STOCK MARKET WATCH, Wednesday April 11

[ozymandius]

Source: DU

Wednesday April 11, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 649 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2292 DAYS
WHERE'S OSAMA BIN-LADEN? 2002 DAYS
DAYS SINCE ENRON COLLAPSE = 1962
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

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AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON April 10, 2007

Dow... 12,573.85 +4.71 (+0.04%)
Nasdaq... 2,477.61 +8.43 (+0.34%)
S&P 500... 1,448.39 +3.78 (+0.26%)
Gold future... 681.50 +4.60 (+0.67%)
30-Year Bond 4.91% -0.01 (-0.20%)
10-Yr Bond... 4.72% -0.02 (-0.44%)






GOLD, EURO, YEN, Loonie and Silver

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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

---

Read more: DU

[ozymandius]

1. Today's Market WrapUp

WEEKLY CHARTS

-lotsa charts-

SUMMARY

Last week we said, "The major indices--in terms of price--stalled at resistance, pulled back intra-day to support, bounced from it, and ended the week mid-range between support and resistance. At the same time, most of the technical indicators finished near the zero line confirming the "neutral" price action. In other words, at the present time the markets are in a rarely seen "bona-fide" neutral state. Usually it takes some sort of a news item that is perceived by market participants as "important"--it never truly is--which tips the scale over to the bullish or the bearish side. Consequently, for next week we suggest to remain mostly in cash as long as the indices remain between support and resistance. Switch to modestly long on a close above resistance or to modestly short on a close below support (10%-20% of total capital). Finally, re-evaluate when the indices reach the first upside or downside targets, and either take profits or add to positions."

This week, the "bona-fide" neutral state developed a positive bias as prices advanced modestly and all indicators turned positive. The only "wrinkle" was the huge negative divergences recorded by virtually every indicator we follow. Going into next week, as long as the SP remains above 1425 and NASDAQ remains above 2450--on a daily closing basis--the bias will remain positive and prices ought to drift higher. If the SP and NASDAQ close below the levels we mentioned then it will be time to re-evaluate.

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

[Nimrod2005]

5. Good morning Ozy.

Thanks.

Looks like an uptrend is in play here. Enjoy!

[ozymandius]

7. Good morning.

The futures say so too. Alcoa's earnings report has puffed up market confidence apparently.

[AnneD]

25. Morning Marketeers....

:donut: and lurkers. After my rant about inflation at the grocery store, I saw the press play about Rudi's guesstimates of prices of milk, bread, and gas. I think this whole story is a fake news story to hit his campaign. I know my Hugby couldn't tell you the price of any groceries, he just doesn't track those kind of things. I think it might be one of those guy things (unless they are accountants), so I really can't hold that against him. He probably hasn't shopped since the Nixon administration.

Which makes me wonder, how much of these 'new price adjustment' will be reflected as profits, increased consumer sending/debt. I am sure I can guess how it will affect savings.


Happy hunting and watch out for the bears.

[Ghost Dog]

20. NEW RULES FOR GLOBAL INVESTING IN 2007

http://www.financialsense.com/fsu/editorials/dorsch/2007/0410.html
by Gary Dorsch

Jesse Livermore, widely regarded as one of the greatest stock market operators of all-time, considered himself a humble student of the market until his last day in 1940. “I study the market, because it’s my business to trade. In the forty years which I have devoted to making speculation a successful business venture, I am still discovering new rules to apply to that business,” he once remarked. "Experience has taught me the way a market behaves is an excellent guide for an operator to follow. Observation gives you the best tips of all, and the behavior of a certain market is all you need at times. You observe, and then experience shows you how to profit by variations from the usual, that is to say, from the probable.”

Had Livermore been operating in today’s markets, he might have found it intriguing that the direction of the Japanese yen would become a key driver of the Dow Jones Industrials. Traditional indicators such as the health of the US economy, company earnings, cash flow, and future sales forecasts are all taking a backseat to forecasting the direction of the heavily manipulated Japanese yen in the foreign exchange market, in order to predict the Dow Jones Industrials.

...

http://imgred.com/

Someday, the Dow Industrials’ obsession with the dollar /yen exchange rate will fade into oblivion. But for now, it’s the endless flow of cheap capital from Tokyo that is pumping up the DJI Index to record highs, at a time when the US economy is slowing towards zero percent growth, and S&P 500 earnings growth is expected to slow to +6 to 8% YoY in Q’1, after 4-½ years of straight double-digit profit gains.

...

Fuzzy Math and US Jobs Reports

US Labor apparatchniks have a history of tinkering with employment reports. Last August, Labor revised an original 128,000 increase in payrolls into a gain of 230,000 jobs and September’s 51,000 increase was revised upwards to a 148,000 gain. Last November, Labor apparatchniks raised a lot of eyebrows, when their fuzzy math produced an extra 810,000 jobs from April 2005 through March 2006 than originally reported, all with the simple stroke of a pen.

So traders bet correctly, when Labor reported a “stronger-than-expected” 180,000 new jobs for March with the jobless rate slipping to 4.4%, a six year low, implying the US economy remains resilient despite a slowdown in housing. Labor went two steps further and revised upward the estimate for jobs created in January and February by 16,000 each month to 162,000 and 113,000 respectively.

...

Euro /Yen Carry Traders wreck Havoc on ECB

...

The Euro’s strong recovery to a record high of 160-yen is linked to ideas that the European Central Bank will hike its repo lending rate by 50 basis points in the months ahead, and won’t be matched by the Bank of Japan. Thus, in a strange twist of logic, signals of a tighter ECB money policy are actually elevating European gold prices, because of the distorting impact of the “Euro /yen” carry trade.

...

What’s fascinating about the Euro /yen exchange rate these days, is that tiny moves in interest rate differentials between Europe and Japan are leading to explosive moves in the cross rate. The Euro’s recovery from 151-yen to as high as 160-yen today, was accompanied by a mere 16 basis point increase in the Euro Libor rate over the Yen Libor rate. If the ECB has to lift its repo rate by at least 50 basis points to control the M3 money supply, without a similar increase by the Bank of Japan, the Euro /yen rate could soar, and in a strange twist, lift gold prices and German bund yields much higher, just the opposite of what the ECB would like to accomplish.

...

Shanghai Bubble Expands to Record Proportions

Jesse Livermore would have been intrigued by the Shanghai red chip market, which is reminiscent of the middle stages of the Nasdaq 1998-99 bubble. Left unchecked, the world is witnessing one of the greatest stock market rallies in history, ranked alongside Japan’s Nikkei-225 of 1986-90 and the Russian Trading System Index. The Shanghai Composite Index closed at 3,444-points, a record high, and has gained 25% since its widely reported 9% dive on February 27th.

All lip service and tightening measures by Chinese authorities to keep Shanghai red chips from surging higher haven’t turned back the Asian stampede. It’s highly doubtful that Livermore, who made $100 million during the 1929 stock market crash, would try to pick a top or start short selling this market. Foreign money is flooding into China, with its trade surplus doubling to $46.4 billion in the first quarter.

...

Livermore used to say there is nothing new under the sun in the stock market. But the “yen carry” trade is turning some long held fundamental beliefs about investing upside down. The Shanghai bubble has been seen before in different clothing, and it’s possible that it might never come back down to earth, much like the Brazilian and Russian stock markets.

/... Plenty more. Must read long, meaty article...

