STOCK MARKET WATCH, Friday December 28

[ozymandius]

Source: du

STOCK MARKET WATCH, Friday December 28, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 389 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2537 DAYS
WHERE'S OSAMA BIN-LADEN? 2259 DAYS
DAYS SINCE ENRON COLLAPSE = 2220
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES

---

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

AT THE CLOSING BELL ON December 27, 2007

Dow... 13,359.61 -192.08 (-1.42%)
Nasdaq... 2,676.79 -47.62 (-1.75%)
S&P 500... 1,476.37 -21.29 (-1.42%)
Gold future... 831.80 +2.30 (+0.28%)
30-Year Bond 4.61% -0.07 (-1.54%)
10-Yr Bond... 4.20% -0.08 (-1.92%)






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

---

Read more: du

[ozymandius]

1. Market WrapUp: "Tricky" Trichet Whipsaws the Euro

European Central Bank chief Jean “Tricky” Trichet gets his nickname “Tricky” from spinning traders in circles, saying something one day, then doing the opposite the next day. After flooding the Euro-zone money markets with an unprecedented 350 billion euros of cheap cash on Tuesday, the ECB began quietly mopping up the surplus funds by Friday. “We are not pouring in liquidity,” ECB chief Jean “Tricky” Trichet told the European Parliament in Brussels. “The loans are paid back too.”

Last week, inter-bank Euro lending rates fell after the ECB’s biggest ever single cash injection, a two-week operation, aimed at insuring banks would have enough liquidity though year-end. One month Euro Libor interest rates plunged 50 basis points to 4.45%, the biggest drop in almost six years.

-chart-

However, the ECB disclosed over the weekend that it had already drained the excessive liquidity over the next three days, Wed – Friday, by withdrawing 420 billion euros, substantially more than the 350 billion euro injection it made on Dec 18th. Austrian central banker Klaus Liebscher insisted the ECB would do everything necessary to reduce Euro zone inflation, which reached a peak of 3.1% last month, well above the bank’s upper target limit of 2%.

...

The Euro’s historic rally did hit a brick wall when “Tricky” Trichet warned on Nov 26th, “Sharp and abrupt moves in the Euro exchange rate are not welcome from the standpoint of economic growth, and I do not welcome brutal moves,” (code words for intervention last used in Dec 2004). Trichet noted that US Treasury chief Henry Paulson said a strong US$ was in the best interest of the United States. “I noted with great, great attention that declaration,” Trichet warned.

....

However, the Bernanke Fed is more concerned about bailing out its shareholders, - Wall Street brokers and banks, from the sub-prime mortgage meltdown, and is expanding the US M3 money supply at a 16% annual rate. President George W. Bush said on Dec 20th he would consider all options to help the US economy weather a deep housing slump, and the easiest and quickest option is to pressure his appointed lackeys at the Fed for an easier money policy in January.

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

[Demeter]

10. VERY Interesting

I suppose it's too much to ask if the US is doing the same? That would be telling, after all.

[Ghost Dog]

38. ECB launches new bid to drain liquidity from eurozone markets

FRANKFURT (AFP) - The European Central Bank said Friday it would seek to drain a further 150 billion euros (220 billion dollars) from eurozone money markets through a new offer aimed at absorbing excess liquidity.

The offer had a fixed rate of 4.0 percent, the same level as the ECB's benchmark lending rate, and would come to maturity on December 31. The bank on Thursday absorbed 145.64 billion euros from the market in a similar operation.

The ECB over the last few days has been providing liquidity for periods of two weeks or longer while mopping up excess cash in the shorter term to ensure that interbank lending markets are amply supplied -- but in a manner that does not fuel inflation.

The latest operation was aimed at absorbing liquidity that had built up in the market since the start of a crisis last August in the US subprime -- or high-risk -- mortgage sector.

...

The ECB, for example, last week made a record 350 billion euros available at 4.21 percent, an especially attractive offer that was below the rate charged by banks themselves. The objective was to prompt a realignment in short-term bank rates that had crept up in previous weeks, bringing them closer to the eurozone's minimum bid rate of 4.0 percent.

/.. http://news.yahoo.com/s/afp/20071228/bs_afp/marketsfinanceecbbankbankingmoney_071228093737;_ylt=AuH8jS5.5M9ZeKhEBOWMg0GmOrgF

[mac2]

2. This administration should be impeached

for their robbery of our treasury and future. Trillions of tax payer dollars handed out in bags, etc.

Politicans walk away with plunder and book deals (money laundering payoffs) while being called "heros of democracy".

[ozymandius]

4. I think you'll find little argument here.

One could only argue who should be impeached first.

[ozymandius]

3. Today's Reports

9:45 AM Chicago PMI Dec
Briefing Forecast 52.5
Market Expects 52.0
Prior 52.9

10:00 AM Existing Home Sales Nov
Briefing Forecast NA
Market Expects NA
Prior 4.97M

10:00 AM New Home Sales Nov
Briefing Forecast 700K
Market Expects 715K
Prior 728K

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

[UpInArms]

22. TABLE-Chicago PMI index 56.6 in Dec vs 52.9 in Nov

http://www.reuters.com/article/bondsNews/idUSNAT00356420071228

Dec 28 (Reuters) - The National Association of Purchasing
Management-Chicago said on Friday its index of Midwest business
activity rose in December to 56.6 from 52.9 in November.

Economists polled by Reuters had forecast an December
figure of 51.8.

                   Dec   Nov   Oct   Sept  Aug    July
(seasonal adj)
NAPM-Chicago          56.6  52.9  49.7  54.2  53.8   53.4
Production*           55.4  57.4  46.9  58.3  55.7   59.0
New Orders*           58.4  53.9  53.9  56.2  58.4   53.4
Order Backlog*        60.7  45.9  39.9  50.5  38.8   37.4
Inventories           44.0  47.1  49.6  38.2  44.6   55.1
Employment*           49.0  54.4  49.5  52.0  53.7   61.6
Supplier Deliveries*  47.9  46.0  52.7  50.6  51.9   55.3
Prices Paid*          63.8  76.2  74.7  59.0  71.8   73.1

The * indicates components used to calculate index.

