STOCK MARKET WATCH, Tuesday February 3

[ozymandius]

Source: du

STOCK MARKET WATCH, Tuesday February 3, 2009

Bush Administration Officials Under Indictment = 0
Financial Sector Officials Under Indictment = 0
Financial Sector Officials In Prison = 1

AT THE CLOSING BELL ON February 2, 2009

Dow... 7,936.83 -64.03 (-0.81%)
Nasdaq... 1,494.43 +18.01 (+1.22%)
S&P 500... 825.44 -0.44 (-0.05%)
Gold future... 907.20 -21.20 (-2.34%)
30-Year Bond 3.47% -0.13 (-3.69%)
10-Yr Bond... 2.72% -0.13 (-4.40%)

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

Market Conditions During Trading Hours

GOLD,EURO, YEN, Loonie and Silver

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Read more: du

[ozymandius]

1. Market WrapUp

Where are My Brother Commodities?
BY RYAN J. PUPLAVA, CMT

Gold has been a leader in the move of industrial commodity prices. By bottoming and topping first, gold anticipates moves in commodity prices. The difference in time from the lead to the lag varies, but the relationship has held true for quite some time. Most commodities are priced in dollars and gold is the most sensitive commodity to the dollar because of its monetary qualities and that may be why the relationship exists.

In 1993, Gold bottomed in September while copper bottomed in October.

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

---

Do the guys who write for Financial Sense talk to each other? Read each other's work? This was discussed last week through a discussion about the manipulation of the price of gold through the leasing of gold certificates.

[ozymandius]

2. Today's Reports

10:00 Pending Home Sales Dec
Briefing.com -0.5%
Consensus 0.0%
Prior -4.0%

14:00 Auto Sales Jan
Briefing.com NA
Consensus NA
Prior 3.6 mln

14:00 Truck Sales Jan
Briefing.com NA
Consensus NA
Prior 4.2 mln

http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

[UpInArms]

31. U.S. Dec. pending home sales up 6.3% - U.S. homeownership rate lowest since 2001

16. U.S. 4Q vacancy rate for owned homes rises to record 2.9%
10:05 AM ET, Feb 03, 2009

17. U.S. 4Q homeowner rate falls to 67.5%
10:05 AM ET, Feb 03, 2009

18. U.S. homeownership rate lowest since 2001
10:05 AM ET, Feb 03, 2009

19. U.S. Dec. pending home sales up 6.3%, realtors say
10:00 AM ET, Feb 03, 2009

Does anyone else see the contradictory information in these line items?

[UpInArms]

36. GM U.S. sales fall 48.9% to 128,198 units in January

05. GM U.S. sales fall 48.9% to 128,198 units in January
1:46 PM ET, Feb 03, 2009

[UpInArms]

55. Auto sales near 27-year low

http://news.yahoo.com/s/nm/20090203/bs_nm/us_autos

DETROIT (Reuters) – U.S. auto sales plunged to a 27-year low in January, a steeper-than-expected drop that took the slumping U.S. market below China's for the first time.

The two U.S. automakers struggling to restructure under a $17.4 billion government bailout led the market lower. Chrysler LLC posted a 55 percent sales plunge. Sales for General Motors Corp were down 49 percent.

The bleak results were one of the first indicators of the depth of the recession at the start of 2009, underscored by sharp declines by the industry's stronger players.

Toyota Motor Corp, the world's top automaker, was hit with a 34 percent sales decline. Sales were off almost 30 percent for Nissan Motor Co and 28 percent for Honda Motor Co.

"The truth is that the entire auto industry finds itself in the eye of this economic storm," Bob Carter, Toyota's U.S. manager for its flagship brand, told reporters.

Ford Motor Co, considered the best-positioned of the embattled U.S. automakers, posted a 40 percent drop that one analyst said would test its stated intent to make it through the downturn without an emergency infusion of government cash.

...more...

[ozymandius]

3. Oil holds above $40 after more grim economic news

SINGAPORE – Oil prices held above $40 a barrel Tuesday in Asia after being dragged down overnight by more grim U.S. economic news that pointed to a deepening recession in the world's largest economy.

....

Recent comments from OPEC leaders that the group may cut production soon have helped bolster prices. The Organization of Petroleum Exporting Countries has pledged to reduce output by 4.2 million barrels since September.

....

Crude inventories in the U.S. have soared as drivers cut back on spending. A report Tuesday by the American Petroleum Institute, the industry's trade association, is expected to show that oil stocks rose 2.9 million barrels last week, according to the average of estimates in a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.

....

Oil stocks have grown more than 20 million barrels in the last four weeks, evidence the U.S.'s worst recession since more than 25 years may be deepening as consumer demand dries up.

In other Nymex trading, gasoline futures rose 1.58 cents to $1.17 a gallon. Heating oil gained 1.76 cents to $1.36 a gallon while natural gas for February delivery jumped 3.0 cents to $4.59 per 1,000 cubic feet.

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

[Demeter]

19. do You Think Slashing Oil Prices Does More for Recovery Than Slashing Interest Rates?

Or is it truly beyond all hope, and only bankruptcy to clear the failures will do anything?

[AnneD]

34. Since slashing the interest rates ....

only help banks and banks are the way they are now...NO
The price of oil has a direct impact on consumers wallets but low prices discourage green energy R&D which will ultimatly have a greater impact on consumer. In the short run...YES

And this is as unbiased as someone from the energy capital of the USA can be

[AnneD]

37. Union says refinery contract talks are moving forward

Progress is being made in labor contract negotiations between energy companies and the union for about 30,000 refinery and chemical workers nationally, including 4,200 in the Houston area, a union spokeswoman said Monday.

Negotiators for the United Steelworkers Union are meeting in Austin with representatives of Shell Oil Co., which is the lead negotiator for the industry, on the third day of the extension of an old contract that expired early Sunday morning.

“We think we will be in a better position to know exactly where we’re at in the morning,” Lynne Baker, spokeswoman for the United Steelworkers Union, wrote in an e-mail alert Monday afternoon.

Negotiators could strike a new deal — which could happen any time — or the union could give notice that it could strike, Baker said.

http://www.chron.com/disp/story.mpl/business/6243369.html

Hold on to your pocket book. I hope the union gets an increase....it is dirty dangerous work and we have had more than our fair share of death and injury in refineries,

[ozymandius]

4. Macy's to cut 7,000 jobs, slash dividend

NEW YORK – Macy's Inc. announced Monday that it will eliminate 7,000 jobs, almost 4 percent of its work force, and cut capital spending, reduce its contributions to its employees' retirement funds and slash its dividend to preserve cash amid a severe pullback in consumer spending.

The Cincinnati-based department store chain also announced the national rollout of a plan to localize merchandising to specific markets, which it began in some regions last year.

The company, which also delivered downbeat earnings and sales forecasts for the year on Monday, said it plans to integrate all its geographic divisions into a single unit.

....

Macy's said the job cuts, which include some unfilled positions and 1,900 being eliminated in the restructuring, will come at corporate offices, stores and other locations. The company employs about 180,000 people.

Macy's announced last month — on the heels of the worst holiday shopping season in decades — that it would close 11 stores, affecting 960 employees. The company expects the additional actions announced Monday to lower its annual selling, general and administrative expenses about $400 million per year starting in 2010.

http://news.yahoo.com/s/ap/20090202/ap_on_bi_ge/macy_s_job_cuts

[DemReadingDU]

23. Wikipedia: History of Macy's

They bought a lot of stores all over the country

http://tinyurl.com/ytfvss

[ozymandius]

5. BP profits slide, eyes more job cuts

LONDON (AFP) – British oil major BP on Tuesday reported a 24-percent slide in fourth-quarter net profit but a leap of 39 percent for the whole of 2008 as oil prices swung from record highs to multi-year lows.

BP, which axed 3,000 jobs in 2008 as part of a cost-cutting programme, said it expected to exceed its original target of 5,000 reductions by the middle of 2009.

....

Net profit for all of 2008 jumped to 25.59 billion dollars (19.9 billion euros), while earnings in the fourth quarter fell on a 12-month comparison to 2.59 billion dollars, BP said in a statement.

http://news.yahoo.com/s/afp/20090203/bs_afp/britainenergyoilcompanyearningsbp_20090203100636

[Festivito]

6. Debt: 01/30/2009 10,632,005,246,736.97 (UP 5,707,826,606.12) (up 7B$.)

(Half of yesterday's rise of debt, not huge.)

= Held by the Public + Intragovernmental(FICA)
= 6,317,224,182,633.94 + 4,314,781,064,103.03
UP 7,363,512,286.86 + DOWN 1,655,685,680.74

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 306-Million person America.
If every American, man, woman and child puts in $3.27 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.81, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 14 seconds we net gain a another American, so at the end of the workday of this report, there should be 305,708,658 people in America.
http://www.census.gov/population/www/popclockus.html
Currently, each of these American's owe $34,778.23.
A family of three owes $104,334.68. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 22 reports in the last 30 to 31 days.
The average for the last 22 reports is 3,590,481,002.06.
The average for the last 30 days would be 2,633,019,401.51.
The average for the last 31 days would be 2,548,083,291.78.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 8 reports in 10 days of Obama's part of FY2009 averaging -0.71B$ per report, -0.40B$/day so far.
There were 83 reports in 122 days of FY2009 averaging 7.32B$ per report, 4.98B$/day.

PROJECTION:
There are 1,451 days remaining in this Obama 1st term.
By that time the debt could be between 12.6 and 17.9T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
01/30/2009 10,632,005,246,736.97 BHO (UP 5,128,197,823.89 so far since Obama took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 607,280,349,824.50 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
01/09/2009 -000,568,123,287.98 ---
01/12/2009 -001,098,982,842.59 -- Mon
01/13/2009 -000,038,769,243.84 ----
01/14/2009 -000,515,208,818.51 ---
01/15/2009 +020,470,437,698.93 ------------**********
01/16/2009 -000,579,761,204.80 ---
01/20/2009 -001,254,116,733.01 -- Tue
01/21/2009 -000,225,946,840.81 ---
01/22/2009 -010,383,446,466.83 -
01/23/2009 -000,119,553,441.75 ---
01/26/2009 -001,004,948,620.76 -- Mon
01/27/2009 +000,188,054,837.85 ------------********
01/28/2009 -000,240,130,414.24 ---
01/29/2009 +014,335,901,611.96 ------------**********
01/30/2009 +007,363,512,286.86 ------------*********

26,328,918,520.48 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $967,373,443,477.90 in last 134 days.
That's 967B$ in 134 days.
More than any year ever, except last year, and it's 95% of that highest year ever only in 134 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 134 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3718769&mesg_id=3718774

[Festivito]

50. Debt: 02/02/2009 10,667,963,268,393.28 (UP 35,958,021,656.31) (Jumps 46B$.)

(Last three days have had minimal borrowing, now it jumps. Good, Obama needs to get the stimulus started. I hope it works.)

= Held by the Public + Intragovernmental(FICA)
= 6,363,558,989,801.84 + 4,304,404,278,591.44
UP 46,334,807,167.90 + DOWN 10,376,785,511.59

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 306-Million person America.
If every American, man, woman and child puts in $3.27 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.81, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 14 seconds we net gain a another American, so at the end of the workday of this report, there should be 305,727,172 people in America.
http://www.census.gov/population/www/popclockus.html
Currently, each of these American's owe $34,893.74.
A family of three owes $104,681.21. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 21 reports in the last 30 to 31 days.
The average for the last 21 reports is 1,904,855,831.55.
The average for the last 30 days would be 1,333,399,082.09.
The average for the last 31 days would be 1,290,386,208.47.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 9 reports in 13 days of Obama's part of FY2009 averaging -0.37B$ per report, -0.23B$/day so far.
There were 84 reports in 125 days of FY2009 averaging 7.66B$ per report, 5.15B$/day.

PROJECTION:
There are 1,448 days remaining in this Obama 1st term.
By that time the debt could be between 12.5 and 18.1T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
02/02/2009 10,667,963,268,393.28 BHO (UP 41,086,219,480.20 so far since Obama took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 643,238,371,480.80 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
01/12/2009 -001,098,982,842.59 -- Mon
01/13/2009 -000,038,769,243.84 ----
01/14/2009 -000,515,208,818.51 ---
01/15/2009 +020,470,437,698.93 ------------**********
01/16/2009 -000,579,761,204.80 ---
01/20/2009 -001,254,116,733.01 -- Tue
01/21/2009 -000,225,946,840.81 ---
01/22/2009 -010,383,446,466.83 -
01/23/2009 -000,119,553,441.75 ---
01/26/2009 -001,004,948,620.76 -- Mon
01/27/2009 +000,188,054,837.85 ------------********
01/28/2009 -000,240,130,414.24 ---
01/29/2009 +014,335,901,611.96 ------------**********
01/30/2009 +007,363,512,286.86 ------------*********
02/02/2009 +046,334,807,167.90 ------------********** Mon

73,231,848,976.36 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $1,003,331,465,134.21 in last 137 days.
That's 1,003B$ in 137 days.
More than any year ever, except last year, and it's 99% of that highest year ever only in 137 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 137 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3720414&mesg_id=3720425

[DemReadingDU]

58. up over a trillion again

It will be interesting to watch the debt during Obama's presidency.

[ozymandius]

7. Big Risks for U.S. in Trying to Value Bad Bank Assets

As the Obama administration prepares its strategy to rescue the nation’s banks by buying or guaranteeing troubled assets on their books, it confronts one central problem: How should they be valued?

Not just billions, but hundreds of billions of taxpayer dollars are at stake.

The Treasury secretary, Timothy F. Geithner, is expected to announce details of the new plan within weeks. Administration and Congressional officials say it will give the government flexibility to buy some bad assets and guarantee others in an effort to have a broad impact but still tailor the aid for different institutions.

But getting this right will not be easy. The wild variations on the value of many bad bank assets can be seen by looking at one mortgage-backed bond recently analyzed by a division of Standard & Poor’s, the credit rating agency.

The financial institution that owns the bond calculates the value at 97 cents on the dollar, or a mere 3 percent loss. But S.& P. estimates it is worth 87 cents, based on the current loan-default rate, and could be worth 53 cents under a bleaker situation that contemplates a doubling of defaults. But even that might be optimistic, because the bond traded recently for just 38 cents on the dollar, reflecting the even gloomier outlook of investors.

http://www.nytimes.com/2009/02/02/business/economy/02value.html?_r=1&em

---

Getting anything right about a "Bad Bank" will be greater than "not easy" because it is impossible. When you place a price on a pile of shit, betting that this mountain of dung will continue to maintain its value and revenue stream based on regular monthly payments, but do nothing to secure its value by helping the customer, then its value will certainly fall.

This Bad Bank will only help the banks. The caveat that Geithner plans to insert, that banks will unfreeze lending streams, merely and vainly attempts to rebuild the system of unsustainable debt that has fueled unsustainable valuations of companies and a mythical cultural norm centered on insatiable consumption.

I am so sick of hearing what a great plan this is - and how it must be done carefully to succeed.

[Dr.Phool]

14. I'm geting really sick of this whole charade, also.

The rest of a very long, rambling rant has been deleted by me.

[DemReadingDU]

24. They're worthless

How hard was that!

edit:
What's hard is for Geithner and Obama finding the words to tell us that a bad bank is going to be good for us (while our tax money is again siphoned to the banksters)

[fedsron2us]

56. The simple truth

The whole problem with the 'bad bank' exercise is that, contrary to what so many idiotic media commentators claim, these toxic assets are all too easy to value. Everyone knows that they require massive write downs. If the US government forces the taxpayer to take on this rubbish at the inflated valuations that the banks require to stay solvent then the US Treasury market is likely to collapse. Basically the choice is the banks go bust or the country goes bust. Take your pick. I know which one I would choose.

nb: I notice the French have largely rejected this idea

http://www.iht.com/articles/2009/02/02/business/frecon.php

[Joe Chi Minh]

41. It looks like Obama's bipartisanship will destroy him in short order.

I hope not, but your post make sense even to an economic Noddy like me. Reading that he believes in the Free Market (as if) and capitalism, without major qualifications and caveats sound like a sop to the right. We can only hope he means them as the meaningless platitudes the right spin them as. But without the real underlying meaning.

[specimenfred1984]

46. It is an interesting question as to what Obama's motives are and actions will be

Clearly the banking system has failed, a result of deregulated capitalism and globalist greed. The only fix is to rid the system of its corruption and yet Obama seems intent on maintaining it. There is no future for the U.S. as a democracy if criminals win, we'll be bankrupt within a year.

[Joe Chi Minh]

57. I saw a post early stating that bankers or Republican politicians complained

about a requirement in a bail-out bill for accountability!!!

"We don't want regulation. On the other hand, we don't want accountability. Why can't we just continue as outlaws, Public Enemy no 1. Or should that be no 2, with the right-wing politicians as no 1?"

[ozymandius]

8. U.S. Property Owners Lost $3.3 Trillion in Home Value Last Year

Feb. 3 (Bloomberg) -- The U.S. housing market lost $3.3 trillion in value last year and almost one in six owners with mortgages owed more than their homes were worth as the economy went into recession, Zillow.com said.

The median estimated home price declined 11.6 percent in 2008 to $192,119 and homeowners lost $1.4 trillion in value in the fourth quarter alone, the Seattle-based real estate data service said in a report today.

....

The U.S. economy shrank the most in the fourth quarter since 1982, contracting at a 3.8 percent annual pace, the Commerce Department said on Jan. 30. Record foreclosures have pushed down prices as unemployment rose. More than 2.3 million properties got a default or auction notice or were seized by lenders last year, according to RealtyTrac Inc., a seller of data on defaults.

....

The number of homeowners with negative equity, or those who owed more on their homes than the property was worth, rose to 17.6 percent from 14.3 percent in the third quarter, Zillow said. The company began its quarterly reports in 2006.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aE29HSrxA4rI&refer=home

[ozymandius]

9. Credit Suisse Said to Cut Investment Bankers’ Bonuses by 55%

Feb. 3 (Bloomberg) -- Credit Suisse Group AG, Switzerland’s second-largest bank, plans to cut bonuses for investment bankers by about 55 percent following $13.6 billion of credit writedowns, two people familiar with the situation said.

Credit Suisse, along with New York-based Morgan Stanley and UBS AG, has already added so-called clawback provisions that allow the bank to recoup part of the payment in later years if an employee leaves or is found to have behaved in ways that hurt the company. Marc Dosch, a spokesman for the Zurich-based bank, declined to comment. The investment bank employed about 21,300 people at the end of September.

UBS, Deutsche Bank AG and other banks are slashing bonuses after the industry racked up more than $1 trillion of losses and writedowns on credit-related assets. Deutsche Bank, Germany’s biggest lender, will cut its bonus pool by about 60 percent after reporting a record loss, a person with knowledge of the situation said yesterday. The industry is under political pressure to curb pay as governments consider plans to remove toxic assets that have clogged lenders’ balance sheets.

http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aCRcGK6pfx8c

---

55% less reward seems way too high if your brightest and best are responsible for losing billions of dollars.

[Dr.Phool]

15. !

:rofl: :rofl: :rofl: :rofl: :rofl: All the way to the bank.

[ozymandius]

10. "The Rise and Fall of the US Mortgage and Credit Markets"

....

Some of the charts I found noteworthy. My favorite Robert Shiler factoid is that housing prices, from 1890 onward (no typo) have increased at a real rate of 0.4%. The first chart shows how stupendous the recent runup was:

-see stunning chart-

http://www.nakedcapitalism.com/2009/02/rise-and-fall-of-us-mortgage-and-credit.html

[ozymandius]

11. The Thickly Twisted Thought Process That Moves Their World

Budget Surplus? Tax Cut! Budget Deficit? Tax Cut! High Energy Prices? Tax Cut! Deep Recession? More Tax Cuts!

I see a pattern. For some people, the answer to every question is...a tax cut! From WSJ on 29 January:

There's a serious debate in this country as to how best to end the recession. The average recession will last five to 11 months; the average recovery will last six years. Recessions will end on their own if they're left alone. What can make the recession worse is the wrong kind of government intervention.

...

Keynesian economists believe government spending on "shovel-ready" infrastructure projects -- schools, roads, bridges -- is the best way to stimulate our staggering economy. Supply-side economists make an equally persuasive case that tax cuts are the surest and quickest way to create permanent jobs and cause an economy to rebound. That happened under JFK, Ronald Reagan and George W. Bush. We know that when tax rates are cut in a recession, it brings an economy back.

The article is by Mr. Rush Limbaugh. Typically, I don't pay heed to this sort of writing, but I make an exception here since apparently a lot of the opponents of the stimulus plan as currently proposed are taking their lead from Mr. Limbaugh (FoxNews WaPo).

Econbrowser slices and dices for all to see

[tclambert]

13. There's an old saying, "To a man with a hammer, every problem looks like a nail."

The Republicans have a one note piano. No, wait! Two notes! Cut taxes, or . . . (wait for it) . . . Start a war!

[Joe Chi Minh]

43. Well spotted. "If I had a hammer..." Ah, I love the smell of Democratic napalm in the morning"

[Joe Chi Minh]

42. The new leader of the Republican Party. Shouldn't you call him, Senator Limbaugh?

[ozymandius]

12. FDIC seeks to Increase Treasury Borrowing Limit

from Calculated Risk

This should come as no surprise ...

From Reuters: FDIC seeks to triple Treasury Dept borrowing power

The Federal Deposit Insurance Corp is seeking to more than triple its credit line with the U.S. Treasury Department to $100 billion ... The FDIC and Congress are working to boost the agency's current $30 billion borrowing power ...

The move comes as the FDIC's deposit insurance fund has shrunk due to a significant uptick in bank failures over the past year. The insurance fund's value dropped 24 percent in the 2008 third quarter to $34.6 billion.
...
"They have no immediate need for it, but they just want to make sure they're not constrained in the decision by a lack of the insurance fund," (U.S. Rep. Barney Frank, chairman of the House Financial Services Committee) told reporters

Looks like a lot more banks are going belly-up...

[DemReadingDU]

22. or maybe just 1 big bank?

maybe Citigroup?

[UpInArms]

16. dollar watch

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

Last trade 85.823 Change -0.325 (-0.42%)

US Dollar Outlook Unfazed by Worst Economic Contraction Since 1982

http://www.dailyfx.com/story/currency/eur_fundamentals/US_Dollar_Outlook_Unfazed_by_1233364046431.html

News of the worst US economic contraction in 26 years was not enough to keep the dollar at bay, as the US currency posted gains against the euro and other major counterparts to end the week’s trade. A fresh record-high in US unemployment insurance claims, continued all-time lows in interest rates, and an absolutely dismal capital expenditures report had similarly little effect on the dollar. One has to subsequently wonder whether otherwise significant economic data will have any real influence on the dollar through the foreseeable future. Friday’s highly-anticipated GDP report showed that the economy contracted at a much slower pace than feared, but a closer look at the details showed that future prospects remain dim. Perhaps the most troubling detail came from the typically resilient American consumer. Nominal consumer spending fell at a dramatic 8.9 percent annualized pace through the fourth quarter—the worst result in the survey’s 51-year history and an ominous sign of what to expect through 2009.

Fundamental outlook for the US economy remains poor, and such bearish sentiment would normally be enough to send the dollar significantly lower against major counterparts. Yet it is clear that markets are currently not “normal” by any stretch of the imagination, and fear-driven capital flows seemingly dominate exchange rate movements. We will subsequently watch for cues from highly risk-sensitive equity markets and US Treasuries; the dollar’s correlation between the Euro/US Dollar and US S&P 500 remains near its highest levels on record. That being said, the upcoming week of US economic event risk is relatively unlikely to provide a boost for downtrodden US stocks.

End-of-week US Non Farm Payrolls data is expected to show that the domestic labor market lost yet another 500,000+ jobs through the month of January—further reminder of the financial crisis’ effects on real economic growth. It will be important to watch earlier-week economic data to gauge overall expectations for the infamous NFP’s report, however, as key ADP Employment Change and ISM Services reports are typically leading indicators for the volatile jobs report. Suffice to say, it will take a noteworthy surprise in either ADP or ISM data to force a substantive shift in expectations. Otherwise, it may be important to watch for surprises in earlier Personal Income and Spending data. Short-term outlook for the US economy remains bleak, but whether or not the US dollar responds in kind is another matter entirely.



...more...

A Rebound in Housing Would Support A Bullish Dollar Technical Outlook

http://www.dailyfx.com/story/special_report/special_reports/A_Rebound_in_Housing_Would_1233638146221.html



The U.S. pending home sales report is expected to show a flat reading for December which will be welcome news for the , markets after the gauge posted three consecutive months of plus 4% declines. Although this indicator doesn’t typically garner a significant amount of attention, but deserves more focus after the improvement from 4.45 million to 4.74 million existing home sales for the same period. The housing market has been the albatross or the economy and any signs that it may be bottoming could spark a jump in risk appetite and short-term dollar weakness. The drop in new home sales to 337,000 from 388,000 is a concern but may be attributed to the record low in housing starts. The lack of new construction will add to the shrinking inventory levels which fell form an 11 month supply to nine months in January. On a risk basis the improved numbers would conflict with the bearish ERU/USD technical outlook. However, a positive release could spark a bullish dollar reaction if price action trades on fundamentals. Given the dollar’s strong correlation to risk a short dollar position may be warranted on an improvement in housing.

...more...

[UpInArms]

17. Blaming the mess on the Victim: Consumer spending falls again, drags down economy

http://news.yahoo.com/s/ap/20090202/ap_on_bi_ge/economy

WASHINGTON – Consumers slashed spending for an unprecedented sixth straight month in December, feeding the already painful recession as millions of households opted to save rather than buy.

The drop in consumer spending, the economy's key driver, means little help is in sight for struggling retailers, homebuilders and automakers.

The fallout spread Monday when Macy's Inc. announced it would cut 7,000 jobs, almost 4 percent of its work force, and take other belt-tightening measures to cope with the drop in sales.

"It is going to be hard to get the economy going again," said Nigel Gault, chief U.S. economist for IHS Global Insight of Lexington, Mass.

"We are very much reliant on whatever help the government can provide through the stimulus package and through the efforts of the Federal Reserve and the Treasury Department to help the financial system."

Personal consumption spending dropped 1 percent in December, a sixth consecutive decline that represented the longest stretch of weakness in a half-century of record keeping. Spending had declined 0.8 percent in November, even worse than first reported, the Commerce Department reported.

Separately, the Fed reported that banks were making it harder for borrowers to obtain all sorts of loans over the last three months despite the government's $700 billion bailout program. Nearly 60 percent of banks responding to the Fed's new survey said they had tightened lending standards on credit cards and other types of consumer loans.

...more...

[Ghost Dog]

18. ECB to pause on interest rates as gloom deepens

FRANKFURT, Feb 3 (Reuters) - The European Central Bank has made it very clear it will pause with cuts in interest rates on Thursday, focussing financial markets on signals of how low the bank can go and the likely scale of a cut they now expect in March.

ECB President Jean-Claude Trichet has said the next important policy meeting for the rate-setting council is not till next month, prompting analysts to virtually abandon hopes of a cut this week despite an ever gloomier economic backdrop.

Trichet and others have underlined the dangers of cutting rates to zero and, as recession engulfs much of the euro zone, economists say the bank will also need to explain clearly that it is not behind the curve.

"If they actually decided to cut rates immediately, that would be interpreted as a sign of emergency," said Bank of America economist Gilles Moec.

"It would indicate they are really scared and that is probably not the message they want to send right now. I would expect them to indicate even more clearly that we should expect something in March, and expect something quite significant." All but 3 analysts in a Reuters poll of 85 economists expected the ECB to keep base borrowing costs at 2 percent on Feb. 5 after a 50 basis point cut at the Jan. 15 meeting.

But the same majority expected the bank to cut its headline rate in March, with most backing it to go to a record-low of 1.5 percent, before easing credit costs further to 1 percent by the end of June, where they would remain well into next year.

...

And with little room to cut rates, analysts are starting to look what else central banks have in store, especially whether ECB would start to directly buy corporate debt.

"The real debate inside the ECB is not really about the interest rates, the real debate is whether the ECB will have to go to non-conventional measures," Natixis Chief Economist Patrick Artus said.

/... http://www.reuters.com/article/marketsNews/idINL276056420090203?rpc=44&sp=true

[Ghost Dog]

20. Europe's economic woes deepen

BERLIN/TOKYO (Reuters) – Europe's economic woes deepened on Tuesday, with Spanish unemployment posting a record rise and German retail sales dipping ahead of votes in the U.S. Senate on President Barack Obama's $900 billion stimulus plan.

...

Spain, one of the hardest hit economies in the 16-nation euro zone, received more bad news on Tuesday as figures showed the number of registered jobless had surged by nearly 200,000 in January, the tenth straight rise and the biggest since records began in 1996.

The rise took the unemployment rate up to 13.9 percent, the highest level in the broader European Union. The total number of unemployed in Spain swelled to 3.33 million, just below the level in Germany, a country with nearly double the population.

"It's going to get much, much worse," said Jose Garcia Zarate from the 4cast consultancy, noting that unemployment was now spreading from Spain's battered construction sector to other parts of the economy.

News from Europe's biggest economy was also negative. Data from the Bundesbank showed a 0.7 percent drop in German retail sales in December, disappointing economists who had expected a Christmas-sales boost, and the country's HDE retail association forecast sales would fall in real terms in 2009.

"The economic crisis will hit our sector, but when, how hard, and for how long is uncertain," HDE Managing Director Stefan Genth told a news conference.

Further evidence of flagging European activity was evident in producer price data for the euro zone, which fell a steeper-than-expected 1.3 percent in December.

/... http://news.yahoo.com/s/nm/20090203/ts_nm/us_financial

[ozymandius]

21. Motorola loses $3.6B, suspends dividend, CFO exits

SCHAUMBURG, Ill. – Motorola says it lost $3.6 billion, or $1.57 per share, in the fourth quarter as it took massive non-cash charges for goodwill impairment and an increase in a deferred tax reserve.

Hammered by a decline in sales, the maker of telecommunications equipment also said it would suspend its dividend, and its chief financial officer Paul Liska is leaving.

http://news.yahoo.com/s/ap/20090203/ap_on_bi_ge/earns_motorola

[ozymandius]

25. Citigroup comes clean on TARP spending

NEW YORK (CNNMoney.com) -- Citigroup offered its first glimpse Tuesday into how it is spending the $45 billion in government bailout money that the ailing bank has received in recent months.

Faced with intense scrutiny from taxpayers and Capitol Hill about its spending habits in recent weeks, the New York City-based bank issued its first quarterly progress report on its spending of funds from the government's Troubled Asset Relief Program, or TARP.

Citigroup (C, Fortune 500) said it had approved $36.5 billion in loans and other commitments backed by TARP during the fourth quarter of 2008, which included making $1 billion in student loans and $2.5 billion in business and personal loans. The bank also said it expanded credit lines and opened new accounts for credit cardholders.

But the bulk of the spending was earmarked for the housing market. Citigroup said it spent $27.5 billion to that end during the last three months of 2008, much of which went to purchasing mortgages in the secondary market, including $10 billion in mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac. About $8.2 billion was earmarked for making mortgage loans to families and individuals with good credit histories.

http://money.cnn.com/2009/02/03/news/companies/citigroup_tarp/?postversion=2009020309

[Dr.Phool]

26. National City owner PNC to cut 5,800 jobs

PNC Financial Services Group Inc. today said it plans to cut 5,800 jobs from its 59,595-employee work force by 2011, following its purchase of National City Corp., which employs nearly 8,000 in Northeast Ohio. About 6,000 of those are in Cuyahoga County.

In a 9 a.m. conference call with analysts discussing the Pittsburgh bank's first loss since 2001, PNC suggested that at least 4,000 of the job cuts could come from National City. Chairman and Chief Executive Jim Rohr noted that National City in October, prior to the announcement of the sale, said it planned to cut 4,000 jobs. He said that figure is part of the 5,800. Rohr added that some of the cuts will come from attrition and open positions. He gave no further details of job cuts. Each employs about 30,000 people.

it's widely expected that Cleveland could see the loss of at least 2,000 jobs in functions that overlap with PNC. The branches are expected to remain largely intact.

The elimination of 5,800 jobs, or 9.7 percent of the work force, appears in line with Rohr's comments last fall when he said he expected to cut expenses 10 percent, or more than $1.2 billion a year, by eliminating redundancies.

As part of its end-of-the-year financial report, PNC said it lost $248 million, or 77 cents a share, in the fourth quarter, once it folded in mortgage losses from National City. That was down from a profit of $178 million a year ago and was the bank's first loss since 2001. For the year, the Pittsburgh bank posted a profit of $882 million, or $2.46 per share, compared with a profit of $1.47 billion, or $4.35 per share in 2007.

(more)

http://blog.cleveland.com/business/2009/02/pnc_to_cut_5800_jobs.html

----------------------------------------------------------------

Nobody could possibly have seen this coming.

[antigop]

27. Vanguard's Treasury Money Market funds closed to new accounts as yields tumble

From the Vanguard website....

https://personal.vanguard.com/us/home?fromPage=portal

Sorry if this has been previously posted. I haven't been on DU much lately.

[antigop]

28. For you, AnneD-- Big businesses that started during a recession

A week or two ago the SMW thread discussed media spin and how the media would try to paint a rosier picture than reality. I mentioned we should watch for a number of articles about how people were forced into a career change and how "happy" they are.

AnneD said to watch for articles about the number of businesses that were started during the depression and are still in business.

This is pretty close to her prediction..
http://www.economicpolicyjournal.com/2009/01/big-businesses-that-started-in.html

A recession is a period when the structure of the economy is shifting. Thus, it may be an interesting time to start up a business if the economy is, or will be, shifting in the direction of the new product or service a new business plans to provide.

Sarah Caron has put together a list of companies that started during a recession. The list includes (Comments by Caron):

Hyatt Corp. opened its first hotel’s doors at the Los Angeles International Airport during the Eisenhower recession (1957 to 1958).

Burger King Corp., with its flame-broiled burgers, is another recession startup. The company began in 1954 when James McLamore and David Edgerton opened a Burger King restaurant in Miami, Fla. During another recession in 1957, the company introduced its successful signature burger — the Whopper.

IHOP Corp. is another star from the Eisenhower recession. The first restaurant in the now national chain opened its doors July1958 in Toluca Lake, Calif.

[AnneD]

33. Who needs a crystal ball....

when you can channel Jimmy the Greek and know your history.

Thanks, antigop :hi:

For my next feat-I shall do the impossible......try to predict when the next Metro bus will arrive.

[Demeter]

35. Our Busses Can Be Tracked On Line--How Geeky Is that?

[AnneD]

38. We are not that advanced......

we were reluctant to part with our horses.

[antigop]

29. Sirota: Bailout cash subsidizing outsourcing (crosspost from Economy forum)

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x55609

[Joe Chi Minh]

45. Utter lunacy.

[AnneD]

30. Morning Marketeers......

:donut: and lurkers. Ozy, love the toon today. I think most folks looked like that ground hog when they opened their 401K's. Got everything out that I could-but the ones through my work-all I could do was put them in conservative funds.

The clinic is very busy these days with Flu, stomach flu, and all kinds of fevers of mysterious origins. And speaking of pestilence that plagues mankind....the Texas Legislature is in session now so I am trying to get our troops motivated for some heavy duty lobbing. We stand a good chance to get some things passed. Just dumping the last Speaker of the House has been a welcome change. This jerk, like Louie XVI, let the power go to his head, and suffered as similar a fate as one could today. He was too GOP even for the GOP's.

I have on burning question that I am sure other SWT junkies are asking.....WHEN THE HELL DID THE GOP BECOME THE PARTY OF FISCAL RESPONSIBILITY, and do they think we will really buy that? :eyes: And now that Obama has made them show their true 'bipartisan' colours. When will he stop trying to make nice with these folks and get down to the peoples business.

Happy hunting and watch out for the bears.

[DoBotherMe]

32. Back to the top SMW - kick n/t

[Viva_La_Revolution]

39. ditto. nt

[AnneD]

40. Moment of fame.......

You are not logged in...
Login / Sign-up
Schools ask parents to keep sick kids at home

Nurse Anne DeLay has seen it happen all too often at HISD’s Poe Elementary School.

Parents give children a dose of Tylenol in the morning, the children feel fine a short time later, and the parents send them to school.

“But the Tylenol wears off about lunch. The fevers return, and I have to call parents and tell them to get their kids,” said DeLay, president of the Houston Federation of Teachers’ nursing task force. “By the time they come, how many kids will (the sick children) have exposed to the illness?”

http://www.chron.com/disp/story.mpl/moms/6239712.html

All that and 50 cents won't buy me a cup of coffee.

[54anickel]

44. EW-O--WOO-HOO--- Oh, can I have your autograph please?!?!?!?

Congrats AnneD and right on about the exposure to sickness. Ah, but the cost of a Tylenol compared to taking a sick day from work to stay home with the kid?

[AnneD]

49. I understand the issue from both sides....

but kids need to stay home when they are sick and bosses need to be more compassionate.

If you give me a crayon, I'll give you my autograph.

[PassingFair]

51. And schools need to DROP their ridiculous attendance policies...

The policy in my district is PURE BULLSHIT.
Kids are allowed 4 DAYS without a doctor's
note in a 4-1/2 month period.

A kid can use that up with ONE flu bout,
and then I am forced to DRAG their sick
bodies out to the doctor (never mind that
I have to get the time off of work to do
so AND pay for the office visit) just so
the doctor can say that they have a VIRUS
and sent them home.

If you don't have the note, they take it
out on your child's GRADE, dropping it
one letter grade for each day missed.

GRrrrrrrrrr.

[AnneD]

64. At our school...

we deduct the dr's note absences. Then we look at the remainder of excused (parent sent a note) and unexcused. They can have up to 10 unexcused absences so most kids are ok. Actually, that is one unexcused absence a month and the kids here are in school only 180 days total. But if they have so many unexcused or are tardy-it can add up to a lot of lost educational time. When that happens they have a choice-the kids go to summer school or can be retained. We have to keep accurate records for court purposes. There is a direct relationship between time in class and grades.

Most schools bend over back wards for parents with chronically sick kids-but parents need to parent-schools were never intended to be the parents.

[54anickel]

52. Here's my favorite color, but you might have trouble getting it outta the box

[AnneD]

65. Kwel....

I have a bucket of big and a tub of tiny in the clinic. The bucket of big contains large sized every day objects and the tub of tiny has miniaturized objects. The kids are fascinated with them. The crayon would fit right in.

[Dr.Phool]

47. Where have I heard that last name before?

Were you married to an exterminator?

[AnneD]

48. To our everlasting shame......

yes we are cousins, once (but not enough)removed. It gets a lot of laughs in my DEM circles. My standard answer "Yes we are and we all have our crosses to bear in life" or "I was an honest person long before he was a crooked legislator". Only one time he really helped us, so I can say something good. Social Security was dragging their feet giving my young widowed sis and my toddler nephew their survivors checks (it was almost 8 months they had been dragging it out). Mom had come down to help my sis. "What is the point of having a big gun if you can't use it". One call to him and we had her first check (back dated to include all the time from her husbands death) in less than 5 working days. I would get in to some back areas when we were in DC, and yes, when I tell you the difference between GOP fund raisers, men, etc....I do have a wee bit of authority in this area.

So now that I have been outed and my cover blown-hope you don't judge me too harshly. Our family does have a long line of Honorable public service and contribution to culture, and humanity.

[54anickel]

53. Oh AnneD. I thought that was our little secret!!! I no longer feel special. :-(

[AnneD]

63. Don't worry 54anickle.......

You're still special to me :hug:

[Dr.Phool]

54. We still love ya.

And like they say, "You can pick your friends, but not your relatives".

:hug: :loveya: :hug:

[DemReadingDU]

59. Congrats, AnneD!

Truth be known, I would bet that every family has an oddball relative in one of its branches.

[ozymandius]

60. You wear fame very graciously.

Congratulations on your notoriety! :toast:

[Hugin]

62. Wow!

Y'all are famous!

:donut:

Here, it's on me! :D

[ozymandius]

61. Quittin' time.

Dow 8,078.36 Up 141.53 (1.78%)
Nasdaq 1,516.30 Up 21.87 (1.46%)
S&P 500 838.51 Up 13.07 (1.58%)
10-Yr Bond 2.842% Up 0.123
NYSE Volume 6,001,677,500
Nasdaq Volume 2,121,960,000

4:30 pm : Market participants had to wade through a heavy flow of earnings announcements this morning. None of the reports inspired an immediate change in sentiment, though, leaving stocks to trade in mixed fashion for much of the session. Still, the major indices were able to put together a broad-based advance and finish with strong gains.

Merck (MRK 30.24, +1.81) and Schering-Plough (SGP 18.91, +1.44) each announced this morning better-than-expected earnings results, driving pharmaceutical stocks 2.8% higher. Archer Daniels Midland (ADM 27.65, +0.15), Emerson Electric (EMR 33.60, +1.90), Automatic Data Processing (ADP 39.04, +2.40), and Tyco (TYC 24.27, +3.93) also beat earnings estimates. The reports seemed to help their stocks more than the broader market.

Investors also got their share of disappointments. UPS (UPS 45.00, +2.58), Dow Chemical (DOW 11.35, +0.30), Aflac (AFL 22.63, -0.40), SanDisk (SNDK 8.66, -2.62), Avon Products (AVP 21.00, +1.66), Motorola (MOT 4.04, -0.50), and PNC Financial (PNC 29.85, -2.33) all failed to meet analysts' earnings estimates.

With many big banks and financial institutions having already reported quarterly results, PNC's announcement gave investors a reminder that the financial sector remains strained. As such, investors await further clarity regarding government-led initiatives to help restore the financial system and, in turn, the broader economy. Some expect the government will create a "bad bank" to purchase distressed assets from banks to help protect against further losses. That would require the government to set a price for distressed assets, which could risk rewarding banks at taxpayers' expense, or drive further capital raises to offset write-downs if prices are too low.

The government may also be considering guarantees or loss sharing agreements, which would limit the toll of write-downs on banks' balance sheets. That could require banks to sell a stake to the government, which could further dilute shareholders. If the government takes a preferred stake, banks may be forced to issue special dividends that also drain their capital.

Investors remain mindful that any such plan will have its share of consequences. So it is doubtful that any plan will immediately drive the financial system to recovery. Still, investors anxiously await further detail, which is expected to be announced early next week.

In the meantime, Treasury released details announcing it invested approximately $1.15 billion in 42 banks as part of the Capital Purchase Program. The plan is aimed at helping banks meet lending needs and keeping credit flowing. Citigroup (C 3.46, -0.19) announced its own plans to increase lending. The financial supermarket will use roughly $36.5 billion of the TARP funds it has received for new loans.

Investors also continue to await another fiscal stimulus plan. Reports surfaced midafternoon indicating Republican Senators are crafting proposals to add to the package. One such feature is a temporary reduction in the corporate tax rate.

Automakers continue to struggle. Ford (F 1.96, +0.08) announced January sales declined approximately 40% year-over-year, while General Motors (GM 2.85, -0.04) reported a near 51% year-over-year drop in January sales. Toyota Motor (TM 65.59, +1.71) reported that January sales decreased more than 34% from the prior year.

Nine of the 10 S&P 500 sectors were able to register a gain as stocks closed a bit off their session highs. Financials (-2.5%) were the only sector to post a loss. The broader market's advance was bolstered by a late lift in trading volume. Trading volume had been light for much of the session, reflecting investors' apathy amid a lack of market-moving headlines. Nearly 1.4 billion shares traded hands on the NYSE this session, but that is still below the 50-day moving average.

Economic data was light this session. The National Association of Realtors reported that pending home sales increased 6.3% in December, exceeding the consensus estimate, which called for a flat reading. The hike in pending sales reflects the helpful impact of lower mortgage rates and prices. Tomorrow's economic calendar features the January Challenger Jobs Report and the January ADP Employment report. The January ISM Service Index is also due tomorrow morning.DJ30 +141.53 NASDAQ +21.87 NQ100 +1.7% R2K +0.7% SP400 +0.8% SP500 +13.07 NASDAQ Dec/Adv/Vol 1146/1524/2.09 bln NYSE Dec/Adv/Vol 1166/1841/1.35 bln