[ozymandius]

2. Today's Reports

10:30 AM Crude Inventories 04/06
Briefing Forecast NA
Market Expects NA
Prior 4307K

2:00 PM FOMC Minutes Mar 21

2:00 PM Treasury Budget Mar
Briefing Forecast -$95.0B
Market Expects -$90.0B
Prior -$85.3B

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

[UpInArms]

35. FOMC (cuts 1st quarter GDP forecast - raises inflation outlook)

06. Fed: Considering using forecasts to help explain rate policy
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

07. Fed still deadlocked on adopting specific inflation target
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

08. Fed staff cuts Q1 GDP forecast, raises inflation outlook
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

09. FOMC says fundamentals in place for capital spending pickup
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

10. FOMC sees modest growth in coming quarters
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

11. FOMC agreed further hikes may be needed to quell inflation
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

12. FOMC says will not be satisfied if inflation stays steady
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

13. FOMC worried downward trend to inflation had stalled
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

14. FOMC saw downside risks to growth, upside risks to inflation
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

15. FOMC wanted new statement to show they are dependent on data
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

16. FOMC: New wording should not cite possibility of hike 'only'
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

17. FOMC changed March 21 statement due to uncertain outlook
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

[Ghost Dog]

60. Minutes of meeting show Fed saw core inflation as predominant policy risk

http://www.forbes.com/afxnewslimited/feeds/afx/2007/04/11/afx3603329.html

WASHINGTON (Thomson Financial) - Federal Reserve Board Chairman Ben Bernanke and his colleagues on the Federal Open Market Committee continued to view the current rates of core inflation as 'uncomfortably high' at their meeting last month and pledged to watch incoming economic data closely before making a decision about future interest rate moves.

'The prevailing level of inflation remained uncomfortably high, and the latest information cast some doubt on whether core inflation was on the expected downward path,' the Fed said, according to the minutes of the March 20-21 meeting, released today.

'Most participants continued to expect that core inflation would slow gradually, but the recent readings on inflation and productivity growth, along with higher energy prices, had increased the odds that inflation would fail to moderate as expected; that risk remained the committees predominant concern,' the Fed said.

...

The minutes show that the initial interpretation of the statement may have been wishful thinking on the part of investors.

'All members agreed the statement should indicate that the Committees predominant policy concern remains the risk that inflation will fail to moderate as expected,' the minutes said

'The Committee agreed that further policy firming might prove necessary to foster lower inflation, but in light of the increased uncertainty about the outlook for both growth and inflation, the Committee also agreed that the statement should no longer cite only the possibility of further firming,' the Fed said.

'Instead, the statement should indicate that future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information,' the minutes said.

/...

[UpInArms]

36. US March Federal Deficit @ $96.3 bln (fed outlays @ record $262.8 bln)

18. U.S. March federal outlays record $262.8 bln
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

19. U.S. March federal deficit $96.3 bln vs. $95 bln expected
2:00 PM ET, Apr 11, 2007 - 32 minutes ago

[ozymandius]

3. Oil prices up in Europe

VIENNA, Austria - Benchmark crude prices inched upward Wednesday as traders awaited the weekly U.S. inventory report, which was expected to show a decline in gasoline stocks and an increase in crude oil supplies.

Renewed concern about Iran — the world's fourth-largest crude producer — also put a relatively high floor under oil prices.

Light, sweet crude for May delivery rose 7 cents to $61.96 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On London's ICE Futures exchange, May Brent crude rose 32 cents to $67.74 a barrel.

Prices have been volatile the last couple of weeks, gaining nearly $5 a barrel after Iran detained 15 British sailors and marines, dropping on their release last Thursday, and then sliding almost $3 on Monday on expectations of oversupply at a key North American delivery point.

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

[ozymandius]

4. Gas prices may be cheaper this summer

WASHINGTON - Drivers may find gasoline a little cheaper this summer compared to last, despite a 64-cent-a-gallon jump since January.

The Energy Department said Tuesday that the recent sharp rise in gasoline costs is likely to slow in the coming weeks with prices averaging $2.81 a gallon over the vacation driving season, about 3 cents lower than last spring and summer.

But the Energy Information Administration forecast is anything but assured.

-cut-

The government attributed the unusual early price surge to higher crude oil prices, unplanned refinery outages, declining imports from Europe and an increase in demand.

http://news.yahoo.com/s/ap/20070411/ap_on_bi_ge/summer_gasoline_22

[Roland99]

8. Why don't they just tell the truth and attribute the higher prices to GREED?

:eyes:

[ozymandius]

9. But where would be the political intrigue in that?

Besides - that level of honesty would hurt some feelings (and probably a few careers).

[AnneD]

26. I'm calling...

Bull Shit! This is nothing but a pie crust promise; easily made, easily broken made to give one false hopes. They may dip a bit but one hurricane in the Gulf will blow that thought out of the water. Forget if it hits a refinery region. On the coast, we hold our collective breaths from June 1st to Nov 1st.

[ozymandius]

6. ConocoPhillips joins climate group

HOUSTON - ConocoPhillips has joined several other major corporations urging Congress to require limits on greenhouse gases tied to global warming, the first major U.S. oil company to take such a stance.

The company said Wednesday it has joined the U.S. Climate Action Partnership, an alliance of big business and environmental groups that in January sent a letter to
President Bush stating that mandatory emissions caps are needed to reduce the flow of carbon dioxide and other heat-trapping gases into the atmosphere.

Other companies that belong to the partnership include London-based oil major BP PLC and the U.S. industrial products and media conglomerate General Electric Co.

-cut-

Mulva said the company was allocating "significantly more resources" to help develop alternative and renewable sources of energy and was committed to reducing emissions at its own plants. ConocoPhillips has said it will spend $150 million this year on the research and development of new energy sources and technologies — a 50 percent increase in spending from 2006.

http://news.yahoo.com/s/ap/20070411/ap_on_bi_ge/conocophillips_climate

[citizen snips]

49. Oil and Gasoline Rise on Supply Report

NEW YORK (AP) -- Gasoline and oil prices rose Wednesday after the U.S. government reported a steeper-than-expected decline in gasoline inventories.

Total U.S. gasoline stockpiles sank by 5.5 million barrels last week to 199.7 million barrels, according to the U.S. Energy Information Administration. Analysts had been expecting just a 1.3 million barrel decline, according to a Dow Jones Newswire survey.

Energy Information said gasoline demand has been strong recently, averaging nearly 9.4 million barrels per day over the past four weeks, or 2.5 percent higher than the year-ago period.

Several gasoline-making units were offline for routine seasonal work, putting a crimp in production, said Citigroup Global Markets energy analyst Tim Evans. Production dropped 242,000 barrels per day from the prior week to 8.5 million barrels daily.

more...
http://biz.yahoo.com/ap/070411/oil_prices.html?.v=16

[UpInArms]

10. dollar watch

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

Last trade 82.687 Change +0.036 (+0.04%)

Dollar Back to Pre NFP Levels as Carry Trades, Housing Sector Woes and Protectionism Return

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Dollar_Back_to_Pre_NFP_1176239729502.html

US Dollar – By the time European traders returned to their desks Tuesday morning after the long weekend holiday, the US dollar already gave back all of its non-farm payrolls related gains to trade at approximately 1.3415 against the Euro. The sharp moves overnight and the dollar bearish news flow that drove it were enough to convince European traders to follow the trend instead of fading it. Carry trade buying was particularly aggressive last night as some traders laid on positions ahead of the Bank of Japan’s rate decision while others focused on snapping up the high yielding Australian and New Zealand dollars in response to Mexico based Cemex’s $14 billion bid for Australian cement maker, Rinker. In addition to the acquisition flow and carry trade demand, the dollar was also sold on news that the US filed two new trade cases against China in the WTO over copyright piracy and restrictions on the sale of American books, music, videos and movies. US protectionism has never been taken positively by currency traders who know that the latest initiatives by the US government would only raise the stakes for a trade war. Finally, concerns about the housing market also resurfaced overnight after American Home Mortgage announced that its earnings would be heavily impacted by the losses in Alt-A mortgages, which are a grade higher than sub-prime. This is a clear indication that the problems in the sub-prime sector are spilling over to other parts of the housing market. If Alt-A lenders go, then prime lenders could be next. Looking ahead, tomorrow’s release of the FOMC minutes from the March 20-21 meeting could lend some support to the US dollar. Even though the central bank left interest rates unchanged last month, they decided against dropping their tightening bias. The tone of the statement contained the same degree of hawkishness that we have heard from central bank officials in recent weeks so we expect the minutes to reflect that. If this is the case, it could help fuel a rebound in the US dollar.

...more...