[UpInArms]

23. U.S. Nov. new-home sales fall 9% to 647,000 pace

01. U.S. Nov. new-home inventory rises to 9.3 months
10:00 AM ET, Dec 28, 2007 - 3 minutes ago

02. New-home median sales price rises to 4-month high
10:00 AM ET, Dec 28, 2007 - 3 minutes ago

03. U.S. Oct. new-home sales revised to rise 1.7%
10:00 AM ET, Dec 28, 2007 - 3 minutes ago

04. U.S. Oct. new-home sales revised downward
10:00 AM ET, Dec 28, 2007 - 3 minutes ago

05. U.S. Nov. new-home sales fall 9% to 647,000 pace
10:00 AM ET, Dec 28, 2007 - 3 minutes ago

06. U.S. Nov. new-home sales 647,000 vs. 710,000 expected
10:00 AM ET, Dec 28, 2007 - 3 minutes ago

[UpInArms]

26. Sales in the U.S. Midwest tumbled 27.6 percent to the slowest pace since July 1991

http://www.reuters.com/article/bondsNews/idUSN2730048820071228

WASHINGTON, Dec 28 (Reuters) - Sales of new single-family U.S. homes fell much more than expected to an annual rate of 647,000 in November, the slowest pace in more than 12 years, according to a government report on Friday.

<snip>

Sales in the U.S. Midwest were particularly weak, tumbling 27.6 percent to the slowest pace since July 1991.

...more at link...

[ozymandius]

31. Refresh my memory. Who was President then?

Oh wait....

:eyes:

[Roland99]

39. "Read my lips"... 'course, he sailed in on Ray-Gun's coattails.

[UpInArms]

24. U.S. newspaper help-wanted ads ease in November

http://www.reuters.com/article/bondsNews/idUSNAT00356520071228

NEW YORK, Dec 28 (Reuters) - The number of help-wanted ads
in U.S. newspapers eased in November, a private research group
said on Thursday.

The Conference Board said its gauge measuring help-wanted
ad volume in the United States dipped to 21 from a downwardly
revised 22 in October. The index was 29 a year earlier.

"The latest readings on print want-ad volume show some
slowing in recent months, after slowly losing steam through the
spring and summer," said Ken Goldstein, labor economist at the
Conference Board, in a statement.

"Data for online advertising also point to reduced job
recruitment efforts -- initial unemployment claims have edged
higher," Goldstein said.

Help-wanted ads have declined in all of the nine U.S.
regions tracked in the last three months, with the steepest
decrease in the Pacific. The ads in that region decreased by
12.8 percent.

...more...

[ozymandius]

5. Oil rises after US crude stocks decline

SINGAPORE - Oil prices rose Friday after larger-than-expected declines in U.S. crude inventories, and on heightened geopolitical concerns following the assassination of Pakistani opposition leader Benazir Bhutto.

....

Light, sweet crude for February delivery added 15 cents to $96.77 a barrel in Asian electronic trading on the New York Mercantile Exchange by late afternoon in Singapore.

The contract rose 65 cents to settle at $96.62 a barrel on Thursday, a one-month high.

In its weekly inventory report, the U.S. Energy Department's Energy Information Administration said oil inventories fell by 3.3 million barrels last week, more than double the 1.3 million barrel decline analysts expected.

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

[UpInArms]

18. Crude rises to trade above $97 a barrel

http://www.marketwatch.com/news/story/crude-rises-trade-above-97/story.aspx?guid=%7BEF98484A%2DB208%2D4657%2D983E%2D5F6BDCEAFA77%7D&dist=hplatest

NEW YORK (MarketWatch) -- Crude-oil futures rose to trade above $97 a barrel, extending their gains from the previous session. Crude for February delivery gained 53 cents to $97.15 a barrel on the New York Mercantile Exchange. "Oil prices remain firm, after the assassination of Benazir Bhutto, Pakistan's former prime minister, which heightened concerns of further violence in the region," said analysts at Action Economics. "Crude oil prices are also supported by yesterday's report which showed that U.S. inventories declined more than expected last week."

[ozymandius]

6. Merrill Lynch plans to lay off 1,600: report

NEW YORK (Reuters) - Merrill Lynch & Co (MER.N) plans to announce about 1,600 layoffs after disclosing fourth-quarter write-downs, CNBC reported on Thursday.

The layoffs are likely to be in trading positions and related areas, and will not likely include the investment banking or private client groups, CNBC's Charlie Gasparino reported.

very short

[ozymandius]

7. Citi, HSBC among banks mulling selling units: report

NEW YORK (Reuters) - U.S. and European banks including Citigroup Inc (C.N) and HSBC Holdings PLC (HSBA.L) are mulling sales of parts of their businesses from branches to entire units in a nod to crunch times ahead, the Wall Street Journal reported on its Web site on Thursday.

While Citigroup may shed or shut several of its mid-size units, HSBC could exit all or parts of its $13 billion auto finance business, the Journal reported, citing sources familiar with the situation.

Some executives estimate that Citigroup could dispose of as much as $12 billion worth of what are considered noncritical assets, according to the Journal.

http://news.yahoo.com/s/nm/20071228/bs_nm/citigroup_sale_dc

[ozymandius]

8. Berkshire Hathaway buys insurance unit

NEW YORK - Insurer ING Group said Friday it will sell its reinsurance unit, NRG N.V., to Warren Buffett's Berkshire Hathaway Group for about $435.7 million.

The acquisition could be part of a plan by Buffett to launch a new company to insure municipal bonds. The Wall Street Journal reported Buffett will launch a bond insurance business Friday in New York, aiming to capitalize on instability in that sector.

In recent weeks, bond insurers have come under fire as rating agencies have downgraded them, or warned of possible downgrades, because of their exposure to the deteriorating credit markets.

Standard & Poor's downgraded ACA Capital Holdings Inc.'s bond insurance unit to "CCC" from "A" on Dec. 19, while Fitch Ratings has placed two of the largest bond insurers, MBIA Inc. and Ambac Financial Group Inc., on negative credit watch.

http://news.yahoo.com/s/ap/20071228/ap_on_bi_ge/berkshire_hathaway_insurance

[ozymandius]

9. Buffett to start up municipal bond insurer: report

NEW YORK (Reuters) - Billionaire investor Warren Buffett is set to launch a bond insurer targeting local governments, seeking to profit from troubled credit markets, the Wall Street Journal reported on Friday.

The new bond insurer, Hathaway Assurance Corp. is set to start operating on Friday in New York state, and guarantee the bonds that cities, counties and states use to finance public works, the report said, quoting Buffett from an interview.

