag for the global slowdown, the report, released Wednesday, maintained that no other developed economy is expected to emerge as an alternative engine for the world economy with growth rate in Europe forecast to slow down to 2 percent and in Japan below 2 percent.

The report holds out the possibility of much stronger slowdown in American economy, leading to sustained risks.

These include dollar losing its value too fast or inability of the US to draw outside investments.

The report expresses concern over widening current account imbalance across the regions and countries.

/..

[Ghost Dog]

27. The Plan for Economic Strangulation of Iran

http://www.payvand.com/news/07/jan/1127.html

It is said that there is more than one way to skin a cat. It seems that United States is trying to skin this cat –Iran- in anyway that it can, including economic strangulation. While people are concerned with Iraq and the gathering armada in the Persian Gulf, United States has been quietly carrying out a not so covert economic war against Iran.

/read on...

[54anickel]

31. After last night's speech I don't believe it's limited to economic war. That

was one of the scariest pontifications to come out of the DimSon's mouth in quite a while. :scared:

[Ghost Dog]

33. Yup (unless you get him into a straitjacket first (and the BLiar also))

... Although the Israeli Military-Government-Espionage Establishment lobby cannot possibly be in the wrong, of course. :-(

Oops: possible insufficient self-censorship. Om.

[54anickel]

45. Here we go? - US forces raid Iran official office in Iraq

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2683767#2684529

[54anickel]

28. 11:42 and Ca-ching!!!!

Dow 12,530.60 88.44 (0.71%)
Nasdaq 2,487.18 27.85 (1.13%)
S&P 500 1,425.90 11.05 (0.78%)
10-yr Bond 4.7160% 0.0340
30-yr Bond 4.80% 0.03
NYSE Volume 1,105,173,000
Nasdaq Volume 950,232,000

11:30 am : Stocks continue to hit fresh session highs as investors rally around easing concerns about the pace of profit growth now that the Q4 earnings season is underway. The Dow is now 19 points above its all-time closing high of 12510.57 (Dec. 27, 2006) while the Nasdaq, which is now up more than 1.0% to lead the majors, is at a new six-year high. Of the 147 S&P industry groups, 140 of them posting gains further underscores the broad-based nature of today's buying efforts. DJ30 +87.50 NASDAQ +29.17 SP500 +11.51 NASDAQ Dec/Adv/Vol 734/2090/826 mln NYSE Dec/Adv/Vol 594/2483/516 mln

11:00 am : The major averages continue to strengthen as buying remains widespread across most areas. Energy still paces the way higher and is now up nearly 2.0%, getting a boost from a recent turnaround in crude. A sense the sector has been oversold of late is also renewing enthusiasm in everything from Refiners (+3.1%), today's best performing S&P industry group, to Drillers (+3.0%) and Explorers (+2.1%). Other areas that have been beaten down in 2007, like Homebuilding, Fertilizers & Chemicals, and Gold, are also among today's best performers.DJ30 +68.33 NASDAQ +20.24 SP500 +9.31 NASDAQ Dec/Adv/Vol 808/1934/626 mln NYSE Dec/Adv/Vol 684/2313/430 mln

10:30 am : Onward and upward remains a driving mantra this morning as buyers are still in complete control of the action. With investors preoccupied with the pace of economic growth, initial claims falling a larger than expected 26,000 to 299,000, the lowest level since late July, suggest there is no indication of any weakening in the labor market. Further underscoring the market's bullish bias has been the ability by the Dow, S&P 500 and Nasdaq to break through key resistance levels near 12475, 1418 and 2470, respectively. DJ30 +54.71 NASDAQ +17.33 SP500 +7.34 NASDAQ Dec/Adv/Vol 723/1945/440 mln NYSE Dec/Adv/Vol 591/2348/258 mln

10:00 am : The indices extend their reach to the upside as nine out of 10 sectors are now trading higher. Despite another decline in oil prices, the Energy sector (+1.1%) is leading the charge. With the potential of negative guidance prompting extensive consolidation in the sector, bargain hunters spurred in part by analyst upgrades on refiners Valero Energy (VLO 48.79 +0.58) and Sunoco (SUN 57.94 +0.82) have stepping back into the beaten down sector.

Not surprisingly, though, continued upward momentum in Tech is providing the bulk of early support. As evidenced by Internet Software & Services (+1.7%) turning in this morning's best performance, Google (GOOG 498.37 +8.91) is up nearly 2% after Goldman Sachs raised their Q4 EPS and revenue forecasts on the stock. Follow-through in the semiconductor space, as Intel (INTC 21.94 +0.42) tacks a 2.0% gain onto yesterday's 2.3% surge, is providing additional sector support. Intel is a recommended holding in the Briefing.com Active Portfolio. DJ30 +40.13 NASDAQ +13.45 SOX +0.8% SP500 +5.87 XOI +1.0% NASDAQ Dec/Adv/Vol 656/1766/204 mln NYSE Dec/Adv/Vol 744/1342/90 mln

09:40 am : Stocks open with little fanfare but are currently holding a slightly positive bias. Albeit not an S&P 500 constituent, Genentech (DNA 85.90 +2.17) is doing its part to grow quarterly profits at a double-digit rate and lend some optimism on the earnings front. The biotech giant topped estimates as Q4 earnings surged 75% year/year.