US Fed - Vigilant Policy to Keep Rates at 5.25%

http://www.dailyfx.com/story/strategy_pieces/global_central_bank_comments/Central_Bank_Speak___April_1176231670235.html

Inflation data remains the name of the game for the Federal Reserve, as the central bank essentially brushes off the crunch of subprime lenders, even as it appears the probles have started spread to higher credit quality Alt-A laons:

Frederic Mishkin, Federal Reserve Board Governor (Voter)

“Inflation is higher than I would like to see” but it “is likely to moderate.” However, “if inflation doesn’t moderate, the Fed must act…. While restoring price stability remains critical, the central bank should do so at a pace that does not do undue harm to the economy.” – April 10, 2007

William Poole, St. Louis Federal Reserve President (Voter)

“Inflation is a major concern and if inflation were to head up in a convincing way from the current level, I could be in favor of a rate increase at some point…Chairman Greenspan often wrote with the expectation that people would read between the lines…Chairman Bernanke is trying very hard to have people read the lines and not draw implications from reading between the lines.” – April 3, 2007

Richard Fisher, Dallas Federal Reserve President (Alternate Voter)

“Thus far, the damage from the subprime market has been largely contained. ... Quality problems have arisen primarily for adjustable-rate subprime loans, which are only about 8.5 percent of home mortgage debt outstanding… nevertheless, because 40 percent of homebuyers last year were non-prime…borrowers, housing markets may feel some short-term pains, making it less clear whether housing construction has bottomed and how long the housing downturn may last. Fortunately, the financial system and the economy are strong enough to weather this storm…There is no denying that this kind of situation dampens economic growth…I would like to see inflation lower than it currently is…I am hopeful inflation will moderate, but we must always remain vigilant.” – April 4, 2007

...more...

[citizen snips]

55. Dollar Trades Mixed

NEW YORK (AP) -- The dollar traded mixed against other major currencies Wednesday after the Federal Reserve's latest meeting minutes showed a focus on inflation.

The 13-nation euro bought $1.3427 in late New York trading, edging up from $1.3424 late Tuesday.

The dollar rose to 119.30 Japanese yen from 119.12 yen, while the British pound rose to $1.9753 from $1.9716.

Fed policymakers agreed unanimously last month that their attention should remain on inflation rather than economic weakness.

more...
http://biz.yahoo.com/ap/070411/dollar.html?.v=2

[Ghost Dog]

57. Dollar Madness

http://www.counterpunch.org/whitney04112007.html

... It's madness.

The investor class loves big deficits because they provide cheap credit for Bush's lavish tax cuts and war. The recycling of dollars into US Treasuries and dollar-based securities is a neat way of covering government expenses and propping up the stock market with foreign cash. It's a "win-win" situation for political elites and Wall Street. For the rest of us it's a dead-loss.

The trade deficit puts downward pressure on the dollar and acts as a hidden tax. In fact, that's what it is--a tax! Every day the deficit grows, more money is stolen from the retirements and life savings of working class Americans. It's an inflation bombshell obscured by the bland rhetoric of "free markets" and deregulation.

Consider this: In 2002 the euro was $.87 on the dollar. Last Friday (4-6-07) it closed at $1.34-- a better than 50% gain for the euro in just 4 years. The same is true of gold. In April 2000, gold was selling for $279 per ounce. Last Friday, at the close of the market it skyrocketed to $679.50---more than double the price.

Gold isn't going up; it's simply a meter on the waning value of the dollar. The reality is that the dollar is tanking big-time, and the main culprit is the widening trade deficit.

The demolition of the dollar isn't accidental. It's part of a plan to shift wealth from one class to another and concentrate political power in the hands of a permanent ruling elite. There's nothing particularly new about this and Bush and Greenspan have done nothing to conceal what they are doing. The massive expansion of the Federal government, the unfunded tax cuts, the low interest rates and the steep increases in the money supply have all been carried out in full-view of the American people. Nothing has been hidden. Neither the administration nor the Fed seem to care whether or not we know that we're getting screwed --it's just our tough luck. What they care about is the $3 trillion in wealth that has been transferred from wage slaves and pensioners to brandy-drooling plutocrats like Greenspan and his n'er-do-well friend, Bush.

These policies have had a devastating effect on the dollar which has been slumping since Bush took office in 2000. Now that foreign purchases of US debt are dropping off, the greenback could plunge to even greater depths. There's really no way of knowing how far the dollar will fall.

That puts us at a crossroads. We are so utterly dependent on the "charity of strangers" (foreign investment) that a 9% blip in the Chinese stock market (or even a .25 basis point up-tick in the yen) sends Wall Street into a downward spiral. As the housing market continues to unwind, the stock market (which is loaded with collateralized mortgage debt) will naturally edge lower and foreign investment in US Treasuries and securities will dry up. That'll be doomsday for the greenback as central banks across the planet will try to unload their stockpiles of dollars for gold or foreign currencies.

That day appears to be quickly approaching as the 3 powerhouse economies are overheating and need to raise interest rates to stifle inflation. This will make their bonds and currencies all the more attractive for foreign investment; diverting much needed credit from American markets.

/...

[Ghost Dog]

63. The Federal Reserve Monopoly over Money (Rep. Ron Paul)

http://www.house.gov/paul/tst/tst2007/tst040907.htm
April 9, 2007

Recently I had the opportunity to question Federal Reserve Chairman Ben Bernanke when he appeared before the congressional Joint Economic committee. The topic that morning was the state of the American economy, and many of my colleagues raised questions about how the Fed might better "regulate" things to ease fears of an economic downturn. The tenor of my colleagues' questions suggested that Mr. Bernanke's job is nothing less than to run the U.S. economy, like some kind of Soviet central planner.

Certainly it’s true that Mr. Bernanke can drastically affect the economy at the drop of a hat, simply by making decisions about the money supply and interest rates. But why do members of Congress assume this is good? Why do we accept without objection that a small group of people on the Federal Reserve Board wields so much power over our economic well-being? Is centralized, monopoly control over our money even compatible with a supposedly free-market economy?

Few Americans give much thought to the Federal Reserve System or monetary policy in general. But even as they strive to earn a living, and hopefully save or invest for the future, Congress and the Federal Reserve Bank are working insidiously against them. Day by day, every dollar you have is being devalued.

The greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration. The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation. It is this one-two punch-- Congress spending more than it can tax or borrow, and the Fed printing money to make up the difference-- that threatens to impoverish us by further destroying the value of our dollars.

The Fed’s inflationary policies hurt older people the most. Older people generally rely on fixed incomes from pensions and Social Security, along with their savings. Inflation destroys the buying power of their fixed incomes, while low interest rates reduce any income from savings. So while Fed policies encourage younger people to overborrow because interest rates are so low, they also punish thrifty older people who saved for retirement.
The financial press sometimes criticizes Federal Reserve policy, but the validity of the fiat system itself is never challenged. Both political parties want the Fed to print more money, either to support social spending or military adventurism. Politicians want the printing presses to run faster and create more credit, so that the economy will be healed like magic- or so they believe.

Fiat dollars allow us to live beyond our means, but only for so long. History shows that when the destruction of monetary value becomes rampant, nearly everyone suffers and the economic and political structure becomes unstable. Spendthrift politicians may love a system that generates more and more money for their special interest projects, but the rest of us have good reason to be concerned about our monetary system and the future value of our dollars.

[ozymandius]

11. Alcoa's 1st-quarter profit rises 9 pct.

PITTSBURGH - Record aerospace industry demand and higher metal prices helped lift Alcoa Inc.'s first-quarter profits nearly 9 percent, as the aluminum maker kicked off earnings season and gave Wall Street its first taste of how companies have fared so far this year.

Alcoa, the first of the Dow Jones Industrials to report earnings this quarter, said net income grew to $662 million, or 75 cents per share, during the January-March period compared with $608 million, or 69 cents per share, a year earlier.

Revenue jumped 11 percent to $7.9 billion, from $7.1 billion during the year-ago period, supported by higher metal prices and sales to the aerospace, industrial product, and building and construction markets.