Buffett's Berkshire Hathaway Inc (BRKa.N) owns some 50 businesses, including auto insurer Geico Inc. Buffett and Ajit Jain, who heads Buffett's insurance businesses, will also seek approval to operate in California, Puerto Rico, Texas, Illinois and Florida, the report said.

....

The report comes amid warnings from credit ratings agencies that some major insurers, including Ambac Assurance Corp. and MBIA Inc. (MBI.N), may lose their triple-A ratings due to exposure to subprime mortgage debt.

http://news.yahoo.com/s/nm/20071228/bs_nm/buffett_insurer_dc

[UpInArms]

11. dollar watch

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

Last trade 76.270 Change -0.349 (-0.46%)

US Dollar Continues to Falter on Risk Aversion as Euro, Swissie Surge

http://www.dailyfx.com/story/bio2/US_Dollar_Continues_to_Falter_1198842282874.html

Risk aversion remained high on Friday morning – a day after the assassination of former Pakistani PM Benazir Bhutto – as the greenback continues to crumble while the Euro and Swiss franc surged as traders sought the safe-haven of the day. Meanwhile, Asian and European equities tumbled following Wall Street’s losses yesterday, taking carry trades like GBPJPY and USDJPY out with them. US data has been broadly mixed as of late, with consumer confidence and spending reports surprisingly proving to be more optimistic, while production and housing figures have been broadly disappointing. Nevertheless, with risks for the US economy vastly to the downside and the Federal Reserve still perceived as being dovish, it is little wonder the greenback is so susceptible to losses, especially at times of geopolitical distress.

Taking a look at this morning’s economic releases, according to Nationwide Building Society, UK house prices fell 0.5 percent in December, marking the second consecutive month of declines and dragging the annual rate to a one-and-a-half year low of 4.8 percent. Indeed, property prices have started to pull back as demand wanes in the face of affordability issues and stricter lending standards. Moreover, mortgage rates have remained high despite the Bank of England's December 25bp rate cut, and with these factors unlikely to subside substantially in the near-term, house price growth in the UK should continue to slow and take a toll on GDP. These obvious cracks in the UK economic picture help to explain the British pound’s weakness against the Euro, as the EURGBP has surged to record highs above 0.7350. With the Bank of England unlikely to shift from their neutral-dovish monetary policy bias anytime soon, the EURGBP pair may not start to recede until European Central Bank President Jean-Claude Trichet backs off from his staunchly hawkish stance. (We’ve been discussing fundamentals behind the EURGBP pair with other traders – come join the discussion in the DailyFX Carry Trade Forum.)

Meanwhile, the Swiss franc has undoubtedly benefited from the risk aversion pervading the market, as USDCHF plunged over 100 points on Friday morning to break below 1.13. At first glance, Swiss data released this morning appears to be unsupportive of the Swissie’s gains, as the November UBS Consumption Indicator eased to 2.131 while the KOF Leading Indicator slipped to a seven month low of 1.99 in December. Though these indices did fall lower - indicating a slowing in consumption and economic growth in coming months – the figures are relatively high and tight labor market conditions along with strong demand for Swiss goods should keep the economy's engine running at a fairly robust pace.

Looking ahead to today’s US session, Chicago PMI and New Home Sales are both anticipated to fall lower, reflecting souring business conditions and a deteriorating housing market. As a result, traders will likely ramp up speculation of a January rate cut by the FOMC – as fed fund futures already price in a 76 percent chance of a 25bp cut – which could weigh on the greenback and Dow even more.

...more...

US Dollar Drops as Geopolitical Risks Rattle the Currency Markets

http://www.dailyfx.com/story/bio1/US_Dollar_Drops_as_Geopolitical_1198794982862.html

Weak economic data as well as the assassination of Pakistan’s former Prime Minister Benazir Bhutto sent the US dollar tumbling. In the past, we have seen the dollar rise in response to geopolitical risks as traders flock to the safety of the greenback, but that was not the case today. Since the US has interests in the region, the markets fear that they may end up getting involved especially if extremists are able to wrestle control of the nuclear armed country. Although scary, as long as the situation does not get worse over the next week, we believe that this fear will slowly subside, allowing traders to turn their focus on trading opportunities in the New Year. Ending the year with weaker US economic data makes it hard to believe that the January seasonality effect on the US dollar and US stocks will take hold of the markets once again. According to our Seasonality study, the dollar tends to rise in January as global investors reinitiate new investments. This is the same reason why we also tend to see US stocks rally in the first trading month of a new year. Even though consumer confidence improved in the month of December, durable goods and jobless claims were much weaker than expected. It is becoming increasingly apparent that the weakness of the US dollar is not having a very beneficial impact on the US economy. The durable goods report is just another piece of news in what has been a string of weak manufacturing data. Earlier this month, the Philly Fed survey dropped to a 4 year low while the Empire State manufacturing survey fell to a 6 month low. Tomorrow we are expecting Chicago PMI, new home sales and the help wanted index. The disappointments in the US manufacturing numbers suggest that there is a strong chance that the Chicago PMI number will also fall short of expectations.

...more...

LIBOR Rates Fall but Federal Reserve Faces Difficult Task Ahead

http://www.dailyfx.com/story/topheadline/LIBOR_Rates_Fall_but_Federal_1198774347716.html



<snip>



...more...

[Hugin]

12. Great charts, UIA.

I am quite alarmed by the difference in Personal Income and Personal Spending.

!

[TalkingDog]

13. A Deflationary Primer.

There is more, but here's the meat:

And as an aside - looking for innoccuous images like "popping balloons" and deflation on the internet can be an eye opening experience.


http://www.elliottwave.com/deflation/

The Primary Precondition of Deflation

Deflation requires a precondition: a major societal buildup in the extension of credit (and its flip side, the assumption of debt). Austrian economists Ludwig von Mises and Friedrich Hayek warned of the consequences of credit expansion, as have a handful of other economists, who today are mostly ignored. Bank credit and Elliott wave expert Hamilton Bolton, in a 1957 letter, summarized his observations this way:

In reading a history of major depressions in the U.S. from 1830 on, I was impressed with the following:

(a) All were set off by a deflation of excess credit. This was the one factor in common.
(b) Sometimes the excess-of-credit situation seemed to last years before the bubble broke.
(c) Some outside event, such as a major failure, brought the thing to a head, but the signs were visible many months, and in some cases years, in advance.
(d) None was ever quite like the last, so that the public was always fooled thereby.
(e) Some panics occurred under great government surpluses of revenue (1837, for instance) and some under great government deficits.
(f) Credit is credit, whether non-self-liquidating or self-liquidating.
(g) Deflation of non-self-liquidating credit usually produces the greater slumps.