After plunging to its lowest level in more than two years, crude for February delivery down for a fourth straight day ($53.71/bbl) is also providing some relief regarding overall inflation. Earlier, the Bank of England unexpectedly raised its benchmark interest rate by 25 bps to 5.25%, citing wage-based inflation as a big concern, which serves as a reminder that central bankers in the U.S. are also closely watching labor cost trends. DJ30 +16.21 NASDAQ +9.86 SP500 +3.04 NASDAQ Vol 90 mln NYSE Vol 52 mln

09:00 am : S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: -0.5. Still shaping up for the cash market to open in lackluster fashion as both the S&P 500 and Nasdaq 100 futures trade close to fair value. It appears as though Apple (AAPL) will again keep the tech sector in focus, only this time around headlines carry a more negative slant. The stock is down 1% in pre-market action after Cisco Systems (CSCO) said it's suing Apple in a trademark dispute over its new iPhone.

08:33 am : S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: -0.5. Futures trade has weakened since the last update and now suggest a lower start for stocks, as investors who are cognizant the Fed is also watching labor cost trends in the U.S. closely continue to grapple with an unexpected rate hike from the Bank of England due in part to curb wage-based inflation. Meanwhile, investors are sifting through today's only scheduled economic report. Initial claims fell 26K to 299K (consensus 320K), suggesting labor conditions remain strong. However, bonds selling off on the news has lifted the yield on the 10-year note (-10/32) to its highest level this year (4.72%), which is likely to add pressure to rate-sensitve Financials.

08:00 am : S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +3.0. Early indications point to a slightly higher start for equities. Genentech (DNA) topped Wall Street estimates and raised its guidance while oil prices plunging another 1%, after falling as low as $52.94/bbl (-2.%) overnight, are also contributing to the positive disposition. It is worth noting, however, that the ongoing slide in crude still isn't being fully embraced by the market as the bullish catalyst that it is since falling oil prices also threaten the earnings potential of the Energy sector. Energy has been the biggest reason over the last several quarters behind the S&P 500's ability to generate double-digit profit growth.

06:17 am : S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +1.8.

06:17 am : FTSE...6186.30...+25.60...+0.4%. DAX...6605.04...+38.48...+0.6%.

06:17 am : Nikkei...16838.17...-104.23...-0.6%. Hang Seng...19385.37...-182.97...-0.9%.

[Roland99]

39. Wonder how those defense stocks are doing? Guess the markets love WAR

[54anickel]

35. Had to post this - The latest from the BMBM (Clive Maund), since he

came up in the Wrap up earlier this week. Again his short-sighted, chartist tunnel-vision has him doing another about face, and loosing money. :eyes: Nothing against charts, they're great tools but can't be viewed in a vacuum.

http://www.321gold.com/editorials/maund/maund011007.html

snip>

Alright, bearing in mind the stance we had taken just a few days back, what are the tactics for dealing with this situation? Those who have not taken action and shorted the market should not now do so. Those who have, have the choice of either covering the positions immediately, which is highly recommended at the current favorable prices. Bearing in mind dealing costs, this would probably involve getting out at a slight loss. The alternative is to wait for the probable big up day that would signal a reversal, which could be costly, but which of course might happen after further downside first.

[54anickel]

36. Hugo Chavez, The Investor’s Friend

http://kwrintl.com/library/2007/HugoChavezTheInvestorsFriend.htm

PERU (KWR) -– January 9, 2007 -- When Hugo Chavez made his speech to welcome his new cabinet on 8th January, not much was reported to the citizens of industrialized countries. The only news that reached most news wires was that he was about the nationalize the Venezuelan telephone company CANTV (NYSE ticker:VNT) along with the electricity suppliers. The ensuing sell-off, starting just over an hour before the close of the New York Stock Exchange, took 15% off the market price of VNT in minutes on high volumes before the stock was halted. The next day, VNT dropped as low as $9.46 when cleared for trading, and finished the day down 27.5% at $12.20.

All this doesn’t sound very investor-friendly, thus the title chosen for this article seems a little strange at first glance. But once the polemic, rhetoric, disinformation and plain simple lies told by both business reporters and by Venezuela’s president are stripped away, it becomes obvious to the level-headed investor that Chavez and his detractors provide some gilt-edged opportunities to make profits in the stock market.

snip>

Headlines on Tuesday were of the robber–baron type. Most commentators assumed that by nationalization, Chavez was simply going to expropriate the assets of VNT and presumably surround its head office with armed soldiers so that the capitalist pig board members couldn’t get to their desks anymore. This, however, is not likely, and allows us to see the opportunity given to the investor that doesn’t swallow the hype surrounding the issue. Any nationalization of VNT would almost certainly involve compensation to the existing investors. Chavez has more than enough money to buy back VNT thanks to the enormous oil revenues currently swelling the state coffers. The argument for expropriation is flimsy to say the very least. Expropriation of assets would certainly cause retaliation from injured parties, and Venezuela has far too much international exposure to imagine itself as living in a socialist vacuum. At the present time, it is not in Chavez’s interests to block sales of oil to the US, which consumes 60% of Venezuelan production. It is also worth remembering that 28% of VNT stock is held by Venezuelan citizens and it is highly doubtful that Chavez would leave them holding worthless share certificates. The stock is popular amongst Venezuelans, as it is considered as somewhat a “jewel in the crown” of local shares having risen by close to 100% in the past year. It also has a good reputation for paying juicy dividends (U$1.01 on 4th December 2006) and allowing locals to invest in dollars, thus avoiding the high inflation rates suffered by the national Bolivar currency.

