STOCK MARKET WATCH, Wednesday January 31

[ozymandius]

Wednesday January 31, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 719 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2227 DAYS
WHERE'S OSAMA BIN-LADEN? 1932 DAYS
DAYS SINCE ENRON COLLAPSE = 1892
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 30, 2007

Dow... 12,523.31 +32.53 (+0.26%)
Nasdaq... 2,448.64 +7.55 (+0.31%)
S&P 500... 1,428.82 +8.20 (+0.58%)
Gold future... 650.20 +1.10 (+0.17%)
30-Year Bond 4.98% UNCH (UNCH)
10-Yr Bond... 4.88% -0.02 (-0.35%)






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

The Great Credit Bubble:
What Could Go Wrong?
BY FRANK BARBERA, CMT

Blissfully unaware, the average American sails through another day listening to the radio reports of a growing economy and the illusion of deep-seated prosperity. For twenty years, the US economy has been in a “boom,” with technology spearheading the economic growth and the standard of living continuously on the rise. At least this is the impression that has been created.

Not discussed is the increasing polarization between economic classes, the fact that over the last four years the so-called “recovery” has been one of the most uneven and lopsided events in US History. Almost never before have the poor and middle classes lagged so far behind the wealthy, with the one exception being the robber-baron’s of the Gilded Age in the late 1800’s. Spoon fed a steady diet of mis-deception and non-contiguous economic data, the majority of the American public falls steadily behind as real wage growth has now stagnated for 10 years with inflation data dramatically unreported visa-vie real world experience. As real wages have gone nowhere, or decreased (adding in the serious cut-backs in employee benefits seen in recent years), corporate profits have soared, gaining ground on the back of outsourced manufacturing and white-collar jobs. The disconnect between “Wall Street” and “Mainstreet” has truly never been so wide.

Yet somehow, we tend to look past it; we know the government numbers on inflation are too low, that unemployment is seriously under-estimated, and that wage growth remains absent. For the very wealthy, times have never been better as unrelenting monetary inflation has been channeled into unrelenting asset inflation. For the owners and managers of corporations (CEO’s), the bonus checks have never been larger, the stock options largesse never more extreme. For Corporate America profit margins remain lodged at historic highs, the windfall of globalization. Last year, Wall Street bonus checks were bigger than the GDP of most third world countries, and larger than some developing nations. Welcome to the “Wal-Mart/Nordstrom” economy, where the wealthy shop at Coach, Neiman and Nordies, and the less prosperous at Wal-Mart and other discount retailers.

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

[ozymandius]

2. Today's Reports-a-plenty

8:30 AM GDP-Adv. Q4
Briefing Forecast 3.0%
Market Expects 3.0%
Prior 2.0%

8:30 AM Chain Deflator-Adv. Q4
Briefing Forecast 1.5%
Market Expects 1.6%
Prior 1.9%

8:30 AM Employment Cost Index Q4
Briefing Forecast 0.9%
Market Expects 1.0%
Prior 1.0%

9:45 AM Chicago PMI Jan
Briefing Forecast 52.0
Market Expects 52.0
Prior 51.6

10:00 AM Construction Spending Dec
Briefing Forecast -0.2%
Market Expects 0.0%
Prior -0.2%

10:30 AM Crude Inventories 01/26
Briefing Forecast NA
Market Expects NA
Prior 789K

2:15 PM FOMC policy statement

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

[54anickel]

23. GDP surges at 3.5% rate in fourth quarter

Consumer prices fall for first time in 45 years
http://www.marketwatch.com/news/story/economic-report-gdp-surges-35/story.aspx?guid=%7B41F171BC-99E6-4182-BF9F-38D16B244B2C%7D

WASHINGTON (MarketWatch) -- The U.S. economy shook off a summer slump and surged ahead at a faster-than-expected 3.5% annual growth rate in the fourth quarter, the Commerce Department estimated Wednesday.

Fed by robust consumer spending, a drop in energy prices and big turnaround in the trade balance, the economy notched its highest growth in a year, offsetting the drag of the weak housing and auto sectors. Read the full government report.

The 3.5% growth rate was much stronger than the 2% recorded in the third quarter, and handily beat the 3% expected by economists surveyed by MarketWatch. See Economic Calendar.

Consumer prices fell 0.8% annualized in the quarter, the first quarterly decline in 45 years and the biggest drop in 52 years.

The core personal consumption expenditure price index, which excludes food and energy prices, rose 2.1%, slightly above the Federal Reserve's 1% to 2% comfort zone. Core inflation has risen 2.3% in the past year, down from 2.4% in the third quarter. Market-based core inflation rose 1.7% in the quarter.

Final sales of domestic product rose 4.2%. Final sales to domestic purchasers increased 2.4%.

Disposable personal incomes rose 5.4% annualized, with the personal savings rate improving to a negative 1% from 1.2% the previous quarter.

more good news.....

[Hugin]

25. So, once again Energy is the big player...

"Consumer prices fell 0.8% annualized in the quarter, the first quarterly decline in 45 years and the biggest drop in 52 years."

"The core personal consumption expenditure price index, which excludes food and energy prices, rose 2.1%, slightly above the Federal Reserve's 1% to 2% comfort zone."

Well, which is it? :shrug:

[54anickel]

24. U.S. Q4 employment costs up 0.8 percent

http://today.reuters.com/news/articleinvesting.aspx?type=economicNews&storyID=2007-01-31T134116Z_01_N31430667_RTRIDST_0_USA-ECONOMY-COSTS.XML

WASHINGTON, Jan 31 (Reuters) - U.S. employment costs rose a less-than-expected 0.8 percent in the fourth quarter, the smallest increase since the first quarter of 2006, as wages and salaries advanced less than in the prior quarter, a government report showed on Wednesday.

The increase in the Employment Cost Index, a broad gauge of what employers pay in wages and benefits, eased from the third quarter's 1.0 percent gain and was below the 1.0 percent rise economists in a Reuters poll had forecast, Labor Department data showed.

It was the smallest increase since a 0.6 percent rise in the January to March period of 2006.

The less-than-expected increase in costs eases pressure on Federal Reserve policy-makers as they weigh whether they are done raising interest rates to curb inflation amid the latest data, including fourth-quarter growth which was issued on Wednesday.

more...

[54anickel]

35. Chicago Purchasing Index Points to a Contraction (Update2)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aFAOHO3UFXK0&refer=home

Jan. 31 (Bloomberg) -- A gauge of U.S. business activity in January unexpectedly pointed to a contraction for the first time since April 2003 as new orders fell.

The National Association of Purchasing Management-Chicago said today its business barometer fell to 48.8 this month from 51.6 in December. A reading lower than 50 signals contraction.

Companies have restrained production and postponed purchases of equipment as they worked off stockpiles built up last year. The Chicago area has been harder hit than most regions by cutbacks at automakers including Ford Motor Co.

``The trend in manufacturing is to go lower and has been that way over the last year,'' said Chris Low, chief economist at FTN Financial in New York. ``Chicago is heavily invested in autos and we know they've had some inventory adjustment there.''

Economists expected the index to rise to 52 from 51.6 in December, according to the median of 54 forecasts in a Bloomberg News survey. Estimates ranged from 50 to 55.

The U.S. economy grew at a faster-than-forecast annual pace of 3.5 percent last quarter, propelled by a rebound in consumer spending as gasoline prices fell and wages grew, the Commerce Department reported earlier today.

snip>

Some economists say the Chicago report foreshadows the nationwide manufacturing survey from the Institute for Supply Management, which will be released tomorrow. Economists forecast the index will rise to 51.8 in January from 51.4 in December.

December's ISM showed manufacturing unexpectedly expanded after shrinking for the first time in more than three years in November. The report followed an increase in the Chicago purchasing manager's gauge for December.

``There have been large regional variations in manufacturing activity,'' said Steven Wood, chief economist at Insight Economics LLC in Danville, California. ``At the national level it still appears to be growing modestly.''

more...

[54anickel]

36. Construction Spending Drops in December

http://www.forbes.com/feeds/ap/2007/01/31/ap3380320.html

Spending on construction projects around the country dropped by 0.4 percent in December, mostly reflecting fallout from an ailing housing market.

The Commerce Department reported Wednesday that the decline came after a tiny 0.1 percent increase in November. It was the worst showing since a 0.8 percent drop in October. Spending on residential projects by both private builders and the government declined by 1.6 percent in December.

Overall, construction activity turned out to be weaker than economists were expecting. They were saying they thought construction spending was flat in December.

[54anickel]

37. Crude Oil and Gasoline Inventories Advance

http://www.123jump.com/economy-story/Crude-Oil-and-Gasoline-Inventories-Advance/20675/

U.S. commercial crude oil inventories rose by 2.7 million barrels compared to the previous week. At 324.9 million barrels, U.S. crude oil inventories are above the upper end of the average range for this time of year. Total motor gasoline inventories jumped by 3.8 million barrels last week, and remain above the upper end of the average range.



The following is the un-edited press release from the Energy Information Administration.


Summary of Weekly Petroleum Data for the Week Ending January 26, 2007

U.S. crude oil refinery inputs averaged nearly 14.8 million barrels per day during the week ending January 26, down 112,000 barrels per day from the previous week''s average. Refineries operated at 87.1 percent of their operable capacity last week. Gasoline production declined compared to the previous week, averaging nearly 9.1 million barrels per day, while distillate fuel production increased, averaging nearly 4.0 million barrels per day.

U.S. crude oil imports averaged nearly 10.0 million barrels per day last week, up 159,000 barrels per day from the previous week. Over the last four weeks, crude oil imports have averaged nearly 10.1 million barrels per day, or 341,000 barrels per day more than averaged over the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged nearly 1.3 million barrels per day. Distillate fuel imports averaged 364,000 barrels per day last week.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) rose by 2.7 million barrels compared to the previous week. At 324.9 million barrels, U.S. crude oil inventories are above the upper end of the average range for this time of year. Total motor gasoline inventories jumped by 3.8 million barrels last week, and remain above the upper end of the average range. Distillate fuel inventories declined by 2.6 million barrels, but remain above the upper end of the average range for this time of year. A decrease in high-sulfur distillate fuel (heating oil) inventories more than compensated for an increase in diesel fuel inventories (a combination of ultra-low-sulfur and low-sulfur). Total commercial petroleum inventories increased by 0.3 million barrels last week, and are above the upper end of the average range for this time of year.

Total products supplied over the last four-week period has averaged nearly 20.3 million barrels per day, or roughly the same as averaged over the same period last year. Over the last four weeks, motor gasoline demand has averaged nearly 9.1 million barrels per day, or 3.4 percent above the same period last year. Distillate fuel demand has averaged nearly 4.2 million barrels per day over the last four weeks, or 0.7 percent below the same period last year. Jet fuel demand is up 3.6 percent over the last four weeks compared to the same four-week period last year.

[ozymandius]

3. Oil prices drop ahead of U.S. report

VIENNA, Austria - Oil prices fell Wednesday as the market adjusted to a spike the day before and awaited the weekly U.S. inventories report, which was expected to show higher gasoline stockpiles but a drop in distillates such as heating oil.

Still, the market remained poised for upward movement, with OPEC powerhouse Saudi Arabia and other members of the oil-producing organization seemingly ready to pay more attention to agreed-on production constraints.

Expectations of cold weather also kept a relatively high floor under prices.

Light, sweet crude for March delivery fell 33 cents to $56.64 by midday in Europe in electronic trading on the New York Mercantile Exchange. Brent crude for March delivery dipped 41 cents to $55.98 a barrel on the ICE Futures exchange in London.

Oil and natural gas prices jumped Tuesday on expectations of more cold weather in the United States and renewed concerns about OPEC production cuts. Oil traded as high as $57.05 before falling back to settle at $56.97 a barrel, a gain of $2.96.

more

[ozymandius]

4. Oil jumps 5 pct on fund buying, OPEC, US cold

NEW YORK (Reuters) - Oil jumped more than 5 percent on Tuesday, the biggest gain in 16 months, as big money funds poured fresh cash into the market amid OPEC cuts and cold U.S. weather that could tighten supplies.

U.S. light crude settled up $2.96 at $56.97 a barrel. It was the biggest jump since September 19, 2005, when prices surged 7 percent before Hurricane Rita slammed the U.S. Gulf Coast, the second of two major storms to hit the key U.S. energy region that season.

London Brent crude gained $2.71 to settle at $56.39 a barrel on Tuesday.

The surge was fuelled by a rush of buying by funds ahead of a fresh OPEC output cut.

-cut-

FEB OPEC CUT

OPEC producers were set to reduce supply to world markets by 500,000 barrels per day from February 1, and Nigerian Oil Minister Edmund Daukoru said most of the group agreed the cuts should be fully implemented before new measures are taken.

http://business.scotsman.com/latest.cfm?id=159832007

[ozymandius]

5. Fed expected to leave rates unchanged

WASHINGTON - Since Federal Reserve Chairman Ben Bernanke and his colleagues last met, an economic sea change has occurred that has left financial markets glumly contemplating the central bank's next moves on interest rates.

Analysts don't expect the Fed will change rates when policymakers wrap up their two-day meeting on Wednesday. But they are braced for the possibility of rate increases later this year, a far cry from the rate cuts they had been expecting just a few weeks ago.

Since the Fed's last meeting Dec. 12, the economic news has been uniformly good, with job growth stronger than expected, energy prices dropping and the overall economy navigating the rough waters of a severe housing slump.

Many analysts have gone from forecasting that the Fed would cut rates possibly three times this year to thinking that the most likely outcome is that the Fed will leave rates steady for a considerable period.

more

[ozymandius]

6. Good news, bad news: US economy too strong for interest rate cuts

An expected economic slowdown hasn't materialized, easing fears of recession ahead of the Fed's latest policy statement.

The US economy was expected to cool a bit along with temperatures this winter, but that slow patch is looking more like business as usual.

The housing slump is still serious. Detroit carmakers are still in trouble. But with oil prices dropping since last summer, overall economic activity keeps chugging along even as inflation looks to be easing.

The momentum has spoiled hopes that the Federal Reserve will cut interest rates anytime soon. The Fed is expected to note signs of strength in the economy, and continued vigilance against inflation, when it releases its latest policy statement Wednesday.

http://www.csmonitor.com/2007/0130/p01s03-usec.html

[ozymandius]

7. U.S. stock futures lower on pre-Fed jitters

LONDON (MarketWatch) -- U.S. stock futures drifted lower on Wednesday on jitters before the Federal Reserve's interest-rate decision, and more importantly, policy statement, with another wave of earnings from corporate titans including Boeing and Altria to come. Data on U.S. economic growth in the fourth quarter also is on tap.