Self-liquidating credit is a loan that is paid back, with interest, in a moderately short time from production. Production facilitated by the loan - for business start-up or expansion, for example - generates the financial return that makes repayment possible. The full transaction adds value to the economy.

Non-self-liquidating credit is a loan that is not tied to production and tends to stay in the system. When financial institutions lend for consumer purchases such as cars, boats or homes, or for speculations such as the purchase of stock certificates, no production effort is tied to the loan. Interest payments on such loans stress some other source of income. Contrary to nearly ubiquitous belief, such lending is almost always counter-productive; it adds costs to the economy, not value. If someone needs a cheap car to get to work, then a loan to buy it adds value to the economy; if someone wants a new SUV to consume, then a loan to buy it does not add value to the economy. Advocates claim that such loans "stimulate production," but they ignore the cost of the required debt service, which burdens production. They also ignore the subtle deterioration in the quality of spending choices due to the shift of buying power from people who have demonstrated a superior ability to invest or produce (creditors) to those who have demonstrated primarily a superior ability to consume (debtors).

Near the end of a major expansion, few creditors expect default, which is why they lend freely to weak borrowers. Few borrowers expect their fortunes to change, which is why they borrow freely. Deflation involves a substantial amount of involuntary debt liquidation because almost no one expects deflation before it starts.

My Favorite Master Artist: Karen Parker GhostWoman Studios

[UpInArms]

19. great post!

:thumbsup:

:applause:

[Hugin]

20. Ha!

"people who have demonstrated a superior ability to invest or produce (creditors) to those who have demonstrated primarily a superior ability to consume (debtors)." :spray:

In the current backward upside-down supply-side economy, I heartily disagree that what we currently call 'creditors'
have demonstrated any superior abilities except consumption.

Way back, when there was a middle-class and it was their savings which was the basis of 'production', I could maybe
agree.

It could be time to pull back the curtain and see who really does the production of value and the consumption of
resources.


"people who have demonstrated a superior ability to invest or produce () to those who have demonstrated primarily a superior ability to consume ()."

Edit to add: Except for the parenthetical blame assignments the article is a very good explanation. I think in this
era of double speak great effort should be expended to dispel the notion that the greatest producers are the supply
siders and the greatest consumers are the regular folk.

[Warpy]

42. It's elegantly stated

but what I've said all along: debt accumulating at the bottom of the wealth pyramid because all the real wealth has been shifted upwards into the hands of the fewest is what causes a bust. It's not a sudden selloff of stocks, housing, or any other commodity. It's the substitution of easy credit for adequate wages, forcing people into debt they have no hope of being able to pay off in a reasonable lifetime combined with falling wages that make damned sure it's never going to be repaid.

As uncomfortable as inflation is, deflation is far, far worse. I'm afraid we'll see both before this one is over. After all, it's not like we still have manufacturing capability in this country. We are hostage to multinational corporations who have robbed us of our own industry and as the dollar continues to be gutted in value, prices will climb. Eventually, what we got is what we got, and we'll just be shifting it back and forth among each other in order to afford to eat.

As the cause of a bust is obvious to anyone with a brain, so is the cure. Had the New Deal remained in place, we would not be facing this disaster. We'd have maintained adequate protectionist policies to keep industry in this country while allowing multinationals to build overseas for the overseas market; wages would have been maintained at a living rate; banking would be strictly regulated; the rich would be yowling in pain every April 15 while getting richer at a slower rate; and there would not be a huge credit bubble in the process of bursting as all that unsecured consumer debt becomes uncollectable.

I hate to say I told you so, but I did, over and over again, over the past 40 some years, ever since Kennedy stupidly lowered the top tax rate on the very richest. Shifting wealth to the richest does nothing for an economy. Distributing it throughout the economy and keeping it moving means keeping it working, and that's how an economy can be kept stable.

[kineneb]

47. spreading money around...

"Shifting wealth to the richest does nothing for an economy. Distributing it throughout the economy and keeping it moving means keeping it working, and that's how an economy can be kept stable."

A much earlier writer expressed your thoughts in a more earthy manner:

Money is like manure, of very little use except it be spread.
Francis Bacon (1561-1626)

...guess greed makes people stupid (and stinky).

Sorry I am late to today's SMW... had to take Hubby to Dr.

[UpInArms]

14. Gold futures rise amid safe-haven demand, dollar weakness

http://www.marketwatch.com/news/story/gold-futures-rise-amid-safe-haven/story.aspx?guid=%7B3337BE12%2DC19D%2D4104%2DBB2C%2D95339AE81B91%7D&dist=hplatest

NEW YORK (MarketWatch) -- Gold futures rose on Friday, continuing to benefit from safe-haven demand and dollar weakness. Gold for February delivery rose $5.90 to $837.70 an ounce on the New York Mercantile Exchange. Gold is "supported by safe haven flows after the assassination of Pakistan's former Prime Minister Benazir Bhutto," said analysts at Action Economics. "High oil prices and a weaker US dollar also support investment in bullion as a hedge against inflation."

[ozymandius]

15. Stock Futures Point Toward Strong Open

NEW YORK (AP) -- U.S. stocks headed for a strong open Friday as investors awaited data on home sales and manufacturing to help determine how Wall Street will cap a fractious year.

The volatility that marked the second half of 2007 showed itself again Thursday after the assassination of Pakistani opposition leader Benazir Bhutto and a weak reading on big-ticket manufactured items. The major indexes each lost more than 1 percent, including the Dow Jones industrial average, which dropped nearly 200 points.

While a rebound might not be unexpected after a sharp, single-session pullback, economic data will likely determine whether any recovery holds.

The Commerce Department is expected to weigh in after the opening bell with a report on new home sales for November; Wall Street expects the reading to be weak, as was the case for October.

