STOCK MARKET WATCH, Friday 26 August

[ozymandius]

Friday August 26, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 148 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 249 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 313 DAYS
DAYS SINCE ENRON COLLAPSE = 1370
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
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

AT THE CLOSING BELL ON August 24, 2005

Dow... 10,450.63 +15.76 (+0.15%)
Nasdaq... 2,134.37 +5.46 (+0.26%)
S&P 500... 1,212.39 +2.80 (+0.23%)
10-Yr Bond... 4.16% -0.02 (-0.45%)
Gold future... 443.10 +0.90 (+0.20%)

GOLD, EURO, YEN, Dollars and Loonie




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

[ozymandius]

1. WrapUp by Martin Goldberg

Will the Low Interest Rates Allow the US Consumer to Spin One More Time?

Over the last year of the range bound stock market, the pattern has been fairly regular. When interest rates head up, it has hurt consumer and housing stocks. When rates head down, consumer and housing stocks rally. To a lesser extent, the broader stock market is affected similarly. Now, with technical damage done to the US consumer and housing stocks (related to an increase in interest rates), and the economic data looking weak again, the important question is whether a bond market rally will, once again, serve to juice the stock market. While this is a trend that deserves the benefit of the doubt, IF a bond market rally does not incite a consumer and housing stock market rally, then this could be an important change in pattern.

The strong action in the bond market the last three weeks suggests that whatever forces are conspiring to keep interest rates low, are acting once again. While the private bankers at the fed are in charge of the short term interest rates, long rates are determined by the buyers of our long term debt. It appears that Asian countries are trying to grow their nation’s production-based economies by lending lots of money to the US in order to keep interest rates low and demand for their products high. The debt-based US economy is taking on this excessive debt to support rich spending habits. Eventually the misguided folks taking on all this debt will not be able to continue borrowing, but by that time, the Asian production-based economies will be built out and able to support a different group of customers. Asians buying US debt is spawning and supporting a housing bubble here in the US, but it is not their concern because they are primarily focused on growing their own economies.

-cut-

While it may be expected that a continuation of the bond market rally would keep these inter-market relationships intact, IF the relationship changes (e.g., a bond market rally does not support US housing and consumer spending), then the picture changes considerably. It would be at this time that US debt will be evaluated by Asians only on the basis of its investment value while not considering its stimulation effect on US consumers. With an ever increasing supply of debt, and a decrease in Asian demand, interest rates will have nowhere to go but up. This in turn, would likely have a devastating effect on the US consumer as well as the housing market and our historically over-valued and speculative stock market.

more...

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

[ozymandius]

2. Stocks to Open Up Before Economic Data

NEW YORK - U.S. stock futures are trading higher Friday ahead of final August consumer sentiment data from the University of Michigan, seen down for the month in reaction to higher oil prices.

Dow Jones futures were recently up 12 points, while Nasdaq futures were ahead 3 points and S&P futures were up 0.9 point.

-cut-

Economists look for the University of Michigan consumer sentiment index to slip to a reading of 92.8 for August from the final July reading of 96.5, showing a minimal improvement from the preliminary August reading of 92.7. The University of Michigan is due to release its final reading for August consumer sentiment at 9:45 a.m. EDT.

Federal Reserve Chairman Alan Greenspan speaks at the Kansas City Fed's Economic Symposium in Jackson Hole, Wyo. at 10:20 a.m. EDT.

more

[ozymandius]

3. Crude Futures Slip, but Stay Above $67

VIENNA, Austria - Oil prices slipped on Friday, a day after a record-setting session, as fears of short-term supply disruptions eased when it appeared Hurricane Katrina would spare petroleum facilities in the Gulf of Mexico.

Still, analysts noted that the main thrust of the hurricane season was still ahead. That and concerns about refinery capacities ahead of the Northern Hemisphere winter supported bullish fundamentals, they said.

Light, sweet crude for October delivery fell 47 cents to $67.02 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. The contract settled Thursday at a record $67.49, the highest closing price since oil began trading on Nymex in 1983, after touching $68 earlier in the day.

more

[UpInArms]

51. Crude at $67.57 bbl

10:05am 08/26/05 OCT CRUDE CLIMBS 8C AT $67.57/BRL IN EARLY NY TRADE

10:05am 08/26/05 SEPT NATGAS TRADES AT $9.845/MLN BTUS, UP 7.5C

[UpInArms]

72. Oil futures hit fresh record near $68

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38590.5349211921-840902666&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Crude futures reached a fresh intraday record of $67.95 a barrel in New York and was last at $67.80, up 31 cents. Traders were reluctant to sell ahead of the weekend, worried that Hurricane Katrina may make an unexpected move that will jeopardize production facilities in the Gulf of Mexico. At the same time, storm concerns helped lift September natural gas by 20 cents to $9.97 per million British thermal units. And a refinery problem in California pulled September unleaded gasoline prices to $1.976 a gallon, up 1.23 cents.