Chavez has been made out as a crackpot, a fool and a dictator by the western news services. We believe that this picture is biased largely by political interests and does not take into account the reality, particularly the financial reality, behind this undoubtedly controversial figure. He aims his public speeches towards his party faithful, and rhetoric of the sort seen on Monday is hardly new to dedicated Chavez-watchers. However, his “social revolution” has not turned its back on the ways of 21st century business, and his pragmatic side comes forward when doing deals with capital-driven states and companies. He drove a hard bargain with oil companies, but evidence suggests it has been a win-win situation, as the oil companies are still happy to do business inside Venezuela. The huge revenues accrued by the Venezuelan state is attractive to all arms of the banking world, and anecdotal reports from Caracas say there has never been a better time to set up financial shop in the capital. Chavez is no fool; nobody who gets re-elected in Latin America can be called naive about the ways of the real world.

Potential investors should ask themselves a couple of simple business questions. Does Chavez want to sever relations with Spain? With the USA? Does he want to throw away his market for oil and cut revenues by half? His well-publicized “Bolivarian revolution” will go forward, but there is little chance of him simply stealing property from the rest of the world. Why antagonize his own clientele? The bluff and bombast from the speech podium is certainly not aimed at the business world and should be taken with a large pinch of salt when cold, hard cash is the issue.

more...

[54anickel]

37. Cracks in the financial system ( I LIKE this one)

http://www.dailyreckoning.co.uk/article/100120072.html

snip>

Let us examine the differences between the "real
economy" and the "asset inflation economy" more closely.
The real economy is typical of people's daily lives,
their income, and their spending. If there is a boom in
the real economy, wages and prices will tend to increase
and the increased demand will be met by corporations'
increased capital spending. The overheated economy
eventually brings about a slowdown or a recession,
because money becomes tight irrespective of the central
bank's monetary policies. The recession then cleans up
the system and allows the next expansion to get under
way. Put very simplistically, this is the typical
business cycle.

In the asset inflation economy, we are dealing with a
totally different phenomenon. The higher the asset
markets move, the more the increased asset prices can
create liquidity. Let us assume an investor owns a real
estate or stock portfolio worth 100 and that his
borrowings are 50. For whatever reason (usually easy
monetary conditions), the value of the portfolio now
doubles to 200. Obviously, this allows the investor, if
he wants to maintain his leverage at 50% of the asset
value, to double his borrowings to 100. With the
additional 50 in buying power, the investor can then
either spend the money for consumption (as the US
consumer has done in the last few years) or acquire more
assets.

If he acquires more assets, the investor will drive the
asset markets - ceteris paribus - even higher, which
will allow him to increase his borrowings further. Now,
I am aware of some economists who will dispute the fact
that rising asset markets create liquidity. They argue
that the seller of a portfolio or real estate or stocks
at an inflated price will have to be met by a buyer at
the inflated price. So, the increased liquidity of the
seller is offset by a diminished liquidity of the buyer.

However, the situation isn't quite that simple......

snip>

There is one more point to consider. Liquidity isn't
evenly distributed. Let's say that on an island there
are two tribes. Ninety-nine percent of the population
are the "Bushes" and 1% are the "Smartos". The two
tribes arrived on the island at about the same time and
had little capital at the time. So, initially, both
tribes worked very hard in industry and in commerce to
acquire wealth. But because of the Smartos' superior
education and skills, their frugality, and also partly
because of their greed and immorality, they soon
acquired significantly more wealth than the Bushes, who,
for the most part, were likeable but quite inept. After
50 years, most of the island's businesses were therefore
in the hands of the Smartos, who make up just 1% of the
population. Being clever, the Smartos generously gave
some of their wealth to the tribal leaders of the
Bushes, who controlled the entire government apparatus,
the military establishment, and much of the land.

For a while this system functioned perfectly well. Among
the Bushes there were also some smart people, and they
were encouraged to accumulate wealth as well. However,
they had to pay an increasingly high price to acquire
assets, since most of the island's assets were owned by
the Smartos and by the elite of the Bushes who, because
of their wealth, never really had to sell any assets.
Cracks in the system began to appear because more and
more of the wealth began to be increasingly concentrated
in fewer and fewer hands. (According to the Financial
Times, the concentration of wealth is extremely high in
the United States, with 10% of the population currently
holding 70% of the country's wealth, compared to 61% in
France, 56% in the UK, 44% in Germany, and 39% in
Japan.)

However, the Smartos then stumbled upon another avenue
to wealth: globalization. .....

more...

[54anickel]

38. Online bullion dealer, brokerage will help you salt RRSPs with gold

http://www.theglobeandmail.com/servlet/story/LAC.20070110.RGOLD10/TPStory/?query=kitco

An online bullion dealer and an online brokerage want Canadian investors to go for the gold this RRSP season.