Analysts polled by Thomson Financial on average were expecting earnings of 76 cents per share on revenue of $7.65 billion.

http://news.yahoo.com/s/ap/20070411/ap_on_bi_ge/earns_alcoa

[Ghost Dog]

12. Asian Stocks Rise for a Third Day; Samsung, Rio Tinto Advance

http://www.bloomberg.com/apps/news?pid=20601080&sid=a5XD6gBwUsk4&refer=asia

April 11 (Bloomberg) -- Asian stocks rose for a third day, with indexes in China, South Korea and Indonesia climbing to records and Australia, Singapore and Malaysia touching highs.

Samsung Electronics Co., the world's biggest maker of liquid-crystal display panels, rose after rival LG.Philips LCD Co. reported a loss that was smaller than some analyst estimates.

``The LCD industry has entered a recovery phase and profitability is likely to continue to improve,'' said Kevin Yang, chief investment officer at Paradigm Asset Management Co., which oversees $360 million in assets. ``The worst is over.''

Rio Tinto Group led mining companies higher after copper prices advanced to a seven-month high and U.S.-based Alcoa Inc. posted its most profitable quarter ever.

The Morgan Stanley Capital International Asia-Pacific Index added 0.3 percent to 148.08 as of 7:29 p.m. in Tokyo, its highest since Feb. 27. China's CSI 300 Index closed at its eighth straight record.

Japan's Nikkei 225 Stock Average rose less than 0.1 percent while the broader Topix index gained 0.2 percent. Rail operators advanced, led by East Japan Railway Co. after Goldman, Sachs & Co. recommended investors buy the stock.

Kubota Corp., Japan's largest maker of farm equipment, declined on a report that showed Japanese machinery orders slipped more than expected in February.

Benchmarks advanced in Hong Kong, Taiwan, Thailand and Pakistan. They fell in Australia, Singapore and Malaysia after earlier climbing to all-time highs. Markets in New Zealand and the Philippines also declined.

/...

[Ghost Dog]

15. Japan's Machine Orders Fall More-Than-Expected 5.2%

http://www.bloomberg.com/apps/news?pid=20601080&sid=at64lfeKnLsw&refer=asia

April 11 (Bloomberg) -- Japan's machinery orders fell a more-than-expected 5.2 percent in February, highlighting concern among manufacturers that export growth may slow this year.

Non-government orders, excluding shipping and utilities, declined to 1.04 trillion yen ($8.7 billion) from a month earlier, the Cabinet Office said in Tokyo today. The median estimate of 31 economists surveyed by Bloomberg News was for a 0.4 percent drop.

Fujitsu Ltd. and NEC Electronics Corp. plan to cut spending by almost a third this fiscal year to prepare for a slump in orders for chips used in cameras and game consoles. Orders made by non-manfacturers rose, signaling service companies including Tokyo Electric Power Co. and Central Japan Railway Co. may drive business investment in the world's second-largest economy.

``Capital investment will remain sluggish in the first half of this fiscal year because spending by manufacturers is losing steam,'' said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management Co. in Tokyo. ``However, spending by non- manufacturers will probably offset such a slowdown and keep supporting the country's business investment overall.''

The yen traded at 118.93 per dollar at 11:01 a.m. in Tokyo compared with 119.11 before the report was published. The yield on Japan's 10-year bond fell 2.5 basis points to 1.655 percent.

Orders for electronic machinery such as semiconductor testing equipment led the declines, falling 29.7 percent, the biggest drop in almost nine years.

/...

[Ghost Dog]

16. China buys hi-tech equipment to cut trade surplus

http://www.chinadaily.com.cn/china/2007-04/11/content_848416.htm

(Xinhua) NINGBO, Zhejiang -- China will increase imports of technological equipment amid efforts to cut the ever-increasing trade surplus, Wei Jianguo, vice minister of Commerce, said at a conference on Monday.

China needs a better trade structure and more exports of self-developed, high value-added products, Wei said.

Most domestic industries do not have advanced technological equipment and increasing imports in this field is one of the best ways to ease China's trade surplus, he said.

The country's huge forex reserves, which broke the one trillion U.S. dollar mark at the end of 2006, have laid a solid foundation for more imports, Wei said.

China will import integrated circuit manufacturing equipment, high-end chemical fibre equipment and high performance numerical control machine tools, said Wang Qinhua, a senior official with the ministry.

The country will also encourage the import of energy-saving equipment and technologies and reduce the threshold for importing mechanical and electronic products, she said.

/...

[Roland99]

24. You'd think healthcare equipment would be a good sell.

But, what do I know?

[AnneD]

27. It usually is...

but frankly...I don't think I want to be hooked up to Chinese medical equipment at this time. It lacks a certain amount of, how do say this....QUALITY.

They won't make any money on it for a while.:eyes:

[Roland99]

29. Maybe I was reading that wrong but I was thinking China was going to purchase equip.

instead of exporting...to lower the trade surplus.

[AnneD]

38. Maybe I read it wrong....but chew on this...

Medical equipment, while expensive, will not put much of a dent in China's trade surplus. I can't imagine an order THAT big.

The premier places to buy med equipment is the US, Germany, and Japan. As mentioned earlier, China is woefully behind. What better way to upgrade you manufacturing process of equipment than buy the stuff, take it apart and make your own. It sounds like nuclear materal for mangoes to me. Besides some of this equipment has military implications.

I can see China as competition to India's medical tourism once they get their equipment and staff aligned.

At best this is an attempt to mollify the US and at worst an attempt to get technology for free.

[Roland99]

54. Yeah, I was thinking along those lines, long-term, as well. Just didn't get around to saying it.

:)

[Ghost Dog]

51. I take it to mean they're planning

to 'move up the (technological) food-chain' - ie. rather like the Japanese model (bu probably even more so), to go from knocking out more cheaply fairly bog-standard mass-market industrial and consumer goods, towards (enormous investment in) advanced research, development and production of sophisticated, high-tech goods (and services) on their own account.

So now's the time (and they have the spare cash) to invest in importing the best that's right now available around the world, to use directly (why buy German maglevs, for example, if you can design, develop and build your own?) but also to analyse, reverse-engineer, inspire new ideas going forward.

I'm sure medical advances will be in there in the mix.

And all this under an 'industrial policy' (five-year plan) that now places great emphasis on urgent energy conservation and sensitive environmental sustainabiliy.

In other words: Hold onto your hats!

[AnneD]

66. Exactly...

I am not so young that I don't remember the words 'Made in Japan' meant shoddy merchandise.

Yeah, if I were a country leader playing chess-that would be my next move-upgrade my factories and technical output. They do have the spare cash and they will mop the floor with our technology.

Now here's the crux...I really believe that the US is one of the most innovative places-people really do think differently here. I have been on war games with troops from other countries and yankee ingenuity is more than just a cliche. HOWEVER, we cannot continue this ingenuity if we slide into a 2 tier economic system. We need a strong middle class, an educated middle class, to maintain this innovation. The really great ideas percolate up from the middle class, and that is what the goobers in the current high echelons of WS and the WH are doing, destroying the middle class (the goose that laid the golden egg). Just as pure communism is a failed social system for Russia, the end product of capitalism is a failed social system in the USA. China's growth has really taken place once they relaxed some of their ideology and aimed for the center.

Ah yes, the SWT...where political ideology and business really do meet.

[Ghost Dog]

68. Ah yes, "Made in Japan": has followed rather the opposite course

to what the term "Made in England" used to imply (ie. original concept; high quality production. US too, I guess, in some fields).

"Made in Germany" (as well as Japan) works better these days.

However (& we're showing our ages here, AnneD) whereas Japan's transformation to high-tech and highly-innovative high-quality was meteor-like, I fully expect China's to be even more so. Even though Japan had it relatively easy at the time: China must now (and says it will) take very much into account al those 'doomsday', 'limits-to-growth' ecological factors that (it has taken mainstreams so long to acknowledge) are vital to balancing all equations moving forward into any short-, mid- or long-term human future on this planet.

Of course, the pessimist (realist) in me has to add that there are clearly going to be high-tech military components in this future, too. More's the pity. And mostly due to US aggression.

[ozymandius]

13. U.S. stocks seen opening higher

NEW YORK - U.S. stocks headed toward a slightly higher opening Wednesday as investors waited for details about a major restructuring at Citigroup Inc. and minutes of the
Federal Reserve's last meeting.