Investors are also awaiting release of the Chicago purchasing managers index of December manufacturing activity in the Midwest, considered a precursor of the national Institute for Supply Management report being released next Wednesday.

http://biz.yahoo.com/ap/071228/wall_street.html

[UpInArms]

16. More Chapter 11 filings on tap for 2008 - biz bankruptcies

http://www.marketwatch.com/news/story/bankruptcies-likely-rise-again-2008/story.aspx?guid=%7BFB61AD50%2DD60C%2D474D%2DB670%2D274BAEE7EC5A%7D&dist=MostReadHome

SAN FRANCISCO (MarketWatch) - Market analysts warn that more U.S. businesses are likely to hang "going bankrupt" signs on their doors next year as the twinned blows of slower economic growth and pricey commodities force the weakest companies to seek refuge from creditors.

In a twist from this year's trends, the pain is likely to spread from mortgage lenders, homebuilders and consumer-oriented firms - all areas that contributed to a 40% jump in bankruptcy filings in 2007 and are expected to play a role in 2008's misery.

Next year, industries at risk for the biggest increases in Chapter 11 filings include electronics makers, energy miners like coal companies and agriculture firms, according to Global Insight.

Makers of durable goods like machinery are also more at risk and will likely contribute to a 13% rise in bankruptcies in 2008, says the private research firm, which bases its estimates on issuers' credit quality and operating conditions.

Some of the reasons? "Slowing growth, particularly in the United States, increasing supply pressures, increasing production in China," lists Global Insight managing director Mark Killion.

...more...

[ozymandius]

17. Most Asian Markets Fall on Bhutto Death

BANGKOK, Thailand (AP) -- Most Asian markets fell Friday amid anxiety over the assassination of Pakistani opposition leader Benazir Bhutto and lingering worries about the outlook for the U.S. economy.

Bhutto's death on Thursday, just ahead of Jan. 8 elections, sent shock waves through international markets on worries that global instability may follow, although some analysts said the impact is likely to be limited.

....

While Pakistan's stock market was closed, the market reaction in neighboring India was muted. Mumbai's Sensex index dipped 9.77 points, or 0.05 percent, to close at 20,206.95.

In Tokyo, Japan's stock market wrapped up the year with a sharp drop. The Nikkei 225 index fell 256.91 points, or 1.7 percent, to 15,307.78 points.

For the year, the Nikkei lost 11.1 percent, its first annual decline in five years.

Japanese investors remain worried about the American economy -- a vital export market -- amid the subprime mortgage crisis. A report from Goldman Sachs that said write-downs at U.S. banks, including Citigroup Inc., Merrill Lynch & Co. and JPMorgan Chase & Co., may deepen, helped to squelch sentiment.

http://biz.yahoo.com/ap/071228/asian_markets.html

[Ghost Dog]

41. Drop in risk appetite damps Asian stocks

Shares were broadly lower across Asia on Friday as weak US and Japanese data and political uncertainty following the assassination of Benazir Bhutto, Pakistan's opposition leader, blunted the appetite for risk. Gold and bond prices rose as investors shifted money to traditionally safer asset classes.

Tokyo stocks ended a half-day trading session sharply lower, summing up a year that has seen the Nikkei fall by some 11 per cent, making it the worst performing large international stock exchange.

Most other markets were also down though off the day's lows. Indian shares were little affected by events in neighbouring Pakistan, recovering most of their opening losses.

Khiem Do, head of Asian multi-asset at Barings in Hong Kong, said markets had actually performed quite well given US data overnight showing a weaker-than-expected rise in orders for durable goods orders and a surprise jump in jobless claims. This, he said, raised the possibility of stagflation taking hold in 2008 - a combination of stagnating growth and worsening inflation that plagued the world in the 1970s.

"That's not nice for equity markets as it stops the Federal Reserve from cutting rates," Mr Do said. "The event in Pakistan is obviously a very nasty one but I don't think it's the main reason why markets are down. The political situation there has been volatile for a long time."

The cost of insuring dollar-denominated Pakistan government bonds against default rose sharply, by 100 basis points to 530 basis points in Hong Kong.

Trade in Pakistan's stock market has been suspended for three days in the wake of Ms Bhutto's assassination. Despite the political uncertainty, it has been one of the region's better performers for 2007. At the close on Thursday, the Karachi 100 index was up 47 per cent on the year at 14,772.08.

In spite of India's fraught relations with Pakistan, Bombay stocks were among the best performing in Asia, with the benchmark Sensex little changed at lunchtime, down 0.2 per cent at 20,169.97.

The Sensex started the day about 1 per cent lower following a fall in global depositary receipts of Indian and other regional shares in New York. But shares bounced back to regain their initial losses after the first ten minutes of trading.

Analysts said market sentiment was so strong in India, driven by robust economic growth and double-digit earnings in the corporate sector, that it would take a major domestic shock to drive the stock market off course.

"India is immune to everything at the moment - not just Pakistan. It's immune to subprime, it's immune to oil at $100 a barrel," said Prithvi Haldea, chairman and managing director of Prime Database, a capital market research firm.

"We can debate how much of this is justifiable but the fact remains that sentiment in India is very high."

He said overseas crises were drawing more money into India rather than the reverse, with India's economy driven largely by domestic demand rather than exports, leading investors to see it as a relative safe haven when the global economy looked weak.

/... http://news.yahoo.com/s/ft/20071228/bs_ft/fto122820070410059990

[ozymandius]

21. opening with a wreath of roses for your pony

9:37
Dow 13,428.21 Up 68.60 (0.51%)
Nasdaq 2,692.46 Up 15.67 (0.59%)
S&P 500 1,485.71 Up 9.34 (0.63%)
10-Yr Bond 4.127% Down 0.072
NYSE Volume 114,614,617.188
Nasdaq Volume 59,467,308.594

09:15 am : S&P futures vs fair value: +11.5. Nasdaq futures vs fair value: +9.3.

09:00 am : S&P futures vs fair value: +11.9. Nasdaq futures vs fair value: +12.5. Futures dip a bit, but still point to a higher start.

08:30 am : S&P futures vs fair value: +14.5. Nasdaq futures vs fair value: +15.5. It is still shaping up to be a higher start. On the economic front, December Chicago PMI will be released at 9:45 ET, and November new home sales will be released at 10:00 ET. Economists expect the PMI reading to dip to 52.0 and 715K new home sales.