With the Royal Canadian Mint in a supporting role, Kitco.com of Montreal and Questrade Inc. of Toronto are poised to launch what they say is the first product to take advantage of a measure in the federal budget of 2005 allowing investors to start buying actual precious metals -- in the form of gold or silver coins, bars, wafers and so on -- inside their registered retirement savings plans.

Until the budgetary change, punters who wanted some exposure to these metals in their RRSPs were pretty much limited to such indirect solutions as holding mining company shares.

But, beginning next Monday, they will be able to go on to Questrade's website, set up an RRSP account through which to buy gold provided by Kitco but refined by the mint to the 99.5-per-cent purity required by the Canada Revenue Agency. Yellow metal bought under the new program will also be stored in the mint's vaults in Ottawa in an account under Questrade's name.

snip>

Mr. Kholodenko said he believes demand for the new RRSP product is going to be "robust," particularly given the recent weakness of the Canadian dollar. "People may see some refuge in gold."

The Kitco-Questrade product is entirely separate from one in which the mint has been researching the possible launch of an RRSP-eligible, precious metals investment vehicle of its own.

more...

[54anickel]

40. Not So Benign Conspiracies (from last month, but a good read)

http://mensnewsdaily.com/2006/12/18/not-so-benign-conspiracies/

snip>

Bloomberg columnist Chet Currier thinks equities are getting a boost from the lack of appealing alternatives - a tongue-in-cheek “benign conspiracy” of sorts. In his piece, entitled “Costly Bonds, Real Estate Make Stocks Look Good,” Currier observes:

“Yields on government bonds are just plain miserly. Ditto for corporate bonds all up and down the quality scale… Yields offered by money market mutual funds and similar short-term vehicles have flattened since the Federal Reserve stopped increasing its target rate… the housing market is undergoing a much-discussed shakeout in many parts of the country.”

Currier goes on to note the “sloshing sea of cash” that is desperate to earn a return, forcing investors to bid up everything in sight.

Meanwhile, private equity players are busy privatizing everything in sight. Raymond James strategist Jeff Saut reports, “Almost 2% of the NYSE’s entire market capitalization has been taken private… since the beginning of this year.”

Meanwhile Ben Bernanke, the warm and fuzzy Fed chair, continues to blame the “global savings glut” for this foamy tide that has lifted all boats.

snip>

This is certainly the best choice from a short-term utilitarian perspective: It maximizes the distribution of happiness for an extended period of time. Look at it from Gentle Ben’s point of view, and backdoor reflation is the way to go. Your friends are happy… Wall Street is happy… the president is happy… trading partners looking a bit peaked, but are happy nonetheless… no one gets left out except those cussed Austrian types. (And there’s no satisfying them anyway, right?)

High-quality person that he is, Bernanke has chosen to be a stand-up guy and keep the taps flowing for his friends. As I type these words, and as you read them, “cash” is being turned into “trash” at a steady pace. The smart money is buying with abandon because it knows the paper bits floating around today will be worth less than the paper bits floating around tomorrow.

How long can this go on? No one really knows. It’s sort of like a game of musical chairs. As long as a veneer of psychological stability is maintained - i.e., as long as cash doesn’t become trash too quickly - we could continue to see an upward trend in nominal values, even as real values stall out, or even decline.

more...

[54anickel]

41. FDA Eyes Drug Tests Done by Canadian Lab

http://www.cbsnews.com/stories/2007/01/11/ap/health/mainD8MIR73O0.shtml

AP) Health officials said Wednesday that inspections revealed serious concerns about drug testing done by a Canadian company that underpinned the applications of potentially hundreds of medicines pending federal approval or already on the market.

The concerns could compel some drug companies to either confirm or repeat certain tests their products underwent required to win federal approval, Food and Drug Administration officials said. While the work won't result in the removal of any drugs from the market, it could slow the approval of some drugs awaiting federal clearance.

The FDA stressed it has no evidence of problems with the quality, purity or potency of the affected drugs. Still, the agency is sending more than 1,000 letters to drug companies asking them to reevaluate the results of tests performed by MDS Pharma Services between 2000 and 2004 and included in their applications to the agency. Companies have six months to comply.

Ultimately, the request likely will affect only a small percentage of the drug applications submitted since 2000, FDA officials said.

snip>

Agency officials have identified all 217 generic drugs that either have won or are seeking federal approval and that included MDS Pharma studies in their applications. For brand-name drugs, FDA isn't as sure which companies relied on testing done by MDS Pharma Services. As a result, it is notifying all brand-name drug makers that submitted the more than 900 applications received since 2000 to comb through their files to find out.

The FDA declined to identify the drug companies known to have contracted with MDS for testing.

more...

[54anickel]

42. Goldilocks vs. a few bears

Those who point out that housing is down, retail sales are rocky and the market is shaky are only stating facts. The real question is why so many experts are so optimistic.

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/GoldilocksVsAFewBears.aspx

I'm sure many readers of this column assume that I enjoy being the bearer of bad news. Let me assure you, that is not the case. However, with Bubblevision and most major media outlets spewing nothing but happy endings, I feel it's important for folks to understand that all roads do not lead to nirvana.

In fact, the Goldilocks scenario that most bulls are relying on is an extraordinarily low-probability event; the high-probability event being that the economy is slipping into recession and will face the attendant consequences.