Citigroup, the nation's largest financial institution, is expected to announce thousands of job cuts in a bid to lower the company's expenses. There have been reports that some 15,000 jobs might be on the line, which represents about 5 percent of the company's payroll.

-cut-

In economic news, the Fed will release the minutes from its last meeting where central bankers left interest rates unchanged. The minutes might give Wall Street a better idea about a possible rate cut sometime this year.

http://news.yahoo.com/s/ap/20070411/ap_on_bi_st_ma_re/wall_street

[ozymandius]

19. but then....

Economic worries may hit stocks

NEW YORK (CNNMoney.com) -- A strong start to the earning season and some merger news may not be enough to give stocks a lift in the face of consumer worries about the economy.

Stock futures were mixed and little changed in early trading, while a comparison to fair value pointed to a weaker open for stocks.

A poll in the Los Angeles Times conducted for the paper and Bloomberg shows 60 percent of those surveyed believe a recession is somewhat or very likely in the next year, with more than a third saying their own finances are shaky.

Investors are waiting to see if Federal Reserve policymakers share those worries. At 1 p.m. ET Fed Chairman Ben Bernanke is due to speak at the Global Economic Policy Forum at New York University. Then at 2 p.m. the Federal Reserve will release the minutes of its most recent meeting.

http://money.cnn.com/2007/04/11/markets/stockswatch/index.htm?postversion=2007041106

[Demeter]

31. What No Fairy Dust Today?

Just think lovely, wonderful thoughts, and UP YOU GO!!!! (Cue Mary Martin)

[UpInArms]

14. Citigroup to slash 17,000 jobs

http://news.yahoo.com/s/nm/20070411/bs_nm/citigroup_dc

NEW YORK (Reuters) - Citigroup Inc. (NYSE:C - news) on Wednesday said it will eliminate 17,000 jobs, or 5 percent of its workforce, as part of a broad restructuring plan designed to cut costs and bolster its long underperforming stock price.

The bank said its workforce will continue to grow in 2007, but at a significantly slower pace.

Citigroup will take a $1.38 billion pre-tax charge, or $871 million after taxes, in the first quarter, and expects $200 million of additional pre-tax charges this year. It expects savings of about $2.1 billion this year, $3.7 billion in 2008 and $4.6 billion in 2009.

<snip>

Citigroup plans to move more than 9,500 jobs to lower-cost locations worldwide, with about two-thirds through attrition. It will also eliminate layers of management, often increasing the number of workers reporting to each manager.

...more...

[UpInArms]

17. Taiwan: Citigroup Paying $425 Million for Bank

http://www.nytimes.com/2007/04/10/business/worldbusiness/10fobriefs-CITIGROUPPAY_BRF.html?ex=1333857600&en=98e88bf309c75244&ei=5088&partner=rssnyt&emc=rss

Citigroup said that it had agreed to buy a midsize bank for 14.1 billion Taiwan dollars ($425 million) to further its expansion in Asia. In an all-cash deal, Citigroup will pay 11.8 Taiwan dollars (36 cents) a share to acquire the Bank of Overseas Chinese. The deal, which was under negotiation for nearly a year, is expected to be completed by year’s end. After the acquisition, the two banks will have total assets of $22.8 billion and 66 branches on Taiwan. The Taiwan bank’s 55 branches on the island will change their name to Citibank. Citigroup has 11 branches in Taiwan. The deal comes as Citigroup, based in New York, is seeking to increase revenue outside its home market, and as foreign banks continue to increase operations in Taiwan, which has robust trade and investment ties with China.

[UpInArms]

18. Citigroup in talks to buy Pandit's Old Lane (hedge fund): sources

http://news.yahoo.com/s/nm/20070409/bs_nm/oldlane_citigroup_dc

NEW YORK (Reuters) - Citigroup Inc. (NYSE:C - news) is in talks to buy Old Lane LP, a hedge fund firm co-founded by Vikram Pandit, a move that would put the former Morgan Stanley (NYSE:MS - news) executive on a short list to eventually run the largest U.S. bank, people familiar with the situation said.

The purchase price for Old Lane could top $600 million, those people said. Citigroup would add about $4 billion in assets under management in the deal, and would make Pandit chief executive of its alternative investments unit.

Citigroup declined to comment, and Old Lane did not return calls for comment.

The complex talks might break down because they involve an acquisition and management changes, the sources said. Citigroup may want to work out a deal before it reports first-quarter results on April 16 and holds its annual meeting the next day, they said.

...more...

[Ghost Dog]

21. (Midday) European equities recapture six-year highs

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B7677bf38%2D6a7e%2D4fdd%2Dbf27%2Dc01bbe07ad75%7D

European equity markets recaptured six-year highs on Wednesday, clawing back the steep losses suffered during a three-week spell of volatile trading in February and March. In mid-session trade, the FTSE Eurofirst 300 was 0.4 per cent higher at 1,554.13 – a new six-year peak, and its highest level since late February when global stock markets corrected sharply over fears of US economic slowdown. Frankfurt was up 0.4 per cent at 7,193.52, while the CAC 40 in Paris gained 0.4 per cent to 5,787.8 and London’s FTSE 100 was 0.3 per cent higher at 6,433.6. Oil companies rallied following recent weakness related to a sharp fall in crude prices. Royal Dutch Shell said it was to pay $352.6m, plus administrative costs, to settle claims lodged by European and other non-US investors related to the company’s shock reserves downgrade in 2004. The company said it had agreed to the settlement ”without admitting any wrongdoing”. Relief that the company had now put the episode behind it, helped the shares rally 1.3 per cent to €25.11. Elsewhere, France’s Total gained 1.4 per cent to €53.24, Austria’s OMV added 2.5 per cent to €47.51 and Spain’s Repsol climbed 1.9 per cent to €25.88.

[Nimrod2005]

30. I had to rebalance my portfolio recently, too much gains in international funds

Moved the money to domestic growth.

[AnneD]

43. Snarky...

Bet my young broker wishes he'd listened to me. You get grey hair-then ya learn.

[Ghost Dog]

59. European Markets Fall On IMF Outlook, Higher Oil Prices

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070411\ACQRTT200704111552RTTRADERUSEQUITY_1069.htm
&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD
&chk=unchecked&lang=&link=&headlinereturnpage=http://www.international.nasd

(RTTNews) - The European markets fell on Wednesday after crude oil prices rose and the International Monetary Fund said the U.S. economy will grow at the slowest pace in five years.

In its latest World Economic Outlook, the IMF is projecting the world economy to grow by 4.9% this year and next. The U. S. economy is expected to grow by 2.2% this year, which would be the slowest since 2002, when it was recovering from a recession.

Crude for May delivery rose $0.21 to $62.09 a barrel on the New York Mercantile Exchange after a government report showed that U.S. gasoline inventories declined for a ninth straight week.

...

The FTSEurofirst 300 index of pan-European blue chips closed 0.07% lower at 1,547.24 points, while the narrower DJ Stoxx index rose 0.02% to 3,787.15 points.

Around Europe, the U.K.'s FTSE 100 index declined 0.07% to 6,413.30, while France's CAC 40 index slipped 0.25% to 5,751.92 and Germany's DAX index fell 0.19% to 7,152.83.

/...

[Ghost Dog]

22. Copper rises on strong demand forecasts

Copper rises on strong demand forecasts

Copper hit a fresh seven-month high on Wednesday, as industrial metals prices remained underpinned by falling inventories and strong demand forecasts. Three month copper futures on the London Metal Exchange rose to $7,945 a tonne, up 2.5 per cent from the previous session’s kerb close. China’s copper imports reached a record 307,740 tonnes in March, while supplies of the metal monitored by the LME fell for the third-consecutive day.
...

Three month aluminium rose 0.5 per cent to $2,893 a tonne, its highest in 11 months, after Alcoa, the world’s biggest producer of the metal, said global consumption of the metal was expected to remain robust this year, with demand still strong from the aerospace sector.

/..

