STOCK MARKET WATCH, Friday June 22

[ozymandius]

Source: DU

Friday June 22, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 579 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2359 DAYS
WHERE'S OSAMA BIN-LADEN? 2071 DAYS
DAYS SINCE ENRON COLLAPSE = 2032
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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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 June 21, 2007

Dow... 13,545.84 +56.42 (+0.42%)
Nasdaq... 2,616.96 +17.00 (+0.65%)
S&P 500... 1,522.19 +9.35 (+0.62%)
Gold future... 654.20 -5.80 (-0.89%)
30-Year Bond 5.28% +0.05 (+0.96%)
10-Yr Bond... 5.16% +0.04 (+0.78%)






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

---

more Radical Fringe here


Read more: DU

[ozymandius]

1. Today's Market WrapUp

The First to Turn Down
BY RYAN J. PUPLAVA, CMT

As the economy shifts from expansion to contraction in a normal cyclical economy with moderate inflation, typically the first market to turn down is the bond market. Martin Pring talks about the business cycle’s effect on the stock market in this article: http://www.pring.com/articles/article8.htm.

The bond market tends to fall before the economic expansion peaks because of inflationary fears that pressure interest rates higher. During this time stocks and commodities are still rising because there is still growth in the business community, and inflation causes commodity prices to rise. I have reasons to believe that we are in the 4th stage that Martin Pring identified in his article above. These reasons are based off of a falling dollar, rising commodity prices, subprime mortgage meltdown, and most importantly: rising interest rates.

-cut-

Rising Commodity Prices

As the dollar falls, commodity prices and inflation rise. Jim Puplava has been touting the “Next Big Thing” since his article in 2002 about the shift from paper assets to hard assets. He has been a faithful investor in precious metals and energy through one of the biggest bull markets this decade. If you’re a deflationist and you continue to point out a low core rate of inflation as reported by the government, well then I guess the stuff we normally use such as gas, food, houses, and cars that keep going up in price shouldn’t count as inflation.

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

[ozymandius]

2. no gubbermint numbers today n/t

[Ghost Dog]

3. Tokyo stocks fall as profit-taking sets in after 6-day gains

http://asia.news.yahoo.com/070622/kyodo/d8ptn31o0.html

(Kyodo) Tokyo stocks declined Friday, with the benchmark Nikkei falling for the first time in seven trading days, as investors opted to unload recent major gainers ahead of the weekend.

The 225-issue Nikkei Stock Average fell 51.67 points, or 0.28 percent, to 18,188.63. The benchmark index had climbed over 500 points in total in the past six trading days to reach a seven-year high.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange lost 11.39 points, or 0.64 percent, to 1,777.99.

Brokers said market participants moved to "lock in profits" ahead of the weekend as some technical charts warned that the recent rises have been too fast.

A broad range of shares were sold, including export-oriented large-capitalization issues that made powerful gains in recent sessions due to the yen's fall against other major currencies.

"There is a sense of achievement" after the Nikkei hit a seven-year high, said Hiroichi Nishi, equities chief at Nikko Cordial Securities Inc. "In the short term, it's natural to see some profit-taking."

"But in the long term, economic fundamentals and the supply-demand balance are favorable, so bulls are increasing," Nishi said, referring to heightened expectations that the Nikkei will eventually top the 20,000 line.

/...

[Ghost Dog]

4. Asian Stocks Slide; Mitsubishi Estate Declines on Bond Yields

http://www.bloomberg.com/apps/news?pid=20601080&sid=aisHqgJoo6WU&refer=asia

June 22 (Bloomberg) -- Asian stocks fell for the first time in seven days, led by property developers and insurers, on concern this month's rise in bond yields will curb earnings growth.

Mitsubishi Estate Co. and Millea Holdings Inc., Japan's biggest property and casualty insurer, declined, derailing a rally that had lifted the Morgan Stanley Capital International Asia- Pacific Index to a record. China's CSI 300 Index slumped 3.5 percent, the biggest loss among the region's benchmarks, on speculation the central bank will increase interest rates.

``Higher bond yields have made it difficult for investors to buy property-related and insurance stocks,'' said Katsunori Hirai, who helps oversee $20 billion at Tokio Marine Asset Management Co. in Tokyo. ``Higher rates increase operating costs for developers and push down the value of the assets insurers hold.''

Korea Exchange Bank dropped the most in six weeks after its largest shareholder sold a stake. Caltex Australia Ltd., the nation's biggest oil refiner, tumbled after the company forecast earnings that missed some analyst estimates. Semiconductor stocks rose, led by Nanya Technology Corp., after prices of memory chips climbed to their highest in almost two months.

Financial shares, which include developers and insurers, were the second-biggest drag on the MSCI index, which slipped 0.6 percent to 153.56 as of 5:50 p.m. in Tokyo. The measure has risen 1.3 percent this week, the most since the five days ended June 1. Eight benchmarks, including those in Hong Kong, China, Australia and Malaysia, touched record highs this week.

Japan's Nikkei 225 Stock Average slid 0.3 percent after yesterday reaching its highest since May 2000. Toyota Motor Corp. paced a drop by automakers after they failed to block a Senate agreement to raise U.S. fuel economy standards for new vehicles. Measures fell in markets across the region, except in Hong Kong, where the Hang Seng Index rose to a new high.

/...