Take a step back. In the summer of 2005, I suggested that the housing boom was finished. At the time, that observation was ridiculed. But in fact, it was reasonably accurate. The reason I bring that up is because anyone with a pulse ought to know that the housing mania (which created the "housing ATM") is what powered the economy for the past couple of years.

That mania ended a year and a half ago, and noticeable problems have arisen in the forms of inventory and prices that no longer go up like clockwork. It's the reason I have been expecting the economic weakness I've discussed in my column.

more...

[54anickel]

44. 2:37 update

Dow 12,522.91 80.75 (0.65%)
Nasdaq 2,481.33 22.00 (0.89%)
S&P 500 1,424.07 9.22 (0.65%)
10-yr Bond 4.7410% 0.0590
30-yr Bond 4.83% 0.06
NYSE Volume 2,080,690,000
Nasdaq Volume 1,727,559,000

2:30 pm : With oil prices still plunging going into the close of trading on the NYMEX, another reversal in the Energy sector (-0.7%) removing notable leadership is acting as a bit of an offset to the positive ramifications of lower energy prices. Crude for February delivery, which recently broke through $52/bbl, is on pace to close down nearly 4%.

Another rally in Tech, however, combined with leadership from other influential areas like an Health Care, Industrials and even Financials in the face of a sell-off in Treasuries, continue to provide a floor of buying support. DJ30 +69.96 NASDAQ +17.82 SP500 +7.28 NASDAQ Dec/Adv/Vol 1151/1831/1.65 bln NYSE Dec/Adv/Vol 952/2280/1.08 bln

1:55 pm : The market continues to hold on to the bulk of today's gains as selling interest has been limited. Although the energy sector (+0.13%) ran into negative territory at the bottom of the hour, it has since recovered a bit to join the remaining nine sectors in positive territory.

From a market-cap standpoint, leadership areas include large-cap technology issues and mid-cap stocks. The A/D line, however, indicates that there is broad-based participation in today's gains that have ben aided by an ample contribution from blue chip components. DJ30 +83.71 NASDAQ +23.30 NQ100 +1.02% SP400 +1.03% SP500 +9.45 NASDAQ Dec/Adv/Vol 993/1966/1.48 bln NYSE Dec/Adv/Vol 851/2364/968 mln

1:30 pm : The major indices have backed up from their best levels of the session, but remain comfortably above the unchanged mark. The same can't be said for oil prices, which have surrendered early gains and are now trading noticeably lower in the wake of reports that demand for fuel hit its lowest level in more than two years last week.

February crude futures are currently down $1.78 at $52.24 per barrel while crude for March delivery has dropped $1.76 to $53.20. The reversal of fortune has knocked the wind out of the energy sector (-0.16%), which is now acting as a drag on the broader market after providing early support. Conversely, the transport stocks, and particularly the airlines, are getting a boost from the drop in oil prices.

AMR Corp. (AMR 37.38, +1.38), which is a suggested holding in the Briefing.com Active Portfolio, is up 3.8%.DJ30 +77.06 NASDAQ +23.14 SP500 +9.20 NASDAQ Dec/Adv/Vol 924/2021/1.38 bln NYSE Dec/Adv/Vol 751/2455/880 mln

1:00 pm : The indices are holding steady at sharply higher levels. Oil prices reversing course less than an hour ago, without sacrificing too much in the way of upside leadership from the Energy sector (+0.8%), continue to be a driving factor behind today's positive underlying tone. Separately, it has been reported that Boston Fed President Cathy Minehan, who is a voting Fed official this year, is retiring. Neither stocks nor bonds, however, are reacting to the news. DJ30 +92.16 NASDAQ +28.11 SP500 +11.06 NASDAQ Dec/Adv/Vol 868/2040/1.24 bln NYSE Dec/Adv/Vol 713/2464/796 mln

12:30 pm : Stocks are showing no signs of slowing heading into the afternoon session. The Dow is now nearly 30 points above its record closing high and, as evidenced by the Nasdaq turning in an even better intraday performance, it's not surprising to see that some of the best performers on the blue-chip index are in fact tech names. Intel (INTC 21.94 +0.42) leads the charge from a percentage basis (+2.0%) while Microsoft (MSFT 30.20 +0.54) ranks a close second as its 1.8% advance inches shares close to a new 52-week high. Other Dow components up at least 1.0% include DD, GM, HON, MMM, MO, UTX and XOM.DJ30 +98.13 NASDAQ +28.25 SP500 +11.75 NASDAQ Dec/Adv/Vol 830/2066/1.14 bln NYSE Dec/Adv/Vol 683/2465/722 mln

12:00 pm : The market is holding on to the bulk of its solid gains midday amid renewed optimism on both the earnings and economic fronts.

With investors preoccupied with the pace of economic growth, initial claims falling a larger than expected 26,000 to 299,000, the lowest level since late July, suggests there is no indication of any weakening in the labor market. That news, coupled with the Bank of England unexpectedly raising its benchmark interest rate by 25 basis points to 5.25%, has prompted further consolidation in Treasuries since interest-rate futures now all but abandon any hopes of a Fed rate cut in early 2007. However, the ability of the rate-sensitive Financials sector to temporarily look past higher borrowing costs and an inverted yield curve further underscores today's bullish bias.