[Ghost Dog]

23. Copper prices lead rush for metal

http://www.ft.com/cms/s/6b375980-e79b-11db-8098-000b5df10621.html

Metal markets are in the middle of another price boom that may eclipse the one seen last spring, with copper, nickel, lead and tin all rising strongly in trading on Tuesday.

This boom is more broadly-based than last year’s, but supported by the same cocktail of factors: strong Chinese and global demand, constrained supplies, low levels of metal stockpiles and heightened financial speculation.

Metal prices had a shaky start to the year amid expectations of slowing global economic demand, rising supplies and concerns about the knock-on effects of the US housing slowdown.

But sentiment has turned since mid-February, particularly towards copper, the flag-bearer of the base metals markets, on the assumption of stronger-than-expected demand in China, the world’s biggest copper consumer.

...

Unlike last year, when the price rally was confined to copper, aluminium, zinc and nickel, this time lead and tin are also touching record highs.

Nickel prices are more than double what they were last May when they reached a then-record of $21,850 a tonne, and burst through the $50,000 a tonne level on the LME on Tuesday, before easing to $48,500.

Strong demand for stainless steel, which consumes about two-thirds of nickel supplies, and delays to new mining projects in Australia and New Caledonia have tightened the nickel market.

/..

[AnneD]

28. Lawyers: E-mails will back Katrina case

NEW ORLEANS - State Farm Insurance Cos. had threatened to fire a firm hired to inspect storm-damaged homes after Hurricane Katrina, and firm leaders suggested in e-mails that the insurer was dissatisfied with how it was reporting damage.


Attorneys for homeowners suing State Farm claim the e-mails support their argument that the insurer pressured its engineers to alter their reports on storm-damaged homes so that policyholders' claims could be denied.

The e-mails, obtained Tuesday by The Associated Press, indicate that State Farm was threatening to dismiss Raleigh, N.C.-based Forensic Analysis & Engineering Corp. less than two months after Katrina hit on Aug. 29, 2005.

The e-mails between Forensic president and CEO Robert Kochan and Randy Down, the firm's vice president of engineering services, outline complaints about the firm's work from Alexis "Lecky" King, a State Farm manager in Mississippi.

<snip>

http://news.yahoo.com/s/ap/20070411/ap_on_bi_ge/katrina_state_farm;_ylt=Akf0L5a5S1fRqwkyUTmpvM2b.HQA


Hello....the reason we take out insurance is to lessen the risk. They were the first one to cash the check, they are bound to pay the money...scumbags...

[Systematic Chaos]

32. Hey, where's my weekly Mogambo link???

Someone get on the ball! :)

[KayLaw]

33. Here you go.

http://www.fiendbear.com/

[KayLaw]

34. Ugh! as he would say.

Never mind, that's last week's. I'm waiting, too.

[Ghost Dog]

61. Looks like The Mogambo (TM) has been delayed this week

(probably didn't get home and/or wake up from last night's visit to that girlie rotgut taco joint and/or has been arrested and/or has managed to blow his own head off and/or is still on the floor, quaking in fear... :-)

[Tace]

67. I've Been Posting Mogambo On WNT...

... and usually here, too. But missed the last three weeks because I've been tied up with other things. I'll try to get it on later today, if it's not up here already. Tace

[citizen snips]

37. Sector Snap: Homebuilding Suppliers Fall

NEW YORK (AP) -- Shares of building material suppliers slipped Wednesday after realtors said sale prices for existing homes will fall this year for the first time in decades.

The National Association of Realtors expects the median sale price of existing homes to shrink 0.7 percent, citing subprime lending industry woes and tougher lending standards. Prices have not decreased since the group began keeping records in the late 1960s. The group also predicted existing home sales will fall 2.2 percent.

NAR projected that sales prices for new homes will rise 0.4 percent, compared with a 1.8 percent gain last year, but sales of those homes will drop 13.9 percent.

Shares of Winchester, Va.-based Trex Co. -- which makes composite decking and railings -- lost $1.22, or 5.6 percent, to $20.46 in afternoon trading on the New York Stock Exchange.

more...
http://biz.yahoo.com/ap/070411/homebuilding_suppliers_sector_snap.html?.v=1

[citizen snips]

39. Chips Snap: Analog Chip Shares Mixed

NEW YORK (AP) -- Shares of analog semiconductor companies were mixed Wednesday after an analyst said the companies will likely post "fairly muted" outlooks as their seasonal weakness will probably continue into the second quarter.

However, FBR Research analyst Chris Caso said he expects analog semiconductor companies to report a strong second half of 2007, barring a broad economic slowdown.

"We are in favor of buying the group ahead of that build, particularly if elevated expectations cause a pullback during April earnings," the analyst wrote, adding that he counts National Semiconductor Corp., Intersil Corp. and ON Semiconductor Corp. among his favorites in the sector.

He called any stock pullback on quarterly guidance a "buying opportunity."

more...
http://biz.yahoo.com/ap/070411/semiconductors_sector_snap.html?.v=1

[citizen snips]

40. Sector Snap: Homebuilders

NEW YORK (AP) -- Shares of homebuilders, many of whose stocks are trading at their lowest prices since 2003, sank further on Wednesday as an industry group said tighter mortgage lending will slow the housing recovery.

Late last year, many builders and economists predicted the struggling housing market would hit a bottom in early 2007 and begin rebounding later in the year. Now that forecast appears premature because without access to mortgage loans, many buyers can't obtain money to buy homes even if they're irresistably cheap.

The housing boom was fueled in part by low interest rates, leading to easy access to loans. As borrowers at the bottom of the credit ladder miss payments on their mortgages more frequently, many "subprime" mortgage banks are going out of business. Many of the survivors are tightening their underwriting standards by charging higher rates and issuing fewer loans.

Because a fifth of home buyers in the U.S. last year were subprime and a third were "Alt-A," or the next step above subprime, the end of easy mortgage credit means not as many buyers are being attracted into the market.

more...
http://biz.yahoo.com/ap/070411/homebuilders_sector_snap.html?.v=1

[citizen snips]

41. Sector Snap: Airline Stocks Mixed

NEW YORK (AP) -- Airline stocks rose in mixed trading Wednesday, as crude oil prices seesawed and Raymond James boosted earnings estimates for AirTran Holdings Inc.

The Amex Airline Index rose nearly 1 percent in afternoon trading, with five of 11 component stocks rising -- the rest unchanged or down.

Crude oil prices rose 11 cents to $62 per barrel on the New York Mercantile Exchange, after earlier rising as high as $62.56. Airline stocks tend to trade against crude price swings, as jet fuel is one of the industry's top costs.

In a research report, Raymond James analyst James D. Parker boosted his first-quarter expectations for AirTran to a profit of a penny per share from a loss of 5 cents per share. He made the change after AirTran forecast a "small" quarterly profit on stronger-than-expected unit revenue.

more...
http://biz.yahoo.com/ap/070411/airlines_sector_snap.html?.v=1

[citizen snips]

42. Alcoa Among Wall Street's Movers

NEW YORK (AP) -- Stocks that were moving substantially or trading heavily Wednesday on the New York Stock Exchange and Nasdaq Stock Market:

NYSE

Alcoa Inc., up 44 cents at $35.34

The aluminum maker said late Tuesday its first-quarter profit rose nearly 9 percent, driven by record aerospace industry demand and higher metal prices.

Manor Care Inc., up $5.20 at $60.95

The company, which operates nursing homes and rehabilitation centers, said it hired JPMorgan as its exclusive financial adviser to explore strategic alternatives.

Western Refining Inc., down $1.69 at $36.17

more...
http://biz.yahoo.com/ap/070411/wall_street_stocks.html?.v=2

[citizen snips]

44. Analysts' Take on Take-Two's Future

NEW YORK (AP) -- The new management of Take-Two Interactive Software Inc. faces a "long and difficult turnaround," says one analyst, while another predicts that the troubled video game maker's stock performance will likely be hampered, at least for a short while, during this transitional period.

Take-Two's new senior executives -- appointed after a shareholder coup ousted the company's former CEO and nearly all of its board late last month -- held an introductory conference call with analysts Tuesday and outlined a broad turnaround plan that includes plans to shed underperforming units and resolve legal issues.