[ozymandius]

4. Official reserves (who owns U.S. fiat currency)

http://www.economist.com/markets/displayStory.cfm?story_id=4319083



There's a very short paragraph that explains "why" the U.S. does not need to own as many of its fiat dollars as other countries. :eyes:

Edit for link.

[54anickel]

12. Bwahahaha - I see that reason slip-sliding away in the relatively

near future. Of course, there will probably be a war in an attempt to defend it - ain't that how it's gone down in the past?

[RawMaterials]

22. The dollar's position as the world's main reserve currency means

that America does not need to hold reserves as big as other countries'


and that is the reason we are in iraq and are going to iran :nuke: girls and boys. because they wanted to sell oil in euros ending the dollar as the main reserve currency. :tinfoilhat:

[54anickel]

45. No tinfoil hat required for that one...Who's on Beelzebush's enemy list?

Compare that with who's on the Euro (or some sort of basket) for oil?

It was already being built into the pricing of oil - remember when OPEC was saying the price needed to go up due to the decline in the buck?

[ozymandius]

5. Oil and the global economy: Counting the cost

Can the world economy continue to shrug off high oil prices?

HAD you been told in late 2001—not long after that September's terrorist attacks, and when stockmarkets had been tumbling for 18 months or so—that the price of crude oil would more than triple within four years, you might well have predicted global economic meltdown. The price of a barrel of West Texas Intermediate has risen from $18 in November 2001 to record levels: it hit yet another new high, above $67, this week. This is similar in scale to the price jumps of 1973-74, 1978-80 and 1989-90, all of which were followed by worldwide recession and rising inflation. Today, though, global GDP growth is well above trend, while inflation remains low. Why has the world economy fared so comfortably this time?

There are several popular explanations. The simplest is that, although the latest price increase is about as big as those in previous episodes, it has been more gradual. In 1979 the price of oil doubled in six months; this time it took 18 months, giving households and firms more time to adjust and so doing less damage to their confidence and finances and hence to economic activity. This is plausible, but unlikely to be the whole story: no matter what the pace of the increase, it pains Americans to pay $3-plus for a gallon of petrol.

-cut-

The inflation novelty

The relatively gradual rise in prices, the lower oil-intensity of many economies and the role of strong demand rather than a fall in supply all go some way to explaining why this time the effects of higher oil prices on world GDP have so far been muted. However, perhaps the biggest difference between today's high oil prices and earlier bouts lies in the response of inflation and interest rates. In the past, rising oil prices pushed inflation up sharply; sooner or later, central banks raised interest rates. And this time? Figures out last week showed that the headline rate of inflation in America leapt to 3.2% in July from 2.5% in June, largely because of higher oil prices, yet the core rate of inflation only edged up from 2% to 2.1%. Indeed, inflation worldwide is unusually low, thanks partly to global competitive pressures from China and elsewhere. Subdued inflation, and the expectation that it will stay that way, have allowed central banks to hold interest rates lower than in the past.

As a result of low interest rates, America and some other economies have enjoyed a boom in house prices, accompanied by a surge in household borrowing and a falling saving rate. Higher oil prices have acted like a tax on consumers, leaving them less money to spend on other goods. But in America this has been fully offset by borrowing against soaring home prices. This explains why higher oil prices appear to have depressed domestic demand by more in Europe than in America: in most euro-area economies there has been little or no cushion from increased borrowing against property.

more...

http://www.economist.com/finance/displaystory.cfm?story_id=4321834

[UpInArms]

11. Bets are on for $100 a barrel oil

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2005-08-25T151820Z_01_L25717803_RTRIDST_0_PICKS-ENERGY-HUNDRED-DC.XML

LONDON (Reuters) - As oil strides from one record high to another, predictions of $100 a barrel crude no longer look far-fetched.

After prices shot to a record $68 a barrel on Thursday, analysts are increasingly inclined to accept that the stretched world market is in the throes of a "super spike."

"There are no constraints on short-term prices. Speculators are driving oil and there's nothing to stop it from going up," said Geoff Pyne, energy consultant for Standard Bank.

"Supply and demand will be important factors in the long run, but they are not in the market's eye at the moment."

<snip>

Financial betting firms say once the price pierces $70 a barrel, they will open their books to wagers on $100 oil. With no loss in momentum to a rally that has doubled crude prices, the betting looks about to begin.

"We haven't made a price yet, but we'll certainly think about it when the price breaks $70," said a London bookmaker. "Thanks for the tip."

...more...

[54anickel]

14. Nothing they can do about it? I take it that there aren't any regulations

regarding margins in the oil markets then that could be raised? :shrug:

[UpInArms]

17. It's a "FREE" market .................... eom..........

[54anickel]

43. As in born free? It ain't as in free beer!!! Funny word "Free". It

usually has such a positive connotation to it. :eyes:

Free-markets as in self-regulated markets. What was it that Friedman said about the corporation again.....