S&P 500 futures slipped 3.3 points at 1,430.70 and Nasdaq 100 futures dropped 5.5 points at 1,783.75. Dow industrial futures declined 22 points.

-cut-

The Fed's decision is due 2:15 p.m. Eastern. Economists are expecting rates to stay at 5.25%, and traders will be closely monitoring the Fed's statement for clues on whether it will cut rates in the future. Some economists are now expecting rate hikes by the end of the year.

A rate cut in March or May had been seen as a virtual slam dunk six weeks ago, but strong growth over the past month has forced many economists to push back the timing of any easing. Previous market views that the Fed would cut three to five times in 2007 have been diminished to an expectation of one or two cuts.

http://www.marketwatch.com/News/Story/Story.aspx?column=Indications

[ozymandius]

8. California may ban lightbulbs by 2012

LOS ANGELES (Reuters) -- A California lawmaker wants to make his state the first to ban incandescent lightbulbs as part of California's groundbreaking initiatives to reduce energy use and greenhouse gases blamed for global warming.

The "How Many Legislators Does it Take to Change a Lightbulb Act" would ban incandescent lightbulbs by 2012 in favor of energy-saving compact fluorescent lightbulbs.

"Incandescent lightbulbs were first developed almost 125 years ago, and since that time they have undergone no major modifications," California Assemblyman Lloyd Levine said Tuesday.

-cut-

A 20-watt CFL gives as much light as a 75-watt conventional bulb, and lasts 13 times longer, according to the Rocky Mountain Institute, a nonprofit group studying energy issues.

http://money.cnn.com/2007/01/31/news/companies/bc.energy.california.lightbulbs.reut/index.htm?postversion=2007013107

Almost all of our lightbulbs in the Ozymandius household are CFL type. Well worth the expense, I say.

[trogdor]

26. Oh, yes!

We're about 90% CFL here in the Log Cabin on the Hill. With the newer ones, you don't notice the difference, no matter what the idiots on FARK are saying this morning. I can't remember the last time I had to change one of them.

Uh, oh, yes I can. I got a bad batch once, and they all burned out within a few months of each other after about two years of heavy use. I guess that means they all suck. :sarcasm:

[kineneb]

38. simple change that makes sense

we are switching ours over. Still having a problem finding candelabra-style CFL bulbs...

also, incandescent bulbs create a lot of heat, defeating use of AC in summer (= even more energy use)

I think PG&E periodicly has rebates for purchasing CFL bulbs.

gotta love the title of the bill

[54anickel]

50. Meters shed light on energy use

Smart meters could let TXU, others charge by time of day

http://www.dallasnews.com/sharedcontent/dws/bus/stories/013107dnbussmartmeters.1f43b36.html

By the end of this year, some electricity consumers in North Texas may have the option to save money by using power in the evening rather than during the day.

Thanks to a major power line upgrade that starts this week, electricity companies could charge different rates based on what time of day electricity is used. Customers who sign up for such pricing plans could get rock-bottom prices at night and on weekends, but pay a hefty premium for power during peak hours.

Consumers will be able to monitor their electricity use and charges in real time, and some will be able to connect to the Internet through power lines.

This week TXU Corp. began installing the initial 10,000 smart meters in Dallas. The new meters are a key piece of a four-year technology upgrade that will turn North Texas power lines into a communications network.

"It's a communications network that we lay over the electricity network," said Jay Birnbaum, vice president for Current Communications Group, which created a partnership with TXU last year to help install and operate the new technology.

"We can talk to our equipment that we install throughout the network. We can talk to a modem inside your house if you're a broadband customer. And we can talk to a meter on the side of your house," he said.

more...

[ozymandius]

9. Major home markets' slump continues

Boston and Detroit led the way down, according to latest figures from Case Shiller Weiss. Seattle bucks the trend.

NEW YORK (CNNMoney.com) -- Housing prices fell in nearly every major U.S. market in November, though some Northwest markets are bucking the trend, according to the latest numbers from Case Shiller Weiss.

Boston prices have swooned by 5 percent for the 12 months through November and Detroit was off 4.5 percent. Of 20 major cities tracked, all but three showed declines in November and seven recorded 12-month losses.

Northwest cities have best weathered the storm with Seattle showing a year-over-year increase of 13 percent and Portland a gain of 11.6 percent. In November, Miami led all other markets with growth of 7.4 percent.

-cut-

Case Shiller's 20-city composite index, which also includes Chicago, New York, and San Diego, dropped 0.4 percent in November, after inching down 0.2 percent in October. For the 12 months, the index was up 1.7 percent, a far cry from its performance in 2005, when the index gained 15.7 percent.

http://money.cnn.com/2007/01/30/real_estate/csw_novprices/index.htm?postversion=2007013014

[ozymandius]

10. Honda results disappoint

TOKYO (Reuters) -- Honda Motor Co. posted a smaller-than-expected rise in quarterly profit as fierce competition in China weighed on sales, and it left its operating profit forecast unchanged despite a big lift from a weaker yen.

The world's second-most valuable carmaker, with a market worth of $72 billion, had been riding demand for its small and fuel-efficient cars amid $3-a-gallon gasoline, but said it was feeling headwinds now with pump prices down at $2.20 to $2.30 a gallon.

The Tokyo-based automaker also said it had set its expectations too high for the booming Chinese market, and lowered its sales target there by about 20,000 units to around 360,000 vehicles for the business year to the end of March.

-cut-

Sales of Honda's (Charts) flagship Accord sedan have been badgered in China by the launch of Toyota Motor Corp.'s (Charts) popular Camry. Toyota, meanwhile, this month raised its sales growth outlook for China in 2007 to 40 percent from 33 percent.

http://money.cnn.com/2007/01/31/news/international/bc.honda.result.reut/index.htm?postversion=2007013106

[ozymandius]

11. Time Warner's profit up on AOL, investments

NEW YORK (Reuters) -- Media conglomerate Time Warner Inc. said Wednesday that fourth-quarter profit increased more than 30 percent, boosted by asset sales, more digital cable and phone customers, and a rise in AOL advertising sales.

The company said it had established a $600 million legal reserve to deal with pending securities lawsuits.

The owner of the Warner Bros. movie studio and HBO pay-cable network, as well as CNNMoney.com, said net income rose to $1.75 billion, or 44 cents per share, from $1.3 billion, or 28 cents, a year earlier.

Excluding special items such as a $769 million gain on the sale of AOL's Internet access businesses in the UK and France, the company said its quarterly profit was 22 cents, matching the average forecast from analysts polled by Reuters Estimates.

http://money.cnn.com/2007/01/31/news/companies/bc.timewarner.results.reut/index.htm

[ozymandius]

12. Allstate Misses Profit Estimates

Allstate (ALL - Cramer's Take - Stockpickr - Rating) shares lost ground in late trading Tuesday after the insurance giant's fourth-quarter earnings missed Wall Street's target.

Allstate's net income totaled $1.21 billion, or $1.93 a share, up from $8.95 billion, or $1.59 a share, a year earlier.

Operating earnings, which exclude investment gains and losses, rose to $1.12 billion, or $1.78 a share, from $975 million, or $1.49 a share, in the year-earlier period. Analysts polled by Thomson Financial expected operating earnings of $1.84 a share.

http://www.thestreet.com/newsanalysis/insurance/10335852.html

[UpInArms]

13. daily dollar watch

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

Last trade 85.25 Change +0.26 (+0.31%)

Dollar Shrugs Off Strongest Confidence In Nearly Four Years For Fed

http://www.dailyfx.com/story/currency/eur_news/Dollar_Shrugs_Off_Strongest_Confidence_1170184624235.html

If there was any doubt that the currency market is fully immobilized by the risk surrounding tomorrow’s FOMC meeting and US GDP print, then today’s price action converted those holding out. Aside from the New Zealand dollar, the highly liquid majors held to considerable modest ranges despite a stronger than expected consumer sentiment read.

Turning to the charts, the inactivity was exemplified by EURUSD which barely moved after the indicator hit the wires and went on to hold its 40-point range above 1.2945. Following suit, USDCHF stepped down its 40-point channel with a top around 1.2545. Showing some life of its own, debate over the coming G8 meeting in February put USDJPY in motion. The pair worked its way from a double touch on 122 resistance to fall back to 121.50. Finally, the British pound made an attempt to retrace some of its losses, running GBPUSD all the way up to 1.97. However, a dollar push brought the pair down to the next round figure at 1.96.

Indicators were back on the table Tuesday; but as was expected, the market was too enthralled with the greater event risk inherent in Wednesday and Friday’s data to move the dollar. The false market mover today was the Conference Board’s consumer confidence report for January. Under different circumstances, the reports print would have triggered an immediate and broad-based dollar bid. As was expected, the indicator advanced for the third consecutive month. Giving it some historical perspective, this month’s read was the highest since March of 2002. Breaking the indicator into its biggest components, the current conditions survey offered most of the buoyancy. With strong labor and wage trends mixing with cheaper gasoline prices, the outcome was heavily discounted. What’s more, the surge in the University of Michigan’s own preliminary sentiment gauge conformed the consensus to just such an outcome. However, the expectations portion of the survey was considerably more ambiguous. Falling for the first time in five months, consumers reported increased pessimism for business conditions, employment and wages in the coming six months. Typically, these seeds of doubt would not sprout until much later into a dollar rally, but a quiet market is allowing market participants to take their time.

...more

US Dollar - Eyes Set On Tomorrow's Slew Of US Data

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar___Eyes_Set_1170197114549.html

US Dollar - Consumer confidence rose to the highest level in almost five years as better employment prospects supported optimism in the world’s largest economy. The survey, released by the Conference Board, rose above the 110 print seen in the previous month to 110.3 in the month of January. However, the US dollar remained under pressure for the second consecutive session against the majors, barely even moving as if the report had never been released. Although surprising, the market reaction can be expected as we head into scheduled events for tomorrow. Not only are dollar traders focused on a continuation of 5.25 percent benchmark rates by the Federal Reserve, but also an unexpected and forecasted rise in gross domestic product. Expected to show an expansion of 3 percent, the upcoming GDP report is likely to be reflective of an economy that some had not expected in the quarter. Earlier in the year, experts and the market were anticipating further weakness, sub 2 percent growth, boosting the likelihood that policy makers would cut rates. What a difference three months can make. Now, with consumer spending higher and unemployment improving, inflationary pressures may well make their way back onto the table when policy makers finally release their decision. Additionally, a higher gross domestic product report for the fourth quarter would not only boost speculation of further stabilization in interest rates, but also help in reversing the expected dollar weakness for the first quarter of the new year. Subsequently, this would help support focus on the unemployment report set for week’s end with the consensus expecting a hefty 145,000 positions addition to the overall labor force. Ultimately, tomorrow will likely set the tone for dollar traders in the month to come should it handsomely beat expectations.

...more...

[Ghost Dog]

20. Yen recovers in advance of G7, market eyes Fed

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070131:MTFH17155_2007-01-31_12-47-03_L31716637&type=comktNews&rpc=44

LONDON, Jan 31 (Reuters) - The yen steadied above this week's four-year low against the dollar and rose versus the euro on Wednesday on growing expectations the Group of Seven finance ministers meeting next week might raise concerns about the Japanese currency's weakness.

Investors were reluctant to build sizeable positions ahead of the Federal Reserve's policy decision and a statement due later in the day. The Fed is set to hold rates on hold at 5.25 percent but the statement might reflect recent strong U.S. data.

Speculation on the yen intensified after the German finance minister, who will chair the G7 talks, said on Tuesday that Europe's concerns about yen weakness will be raised at next week's meeting.

/...

[54anickel]

49. Dollar Falls Versus Yen; Paulson Is Watching Japanese Currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=aRXDd7xpTAqM&refer=currency

Jan. 31 (Bloomberg) -- The dollar fell the most against the yen in more than two months after U.S. Treasury Secretary Henry Paulson said he will be watching the Japanese currency ``very carefully.''

The U.S. currency declined from a four-year high versus the yen reached this week. Paulson suggested the Japanese currency's recent decline could be discussed next week at the Group of Seven meeting in Germany. European officials have expressed concern over the yen's weakness during the past two weeks.

``Paulson's comments indicated that the rhetoric about yen weakness will probably pick up a little more than before,'' said Brian Taylor, chief currency trader at Manufacturers & Traders Trust in Buffalo, New York. ``People are concerned they will discuss the yen issue at the G-7 meeting. But nothing is going to come out of it because nobody believes there'll be any intervention.''

snip>

`Very, Very Carefully'

``I'm watching the Japanese currency very, very carefully,'' Paulson said in responding to a question during testimony to the Senate Banking Committee. ``I've talked to their finance minister and will talk to him again next week.''

Paulson also said he believed the yen reflected ``fundamentals'' of the Japanese economy rather than any sort of ``intervention'' by Japanese government officials in the markets. :eyes:

European Central Bank board member Christian Noyer said the yen's value doesn't reflect the strength of the Japanese economy, the Nikkei newspaper reported today. Japan's benchmark interest rate of 0.25 percent is the lowest among the G-7 members.

``People are concerned about the U.S. stance on the dollar toward the G-7 meeting,'' said Andrew Busch, a global currency strategist in Chicago at BMO Capital Markets.

more...

[54anickel]

51. Japan's Wages Unexpectedly Drop Most in 16 Months (Update3)

http://www.bloomberg.com/apps/news?pid=20601080&sid=aTdfpzMVRyFM&refer=asia

Jan. 31 (Bloomberg) -- Japan's wages fell at the fastest pace in 16 months in December as companies paid lower winter bonuses, signaling consumer spending may remain too sluggish for the central bank to raise interest rates.

Monthly wages, including overtime and bonuses, unexpectedly fell 0.6 percent from a year earlier, the labor ministry said today in Tokyo. Workers brought home an extra 5,500 yen ($45) in total pay in 2006, about enough to buy a case of beer.

Bank of Japan Governor Toshihiko Fukui and his policy board this month held the key interest rate at 0.25 percent, with most members saying they need to further examine prices and consumer spending. Falling wages may prevent the world's second-largest economy from shaking off more than seven years of deflation.