From an earnings standpoint, Genentech (DNA 87.44 +3.70) is doing its part to grow quarterly profits at a double-digit rate and lend some reassurance. Albeit not an S&P 500 constituent, the biotech giant topping estimates, as Q4 earnings surged 75% year/year, and raising its FY07 outlook plays into our Overweight rating on Health Care (+0.8%).

Meanwhile, some stabilization in the commodities markets, which have been in a freefall since the New Year began, is also lending some market support. With oil prices down 11% so far this year, increasing the likelihood of negative guidance throughout the profit engine that is Energy, a sense the sector has been oversold of late has renewed interest in everything from Explorers and Refiners to Drillers and Integrated Oil. The sector has also gotten a boost from analyst upgrades on Valero Energy (VLO 49.46 +1.25) and Sunoco (SUN 58.69 +1.57) have stepping back into the beaten down sector.

Further echoing the enthusiasm to pick up bargains, investors remain fixated on owning last year's worst performing Dow component. Intel (INTC 21.90 +0.38), which is a recommended holding in the Briefing.com Active Portfolio and this year's best Dow performer (+8.0%), is building on yesterday's 2.3% gain to the tune of a 1.8% advance. Providing an even bigger boost to Tech and underpinning our Overweight rating on the influential sector, though, is Google (GOOG 499.46 +10.00). The stock is up 2.0% after Goldman Sachs raised its Q4 EPS and revenue forecasts on the tech bellwether. Cisco Systems (CSCO 28.98 +0.30), another suggested holding, said it's suing Apple (AAPL 96.10 -0.90) in a trademark dispute over their new iPhone.BTK +1.0% DJ30 +82.92 DJTA +0.9% DJUA +0.3% DOT +1.2% NASDAQ +27.37 NQ100 +1.0% R2K +1.4% SOX +0.7% SP400 +1.2% SP500 +10.59 XOI +1.3% NASDAQ Dec/Adv/Vol 797/2093/990 mln NYSE Dec/Adv/Vol 647/2474/632 mln

[citizen snips]

46. Stocks Rise Despite Further Drop in Oil

NEW YORK (AP) -- Stocks rose sharply Thursday after a oil prices extended their decline and a drop in jobless claims to a six-month low indicated the economy wasn't slowing too quickly.

The sizable gains in stocks Thursday signaled that investors had, for the time, regained the swagger seen in the second half of last year. In recent sessions, they made small bets as they wrestled with whether stocks would eventually push higher with the same vigor as in 2006. Economic data, such as Thursday's unemployment figures, and oil prices, which have fallen for four straight days, have drawn the market's attention as investors try to piece together where Wall Street is headed.

Strength in employment indicates the economy is holding up well as it slows. However, investors want the economy to give off some signs of gradual slowdown in order to wring a cut in interest rates from the Federal Reserve.

"The markets had a very strong run in the fourth quarter and we have spent the first week and a half consolidating those gains," said Steven Goldman, chief market strategist at Weeden & Co. He contends stocks remain "in a pretty good period," as with 2006.

more...
http://biz.yahoo.com/ap/070111/wall_street.html?.v=34

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47. Cisco Sues Apple Over Use of iPhone Name

SAN FRANCISCO (AP) -- Apple Inc.'s much-ballyhooed iPhone was unveiled this week after 30 months and millions of dollars in top-secret development. But the sleek new iPod-cell phone combination could wind up costing the company a lot more.

Cisco Systems Inc., the world's largest networking equipment maker, sued Apple in U.S. District Court here Wednesday, claiming that Apple's iPhone violates its trademark.

Cisco is asking the court to forbid Apple from using the name "iPhone," which Cisco has held a trademark on since 2000 and used to brand a line of its own Internet-enabled phones that began shipping last spring and officially launched three weeks ago.

Shares of Apple fell $1.49, or 1.5 percent, to $95.51 in Thursday morning trading on the Nasdaq Stock Market, while Cisco stock gained 17 cents, to $28.85, on the same exchange.

more...
http://biz.yahoo.com/ap/070111/cisco_apple.html?.v=9

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48. Conoco Reserves Disappoint Analysts

HOUSTON (AP) -- The ConocoPhillips announcement that it added three times as much oil and gas to its reserves as it produced last year did little to impress Wall Street analysts, largely because the gains occurred through acquisitions.

At least three major brokerage houses -- A.G. Edwards, Deutsche Bank and Citigroup -- said Thursday they were disappointed with ConocoPhillips' 2006 reserves replacement figures, released by the oil company after Wednesday's closing bell.

ConocoPhillips shares were off $1.95, or 3 percent, at $62.58 in afternoon trading on the New York Stock Exchange. The shares have traded in a range of $54.90 to $74.89 in the past year.

ConocoPhillips said Wednesday it likely ended 2006 with the equivalent of 11.1 billion barrels of oil in proved reserves, a key asset for the company. That's up from 9.4 billion barrels in 2005, but the growth was largely tied to ConocoPhillips' $35.6 billion purchase of Burlington Resources Inc., completed last spring, and its increased stake in Russian oil producer OAO Lukoil.

more...
http://biz.yahoo.com/ap/070111/conocophillips_reserves.html?.v=1

[citizen snips]

49. State Farm Held Liable in Katrina Case

GULFPORT, Miss. (AP) -- A federal judge ruled against an insurance company Thursday in a Hurricane Katrina damage case that could give a boost to hundreds of other homeowner lawsuits against insurers for refusing to cover billions of dollars in storm damage.