[Ghost Dog]

6. China Stocks Slide on Rate Speculation: World's Biggest Mover

http://www.bloomberg.com/apps/news?pid=20601080&sid=a6ohAGNUkjOI&refer=asia

June 22 (Bloomberg) -- China's shares fell the most in almost three weeks on speculation the government will raise interest rates to tame a stock-market boom and cool the economy. Industrial & Commercial Bank of China Ltd. paced the decline.

``It's Friday,'' said Sun Chao, an analyst at Citic Securities Co. in Shanghai. ``People are always worried that the government will announce some negative news over the weekend, such as interest rate hikes.''

The CSI 300 Index slid 145.85, or 3.5 percent, to 4051.43 at the close, the biggest percentage change among markets included in global benchmarks. The measure, which has almost doubled this year, lost 2.1 percent this week.

...

Inflation accelerated to a two-year high of 3.4 percent last month and fixed-asset investment gathered pace, official figures show. The People's Bank of China has raised interest rates twice this year to rein in industrial expansion and tame inflation, with both announcements made over weekends.

Higher interest rates may curb lending and deter people from purchasing homes. They may also help stem the flow of funds from bank deposits into stocks because savings rates in China are capped by the central bank's benchmark one-year deposit rate, currently 3.06 percent.

/...

[ozymandius]

5. Oil prices down over Nigeria concerns

Oil prices were down Friday as markets monitored talks between the Nigerian government and labor union officials to end a general labor strike in Africa's largest crude producer.

Light, sweet crude for August delivery fell 30 cents to $68.35 a barrel on the New York Mercantile Exchange midday in Europe.

The contract fell 21 cents Thursday to settle at $68.65 a barrel after market supply concerns were alleviated on reports that the strike had not affected oil exports from Nigeria.

August Brent crude shed 46 cents Friday to $69.76 a barrel on the ICE Futures exchange in London.

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

[ozymandius]

7. Senate passes pro-renewables energy bill

WASHINGTON - Democrats celebrated a step toward reducing U.S. dependence on oil as the Senate approved a bill calling for more ethanol and the first boost in gas mileage in decades.

Now the House plans to follow suit, perhaps as early as next week.

The Senate late Thursday voted 65-27 to pass the first energy bill since Democrats took control of Congress in January. But it was far from a complete victory.

Resistance to the new auto fuel economy standards threatened passage until the final hours. Democratic leaders held off a vote until shortly before midnight as senators were called back to the Capitol to assure the votes needed to overcome a threatened filibuster by opponents of the tougher fuel regulations.

http://news.yahoo.com/s/ap/20070622/ap_on_go_co/congress_energy

[Ghost Dog]

8. GLOBAL MARKETS-Yen on defensive, Ifo hits European equities

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-06-22T115444Z_01_L22171168_RTRIDST_0_MARKETS-GLOBAL-WRAPUP-4.XML

LONDON, June 22 (Reuters) - The yen weakened broadly on Friday as investors chased high-return assets at the expense of the low-yielding Japanese currency, while softer than expected German business confidence upset European share markets.

European stocks ventured into negative territory after Germany's Ifo economic research institute said its business climate index dropped to 107.0 in June from 108.6 a month earlier. Economists polled by Reuters had forecast 108.4.

The report undermined a mild rally in stocks that followed losses on Thursday driven by fears of higher interest rates and worries about the impact of troubles at two hedge funds managed by Bear Stearns.

Merger and acquisition activity had supported trading with the Wall Street Journal reporting NYSE Euronext (NYX.PA: Quote, Profile , Research) had entered the competition for Borsa Italiana by submitting a preliminary bid to rival one from the London Stock Exchange.

The pan-European FTSEurofirst 300 index <.FTEU3> was down 0.2 percent by 1109 GMT, nursing post Ifo losses, while U.S. stock futures pointed to a lower open.

"The Ifo is a little bit disappointing but historically we remain at relatively high levels," said Audrey-Childe Freeman, European economist at CIBC World Markets.

Analysts said overall the Ifo did not materially change expectations for euro zone interest rates to rise at least one more time this year from 4 percent currently. Continued...

/...

[Ghost Dog]

38. Bourses lose ground as German confidence dips

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B7c326280%2D7e80%2D4345%2D850a%2Df6480f8e88c5%7D

European equities edged lower on Friday as oil companies fell after a drop in crude prices overnight, with pressure also on financial stocks. The market’s weakness also relected a sharper-than-expected fall in German business confidence, measured by Ifo, the economic institute. This echoed Monday’s fall in investor sentiment from the ZEW group. In closing trade in London, the FTSE Eurofirst 300 was down 0.3 per cent to 1,598.69, Frankfurt’s Xetra Dax shed 0.2 per cent to 7,949.63, the CAC 40 in Paris lost 0.1 per cent to 6,023.25 and London’s FTSE 100 fell 0.4 per cent to 6,567.4.

[ozymandius]

9. Rates on 30-year mortgages down

WASHINGTON - Rates on 30-year mortgages, after rising for five straight weeks, edged down slightly this week as investors digested news that suggested the economic drag from housing could last longer than expected.

Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.69 percent this week. That was down from 6.74 percent last week, when rates had jumped to the highest level in 11 months.

Analysts said the slight retreat occurred because financial markets saw two weak reports on housing as indications that troubles in the slumping sector are continuing to mount.

The government reported that construction of new homes and apartments fell by 2.1 percent in May, leaving building activity 24.2 percent below the level of a year ago, while the National Association of Home Builders said its index of builder sentiment in June fell to a 16-year low.

http://news.yahoo.com/s/ap/20070621/ap_on_bi_go_ec_fi/mortgage_rates

[ozymandius]

10. Americans still confident in home values: survey

WASHINGTON (Reuters) - Although existing homes are selling at their slowest pace in four years, most Americans are confident their homes are worth more now than they were a year ago, according to a survey released on Thursday.