``Nothing determines the future of prices and consumption more than wages,'' said Takuji Aida, chief economist at Barclays Capital in Tokyo. ``Poor wage data is a negative factor for a February rate hike.''

The median estimate of six economists surveyed by Bloomberg News was for wages to climb 0.5 percent. None predicted a drop.

snip>

Unemployment hovering near an eight-year low and the biggest labor shortage in 14 years have yet to reverse a decade-long slide in wages that, according to Aida, stifled consumer spending and plunged the economy into deflation.

more...

[Ghost Dog]

21. Swiss franc rises vs dollar, euro after KOF

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070131:MTFH13921_2007-01-31_10-37-54_L31534402&type=comktNews&rpc=44

LONDON, Jan 31 (Reuters) - The Swiss franc rose against the dollar and euro on Wednesday after a closely-watched KOF leading indicator came in unexpectedly stronger.

The KOF came in at 1.71 in January, against a forecast for 1.52. The December reading was also revised higher to 1.75 from initially reported 1.60. "It's a temporary knee jerk reaction to a strong Swiss number and the previous month's number was revised up as well," said Martin McMahon, FX strategist at Credit Suisse in Zurich By 1035 GMT the Swiss franc rose to 1.6224 per euro <EURCHF=> erasing earlier losses of the day.

Against the dollar it rose to around 1.2543 <CHF=>, trimming earlier losses but still down 0.2 percent on the day.

/.

[Ghost Dog]

22. Dollar jumps after 4th-qtr US GDP tops views

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-01-31T141232Z_01_N31456602_RTRIDST_0_MARKETS-FOREX-UPDATE-7.XML

NEW YORK, Jan 31 (Reuters) - The dollar jumped on Wednesday after data showing U.S. economic growth in the fourth quarter was higher than expected, suggesting the Federal Reserve may now be more sensitive to any sign of inflation.

The dollar had been little changed against the euro and lower against the yen before the Commerce Department reported that U.S. gross domestic product grew at an annualized pace of 3.5 percent in the final three months of 2006, above forecasts for 3.0 percent.

"The GDP report showed a surprising uptick in economic growth - that's good news," said Mark Meadows, currency strategist with Tempus Consulting in Washington.

"We are seeing the dollar react favorably to the numbers because stronger growth usually comes with stronger inflation and in that sense, I wouldn't be surprised to see the Fed turning a bit more hawkish later today."

Following the report, the euro <EUR=> fell against the dollar, trading at $1.2930 soon after the report from about $1.2960 where it was shortly prior to the GDP report. The dollar gained against the yen, trading at about 121.70 yen <JPY=> from about 121.40 yen.

/...

[54anickel]

32. Buck shifting gears into reverse again

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

Last trade 84.86 Change -0.13 (-0.15%)

Settle Time 15:00 Open 85.01

Previous Close 84.99 High 85.27

Low 84.78 2007-01-31 10:59:26, 30 min delay

[54anickel]

34. Dollar dips after Chicago PMI falls below 50

http://www.marketwatch.com/news/story/dollar-dips-after-chicago-pmi/story.aspx?guid=%7BC0075421-7CDE-41A4-B35E-9E3D51B7B913%7D

NEW YORK (MarketWatch) -- The dollar fell slightly against major European currencies Wednesday, erasing early gains after a U.S. economic report showed business activity in the Chicago contracted this month.

The Chicago Purchasing Managers Index fell to 48.8 in January from 51.6 in December, suggesting a contraction in the regional manufacturing sector. Economists polled by MarketWatch were expecting a reading of 52. A reading above 50 would signal growth.

But Brian Dolan, director of research at Forex.com, a division of Gain Capital, cautioned that "manufacturing accounts for an ever smaller portion of U.S. economic activity so the Chicago PMI should not have much of a lasting effect, even though it's below the 50 boom/bust line."

snip>

Ashraf Laidi, chief foreign-exchange analyst at CMC Markets in New York, said that "there has been much talk about today's FOMC statement being more hawkish than the December statement, shedding more focus on the prospects of a return to trend growth later this year rather than emphasizing the risks to inflation.

"The dollar may especially rally if the Fed removes the use of the word 'substantial' in its description of the slowdown in housing market," he said.

more...

[54anickel]

52. Central Bankers Warn of an Impending US Fiscal Crisis

http://www.marketoracle.co.uk/Article284.html

snip>

Breaking out our handy-dandy central banker decoder ring we can decipher his statement as follows:

1. - "You guys are gonna have to either break your past entitlement promises and face an angry electorate or you're going to have to raise taxes to hurtful levels and face an enraged electorate".
2. - "Unless you do one (or both) of these things, the future looks mighty bleak".

Which is why all the congressmen resembled dogs listening to white noise. But Bernanke was probably quite comfortable with their feigned puzzlement as long as he was able to deliver the real message, possibly of the CYA variety, a little later:

He said the worrisome outcome taking no action would be what over indebted corporations call "the death spiral":

"Thus, a vicious cycle may develop in which large deficits lead to rapid growth in debt and interest payments, which in turn adds to subsequent deficits," Bernanke said.

Ah! Now we see. Bernanke is actually worried about what will happen to our monetary system once the era of ‘ free money for everyone' that congress has grown so accustomed to over the years lurches to a halt. The virtuous cycle of ‘more borrowing leading to more money chasing fewer economic opportunities leading to lower interest rates' will someday morph into it's evil twin the vicious cycle where (1) more borrowing leads to (2) higher interest rates which lead to (3) higher debt payments which the lead back to (1) more borrowing, which leads to (2), then (3), then (1,2,3 - real quick), then (123123123123123) so fast you find yourself running to store to spend your money only to find they ran out of wheelbarrows a long time ago.

In short, he's worried about how his particular private industry, the Federal Reserve and its member banks, are going to fare under this scenario. And he's not the only central banker out there hitting the pavement and making dire statements.

more...

[54anickel]

69. The World’s Biggest Ponzi Scheme

http://www.kitco.com/ind/Lee/jan312007.html

snip>

As I shall demonstrate in this paper, an open global economy with an increasingly integrated workforce and expanding consumer markets has diversified the risk of a systemic fiat currency crisis and the collapse of the dollar. I will elaborate the claim with observations on money supply, currencies, foreign reserves, and economic growth. I will then conclude with my views on the current investment climate and my investment outlook moving forward.

Tying the Dollar’s Fate to Globalization?

In closed economies when money supply grows 15% a year and budget and trade deficits exceed 6% of GDP, a currency crisis often ensues. Examples abound from Turkey, Brazil, to several Asian countries involved in the mid 90s crisis. I can hear the question: so why hasn’t there been one in the U.S.?
The answer can be found in the following chart.


Figure: Foreign Exchange Reserve Asset Holdings (USD Billions)



Source: IMF, World Economic Outlook

Recall that the eventual collapse of a Ponzi scheme is not necessarily caused by the size of the scam, but the inability to recruit new participants.
Instead of circulating in the U.S. economy and causing price increases, excess U.S. dollars have gone to Asia in exchange for Asian goods. Asian central banks in turn have soaked up the dollars, printed local currencies from thin air, and pumped the liquidity into their local markets.
In a way, the U.S. is exporting inflation in return for real goods. You would be amazed at how far the dollars bills have traveled, from the high mountains in Mongolia to small streets in Bangladesh. No doubt, a money supply growth of $12 trillion would have caused hyperinflation in a closed U.S. economy with 300million people. But in an open international economy that same $12 trillion is spread out among 5 billion people. In addition tens of trillions of U.S. MBS (mortgage backed securities), US corporate bonds, and US treasury bonds are now owned by institutions and retirement funds worldwide. Indeed globalization is postponing dollar’s fate of demise.

more...

[JNelson6563]

14. Hiya Ozy!

Good to see you back! :hi:


So, is everybody ready for our Dear Leader to do some speechifyin' 'bout the economy? I'm sure someone has worked very hard to construct the fictional tale we will hear.

Julie

[ozymandius]

28. Good morning Julie.

It's good to be back. Life without internet is awful.

I am trying out the new service with 6mbps. It may need to be scaled back because my old machine's limitations cannot reap much advantage to the high bit rate. All the same - Bellsouth did me a good turn by offering the super high speed dsl free for a short time.

So President Dumbass is gonna 'splain us how good we're all doing? I'm all ears and chuckles.

[Ghost Dog]

15. Asian private equity hits new peak; concern grows

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070131:MTFH16938_2007-01-31_12-38-53_T234777&type=comktNews&rpc=44

TOKYO, Jan 31 (Reuters) - Private equity investments in the Asia Pacific region hit record volumes in 2006 but concerns are mounting that the deal flow may not be enough to sustain the increasing number of funds coming in.

Fund investments totalled $7.6 billion in 2006, the highest level made in the region excluding Japan but including Australia, since $10.3 billion was recorded in 2000, said data provider Thomson Financial on Wednesday.

...

Foreign investment represented 63 percent of the Asian private equity market, reaching $4.9 billion in 2006.

...

Buyout funds raised a total of $4.1 billion worth of commitments, accounting for 42.1 percent of the region's fund raising total.

...

Indian companies remained a hotbed for regional private equity investments, attracting a total of $2.2 billion worth of disbursements. This was the largest amount ever received by a nation from Asia on record, said Thomson Financial.

Next were Chinese companies, which continued to receive attention from foreign investors. They got 145 rounds of financing worth $1.7 billion. Companies from Singapore followed with $1.5 billion of investments from 17 deals.

Companies in the expansion stage attracted the most private equity investment in 2006 reaching $2.2 billion from 190 rounds of financing. This figure accounted for 28.5 percent of total private equity investments received by the region.

/...

[Ghost Dog]

16. China stocks tumble on policy worries

http://www.ft.com/cms/s/69013c54-b108-11db-b901-0000779e2340.html

China’s main stock index fell 4.92 per cent on Wednesday, its biggest drop since last June, as investors worried about the possibility of official action to cool the market.

It was the second time in a week that the index fell sharply after nearing the 3,000 point level. Traders said the drop indicated many investors believed the market’s spectacular bull run was over for the short term at least.

“There is a bubble in the market. So investors are worried about government policy, especially in the property sector,” said analyst Zhang Yanbing at Kinghing Securities.

“This consolidation may last for two or three months. The index could fluctuate between 2,400 and 3,000 points,” added Zhang Qi, analyst at Haitong Securities.

The Shanghai Composite Index hit an intra-day low of 2,766.747 points before ending at 2,786.335. A total of 773 stocks fell while only 86 gained, and about 20 shares fell their daily 10 per cent limits.

Turnover in Shanghai A shares was a heavy Rmb85.4bn ($10.99bn) against Rmb87bn on Tuesday.

The index closed substantially below the 14-day average, now at 2,850, for the first time since August, a negative technical signal. Any close below last week’s intra-day low of 2,720 would trigger a double top formed by the January peaks and targeting the 2,450 area.

This month, authorities have shown signs of cracking down on what they may consider excessive fund flows into stocks. There are many such flows – the Shanghai Securities News estimated on Wednesday that several billion yuan had been raised to buy stocks by people hocking personal possessions at pawn shops.

/...

[Ghost Dog]

17. Tokyo stocks succumb to profit-taking

http://www.ft.com/cms/s/0427ea12-b0fe-11db-b901-0000779e2340.html

Japanese stocks fell on Wednesday, as some of companies that have shown sharp rises recently were hit by profit-taking.

The Nikkei 225 closed down 0.6 per cent to 17,383.42. The broader Topix also declined 0.6 per cent to 1,721.96.

...

Although the dollar remained near a four-year high against the yen, exporters failed to gain, on signs that investors were becoming wary of pushing up internationally focused stocks any further.

/...

[Ghost Dog]

18. India central bank warns of overheating

http://www.ft.com/cms/s/7dbb0782-b0ff-11db-b901-0000779e2340.html

Under pressure to tame rising inflation and escalating asset prices, India’s central bank on Wednesday again raised interest rates and warned of further “signs of overheating” in the world’s second fastest growing economy.

The Reserve Bank of India raised the repo rate by 25 basis points to 7.5 per cent and doubled bank provisioning requirements for loans for real estate, credit cards, stock market purchases and personal expenditures to 2.0 per cent.

It said: “Demand pressures appear to have intensified, reflected in rising inflation, high money and credit growth, elevated asset prices, strains on capacity utilisation, some indications of wage pressures and widening of the trade deficit.”

The central bank warned that continued high credit growth in the real estate sector and rising credit card and personal loan default rates were a “matter of concern”. Loans to commercial real estate have risen by 83.9 per cent year on year, it said.

The central bank, which has been raising rates since September 2004, said that the combination of high growth and firming inflation, coupled with escalating asset prices and tightening infrastructure bottlenecks, had complicated monetary policy.

The economy expanded by 9.1 per cent in the first half of 2006/07 to September 30th and is set for its fastest annual growth since the start of reforms in 1991. But signs of overheating are a growing concern to the central bank.

Wholesale price inflation has recently broken out of the central bank’s 5-5.5 per cent comfort range, rising from 4.1 per cent in March 2006 to 6.1 per cent on January 6. Inflation at the consumer price level has been rising even faster.

The consumer price index for urban non-manual employees, agricultural labourers and rural labourers jumped 6.9 per cent, 8.9 per cent and 8.3 per cent in December, respectively, from 5.7 per cent, 4.7 per cent and 4.9 per cent, a year ago.

/..

[Ghost Dog]

19. European stocks fall as financials weigh

http://www.ft.com/cms/s/f2e0238c-b107-11db-b901-0000779e2340.html

Bid activity in the steel sector led industrial metals groups higher, but European equity markets fell on Wednesday as losses for financial stocks weighed.

By midday, the FTSE Eurofirst 300 was down 0.5 per cent at 1,514.89, and Frankfurt’s Xetra Dax shed 0.3 per cent to 6,766.96. The CAC 40 in Paris slid 0.6 per cent to 5,613.59 and London’s FTSE 100 lost 0.4 per cent to 6,218.8.

/...

[Ghost Dog]

78. Eurozone unemployment falls to record low of 7.5 percent

http://asia.news.yahoo.com/070131/afp/070131163157eco.html

BRUSSELS (AFP) - Unemployment in the eurozone, long a major headache for the bloc's politicians, fell in December to the lowest level on EU records as economic growth put more people in jobs, official data showed.

The jobless rate in the 12 countries in the eurozone fell to 7.5 percent in December from 7.6 percent the previous month, hitting the lowest level on Eurostat's books going back to 1993, the European Union's data agency said.