[antigop]

25. Morning! I thought people on this thread may be interested in David Cay Johnston's new book

Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You with the Bill)

http://www.buzzflash.com/store/reviews/908

Johnston cuts through the official version of events and shows how, under the guise of deregulation, a whole new set of regulations quietly went into effect—regulations that thwart competition, depress wages, and reward misconduct. From how George W. Bush got rich off a tax increase to a $100 million taxpayer gift to Warren Buffett, Johnston puts a face on all of the dirty little tricks that business and government pull. A lot of people appear to be getting free lunches—but of course there’s no such thing as a free lunch, and someone (you, the taxpayer) is picking up the bill.

Johnston’s many revelations include:

• How we ended up with the most expensive yet inefficient health-care system in the world
• How homeowners’ title insurance became a costly, deceitful, yet almost invisible oligopoly
• How our government gives hidden subsidies for posh golf courses
• How Paris Hilton’s grandfather schemed to retake the family fortune from a charity for poor children
• How the Yankees and Mets owners will collect more than $1.3 billion in public funds

In these instances and many more, Free Lunch shows how the lobbyists and lawyers representing the most powerful 0.1 percent of Americans manipulated our government at the expense of the other 99.9 percent.

With his extraordinary reporting, vivid stories, and sharp analysis, Johnston reveals the forces that shape our everyday economic lives—and shows us how we can finally make things better.

I would highly recommend (if you haven't already read it) David's previous book "Perfectly Legal".

[Hugin]

27. Looks worthy of a read...

Thanks antigop.

[UpInArms]

28. here's a bit about that Hilton fortune

http://www.reuters.com/article/newsOne/idUKN2636653220071226?sp=true

The foundation supports projects that provide clean water in Africa, education for blind children, and housing for the mentally ill. Its aims, based on Conrad Hilton's will, are "to relieve the suffering, the distressed and the destitute."

"Speaking for the family as well as the foundation, we are all exceedingly proud and grateful for this extraordinary commitment," said Steven Hilton, one of Barron's sons and president and chief executive of the foundation.

Conrad Hilton established the foundation in 1944 and when he died in 1979 left virtually all of his fortune -- including, according to media reports at the time, a 27 percent controlling stake in Hilton Hotels -- to the charity.

But Barron Hilton challenged the will and after a nearly decade-long legal struggle reached an out-of-court settlement to split ownership of the shares with the foundation in 1988, The New York Times reported.

The hotel group was sold for $20 billion in October to private equity firm Blackstone Group, while the acquisition of Harrah's -- of which Barron Hilton was a board member until 2006 -- is due to be completed by Apollo Management and TPG Capital in early 2008.

[Shipwack]

32. It's funny, though...

Barron has recently changed -his- will to leave 97% of his wealth to charity (leaving poor Paris and her parents with a paltry 30 million or so).

I wonder if his body will even be interred before the lawsuits challenging -that- will start.

[ozymandius]

29. New-Home Sales Plunge by 9 Percent

WASHINGTON (AP) -- Sales of new homes plunged last month to their lowest level in more than 12 years, a grim testament to the problems plaguing the housing sector.

The Commerce Department reported Friday that new-home sales tumbled by 9 percent in November from October to a seasonally adjusted annual rate of 647,000. That was the worst showing since April 1995, when the pace of sales was 621,000.

The sales pace for November was much weaker than economists were expecting. They were predicting sales in the weakest sector of the economy to drop by around 1.8 percent, to a pace of 715,000.

The median sales price of a new home dipped to $239,100 in November. That is 0.4 percent lower than a year ago. The median price is where half sell for more and half for less.

By region, sales fell in all parts of the country, except for the West, where they rose.

http://biz.yahoo.com/ap/071228/economy.html

[ozymandius]

30. We're edging toward The Ugly yet again.

11:08
Dow 13,373.83 Up 14.22 (0.11%)
Nasdaq 2,680.70 Up 3.91 (0.15%)
S&P 500 1,478.39 Up 2.02 (0.14%)
10-Yr Bond 4.102% Down 0.097
NYSE Volume 683,083,375
Nasdaq Volume 374,161,437.5

11:00 am : The major indices are trading with slight gains and are well off their session highs that were reached shortly after the opening bell.

Share of bond insurers Ambac (ABK 25.76, -3.38) and MBIA (MBI 18.95, -3.32) are down sharply on news that Berkshire Hathaway (BRK.A 139,700, +1900) is starting a bond insurance business of its own.

Treasury bonds are up, extending yesterday's gains. The 10-year note is up 26 ticks, pushing its yield down to 4.10%.DJ30 +13.98 NASDAQ +7.81 SP500 +2.95 NASDAQ Dec/Adv/Vol 1208/1556/307 mln NYSE Dec/Adv/Vol 1167/1835/200 mln

---

But then - maybe Warren Buffett will come to save us all.

[wordpix]

43. good, let the developers eat the dirt that usually ends up in our waterways

they deserve it

[DemReadingDU]

33. WSJ: A CDO Called Norma Left 'Hairball of Risk'

12/27/07 Wall Street Wizardry Amplified Credit Crisis
A CDO Called Norma Left 'Hairball of Risk';
Tailored by Merrill Lynch
By CARRICK MOLLENKAMP and SERENA NG

In recent years, as home prices and mortgage lending boomed, bankers found ever-more-clever ways to repackage trillions of dollars in loans, selling them off in slivers to investors around the world. Financiers and regulators figured all the activity would disperse risk, and maybe even make markets safer and stronger.

Then along came Norma.

Norma CDO I Ltd., as its full name goes, is one of a new breed of mortgage investments created in the waning days of the U.S. housing boom. Instead of spreading the risk of a global home-finance boom, the instruments have magnified and concentrated the effects of the subprime-mortgage bust. They are now behind tens of billions of dollars of write-downs at some of the world's largest banks, including the $9.4 billion announced last week by Morgan Stanley.

Norma illustrates how investors and Wall Street, in their efforts to keep a lucrative market going, took a good idea too far. Created at the behest of an Illinois hedge fund looking for a tailor-made bet on subprime mortgages, the vehicle was brought into existence by Merrill Lynch & Co. and a posse of little-known partners.

read more...
http://online.wsj.com/article/SB119871820846351717.html?mod=hpp_us_pageone

[DemReadingDU]

34. NYT: What if it’s not just subprime?

12/28/07 Credit Crisis? Just Wait for a Replay

As 2007 ends, it seems that the financial world shakes every time a company reveals some new exposure to the disastrous world of subprime mortgage lending.

But just how different was subprime lending from other lending in the days of easy money that prevailed until this summer? The smug confidence that nothing could go wrong, and that credit quality did not matter, could be seen in the many other markets as well.

“The severity of the subprime debacle may be only a prologue to the main act, a tragedy on the grand stage in the corporate credit markets,” Ted Seides, the director of investments at Protégé Partners, a hedge fund of funds, wrote in Economics & Portfolio Strategy.

“Over the past decade, the exponential growth of credit derivatives has created unprecedented amounts of financial leverage on corporate credit,” he added. “Similar to the growth of subprime mortgages, the rapid rise of credit products required ideal economic conditions and disconnected the assessors of risk from those bearing it.”

more...
http://www.nytimes.com/2007/12/28/business/28norris.html?_r=1&oref=slogin

[TrogL]

35. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2007-11-23 Friday, November 23 1.01143 USD
2007-11-26 Monday, November 26 1.01245 USD
2007-11-27 Tuesday, November 27 1.00321 USD
2007-11-28 Wednesday, November 28 1.00939 USD
2007-11-29 Thursday, November 29 1.00725 USD
2007-11-30 Friday, November 30 0.9993 USD
2007-12-03 Monday, December 3 1 USD
2007-12-04 Tuesday, December 4 0.989511 USD
2007-12-05 Wednesday, December 5 0.987459 USD
2007-12-06 Thursday, December 6 0.987654 USD
2007-12-07 Friday, December 7 0.994926 USD
2007-12-10 Monday, December 10 0.989805 USD
2007-12-11 Tuesday, December 11 0.989413 USD
2007-12-12 Wednesday, December 12 0.989413 USD
2007-12-13 Thursday, December 13 0.978857 USD
2007-12-14 Friday, December 14 0.98668 USD
2007-12-17 Monday, December 17 0.992851 USD
2007-12-18 Tuesday, December 18 0.989609 USD
2007-12-19 Wednesday, December 19 0.994431 USD
2007-12-20 Thursday, December 20 1.0017 USD
2007-12-21 Friday, December 21 1.00573 USD
2007-12-24 Monday, December 24 1.01307 USD
2007-12-25 Tuesday, December 25 1.01307 USD
2007-12-26 Wednesday, December 26 1.01688 USD
2007-12-27 Thursday, December 27 1.01958 USD

Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     1.0211 1.0245 1.0211 1.0221 +0.0022 +0.22% 
CD.H08 Mar 2008 1.0218 1.0255 1.0218 1.0220 +0.0016 +0.16%  

Other combinations: (http://quotes.ino.com/exchanges/?c=currencies)

Market              Open    High     Low    Last   Change     Pct 
AUSTRALIAN $/CANADIAN $ (NYBOT:AS)
AS.H08 Mar 2008  0.88730 0.88730 0.88730 0.85685 +0.00415  +0.48% 
AUSTRALIAN $/US$ (NYBOT:AU)
AU.H08 Mar 2008          0.87425 0.87425 0.87425 +0.00505  +0.58%  
CANADIAN $/JAPANESE YEN (NYBOT:HY)
HY.H08 Mar 2008  111.020 111.020 111.020 114.990 -0.445    -0.39%  
EURO/AUSTRALIAN $ (NYBOT:RA)
RA.H08 Mar 2008   1.6825  1.6825 1 .6825  1.6825 +0.0086   +0.51%  
EURO/BRITISH POUND (NYBOT:GB)
GB.H08 Mar 2008   0.7356  0.7384  0.7356  0.7402 +0.0059   +0.80%   
EURO/CANADIAN $ (NYBOT:EP)
EP.H08 Mar 2008  1.43050 1.43050 1.42750 1.43410 +0.01125  +0.79%  
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.H08 Mar 2008   164.19  165.12  164.19  164.93 -0.26     -0.16%   
EURO/US$ (SMALL) (NYBOT:EO))
EO.H08 Mar 2008   1.4720  1.4720  1.4720  1.4720 +0.0089   +0.61%  

Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The March Canadian Dollar was higher overnight as it extends the rally off this month's low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends this week's rally, the 38% retracement level crossing at 102.43 is the next upside target. Closes below the 20-day moving average crossing at 99.83 would temper the near-term friendly outlook in the market. First resistance is the overnight high crossing at 102.32. Second resistance is the 38% retracement level of the November- December decline crossing at 102.43. First support is the 25% retracement level crossing at 100.74. Second support is the 10-day moving average crossing at 100.59.


Analysis

Most of the numbers above are really messed up. I don't know what's going on with the site but I suspect things are so messed up the bot's can't cope - the numbers are outside the scope of what they're programmed to deal with. Some of the market's problems are going to be related to Bhutto's assassination but I'm sure the dropping house prices aren't going to help any. I've got a friend who I'm sure is saying "oh crap" right now. He paid almost double what I paid for my similar house three years ago. I suspect housing prices will actually drop below 3-year-ago levels because they were already about 10% too high when I bought. It'll be decades before he can recoup his investment.

[DemReadingDU]

36. Dallas-Fed: The Rise and Fall of Subprime Mortgages

12/28/07
Looking for a succinct summation of the past several years in the housing and mortgage industry -- and an explanation of how we got into the mess we're in today? Then take a look at the latest Economic Letter out of the Federal Reserve Bank of Dallas. An article titled "The Rise and Fall of Subprime Mortgages" walks you through many of the highlights and lowlights of lending/housing activity, circa 2000-2007.

Mike Larson summarizes...
http://interestrateroundup.blogspot.com/2007/12/worthy-reading-from-dallas-fed.html


The Rise and Fall of Subprime Mortgages
by Danielle DiMartino and John V. Duca
November 2007

also lots of charts and graphs...
http://dallasfed.org/research/eclett/2007/el0711.html

[Roland99]

37. 1:00pm - Sickening home sales send markets lower

Dow 13,304.49 -55.12
Nasdaq 2,662.01 -14.78
S&P 500 1,471.75 -4.62
10 YR 4.05% -0.15
Oil $96.95 $0.33
Gold $842.00 $10.20

And look at gold go lately.