[54anickel]

24. Even in Summer, Americans Dread Winter Heating Bills

http://www.nytimes.com/2005/08/26/business/26energy.html?adxnnl=1&adxnnlx=1125061294-K7/lQVtnHnxGVr+CGPEajw

But economists say nothing to worry about - it's not all that bad:eyes:

With energy costs rising substantially for a second year, and reaching another record on oil markets yesterday, how consumers and businesses respond this winter - whether they curb their energy consumption or not, whether they keep spending on other goods or not - will be critical as higher energy prices slowly ripple through the $11.7 trillion American economy.

"This is going to hit on every side," said Davis Bookhart, a researcher at the Consumer Energy Council of America. "On just about everything that is energy-intensive, you're going to feel higher costs. People are more concerned about their bills, and realize that this winter will be more expensive."

Economists generally seem convinced that the higher energy prices will not derail the economy. But they may cause it to wobble a bit: Americans will spend $600 billion this year on oil purchases - everything from gasoline and diesel to jet fuel and heating oil. In two years, the national oil bill has jumped by $210 billion, or 54 percent, according to Larry Goldstein, the president of the Petroleum Industry Research Foundation. In addition, the nation spent $120 billion on natural gas in 2004, according to the American Gas Association. That is expected to increase to about $167 billion this year.

"High energy prices act like a consumption tax and consumption taxes eventually hurt the economy," Mr. Goldstein said.

That extra burden has already shaved three-quarters of a percentage point off American growth, he estimated, but has not put much of a dent in the expanding economy.

more...

[54anickel]

32. Hawaii caps gas prices; is $100 oil next?

http://moneycentral.msn.com/content/CNBCTV/Articles/Dispatches/P127509.asp

Hawaii became the first state in the nation to take government action against rising gasoline prices today, placing a cap on wholesale gas prices starting Sept. 1 to prevent what legislators see as price gouging on the islands.

But if crude prices climb as high $100 per barrel -- as one expert, who made a spot-on prediction last year, says -- more states could try to find ways to keep energy prices in check. Michigan, for example, has a proposal on the table that would suspend the state gas tax when prices rise above $2.30. Oregon, California, New York and Connecticut all have debated the merits of regulating the price of gas.

The American Petroleum Institute, an oil industry trade association, says regulating prices would bring disaster.

"That would be the stupidest thing on Earth we could do. It would throw us back into the 1970s," John Felmy, the institute's chief economist, told Knight-Ridder Newspapers. Price controls in force from 1973 to 1981 were blamed for that decade's volatility and shortages.

snip>

Not surprisingly, the oil industry isn't happy with caps, saying Hawaii's gas prices are due to high taxes, CNBC's Rob Reynolds reported.

"I'm very concerned about this legislation," John Llemy of the American Petroleum Institute, told CNBC. "It could have strong negative effects for Hawaii and it could have limited positive benefits for consumers because, while wholesale prices are capped, retail prices are not."

more...

[UpInArms]

36. Life is cheap for $52 in gas

a 25 year old man decides that $52 is worth killing for

http://www.al.com/news/huntsvilletimes/index.ssf?/base/news/1125047897228320.xml&coll=1

(25 year old) Ider man held in gas station owner's death

FORT PAYNE - The man police say ran over and killed a Fort Payne gas station owner as he tried to stop the driver from taking off without paying for $52 in gas last week turned himself in to police Thursday morning.

Police Chief David Walker said Alvin Dwight Benefield, 25, of Ider was charged with manslaughter in the death of Husain Caddi, 54, owner and operator of the Fort Payne Texaco at 2645 Greenhill Blvd. near Interstate 59.

On Aug. 19, Walker said, witnesses saw the victim grab the side of the vehicle and get dragged across the parking lot. He said Caddi fell from the vehicle and was run over just after it left the parking lot and headed north on U.S. 11. Caddi was taken to Baptist Medical Center-DeKalb where he died from his injuries.

Walker said police had checked hundreds of vehicle registration numbers on a gold, brown or tan sports utility vehicle that witnesses said might be a Jeep Liberty or Ford Explorer. They were preparing to check hundreds more when Benefield turned himself in, Walker said.

The vehicle Benefield was driving when he allegedly ran over Caddi was a 2000 Jeep Grand Cherokee, he said.

...more...

[54anickel]

62. Globalization's First Oil Shock (Roach)

http://www.morganstanley.com/GEFdata/digests/20050826-fri.html#anchor0

This is the first oil shock in the modern era of globalization. That means its impacts are likely to be compounded by the cross-border linkages that shape the global trade cycle. In today’s US-centric world, that spells unusual vulnerability. If higher oil prices take a toll on the over-extended American consumer, repercussions in the rest of an externally-dependent world will be all the more acute. That puts Asia, the world’s most rapidly growing region, right in the cross-hairs of the energy shock of 2005.

Globalization complicates the transmission of shocks around the world. That’s especially the case with respect to the current energy shock. Countries will be hit both by the direct effects of rising energy costs, as well as by the indirect impacts of energy-related pressures on their major trading partners. To the extent that the American consumer remains the principal engine of growth on the demand side of the global economy, those nations that rely on exports to the US as major sources of growth will be hyper-sensitive to any energy-related cutbacks in US consumption.

In my view, the American consumer is very much at risk in the current oil shock (see Beneath the Surface, 16 August 2005). First, US households have drawn their saving rates down to “zero.” By contrast, in earlier oil shocks, US consumers had a cushion of saving they could rely on in order to maintain existing lifestyles -- saving rates that averaged 9.5% in the two shocks of the 1970s and 7% in the shock just prior to the Gulf War of early 1991. Today, the only saving backstop is embedded in an increasingly precarious housing bubble.

Second, just prior to the two oil price spikes of the 1970s, discretionary spending of US households had gone to excess -- setting the stage for America’s most severe consumer-led recessions. A similar overhang is evident today: The GDP share of consumer durables and residential construction has averaged 14.3% of GDP over the past year. That’s virtually identical to excesses hit just before the two energy-shock-induced consumption collapses of the 1970s.

Third, mounting pressure from higher energy prices is already more acute than in the past. While US consumers have reduced the portion of their budgets spent on energy-related items to 5.7% of total consumption -- down from readings hit in earlier oil shocks -- these outlays have already increased by 1.6 percentage points of GDP from the early 2002 low. By contrast, this same share had increased by only about 1 percentage point in comparable periods running up to the three previous energy shocks.

more...

[mike923]

74. I'm curious...

With all this talk about $100 per barrel oil, does it make it more likely that investors would then not be alarmed with $70/barrel prices?

Investor A says to himself, "geez, the guy on TV says oil might go up another $30 per barrel, i could make a fortune buying futures. So he locks in. This would seem to artificially drive up the price, just like the housing market.

And as well all are prediciting a housing bubble to suddenly pop in the coming months, what is there that makes this oil bubble not likely to pop? I would think real estate is a much more finite resource than oil.

That's just my amateur opinion. Please feel free to gamble on oil futures if you really think we could hit $100 per barrel. I think we'll hit $45 quicker than $100.

[54anickel]

87. I've seen that $45/bbl prediction floating around. Personally I doubt

it will happen short of a global recession. That would be the one thing that would make a large enough dent in demand. A US centric recession could bring on a global one, since we seem to be the world's consumers - but other economies are picking up in that regard. Their economies are recovering fairly well compared to the US.

There may be a drop in price but I doubt it would come close to $30/bbl. Remember oil is also priced in US$ which is loosing it's purchasing power - it will loose even more if there's a recession. OPEC will again want more bucks - or switch to euros or a basket.

Either way - we're screwed. :hi:

[UpInArms]

6. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 87.67 Change +0.03 (+0.03%)

Dollar Discounts Claims Data Due to Nominal Impact on Fed Decision

http://www.dailyfx.com/index.php?option=com_content&task=view&id=3040&Itemid=39

The US dollar continued to lose ground against the euro despite some encouraging labor market data. Jobless claims fell to 315,000 from 319,000 last week and has remained below the 320,000 mark for the past six weeks - which is consistent with triple digit non-farm payroll gains next Friday. The help wanted index also edged higher from 38 to 39. Unfortunately this failed to prevent the dollar from sliding for the fourth straight day. The market’s focus was once again directed on oil, with the storm brewing down in the Gulf causing prices to hit yet another all-time high. The more immediate uncertainty in the months ahead lie in how much more oil will rise and its impact on consumer spending. CNN is already talking about how consumers are shifting purchases to cheaper brands in attempts to find ways to alleviate the higher costs at the pump. For the time being, the market already knows that so far, the economy is still holding up thanks to the boom in the housing market. Therefore, it has probably discounted a strong labor market report, especially since the result will not sway the Federal Reserve’s decision to raise interest rates once again on September 9th. Meanwhile Princeton economist Paul Krugman joined the ranks of economists who are calling for a housing market collapse. Krugman was quoted as saying, "I'll give you a forecast which might very well be wrong, but I think it will burst in the spring of next year." He also added that he would be surprised if the market did not burst over the next 3 years. As we have always been saying, first goes the housing market and then goes consumer spending. Oil and housing are the big themes affecting the dollar right now and we expect them to remain the predominant themes throughout the second half of the year.

...more...

Forex: Dollar Markets Hit One Week Lows

http://www.dailyfx.com/index.php?option=com_content&task=view&id=3030&Itemid=62

The dollar weakened to one-week lows against both the euro and pound during the overnight hours prior to bearish Euro data that brought the pairs back down a bit. This was stalled after an uneventful release of jobless claims data. By midday the dollar was trading at $1.8026 and $1.2302 against the pound and euro, respectively.

The morning’s initial jobless claims report showed a decline to 315,000 claimants from an upwardly revised 319,000 seen a week ago. This figure was right on target with the median economist estimate and is supportive of a strong nonfarm payrolls figure going into next Friday’s release. The Conference Board’s Help-Wanted index also indicated that more labor market improvements are on the way. The national index rose for the second month in a row to 39 from 38 showing a slightly friendlier job market. However, there is a sense of wariness surrounding these reports. With energy costs so high, it seems inevitable that firms must shed employees at some point and the market seems to be on edge waiting for these job cuts to show up.

Despite oil hitting $68 a barrel today, equities rallied marginally on acquisitions news. By midday, the Dow Jones Industrial Average was up 11.86, or 0.11%, to 10,446.73. The NASDAQ added 5.56, or 0.26% to 2,134.47 as the S&P 500 was slightly higher by 1.96 points, or 0.16%, to 1,211.55.

...more...

Have a Great Day Marketeers!

[UpInArms]

16. Dlr wobbles, shares capped as crunch month looms (2nd yuan reval?)

http://today.reuters.com/investing/financeArticle.aspx?type=economicNews&storyID=2005-08-26T103955Z_01_L26539792_RTRIDST_0_MARKETS-GLOBAL-WRAPUP-3.XML

LONDON, Aug 26 (Reuters) - European share gains were capped on Friday as a crunch month of economic data and political events loomed, while the dollar briefly dipped on talk of a second Chinese revaluation that was later denied.

Bunds were yanked down by data showing money supply growth in the euro zone rose by more than expected in July, but stayed close to seven-week highs after weak German business data on Thursday knocked back hopes of a robust economic revival.

Analysts said further volatility was on the cards in currency markets as investors positioned themselves for another shift in the yuan and speculation built ahead of Chinese President Hu Jintao's visit to Washington on Sept. 7.

"We think there's a good chance in September or October of another small move around about 2 percent. They'll continue to move very, very slowly, very gradually -- but a stronger yuan is only a matter of time," said Kevin Grice, senior economist at American Express Bank.

<snip>

Like Bunds, U.S. Treasuries were underpinned by an enduring lack of confidence in long-term economic prospects, with a speech from Alan Greenspan due at 1400 GMT and analysts split on the Federal Reserve's will to continue hiking U.S. interest rates in 2006.

...more...

[UpInArms]

34. Dollar drifts lower ahead of Greenspan

http://www.marketwatch.com/news/story.asp?guid=%7B69AD3783%2D383B%2D446F%2DA646%2D42D857A779B5%7D&siteid=mktw

CHICAGO (MarketWatch) - The dollar continued to slump against it major counterparts in thin summer trading conditions on Friday.

Activity was particularly light ahead of a 10 a.m., Eastern, speech from Federal Reserve Chairman Alan Greenspan.

The Fed chief could offer more insight on the future course of U.S. interest-rate policy. At least two more hikes to the Fed's 3.5% target are expected for this year. From there, financial markets are less certain.

Higher interest rates would make the dollar more attractive to foreign investors, although some gain in interest rates has been long priced into dollar trading, analysts stress. The dollar has been unable to gain much traction from upbeat U.S. economic data. There were no U.S. reports due Friday.

At last check, the greenback was down 0.4% against its Japanese counterprt compared to where it stood late Thursday, at 109.61 yen.

...more...

[UpInArms]

61. Dollar decline deepens on Greenspan asset comments

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38590.4369403472-840898978&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- An already weaker dollar was even lower against its chief rivals following some cautionary comments from Federal Reserve chief Alan Greenspan. The dollar fell to 109.57 yen compared to 109.63 yen before the speech. The dollar is down 0.5% against the yen from late Thursday. The euro was changing hands at $1.2329 compared to $1.2310. It's up 0.3% on the day. Rising home values have provided most Americans with most of their asset growth in recent years. Such increases in asset values "are too often viewed by market participants as structural and permanent," Greenspan said. "History has not dealt kindly with the aftermath of protracted periods of low risk premiums.

here's a peek at the falling dollar:

Last trade 87.54 Change -0.10 (-0.11%)

Settle 87.64 Settle Time 23:36

Open 87.70 Previous Close 87.64

High 87.87 Low 87.46

Last tick: 2005-08-26 10:05:21 ET
30-min delayed quote.

[54anickel]

68. China Blinks (Gotta run for the day)

http://www.kitco.com/ind/resopp/aug252005.html

snip>

At the same time that the yuan rose against the dollar, several other currencies also made gains on the greenback. One could almost say, rather than the yuan appreciating, the Chinese have allowed the dollar to fall.

It is interesting to note that 10% of the US trade deficit with China is created by Wal-Mart. The immediate impact of the currency adjustment will be to effectively boost the cost of goods to the retailing giant. That cost will undoubtedly be passed on to the American consumers.
Clearly, the currency adjustment lessens China's cost advantage for exports. There is a flip side: Imports to China will become less expensive. The biggest component of Chinese imports is resources, primarily oil and metals.

In boosting the value of its currency against the dollar, the world's largest consumer of metals has just cut the costs of buying metals on world markets.
It may look to some like the Chinese are bowing to international pressure. The reality is that the move comes at a time when the Chinese are ready for the adjustment. The country is fairly well-balanced in terms of imports versus exports. While a stronger yuan reduces the cost advantage on the export side, it simultaneously reduces the cost of imports into the country.

For years, massive infrastructure projects – roads, dams, factories, ports, cities and all the other attributes of a rapidly developing nation – have consumed massive amounts of resources. Those big capital projects are continuing. At the same time, demand for goods of all sorts is growing rapidly as consumers within China are rapidly gaining wealth.

While Treasury Secretary John Snow is crowing at his success in urging the Chinese to strengthen the value of their currency, the bottom line is this: consumer goods have just gotten more expensive in the United States and cheaper for Chinese consumers.

[UpInArms]

7. Today's Report:

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

Aug 26	9:45 AM	Mich Sentiment-Rev.	Aug	-	92.7	92.5	92.7	-

[UpInArms]

42. ALERT: UMich Aug. final consumer sentiment falls to 89.1

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38590.4107354282-840897930&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- U.S. consumer sentiment sank in late August, according to media reports of proprietary research at the University of Michigan. The UMich consumer sentiment index fell to 89.1 in late August from 96.5 in July and 92.7 in early August, reports said Friday. Economists were expecting the index to slip to 92.6. The expectations index plunged to 76.9 from 88.5, while the current conditions index fell to 108.2 from 113.5 in July. This is the first decline in sentiment since May.

With gasoline/energy prices soaring, how low will it go?

[54anickel]

58. I can't believe it took this long for folks to start waking up. They were

buying all the spin of "temporary high oil", "soft-patch", "blip", etc, etc, etc. I'm sort of surprised there wasn't a bigger drop in the current conditions index.

[UpInArms]

8. Wal-Mart's biggest threat - rising costs

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2005-08-25T154002Z_01_N25678653_RTRIDST_0_PICKS-BIZWALMART-COSTS-DC.XML

CHICAGO (Reuters) - Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) faces a record-setting sex discrimination case, media campaigns by two unions to spotlight its treatment of workers, and persistent efforts by local groups to block new stores.

The confluence of these struggles -- which Wall Street calls "headline risk" -- has weighed heavily on Wal-Mart's stock. But analysts now say the biggest threat actually comes from within: rising costs.

Wal-Mart used a simple strategy to become the world's biggest retailer -- buy low, sell low. Now the Bentonville, Arkansas-based behemoth is grappling with rising expenses in areas ranging from labor to gasoline, and earnings are under pressure.

Cost controls are critical for a company that generated a slim profit of 3.7 cents per dollar of goods sold in the recently completed second quarter -- nearly 1 cent per dollar less than rival Target Corp. (TGT.N: Quote, Profile, Research).

"You can't sell for less if you're spending more," Wal-Mart Chief Executive Lee Scott said in a speech to Chicago executives earlier this year.

...more...

[UpInArms]

9. US stocks set to open flat before data, Greenspan

http://today.reuters.com/investing/FinanceArticle.aspx?type=mergersNews&storyID=URI:urn:newsml:reuters.com:20050826:MTFH20833_2005-08-26_12-06-20_N26307621:1

NEW YORK, Aug 26 (Reuters) - U.S. stock futures signaled a flat market open on Friday before a report that may offer clues about U.S. consumer sentiment, a key to consumer spending, and a speech by Federal Reserve Chairman Alan Greenspan.

Stocks to watch include Merck & Co. (MRK.N: Quote, Profile, Research) after The Wall Street Journal reported the drug company might consider settling a small number of Vioxx lawsuits.

Also, the Securities and Exchange Commission has launched an informal inquiry into Pixar Animation Studios Inc. (PIXR.O: Quote, Profile, Research) over the DVD release of hit film, "The Incredibles," The Wall Street Journal reported.

<snip>

Greenspan will speak about in Wyoming about "Reflections on Central Banking" at 10 a.m. (1400 GMT).

"The consumer sentiment index will be watched to gauge the confidence of the U.S. consumer, and the market will hang on to every word of Greenspan, who will be his usual enigmatic self," said Hilary Cook, director of investment strategy at Barclays Stockbrokers in London.

...more...

[54anickel]

18. Heh, AP says up, Reuters says flat. 54anickel says it's Friday and

the open is immaterial. Just can't see any damned good reason to want to be "holding stocks over the weekend". :evilgrin:

[UpInArms]

20. latest futures numbers are all down

8:39am 08/26/05 DOW FUTURES DOWN 10 AT 10,450

8:39am 08/26/05 S&P 500 FUTURES DOWN 0.70 AT 1,212.90

8:39am 08/26/05 NASDAQ 100 FUTURES DOWN 0.50 AT 1,566.50

[54anickel]

10. Ewwww, great toon!!! And Good Morning everyone.

I've got another short day here - lots of errands to run. I've got a wedding coming up here in a couple of weeks.

[UpInArms]

13. Whirlpool says plant to slash 400 jobs

http://www.nwanews.com/story.php?paper=adg§ion=Business&storyid=126258

Whirlpool Corp. will cut roughly 400 jobs at its plant in Fort Smith in a move that the city’s biggest employer said will be temporary.

Spokesman Christopher Wyse said Whirlpool will shut down an assembly line at the end of October because of slackening demand for an older model of side-by-side refrigerator made on the line.

Employees with the most seniority can volunteer to be temporarily laid off until demand for the product picks up again, spokesman Mona Mendoza said Thursday. Volunteers will remain employees of the company but will not be paid during their time off, Mendoza said, although they will be eligible to receive public unemployment assistance.

<snip>

The Whirlpool plant employs 4,600 people and is the company’s only factory nationwide that makes side-by-side refrigerators, Mendoza said. The company has announced it will shift some jobs from Fort Smith to Mexico, but has not announced when or how many, Mendoza said.

...more...

[MARALE]

38. Maytag board backs Whirlpool bid

http://www.msnbc.msn.com/id/8929770/


This is not good for some friends of mine that work at Maytag. The times are not good around here.
...

Whirlpool’s deal is 50 percent cash and 50 percent Whirlpool stock. It also includes a $120 million “reverse breakup” fee, which would be paid to Maytag if regulators do not approve the combination.

Whirlpool’s offer represents a 50 percent premium to the initial bid of $14 per share, or about $1.13 billion, that Maytag received from investment group Triton Acquisition Holding Co. Maytag’s board accepted the all-cash offer on May 19, and had recommended to shareholders approval of that deal at an Aug. 19 meeting.

On Friday, Maytag withdrew its recommendation of the Triton deal and postponed the shareholders meeting to Aug. 30.

[UpInArms]

15. Tenet (Healthcare) gets default notice on $140 mln bonds

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-26T121841Z_01_WEN8067_RTRIDST_0_HEALTH-TENET-DEFAULT-URGENT.XML

NEW YORK, Aug 26 (Reuters) - Tenet Healthcare Corp. (THC.N: Quote, Profile, Research) on Friday said it received a default notice from holders of $139.9 million of its bonds because the hospital operator is late filing its quarterly report with securities regulators.

The Dallas-based company said the notice concerns its 6.875 percent senior bonds maturing in 2031, of which there are $450 million outstanding. Tenet said it received the default notice on Thursday, and disclosed it in a U.S. Securities and Exchange Commission filing.

Tenet said it expects to cure the default by filing its report for the quarter ended June 30 with the SEC by Nov. 23, when the cure period expires. The company on July 20 said it expected a delay in filing the quarterly report.

...very short blurb...

[UpInArms]

19. Sycamore Networks to restate FY00-04 results

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38590.3623020949-840895965&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Sycamore Networks (SCMRE) said Friday that its audit committee has completed an independent probe of its stock option accounting and found that certain options granted from 1999 to 2001 were incorrectly accounted for under generally accepted accounting principles. The company now plans to restate its results for fiscal years 2000 through 2004 to reflect the amoritization of this additional non-cash stock compensation expenses. It estimates the adjustments total $33.8 million in costs over the six-year period, and said the changes have no impact on revenue, cash, or non-option related expenses. The restatement swings Sycamore to a loss of $746,000 for fiscal 2000 from its previously reported profit of $668,000 for the period, and widens losses in fiscal 2001, 2002 and 2003. The stock closed Thursday at $3.65, up a nickel.

[54anickel]

21. Heavy clouds, no rain

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=45814

“Because the market has not dropped sharply, it will not drop sharply.”

If there is one thought that will cost investors billions in the near future, it is this one. The price action of the major US indices over the last year appears to have anesthetized investors into a lethargic state making it improbable that they will prepare their investments before the next major move. I am not talking about hundred point moves on the Dow, but thousand point moves. Why is this happening? Why is this lethargy so instinctive in our behavior?

snip>

While we can all read this article with our minds engaged, away from the distraction and noise of Wall Street and Washington, when we meander back into the milieu of daily life, it becomes very hard to prepare for something that appears as though it will not occur. Since no one desires to see the financial and social changes that accompany a bear market, it becomes even easier to push off until tomorrow what we do not want to address today. The more times we don’t make a decision to change, the more we are emotionally rewarded with the fact that so far nothing happened. Fifty point declines are met with fifty point rallies. The sky is blue. The grass is green. No rain comes.

snip>

The Journal of Behavioral Finance had a great article recently called “Self is not Neutral”. In this piece Gao and Schmidt write, “Rationalization doesn’t mean, ‘acting rationally.’ It means attaching desirable motives to what we have done so that we seem to act rationally. In other words, people seek justification for their behavior. Rationalization makes people feel good.” 11

With the millions of marketing dollars spent on teaching advisors how to help their clients “feel comfortable,” is it any wonder that so many investors and advisors, surrounded by the emotional comfort of the herd and blinded by what we want to see, would ignore all the warning signs of a Noah effect until after the event costs them dearly.

My research reveals that there are a few managers and traders who have the incredible fortitude and exceptional skills to prepare ahead of an event. In so doing, they will not only be able to avoid the pains of the downturn, but will actually be positioned to profit from the Noah Effect. The good news is that there are individual and institutional platforms in place today, that purpose to profit when the next Noah Effect occurs.

more...