The rate, which was adjusted to take seasonal variations into account, also marked a sharp fall from the 8.4 percent recorded in December 2005 and was in line with private economists' expectations.

Since peaking at 8.9 percent during an extended period ending in September 2004, unemployment in the eurozone has steadily declined as the economy gathers pace.

...

Looking ahead, Bank of America economist Holger Schmieding said that Europe was likely to see jobless queues continue to shrink because economic growth remained firm.

"Economic growth is likely to remain at, or slightly above, its two percent trend rate despite some possible short-term gyrations," Schmieding said.

"At the same time, rising rates of capacity utilisation point to robust investment activity and a further decline in unemployment ahead, probably coupled with some uptick in wage inflation.

"All in all, the eurozone is still enjoying the sweet side of the business cycle with subdued inflation and a continuing rise in employment," he added

/...

[Ghost Dog]

79. European stocks end down amid mixed results, M&A

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070131:MTFH25210_2007-01-31_16-45-17_L31739970&type=comktNews&rpc=44

LONDON, Jan 31 (Reuters) - European stocks ended lower on Wednesday as investors digested a mixed batch of corporate earnings and Tata Steel's hefty Corus (CS.L: Quote, Profile , Research) purchase in cautious trade ahead of a U.S. interest rate decision.

The pan-European FTSEurofirst 300 index <.FTEU3> closed unofficially down 0.5 percent at 1,514.9 points, retreating further from a six-year peak of 1,534.62 set last week.

...

Among major movers, Corus gained 6.8 percent after Tata Steel (TISC.BO: Quote, Profile , Research) won the bidding for the steelmaker with a 6.2 billion pounds ($12.2 billion) offer.

/..

[54anickel]

27. Did you all catch the return of Susan E Dudley? It was buried at the

end of the NY Times article on Dimson's latest executive order extravaganza.

http://www.nytimes.com/2007/01/30/washington/30rules.html?_r=1&hp&ex=1170219600&en=9f1468dd91984d81&ei=5094&partner=homepage&oref=slogin
Bush Directive Increases Sway on Regulation

big snip to end of article on page 2>

The executive order was issued as White House aides were preparing for a battle over the nomination of Susan E. Dudley to be administrator of the Office of Information and Regulatory Affairs at the Office of Management and Budget.

President Bush first nominated Ms. Dudley last August. The nomination died in the Senate, under a barrage of criticism from environmental and consumer groups, which said she had been hostile to government regulation. Mr. Bush nominated her again on Jan. 9.

With Democrats in control, the Senate appears unlikely to confirm Ms. Dudley. But under the Constitution, the president could appoint her while the Senate is in recess, allowing her to serve through next year.

Some of Ms. Dudley’s views are reflected in the executive order. In a primer on regulation written in 2005, while she was at the Mercatus Center of George Mason University in Northern Virginia, Ms. Dudley said that government regulation was generally not warranted “in the absence of a significant market failure.”



For those not familiar with Ms. Dudley, here's a good place to start

http://www.ombwatch.org/article/articleview/3558/1/455?TopicID=1

[54anickel]

40. Top Ten Signs the Pendulum Has Swung

With Sarbanes-Oxley under fire, regulators, Congress, and the courts seem primed to ease up on post-scandal reforms.

http://www.cfo.com/article.cfm/8618460/c_8622258?f=home_todayinfinance&x=1

One after another, the stars are lining up. Both the Securities and Exchange Commission and the Public Company Accounting Oversight Board beat retreats from bright-line strictures on internal controls. Treasury Secretary Hank Paulson sets up a kitchen cabinet of deregulators in hopes of preventing the flight of U.S. public issuers. On the legal front, auditors mount a strong push for tort reform. Here, David Letterman style, are ten signals that rulemakers and politicians are in a distinctly deregulatory mood when it comes to matters of corporate finance:

10. Shareholders can't sue your auditors anymore.
9. Katie Couric seems underpaid.
8. The SEC is becoming a material girl.
7. Arlen Specter wants to protect your privacy.
6. Steve Jobs gets to keep his job.
5. Internal controls don't keep you up at night.
4. Prosecutors get all mellow about attorney-client privilege.
3. Courtrooms are empty.
2. Hank Paulson applauds the retirements of Sarbanes and Oxley.
1. Enron, who?

[Roland99]

46. Gotta love those loony Libertarian types. Free Markets or Bust!

:eyes:

[cosmicdot]

92. kicking for visibility re Susan Dudley

heaven knows what damage she'll do after Bu$h appoints her while Congress is in recess
(think: Bolton, UN, etc.) - perhaps Congress should seriously consider skipping recesses for awhile ... things are too dangerous and critical for recesses.


Linking to the Mercatus Center from the ombwatch link ... a 501c3 tax exempt think tank at a state university, I see that Wendy Gramm is, also, involved at Mercatus. Remember Wendy, Senator Phil's wife, and former Board Director at Enron?

Bio at Mercatus re Wendy Gramm: Called "the Margaret Thatcher of financial regulation"
http://www.mercatus.org/People/id.106,cfilter.0/people.asp is she?

http://www.mercatus.org/people/default.asp?cFilter=0

I'm sure her inside information and experience was helpful to Enron. Enron isn't mentioned as part of her experience. hmmm

Per the 'missing' from Dudley's Mercatus Center page, is a 2000 article she wrote with Wendy Gramm, but it's listed on Wendy's bio page :) - "Something Wicked Comes This Way"

http://www.mercatus.org/repository/docLib/20060809_Something_Wicked_This_Way_Comes.pdf

criticizing Clinton Administration environmental regulation


Another interesting character at Mercatus - Lawrence Kudlow
http://www.mercatus.org/People/id.110,cfilter.0/people.asp

Lawrence Kudlow
Distinguished Scholar
CEO of Kudlow & Co., LLC

Lawrence Kudlow is a Distinguished Scholar at the Mercatus Center at George Mason University. He is also CEO of Kudlow & Co., LLC, an economic and investment research firm in New York City.

"For many years Mr. Kudlow served as chief economist for a number of Wall Street firms. Recently, Mr. Kudlow was a member of the Bush-Cheney Transition Advisory Committee. During President Reagan's first term, Mr. Kudlow was the associate director for economics and planning, Office of Management and Budget, Executive Office of the President, where he was engaged in the development of Reagan administration economic and budget policy. He is a former member of the board of directors of Empower America, a grassroots public policy organization chaired by Jack Kemp, William Bennett and Jeane Kirkpatrick."


Mercatus Board of Directors - check some of these names and affiliations

Frank Atkinson
Chairman, McGuireWoods Consulting, LLC

Mr. Atkinson is chairman of McGuireWoods Consulting LLC and a partner in McGuireWoods LLP.

Tyler Cowen
General Director
Chairman of the Board

Tyler Cowen is General Director of the Mercatus Center and professor of economics at George Mason University.

Richard Fink
Executive Vice President, Koch Industries

Rich Fink is executive vice president and a member of the board of directors of Koch Industries, Inc., in Washington, D.C.

Manuel Johnson
Co-Chairman, Johnson Smick Group

Manuel Johnson of McLean returns to George Mason with double service on the Board of Visitors and on the George Mason University Foundation Board of Trustees.

Charles Koch http://www.sourcewatch.org/index.php?title=Charles_G._Koch
(sourcewatch: With his brother, David H. Koch, he runs the Koch Family Foundations, one of the largest single sources of funding for conservative organizations in the United States)

Chairman and CEO, Koch Industries, Inc.

Charles Koch is chairman of the board and chief executive officer of Koch Industries, Inc., one of the largest privately held companies in America.

Edwin Meese, III
Former U.S. Attoney General

Edwin Meese, III served as the 75th attorney general of the United States, from February 1985 to August 1988. Prior to serving as attorney general, he was counselor to President Reagan from 1981 to 1985, where he functioned as the president’s chief policy advisor.

Dwight Schar
Chairman and CEO of NVR, Inc.

Dwight Schar is the chair and CEO of NVR Inc., a home building company he brought from bankruptcy in the early 1990s and turned into one of the top five U.S. building companies.

Menlo Smith
CEO, Sunmark Capital

Menlo Smith is CEO of Sunmark Capital Corp, headquartered in St. Louis, MO and engaged over the years in a variety of businesses with emphasis on manufacturing. Previously he served as Chairman and CEO of the Sunmark Companies, known for inventing and marketing popular candies and snacks including SweeTARTS, Pixy Stix, Tangy Taffy, Nerds, the Willy Wonka brands, David's Sunflower Seeds, etc.

Vernon Smith
Professor of Economics and Law

Vernon L. Smith, Nobel Prize winner in Economics, 2002, is a professor of economics and law at George Mason University, a research scholar in the Interdisciplinary Center for Economic Science, and a fellow of the Mercatus Center.

http://www.mercatus.org/People/typeID.81/people_byType_detail.asp

[54anickel]

93. Thanks Cosmicdot. She and that organization of shills are sumptin else, hey?

I was thinking the same thing - no recess until the Chimp's outta office. Want to go out for recess folks? Do your job and get rid of the idgit first.

[ozymandius]

29. update

10:40Dow 12,568.01 Up 44.70 (0.36%)
Nasdaq 2,453.18 Up 4.54 (0.19%)
S&P 500 1,430.64 Up 1.82 (0.13%)
10-Yr Bond 4.857% Down 0.018
NYSE Volume 633,059,000
Nasdaq Volume 509,572,000

10:00 am : Not much has changed within the last 30 minutes, even as investors sift through a disappointing update on regional manufacturing activity. The Chicago PMI recently checked in with a reading of 48.8, the lowest level since April 2003. However, even though any reading below 50 shows contraction, which runs counter to reports of late showing an acceleration in economic activity, the report is taking a back seat to today's more encompassing GDP data as well as tomorrow's more influential national ISM manufacturing index. DJ30 +8.93 NASDAQ -12.85 SP500 -3.52 NASDAQ Dec/Adv/Vol 1718/753/160 mln NYSE Dec/Adv/Vol 1770/803/74 mln

[54anickel]

30. US to raise cost of becoming citizen by 66%

http://www.breakingnews.ie/2007/01/31/story295904.html

The Bush administration is proposing to more than double the cost of becoming a US citizen and drastically raise the cost of becoming a legal permanent resident.

Citizenship and Immigration Services, a division of the Department of Homeland Security, announced today it wants to raise the application fee for citizenship from $324 (€249) to $903 (€695) and the fee for becoming a legal permanent resident from $179 (€138) to $1,368 (€1,053).

“As a fee-based agency we must be able to recover the cost necessary to administer an efficient and secure immigration system that ultimately improves service delivery, prevents future backlogs, closes security gaps and furthers our modernisation efforts,” said Emilio Gonzalez, CIS director.

The agency said the new fees would reduce average application processing times by the end of September 2009.

bit more...

[54anickel]

31. Paulson: China must speed money reform

http://www.cleveland.com/newsflash/politics/index.ssf?/base/politics-4/117025644121060.xml&storylist=washington

WASHINGTON (AP) — Treasury Secretary Henry Paulson told Congress on Wednesday that the Bush administration was doing all it could to get China to move more quickly on currency reform in the face of a soaring U.S. trade deficit.

"China does not yet have the currency policy that we want it to have and that it needs," Paulson said in his prepared remarks to the Senate Banking Committee. "The international community will run out of patience with China unless the pace of its reform accelerates."

Paulson's comments came as the U.S. trade deficit with China has hit an all-time high.

In his prepared testimony, Paulson did not elaborate on what would happen if China does not speed up the pace of reform, but the Bush administration is coming under heavy pressure to do something in face of five consecutive years of soaring trade deficits, led by the yawning imbalances with China.

A group of lawmakers led by Sen. Charles Schumer, D-N.Y., got widespread support last year for imposing penalty tariffs of 27.5 percent on all Chinese imports coming into the United States if China did not go further to revalue its currency.

more...

[Tace]

33. Worthless Treaties That Don’t Mean Squat To The Great White Father In Washington (Mogambo)

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

Jan. 31, 2007 -- On behalf of those of us who demonically persist in pointing out the sheer inflationary horror of what is happening with the Federal Reserve, the banks and the money supply, I want to commend Barron's for restoring their reporting of the Federal Reserve and bank data. On behalf of a grateful America, I say "thank you!"

And since we are talking about it, and since that is all I seem to talk about, I will note that Total Fed Credit, the fabled fountainhead from which springs forth, literally, money from thin freaking air (by creating credit, which creates debt, which creates the money, which inflates the money supply, which causes price inflation), has slowed its rate of growth, and last week actually showed a decline in Total Fed Credit of $8.9 billion.

This is, obviously, the proverbial good news/bad news situation, in that it is good that the Federal Reserve has stopped its insane inflation of money and credit which creates subsequent inflation in prices (which is the killer-diller), but it is bad because, by this time, we are so far gone that the only way this idiotic government-centric economy can keep going is by continuing to create -- forever! -- exponentially rising amounts of money and credit/debt! Forever! Hahahaha!

For a dash of some modern, mood-appropriate, surround-sound ambience, I now cleverly cue up a soundtrack of distant thunder and multitudes of desperate, tortured people wailing in despair. And over this mournful dirge I bellow, "And now we're not, all of a freaking sudden!" Boom! Crack of thunder!

more

http://www.worldnewstrust.com/index.php?option=com_content&task=view&id=909&Itemid=9999

[54anickel]

39. ADP Employer Services Says U.S. Added 152,000 Jobs in January

http://www.bloomberg.com/apps/news?pid=20601068&sid=aeb.ce5yDABw&refer=economy

Jan. 31 (Bloomberg) -- Companies in the U.S. added 152,000 jobs in January, rebounding from a decline the prior month and showing continued strength in the labor market, a private survey showed today.

The increase followed a drop of 40,000 in December, according to ADP Employer Services. The report is based on data from 307,000 businesses with more than 14 million workers on payrolls.

The figures reinforce others showing a healthy labor market that's bolstering consumer spending and the economy. The Labor Department two days from now is forecast to report that non-farm payrolls rose by 150,000 this month.

``The labor market is in better shape than just about anything else in the economy,'' Chris Low, chief economist at FTN Financial in New York, said before the report. ``We've seen no slowdown in hiring at all.''

The report last month was at odds with the government's figures showing companies added 150,000 jobs. Including government positions, the economy created 167,000 jobs in December, according to the Labor Department.

Economists had forecast ADP to report a 140,000 gain in private employment this month, according to the median of nine estimates in a Bloomberg News survey.

more...

[54anickel]

41. Deals on ‘dark pools’ set to surge

http://www.ft.com/cms/s/fc6755fa-b095-11db-8a62-0000779e2340.html

The volume of shares traded on private systems owned by investment banks, rather than on public exchanges, is set to surge, both in Europe and the US, a new report suggests.

Indeed, deals that occur on private inter-bank platforms – known as “dark pools of liquidity” – probably account for about 10 per cent of all shares trading in the US, a sharp increase from previous years, research by the Tabb consultancy suggests.

According to Tabb, “dark pools” and crossing networks captured nearly 10 per cent of the total US equity market last year, with an average of 420m shares traded per day, a number that will increase to 512m shares a day by the end of this year. In Europe, such systems accounted for 2 per cent of all equity trading and in Asia, less than 1 per cent, but both are growing steadily, according to the research.

In the US, several banks have launched their own branded internal systems, adding to the momentum. These include Morgan Stanley’s Pool, Goldman Sachs’ Sigma X, Credit Suisse’s CrossFinder and UBS’s Price Improvement Network.

There is also the Block Interest Discovery System, or Bids, an alternative liquidity source for block trading backed by Citigroup, Goldman Sachs, Lehman Brothers, Merrill Lynch, Morgan Stanley and UBS.

more...

[specimenfred1984]

90. Too bad regulation doesn't matter...

"However, as such trading networks expand, regulatory concerns could arise because once a system accounts for a large portion of total equity market volume, most regulators require prices to be quoted to the public."

Not in a fascist country they don't, the public is a pawn.

[54anickel]

42. Why Abe Won't Be Japan's Answer to Ronald Reagan - WTF?

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_pesek&sid=aDaC_FYt6HGM

Jan. 31 (Bloomberg) -- Shinzo Abe seems to be channeling the spirit of Ronald Reagan. Japan's prime minister is championing Reagan-like policies such as restoring national pride and deregulating a rigid economy.

Given Abe's focus in his first four months, it's not surprising that pundits are buzzing about ``Morning in Japan.'' It's a not-so-subtle reference to the U.S. president's 1984 re- election campaign. Reagan ran on a platform of the U.S. being ``prouder, stronger, better'' after his first four years.

Many credit Reagan, who died in 2004, with restoring U.S. power and prosperity after a period of economic hardship and national soul-searching. It's not unlike what many of Japan's 127 million people have entrusted Abe to do.

They are likely to be disappointed.

Abe's predecessor, Junichiro Koizumi, unleashed a bit of Reaganomics on Asia's biggest economy in his five years in power. He worked to push through spending cuts, tax reductions for the wealthy, privatization and deregulation. Koizumi had to move gingerly, given Japan's preference for consensus over conflict. Yet his direction was clear enough.

The idea always was for Koizumi's successor to build on his achievements, no matter how incomplete. Abe's charge was to bring Japan's recovery to the next level, encouraging companies and households to spend more and making an over-regulated economy more efficient.

more...

[54anickel]

43. Inflation and War Finance (Ron Paul)

http://www.house.gov/paul/tst/tst2007/tst012907.htm

The Pentagon recently reported that it now spends roughly $8.4 billion per month waging the war in Iraq, while the additional cost of our engagement in Afghanistan brings the monthly total to a staggering $10 billion. Since 2001, Congress has spent more than $500 billion on specific appropriations for Iraq. This sum is not reflected in official budget and deficit figures. Congress has funded the war by passing a series of so-called “supplemental” spending bills, which are passed outside of the normal appropriations process and thus deemed off-budget.

This is fundamentally dishonest: if we’re going to have a war, let’s face the costs-- both human and economic-- squarely. Congress has no business hiding the costs of war through accounting tricks.

As the war in Iraq surges forward, and the administration ponders military action against Iran, it’s important to ask ourselves an overlooked question: Can we really afford it? If every American taxpayer had to submit an extra five or ten thousand dollars to the IRS this April to pay for the war, I’m quite certain it would end very quickly. The problem is that government finances war by borrowing and printing money, rather than presenting a bill directly in the form of higher taxes. When the costs are obscured, the question of whether any war is worth it becomes distorted.

Congress and the Federal Reserve Bank have a cozy, unspoken arrangement that makes war easier to finance. Congress has an insatiable appetite for new spending, but raising taxes is politically unpopular. The Federal Reserve, however, is happy to accommodate deficit spending by creating new money through the Treasury Department. In exchange, Congress leaves the Fed alone to operate free of pesky oversight and free of political scrutiny. Monetary policy is utterly ignored in Washington, even though the Federal Reserve system is a creation of Congress.

The result of this arrangement is inflation. And inflation finances war.

more...

[54anickel]

48. Millions of US funds wasted in Iraq

http://www.timesonline.co.uk/article/0,,3-2576814,00.html

Millions of dollars intended for the rebuilding of Iraq have been squandered amid continuing incompetence, corruption and a deteriorating security situation, American government auditors have revealed.

A damning report by Stuart Bowen, the US special inspector general for Iraq reconstruction, described a string of misguided and expensive initiatives that have failed to deliver any real benefit for the country, among them the construction of a police camp in Baghdad that cost $43.8 million (£22.4 million) but has never been used.

The facility, built near Adnan Palace by the US contractor, DynCorp International, was even extended by the Iraqi Interior Ministry — to the tune of an Olympic-size swimming pool and $4.2 million (£2.1 million) of improvements — without proper American approval.

Today's report also included revelations that $36 million (£18 million) was spent by US officials on armoured vehicles, body armour and communications equipment that cannot be accounted for because invoices were vague and there is no back-up documentation.

Mr Bowen's study, which comes as President Bush is preparing to ask Congress to approve a further $1.2 billion (£612 million) in aid for Iraq, also asks serious questions of the Iraqi Government's ability to manage funds given to it. At the end of 2006, Iraqi officials had failed to spend billions of dollars specifically budgeted for capital projects since 2003, the report said.

more...

[54anickel]

44. 100 Bottles of Beer on the Wall (PIMCO's Bill Gross)

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2007/IO+February+2007.htm

The twin barrels of financial innovation and globalization have significantly complicated the forecasting of asset returns in recent years. Two domestic bubbles in the last decade are testimony to the power of levered money and the recirculation of price insensitive reserves back into U.S. financial markets. While the late 1990s equity bubble had its roots in bonafide technological innovation, peak prices were driven by credit creation fed by globalized repatriation of Asian reserves following its financial crisis in 1997/1998. Similarly, what now appears to be confirmed as a housing bubble, was substantially inflated by nearly $1 trillion of annual reserve flowing back into U.S. Treasury and mortgage markets at subsidized yields, as well as innovative funny money mortgage creation which allowed anyone to buy a house at escalating and insupportable prices. Bond, stock, and real estate trends then, have recently been increasingly at the mercy of relatively price insensitive and levered financial flows as opposed to historical models of value or the growth of the real economy itself. An exorbitant P/E of 25x meant nothing in 1999 as unforeseen flows and investor mania drove them to 35x at the peak in 2001. An unchanged 10-year yield range centered around 4½% mystified the Fed, but not cash rich foreign central bank buyers as short term rates were aggressively raised by 425 basis points from 2003 to mid-2006. This foreign repatriation produced artificially low yields, (perhaps 50-100 basis points confirmed in numerous Federal Reserve staff reports and speeches in recent years) which in turn drove housing values to unsustainable levels as recently as six months ago – the estimated peak in national home prices.

Investors these days, therefore, must turn their analysis inside out or perhaps calculate in reverse – counting not from 1 to 100 but 100 to 1, as if there were beer bottles on the wall and they were being taken down one-by-one and passed around until drunk. But whether beer or $5 million dollar houses in Newport Beach, my critical point is that asset prices are no longer entirely a function of the real economy: it can be just the reverse. The real economy is being driven by asset prices, which in turn are influenced by financial flows of non-historic origin, composition, and uncertain longevity. What used to be an Economics 101 “CIG + exports-imports” analysis leading to predictions for interest rates and stock prices has turned into an Economics 2007 analysis of corporate buybacks, international reserve flows and hedge fund/private equity positioning seeking to front run or take advantage of the first two. And it’s not simply a question of analyzing the animal spirits or “exuberance” of investors wherever they may be. Corporations are buying back stock with their historically high profits not really because they’re enthusiastic about their own company’s value, but because they have little else to do with the money. Likewise, foreign central banks and petroreserve recyclers are turned on more by capping their own currencies or geopolitical considerations in the Middle East.

Investors have no more significant example of the influence of financial flows on asset prices than tracking the pace of the U.S. trade deficit in the 21st century, as good a point as any to mark the beginning of our new financial era, since it encompasses both equity and housing asset bubble peaks. In effect, despite the chicken and egg aspect of why the trade deficit exists – because foreign investors want to invest in the U.S. or because U.S. consumers want to buy things – there is likely near unanimity that it is now responsible for pumping nearly $800 billion of cash flow into our bond and equity markets annually. Without it, both bond and stock prices would be much lower, the $800 billion for instance representing 3 - 4x our current federal budget deficit. Almost perversely, then, an increasing current account deficit supports and elevates U.S. asset prices as the liquidity from it is used to buy stocks and bonds. Chart 1 shows the trend of this dynamic pump since the beginning of the century.



snip>

With that important caveat, let me proceed to analyze another source of increased cash flow that has markedly influenced asset prices in recent years. I refer to corporate profits and their meteoric rise since the 2001 recession, increasing from 5¼% to nearly 9% of GDP as shown in Chart 2. While normally much of that rise of over $400 billion after tax dollars (almost identical to the pump provided by our increasing trade deficit over the same period) would have been reinvested in physical plant and equipment, this time it was not.



snip>

Combined, the total rise in corporate share buybacks and the financing for bond and stock markets via the increasing trade deficit have injected an average of perhaps $1 trillion annually of purchasing power into our asset markets since the end of the 2001 recession. Because hedge funds and levered players of all types have been aware of this trade deficit/share buyback “put” and have acted upon it, the incalculable but conservatively estimatable pump from these two sources alone have poured in several trillions of purchasing power per year. Take that money and use it to invest in further high powered and levered financial instruments such as CDOs, CPDOs, and 0% down funny money mortgages of all varieties and you can understand why asset markets have done so well in recent years, and why, as my initial Outlook sentence suggested, it is so hard to analyze “value” in asset markets these days. Prices are increasingly being determined by value insensitive flows and speculative leverage as opposed to fundamentals.

more...

[54anickel]

45. Bush: Link Exec Salaries to Performance

Bush Takes Aim at Huge Salaries and Bonuses for Corporate Executives

http://biz.yahoo.com/ap/070131/bush.html?.v=3

NEW YORK (AP) -- President Bush took aim Wednesday at huge salaries and bonuses for corporate executives, going to Wall Street to say compensation packages should hinge on how good a job a CEO does for the shareholders.

Bush came to New York to highlight optimistic news about the economy and to bring his economic message out of the shadows of the Iraq war. Shortly before he spoke, the government reported the economy grew at a faster-than-expected 3.5 percent pace in the final quarter of last year.

The president also was acknowledging the anger of Americans at stories about the enormous salaries and other perks for CEOs.

"Government should not decide compensation for America's corporate executives," the White House said in a report ahead of Bush's speech. "But the salaries and bonuses of CEOs should be based on their success at improving their companies and building value for their shareholders."

The White House statement appeared aimed in part at legislation that Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, has said he will push, requiring shareholder approval of executive compensation plans.

snip>

In his remarks, Bush was expected to call for changes in enforcement of the Sarbanes-Oxley Act, which was passed in response to a wave of corporate accounting scandals. The administration is heeding concerns from companies that the law, which tightens controls on financial reporting, has gone too far and is imposing unreasonable costs.

On the issue of how well the economy is doing, Democrats argue that Bush gives a misleadingly rosy picture of things.

snip>

Bush is also seeking to assure the business community of his opposition to tax increases.

more...

[54anickel]

47. 12:30 update

Dow 12,549.83 26.52 (0.21%)
Nasdaq 2,445.60 3.04 (0.12%)
S&P 500 1,428.93 0.11 (0.01%)
10-yr Bond 4.8570% 0.0180
30-yr Bond 4.9620% 0.0200
NYSE Volume 1,246,292,000
Nasdaq Volume 961,625,000

12:30 pm : The indices kick off the afternoon session with an added sense of nervousness going into today's Fed meeting, but only enough to inch the S&P 500 and Nasdaq back below the flat line. Further deterioration in Technology, especially in Computer Storage (-1.8%) and Semiconductor Equipment (-1.3%) -- two of the day's worst performing S&P industry groups, is largely responsible for the modest pullback. For the most part, though, stocks remain mired in relatively tight ranges and are likely to remain in a holding pattern until the FOMC statement is released at 2:15 ET. DJ30 +24.35 NASDAQ -3.23 SOX -1.2% SP500 -0.26 NASDAQ Dec/Adv/Vol 1674/1194/920 mln NYSE Dec/Adv/Vol 1608/1510/690 mln

12:00 pm : The major averages are trading in positive territory, as investors weigh a blowout report from Boeing (BA 89.84 +3.84) against uncertainty about the wording in today's Fed policy statement. Be that as it may, market gains are modest at best as the lack of conviction on the part of buyers, as reflected in another day of below-average volume, further underscores a sense of caution.

Since the percentage of companies reporting profits 10% or more above expectations has dropped sharply, investors are applauding news that Boeing more than doubled Q4 profits on record revenues and raised its guidance for fiscal 2007. It is also worth noting, though, that without the 4.5% surge in Boeing shares, the Dow would actually be flat since the rise in Boeing shares currently accounts for the entire 30-point move to the upside on the price-weighted index.

Meanwhile, the biggest focus today continues to surround the culmination of a two-day FOMC meeting (2:15 ET). Since the market remains totally convinced that policy makers will leave the overnight lending rate unchanged at 5.25% for a fifth straight time, the accompanying policy statement carries some risk since the Fed is likely to convey more of a hawkish stance than anticipated just a few weeks ago.