Here's the housing news:

http://www.marketwatch.com/news/story/us-stocks-fall-pressured-downbeat/story.aspx?guid=%7B7AC38D9E%2D0FED%2D490E%2D9B1B%2D7EC8C9B14342%7D

The new home sales report was "the turning point and pushed it lower," said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank. "The number was quite a bit weaker than expected."

Sales of new U.S. homes fell by 9% in November to a seasonally adjusted annual rate of 647,000, the Commerce Department reported Friday. On average, economists surveyed by MarketWatch were expecting new-home sales to drop to a seasonally adjusted annual rate of 710,000 in November. See Economic Report.

"It points to the fact that we're having a housing recession," Fitzpatrick said. "We're going to see these types of numbers on the housing side that are quite negative. when you look at the broader picture, we're still looking at an economy that's growing at a slower rate, but still growing."

[DemReadingDU]

40. Schiff: Crunch Time for American Consumers

12/27/07 Crunch Time for American Consumers by Peter Schiff

The subprime mortgage crisis is merely the tip of a very large iceberg. Beneath the surface lies not only a sea of tenuous loans to prime borrowers, but also an assortment of other liabilities backed by auto loans and credit card debit. Now that home equity extractions, "zero percent auto financing" and "zero interest" credit card rollovers are much harder to come by, Americans must do without the credit lifelines that have previously kept them afloat.
.
.
It was inevitable that all of this debt would eventually catch up to us. Americans are now so upside down on their auto loans that new car sales will collapse; and when many loans go sour lien holders will be stuck with substantial losses on repossessed vehicles. As the music finally stops for serial credit card balance transferors, the inability to renew low teaser rates means that fewer borrowers will be able to afford their payments.

As delinquencies continue to rise rating agencies will downgrade bonds backed by auto loans and credit card debt, inflicting subprime type losses on a much wider scale. As defaults increase and losses mount, credit will tighten like a noose around the neck of America's consumer based economy. Just as subprime homebuyers are being shut out of the housing market, soon Americans will find that their credit is no longer good at car dealerships or department stores. American consumers that want to buy will need to be prepared to pay cash.

more...
http://www.safehaven.com/article-9108.htm

[bain_sidhe]

44. finding historical stock prices?

Appologies for going off topic a bit, but I figured this might be the place that people who know the answer might see the question...

Long story, short version: My folks cashed in some stock bought through a company stock plan at my dad's place of employment--from 1957 on. Now they're trying to find the price that they bought the stock at, for reporting the capital gain or loss.

I've googled it and found a company that would provide stock prices after 1970... but that excludes almost half of the stock.

Does anybody know where, online, I can find prices for stocks going back to the 50s?

[RantinRavin]

45. not sure about online

But your library may have copies of the Wall Street Journal on microfiche from that time period.

[bain_sidhe]

46. Thank you! But...

...I'm trying to avoid the library microfiche, though. ::shudder:: My eyes! My eyes!

[DemReadingDU]

48. Try finance.yahoo.com

Here's the maximum years for GE:

This classic chart shows the price of GE stock from about 1962 to present
http://finance.yahoo.com/q/bc?s=GE&t=my

or try the beta version! When you move the cursor over the priceline, it gives you every stock price from 1962
http://finance.yahoo.com/charts#chart1:symbol=ge;range=my;charttype=line;crosshair=on;logscale=on;source=undefined
edit to add tinyurl, http://tinyurl.com/2u2rhf


P.S. I think many of the regulars are on vacation this week. Perhaps, after the new year, you could ask your question again.

[UpInArms]

49. closing with a yawn

Dow 13,365.87 6.26 (0.05%)
Nasdaq 2,674.46 2.33 (0.09%)
S&P 500 1,478.49 2.12 (0.14%)
10-Yr Bond 4.096% 0.103

NYSE Volume 2,429,223,000
Nasdaq Volume 1,371,720,875

4:25 pm : The stock market got out of the gate on a bullish note, underpinned by a belief that Thursday's sell-off in the wake of Benazir Bhutto's assassination was an overreaction. The rebound effort was short-lived, though, as it fell by the wayside in the wake of a much weaker than expected New Home Sales report for November.

With respect to the data, the Dept. of Commerce indicated new home sales declined 9.0% in November to an annualized rate of 647,000 units. That level marked a 12-year low and was well below the consensus estimate which had been pegged at 715,000. Treasuries rallied on the report with the 10-year note jumping a point and bringing its yield down to 4.07%.

The news weighed heavily on the homebuilding stocks, though, which comprised today's worst-performing industry group (-3.2%). The thrifts & mortgage group (-3.0%) followed close behind in an association trade that was tied to a belief that demand for mortgages will remain depressed along with the housing market.

The financial sector (-0.5%), in general, was a laggard and acted as a key restraint on the broader market which finished the day relatively flat.

Bond insurance companies Ambac Financial (ABK 25.12, -4.02) and MBIA (MBI 18.74, -3.53) were among the weakest performers as news that Berkshire Hathaway (BRK.A 141,100, +3300) has started a new bond insurance business for state and municipal bond issuers raised competitive concerns for investors.

The other laggard today was the consumer discretionary sector (-0.2%), which has been the financial sector's counterpart throughout the year. Once again, concerns about a slowdown in spending due to the weakness in the housing market contributed to the underperformance.

Strikingly, the remaining eight sectors ended the day higher, yet the modest nature of their gains, excluding energy (+1.0%), didn't help the broader market forge ahead to any great extent.

Volume, it should be noted, was on the light side with only 1.0 billion shares traded at the NYSE. That is a reflection of the holiday conditions and suggests there wasn't a lot of conviction behind Friday's action.

For the shortened week, the Dow, Nasdaq and S&P 500 slipped 0.6%, 0.7% and 0.4%, respectively. DJ30 +6.26 NASDAQ -2.33 SP500 +2.12 NASDAQ Dec/Adv/Vol 1676/1347/1.33 bln NYSE Dec/Adv/Vol 1572/1611/1.01 bln

3:30 pm : Stocks continue to trade near the unchanged mark with seven of the ten economic sectors in positive territory.

Monday marks the last trading day of 2007. It has been a volatile year marked by credit and subprime market turmoil. The National Association of Realtors reports November existing home sales on Monday. Briefing.com expects five million sales. DJ30 +3.09 NASDAQ -3.20 SP500 +1.71 NASDAQ Dec/Adv/Vol 1631/1372/1.04 bln NYSE Dec/Adv/Vol 1622/1558/731 mln