U.S. District Judge L.T. Senter Jr. ruled that State Farm Fire & Casualty Co. is liable for $223,292 in damage caused by Hurricane Katrina to a Biloxi couple's home, but left it to a jury to decide whether to award millions of dollars more in punitive damages.

The verdict appeared to surprise everyone in the courtroom. After his directed verdict on the property claim, Senter order a recess, saying it would give attorneys time to get over the shock.

The jury began deliberating the punitive damages Thursday afternoon.

more...
http://biz.yahoo.com/ap/070111/katrina_insurance.html?.v=7

[citizen snips]

50. Siemens Ex-CFO Probed for Corruption

MUNICH, Germany (AP) -- Prosecutors said Thursday they are investigating Siemens AG's former chief financial officer, Heinz-Joachim Neubuerger, amid a probe into alleged corruption at the telecom equipment maker.

Neubuerger, 54, was questioned on Tuesday, Munich state prosecutor Christian Schmidt-Sommerfeld said. He confirmed reports in the Sueddeutsche Zeitung newspaper and the Spiegel news magazine, but declined to comment further.

The reports said that Neubuerger, who left Siemens in April 2006, denies that he knew of secret Siemens funds in foreign banks and helped conceal dubious payments.

Neubuerger could not immediately be reached for comment Thursday.

more...
http://biz.yahoo.com/ap/070111/germany_siemens_investigation.html?.v=2

[citizen snips]

51. ConocoPhillips Shares Down on Reserves

NEW YORK (AP) -- Shares of petroleum company ConocoPhillips fell Thursday in heavy trading, a day after the company reported annual production and added reserves.

ConocoPhillips shares lost $1.80, or 2.8 percent, to $62.74 in afternoon New York Stock Exchange trading. Volume was more than double that of an average trading day.

The Houston-based company said Wednesday it produced about 880 million barrels of oil equivalent in 2006 and added about 2.6 billion barrels of reserves.

A.G. Edwards analyst Bruce Lanni said most of the new reserves came from acquisitions and joint ventures.

more...
http://biz.yahoo.com/ap/070111/conocophillips_mover.html?.v=1

[citizen snips]

53. Level 3 Shares Up on Upbeat Analyst Note

NEW YORK (AP) -- Shares of Level 3 Communications Inc. surged close to a three-year high on Thursday, after Credit Suisse began coverage of the Internet connection provider with an "Outperform" rating.

Analyst Christopher M. Larsen said in a note to investors the company will continue to see strong growth driven by higher data usage as demand for bandwidth increases with the popularity of video on the Web.

"The company has built one of the most technologically advanced networks, allowing it to offer services at a lower cost than many of its competitors," Larsen said.

Level 3 provides communications and information services over its broadband fiber optic network. Its customers range from telecom carriers to broadband cable TV operators as well as Internet and wireless service providers.

more...
http://biz.yahoo.com/ap/070111/level_3_mover.html?.v=1

[citizen snips]

54. Expeditors Intl Rises on BB&T Upgrade

NEW YORK (AP) -- Shares of Expeditors International of Washington Inc. moved higher Thursday after an analyst at BB&T Capital Markets upgraded the stock, saying a recent sell-off in the freight forwarder's shares presents a rare buying opportunity.

Shares of Expeditors International advanced $1.26, or 3 percent, to $42.82 in afternoon trading on the Nasdaq -- having earlier trading as high as $43.72. The stock has ranged between $32.83 and $58.32 over the past year.

BB&T analyst John Barnes III upgraded Expeditors to "Buy" from "Neutral" and initiated a $50 price target, saying the stock has lost nearly 15 percent of its value since Oct. 30, presenting a rare buying opportunity for investors.

Barnes blamed the stock's recent headwind on Wall Street's concerns over decelerating growth rates, a failure by the company to deliver earnings upside in the third quarter and general economic conditions.

"These concern are all valid," Barnes wrote in a note to clients. "Still, we would

more...
http://biz.yahoo.com/ap/070111/expeditors_intl_mover.html?.v=1

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55. Grain, Soybeans Up

CHICAGO (AP) -- Grain and soybean futures ended higher Thursday on the Chicago Board of Trade.

Wheat for March delivery rose 7 cents to $4.56 1/2 a bushel; March corn rose 16 1/4 cents to $3.76 1/2 a bushel; March oats rose 6 3/4 cents to $2.56 3/4 a bushel; March soybeans rose 9 1/2 cents to $6.74 1/4 a bushel.

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

February live cattle fell .35 cent to 93.60 cents a pound; March feeder cattle fell .90 cent to 95.95 cents a pound; February lean hogs fell .05 cent to 60.50 cents a pound; February pork bellies rose .97 cent to 90.87 cents a pound.

more...
http://biz.yahoo.com/ap/070111/board_of_trade.html?.v=4

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57. Nasdaq Leaders & Laggards: ISRG, SNDK

NEW YORK (AP) -- Level 3 Communications Inc. posted the biggest gain on the Nasdaq 100 Thursday, after Credit Suisse initiated coverage on the stock at "Outperform".