Bear Stearns analyst Edward Urban, who sees Take-Two's transition as long and difficult, said his fundamental outlook on the company hasn't changed. He kept an "Underperform" rating on its shares.

Take-Two, which relies heavily on its popular and bloody "Grand Theft Auto" series, has seen dwindling profits at a time when most of its peers posted solid results. And Urban noted that while Take-Two's stock trades in line with rivals Activision Inc. and Electronic Arts Inc., it faces a more uncertain future.

more...
http://biz.yahoo.com/ap/070411/take_two_analyst_note.html?.v=1

[citizen snips]

45. Bernanke: Current Hedge Fund System OK

WASHINGTON (AP) -- The current market-based system is the best way to regulate the trillion-dollar hedge fund industry although improvements can be made, Federal Reserve Chairman Ben Bernanke said Wednesday.

Bernanke, speaking to a conference on global economics in New York City, said that the current system is superior to increased government regulation. That view is at odds with critics who say large failures in recent years highlight the need for greater supervision.

"Thus far, the market-based approach to the regulation of hedge funds seems to have worked well, although many improvements can be made," Bernanke said in remarks prepared for delivery to a global economic conference sponsored by the New York University law school.

Bernanke noted that the collapse of a Connecticut hedge fund, Long-Term Capital Management, came during a period of severe financial stress in 1998.

more...
http://biz.yahoo.com/ap/070411/bernanke_hedge_funds.html?.v=10

[citizen snips]

46. CFO Sold 14K Shares Before Recall

TORONTO (AP) -- The chief financial officer of Menu Foods sold about half his shares in the company just three weeks before a massive recall of its pet food products, Canadian insider trading reports show.

CFO Mark Wiens sold 14,000 shares for $89,900 on Feb. 26 and Feb. 27. The shares are now worth about $54,000.

"He feels just awful that this link has been made," company spokesman Sam Bornstein said Wednesday.

But Bornstein said Wiens faced a restricted window in which he could sell his shares.

more...
http://biz.yahoo.com/ap/070411/menu_foods_sale.html?.v=2

[citizen snips]

47. Progressive Shares Rise on 1Q Income

NEW YORK (AP) -- Shares of Progressive Corp. spiked Wednesday after the car insurer reported first-quarter income that topped Wall Street's estimate.

The Mayfield Village, Ohio-based auto insurer reported first-quarter profit of $363.5 million, or 49 cents per share, compared with $436.6 million, or 55 cents per share, in the year-earlier quarter.

Operating income was 47 cents per share. Analysts polled by Thomson Financial, on average, expected 46 cents per share.

Goldman Sachs analyst Thomas V. Cholnoky said the company appeared to set aside $14 million anticipating claims, but this was offset by a better underwriting margin from auto insurance.

more...
http://biz.yahoo.com/ap/070411/progressive_mover.html?.v=1

[citizen snips]

48. Grains Fall, Soybeans Rise

CHICAGO (AP) -- Grain futures declined while soybeans advanced Wednesday on the Chicago Board of Trade.

Wheat for May delivery fell 1 1/2 cent to $4.56 1/4 a bushel; May corn fell 8 1/4 cents to $3.60 3/4 a bushel; May oats fell 1 cent to $2.77 1/2 a bushel; May soybeans rose 4 cents to $7.46 1/2 a bushel.

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

June live cattle fell 1.18 cent to 94.62 cents a pound; May feeder cattle fell .75 cent to $1.1120 a pound; May lean hogs fell .05 cent to 75.32 cents a pound; May pork bellies rose .10 cent to $1.0185 a pound.

http://biz.yahoo.com/ap/070411/board_of_trade.html?.v=4

[citizen snips]

50. GM, Other Advertisers Ditch Imus' Show

NEW YORK (AP) -- Even if talk show host Don Imus survives the storm of protest swirling around him, his employers are already feeling the effects of his racially charged comments last week as advertisers pull out of his nationally distributed radio show.

General Motors Corp., a significant advertiser on the show, said on Wednesday that it was suspending its advertising but could resume it at a later date.

"This is a very fluid situation, and we'll just continue to monitor it as it goes forward when he returns to the air," GM spokeswoman Ryndee Carney said, adding that GM would continue to support Imus' charitable efforts for children dealing with cancer and autism.

Imus' show originates on the New York radio station WFAN, owned by CBS Corp., and is distributed nationally on radio by Westwood One. It is simulcast on the MSNBC cable network, which is owned by General Electric Co.'s NBC Universal unit. CBS owns an 18 percent stake in Westwood One and also manages the company.

more...
http://biz.yahoo.com/ap/070411/imus_advertisers.html?.v=2

[citizen snips]

52. Sector Glance: REITs

NEW YORK (AP) -- Shares of real estate investment trusts were down Wednesday as an analyst said that first-quarter total insider sales volume climbed about 36 percent from the prior-year period -- the highest first-quarter insider sales amount in four years.

Lehman Brothers analyst David Harris said in a client note that first-quarter total insider sales volume rose 23 percent sequentially to $405 million. About 70 percent of all quarterly sales were from insiders exercising options as opposed to outright sales. Excluding options-related sales, insider sales for the quarter were $123 million.

Harris said Boston Properties Inc. and Simon Property Group Inc. both had first-quarter insider sales that exceeded $100 million.

Here is how some key real estate investment trust stocks did Wednesday:

Boston Properties Inc., down $1.51 at $116.56

more...
http://biz.yahoo.com/ap/070411/sector_glance_reits.html?.v=1

[citizen snips]

53. Sector Glance: Apparel Retailers

NEW YORK (AP) -- Apparel retailers' stocks were mixed on Wednesday, as one retailer offered a glimpse about how same-store sales reports might go on Thursday.

Same-store sales, or sales in stores open at least one year, are a key measure of a retailer's financial strength, because it measures growth at established stores rather than simply growth from expansion.

Most retailers are set to report same-store sales for March on Thursday. However, after the market closed on Tuesday, Chico's FAS Inc. reported same-store sales rose 5.2 percent during the month.

March same-store sales are expected to be robust due to an earlier Easter this year.

more...
http://biz.yahoo.com/ap/070411/sector_glance_apparel_sellers.html?.v=1

[citizen snips]

56. Biotechnology Sector Edges Lower

NEW YORK (AP) -- Biotechnology stocks finished the day lower Wednesday as Wall Street skidded on minutes from the Federal Reserve's recent meeting alluding to possible interest rate hikes.

The Dow Jones industrials lost 89.23 points to close at 12,484.62, while the Nasdaq composite index and Standard & Poor's 500 index also ended the day lower.

The biotechnology sector experienced an overall downturn with most stocks shedding less than 2 percent. The American Stock Exchange's biotechnology index fell 5.26 points, or 0.67 percent, to 784.03 points. The index tracks several bellwether stocks.

Here is how some key biotechnology stocks did Wednesday:

Genentech Inc., which was set to report first-quarter results after the closing bell, up 13 cents to $82.69

more...
http://biz.yahoo.com/ap/070411/sector_glance_biotechnology.html?.v=1

[citizen snips]

58. Shares of Automakers Close Lower

NEW YORK (AP) -- Shares of domestic and foreign automakers closed lower Wednesday, as speculation continued to swirl about the future of DaimlerChrysler AG's Chrysler unit.

According to a report in The Wall Street Journal, a top DaimlerChrysler executive is scheduled to meet in New York this week with bidders for the struggling U.S.-based division, though the company doesn't appear to plan on talking with billionaire Kirk Kerkorian's Tracinda Corp., which surprised the market last week by issuing a $4.5 billion bid for the troubled unit.

Meanwhile, Ford Motor Co. said it will recall 527,000 Escape sports utility vehicles because of concerns that faulty seals in the vehicles' anti-lock braking systems could cause engine fires or other problems.