A poll conducted by the Boston Consulting Group found that 55 percent of Americans believe their house would sell for more money now than last year, compared with 59 percent who felt the same way last summer. Eighty-five percent expect their home to be worth even more in five years than it is now.

-cut-

National surveys of home prices seem to bear out at least a degree of optimism, showing prices still rising, if only slowly.

According to the Office of Federal Housing Enterprise Oversight, the average U.S. home price rose 4.3 percent over the year ended in the first quarter, the smallest gain in nearly a decade.

http://news.yahoo.com/s/nm/20070621/bs_nm/usa_economy_housing_dc

[Gregorian]

36. If nobody's buying, it doesn't matter what they're worth.

[AnneD]

30. The cold water splash of reality......

500 Top foreclosure zip codes
Where the most foreclosures have been filed.
June 19 2007: 3:56 PM EDT


NEW YORK (CNNMoney.com) -- The most foreclosure activity is clustered in two area; old Rust-Belt areas and new Sun-Belt ones.

More than a quarter of all leading foreclosure zip cdes are in California but many of the worst-hit zip codes are in the Midwest. Ohio has 49 zip codes in the top 500, trailing only California and Florida, which has 72.

Michigan has 34, including four in the top 10. All of them are within Detroit city limits.

Foreclosures: Hardest hit zip codes

http://money.cnn.com/2007/06/19/real_estate/500_top_foreclosure_zip_codes/index.htm

[ozymandius]

11. U.S. stocks head for sharply lower open

NEW YORK - Wall Street headed for a lower open Friday as bond yields remained elevated and stocks fell overseas.

The expected pullback a day after sizable gains would characteristically cap the type of seesaw weeks Wall Street has seen lately as it has dealt with concerns about interest rates.

Friday's session, unusually devoid of economic or earnings data, will draw some attention with the initial public offering of a stake in the management arm of Blackstone Group LP. The most talked-about IPO since Google Inc. went public values the buyout shop at $33 billion. The company begins trading on the New York Stock Exchange under the symbol BX.

The session comes ahead of a busy week in which the Federal Reserve meets and in which investors will receive several readings on the housing sector and the final report on economic growth in the first quarter, with release of the gross domestic product.

http://news.yahoo.com/s/ap/20070622/ap_on_bi_st_ma_re/wall_street

[ozymandius]

12. Web radio sites to go silent in protest

(Business 2.0 Magazine) -- If, like me, you're a fan of Internet radio sites such as Pandora or Live365, you'll have to find something else to listen to next Tuesday. That's the day dozens of online broadcasters go silent, in protest of a new levy the government and the music labels are about to impose.

An overly dramatic gesture? A petulant response to a little extra taxation? Perhaps -- until you discover that the new fee appears to add up to more than the annual revenue of all Internet radio sites put together. That ludicrously high bill could well cripple this promising young industry in its crib.

-cut-

Internet radio stations frantically crunched the numbers: it appears that Yahoo, Pandora, and RealNetworks will have to spend $1.15 billion per year on the administrative fee alone. Meanwhile, SoundExchange, an intermediary group set up by the record labels that collected $20 million in royalties last year, will soon be able to afford plenty of administration.

-cut-

The webcasters have filed for an emergency stay of the ruling with the U.S. Court of Appeals, and a bipartisan bill with 120 sponsors is wending through Congress. The bill would bring Internet radio royalty fees in line with those for the satellite radio industry, which pays the music industry just 7% of its total revenue.

http://money.cnn.com/2007/06/21/magazines/business2/internet_radio.biz2/index.htm?postversion=2007062205

[ozymandius]

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

08:00 am : S&P futures vs fair value: -7.5. Nasdaq futures vs fair value: -9.0. Early indications are pointing to a sharply lower start for stocks. Aside from another jump in the 10-year yield (to 5.19%), reports that Bear Stearns (BSC) plans to take out $3.2 bln in loans to avoid a "fire sale" of one of its hedge funds is also contributing to the negative disposition.

On a positive note, Financial stocks will also be in focus ahead of today's widely anticipated IPO of private equity firm Blackstone (BX). It priced last night at $31, the high end of its range, and is likely to trade sharply higher from its debut price since it was oversubscribed by a considerable amount.

[ozymandius]

17. updating

09:00 am : S&P futures vs fair value: -5.4. Nasdaq futures vs fair value: -6.0. S&P 500 and Nasdaq 100 futures are off their lows but still languish well below fair value to indicate a lower open for the cash market. There is some semblance of stabilization in bonds; but the yield settling in only a few basis points below the 5.25% fed funds rate continues to undermine the momentum equities have enjoyed for nearly a year.

08:30 am : S&P futures vs fair value: -7.0. Nasdaq futures vs fair value: -8.5. Not much has changed since the last update as a negative bias persists in pre-market trading. Bear Stearns' (BSC) actions to hopefully stave off a crisis continue to stir up memories of the 1998 bailout of Long-Term Capital Management, especially in the absence of any scheduled economic data or other major news items to redirect the market's focus.

The influential Technology sector is also in focus this morning; but also for the wrong reasons. Of the three S&P 500 components being removed next week -- PMC Sierra (PMCS), ADC Telecom (ADCT) and Sanmina-SCI (SANM), all are tech stocks.

[ozymandius]

14. U.S. economy to expand in coming months

NEW YORK — The U.S. economy should expand modestly in coming months as a healthy job market continues to trump weakness in housing prices, a gauge of future business activity showed on Thursday.

The Conference Board said its index of leading economic indicators rose a higher-than-expected 0.3 percent in May, boosted by rising stock prices, higher consumer expectations and the availability of jobs.

Economists said that jobs should continue to be plentiful, despite an unexpected surge in jobless claims last week.

The Labor Department reported Thursday that unemployment claims totaled 324,000 last week, up 10,000 from the previous week, to the highest level since mid-April.

http://news.yahoo.com/s/ap/20070621/ap_on_bi_ge/economy

Oooh - feel the confidence! Here's a simple equation: (jobless claims)-(jobs created)+(people entering the work force)=We're still losing ground.

[Lucky Luciano]

15. Watch Blackstone's IPO today - ticker BX

This is the most important IPO of the year for sure. One of the most powerful private equity groups in theworld and a true profit machine in the LBO world. In 2001 they earned $39M and in 2006 they earned north of $2B - yes B for billion. They will make more this year. One founding partner (the firm started with $400K in cash), Steven Schwarzman has 24% of the company shares. The company priced t the high end of its IPO range at $31 and is valued at about $33B. Schwarzman did very well..

Ticker will be BX.

[AnneD]

28. Morning Marketeers...

:donut: and lurkers. Thanks for the heads up Lucky. So the house flipper is going public. In going public-they won't get away with the shenanigans that they use to do......a distinct disadvantage. They can always go out and start another private equity company I guess. But to my way of thinking-as far as private equity takeovers of real businesses and the IPO's of these private equity companies; this is no better than selling the junkyard that has a big first and second mortgage against it. Yeah, you might find the part you want, but you will have to pay 3x as much, pull it yourself, and when you clean it all up to use it-it is half rusted away. Let me give you a few morsels to chew on.

1) the private equity groups have stripped all the businesses they own of any equity. That is one part of their profit.

2) they have also taken out their additional profits in the form of loans against the companies future profits and pocketed it-frequently not reinvesting to improve said company.

So what can they do to get rid of these companies that are bloated and burdened with debt-sell it to some willing chump that looks at all the 'profit' these private equity firms have generated.

So my warning is, if you think the housing bubble and bust are bad-wait til you see what this does for the stock market values. A very few will make money, but most of use will be forced to pay an exorbitant price for a rusted useless used auto part. This is a Ponzi scheme of the first order.


I went to see La vi en Rose last night. They had a large block of seats saved for the French American Business Alliance. I did not know this block was saved. I sat down and held a seat for my daughter (she was en route). Some pseudo official person that thought they were important came buy and asked if I was with the group. I fibbed and said yes. I ended up sitting with the president of the alliance (pure luck I assure you). We had a marvelous time and exchanged cards. Hubby may even end up doing a concert for them.

FYI the movie was very good, esp Marion Cotillard's portrayal of Edith Piaf. There were some scenes that were too unbearably painful to watch (I am not to fond of seeing people self destruct) and some that were a bit fuzzy because I knew little about the singer's personal life-but I found it compelling none the less. I think Marion will be up for a nomination for best actress. So if you want something more substantial than sequel fluff-you won't leave the theatre feeling cheated.

Happy hunting and watch out for the bears.

[ozymandius]

16. BOND CONVEXITY FROM MORTGAGES - Jim Willie

The cancer that is mortgage bonds does not linger in isolation. Everything in the bond world is connected to almost everything in the bond world, at least within the US sphere of speculative madness. The financial credit market is a confusing jumble of speculation, risk reducing hedges, and leveraged insanity found mainly in the hedge fund arena. Mortgages are causing problems from their bond hedge schemes, both on the loan portfolio side and the bond security side. Always one should consider both, and never are they inseparable. The only separable aspect is who the loser is nowadays. Negative convexity dictates the sale of bond futures in the absent midst of cash flow on the portfolio side, and in hedge book management of losses in the securities (bond) side. The mortgage debacle might be finally hitting the US credit market on a wider scale, despite the claims of no contagion made by corners bereft with common prostitution. Heck, abject liars, carnival barkers, shell game artists, and self-interested promoters might be a better description, so as not to insult prostitutes who offer a worthwhile honest service in the oldest but illegal profession in most societies. A hidden force is this convexity, alluded to by astute bond market students and observers with eyes trained on the Chicago pits.

-cut-

THE VICIOUS CIRCLE

As bond hedges are sold, leverage applies to lift long-term interest rates. In the single week of June 15th, the 30-year fixed mortgage rate rose 20 basis points to hit 6.74% in a punishing blow. The 10-year USTNote bond yield rushed toward 5.25% and 5.30%, urged higher by European markets, dampened lower by US markets the next morning, day after day. The microcosm is the bond market. Its extension is the stock market, greatly dependent upon the low bond yield to encourage investment in stocks which promise higher earning yields of return than bonds. The macrocosm is the USEconomy, where consumers retrench, where corporations rein in capital expenditures, and not incidentally, where lending institutions go bust and shutter operations. Get back to me when the only bankrupted such firms are the subprimes. What a lie, one in a long list of lies, and if not pure deception, then shallow analysis. The participants in hedge schemes are all across the entire financial sector, from small and medium and large banks and mortgage firms, to small and medium and large banks and capital management firms.

Each quantum step up in long-term interest rates generates a new round of business decisions, to assess the effectiveness of the bond hedges, to rejigger the actual hedges still on the books, to judge the needed cash flow, to make urgent decisions for survival of businesses, and to plan for lawsuits against broker dealers on Wall Street. The VIRTUOUS CIRCLE a few years ago saw steps in what were called ‘new rounds of refinancing’ by Secy of Inflation Sir Alan (Magoo) Greenspan, chief alchemist and designated charlatan, protector of bankers and scheister to households, mythology spokesman of politicians and shylock to homeowners. NEXT COMES THE VICIOUS CIRCLE, whose end is not determined. In the first couple weeks of June, we finally saw the TNX move above the 5.0% mark, which will surely serve as the new support level for long-term bond yields. The TNX resistance is at 5.25%, which when exceeded, will lead to a surprising and gut-wrenching move to 5.5% or higher in the long-term bond yields.

http://www.financialsense.com/fsu/editorials/willie/2007/0621.html

[UpInArms]

18. dollar watch

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

Last trade 82.413 Change -0.300 (-0.36%)

Aussie Reaches 18 Year High Against The Dollar - The Sky Is the Limit?

http://www.dailyfx.com/story/currency/aud_news/Aussie_Reaches_18_Year_High_1182505585867.html

The Australian stock exchange was the only disappointment today, as falling metal prices and worse than anticipated performance of few large Australian corporations put strong downward pressure on equities, which closed with a 4.4 point loss at 6382.6. Meanwhile, carry traders, largely Japanese pension funds, have been dominating the FX and bond markets, pushing the Aussie to its 18 year high against the US dollar and exerting downward pressure on 10-yr yields.



Headlines

Strong economy boosts manufacturing – data – The Australian Industry Group Pricewaterhouse Coopers Survey of Australian Manufacturing showed that the production of domestic firms rose to 12 percent from 6 in the first quarter. This marked a fourth consecutive quarter of growth of manufacturing activity driven by strong domestic demand and economic growth. The transport equipment sector saw largest growth gains, best since June 2004. However, as the Aussie gets stronger businesses predict a tougher second half of the year. Source: Herald Sun
http://www.news.com.au/heraldsun/story/0,21985,21948991-5012062,00.html

Cold shoulder mystifies FMG – Fortescue Metal Group chairman Herb Elliott is bewildered as to why Australian money is not supporting the company’s project to start exploration of iron ore at the Pilbara, breaking the current duopoly in the region. Fortescue secured all of the funding it was hoping to get from high-yield Asian, European and US bond markets and was hoping to raise the remaining $1 billion at home. The company is known for struggling with its cost, and so the Australian fund managers did not put their money into the company’s equity, despite its spike from 30c to over $40 in just four years. UBS Investment bank is rumored to be looking into covering Fortescue and the top management remains optimistic about the project. Such disparity in the sentiment between domestic and international investors is puzzling if not suspicious. Source: The Australian
http://www.theaustralian.news.com.au/story/0,20867,21945951-5005200,00.html

...more...

Uptrend Returns in Dow, Bond Yields and US Dollar

http://www.dailyfx.com/story/bio1/Uptrend_Returns_in_Dow__Bond_1182461860520.html

The snapback in the Dow Jones Industrial Average today was nothing short of impressive. Having been down over 100 points yesterday, the Dow slid another 86 points at the onset of US trading. Fortunes were reversed however as the Dow rebounded just as quickly as it fell. Yields suffered the same fate as they sold off sharply ahead of the US equity market open but rebounded shortly afterwards. The US dollar was the only asset that refused to fall. In fact, the biggest loss that we saw in the US Dollar against the Japanese Yen over the past 24 hours was a modest 20 point drop. The Euro on the other hand remained trapped within a 30 point trading range throughout the day. Although the rise in bond yields as well as the jump in the Philadelphia Fed index could be credited for taking the dollar and the Dow higher, the market’s feel-good factor is primarily keeping risk appetite high. The US economy faces problems from the fallout of the Bear Sterns hedge funds, but with no new bailouts surfacing the market is hoping that this is an isolated incident. Whether or not this is true remains to be seen. Like the Empire State manufacturing survey, the Philly Fed index jumped to a 2 year high in the month of June. The rise was driven almost exclusively by an increase in new orders since both the employment and prices paid components dropped. Underlying weakness capped any major movements in the dollar despite the magnitude of the surprise. Trading should continue to remain quiet over the next 24 hours with no US data due for release. This type of market has been perfect for range traders.

...more...

[UpInArms]

19. 3 Drug Makers Are Convicted in Reimbursement Overcharges from Medicare

http://www.nytimes.com/2007/06/22/business/22Drug.html?ex=1340164800&en=69c41ae25a6fff55&ei=5088&partner=rssnyt&emc=rss

A federal judge ruled yesterday that AstraZeneca, Bristol-Myers Squibb and Schering-Plough must pay damages for overcharging on certain drugs paid for by Medicare, pension funds, insurers and patients.

Judge Patti B. Saris of United States District Court in Boston found the companies liable in a nationwide class-action lawsuit over drugs administered by doctors. She dismissed claims against Johnson & Johnson while giving plaintiffs’ lawyers until Aug. 1 to provide calculations of damages for the other companies.

The plaintiffs argued that the drug makers had sold medications to doctors at steep discounts to the “average wholesale price” that Medicare and pension funds paid, while secretly encouraging them to claim full reimbursement from insurers. The plaintiffs are seeking hundreds of millions of dollars in damages.

<snip>

The judge found that AstraZeneca, which is based in London, acted “unfairly and deceptively” by causing the publication of false and inflated average wholesale prices for its prostate cancer drug Zoladex, which exceeded doctors’ acquisition costs by as much as 169 percent.

Bristol-Myers, of New York, caused the publication of false and inflated average wholesale prices for five drugs, including Taxol, which had spreads as high as 500 percent. Warrick, a subsidiary of Schering-Plough, which is based in Kenilworth, N.J., inflated average wholesale prices for its generic drug albuterol sulfate in a range of 100 percent to 800 percent, the judge said.

...more...

[ozymandius]

25. America's healthcare system is fertile for this.

From recent memory - this seems to happen with some regularity.

[UpInArms]

20. 9:34 and it's a gusher

Dow 13,492.76 53.08 (0.39%)
Nasdaq 2,606.69 10.27 (0.39%)
S&P 500 1,516.42 5.77 (0.38%)
10-Yr Bond 5.189% 0.026

NYSE Volume 57,852,000
Nasdaq Volume 50,747,000

[ozymandius]

21. and they're off - - way off

9:34
Dow 13,505.68 Down 40.16 (0.30%)
Nasdaq 2,608.40 Down 8.56 (0.33%)
S&P 500 1,516.50 Down 5.69 (0.37%)
10-Yr Bond 5.187% Up 0.024
NYSE Volume 85,367,000
Nasdaq Volume 66,017,000

[UpInArms]

22. The Limited to lay off 10% of work force (retail and employment weakness shows)

03. The Limited increases share buyback to $1 bln
9:20 AM ET, Jun 22, 2007 - 17 minutes ago

04. The Limited sets $100 mln cost saving plan
9:20 AM ET, Jun 22, 2007 - 17 minutes ago

05. Limited to issue $1.25 bln of debt
9:20 AM ET, Jun 22, 2007 - 17 minutes ago

06. Limited to lay off 10% of work force
9:20 AM ET, Jun 22, 2007 - 17 minutes ago

[ozymandius]

23. Just to show how out-of-touch I am with the average mall shopper -

I have not seen a The Limited in years. I tend to avoid expensive shopping environments like indoor mega-malls. So upon reading that The Limited is attempting to save its corporate hide, I was surprised to see the retailer still exists.

[UpInArms]

26. iirc The Limited mainly served

the female office workers - mostly corporate attire and not $$$

:hi:

been a while for me - hate malls - don't think I've been in one in 20 years :)

[AnneD]

29. Spoken....

like a guy.:rofl: I can't get hubby anywhere near a mall unless I tell him I am going to buy lingerie. Then he wants to 'carry the bag.:spray:
I don't go much but my teen daughter likes to go. She doesn't spend much. I'll go if it is hot outside and I have some time to kill. I don't buy much either. I like the Galleria hear in Houston. Lots of unique shops, great people watching and one of the first skating rinks in Houston. It is where Tara Lipinsky first started.

I think some of these retailers have violated one of the biological laws of survival-their niches are so small that they can't survive a change. Take Victoria Secret. No plus sizes. Just because you are a plus doesn't mean you don't want the VS. They are missing an entire group of customers in the field of lingerie. And these folks have MONEY. Just ask the folks at Fredricks. It's ok to sell the dream-just make for the reality.

[ozymandius]

24. 9:48

Dow 13,489.42 Down 56.42 (0.42%)
Nasdaq 2,605.87 Down 11.09 (0.42%)
S&P 500 1,514.85 Down 7.34 (0.48%)
10-Yr Bond 5.197% Up 0.034
NYSE Volume 195,308,000
Nasdaq Volume 152,108,000

[UpInArms]

27. 10:17 with blather

Dow 13,476.09 69.75 (0.51%)
Nasdaq 2,604.50 12.46 (0.48%)
S&P 500 1,513.55 8.64 (0.57%)
10-Yr Bond 5.204% 0.041

NYSE Volume 374,393,000
Nasdaq Volume 307,387,000

10:00 am : Stocks remain on the defensive as investors digest the debut of the largest private equity firm ever to go public and whether or not it signals a top in the market. Within the last few minutes, Blackstone Group (BX 37.20 +6.20) opened up about 17% at $36.45 and is currently posting a 20% gain.

Last night, Blackstone priced the largest IPO since 2002 at $31, at the top end of its indicated range, setting its market value at $33.6 bln. Despite warnings from the U.S. Congress to raise the firm's tax bill and to delay the IPO, the deal was reportedly vastly oversubscribed. DJ30 -45.60 NASDAQ -7.71 SP500 -5.99 NASDAQ Dec/Adv/Vol 1549/932/158 mln NYSE Dec/Adv/Vol 1767/940/74 mln

09:40 am : Consistent with futures indications, stocks open lower across the board as rising interest rates continue to act as an overhang. The 10-year yield at 5.19% remains a concern for the economic and earnings outlook.

In the absence of any major news items other than the widely touted debut of Blackstone Group (BX), Bear Stearns (BSC 144.64 -1.10) reportedly taking steps aimed at preventing a "fire sale" of troubled hedge fund assets is placing some added anxiety in the capital markets. Throw in oil prices climbing back above $69/bbl and some hesitation amid the annual rebalancing of the Russell 2000, it's not surprising to see a lack of follow-through buying. DJ30 -40.88 NASDAQ -8.13 SP500 -5.65 NASDAQ Vol 78 mln NYSE Vol 40 mln

[Eugene]

31. IMF says US nears 'stall speed,' cuts growth forecast

Source: Agence France-Presse

IMF says US nears 'stall speed,' cuts growth forecast

25 minutes ago

WASHINGTON (AFP) - The International Monetary Fund on Friday cut
its forecast for US economic growth to 2.0 percent for 2007 and said
the world's biggest economy was "uncomfortably close" to "stall speed."

In its annual report on the United States, the IMF said it shares the
assessment of US authorities "that the most likely scenario is a soft
landing as growth recovers and inflation falls," but it said this is not
certain.

The IMF said its "baseline" forecast for the US economy is for growth
of 2.0 percent over the course of 2007 -- down slightly from its 2.2
percent forecast in April.

-snip-

http://news.yahoo.com/s/afp/20070622/bs_afp/imfuseconomygrowth_070622151811

[TrogL]

35. Unfortunate day to post that analogy

They're trying to get Atlantis down in one piece

[Roland99]

32. 12:11pm - A little more red

DJIA 13,463.82 -82.02 -0.61%
Nasdaq 2,598.79 -18.17 -0.69%
S&P 500 1,512.18 -10.01 -0.66%
Dow Util 488.09 -5.96 -1.21%
NYSE 9,896.50 -64.29 -0.65%
AMEX 2,317.92 -9.62 -0.41%
Russell 2000 834.88 -4.93 -0.59%
Semcond 505.95 -6.55 -1.28%
Gold future 656.70 +2.50 +0.38%
30-Year Bond 5.29% +0.00 +0.02%
10-Year Bond 5.18% +0.01 +0.25%

[UpInArms]

33. Will "no material impact" at Bear Sterns be like AIG's $3 Billion Write-Down?

03. Bear CFO: liquidations from hedge funds on hold
1:30 PM ET, Jun 22, 2007 - 5 minutes ago

04. Bear CFO: asset sales from funds will continue
1:30 PM ET, Jun 22, 2007 - 5 minutes ago

05. Bear CFO: funds are negotiating with counterparties
1:30 PM ET, Jun 22, 2007 - 5 minutes ago

06. Bear CFO: market impact appears relatively contained
1:22 PM ET, Jun 22, 2007 - 13 minutes ago

07. Bear CFO: some hedge fund counterparties liquidated assets
1:20 PM ET, Jun 22, 2007 - 15 minutes ago

08. Bear CFO: loan to hedge fund is adequately secured
1:19 PM ET, Jun 22, 2007 - 16 minutes ago

[UpInArms]

34. 1:37 EST numbers and "no material impact" blather

Dow 13,423.01 down 122.83 (0.91%)
Nasdaq 2,594.12 down 22.84 (0.87%)
S&P 500 1,508.24 down 13.95 (0.92%)
10-Yr Bond 5.141% up 0.022

NYSE Volume 1,457,110,000
Nasdaq Volume 1,212,141,000

1:30 pm : Not much has changed since the last update as selling remains widespread across most areas. There are, however, a handful of areas attracting buyers. Motorcycles (+3.7%) as heavy call buying in Harley-Davidson (HOG 62.33 +2.21) raises speculation it is be sought after as a takeover target. Trucking (+3.6%) ranks as the day's second best performing S&P industry group following an analyst upgrade on Ryder Systems (R 54.27 +1.87).

Electronic Manufacturing Services (+2.0%) has been in focus following reports that Sanmina-SCI (SANM 3.36 -0.05) will be removed from the S&P 500 one week from today. However, a 10% surge in shares of Jabil Circuit (JBL 23.33 +2.13), which topped analysts' expectations for the first time in three quarters, is more than offsetting a 1.5% pullback in shares of smaller rival SANM. DJ30 -131.72 NASDAQ -26.85 SP500 -16.26 NASDAQ Dec/Adv/Vol 2144/786/1.16 bln NYSE Dec/Adv/Vol 2589/643/902 mln

1:00 pm : After falling as much as 169 points, the Dow is trying to bounce back, getting some assistance as interest rates continue to improve. However, the 10-year note yield still near 5.15% hardly provides much enthusiasm. DuPont (DD 52.46 +0.21) is the only Dow component posting a gain while the majority of the index's 29 remaining names are still down at least 1.0%.

Investors are also listening closely to developments coming out of Bear Stearns' (BSC 143.84 -1.97) conference call. The company recently saying it has has ample "liquidity" to make a $3.2 bln loan and sees "no material impact" on profits from the subprime fallout initially lifted BSC shares to afternoon highs; but additional commentary has not been viewed in as positive a light as the stock is now retracing session lows. DJ30 -132.48 NASDAQ -27.59 SP500 -16.37 NASDAQ Dec/Adv/Vol 2098/797/1.03 bln NYSE Dec/Adv/Vol 2567/656/784 mln

12:30 pm : Stocks kick off the afternoon session taking a turn for the worse and blowing past their morning lows. A renewed wave of selling interest within the last now leaves all three major averages down more than 1.0%.

Adding to the market's recent struggles have been the Dow, S&P 500 and Nasdaq's inability to find support above key technical levels. The extensiveness of the recent sell-off, as evidenced by a sharp spike lower in the futures market, also suggests that a sell program was triggered. DJ30 -136.49 NASDAQ -29.04 SP500 -17.88 NASDAQ Dec/Adv/Vol 1924/929/872 mln NYSE Dec/Adv/Vol 2346/837/652 mln

[Robbien]

37. So BearStearns is taking out $3.2 billion in loans to stop creditors from seizing assets

and it is saying No biggie. Don't worry. Be happy.

Appears their game face is not working.

[fedsron2us]

40. They are all in denial

and we are not talking about the river in Egypt

http://www.safehaven.com/article-7812.htm

[ozymandius]

39. I leave for a few hours... and ... OH! just look at this mess!

Numbers at the close. Some settling may occur.


Dow 13,373.91 Down 171.93 (1.27%)
Nasdaq 2,588.96 Down 28.00 (1.07%)
S&P 500 1,503.06 Down 19.13 (1.26%)
10-Yr Bond 5.138% Down 0.025
NYSE Volume 2,656,802,000
Nasdaq Volume 2,295,265,000

3:30 pm : Selling remains the name of the game going into the closing bell. All 10 sectors trading lower, led by a 1.6% decline in Financials, all but guarantees a disappointing finish for the S&P 500. Growing fears of widespread markdowns following the subprime fallout at Bear Stearns (BSC 143.45 -2.36) now earmarks Investment Banks (-2.8%) as today's worst performing S&P industry group.

On the Dow, 29 of its 30 components in negative territory not only position the price-weighted index to close lower but also finish in the red for the first Friday in 14 weeks. DJ30 -149.13 NASDAQ -25.19 SP500 -16.88 NASDAQ Dec/Adv/Vol 2075/904/1.61 bln NYSE Dec/Adv/Vol 2486/794/1.30 bln

3:00 pm : The major averages are off their session lows heading into the final hour of trading, but buyers' last ditch efforts to cut their losses aren't amounting to much. It is worth noting that volatility and volume is expected to pick up going into the close as fund managers make adjustments to account for today's annual Russell index rebalancing.

All companies on the Russell 2000 that don't meet certain criteria, such as a market cap of between $233 mln and $3 bln or trade at more than $1 a share as of the market's close on May 31, will be removed. Roughly 150 NYSE-listed stocks are expected to be affected.DJ30 -118.19 NASDAQ -22.15 R2K -0.7% SP500 -13.24 NASDAQ Dec/Adv/Vol 2087/888/1.49 bln NYSE Dec/Adv/Vol 2488/764/1.18 bln

[ozymandius]

41. It's actualy worse than originally thought.

Dow 13,360.26 Down 185.58 (1.37%)
Nasdaq 2,588.96 Down 28.00 (1.07%)
S&P 500 1,502.56 Down 19.63 (1.29%)
10-Yr Bond 5.138% Down 0.025
NYSE Volume 3,794,937,000
Nasdaq Volume 2,698,443,000

blather to come

[UpInArms]

43. hiya Ozy!

my amusement for the day was reading some of the blather from yesterday - where it said the one "up" day set a trend :eyes:

yeppers - it was a one-day trend ;)

[Roland99]

44. 3.8 billion shares? Isn't that a little high?

[UpInArms]

45. blather

Stocks stumbled out of the gate Friday and trended lower throughout the session as renewed concerns about the impact of the subprime mortgage market prompted a sell-now-ask-questions later reaction across the board.

All three major averages plunged more than 1.0%; and nearly 90% of the S&P 500 lost ground.

Of the 10 sectors finishing lower, weakness throughout the Financial sector (-1.7%) was the biggest thorn in the market's side.

Bear Stearns (BSC 143.91 -1.90) providing $3.2 bln to bail out just one of its two troubled hedge funds, and failing to downplay the impact of its subprime fallout, intensified fears of widespread markdowns. The Investment Banks group (-2.6%) was among today's worst performing S&P industry groups.

As the most heavily weighted of all S&P 500 sectors, accounting for nearly 22% of the total weighting on the broader market, it's easy to see why the absence of leadership from Financials was very problematic. Briefing.com downgraded the sector to Underweight in mid-April.

On a positive note, bond yields closed at session lows. However, with hedge-fund risk being attributed for the flight-to-quality bid in Treasuries, there was little comfort in that move. With the 10-year note yield still hovering above 5.00% (now 5.13%), market momentum has faded.

Meanwhile, the widely touted IPO of The Blackstone Group (BX 35.06 +4.06) finally came to fruition Friday. Its stock opened up about 18% at $36.45. BX ended with a 13% gain, which was respectable considering the market sell-off.

Utilities (-1.8%) actually turned in the day's worst performance, and was one of seven sectors posting a decline of at least 1.0%. The Materials sector was the best of the worst; but it still fell 0.7%.

With the Russell 1000 expected to get at least $15 bln in new money today, and those investment dollars having to come from somewhere, the annual rebalancing of the Russell indexes exacerbated the broad-based move to the downside.

As an aside, heavy call buying in Harley-Davidson (HOG 62.85 +2.73) and Macy's (M 41.64 +2.77) raised speculation they are being sought after as takeover targets. Fittingly, Motorcycles (+4.5%) and Department Stores (+0.8%) were on today's very limited list of winners. BTK -1.8% DJ30 -185.58 DJTA -0.9% DJUA -1.8% DOT -0.9% NASDAQ -28.00 NQ100 -1.0% R2K -0.7% SOX -1.5% SP400 -1.0% SP500 -19.63 XOI -0.9% NASDAQ Dec/Adv/Vol 2030/1008/2.74 bln NYSE Dec/Adv/Vol 2479/824/1.96 bln

[loudsue]

46. OUCH!!!

:kick:

[UpInArms]

42. deleted for the closing number headbump with Ozy

[AnneD]

47. Great minds, like water

flow through the same gutter;) have a great weekend. I'll be busy being overworked and underpaid.