The index gained 25.52 to finish at 2484.85.

Level 3 Communications Inc. stock added 45 cents, or 6.3 percent, to close at $6.41. The stock set a new 52-week high of $6.48, eclipsing a previous peak of $6.20.

A Credit Suisse prediction of strong sales of Activision Inc.'s "Guitar Hero" game sent shares up 90 cents, or 5.1 percent, to end at $18.43.

more...
http://biz.yahoo.com/ap/070111/leaders_nasdaq.html?.v=1

[54anickel]

58. Sweeping up and turning out the lights

Dow 12,514.98 72.82 (0.59%)
Nasdaq 2,484.85 25.52 (1.04%)
S&P 500 1,423.82 8.97 (0.63%)
10-yr Bond 4.7370% 0.0550
30-yr Bond 4.82% 0.05
NYSE Volume 2,913,583,000
Nasdaq Volume 2,447,641,000

4:20 pm : The major averages finished in strong fashion Thursday as investors rallied around renewed optimism about the pace of economic growth.

With six months of market gains still predicated on the chances of the Fed engineering a soft landing for the U.S. economy, today's only economic report showing no indication of any weakening in the labor market helped to ease concerns about the health of the consumer.

Weekly jobless claims fell a larger than expected 26,000 to 299,000, the lowest level since late July. Even though the data also serve as a reminder that policy makers remain concerned about the potential inflationary impact of higher wages, which contributed to a surprise rate hike from the Bank of England, more evidence of strong labor conditions proved reassuring.

Just two days into the Q4 earnings season, biotech behemoth Genentech (DNA 87.40 +3.66) topped Wall Street estimates and raised its FY07 outlook, prompting several price target increases. Albeit not an S&P 500 constituent, Genetech's net income surging 75% year/year left investors hopeful that aggregate earnings will grow at a double-digit rate for a 14th straight quarter.

Aside from strength in Health Care, which provided notable leadership for the broader market, continued momentum throughout the Technology sector again provided some influential support. Microsoft (MSFT 30.70 +1.04) soared 3.5% to a new four-year high amid upbeat analyst commentary after Windows Vista was named "Best of CES" at this year's International Consumer Electronics Show.

Also helping the Dow close at a new record high was fellow component Intel (INTC 21.87 +0.35). A recommended holding in the Briefing.com Active Portfolio, last year's worst performing Dow stock is this best performer on the blue-chip index as bargain hunters helped tack on 1.6% to yesterday's 2.3% advance. It is worth noting, though, that SAP AG (SAP 49.03 -5.10) warned late in the day that Q4 sales will be well below expectations. That news sent sent shares tumbling 9.4% and took some steam out of the tech rally.

Oil prices closing lower for a fourth straight day provided the bulls even more ammunition to keep last year's second-half rally intact. Crude for February delivery closed below $52/bbl for the first time in 19 months following reports showing U.S. fuel consumption plunged to the lowest level since April 2004.

Consumer Discretionary was another bright spot as plunging oil prices ahead of a long holiday weekend continued to improve the earnings prospects for retailers. Investors also applauded eBay (EBAY 30.23 +0.93), another suggested holding in our Active Portfolio that surged 3% following its $310 mln bid for StubHub. Industrials also showed relative strength as transportation stocks finally began to take advantage of oil's continued downturn.

Not surprising in the face of the further deterioration in crude prices, the Energy sector disappointed yet again as its earnings potential comes into question with every sharp pullback in oil. However, Exxon Mobil (XOM 70.88 -0.11) barely losing any ground despite a 4% drubbing in crude was noteworthy. The stock opened the session down 7.4% on the year but a sense that the sector has been oversold of late kept the Dow component's decline at a minimum. DJ30 +72.82 NASDAQ +25.52 SP500 +8.97 NASDAQ Dec/Adv/Vol 1035/2008/2.40 bln NYSE Dec/Adv/Vol 973/2321/1.67 bln

3:30 pm : More of the same for stocks as buyers remain an active bunch going into the close. It is worth noting, though, that the indices have recently pulled back following a warning from SAP AG (SAP 51.13 -3.00). Within the last few minutes, SAP warned that Q4 sales will be well below expectations, which has sparked a reversal of more than 1.5% in rival Oracle (ORCL 17.49 -0.28). Fortunately for the bulls, the biggest software company in the world, Microsoft (MSFT 30.45 +0.79), is still up nearly 3% and at a multi-year high, which is more than offsetting the collateral damage to Oracle shares.DJ30 +65.73 NASDAQ +18.04 SP500 +7.46 NASDAQ Dec/Adv/Vol 1052/1980/1.96 bln NYSE Dec/Adv/Vol 927/2337/1.32 bln

3:00 pm : The bears' recent attempts to take some money off the table appears short lived as the major averages have almost as quickly regained their upward momentum. A renewed wave of bargain-hunting interest now leaves the Energy sector relatively unchanged while Technology's intraday advance is back above 1.0%, matching similar performances from Health Care, Consumer Discretionary and Materials. DJ30 +92.35 NASDAQ +26.74 SP500 +10.50 NASDAQ Dec/Adv/Vol 1112/1886/1.78 bln NYSE Dec/Adv/Vol 978/2271/1.19 bln