Here is how some automakers performed Wednesday:

General Motors Corp. shares fell 62 cents, or 2 percent, to close at $31.46 on the New York Stock Exchange

more...
http://biz.yahoo.com/ap/070411/sector_glance_autos.html?.v=1

[citizen snips]

62. DJIA Leaders & Laggards: GM Slips

NEW YORK (AP) -- General Motors Corp. shares recorded the largest loss Wednesday on the Dow Jones industrial average index, amid reports that DaimlerCrysler AG will meet with possible buyers for its Chrysler unit.

The 30-stock index fell 89.23, to 12,484.62.

General Motors shares dropped 62 cents, or 2 percent, to end at $31.46 on the New York Stock Exchange.

Wal-Mart Stores Inc. shares lost 67 cents to $47.27 on the NYSE.

more...
http://biz.yahoo.com/ap/070411/djia_laggards.html?.v=1

[citizen snips]

64. S&P 500 Leaders & Laggards: Big Lots

NEW YORK (AP) -- Big Lots Inc. pulled the Standard & Poor's 500 Index lower Wednesday after a KeyBanc Capital Markets analyst downgraded the discount retailer's shares.

KeyBanc analyst Jeffrey S. Stein said the sharp rise in Big Lots' share price since he upgraded the stock to "Buy" last month is too steep, and downgraded the shares back to "Hold."

Big Lots' shares fell $2.07, or 6 percent, to close at $32.19 on the New York Stock Exchange.

The S&P 500 Index was down 9.52 to 1,438.87.

more...
http://biz.yahoo.com/ap/070411/s_p_500_laggards.html?.v=1

[citizen snips]

65. Nasdaq 100 Leaders & Laggards: CheckFree

NEW YORK (AP) -- CheckFree Corp. was the biggest decliner on the Nasdaq 100 Wednesday after an analyst lowered his rating on the stock.

The Nasdaq 100, which includes 100 of the largest nonfinancial securities traded on the Nasdaq Stock Market, lost 18.84 points to end at 1,798.09. The broader Nasdaq composite gave up 18.30 points to 2,459.31.

CheckFree, a provider of electronic bill-payment services, dropped $2.79, or 7.3 percent, to close at $35.35, after an analyst downgraded shares of the company on concerns regarding a major contract.

Vertex Pharmaceuticals Inc. reversed Tuesday's gains and lost $1.10, or 3.4 percent, to $31.02.

more...
http://biz.yahoo.com/ap/070411/nasdaq_100_laggards.html?.v=1

[UpInArms]

69. coming in to sweep the floor and close the door

Dow 12,484.62 89.23 (0.71%)
Nasdaq 2,459.31 18.30 (0.74%)
S&P 500 1,438.87 9.52 (0.66%)
10-Yr Bond 4.739% 0.015

NYSE Volume 2,950,193,000
Nasdaq Volume 2,058,079,000

4:20 pm : With the market pricing in a possible rate cut over the last several months, the FOMC minutes providing no indicationn that a rate cut will happen anytime soon exacerbated early consolidation efforts and snapped the Dow's eight-session winning streak.

According to the Stock Trader's Almanac, April has been the best month for the Dow since 1950, turning in an average return of 1.8%. However, with the blue-chip index already surging 1.7% during the first week of April alone and not closing in negative territory since March 28, it wasn't surprising to see some early profit-taking activity.

However, a market having placed way too much emphasis on the belief that the Fed was moving away from a tightening bias to a neutral view, as reflected in the broad-based rally following the surprise removal of "additional firming" in the Fed's latest policy directive, got a wake-up call late Wednesday.

While most of the nine pages of minutes brought few surprises, the FOMC minutes from the March 20-21 FOMC meeting stating that "further policy firming might prove necessary to foster lower inflation," even if offset by economic concerns, showed that there is no leaning towards an easing anytime soon. That reality check further underscored why we remain cautious about the near-term outlook.

It is worth noting, though, that stocks were succumbing to selling efforts before the 2:00 ET release of the minutes.

Contributing to the negative disposition that stalled momentum from the onset of trading was the absence of any notable earnings reports other than the one from Alcoa (AA 35.08 +0.18), which officially kicked off the first quarter earnings season Tuesday night. Unfortunately for the bulls, Alcoa's record net income merely rising 9.0% underscored the strong likelihood that 14 straight quarters of double-digit profit growth for the S&P 500 will come to an end.

With the market increasingly sensitive to weak data, especially from the housing sector, the National Association of Realtors saying it sees median existing home prices down 0.7% in 2007, the first decline in nearly 40 years, also weighed on sentiment. That news, coupled with KB Home's (KBH 41.50 -0.46) CEO saying the housing market will get worse before it gets better, gave investors another reason to keep selling this year's worst performing S&P industry group. Homebuilding is now down 21.7% this year.

All 10 economic sectors closed lower, paced by a 1.1% decline in Telecom, but were more influentially impacted by a 0.8% pullback in the rate-sensitive and much more heavily-weighted Financials sector.

Everything from banks to brokers to REITs extended their year-to-date declines. Citigroup (C 51.83 -0.57), yesterday's best performing component (+1.6%), came under added pressure as shareholders questioned whether today's announced restructuring, which will include 17,000 job cuts, will be enough since cost-cutting can only take the investment bank so far. BTK -0.4% DJ30 -89.23 DJTA -0.5% DJUA -0.4% DOT -1.1% NASDAQ -18.30 NQ100 -1.0% R2K -0.8% SOX -1.1% SP400 -0.6% SP500 -9.52 XOI -0.2% NASDAQ Dec/Adv/Vol 1952/1056/1.98 bln NYSE Dec/Adv/Vol 2242/1046/1.48 bln

3:30 pm : Stocks are clawing back from their worst levels of the day, but decidedly bearish market internals offer little conviction on the part of buyers and the uphill battle they face with only 30 minutes left in the trading day.

After coming in to today's with eight straight days of gains, the Dow was already looking a bit fatigued and ripe for a pullback. Throw in the possibility of further Fed tightening and a questionable restructuring from yesterday's best performing component, Citigroup (C 51.69 -0.71), and the blue-chip index is on pace to post its first decline this month. DJ30 -80.54 NASDAQ -18.61 SP500 -8.69 NASDAQ Dec/Adv/Vol 2060/937/1.65 bln NYSE Dec/Adv/Vol 2275/986/1.25 bln

3:00 pm : Selling remains the name of the game as the major averages continue to hit fresh session lows. A decline of more than 1.0% in Technology stands out as the biggest obstacle for the bulls to overcome; but a 0.8% pullback in the more influential and rate-sensitive Financials sector due to diminished hopes of a rate cut anytime soon is now acting as the market's largest hurdle.

Property & Casualty Insurance (+0.5%) is still one of today's best performers, following better-than-expected Q1 earnings from Progressive Corp (PGR 22.97 +1.17); but everything else, from banks to brokers to REITs, are falling out of favor yet again. DJ30 -101.58 NASDAQ -23.18 SP500 -10.59 NASDAQ Dec/Adv/Vol 2074/914/1.51 bln NYSE Dec/Adv/Vol 2243/1007/1.12 bln

2:30 pm : The indices spike to afternoon lows within the last 30 minutes after the FOMC minutes fail to contain any reference to a rate cut. While most of the nine-page report brought few surprises, with recent economic releases showing that core-PCE is above the Fed's comfort zone while the unemployment rate is below it, the minutes stating that "further policy firming might be necessary," even if offset by economic concerns, shows that there is no leaning towards a rate cut.

In fact, the Fed also stated that they still expect the economy to pick up later this year, presumably without a rate cut. With the market pricing in a possible rate cut over the last several months now, no inclination toward an easing anytime soon is providing more fodder for the bears to question the sustainability of recent market gains. The 10-year note has reversed course and is now down 4 ticks, lifting the yield to 4.73%; but the short end of the curve has gotten hit even harder, as the yield on the 2-year note climbed 3.5 basis points to 4.725%. DJ30 -89.96 NASDAQ -18.38 SP500 -9.28 NASDAQ Dec/Adv/Vol 1995/977/1.36 bln NYSE Dec/Adv/Vol 2163/1066/1.00 bln

[ozymandius]

70. Thanks for being the sweeper-upper.

Sure these numbers are harsh. But there's little evidence of blood and eyeballs on the floor.

See you in the morning.

:hi: