STOCK MARKET WATCH, Monday March 5

[ozymandius]

Monday March 5, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 686 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2261 DAYS
WHERE'S OSAMA BIN-LADEN? 1965 DAYS
DAYS SINCE ENRON COLLAPSE = 1925
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
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 March 2, 2007

Dow... 12,114.10 -120.24 (-0.98%)
Nasdaq... 2,368.00 -36.21 (-1.51%)
S&P 500... 1,387.17 -16.00 (-1.14%)
Gold future... 644.10 -21.00 (-3.26%)
30-Year Bond 4.65% -0.03 (-0.62%)
10-Yr Bond... 4.52% -0.04 (-0.90%)






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

[Ghost Dog]

1. GLOBAL MARKETS-European, Asia shares tumble as yen surges

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-03-05T082614Z_01_L051766_RTRIDST_0_MARKETS-GLOBAL-WRAPUP-4-GRAPHICS-PICTURE.XML

LONDON, March 5 (Reuters) - European shares opened sharply lower on Monday, adding to sell-off woes on Asian bourses, as the Japanese yen surged in an unravelling of the carry trade that has supported many recent investments.

The FTSEurofirst 300 <.FTEU3> was trading down around 2 percent lower, taking losses to more than 7 percent over the past week.

Earlier, Tokyo's Nikkei average fell 3.34 percent, marking its biggest one-day tumble in nine months and a new low for 2007, as investors continued to dump shares in exporters following the yen's rise.

It lost points 575.68 points to 16,642.25 <.N225>, its lowest close since December and its biggest one-day percentage loss since June 2006.

The yen was surging across the board, striking a three-month high against the dollar as another wave of investors rushed to reverse bets against the Japanese currency.

/...

[Ghost Dog]

5. FTSE falls as global sell-off gathers pace

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39146.2915625-891059677&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

London equities tumbled in morning trade on Monday, as steep losses on leading Asian exchanges overnight scotched hopes of a recovery after last week’s steep falls. The sell off was once more broad-based, with mining, oil and banking stocks all being sold off. HSBC, the UK’s biggest bank by market value, bucked the trend after it reported solid full-year numbers. The FTSE 100 index fell below 6,000 for the first time since October last year after Asian markets started the week with heavy falls, but soon moved back over it as it stumbled off sesison lows. . By midday the FTSE 100 was 1.5 per cent lower at 6,027.7, a loss of 89 points. Mid-cap investment companies pressured the FTSE 250, which lost 261 points or 2.4 per cent to 10,804.4. Resource stocks moved sharply lower in line with entrenched fears that the sell-off would undermine demand for metals in emerging economies. Copper prices fell by about 4 per cent on commodities exchanges.

...

Man Group, the world’s largest listed hedge fund, saw its shares track global equities markets lower with a 3.6 per cent fall to 516½p

/..

[ozymandius]

9. Markets across Asia plunge

TOKYO - Markets in Asia and Europe fell again Monday, extending their slide into a second week as investors worried about a possible global slowdown dumped stocks that had surged in recent weeks.

Also sparking jitters was the yen's jump to a three-month high against the dollar as investors reversed so-called yen-carry trades. A decline in this trading practice, which involves borrowing money at Japan's ultra-low interest rates to invest in higher-yielding assets elsewhere, could hurt global liquidity.

Markets in Hong Kong, Australia, the Philippines, Malaysia, India and
South Korea all fell sharply Monday, continuing their declines from last week, when a 9 percent plunge in Chinese stocks on Tuesday triggered cascading selloffs on Wall Street and other global markets.

-cut-

Signals so far suggest that China is determined to prevent a speculative bubble in share prices, which more than doubled last year and rose to a record high a week ago, investment house Morgan Stanley's chief economist Stephen Roach said in a report issued last week.

http://news.yahoo.com/s/ap/20070305/ap_on_bi_ge/world_markets

[ozymandius]

2. Today's Market WrapUp

Love Triangle?
BY BRIAN PRETTI

Love Triangle?... Nope, I promise I'll leave any comments regarding US astronauts out of this entirely. It's been awhile since bringing up the subject of Japan. From a long cycle perspective I’m bullish. Quite simply, if one believes the Asian economic sphere has a very bright future in terms of economic growth possibilities, as we do, it's very hard not to be optimistic about Japan. Will there be bumps along the way? Absolutely. A very serious global economic recession could interrupt continued upward movement of the Nikkei at any time, but it seems a pretty good bet right now that the long term and very punishing bear market in the Nikkei started in 1990 saw its final lows a number of years back. But, as always, true bull markets never move in a straight line. And so we saw the Nikkei show us one of the worst 2006 developed economy equity market returns, after having turned in a very decent 2005. In short, what lies ahead for the Japanese equity market and what should we be focused upon in terms of supporting the rationale for the Nikkei continuing to be in the midst of a long cycle recovery? Here are what I hope to be a few helpful thoughts.

-cut-

So let's stop for just a second and start adding up a few facts. First, we already know there is more than plenty of global capital roaming the Earth looking for a home, or at best a parking place for some period of time. Secondly, we already know that in large part excess capital has helped compress real rate of return possibilities in any number of investments relative to historical precedent, as it has likewise lowered risk premiums to near historic lows, changing the risk/reward profile of many asset classes in its wake. Japan opening up M&A will certainly create new investment opportunity and will attract global capital of some magnitude searching for returns greater than can be earned in already overcrowded global asset classes. If we step back and very simply have a look at the long term chart of the Nikkei, it's pretty darn clear that the financial markets are not only beginning to price in this change, but may in fact be showing us that the next leg of the recovery in the Nikkei is in the offing.

-cut-

One final thought on Japanese equities that may seem a bit of a stretch, but bear with me here. We all know that China is literally swimming in foreign currency reserves at the moment, primarily dollars. We also know that China has stated many a time as of late that they intend to diversify these reserves. Okay, here it comes. Would it make sense for China to invest in Japanese equities? In other words, would it make sense for China to invest even a small portion of its foreign reserves in the very companies that are the largest foreign goods and services suppliers to China? (Remember, the numero uno importer to China is Japan). I’m not so sure this isn't the very destination for some of China's excess reserves at some point, especially under any scenario of short term price duress. Yet another potential bid under Japanese equities to come? It sure could be. Certainly China will not benefit in a really big way from the change to come in Japan allowing triangle mergers as will other major global corporate citizens domiciled in the US, Europe, etc. who've been operating in Japan for some time. But there's nothing to stop China from investing foreign currency reserves directly in Japanese equities, not only to gain exposure and greater corporate equity ownership in the Asian economic bloc, but also to participate in what may be a firmer tone to come in the Japanese equity market longer term. Nothing like owning a piece of one of your largest goods and services suppliers to create co-aligned interests, now is there? It's just a thought.

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

[Ghost Dog]

20. China to use forex reserves vigorously: central bank

http://english.peopledaily.com.cn/200703/05/eng20070305_354409.html

A new state investment company in charge of investing China's vast foreign exchange reserves will be established, according to Wu Xiaoling, vice governor of the central bank.

Wu said preparations for the new company has just started, the exact date for its founding depends on the preparatory progress and the way it operates is yet to be studied.

She said the China Central Huijin Investment Co. will be a component department under the new company, but the role it plays is unlikely to make a marked change.

Wu denied previous media reports that the company would raise 200 billion U.S. dollars, saying that the total quota will be determined by the actual need.

"Financial stocks will definitely be included, as China Central Huijin Investment Co. has already invested in this field and it will be part of the forthcoming company," said the vice governor.

/...

[UpInArms]

26. that's why the dollar is up this morning - rumors

Wu denied previous media reports that the company would raise 200 billion U.S. dollars, saying that the total quota will be determined by the actual need.

and this is why the market is quaking:

http://www.reuters.com/article/bondsNews/idUSN0524582620070305

excerpt:

"There's another round of selling here. It's important to remember that one of the catalysts for the sell-off, as it began last Tuesday, was some concerns about what the Chinese government was going to do to regulate its markets, and those decisions are going to be made today," said Arthur Hogan, chief market analyst at Jefferies & Co. in Boston.

[Ghost Dog]

27. China to strive to reduce trade surplus, says Premier

http://english.peopledaily.com.cn/200703/05/eng20070305_354290.html

China will strive to reduce its " excessively large" trade surplus to ensure the sustained development of both domestic economy and foreign trade this year, said Premier Wen Jiabao at the just-opened annual full session of the 10th National People's Congress (NPC) Monday.

The premier made the remarks in the government work report to 2, 890 deputies to the NPC, the country's top legislature, at the Great Hall of the People in Beijing.

...

To reduce the hefty trade imbalance, the premier said the government will limit export of products whose manufacture is highly energy consuming or highly polluting while supporting export of high value-added products and products with Chinese trademarks, upgrading the processing trade and expanding the export of service and agricultural products.

For the part of imports, Wen stressed that imports of energy, raw materials, advanced technologies and equipment, and key spare parts and accessories will be bolstered.

The premier promised China will keep improving the mechanism for setting the Yuan exchange rate, easing the imbalance in international payment and optimizing foreign investment environment.

/...

[Ghost Dog]

28. China vows to improve setting of RMB exchange rate

http://english.peopledaily.com.cn/200703/05/eng20070305_354293.html

Chinese Premier Wen Jiabao said Monday the nation will improve the mechanism for setting the RMB exchange rate and seek ways to use the massive state foreign exchange reserves appropriately.

...

The major problem in the world capital market was the excessive amount of U.S. dollars, which has led to its devaluation. RMB appreciation not only helps strike market speculation, but is also beneficial to maintaining a stable economy, according to Fan.

...

The country is seeking more channels to ease the pressure generated by rising foreign exchange reserves, allowing businesses to keep a larger share of their foreign income and encouraging financial investment abroad in the form of qualified domestic institutional investors (QDII).

Contrary to its past policies, China has implemented stricter regulations on incoming foreign exchanges and loosened rigid controls on outgoing reserves, said Huang Zemin, head of the International Finance Institute of East China Normal University.

/...

[Ghost Dog]

29. China sets 8 percent growth target for 2007

http://english.peopledaily.com.cn/200703/05/eng20070305_354289.html

China plans to gear down its economic hike to eight percent, a level lower than the staggering 10.7-percent GDP (gross domestic product) growth rate in 2006, said Premier Wen Jiabao in a government work report on Monday.

"The most important task for us is to promote sound and fast economic growth," said the premier to 2,890 lawmakers from around the country at the opening meeting of the Fifth Session of the Tenth National People's Congress (NPC), China's top legislature.

"We need to greatly improve the quality and efficiency of economic growth," Wen said.

...

A report released by the World Bank on February 14 predicted a 9.6-point growth in China's economy this year. Louis Kuijs, senior economist on China and writer of the report said China has great potential improving its productivity.

/detail, comment...

[Neshanic]

35. China decides to slow down "Bladerunner" look of nation makeover.

[ozymandius]

3. Today's Report

10:00 AM ISM Services Feb
Briefing Forecast 57.0
Market Expects 57.5
Prior 59.0

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

[UpInArms]

40. US Feb ISM below concensus - 54.3% vs 59% in Jan

13. U.S. Feb. ISM services below consensus 57.5%
10:01 AM ET, Mar 05, 2007 - 13 minutes ago

14. U.S. Feb. ISM services 54.3% vs 59.0% in Jan.
10:01 AM ET, Mar 05, 2007 - 13 minutes ago

[nitpicker]

4. European shares slide too.

BBC:

World stock drop hits second week

Stock markets look set for a wobbly ride this week, analysts said
The global stock market slump has powered into its second week, pushing the UK's main share index below 6,000 for the first time since October.
By midday the FTSE 100 had recovered slightly but was trading down 97.8 points, or 1.5%, at 6,018.4.

In the past five sessions, about £111bn has been wiped off the index's value.

The drop mirrored heavy losses in Europe and Asia, with investors dumping stocks because of concerns they are overvalued and growth will slow.

"It looks like it's becoming a domino, with one market pulling down the other and I don't know where the domino effect will stop," said Jose Vistan of AB Capital Securities.

"You throw away technical and fundamentals out of the window," he explained. "Emotions are the ones driving share prices right now."

When there's such a big market move in such a short period of time, there's that element of surprise and confusion

Teruhisa Ishikawa
Mizuho Investors Securities


Graph: the FTSE 100
Q&A: Will markets recover?

With investors getting increasingly jittery, the steep falls on the stock exchanges have started to ripple through to the commodities markets, and especially oil.

A barrel of US sweet crude was down by $1.12 a barrel to $60.52, while London's main Brent crude contract lost $1.02 to $61.06.

More weakness?

The current stock slump was triggered last week by the biggest drop on China's market in a decade.

That fed into fears about the state of the US economy at a time when many investors were questioning whether share prices had risen too far too quickly.

Many of the world's top indexes and shares had climbed to levels not seen since the dotcom bubble burst in 2000.

On Monday, Japan's Nikkei 225 had its worst day since June - largely a result of the continued rise in the yen - which hit its highest rate against the dollar in three months.

A strong currency makes Japanese goods more expensive abroad and cuts the profits of Japanese firms when overseas earnings are brought home.

It also means that investors who borrowed yen to take advantage of low interest rates and then put the cash into assets such as equities, would now be looking to close positions and pay off their loans, analysts said.

Volatility

Leading declines on Monday in Tokyo were exporters such as Toyota Motor and Canon, and the Nikkei closed 3.4%, or 575.68 points, lower at 16,642.25, its lowest level since December and the largest daily plunge since June 2006.

Shanghai's composite index lost 3.5%, Taiwan shares closed down 3.7%, and the main Indian market had its lowest close in five months.

In Europe, France's Cac and Germany's Dax indexes also slipped, both losing more than 2%.

Volatility probably will continue as riskier assets are sold, analysts said.

"When there's such a big market move in such a short period of time, there's that element of surprise and confusion," said Teruhisa Ishikawa of Mizuho Investors Securities.

[ozymandius]

6. Oil prices drop as Asian markets slide

SINGAPORE - Oil prices dropped Monday amid continued declines in Asian markets and concerns about the world's economic outlook.

"There's a general sort of recoil from risk in the market," said Tobin Gorey, a commodity strategist with the Commonwealth Bank of Australia in Sydney.

Light, sweet crude for April delivery fell 78 cents to $60.86 a barrel in midmorning Asian electronic trading on the New York Mercantile Exchange.

"There are still ongoing ramifications from China's drop last Tuesday," Gorey said. "It was a jolt to the global economy."

http://news.yahoo.com/s/ap/oil_prices

[ozymandius]

8. Bush seeks ethanol alliance with Brazil

SAO PAULO, Brazil - Just an hour's drive outside this traffic-choked metropolis where
President Bush kicks off a Latin American tour Thursday, sugar cane fields stretch for hundreds of miles, providing the ethanol that fuels eight out of every 10 new Brazilian cars.

In only a few years, Brazil has turned itself into the planet's undisputed renewable energy leader, and the highlight of Bush's visit is expected to be a new ethanol "alliance" he will forge with Brazilian President Luiz Inacio Lula da Silva.

The deal is still being negotiated, but the two leaders are expected to sign an accord Friday to develop standards to help turn ethanol into an internationally traded commodity, and to promote sugar cane-based ethanol production in Central America and the Caribbean to meet rising international demand.

http://news.yahoo.com/s/ap/20070305/ap_on_bi_ge/brazil_us_ethanol

[AnneD]

43. There goes

the rain forest and Amazon Basin:mad:

[Ghost Dog]

81. The Big Green Fuel Lie

http://news.independent.co.uk/environment/climate_change/article2328821.ece

...

But there is a darker side to this green revolution, which argues for a cautious assessment of how big a role ethanol can play in filling the developed world's fuel tank. The prospect of a sudden surge in demand for ethanol is causing serious concerns even in Brazil. The ethanol industry has been linked with air and water pollution on an epic scale, along with deforestation in both the Amazon and Atlantic rainforests, as well as the wholesale destruction of Brazil's unique savannah land.

Fabio Feldman, a leading Brazilian environmentalist and former member of Congress who helped to pass the law mandating a 23 per cent mix of ethanol to be added to all petroleum supplies in the country, believes that Brazil's trailblazing switch has had serious side effects. "Some of the cane plantations are the size of European states, these vast monocultures have replaced important eco-systems," he said. "If you see the size of the plantations in the state of Sao Paolo they are oceans of sugar cane. In order to harvest you must burn the plantations which creates a serious air pollution problem in the city."

...

Sceptics, however, point out that existing legislation is unenforceable and agri-business from banned GM cotton to soy beans has been able to ignore legislation. "In large areas of Brazil there is a total absence of the state and no respect for environmental legislation," said Mr Feldman. "Ethanol can be a good alternative in the fight against global warming but at the same time we must make sure we are not creating a worse problem than the one we are trying to solve."

The conditions for a true nightmare scenario are being created not in Brazil, despite its environment concerns, but in the US's own domestic ethanol industry.

While Brazil's tropical climate allows it to source alcohol from its sugar crop, the US has turned to its industrialised corn belt for the raw material to substitute oil. The American economist Lester R Brown, from the Earth Policy Institute, is leading the warning voices: "The competition for grain between the world's 800 million motorists who want to maintain their mobility and its two billion poorest people who are simply trying to stay alive is emerging as an epic issue."

...

At its simplest, the argument for biofuels is this: By growing crops to produce organic compounds that can be burnt in an engine, you are not adding to the overall levels of carbon dioxide in the atmosphere. The amount of CO2 that the fuel produces when burnt should balance the amount absorbed during the growth of the plants. However, many biofuel crops, such as corn, are grown with the help of fossil fuels in the form of fertilisers, pesticides and the petrol for farm equipment. One estimate is that corn needs 30 per cent more energy than the finished fuel it produces.

Another problem is the land required to produce it. One estimate is that the grain needed to fill the petrol tank of a 4X4 with ethanol is sufficient to feed a person for a year.

/...

[Ghost Dog]

80. Food prices to rise as biofuel demand grows

http://www.ft.com/cms/s/007f09e2-cabf-11db-820b-000b5df10621.html

Consumers will have to pay more for food in coming years as demand from biofuel manufacturers has pushed up the prices of corn and other grains for the long term, a senior economist of the US government has warned.

Keith Collins, chief economist at the US department of agriculture, also said grain prices could be very volatile this year because of low global grain stockpiles.

"In the past when we have seen grain prices spike, they have always fallen back because the spike was normally the result of a supply shock, such as a bad harvest, but this time it is a demand shock, which will keep prices higher," Mr Collins told the FT.

Mr Collins, the most senior economist to warn of a longer-term shift in food prices, compared the change to that of oil prices over the past four years; there is almost a universal agreement that oil will remain relatively more expensive.

"I don't think this change has been fully appreciated yet," said Mr Collins.

He said higher grain prices had a knock-on effect on the livestock industry as corn, wheat and soyabeans, in the form of soyameal, are used as animal feed. Higher corn prices also affect tortilla prices in Mexico, which has forced the government to consider a price cap on one of the country's staple foods.

/...

[ozymandius]

7. Wall Street braces for bumpy ride

NEW YORK - If last week was Wall Street's big dive, this week will be where it tries to figure out how deep the water is.

Stocks are in for a shaky ride, now that the past five sessions have erased all of this year's gains and then some. Investors in the coming days will be grasping at any and all signals, both domestic and foreign, to see if the market can find a foothold.

Most market watchers now agree that last week's plunge doesn't signal disaster. The stock market, which pushed the Dow to 31 record highs since early October, had been climbing at a pace that was arguably more extraordinary than the depth of Tuesday's drop. Chatter about a big correction had been circulating the floors of stock exchanges for months — it just came as a shock that so much of the correction happened in a single day.

http://news.yahoo.com/s/ap/20070305/ap_on_bi_ge/wall_street_week_ahead

[ozymandius]

15. A Monday mess for Wall St.

NEW YORK (CNNMoney.com) -- Wall Street braced for an opening selloff as the international stock market retreat continued Monday.

At 7:15 a.m. ET, Nasdaq and S&P futures, which predict the direction of stocks at the U.S. open, were sharply lower.

Asian markets tumbled, with Tokyo's Nikkei down more than 3.3 percent. Meanwhile Hong Kong's Hang Seng closed off about 4 percent while the Shanghai Composite index, which was credited with sparking the selloff in U.S. markets last Tuesday, fell a more modest 1.6 percent, and stocks in Australia retreated more than 2 percent.

http://money.cnn.com/2007/03/05/markets/stockswatch/index.htm?postversion=2007030507

[RawMaterials]

34. I think that most normal people just learned about

the market down turn, over the weekend. They are going to be pulling their money out
this week. IMO

[AnneD]

47. And that makes us........

Abby Normal :rofl:

How are things in Raw Materials land lately???????

[RawMaterials]

48. I like being ab-normal

Things are great I'm been real busy at work witch is good. I wish I would have started to short New Century Mortgage when we
found out SO ID was stolen and used to get a Mortgage through that company. Thats been a real mess dealing with
the past year and a half. Other then that I would say life has been good though. Just trying to pay down our debt
and redo our bathroom.
How about you?

[AnneD]

54. OMG....

too bad about the ID theft. Hubby was hit to, via a credit app for a motorcycle. We have to deal with that every now and again.

We are slowly but surely paying our debts down. Our humble little trailer is a real blessing. We have paid 1/3 of the payment (the 5K valued trailer was sold to us for 3K). We financed through assorted friends (we have our own mutual aid society- friends that we can trust to borrow and pay back loans)and paid off one friend this week. It will be paid off fully in 5 more months.

The trailer lot is $402 and our electric bill ran $38 dollars (including 2 freezes)and when we figure out the propane-it will be cheaper. At the apartment-our electricty was never under $250 ($400 in the summer months) and rent was $445+ pet deposit and no amenities. Here we have wifi, cable, private laundry rooms, pool, lake to fish in, recreation room with exercise equipment and whirlpool, large screen tv, computer room. We are just 10 minutes from work and a tank can last me 2 weeks-3 if I am careful. Some of our neighbors travel trailers can run a quarter of a million and we see many interesting folks. Even figuring the cost of putting some of the furniture in storage....we are ahead in this deal.

I hope to redecorate this summer-the space is so small, it should be easy and inexpensive. By the time I am finished, I may not want to move out. We are so thankful that we can see and end to this road we have been on. I wouldn't wish this on anyone-but we were lucky that it strengthened our marriage and and made us better people. We took the hardest blows you can take and in the end we are still standing. The fact that I went through really hard times in the late 80's prepared me for what is surely going to hit some folks hard soon.

[ozymandius]

10. U.S. Treasury Secretary Starts Asia Tour

U.S. Treasury Secretary Henry Paulson kicked off a three-nation Asian tour in Tokyo on Monday amid turmoil in regional stock markets and the dollar's sudden drop against the yen.

Paulson will also meet top leaders in China and South Korea during his five-day swing through Asia, where most markets have plunged ever since Chinese stocks tumbled 9 percent last Tuesday.

-cut-

In Tokyo, Paulson was expected to meet Prime Minister Shinzo Abe and Finance Minister Koji Omi on Monday evening. Although Japanese officials declined to give details of their agenda, discussions will likely include the current fluctuations in regional stock markets and the dollar's value against the Japanese currency.

http://www.forbes.com/feeds/ap/2007/03/05/ap3483744.html

[ozymandius]

14. Paulson: Feeling good about U.S. economy

WASHINGTON (Reuters) -- U.S. Treasury Secretary Henry Paulson on Sunday said he feels good about the U.S. economy and does not see the country slipping into recession.

In an interview with ABC's "This Week," Paulson offered some soothing words for financial markets after a week of volatility following some remarks by former Federal Reserve Chairman Alan Greenspan that a recession was possible this year. Paulson acknowledged that an economic slowdown is possible, but said he saw a rosier outlook.

"Clearly, no one's got a crystal ball. So there's always a possibility that there will be a downturn, always a possibility," Paulson said. "But I don't see it. I think we have a healthy economy in the U.S."

http://money.cnn.com/2007/03/04/news/economy/paulson.reut/index.htm?postversion=2007030414

[burf]

31. I read that

Sixty Minutes reported that not all share Sec Paulson's optimism.

[Roland99]

42. Of course he doesn't. He knows what controls are in place to keep every dumb and happy.

[Ghost Dog]

11. The Confluence (Friday's Doug Noland Credit Bulletin)

http://www.prudentbear.com/articles/show/573

<long snip full of data...>

What a difference a week makes. Not many trading sessions ago global equity markets were generally near record highs and Credit spreads rested at record tightness. Global risk markets are now on much less sure footing.

Of course, faltering markets evoke pronouncements of “economic fundamentals remain sound” that, for me, always recall the history of the 1929 experience. Certainly, economic and asset market booms will engender faith in policies, policymakers and markets, not to mention a strain of fanaticism from the bullish camp. Persevering through a few bouts of financial tumult (and bearish prognostication) only forges a more emboldened bullish contingent.

Larry Kudlow’s op-ed piece in yesterday’s Wall Street Journal, “The Prosperity Boom”, captures the essence of today’s optimism.

“The high-tech, productivity-driven U.S. economy is more durable and flexible than its liberal-left critics will ever admit. It is a private-sector free-enterprise economy, not a government-planned one. Innovation is strong and entrepreneurial spirits are high. The four prosperity killers, a paradigm coined by Arthur Laffer many years ago, all look dormant: inflation, taxes and regulatory burdens are low, while free trade keeps expanding.”

Yet there’s a fundamental problem with the Kudlow, Art Laffer and bullish consensus view of the U.S. economic miracle: Finance is today hopelessly unsound. And the reality of this predicament is that if you lose your bearings and get your finance terribly wrong, well, other things (so-called “fundamentals”) end up not really mattering all that much. In general, a lot of decent economic policymaking can be more than negated by financial system mismanagement. More likely, Credit system misdeeds and resulting pricing distortions will elicit policy decisions which only exacerbate financial excess and Bubble tendencies. Credit Bubbles (and attendant asset inflation) tend to turn conventional analysis on its head, with “good” policies deemed those that work to prolong the fateful boom. Self-reinforcing asset Bubbles and policymaker complicity are virtually guaranteed – and pose a great systemic dilemma.

When it comes to so-called “prosperity killers,” a prolonged bout of rampant Credit and speculative excess has no equal. Moreover, a decent case can be made that, for example, cutting taxes and reducing regulator burdens during a burgeoning Credit Bubble will only exacerbate excess and resulting economic maladjustment. Promote “pro-growth” programs in the midst of terminal “blow-off” excesses and you’re hankering for a real mess. And, as we appreciate, confusing moderate consumer price inflation for astute policymaking and stable finance is a hallmark of the disasters back in the late-twenties in the U.S. and late-eighties in Japan. These are not a political views, but analyses of Credit, inflation, and speculation dynamics.

Not surprisingly, Mr. Kudlow and others are content already to target foreign scapegoats for our heightened financial and economic instability: “…The trigger for Tuesday’s drop undoubtedly came from China. The Chinese have sent a Shanghai flu across the globe.” He blames “higher reserve requirements for banks, tighter interest rates, stricter implementation of a capital-gains land tax, and perhaps some form of capital controls are all in the rumor mill. This sounds like root-canal advice from the U.S. Treasury and the IMF, which somehow are dissatisfied with 10% growth and 2% inflation in China. France, Germany, Japan or Latin America should have it so bad.”

Today’s economic policy fanatics haven’t met a Bubble they haven’t fallen for. This group also seems determined to keep their heads planted firmly in the sand, with analysis incredibly off the mark. In their (over-confident) minds, analyst warnings of the perils of poor lending, leveraged speculation, derivatives, Current Account Deficits and Bubbles have already been proven inept. All the same, the Chinese stock market was certainly not the “trigger” for heightened global market tumult. Instead, look directly to the realm of (U.S. gone global) “contemporary finance” – risky lending; imprudent risk intermediation, packaging and disbursement; rampant leveraged speculation; and sophisticated derivative trading strategies. The consequences of massive liquidity excess, global performance-chasing financial flows, trend exacerbating hedging-related trading, and unavoidable (Ponzi Finance) instability will inevitably come home to roost. It started this week.

Those believing that they are examining sound economic “fundamentals” should ponder the possibility that they are actually observing distorted signals (i.e. robust earnings growth, abundant liquidity, low Treasury yields, narrow Credit spreads, booming tax receipts, easily financed twin deficits, etc.) from a system embarked on an unsustainable financial path. At some point, financial crisis will force through a wrenching adjustment period. One can expect this process to be instigated and shaped by a radical change in the global liquidity backdrop and the flow of finance.

This week saw a tenuous backdrop lurch (as we’ve witnessed previously) into a significant event for highly correlated global risk markets. I’ll make a few observations: First, we’ve clearly reached the point where global Bubble excesses are so egregious and prevailing that overextended markets have basically lost their capacity for pullbacks that don’t incite fears of attempted mass exits and dislocations. Second, the principal contagion mechanisms are the hedge funds, “brokerage” proprietary trading desks, rampant capricious speculative flows, and ballooning global derivatives markets. Third, and significantly, The Confluence of several key developments quickly pushed the risk markets to a state of heightened tumult.

/plenty more...

[Ghost Dog]

13. Plunge just beginning?

http://www.financialsense.com/fsu/editorials/mchugh/2007/0304.html

There has been a multi-year Broadening Top forming in the Dow Industrials, which is nearly identical to the same Broadening Tops that occurred just prior to stock market plunges in 2000, 1987, 1986, 1973, 1966, 1957, and 1929. Same pattern. In each instance, prices took forever to reach point e, then plunged. The 2007 version is now starting its plunge. Last week’s carnage is simply the first small degree wave of what should be a protracted and severe decline throughout most of 2007. Stock market declines often forecast recessions. Once a recession is common knowledge (it already has started), the plunge in Blue Chips will accelerate. Common knowledge will occur once banks are attacked by real estate loan, heat-seeking examiners. Common knowledge will occur once public companies start restating earnings. Common knowledge will occur once bankruptcies hit the news. As it deepens, jobs will be lost, politicians will be thrown out, savings will disintegrate. You know the routine. The only way out of this mess will be a massive and drastic Dollar devaluation, accomplished through the printing and distribution of trillions of dollars to households across America. Fiscal policy is already too much of a mess to be counted on to stop this recession. Another war will just make matters worse. No, this time it will take monetary hyperinflation the likes of which America has never seen before. You see, the Fed has had a lot of practice over the past two decades. They will be ready to serve.

/...

[ozymandius]

12. HSBC profit edges 5% higher; bad debt surges

LONDON (MarketWatch) -- Banking giant HSBC Holdings on Monday reported a 5% rise in annual profit, with strength in emerging markets and investment banking helping limit the impact of a sharp jump in bad-debt charges as defaults in its U.S. mortgage book surged.

-cut-

Bad-debt charges jumped 36% to $10.57 billion, roughly in line with expectations after the bank issued an unprecedented profit warning over U.S. subprime lending in February.

That warning, the first in the bank's history, came after higher U.S. interest rates and a stagnant housing market began to take their toll on borrowers who had been relying on the rising value of real-estate markets to help them refinance their mortgages.

http://www.marketwatch.com/news/story/hsbc-profit-rises-asia-offsets/story.aspx?guid=%7BE58ADAF6-518C-434F-A08E-12FC04D33F4C%7D

[Ghost Dog]

16. US triggers $11bn HSBC fall-out

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article1465662.ece
March 04, 2007

EUROPE’s biggest bank, HSBC, is to write off $11 billion to cover mounting losses in its troubled American offshoot, HSBC Finance Corporation.

Stephen Green and Mike Geoghegan, the bank’s chairman and chief executive, are making the huge provisions — which will be announced alongside tomorrow’s full-year results — in an attempt to draw a line under the bank’s miserable experience since buying the business, then known as Household, for $14 billion (£7.2 billion) four years ago. The duo are under unprecedented pressure from shareholders over ballooning bad debts at its US mortgage business.

HSBC’s US business has faced escalating losses from thousands of low-income families who have been unable to repay loans. But the scale of its write-off, largely linked to the US business, will surprise many investors; they will want to know whether the worst is now over and whether the write-off, technically called an “impairment charge”, covers anticipated losses for this year as well.

The provision is equivalent to a third of last year’s operating profits of $30 billion and half its pretax profits, expected to be just north of $22 billion. This will be the highest-ever profit made by a British-based bank. To put it in context, the write-off is equivalent to the overall profits of £5.7 billion announced by HBOS, Britain’s fourth-largest bank, last week.

HSBC has already replaced its senior North American management team, and Doug Flint, the group’s finance director, and Geoghegan have been charged with putting the operation back on track.

The problems within the division will cast a cloud over the results. But in order to calm the nerves of investors, Green is expected to raise the final dividend by nearly 10%.

The bank is keen to show that the growth in Asia and other emerging countries has compensated for its US problems. Three weeks ago the bank was forced to issue the first profit warning in its 142-year history after a hastily arranged board meeting.

The warning came after the bank discovered that rising problems in the US mortgage business meant that the group’s bad-debt provisions had surged by $1.75 billion — 20% higher than analysts and investors had been forecasting. The bank is understood to have lent about $11 billion in so-called second-lien mortgages — a form of high-risk loan where a bank only has a second claim if a borrower defaults.

The problems have led to a cull of senior executives. Two weeks ago, Bobby Mehta, chief executive of HSBC Finance Corporation (HFC) and also head of the bank’s overall North American operations, resigned. Sandy Derickson, chief executive of HSBC Bank USA, also stepped down. The two were some of the highest-paid executives at HSBC, sharing $40m in performance-related bonuses in 2004 and 2005.

...

In a move that shocked the City, HSBC admitted it had seriously underestimated the number of people in America who were defaulting on second home loans in portfolios bought by the bank. What was even more shocking was that many of the loans had been taken out just six months earlier.

The mounting problems have raised questions about HSBC’s decision to buy Household. At the time of the deal, investors were sceptical about the wisdom of HSBC buying a consumer-finance group that specialised in sub-prime lending, or loans to people with patchy credit records.

/...

[bigworld]

19. People with bad credit are defaulting on their loans?!

Um, I could have seen that coming. What the hell did HSBC expect?

[Roland99]

24. (Sub-Prime Lender) New Century facing criminal probe

New Century facing criminal probe
Subprime lender warns covenants likely to be breached
http://www.marketwatch.com/news/story/criminal-probe-covenants-add-new/story.aspx?guid=%7B40E6DF4B%2D5149%2D40FE%2DAAAC%2D7CF5491E806E%7D

As troubles continue to roil the market for subprime mortgages, New Century Financial Corp. says that it's technically in default with several lenders and is under investigation by federal regulators.

Analysts cautioned it could spell the end of the Irvine, Calif.-based company the second-largest player in the subprime industry.
Subprime mortgages are offered to home buyers who fail to meet the strictest lending standards. Lenders specializing in such loans, like New Century, rely in part on big banks known as warehouse lenders to finance their operations. These backers require that subprime lenders meet certain minimum financial targets; otherwise, they have the right to end the business relationship.

According to a regulatory filing made late Friday, the U.S. Attorney's Office for the Central District of California is conducting a federal criminal inquiry into trading in New Century securities as well as accounting errors.
The latest developments call into question whether the firm can survive, analysts said on Monday.

And, related, Countrywide is down about 10% in early trading today.

[ozymandius]

17. pre-open numbers and blather (OUCH!)

08:00 am : S&P futures vs fair value: -13.3. Nasdaq futures vs fair value: -17.2. Early indications suggest the long-awaited market sell-off that reared its head last week will continue when today’s opening bell rings. The bearish disposition is an offshoot of what transpired in foreign markets overnight, as a rising yen continues to fuel concerns of an unwinding in the carry trade. Japan's Nikkei plunged 3.3% while Hong Kong's Hang Seng led the way a 4.0% decline; the European bourses are all down in the neighborhood of 2.0%.

New Century Financial (NEW) saying on Friday it's facing a federal criminal probe, HSBC Holdings (HBC) booking $10.6 bln on losses on bad loans and an analyst downgrade on Countrywide Financial (CFC) are exacerbating an already overly pessimistic market also plagued by increasing problems associated with the sub-prime mortgage market.

[westerebus]

18. Dollar shift?

Up coming meeting to adjust exchange rates,diversify current currency holdings, and unify monetary policy in gulf states is closing in on the their (oil producing states)time line. The squeeze on "loose" capital is on. What this means for the dollar, I'm not sure. Good luck.

[Ghost Dog]

23. Dollar Ready to Finally Turn? (DUPE, see dollar watch)

http://www.dailyfx.com/story/strategy_pieces/trade_or_fade/Dollar_Finally_Ready_to_Turn__1173073824179.html?engine=rss&keyword=article

DUPE - See dollar watch - sorry.

/..

[DemReadingDU]

21. strizi64 posted an earlier thread w/ good articles to read

Nikkei books biggest loss in 9 months
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2755328

[AnneD]

45. I would be willing to bet that...

befor this is over-WS looses all the points it gained during the BUSH recovery-if you can call it that.
Most of us on this thread have been saying that the books have been cooked for several years now. This economy has not been benefiting the average worker-and that is 2/3rds of your economic engine right there. The only way most folks could keep up was to refi-and that will soon grind to halt. The party is over before Bush could send the next DEM President the bill.

[UpInArms]

22. dollar watch

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

Last trade 84.18 Change +0.44 (+0.53%)

Dollar Ready to Finally Turn?

http://www.dailyfx.com/story/strategy_pieces/trade_or_fade/Dollar_Finally_Ready_to_Turn__1173073824179.html

The dollar wobbled and bounced around the 1.3200 level last week as traders fled leveraged positions following the sudden crunch in global equity markets. Economic data out of the US didn’t provide much support for the greenback either, as Q4 GDP was revised significantly lower to 2.2% from 3.5%. Meanwhile, other indicators sent conflicting signals regarding various aspects of the economy. In the manufacturing sector, Chicago PMI had been expected to edge up to the 50 level but hit the tape at a disappointing 47.9 – signaling contraction in the sector. This gloomy report was offset by a solid ISM manufacturing reading, as the figure rebounded to 52.3 and instantly neutralized the poor Chicago PMI figure. On the other hand, a 7.8% contraction in durable goods orders was weighed down by excess inventories. Consumer confidence reports indicated that demand should have been somewhat stronger, as the reading hit a five year high of 110.3 on labor market expansion and accelerated wage growth. In the housing sector, a 3.0% surge in existing home sales helped offset some of the 16.6% plunge in new home sales. However, with new home sales a better leading indicator and sub-prime lenders imploding faster and faster, the sentiment regarding the sector has become increasingly negative.

The dollar looks primed to breakout on the charts, and the economic calendar next week could perpetuate the scenario even sooner as ISM services is on tap on Monday. The reading is expected to ease back to 57.5 from 59.0, but traders will be focusing on the breakdown of the report for the employment component ahead of Friday’s Non-Farm Payrolls, which are estimated to fall back as well. Adding to the tumultuous mix is the Fed’s release of the Beige Book – the central bank’s analysis of economic activity around the country. Should traders see a marked slowdown in the labor market and services sector, dollar bears could propel EURUSD solidly through the 1.3250 level. However, surprisingly strong readings and an optimistic outlook by the Fed could lead the pair to make a definitive turn lower sub-1.3100. – TB



...more...

Dollar Bull Returns...This Time For an Extended Visit

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/Dollar_Bull_Returns___This_Time_For_1173099209489.html

EURUSD – The decline to start the week confirms our bearish bias. Ultimately, we look for the decline that began at 1.3262 to test at least 1.2757. This is where the decline from 1.3262 would equal the 1.3370-1.2865 decline. The 1.3370-1.2865 decline took 29 days and the 1.2865-1.3262 rally took 33 days. Given that the decline now underway is the third wave (either a C or a 3), look for this decline to accelerate and reach the cited target in faster than 30 days. The major long term supporting trendline intersects with the 1.2700 figure at the end of March. Near term support is at the 2/22 low at 1.3080 but look for a test of 1.3018, which is the 161.8% extension of 1.3262-1.3142 / 1.3096.

<snip>

USDJPY – Price has broken below the confluence of the 200 day SMA, 61.8% of 114.42-122.21, and trendline drawn off of the May 2006 and December 2006 lows. We mentioned Friday that “a break of this support (daily close below) would indicate a major change in trend.” The USDJPY closed below the 200 day SMA on Friday but held above the trendline (on a closing basis). That trendline is at 1.1685 today and is now resistance. The next major support is the 12/5/2006 low at 114.44.

<snip>

GBPUSD – The decline below 1.9260 strongly suggests that a major top is in place at 1.9915. Ultimately, we look for the ending diagonal to be fully retraced, which means that price should test the lower 1.8000’s. Former support at 1.9260 is now resistance. Short term support is at the 61.8% of 1.8515-1.9919 at 1.9054 (200 day SMA is at 1.9036).

...more...

[Ghost Dog]

25. Pound Drops Versus Euro, Dollar as Asian Stocks Extend Selloff

http://www.bloomberg.com/apps/news?pid=20601083&sid=arw_.D9pCzQk&refer=currency

March 5 (Bloomberg) -- The pound fell as Asian stocks tumbled to the lowest in two months, leading investors to avoid riskier investments such as the so-called carry trade.

The carry-trade involves borrowing where interest rates are relatively low, as in Switzerland and Japan, and using the funds to invest in higher-yielding assets elsewhere. High yielding currencies such as the pound, South African rand and New Zealand dollar fell against the euro last week, and the yen and franc gained.

``If, as anticipated, the equity markets continue to slide we'll see a further unwinding of the carry trade which will hurt the pound', said Armin Mekelburg, a Munich-based currency strategist at Italy's UniCredit.

Against the euro, the pound traded at 68.36 pence at 8 a.m. in London from 67.88 pence on March 2. It was also at $1.9228, from $1.9435.

A global selloff in equities last week wiped $1.5 trillion from the value of shares, on concern U.S. growth will stall.

The yield on the benchmark 10-year gilt, which moves inversely to the price, fell 2 basis points to 4.75 percent. The price of the 4 percent note due September 2016 gained 0.16, or 1.6 pounds per 1,000 pound ($1,965) face amount, to 94.33. Bond yields move inversely to prices.

The pound may come under further pressure on speculation the Bank of England will lag behind the European Central Bank in raising interest rates. BOE will lift rates once again this year, while the ECB will probably lift them twice more, according to a Bloomberg News survey of economists. Both banks meet to set rates this week.

/...

[UpInArms]

30. A Monday mess for Wall St.

http://money.cnn.com/2007/03/05/markets/stockswatch/index.htm

NEW YORK (CNNMoney.com) -- Wall Street braced for an opening selloff as the international stock market retreat continued Monday.

At 8:42 a.m. ET, Nasdaq and S&P futures, which predict the direction of stocks at the U.S. open, were sharply lower.

Asian markets tumbled, with Tokyo's Nikkei down more than 3.3 percent. Meanwhile Hong Kong's Hang Seng closed off about 4 percent while the Shanghai Composite index, which was credited with sparking the selloff in U.S. markets last Tuesday, fell a more modest 1.6 percent, and stocks in Australia retreated more than 2 percent.

European markets also opened lower and continued to slide. The dollar lost ground against the yen but gained against the euro.

"Basically, it's follow the leader," said Peter Cardillo, chief market economist for Avalon Partners. "Obviously what started in Asia spread to the weak European bourses. The real nitty-gritty of the decline is the fear factor that is increasing."

Cardillo said the Dow Jones industrial average could be in a for a rough day if it falls below the 12,000 level for the first time since November. It starts the day Monday less than 1 percent above that psychologically significant benchmark.

Cardillo said he could see the U.S. markets, whose major indexes declined more than 4 percent last week, losing another few percent this week. But he doesn't expect this selloff to turn into a full-scale bear market with sharper, long-term declines.

"I think we're going to be in for a bumpy ride, but I don't think we're heading for a correction that could lead to a bear market," he said. He said eventually the money being pulled out of Asian markets needs to find a home, and that some of it could end up in U.S. stocks to help stabilize markets here.

...more...

blowin' smoke up my skirt!

[burf]

32. I guess if they keep repeating

things are just fine, everyone will soon believe it true.

As far as "some of it could end up in U.S. stocks to help stabilize markets here." That maybe true. And a lot of it could wind up buying ponies too!

[Neshanic]

33. CNBC happy talk...End of year will be higher. Just a itty-bitty correction.

[Renew Deal]

36. Charting Stocks: ..And The Crash of 2007 Begins

http://chartingstocks.net/2007/03/04/and-the-crash-of-2007-begins/

[UpInArms]

37. 9:35 EST blood in the water

Dow 12,056.50 57.60 (0.48%)
Nasdaq 2,347.20 20.80 (0.88%)
S&P 500 1,376.86 10.31 (0.74%)
10-Yr Bond 4.489% 0.026

NYSE Volume 161,852,000
Nasdaq Volume 148,766,000

09:15 am : S&P futures vs fair value: -10.0. Nasdaq futures vs fair value: -14.5.

09:00 am : S&P futures vs fair value: -9.6. Nasdaq futures vs fair value: -13.5. The futures market is off its worst levels but the modest rebound offers little conviction on the part of the bulls still struggling to find a market bottom amid all of the recent bloodletting. Overblown fears of a recession and a serious decline in earnings growth continue to act as an overhang. The fact that there isn't any notable Monday-morning M&A news making headlines further underscores the guarded state investors are in currently as further market declines would equate to cheaper asset prices for prospective acquirers.

08:30 am : S&P futures vs fair value: -13.2. Nasdaq futures vs fair value: -21.0. The stage remains set for stocks to open sharply lower across the board as investors grow increasingly more risk averse. S&P 500 and Nasdaq 100 futures are decidedly below fair value while Dow futures suggest the blue-chip index may fall below the psychologically significant 12,000 mark for the first time since November. Even though current fears of recession and a bear market are unwarranted, since fundamentals simply haven't changed, oversold markets tend to get more oversold and, when the market is going down, every bearish argument gets greater credibility as everything bearish takes center stage.

08:00 am : S&P futures vs fair value: -13.3. Nasdaq futures vs fair value: -17.2. Early indications suggest the long-awaited market sell-off that reared its head last week will continue when today’s opening bell rings. The bearish disposition is an offshoot of what transpired in foreign markets overnight, as a rising yen continues to fuel concerns of an unwinding in the carry trade. Japan's Nikkei plunged 3.3% while Hong Kong's Hang Seng led the way a 4.0% decline; the European bourses are all down in the neighborhood of 2.0%.

New Century Financial (NEW) saying on Friday it's facing a federal criminal probe, HSBC Holdings (HBC) booking $10.6 bln on losses on bad loans and an analyst downgrade on Countrywide Financial (CFC) are exacerbating an already overly pessimistic market also plagued by increasing problems associated with the sub-prime mortgage market.

06:23 am : S&P futures vs fair value: -14.2. Nasdaq futures vs fair value: -20.3.

06:22 am : FTSE...6010.40...-105.80...-1.7%. DAX...6454.06...-149.26...-2.3%.

06:22 am : Nikkei...16642.25...-575.68...-3.3%. Hang Seng...18664.88...-777.13...-4.0%.

[UpInArms]

38. 9:38 EST PPT steptic applied

Dow 12,091.66 22.44 (0.19%)
Nasdaq 2,353.47 14.53 (0.61%)
S&P 500 1,380.18 6.99 (0.50%)
10-Yr Bond 4.489% 0.026

NYSE Volume 198,592,000
Nasdaq Volume 174,310,000

[AnneD]

39. Morning Marketeers....

:donut: and lurkers. I was listening to the news this am (before I could get to a computer) and heard about the Asian markets-ouch. We are going to have an interesting day to say the least. All the shows this weekend were making happy talk-STILL. Well they have the suckers in the tent and they are going to pull up the stakes here in a minute or so.
Gas has gone up here another 10 cents and we aren't even to Spring Break. The natives are starting to get restless here. Folks had a bit of breathing room between the increased mortgage and gas to get to their job-but that is vanishing and fast.
Also in the we are SOOOOOO SCREWED category, I worked extra this weekend in a Skilled Nursing unit (you are not sick enough for a hospital, but not well enough for a Nursing home, and certainly not well enough to go home). We get people that cannot walk and care for themselves and still are on IV meds and pain killers-total care with meds. I had 19 patients-NINETEEN. The LVN took care of the meds (kept falling behind on times)and I had 2 aids. Four folks to feed, bathe, weigh, take vital signs, walk, medicate, asses, do dressing changes, breathing treatments, and care for NINETEEN total care patients. I was grateful no one died on my shift. On the evening and nights it goes down to one Nurse and 2 aids. Now, with what they charge, you can't tell me they 1)aren't making money 2)can't afford more staff 3)can't pay us more. Folks this is the tip of the iceberg. We are SOOOOO SCREWED.

Happy hunting and watch out for the bears. Hibernation is over.......

[Roland99]

44. U.S.A. Land of the Free? Home of the Brave? Give me your tired, your poor?

Nope:


Only the strong (and rich) survive.

[UpInArms]

41. 10:15 EST Markets ROAR into the Green

Dow 12,166.17 52.07 (0.43%)
Nasdaq 2,373.80 5.80 (0.24%)
S&P 500 1,388.73 1.56 (0.11%)
10-Yr Bond 4.503% 0.012

NYSE Volume 726,274,000
Nasdaq Volume 505,133,000

10:00 am : The indices are off their opening lows but are still on the defensive as the bulk of industry leadership remains negative. Right out of the gate, 144 of the 147 S&P industry groups were in the red, led by declines across a multitude of economically-sensitive areas. Aluminum is pacing the way (-2.9%), while Materials sector (-1.1%) counterparts like Gold (-2.2%) and Steel (-2.0%) also rank among today's biggest laggards. Energy (-1.0%) is this morning's second worst performing sector as concerns about slowing global economic growth also make oil less attractive. Refiners and Explorers are plunging 2.6% and 1.7%, respectively. Crude for April delivery is down 2.0% at $60.40/bbl.

As an aside, the White House has recently said that the global economy remains strong, but declined to comment on the ongoing sell-off in the stock market. Nonetheless, the government's comments are contributing to the market's bounce within the last 15 minutes as the Dow briefly turned positive. DJ30 -10.61 NASDAQ -10.39 SP500 -4.44 XOI -0.8% NASDAQ Dec/Adv/Vol 2204/450/268 mln NYSE Dec/Adv/Vol 2022/313/102 mln

09:40 am : As expected, stocks open sharply lower. With the market increasingly pessimistic, as evidenced by a growing sense of risk aversion ever since last Tuesday's sell-off, investors have found little incentive to start bottom fishing anytime soon. The continued sell-off in overseas markets, sparked in part by another rally in the Japanese yen, are exacerbating concerns that hedge funds are being forced to liquidate equity positions to pay off low-cost yen loans.

Throw in some more negative developments on the sub-prime mortgage front and the bears continue to find fodder to support their argument that valuations are still unsustainable at current levels. DJ30 -32.18 NASDAQ -15.24 SP500 -6.92 NASDAQ Vol 88 mln NYSE Vol 50 mln

[DemReadingDU]

46. Wow, Amazing!

Who ever would have guessed!


:sarcasm:

[Eugene]

49. US court rejects appeal by ex-Worldcom CEO Ebbers

UPDATE 1-US court rejects appeal by ex-Worldcom CEO Ebbers
Mon Mar 5, 2007 10:14am ET

WASHINGTON, March 5 (Reuters) - The Supreme Court said on Monday
that it rejected an appeal by former WorldCom Inc. Chief Executive
Bernard Ebbers, who was convicted of orchestrating an $11 billion
accounting fraud that led to the largest U.S. bankruptcy.

-snip-

In appealing to the high court, attorneys for Ebbers argued that the
trial judge should have required the government to grant immunity
to several prospective defense witnesses.

They also argued the trial judge wrongly instructed the jury that it
could convict Ebbers on the basis that he engaged in "conscious
avoidance" of the fraud at WorldCom.

A U.S. appeals court in New York last year rejected the same
arguments by his attorneys and upheld Ebbers' conviction. Without
any comment or recorded dissent, the Supreme Court justices
denied the appeal.

-snip-

http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2007-03-05T151423Z_01_N05273933_RTRIDST_0_USA-EBBERS-CRIME-UPDATE-1.XML

[Demeter]

85. Well, Hush Mah Mouth! Will Wonders Never Cease!

The Supremes actually ruled against a big fraudster? What, didn't he return his pledge form to the GOP?

[Ghost Dog]

50. European stocks ends lower for fifth day

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070305:MTFH28699_2007-03-05_16-40-39_L05196996&type=comktNews&rpc=44

PARIS, March 5 (Reuters) - European shares closed lower for a fifth straight session on Monday, with miners and steel makers leading the march down, but some investors ventured back into selected stocks, helping the market close well off session lows.

...

But this was not enough to turn around sentiment, bedevilled by ongoing global economic and foreign exchange worries, and the FTSEurofirst 300 index of top European shares unofficially closed 1 percent lower at 1,448.99 points -- bringing to 6.5 percent the market's slide over the past five sessions.

/..

[Ghost Dog]

51. FTSE settles off session lows as US markets steady nerves

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39146.5008796296-891078868&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

London equities fell on Monday, but closed above session lows as steadier US trade helped settle nerves after another turbulen session around the world. The FTSE 100 closed down 0.9 per cent at 6,058.7a fall of 57 points. Earlier in the day, the FTSE 100 index fell below 6,000 for the first time since October last year after Asian markets started the week with heavy falls, but soon moved back over it as it stumbled off sesison lows. News overnight that Tokyo’s Nikkei 225 lost over 3 per cent of its value in its worst daily performance for nine months reverberated around London dealing rooms in during the morning, but as the Dow Jones Industrial Average was flat at 12,11.9, nerves were soothed. Resource stocks moved sharply lower in line with entrenched fears that the sell-off would undermine demand for metals in emerging economies.

/...

[Ghost Dog]

52. Swiss SMI Finds No Way Out Of The Red

http://www.postfinance.ch/pf/content/en/topics/etrade/news/stockreportchev.html

Swiss shares closed deep in negative territory on Monday in line with other global markets even though they gained some ground as Wall Street moved into the black after early losses.

The Swiss Market Index closed 121.85 points or 1.38% lower at 8676.86 with all stock pointing south. The Swiss Performance Index fell 100.18 points or 1.44% to 6,877.09.

/...

[Ghost Dog]

53. Eurozone services sector loses (some) steam in February: survey

http://www.eubusiness.com/Factsfig/eurozone-services.42

(BRUSSELS) - Growth in the service sector of the 13 countries sharing the euro eased more than expected in February, according to a survey released Monday.

The eurozone purchasing managers index (PMI) for the service sector, compiled by the research group NTC Economics, fell to 57.5 points in February from 57.9 in December.

Private economists had forecast that the survey would fall to 57.7 points after reaching a six-month high in January.

Despite the lower level of activity, the vast sector continued to show resilience with the 44th consecutive month of growth, which is indicated by a figure over 50.

Weaker domestic demand weighed on growth in new business, although the slowdown was likely to be only temporary since expectations of business activity growth rose for the fourth month, NTC Economics said.

/...

[MilesColtrane]

55. "10:15 EST Markets ROAR into the Green"

1:38 EST The Mouse that Roared

Dow -0.80

[Dammit Ann]

56. Great article on the Stock Market.

Read it, it explains alot...


http://www.dissidentvoice.org/Mar07/Whitney04.htm

[Ghost Dog]

57. Too right.

...

The tinkering of the PPT is sure to erode confidence in the unimpeded activity of capital markets. It’s astonishing to think that, after years of singing the praises of the “free market” as the ultimate expression of God’s divine plan, these same conservative ideologues and “market purists” favor a strategy for direct intrusion. The actions of the Plunge Protection Team prove that it’s all baloney. The “free market” is merely a public relations myth with no basis in reality. Saving the system will always take precedent over ideology; just as the “invisible hand” will always be overpowered by the manicured and mettlesome fingers of banking elites and Wall Street big wigs. It’s their system and they’re not going to let it get wiped out by some silly commitment to principle.

The free market system is supposed to be “self cleansing” through cyclical purges of over-inflated equities and over-extended speculators. Do we really want “central planning” from an unelected Market-Nanny that re-jiggers the system according to its own economic interests?

The Plunge Protection Team may wrap itself in pompous rhetoric, but it operates like a Fiscal Politburo inserting itself into the market in way that promotes the narrow interests of its own constituents. It’s an outrage.

...

[specimenfred1984]

87. I've watched it in the S&P futures since May 04

exactly the way it's described: a big buyer comes in and the market volume almost stops after that as all traders are afraid. It's fascism, pure fascism and all traders are aware of it.

Derivatives are probably nothing however as the people who own them can afford to lose billions. The real estate fraud is the real deal though as it affects a lot of people who have nothing to do with derivatives. I've read that Bank of America and Citibank will be offering to buy up "sub-prime" loans by offering to refinance these peoples' risky loans for free in order to get their business.

Of course, their lives will be in servitude of those loans but hey, fascism sucks. It'll be really crucial to the future ability of the U.S. to survive as a democracy to come out of this huge fraud with some actual regulation that addresses the stock markets and real estate markets and big banks.

It's the 1920's all over again only with much bigger propaganda networks, our chances are slim.

[citizen snips]

58. AMD Won't Meet 1Q Revenue Outlook

SAN FRANCISCO (AP) -- Advanced Micro Devices Inc. warned Monday that it was unlikely to meet its first-quarter revenue guidance of $1.6 billion to $1.7 billion, the latest in a series of disappointments for investors in the struggling chip-maker.

The company's stock briefly fell to a new 52-week low in morning trading before recovering some lost ground.

AMD is hurting from a brutal price competition with much-larger rival Intel Corp. and has been punished by investors for a product lineup that some say is in dire need of an upgrade.

Sunnyvale-based AMD did not disclose details of the revenue shortfall in a brief statement before financial markets opened Monday.

But in a presentation at the Morgan Stanley Technology Conference in San Francisco, CEO Hector Ruiz said the company overestimated the demand from the PC and server makers that now provide the bulk of AMD's business.

more...
http://biz.yahoo.com/ap/070305/amd_warning.html?.v=9

[citizen snips]

59. Service Sector Growth Slows in February

NEW YORK (AP) -- The nation's service sector expanded at a slower-than-expected rate in February amid a slowdown in new orders that economists think may help cool inflation.

The Institute for Supply Management, which is based in Tempe, Ariz., said on Monday that its index of business activity in the service sector was 54.3, down from 59.0 in January. Wall Street analysts had expected a reading of at least 57.0 for the latest month.

A reading above 50 indicates expansion, while one below that indicates contraction.

February marked the 47th consecutive month of business activity growth, the trade group said.

more...
http://biz.yahoo.com/ap/070305/economy.html?.v=6

[citizen snips]

60. Sector Snap: Software Makers Fall

NEW YORK (AP) -- Shares of some software makers fell Monday, as the markets overall edged lower on further declines in the Asian markets and fears that a crisis among subprime lenders is spreading to prime mortgages.

Additionally, pulling technology stocks lower was an announcement from Advanced Micro Devices Inc. that the chip maker expects to miss its first-quarter revenue outlook.

With less than an hour in the day's trading session, the Dow Jones industrial average was down 10.66 to 12103.44, and the Nasdaq composite index was down 14.81 to 2353.19.

Shares of software sector heavyweight Microsoft Corp. fell 6 cents to $27.70 on the Nasdaq Stock Market.

more...
http://biz.yahoo.com/ap/070305/software_sector_snap.html?.v=1

[citizen snips]

61. Grains Up, Soybeans Down

CHICAGO (AP) -- Grain and soybean futures were mostly higher in trading Monday on the Chicago Board of Trade.

Wheat for May delivery rose 7 cents to $4.80 3/4 a bushel; May corn rose 5 3/4 cents to $4.26 3/4 a bushel; May oats rose 4 1/4 cents to $2.50 1/4 a bushel; May soybeans fell 3 cents to $7.50 1/2 a bushel.

Beef and pork futures declined in trading on the Chicago Mercantile Exchange.

April live cattle fell .30 cent to 97.35 cents a pound; April feeder cattle fell .20 cent to $1.0532 a pound; April lean hogs fell 1.35 cent to 65 cents a pound; May pork bellies fell 1.63 cent to $1.0457 cents a pound.

http://biz.yahoo.com/ap/070305/board_of_trade.html?.v=4

[citizen snips]

62. Sector Snap: Airline Stocks Mixed

NEW YORK (AP) -- Airline stocks slipped in mixed trading Monday, as broader stock indexes seesawed through the day on worries about economic weakness and bargain hunting.

The Amex Airline Index was down less than 1 percent in afternoon trading, with eight of its 11 component stocks declining. Most percentage swings were slight, less than 1 percent.

Stock indexes bumped up and down through the day on concerns about weakness in the subprime mortgage market, which focuses on customers with poor credit. That helped mute the effect of falling oil prices, which generally aid airline shares.

A barrel of oil dropped $1.45 to $60.19 in afternoon trading on the New York Mercantile Exchange.

more...
http://biz.yahoo.com/ap/070305/airlines_sector_snap.html?.v=1

[citizen snips]

63. Sector Snap: Housing

NEW YORK (AP) -- Stocks in the homebuilder sector fell sharply Monday, drawn down as investors battered the mortgage-lending industry amid worries that a crisis among subprime lenders is spreading to prime mortgages.

The Philadelphia Housing Sector index was off 2 percent in midday trading and most of the country's largest builders saw their shares shed more than 2 percent.

Subprime lenders, or lenders to people with poor credit ratings, were slammed Monday, with the top five each losing more than 25 percent. Recently, major financial institutions such as HSBC Holdings PLC have been taking writedowns on mortgage loans as a growing number of subprime borrowers are delinquent or in default.

One of the biggest subprime lenders, New Century Financial Corp. dropped nearly 70 percent to $4.68, and is more than 90 percent off its 52-week high, after it announced late Friday that regulators were probing accounting issues and criminal activity.

more...
http://biz.yahoo.com/ap/070305/housing_sector_snap.html?.v=1

[citizen snips]

64. Sector Snap: Film Companies

NEW YORK (AP) -- An all-star cast in biker comedy "Wild Hogs" generated the top box office take over the weekend for Walt Disney Co.

The film starred John Travolta, Martin Lawrence, William H. Macy and Tim Allen, and pulled in about $38 million. Disney's film studios also took in $8.6 million with "Bridge to Terabithia," a drama based on a children's book.

Coming in a distant second to "Wild Hogs," Paramount Pictures' crime thriller "Zodiac" pulled in $13.1 million. Paramount's "Norbit," which stars comedian Eddie Murphy, generated $6.4 million. "Black Snake Moan," from Paramount Vantage, pulled in $4 million. The studios are units of Viacom Inc.

Sony's film studios gained $11.5 million with "Ghost Rider," another biker movie, that stars Nicholas Cage and Eva Mendes.

more...
http://biz.yahoo.com/ap/070305/film_companies_sector_snap.html?.v=1

[citizen snips]

65. Chips Snap: AMD, Marvell Shares Fall

NEW YORK (AP) -- Chip stocks went on the retreat Monday after industry bellwether Advanced Micro Devices Inc. warned it would miss its first-quarter revenue outlook.

AMD warned that it does not expect to meet first-quarter sales guidance of $1.6 billion to $1.7 billion. Shares dropped 34 cents, or 2.4 percent, to $13.84 in afternoon trading on the Nasdaq Stock Market after hitting a 52-week low of $13.53 earlier in the session.

Elsewhere in the sector, Marvell Technology Group Ltd.'s stock fell after JPMorgan analyst Shawn Webster cut his rating on the stock to "Neutral" and said he was concerned about uncertainty surrounding the company's options probe and slowing growth.

Marvell is one of more than 200 companies that have launched internal investigations or are under scrutiny from federal regulators for possibly backdating stock option grants.

more...
http://biz.yahoo.com/ap/070305/sector_snap_semiconductors.html?.v=1

[citizen snips]

66. Rates Fall in Treasury Auction

WASHINGTON (AP) -- Interest rates on short-term Treasury bills fell in Monday's auction with rates on six-month bills dipping to the lowest level since early December.

The Treasury Department auctioned $21 billion in three-month bills at a discount rate of 4.965 percent, down from 5.035 percent last week. Another $17 billion in six-month bills was auctioned at a discount rate of 4.855 percent, down from 4.950 percent last week.

The three-month rate was the lowest since these bills averaged 4.940 percent on Jan. 8. The six-month rate was the lowest since 4.840 percent on Dec. 4.

The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,874.50 while a six-month bill sold for $9,754.55.

more...
http://biz.yahoo.com/ap/070305/treasury_bills.html?.v=1

[citizen snips]

67. HSBC Says Profit Rise in 2006

LONDON (AP) -- HSBC Holdings PLC, Europe's largest bank by market value, reported Monday that profit rose 5 percent in 2006 despite losses in its mortgage operation in the United States that led to the removal of two senior executives.

Chief Executive Michael Geoghegan attempted to fend off criticism that the bank had provided loans in the United States to people who were not in a position to pay their debts.

"This is not trailer park lending," Geoghegan said, adding that the typical HSBC Finance customer has average household income of $83,000, is 41 years old, has two children and a home worth $190,000. "This is Main Street America."

However, he said the problem loans would take as long as two to three years to work out.

more...
http://biz.yahoo.com/ap/070305/earns_britain_hsbc.html?.v=6

[citizen snips]

68. Lenders Take Beating in Subprime Fallout

NEW YORK (AP) -- Mounting concerns on Wall Street that mortgage lenders might be hurt by increasing defaults and delinquencies sent investors fleeing Monday from some of the biggest names in the industry.

The meltdown among lenders that specialize in home loans to people with weak credit, known in the industry as subprime lenders, again ravaged stock prices. Financial institutions from Britain's HSBC Holdings PLC to subprime leader Countrywide Financial Corp. sank amid reports of strained portfolios as loans went bad.

The latest to rattle the markets was New Century Financial Corp., the nation's second-largest subprime lender. The Irvine, Calif.-based company disclosed a criminal probe into the trading of its securities, and into the lender's accounting procedures.

Already beleaguered investors were swift to react. New Century's shares lost 60 percent on Monday -- wiping $532 million from its market value. Wall Street, still wobbly after last week's huge plunge, also punished the rest of an industry blamed for loosening their lending standards amid an eroding housing market.

more...
http://biz.yahoo.com/ap/070305/subprime_lenders_fallout.html?.v=3

[citizen snips]

69. Gold Futures Fall, Erasing This Year's Gains, on Equity Slide

March 5 (Bloomberg) -- Gold in New York fell, erasing this year's gains, as investors sold the metal to cover losses in global equity markets. Silver also declined.

Gold is little changed this year after gaining as much as 8.5 percent. Prices fell 6.2 percent last week after a global sell-off of equities wiped out $1.8 trillion in world market value. Investors who own gold in StreetTracks Gold Trust, an exchange-traded fund, sold about $617 million last week.

``You've got some wealth deterioration in the stock market,'' said Frank McGhee, head metals trader at Integrated Brokerage Services LLC in Chicago. ``Gold is a store of value and it's convertible. People who need cash raise it through gold.''

Gold futures for April delivery fell $4.90 or 0.8 percent, to $639.20 an ounce on the Comex division of the New York Mercantile Exchange. Prices earlier declined to $635.10, dropping for the fifth session in a row, the longest slump since mid-September.

more...
http://www.bloomberg.com/apps/news?pid=20601012&sid=a7j8e0u0jUxw&refer=commodities

[citizen snips]

70. JPMorgan Tops Goldman as Largest Hedge-Fund Manager

March 5 (Bloomberg) -- JPMorgan Chase & Co. overtook Goldman Sachs Group Inc. to become the largest U.S. hedge-fund manager, according to a new survey, as its flagship fund gained almost 25 percent while Goldman's fell for the first time in seven years.

Hedge-fund assets at New York-based JPMorgan soared 74 percent to $34 billion last year, according to a release from Absolute Return magazine. That includes $20 billion at Highbridge Capital Management LLC, whose assets have almost tripled since JPMorgan acquired the firm in 2004. Goldman's hedge-fund assets rose 48 percent to $32.5 billion.

The firms, along with Bridgewater Associates Inc., are the only U.S. hedge-fund managers with more than $30 billion of assets, and combined they hold 7 percent of the industry's $1.4 trillion in client funds globally. Institutions such as pension funds and endowments gravitate toward funds with track records, allowing them to grab a larger share of fees.

``By sheer numbers, the institutional investors have the money,'' Matthew Zorn, senior hedge-fund analyst with Commerzbank AG in New York, said today in an interview. ``To sell to a pension fund, you need a CFO; you need a disaster- recovery plan; you need staff and infrastructure. Investors say they want to take risks, but they really don't.''

more...
http://www.bloomberg.com/apps/news?pid=20601014&sid=adZeSfBhpojc&refer=funds

[citizen snips]

71. Nasdaq 100 Leaders & Laggards: SIRI KLAC

NEW YORK (AP) -- Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. helped drag down the Nasdaq 100 Monday, after former Attorney General John Ashcroft criticized a plan to combine the nation's only two satellite radio operators.

Ashcroft was hired by opponents of Sirius' proposed acquisition of XM Satellite, and late last week raised antitrust concerns for the plan.

Shares of Sirius lost 18 cents, or 5.1 percent, to end at $3.37, while XM Satellite dropped 51 cents, or 3.7 percent, to $13.47.

The Nasdaq 100, which includes 100 of the largest nonfinancial securities traded on the Nasdaq, dropped 13.09 points to close at 1,712.94. The Nasdaq composite dropped 27.32 to 2,340.68.

more...
http://biz.yahoo.com/ap/070305/nasdaq_100_leaders_laggards.html?.v=1

[citizen snips]

72. Stocks End Lower After Erratic Session

NEW YORK (AP) -- Wall Street seesawed through an erratic session Monday, trying to stabilize but ultimately finishing near its lows of the day amid worries about mortgage defaults, a strengthening yen and tumbling stock markets abroad.

The major indexes fluctuated throughout the day, with the Dow Jones industrials bobbing between positive and negative territory as investors tried to size up where the market was headed after last week's big decline. The Dow finished 63 points lower, having fallen eight of the last nine sessions.

The market remained jittery about about losses over soured subprime loans, or loans to customers with poor credit ratings, as HSBC Holdings PLC, Europe's largest bank, said its 2006 earnings rose 5 percent but that it suffered $10.6 billion on losses on bad loans from its U.S. subprime mortgage operations.

Also pushing stocks down, a rising yen added to concerns over an erosion of the yen carry trade, which is the process of borrowing the low-yielding yen to acquire assets in other currencies with greater yields. A slowdown could hurt liquidity worldwide. By early afternoon, the U.S. dollar was below 116 yen, trading near three-month lows after falling from above 120 yen less than a week ago.

more...
http://biz.yahoo.com/ap/070305/wall_street.html?.v=35

[citizen snips]

73. S&P Backs CSC Ratings

NEW YORK (AP) -- Credit ratings agency Standard & Poor's said Monday it backed its rating on information technology services provider Computer Sciences Corp. after the company completed a probe of its stock option grants.

CSC is one of at least 203 companies that have launched internal investigations or been questioned by federal regulators over possible backdating of stock option grants.

S&P said it will leave unchanged an "A-" corporate credit rating on the company's senior unsecured debt, and an "A-2" commercial paper rating on the El Segundo, Calif.-based company. The outlook for the company is stable.

"The ratings affirmation reflects CSC's completion of its internal investigation of its stock option grant practices, and concurrent filings of its financial statements with the SEC, which cured any default under its indentures for which waivers were being sought pursuant to its consent solicitation," said S&P analyst Philip Schrank in a statement.

Shares of CSC fell 39 cents to close at $51.40 on the New York Stock Exchange.

http://biz.yahoo.com/ap/070305/computer_sciences_s_p.html?.v=1

[RUMMYisFROSTED]

74. Redroom, redroom!

nt

[citizen snips]

75. Barnes & Noble leads retail-sector slide; A&P, Pathmark gain

NEW YORK (MarketWatch) -- Retail stocks followed the rest of market lower Monday, with the sector's benchmark off 1.4%.