Underpinning the overall sense of uncertainty has been a stronger than expected advance read on Q4 GDP. While a rebound to 3.5% growth from 2.0% in Q3 dispels the worst of recession fears, suggesting the economy is back on trend, the report further diminishes the chance of the Fed easing anytime soon. It is Briefing.com's belief that the market will learn that the Fed has a stronger bias for raising interest rates than lowering them, as the bulk of surprisingly strong economic data of late continues to put the brakes on a seven-month rally in stocks. DJ30 +30.80 NASDAQ +0.43 SP500 +0.97 NASDAQ Dec/Adv/Vol 1640/1171/820 mln NYSE Dec/Adv/Vol 1603/1471/604 mln

11:30 am : Recent recovery efforts are short lived as a turnaround in oil prices removes some of the enthusiasm of owning equities, especially ahead of this afternoon's Fed policy directive. Crude was down as much as 2.1% following the EIA's weekly inventories report. However, the commodity now up nearly 1.0% and back above $57/bbl has only been beneficial to Energy (+0.2%).

The sector has subsequently turned positive but it is not providing the type of leadership seen yesterday (+2.1%) to act as an offset to the inflation potential of higher energy prices. Dow component Exxon Mobil (XOM 74.48 +0.09) has turned the corner, but the broader market's most heavily-weighted name is up only 0.1%.DJ30 +24.19 NASDAQ -2.79 SP500 -0.42 XOI +0.1% NASDAQ Dec/Adv/Vol 1637/1134/706 mln NYSE Dec/Adv/Vol 1629/1418/502 mln

11:00 am : A renewed wave of buying interest since the last update has inched the S&P 500 and Nasdaq into positive territory. As evidenced by an even bigger move on the Dow, one can point to a reversal in Altria Group (MO 88.18 +0.64) as a big reason for the market's improved disposition. The tobacco giant was down more than 1.0% before announcing an earlier than anticipated spin off of its 89% stake in Kraft Foods (KFT 34.27 -0.56).

Oil prices spiking to session lows and briefly below $56/bbl, following larger than expected builds in weekly crude and gasoline supplies, have also been responsible for the recent shift in sentiment. DJ30 +40.81 NASDAQ +2.63 SP500 +1.09 NASDAQ Dec/Adv/Vol 1513/1200/574 mln NYSE Dec/Adv/Vol 1517/1429/382 mln

10:30 am : The major averages remain mixed as split industry leadership continues to dictate early action. It is worth noting that the Nasdaq has more than halved its recent losses, but of the six sectors trading lower, Technology remains the weakest link. Among the influential sector's biggest disappointments are SanDisk (SNDK 39.04 -3.78), which is down almost 9% after announcing a glut of NAND flash memory chips, and Juniper Networks (JNPR 18.46 -1.36). The latter is down nearly 7% after failed to report earnings for a third consecutive quarter due to an ongoing stock option grant probe. DJ30 +17.06 NASDAQ -6.09 SOX -1.6% SP500 -1.35 NASDAQ Dec/Adv/Vol 1700/946/382 mln NYSE Dec/Adv/Vol 1846/1039/246 mln

10:00 am : Not much has changed within the last 30 minutes, even as investors sift through a disappointing update on regional manufacturing activity. The Chicago PMI recently checked in with a reading of 48.8, the lowest level since April 2003.

However, even though any reading below 50 shows contraction, which runs counter to reports of late showing an acceleration in economic activity, the report is taking a back seat to today's more encompassing GDP data as well as tomorrow's more influential national ISM manufacturing index.DJ30 +8.93 NASDAQ -12.85 SP500 -3.52 NASDAQ Dec/Adv/Vol 1718/753/160 mln NYSE Dec/Adv/Vol 1770/803/74 mln

09:40 am : As expected, the typical nervousness heading into a Fed decision and policy statement (2:15 ET) sidelines buyers at the onset of trading. The Dow, though, is holding onto a small gain early on; but that's entirely due to a 4.3% surge in shares of Boeing (BA 89.66 +3.60), which more than doubled Q4 profits. Boeing currently accounts for a 29-point move on the price-weighted index and without its advance the Dow would be lower.

Underpinning the overall sense of caution has been a stronger than expected advance read on Q4 GDP. While a rebound to 3.5% growth from 2.0% in Q3 dispels the worst of recession fears, suggesting the economy is back on trend, the report also renews concerns that policy makers will now show a bias towards higher rates rather than lower rates since the bulk of strong data recently continues to put the brakes on a seven-month rally in stocks. DJ30 +10.81 NASDAQ -12.13 SP500 -2.62 NASDAQ Vol 92 mln NYSE Vol 48 mln

[54anickel]

53. Former NYSE Member's Case Against Thain May Get Trial (Update2)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aTFEIQ1g4p0E&refer=home

Jan. 31 (Bloomberg) -- NYSE Group Inc. Chief Executive Officer John Thain and the New York Stock Exchange may have to face a trial in a suit accusing him of misleading a former member about taking the Big Board public, a judge said.

New York State Supreme Court Justice Charles Ramos reserved judgment on a request by Thain and the NYSE to dismiss the case after listening to arguments at a hearing today in Manhattan.

``I think there needs to be a determination by a jury,'' Ramos said, without issuing a formal ruling. ``I think there's a valid cause of action.''

Allison Wey, 46, claims she lost $4.3 million by selling her seat weeks before the NYSE's April 2005 announcement that it would go public by merging with Archipelago Holdings Inc. She claims Thain, 51, told her husband in February 2005 that the exchange had no plans to go public.

The suit claims Thain breached his duty to Wey as an NYSE member and made negligent misrepresentations in speaking to her husband. Ramos said he was likely to issue a written decision in the case. He has postponed any trial until Sept. 12 because of pretrial publicity.

more...

[54anickel]

54. New York, Tokyo Exchanges Shake Hands on New Alliance

http://www.ibtimes.com/articles/20070131/nyse-tse-alliance.htm

NEW YORK (International Business Times) - The chief executives leading the world’s two largest stock markets - the New York Stock Exchange and Tokyo Stock Exchange - shook hands high above the NYSE trading floor before the opening bell on Wednesday, after announcing that the groups will create an alliance that sets the stage for a possible merger or acquisition.

NYSE Group Inc. CEO John Thain and Tokyo Stock Exchange President and CEO Taizo Nishimuro signed a letter of intent this morning to establish a non-exclusive alliance that will explore possibilities in developing new opportunities in trading systems and technology, investor and issuer services, investment products, governance and regulation. They will also explore ways to let investors get easier access to stocks available in both markets.

“We are committed to the success of this strategic alliance, which will benefit and create growth opportunities for both markets and our respective customers, advance our global vision, and further strengthen the ties between Japan and the United States ,” said NYSE Group CEO John Thain in a prepared statement.

Nishimuro added that the alliance “will be a good starting point for a much stronger tie-up with the NYSE.”

The linkup comes as global markets are looking to create alliances and make acquisitions to take advantage of the global influx of new companies seeking to be publicly traded. The New York Stock Exchange is in the final stages of merging with Europe’s second largest stock market, Euronext NV.

more...

[trogdor]

55. What just happened?

S&P three minutes ago: about flat.
S&P now: +4.79

Somebody just made a big buy or something.

[54anickel]

57. Fed speak

Text of FOMC statement
http://www.marketwatch.com/news/story/text-fomc-statement/story.aspx?guid=%7BA1A77E16-593F-4B82-8E2E-83E613EA8E79%7D


Fed keeps interest rates on hold
FOMC sees firmer growth, more moderate inflation

http://www.marketwatch.com/news/story/fed-hold-sees-firmer-growth/story.aspx?guid=%7B24A1B5AF-8DE1-4FEC-AD6D-74F3E08CBF4C%7D

WASHINGTON (MarketWatch) - The Federal Reserve held overnight interest rates steady for the fifth straight meeting on Wednesday, seeing little reason to act as the economy looks stronger and inflation is declining gradually.
In the statement, the Federal Open Market Committee that inflation risks remain and that additional tightening may be needed.
The statement following the meeting acknowledged both firmer growth and more moderate inflation. "Overall, the economy seems likely to expand at a moderate pace over coming quarters," the committee said.
"Some tentative signs of stabilization have appeared in the housing market," the committee said.
On inflation, the committee said "readings on core inflation have improved modestly in recent months, and inflation pressures seem likely to moderate over time. However, the high level of resource utilization has the potential to sustain inflation pressures."
The vote was unanimous.
Fed watchers hadn't been expecting anything too exciting from the meeting. They said the economic environment of moderate growth and declining inflation allowed the FOMC to be patient. Fed officials have said they believe rates are well-positioned to respond to any change in the underlying economy. Read MarketWatch's complete Fed coverage.
In recent weeks, the market's expectations for rate cuts later this year have evaporated as the economic data have turned brighter. Indeed, the market now sees a small chance of a rate hike in the summer.
more...

[citizen snips]

56. Dow, Nasdaq Rise in Midafternoon Trading

NEW YORK (AP) -- Stocks surged higher Wednesday after the Federal Reserve, answering two of Wall Street's major concerns, indicated that the economy remains healthy and that inflation pressures are easing.

The Fed, which issued its economic assessment as it decided to leave short-term interest rates unchanged at 5.25 percent, said recent indicators "suggested somewhat firmer economic growth" and tentative signs of stabilization in the housing market. Investors also appeared pleased by the central bank's comments that readings on core inflation have "improved modestly" in recent months.

Wall Street had expected the Fed would leave short-term interest rates unchanged for the fifth straight meeting after a string of 17 straight increases that began in 2004. But investors were uneasy about the central bank's economic assessment statement and whether it would indicate that policy makers are considering raising interest rates in the near future because the economy and/or inflation has been growing too fast.

In midafternoon trading, the Dow Jones industrial average was up 61.45, or 0.49 percent, at 12,584.76.

Broader stock indicators were higher. The Standard & Poor's 500 index was up 3.72, or 0.26 percent, at 1,432.54 and the Nasdaq composite index was up 4.43, or 0.18 percent, at 2,453.07.

more...
http://biz.yahoo.com/ap/070131/wall_street.html?.v=27

[citizen snips]

58. Sector Snap: Search Engines

NEW YORK (AP) -- Shares of Google Inc., the busiest Internet search engine in the U.S., moved higher as the company prepared to release fourth-quarter results on Wednesday after the market closes.

The stock rose $9.52, or 2 percent, to $503.80 on the Nasdaq. In a 52-week range, shares have traded from $331.55 to $513.

RBC Capital Markets analyst Jordan Rohan said results may "surprise to the upside."

"We are calling for revenue growth of 17.5 percent sequentially, and would not be surprised to see upside to 20 percent," Rohan wrote in a client note.

more...
http://biz.yahoo.com/ap/070131/search_engines_sector_snap.html?.v=1

[citizen snips]

59. Earnings Preview: Chevron May Take a Hit

NEW YORK (AP) -- Chevron Corp. reports earnings for the fourth-quarter on Friday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Chevron, the country's second-largest oil company, cautioned earlier this month that a decline in realized crude oil prices, lower production and weaker profit from its refining business would hurt fourth-quarter results compared with the third quarter.

Chevron's crude oil prices averaged $52.26 a barrel in the fourth quarter -- down 18 percent from the third period and slightly below year-ago levels.

Meanwhile, the company's natural gas prices fell by roughly half, year over year. Chevron estimates its average realized gas price slid to $5.42 from $10.22 per 1,000 cubic feet in the 2005 fourth quarter and was down 9 percent from third-quarter levels. Supply constraints in the aftermath of hurricanes Katrina and Rita prompted the price spike in 2005.

more...
http://biz.yahoo.com/ap/070131/earns_preview_chevron.html?.v=1

[54anickel]

60. 2:34 update

Dow 12,621.37 98.06 (0.78%)
Nasdaq 2,460.06 11.42 (0.47%)
S&P 500 1,437.23 8.41 (0.59%)
10-yr Bond 4.8590% 0.0160
30-yr Bond 4.9580% 0.0240
NYSE Volume 1,871,298,000
Nasdaq Volume 1,465,572,000

2:30 pm : The indices are holding relatively steady near their best levels of the day as investors continue to rally around encouraging news out of the Fed. The actual text of the statement reads: "Recent indicators have suggested somewhat firmer economic growth, and some tentative signs of stabilization have appeared in the housing market. Overall, the economy seems likely to expand at a moderate pace over coming quarters.

Readings on core inflation have improved modestly in recent months, and inflation pressures seem likely to moderate over time. However, the high level of resource utilization has the potential to sustain inflation pressures.

The Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information." DJ30 +70.25 NASDAQ +4.98 SP500 +4.79 NASDAQ Dec/Adv/Vol 1547/1425/1.36 bln NYSE Dec/Adv/Vol 1592/1602/999 mln

2:15 pm : As expected, the Federal Reserve left the fed funds rate unchanged at 5.25% again. With respect to the accompanying policy directive, the Fed has asserted that economic growth is firming. The word "substantial," as it pertains to the slowdown in housing was removed, with the Fed citing "tentative signs of stabilization." The word "elevated," with regard to core inflation was also removed, with the statement saying readings have "improved modestly in recent months." Initial responses in both the stock and bond markets have been positive, but market action is expected to be volatile throughout the rest of the session.DJ30 +62.41 NASDAQ +4.31 SP500 +4.10 NASDAQ Dec/Adv/Vol 1696/1271/1.27 bln NYSE Dec/Adv/Vol 1610/1590/952 mln

2:00 pm : In the 15 minutes ahead of the FOMC announcement, equities continue to settle into their typical holding pattern ahead of today's Fed announcement. Treasuries, however, are inching a bit higher ahead of the directive; but thin volume offers little conviction behind the move, especially since the policy statement is likely to emphasize inflation risks and continued strength in the economy -- bad news for bonds. The 10-year note is up 5 ticks to yield 4.84%. DJ30 +26.04 NASDAQ -2.89 SP500 +0.11 NASDAQ Dec/Adv/Vol 1672/1282/1.21 bln NYSE Dec/Adv/Vol 1598/1564/908 mln

1:30 pm : Stocks continue to trade sideways as traders on the floor of the NYSE waiting to see what today's Fed statement implies about further rate hikes are also standing pat as President Bush makes a surprise visit. The market's holding pattern has been further evidenced in the A/D line, as decliners on the NYSE still hold a slim 7-to-8 advantage over advancers while those on the Nasdaq still hold a 17-to-11 advantage. The ratio of up to down volumes also paints a similarly neutral picture at the Big Board and the Composite. DJ30 +23.51 NASDAQ -2.29 SP500 +0.16 NASDAQ Dec/Adv/Vol 1736/1195/1.12 bln NYSE Dec/Adv/Vol 1667/1486/840 mln

1:00 pm : More of the same for stocks as the Dow and Nasdaq continue to trade in opposing directions. The latter is still finding it difficult to climb back into positive territory as selling remains widespread across Technology. The Dow is holding onto a modest gain, but the rally in Boeing (BA 89.65 +3.65) remains the biggest reason for the price-weighted index’s outperformance. A nearly 2.0% gain in shares of DuPont (DD 49.30 +0.92), after achieving a regulatory milestone for its Rynaxypyr insecticide, is also helping to offset follow-through selling pressure on fellow component 3M Co (MMM 73.61 -1.09). DJ30 +23.79 NASDAQ -3.89 SP500 -0.42 NASDAQ Dec/Adv/Vol 1748/1136/1.02 bln NYSE Dec/Adv/Vol 1676/1463/762 mln

[citizen snips]

61. Super Snap: Super Bowl Sponsors

NEW YORK (AP) -- Peyton Manning, Marvin Harrison and Brian Urlacher won't be the only big names in Super Bowl XLI.

Before, during and after the game on Feb. 4, sponsors will put their names and brands on a range of events, contests and prizes, looking to draw more attention from fans.

PepsiCo Inc. may be the busiest sponsor. The soft drink maker will lend its name to the halftime show and a series of concerts the night before the game. Diet Pepsi, the league's official soft drink, also sponsors the Rookie of the Year award, which will be presented Thursday afternoon.

In the Super Can contest, PepsiCo is also offering lifetime Super Bowl tickets and a $100,000 prize.

more...
http://biz.yahoo.com/ap/070131/super_bowl_sponsors_sector_snap.html?.v=1

[citizen snips]

62. E-Trade Joins Nasdaq Index

NEW YORK (AP) -- E-Trade Financial Corp., one of the top U.S. discount brokerages, on Wednesday was named as a component of the Nasdaq Financial 100 index.

The New York-based company, which has a market value of about $10 billion, re-listed on the Nasdaq in December. E-Trade defected from the Nasdaq to list on the New York Stock Exchange before switching back.

E-Trade replaced Charter Financial Corp. in the index. Charter delisted its stock from the Nasdaq, and now trades over the counter.

Shares of E-Trade rose 17 cents to $24.01 in afternoon trading.

http://biz.yahoo.com/ap/070131/e_trade_nasdaq.html?.v=1

[citizen snips]

63. Omnicell Hits 52-Week Best on 4Q Report

NEW YORK (AP) -- Omnicell Inc. stock hit a 52-week high Wednesday after the health care service company reported a strong fourth-quarter profit and raised its 2007 forecast.

Profit increased 70 percent, to an after-expenses total of $3.8 million from $2.2 million, due to better sales. Sales revenue increased to $42.3 million from $33.5 million for the Mountain View, Calif.-based company.

The results caused Omnicell to revise its annual forecast during its earnings conference call. The company now predicts profit of 78 cents to 81 cents per share, up from 71 cents to 75 cents.

Piper Jaffray analyst Sean Wieland kept his target price at $18 and his rating at "Buy." The first quarter of 2007 will be crucial for the company, Wieland said, as Omnicell's large number of bookings in the second half is either established into a trend, or becomes an isolated event.

more...
http://biz.yahoo.com/ap/070131/omnicell_mover.html?.v=1

[citizen snips]

64. Federal Reserve Interest Statement

The Federal Open Market Committee's statement Wednesday in connection with its decision to hold its target for the federal funds rate at 5- 1/4 percent:

Recent indicators have suggested somewhat firmer economic growth, and some tentative signs of stabilization have appeared in the housing market. Overall, the economy seems likely to expand at a moderate pace over coming quarters.

Readings on core inflation have improved modestly in recent months, and inflation pressures seem likely to moderate over time. However, the high level of resource utilization has the potential to sustain inflation pressures.

The Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Cathy E. Minehan; Frederic S. Mishkin; Michael H. Moskow; William Poole; and Kevin M. Warsh.

http://biz.yahoo.com/ap/070131/fed_interest_statement.html?.v=2

[54anickel]

65. IMF Should Sell Some Gold to Cover Losses, Panel Says (Update2)

http://www.bloomberg.com/apps/news?pid=20601068&sid=aGA4cC3CPQKY&refer=economy

Jan. 31 (Bloomberg) -- The International Monetary Fund should sell some gold to cover losses, said an advisory panel that includes former Federal Reserve Chairman Alan Greenspan and European Central Bank President Jean-Claude Trichet.

The Washington-based IMF could sell 400 metric tons of gold, valued at about $6.6 billion, and invest the proceeds in interest-bearing assets, the panel said in a report released today. Sales should be handled in a way that avoids ``disturbances'' in the gold market, a press release said.

Gold sales are part of a package of measures intended to reduce the IMF's dependence on the interest it earns from loans to member nations. The fund projects a loss of about $102 million this fiscal year after countries including Brazil and Argentina repaid loans early.

``If adopted, the measures would set the fund's finances on a sustainable basis, and ensure a solid foundation for the fund's important role in the international community,'' panel chairman Andrew Crockett, president of JPMorgan Chase International, said in a statement.

The IMF would earn about $195 million a year by selling a portion of its total holdings of 3,217 metric tons and investing the proceeds, the report says.

more...

[citizen snips]

66. Chips Snap: Silicon Labs, SanDisk Hit

NEW YORK (AP) -- Disappointing financial news from a couple chip makers sent semiconductor stocks spiraling downward in Wednesday's trading.

Silicon Laboratories Inc. shares were down $4.12, or 11.7 percent, at $31.17 in midday trading. Before the market open the company said its fourth-quarter profit was cut by more than half from the year-ago period, and it projected first-quarter sales would miss Wall Street expectations.

Other losers in the sector include flash memory maker SanDisk Corp., which projected weak first-quarter sales due to an oversupply of flash memory and declining prices. Shares of SanDisk were down $3, or 7 percent, at $39.79 on the Nasdaq.

Elsewhere in the sector, shares of Marvell Technology Group Ltd., a Bermuda-headquartered chip maker, were down 49 cents, or 2.6 percent, at $18.30 in afternoon trading on the Nasdaq.

more...
http://biz.yahoo.com/ap/070131/sector_snap_semiconductors.html?.v=1

[citizen snips]

67. Electronics for Imaging Shares Fall

NEW YORK (AP) -- Shares of Electronics for Imaging Inc. fell Wednesday, after the printing hardware and software maker posted a drop in fourth-quarter profit and forecast first-quarter earnings below Wall Street expectations.

At least two analysts downgraded the company, with Oppenheimer's A. Sasa Zorovic seeing "limited upside potential" for the stock, which closed above his target price of $25 on Tuesday.

Shares of the Foster City, Calif.-based company fell $2.37, or 9.3 percent, to $23 in afternoon trading on the Nasdaq. In the past 52 weeks, the stock has traded between $19.11 and $29.85.

Zorovic downgraded Electronics to "Neutral" from "Buy," calling the quarter's results mixed, with adjusted earnings of 35 cents per share falling a penny below consensus estimates

more...
http://biz.yahoo.com/ap/070131/electronics_for_imaging_mover.html?.v=1

[citizen snips]

68. Hilton Hotels 4Q Profit Nearly Doubles

LOS ANGELES (AP) -- Hotel chain operator Hilton Hotels Corp. said Wednesday its fourth-quarter profit nearly doubled as revenue per available room increased and revenue from leased hotels surged.

The company raised its 2007 estimates for per-room revenue, a key industry measure, a sign that the company's expansion plans are being matched by increased worldwide demand.

Shares of Hilton rose $1.05 to $35.45 in afternoon trading on the New York Stock Exchange.

Hilton's board should also decide on a successor to retiring co-chairman and chief executive Stephen F. Bollenbach "before early summer," Bollenbach told analysts during a conference call.

more...
http://biz.yahoo.com/ap/070131/earns_hilton_hotels.html?.v=4

[citizen snips]

70. Ford Sees Jan. Sales Down 20 Percent

DEARBORN, Mich. (AP) -- Ford Motor Co. said Wednesday that it expects to post a 20 percent drop in January U.S. auto sales compared with the same month a year ago, largely on lower sales to rental-car companies.

But the automaker said its turnaround plan is on track.

Car companies report January sales Thursday. Sales by Toyota Motor Corp. and Honda Motor Co. should rise, but General Motors Corp. said last week it expects January sales to fall because of lower rental fleet sales.

Dearborn, Mich.-based Ford sold 190,574 cars and light trucks in January 2006.

more...
http://biz.yahoo.com/ap/070131/ford_auto_sales.html?.v=1

[citizen snips]

71. Stocks Rise Following Fed Rate Decision

NEW YORK (AP) -- Stocks shot higher Wednesday, sending the Dow Jones industrials up by triple digits after the Federal Reserve answered two of Wall Street's major concerns, indicating that the economy remains healthy and that inflation pressures are easing.

The Fed, which issued its economic assessment as it decided to leave short-term interest rates unchanged at 5.25 percent, said recent indicators "suggested somewhat firmer economic growth" and tentative signs of stabilization in the housing market. Investors also appeared pleased by the central bank's comments that readings on core inflation have "improved modestly" in recent months.

Wall Street had expected the Fed would leave short-term interest rates unchanged for the fifth straight meeting after a string of 17 straight increases that began in 2004. But investors had been uneasy about the central bank's economic assessment statement and whether it would indicate that policy makers are considering raising interest rates in the near future because the economy and/or inflation has been growing too fast.

"They coupled a firmer economic growth scenario with the expectation of moderate growth and they expect the inflation outlook to be improving," said John Miller, head of fund management at Nuveen Investments said of the Fed's Open Market Committee. "I don't think it makes it any more likely that they would feel compelled to raise rates."

more...
http://biz.yahoo.com/ap/070131/wall_street.html?.v=30

[54anickel]

72. US Airways Pulls Delta Bid as Creditors Reject Merger (Update4)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aUdIQt2hDyvk&refer=home

Jan. 31 (Bloomberg) -- US Airways Group Inc. withdrew its hostile $9.75 billion offer for bankrupt Delta Air Lines Inc. after creditors endorsed Delta's plan to stay independent.

The risks and time required for a successful merger were too great, Delta's official unsecured creditors committee said today in a statement. The panel's decision was pivotal because it will help set terms for Delta to exit court protection.

The rejection dashes US Airways Chief Executive Officer Doug Parker's hopes of creating the world's largest airline by acquiring Delta while it was still in bankruptcy. It also may delay U.S. airline industry consolidation, analysts said.

``It will take away one of the factors that might have led other airlines to consider mergers,'' said Dan Kasper, an airline economist with LEGC LLC in Washington. A possible Delta- US Airways tie-up spurred talks among other carriers seeking to protect or expand their market share.

US Airways, based in Tempe, Arizona, had set tomorrow as the deadline for the creditors to act on its cash-and-stock offer. Atlanta-based Delta had fought the bid since it was disclosed on Nov. 15, saying creditors would get a better return if the carrier were allowed to leave bankruptcy as an independent company this year.

``Our focus is now on the work still before us to emerge from Chapter 11 this spring as a strong, healthy and vibrant global competitor,'' Delta CEO Gerald Grinstein said in a statement. Delta is the third-largest U.S. airline by traffic; US Airways is No. 7.

more...



Six banks fly to Delta’s aid
By Doug Cameron in Chicago
Published: January 29 2007 20:46 | Last updated: January 30 2007 14:59
http://www.ft.com/cms/s/4d42b8bc-afd7-11db-94ab-0000779e2340.html

Delta Air Lines on Tuesday added a heavyweight line-up of six banks to provide exit financing and explicit support for its effort to thwart the hostile $10bn bid from US Airways.

The Atlanta-based carrier selected JPMorgan, Goldman Sachs and Merrill Lynch to provide $2.5bn in exit financing, with Merrill Lynch, Lehman Brothers and UBS completing the roster of co-arrangers.

The announcement, which came as US Airways reported full-year results and prepared for a crucial bid deadline, adds another dynamic to the unfolding battle for control of the third-largest US airline by revenues.

US Airways has already secured $8.3bn in funding from Citigroup and Credit Suisse, which could provide an additional $1bn to sweeten the existing offer and persuade Delta creditors to push the carrier to the negotiating table. US Airways’ existing offer expires on February 1.

Delta Air Lines’ official creditors are expected to vote on Wednesday whether to force management to examine a sweetened offer from US Airways.

The vote comes amid signs that creditors are not enthusiastic about either the hostile bid or the Atlanta-based carrier’s stand-alone plan.

more...

[specimenfred1984]

73. FED: "Nothing costs more, it's beautiful in lala-land!"

Except for the abysmal future Bernanke mentioned the other day, something about all the money squandered by corrupt repukes and how the U.S. can't pay for anything now.

[citizen snips]

74. Highwoods Properties Declares Dividend

RALEIGH, N.C. (AP) -- Real estate investment trust Highwoods Properties Inc. on Wednesday declared a regular quarterly dividend of 4.25 cents per share.

The company will pay the dividend on March 2 to shareholders of record on Feb. 12.

http://biz.yahoo.com/ap/070131/highwoods_properties_dividend.html?.v=1

[54anickel]

75. Dow Jumps 116 After Fed Sees Growth

http://biz.yahoo.com/ap/070131/wall_street.html?.v=35

Dow Industrials Jump More Than 100 Points After Fed Indicates Economy Is Healthy

NEW YORK (AP) -- Stocks shot higher Wednesday, sending the Dow Jones industrials up by triple digits after the Federal Reserve answered two of Wall Street's major concerns, indicating that the economy remains healthy and that inflation pressures are easing.

snip>

"They coupled a firmer economic growth scenario with the expectation of moderate growth and they expect the inflation outlook to be improving," said John Miller, head of fund management at Nuveen Investments said of the Fed's Open Market Committee. "I don't think it makes it any more likely that they would feel compelled to raise rates."

Bond prices also rose following the Fed's statement, with the yield on the benchmark 10-year Treasury note falling to 4.84 percent from 4.88 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices rose.

Light, sweet crude rose $1.28 to $58.25 per barrel on the New York Mercantile Exchange.

Other economic data had cheered investors Wednesday. The economy gave off fresh signs it could sidestep a sharp slowdown. The Commerce Department found the economy grew at 3.5 percent annual rate in the fourth quarter as consumers increased spending despite a pullback in the housing market. Wall Street had been expecting an increase of 3 percent.

more...



We're in the money! Manna from heaven I tell you!!!

[citizen snips]

76. United Auto Group Sets Dividend

BLOOMFIELD HILLS, Mich. (AP) -- Automotive retailer United Auto Group Inc. on Wednesday declared a regular quarterly dividend of 7 cents per share.

The company will pay the dividend on March 1 to shareholders of record on Feb. 12.

http://biz.yahoo.com/ap/070131/united_auto_group_dividend.html?.v=1

[citizen snips]

77. Media General 4Q Profit Up 27 Percent

RICHMOND, Va. (AP) -- Media General Inc., which publishes the Richmond Times-Dispatch, The Tampa Tribune and Winston-Salem Journal and owns TV stations, said Wednesday its fourth-quarter earnings rose nearly 27 percent, largely boosted by revenue from its broadcast holdings.

Net income for the quarter ended Dec. 31 rose to $31.6 million, or $1.33 per share, compared with $25 million, or $1.05 per share, in the year-ago period.

Total fourth-quarter sales rose 26 percent to $294.7 million, including $18.5 million from a 14th week in the 2006 quarter, compared to 13 weeks in the 2005 quarter. Excluding the results of four new NBC affiliate stations purchased in June, sales rose 10.7 percent.

Analysts expected, on average, earnings of $1.29 per share on revenue of $297 million, according to Thomson Financial.

more...
http://biz.yahoo.com/ap/070131/earns_media_general.html?.v=6

[citizen snips]

80. Oil Rises on Upcoming OPEC Cuts

NEW YORK (AP) -- Crude oil prices climbed more than $1 a barrel for the second straight day Wednesday, surpassing the $58 mark as OPEC production cuts loom and fuel demand appears to be on the upswing.

The market was volatile, dropping by more than $1 after the U.S. government reported rises in crude and gasoline supplies, rebounding when traders shifted focus to a drop in heating oil stockpiles, and then surging further after the Federal Reserve suggested economic growth is firmer than many anticipated.

The roller coaster day capped a similarly wild month: this January saw the price of a barrel of crude oil swing from above $60 to $50 and back up to $58.

Wednesday's prices were also buoyed by the fact that on Thursday, the Organization of Petroleum Exporting Countries begins its second round of production cuts, announced late last year.

"Whether or not they comply fully, psychologically, it's still important," said Chip Hodge, an energy portfolio manager with John Hancock Financial Services.

more...
http://biz.yahoo.com/ap/070131/oil_prices.html?.v=15

[citizen snips]

81. Asset Sale Lifts Time Warner's 4Q Profit

NEW YORK (AP) -- Time Warner Inc.'s profit jumped 34 percent in the fourth quarter, boosted by the sale of Internet access businesses in Europe, a tax benefit and a deal that added new subscribers to its cable TV unit.

The world's largest media company, which owns Warner Bros., the magazine publisher Time Inc. and the second-largest cable TV operator in the country, said Wednesday it earned $1.75 billion, or 44 cents per share, for the three months ending in December, up from $1.3 billion, or 28 cents a share, in the same period a year ago.

Revenues rose 8 percent to $12.5 billion from $11.5 billion.

The results included a gain of $769 million from the sale of AOL's Internet access businesses in the U.K. and France, a restructuring charge at AOL of $179 million, and about $900 million in tax benefits.

more...
http://biz.yahoo.com/ap/070131/earns_time_warner.html?.v=7

[citizen snips]

82. Altria to Spin Off Rest of Kraft

NEW YORK (AP) -- Now that Altria is poised to jettison its Kraft Foods subsidiary, investors expect the payoff will be a higher share price as the company transforms into almost purely a tobacco company.

Altria Group Inc., whose tobacco operations make the top-selling Marlboro cigarette brand, plans to spin off its majority stake in Kraft Foods Inc. in March.

That will leave Altria consisting primarily of tobacco units Philip Morris USA and Philip Morris International and a stake in beer maker SABMiller PLC.

Altria's announcement Wednesday had been widely anticipated by Wall Street as the first step in a restructuring plan designed to make the company more valuable to investors. Some market watchers believe Altria's share price has not benefitted as much as its should from a rise in the tobacco sector this year.

more...
http://biz.yahoo.com/ap/070131/altria_kraft.html?.v=8

[citizen snips]

83. Kodak Posts 4Q Profit

ROCHESTER, N.Y. (AP) -- After wading through a river of red ink for two years, Eastman Kodak Co. finally hauled in a modest profit in the fourth quarter. For the first time, it also generated more earnings from digital photography and commercial printing than from its storied film business.

The world's top maker of photographic film earned $16 million, or 6 cents a share, in the October-December period. That compared to a year-ago loss of $46 million, or 16 cents a share, when Kodak took hefty charges linked to its mammoth, four-year digital overhaul, which it aims to wrap up this year.

Sales fell 9 percent to $3.821 billion from $4.197 billion largely because of its emphasis on improving digital profit margins, such as focusing more on the higher-end camera market.

Excluding one-time items, Kodak beat Wall Street expectations by earning $169 million, or 59 cents a share, in the quarter. Analysts surveyed by Thomson Financial had forecast earnings of 55 cents a share, but they also anticipated higher sales of $3.94 billion.

more...
http://biz.yahoo.com/ap/070131/earns_kodak.html?.v=9

[citizen snips]

84. MAF Bancorp Boosts Quarterly Dividend

CLARENDON HILLS, Ill. (AP) -- MAF Bancorp Inc. said Wednesday its board raised the company's quarterly dividend by 8 percent to 27 cents per share from 25 cents previously.

The dividend will be paid April 3 to shareholders of record on March 19.

MAF Bancorp is the parent company of Mid America Bank, a federally chartered stock savings bank which operates a network of 82 retail banking offices throughout the Chicago and Milwaukee areas.

http://biz.yahoo.com/ap/070131/maf_bancorp_dividend.html?.v=1

[citizen snips]

85. Market Spotlight: Industrial Metals

NEW YORK (AP) -- Industrial metals nickel and copper have continued their divergent paths in 2007, with January's sharp rise in nickel prices overshadowing investors' flagging sentiment toward copper.

Nickel prices climbed to an 11-year high last week. The metal, which is used to make stainless steel, has been in high demand from fast-growing economies such as China. But for essentially the same reason -- China -- copper prices have plummeted.

Last year, after copper prices surged in May to an all-time high above $4 a pound on the New York Mercantile Exchange, Chinese demand began to dry up, and copper prices began their fall. To avoid the inflated price tags, China began to mine copper itself, dipped into state reserves and recycled scrap metal, said BNP Paribas metals analyst David Thurtell.

The Chinese "are intensely focused on price," he said. "They stopped buying metal on the world market."

more...
http://biz.yahoo.com/ap/070131/market_spotlight_base_metals.html?.v=1

[citizen snips]

86. Vietnam Communists to Give Up Businesses

HANOI, Vietnam (AP) -- Vietnam's ruling Communist Party and the military will relinquish control of dozens of companies, ranging from hotels to telecoms, amid ongoing efforts to transform the country into a market economy, officials said Wednesday.

The elite 160-member Central Committee last week decided to transfer the companies managed by the Party and the armed forces to the state, said Dao Duy Quat, deputy director of the party's Ideological and Cultural Commission.

However, the armed forces, including military and police, will maintain control of some companies that are directly related to national defense and security, he said.

It is still unclear how many businesses will be transferred, but the process must be completed by the end of this year, Quat said. He said the move is part of overall government restructuring that will push Vietnam toward a market economy.

more...
http://biz.yahoo.com/ap/070131/vietnam_communist_enterprises.html?.v=1

[citizen snips]

87. XM Extends Deals With Toyota, Honda

WASHINGTON (AP) -- XM Satellite Radio Holdings Inc. on Wednesday announced a seven-year extension to an agreement with Toyota Motor Sales U.S.A. Inc. for factory installation of XM satellite radios in Toyota and Lexus vehicles.

The agreement extends an existing deal from 2010 to 2017, and follows a similar extension for XM with Honda Motor Co. announced a day earlier. Washington-based XM said Tuesday that Honda would install the radios in both Honda and Acura vehicles through 2016.

Both XM and rival Sirius Satellite Radio Inc. have been banking on growth from auto sales as the retail side of their business has softened, raising concerns on Wall Street. XM did not meet a target for subscriber growth last year, and Sirius met a lowered target.

Although investors have speculated that the two leaders of this young industry might merge, Kevin Martin, chairman of the Federal Communications Commission, mentioned on Jan. 17 that licenses granted to the satellite radio companies wouldn't permit them to combine. Some analysts had hoped the FCC would change the rule or make an exception.

more...
http://biz.yahoo.com/ap/070131/xm_satellite_radio_toyota.html?.v=1

[citizen snips]

88. Grains Mixed, Soybeans Down

CHICAGO (AP) -- Grain futures finished mixed, while soybean futures ended lower Wednesday on the Chicago Board of Trade.

Wheat for March delivery rose 8 cents to $4.67 1/2 a bushel; March corn fell 3/4 cent to $4.04 a bushel; March oats fell 2 cents to $2.57 1/4 a bushel; March soybeans fell 1 1/2 cent to $7.19 1/2 a bushel.

Beef and pork futures increased on the Chicago Mercantile Exchange.

February live cattle rose .30 cent to 90.22 cents a pound; March feeder cattle rose 1 cent to 95.85 cents a pound; February lean hogs rose .95 cent to 64.52 cents a pound; February pork bellies rose 3 cents to $1.0150 a pound.

http://biz.yahoo.com/ap/070131/board_of_trade.html?.v=3

[citizen snips]

89. Allstate Shares Drop on Modest 4Q Miss

NEW YORK (AP) -- Shares of Allstate Corp. fell after the property insurer missed estimates for fourth-quarter operating income as the company paid out more in claims than investors expected.

Allstate, based in Northbrook, Ill., posted $1.21 billion operating income for the fourth quarter, versus $975 million in the fourth quarter of 2005. The improvement stemmed mainly from lower losses from catastrophic damage, which fell to $279 million from $657 million.

However, Allstate's operating income of $1.78 per share fell short of analysts' expectations for operating income of $1.84 per share.

Shares of Allstate fell $3.73, or 5.8 percent to $60.27 in Wednesday afternoon trading on the New York Stock Exchange. The shares have traded in a range of $50.30 to $66.14 in the past year.

more...
http://biz.yahoo.com/ap/070131/allstate_mover.html?.v=1

[54anickel]

91. Closin' time

Dow 12,621.69 98.38 (0.79%)
Nasdaq 2,463.93 15.29 (0.62%)
S&P 500 1,438.24 9.42 (0.66%)
10-yr Bond 4.8260% 0.0490
30-yr Bond 4.9260% 0.0560
NYSE Volume 2,895,496,000
Nasdaq Volume 2,291,804,000

4:20 pm : Stocks rallied Wednesday as investors embraced further evidence that the Fed is doing a remarkably good job of managing a soft landing for the economy... so far. The Dow finished within a point of record levels, the S&P 500 closed out its eighth straight month of gains while the Russell 2000 and S&P 400 MidCap closed in record territory.

Per usual, all eyes were fixed on today's FOMC meeting. As expected, policy makers left rates unchanged at 5.25% for a fifth straight time; but the policy statement carried some added risk. The market has been pricing in more of a hawkish stance than was anticipated just a few weeks ago, especially on the heels of a stronger than expected advance read on Q4 GDP.

While a rebound to 3.5% growth from 2.0% in Q3 dispels the worst of recession fears, suggesting the economy is back on trend, the GDP report further diminished the chance of the Fed easing anytime soon. Today's Fed statement further echoed such improbability, as the directive reflected a continued leaning toward a rate hike rather than lowering rates.

Oil prices tacking a 2.1% gain onto yesterday's 5.5% surge, marking the biggest two-day gain since December 2004, as well as the Energy sector's inability to take full advantage with a paltry 0.2% advance, also lent less conviction behind today's reaction to the Fed.

Be that as it may, a market hungry for some upbeat news since earnings season so far has been uninspiring, market participants rallied around proof that the economy is firming, not slowing. The removal of "substantial" to describe the slowdown in housing and addition of "stabilization" was also greeted with enthusiasm, as was the phrase, "Readings on core inflation have improved modestly in recent months," which excluded the word "elevated" from the last meeting.

Of the 10 sectors that closed higher, Industrials provided the bulk of upside leadership. While signs of a "goldilocks" economy certainly gave the group an added boost in afternoon trading, the economically-sensitive sector was already applauding a blowout quarter from Dow component Boeing (BA 89.56 +3.56). With the percentage of companies reporting profits 10% or more above expectations has dropped sharply, Boeing more than doubling Q4 profits and raising its FY07 guidance was also welcoming news for a market struggling to keep buying efforts on track after such a huge run-up in the second half of 2006. BTK -0.1% DJ30 +98.38 DJTA +2.7% DJUA +0.2% DOT +1.0% NASDAQ +15.29 NQ100 +0.8% R2K +0.3% SOX -0.4% SP400 0.7% SP500 +9.42 XOI 0.5% NASDAQ Dec/Adv/Vol 1331/1718/2.21 bln NYSE Dec/Adv/Vol 1068/2213/1.58 bln

3:30 pm : Onward and upward remains the driving mantra this afternoon as buyers are now in complete control of the action going into the close. Exacerbating the latest push to new heights has been the ability by the Dow, S&P 500 and Nasdaq to break through resistance levels of 12613, 1439 and 2458, respectively. The Russell 2000 Index and S&P 400 MidCap Index joining the Dow in record territory further underscores the broad-based nature of today's rally. DJ30 +127.57 NASDAQ +19.72 R2K +0.6% SP400 +0.9% SP500 +11.98 NASDAQ Dec/Adv/Vol 1237/1777/1.71 bln NYSE Dec/Adv/Vol 1017/2217/1.25 bln

3:00 pm : Stocks are extending their reach to the upside as market internals finally turn to favor the bulls for the first time today. The Dow is now trading more than 10 points above its record close a week ago and is being led, not just by Boeing (BA 89.88 +3.88), but gains from 22 other components.

Be that as it may, it remains to be seen just how sustainable this afternoon's knee-jerk reaction to the Fed will be since the statement also reflected a continued leaning toward raising rates rather than lowering rates. Thus, the underlying risk of a rate hike down the road represents a fundamental shift in the assumption that helped stocks rally during the second half of 2006. DJ30 +108.81 NASDAQ +14.14 SP500 +9.56 NASDAQ Dec/Adv/Vol 1323/1676/1.55 bln NYSE Dec/Adv/Vol 1058/2159/1.15 bln