The S&P Retail Index (Chicago Options:^RLX - News) ended at 498.09.

Among the casualties was Barnes & Noble (NYSE:BKS - News), shares of which fell more than 11% to $35.56 after saying it expects to come up well short of Wall Street estimates for its fiscal 2007 profit.

Other retailers under pressure included Circuit City Stores Inc. (NYSE:CC - News), off 1.5% to $17.48; Nordstrom Inc. (NYSE:JWN - News), a 3.6% loser at $50.49; and Office Depot Inc. (NYSE:ODP - News), down 2.1% to $32.90.

On the upside, Pathmark Stores Inc. (NasdaqGM: PTMK - News) shares jumped 10% to $12.35 after the supermarket chain agreed to be acquired by larger Northeast rival Greater Atlantic & Pacific Tea Co. (NYSE:GAP - News) for $1.3 billion. Shares of Great Atlantic & Pacific, which is known as A&P, rose 5.3% to $32.50.

http://biz.yahoo.com/cbsm/070305/51a34be03e984af69c69e70c75d2d24c.html?.v=2

[citizen snips]

76. Stock sell-off is about half-way done: Moody's

NEW YORK (MarketWatch) -- The recent stock market sell-off will most likely be a "garden variety correction" without substantial economic fallout, with U.S. stocks falling 10% and high-yield corporate spreads widening by 100 basis points, Moody's Economy.com said on Monday.

"Investors remain seemingly optimistic," said Mark M. Zandi, chief economist at Moody's Economy.com, in a conference call on the global sell-off. "A great deal of euphoria is still out there. There needed to be a reevaluation of risk."

A look at the CBOE Volatility Index , which tracks market expectations of near-term volatility, shows that volatility was measurably higher in other difficult periods, like the Russian bond default or the Thai devaluation of the mid-1990s. Also, the spread, or difference in yield, between Treasurys and emerging market and U.S. high-yield debt remains narrow.

Excesses remain across the markets and there's been very little distinction made in the risk represented by different asset classes, such as New York City housing, U.S. housing, prime office space, S&P 500 stocks, and 10-year Treasury bonds.

more...
http://biz.yahoo.com/cbsm/070305/d366e62843bf42109483d03f04ef4815.html?.v=1

[citizen snips]

77. S&P 500 Leaders & Laggards: CIT, CFC

NEW YORK (AP) -- Financial services provider CIT Group Inc. helped drag down the Standard & Poor's 500 Index Monday.

CIT shares dropped $3.42, or 6.1 percent, to close at $52.34 on the New York Stock Exchange, as concerns about mortgage lending spread across an array of financial stocks.

The S&P 500 dropped 6.67 points to 1,380.50.

Countrywide Financial Corp. lost $1.82, or 4.9 percent, to close at $35.20 on the Big Board. Countrywide, a subprime mortgage lender, slid with its peers as the industry's woes spread, with the drag compounded by a downgrade on the shares from Lehman Brothers.

more...
http://biz.yahoo.com/ap/070305/s_p_leaders_laggards.html?.v=1

[citizen snips]

78. DJIA Leaders & Laggards: AA T

NEW YORK (AP) -- A decline in shares of alumina producer Alcoa Inc. helped pull the Dow Jones Industrial Average to a lower close Monday.

The 30-stock Dow fell 63.69 to end at 12,050.41.

Alcoa shares dropped 97 cents, or 3 percent, to end at $31.73 on the New York Stock Exchange, ending lower for its second straight day of trading.

AT&T Inc. fell 72 cents, or 2 percent, to end at $35.72 on the NYSE. The Supreme Court said it won't consider the telecommunications company's appeal of a decision allowing a class-action lawsuit against it to proceed.

more...
http://biz.yahoo.com/ap/070305/leaders_laggards_djia_close.html?.v=1

[Ghost Dog]

79. Commodities hit hard as risky assets are shed

http://www.ft.com/cms/s/70ba98d8-cb4c-11db-b436-000b5df10621.html

The recent volatility in global financial markets hit the commodities sector hard on Monday, as hedge funds and other investors scurried to reduce their risky investments.

Nickel prices tumbled 5 per cent, while copper and zinc fell almost 3 per cent and gold prices traded at levels more than 7 per cent lower than before the start of last week’s market turmoil.

This decline in commodity prices is – like the other recent swing in equity markets – still relatively modest compared with the movements seen in market crises during recent decades.

However, the movements follow a period when markets have been extremely calm – meaning that investors are now being forced to reassess the low volatility strategies.

This repositioning is prompting some unusual price swings and heavy trading flows, particularly in sectors that have been the focus of risk-taking over the past year, such as credit derivatives, emerging markets and commodities.

“I don’t think anything has fundamentally changed for commodity markets. I think it is just a case of investors selling their holdings to pay for losses they may have incurred elsewhere,” said Kevin Norrish, commodities analyst at Barclays Capital.

An adviser to a London-based fund of hedge funds added: “The big theme of the moment is deleveraging and derisking.”

/...

[UpInArms]

82. final numbers and blather (no one goes home happy today)

Dow 12,050.41 63.69 (0.53%)
Nasdaq 2,340.68 27.32 (1.15%)
S&P 500 1,374.12 13.05 (0.94%)
10-Yr Bond 4.518% 0.003

NYSE Volume 3,448,570,000
Nasdaq Volume 2,377,570,000

4:20 pm : After seeing roughly $1.8 trillion in world market value erased last week, it was anyone's guess as to whether continued fears of a global economic slowdown would carry over into today's trading. To the dismay of the bulls relishing an eight-month winning streak on the S&P 500 before last week's sell-off, tepid bargain-hunting efforts Monday were eventually met with another aggressive round of profit taking.

Further deterioration in overseas markets ushered in a new week of nervousness, which merely reminded investors that oversold markets tend to get more oversold before a bottom can be formed. Japan's Nikkei plunged 3.3% while Hong Kong's Hang Seng led the way a 4.0% decline, as a rising yen continued to feed fears about the ramifications of carry trades being unwound by hedge funds that borrowed money at low rates.

The European bourses lost about 1.0% on average while the Nasdaq led the way domestically, tacking a 1.2% decline onto last week's 5.8% drubbing. All 10 economic sectors posted losses; of the 147 S&P industry groups, 138 closed lower.

On a positive note, St. Louis Fed President Poole dismissed fears of a recession for the second time in as many trading sessions. However, he also discounted the need for possible government intervention, saying it doesn't make sense to respond to stock market declines unless they're extremely large and disruptive. Poole said that it would take a 1987-like market meltdown to justify interest rate cuts.

Adding insult to injury to a market now fixated on everything negative and inundated with overblown recession fears was another round of negative developments in the sub-prime mortgage space. New Century Financial (NEW 4.38 -10.27) tumbled 70% after reports of a federal criminal probe exacerbated concerns about a domino effect knocking over the prime lenders as well.

Countrywide Financial (CFC 35.17 -1.85), already under additional pressure after being downgraded at Lehman Brothers, was the worst performer (-5.0%) in the Financials sector. As the most influential of the 10 S&P sectors, the financial sector's 1.6% decline was among the biggest reasons for yet another day of disappointment for the bulls. DJ30 -63.59 NASDAQ -27.32 SP500 -13.05 NASDAQ Dec/Adv/Vol 2491/592/2.15 bln NYSE Dec/Adv/Vol 2736/595/1.87 bln

3:30 pm : After initially spiking to afternoon lows, the major averages have almost as quickly bounced back and are again trading in split fashion. Surprise, surprise, Technology turning the corner is largely responsible for the recent recovery.

It is worth noting, though, that 60 of the sector's 80 components are still trading lower and that Tech, which ranks third among this year's worst performing sectors (-3.4%) would still be in the red if it weren't for gains of at least 1.0% from bellwethers like CSCO, IBM, and AAPL. DJ30 +6.94 NASDAQ -10.90 SOX -0.3% SP500 -4.53 NASDAQ Dec/Adv/Vol 2334/749/1.92 bln NYSE Dec/Adv/Vol 2586/713/1.54 bln

3:00 pm : No real change in sentiment as split sector leadership continues to dictate this afternoon's action. Tech, Industrials, Staples and Health Care continue to trade in positive territory, but their combined gains still aren't enough to offset a 0.7% decline in Financials as another round of negative developments in the sub-prime mortgage space continues to take a toll on prime lenders (e.g. CFC -3.4%, WM -2.3%).

On a positive note, the Energy sector is clinging to a small gain even in the face of plunging oil prices; but a huge 2.6% sell-off in crude fueled largely by concerns of a global economic slowdown provide even less conviction on the part of bargain hunters selectively picking up a couple of beaten-down, large-cap energy names (e.g. XOM +0.6%, CVX +0.3%). DJ30 +10.02 NASDAQ -9.08 SP500 -3.05 NASDAQ Dec/Adv/Vol 2202/860/1.78 bln NYSE Dec/Adv/Vol 2478/799/1.43 bln

[54anickel]

84. Ewww, will the DOW break under 12K this week?...n/t

[RawMaterials]

86. i wont even look at buying in until its around 11700

then maybe a little bit at a time.
I think the rest of 2007 into 08 is a bear market, with
a turn around after a dem gets the white house. Or
maybe will go back to 10578 then who ever is running for the Dem's
can say look at the stock market its at or below what is was
when *'sh took office.

[Joanne98]

83. U.S. Economy: Services Expand Less Than Forecast

.S. Economy: Services Expand Less Than Forecast (Update1)

By Shobhana Chandra

March 5 (Bloomberg) -- Service industries in the U.S. grew last month at the slowest pace in almost four years, suggesting the economic slowdown may be spreading beyond housing and manufacturing.

The Institute for Supply Management's index of non- manufacturing businesses, which make up 90 percent of the economy, fell to a lower-than-forecast 54.3 after a January level of 59, the Tempe, Arizona-based group said. Readings above 50 mean that services are continuing to expand.

The report shows few signs of the pickup in economic growth forecast by Federal Reserve Chairman Ben S. Bernanke, making it likely policy makers will keep interest rates unchanged in coming months. Half of the 18 industries surveyed, including construction, finance and retailing, reported slower business.

``The housing market is unambiguously having a broader impact on the economy, including on the services sector,'' said Richard DeKaser, chief economist at National City Corp. in Cleveland. ``But there are other issues as well, and we're starting to see slower growth manifesting itself throughout. The Fed is likely to stay put in the near term.''

http://www.bloomberg.com/apps/news?pid=20601087&sid=aHNDfAnreQ8Q&refer=home