[UpInArms]

25. ah, the herd mentality

[54anickel]

40. Lemmings today - sheep to the slaughter tomorrow...n/t

[UpInArms]

23. California targets 39 companies in drug fraud lawsuit

http://www.canada.com/health/story.html?id=c38b9757-17d0-445e-b00d-1976e93e978b

LOS ANGELES (AP) - California regulators named 39 new defendants Thursday in a lawsuit against U.S. pharmaceutical companies accused of inflating drug prices and costing state taxpayers hundreds of millions of dollars.

Among those named were drug giants Amgen Inc., Bristol-Myers Squibb Co., GlaxoSmithKline P.L.C., Novartis AG, Sandoz Inc., Mylan Laboratories Inc. and Schering-Plough Corp.

"We're going to drag these drug companies into courts of law because they've been gouging the public," California Attorney General Bill Lockyer said at a news conference.

"We estimate each of the pharmaceutical companies could be liable for up to $30 to $40 million (US)."

<snip>

In the new complaint, the state claims the drug companies inflated the average wholesale price of many drugs, creating vast spreads between the cost paid by health care providers and the reimbursement rates they received from Medi-Cal.

In one example cited in the suit, Medi-Cal paid $804.70 US for a single bottle of the hypertension drug Atenolol. Providers such as doctors, clinics and pharmacists paid $33.85 US for the same amount of the drug made by Canonsburg, Pa.-based Mylan Laboratories Inc., the suit said.

...more...

[WhiteTara]

69. remember the drug bill said the pharmas could charge

anything they wanted to, no questions asked. But good for Lockyer. I am a real fan of his.

[UpInArms]

26. US junk bond funds report $9 mln weekly inflow

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-26T130251Z_01_N262425_RTRIDST_0_FINANCIAL-JUNK-AMG.XML

NEW YORK, Aug 26 (Reuters) - U.S. junk bond mutual funds attracted $9.4 million of net inflows in the week ended Wednesday, reversing six straight weeks of outflows, AMG Data reported late on Thursday.

The funds had lost $196.8 million in net outflows the prior week.

The inflows came after junk, or high-yield, bonds staged a nearly two-week string of gains on the back of limited new supply and continuing demand from institutional investors.

"Even though people focus on the AMG numbers, and they see people leaving the system, that's only a very small part of the story," said Harry Resis, director of U.S. fixed-income at Henderson Global Investors in Chicago.

Insurance companies, pension funds and other investors searching for yield have been trying to put money to work and finding little to buy as high-yield issuance slumped during the traditional late summer vacation season, Resis said.

...more...

Michael Milken must be so happy!

[UpInArms]

27. FACTBOX -FHLBS undergoing financial restatements

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-26T130239Z_01_N264948_RTRIDST_0_FINANCIAL-FHLBS-FACTBOX.XML

NEW YORK, Aug 26 (Reuters) - Derivatives accounting errors
are forcing financial restatements at some of the 12 regional
banks that are part of the Federal Home Loan Bank system.


The earnings restatements are needed to comply with a
complex derivatives accounting rule called "SFAS 133."


Most of the banks have also said they will not meet an Aug.
29 deadline to register with the Securities and Exchange
Commission. The FHLB system's regulator said banks unable to
meet this target will have to report weekly to the examiner in
charge.


Following is a table, provided by the Office of Finance of
the Federal Home Loan Banks, detailing announced restatements
and the status of SEC filing.

...more...

[UpInArms]

28. pre-opening blather

9:00AM: S&P futures vs fair value: -2.2. Nasdaq futures vs fair value: -3.5. Still shaping up to be a weak start for the cash market, as futures indications now trade near their worst levels of the morning... While blue chips could get a boost following Hewlett-Packard's (HPQ) additional $4 bln stock buyback and reports that Merck (MRK) may consider settling some pending Vioxx-related cases, oil prices holding above $67/bbl continue to underpin a sense of nervousness, as traders have not totally ruled out possible rig disruptions in the Gulf from Hurricane Katrina

8:30AM: S&P futures vs fair value: -0.9. Nasdaq futures vs fair value: -1.5. Futures trade still stuck in neutral, setting the stage for the indices to open on a relatively flat to slightly lower note... Keeping in mind that it is a Friday in late August, investors may also be waiting to see what Fed Chairman Alan Greenspan has to say about the economy at the Economic Symposium (10:20 ET)

8:00AM: S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: -1.0. Futures market versus fair value suggesting a lackluster open for the cash market as investors wait for economic data to perhaps set a more definitive tone to trading...

[54anickel]

29. If 'Bubble' Bursts, Legacy of Greenspan May Deflate

http://www.latimes.com/business/la-fi-fed26aug26,1,7185861.story?coll=la-headlines-business

snip>

And some experts say Greenspan deserves at least some of the blame for fostering housing market conditions that the Fed chairman himself has called "frothy." The Fed, they say, hasn't done enough to damp real estate speculation, while maintaining cheap credit for too long.

Although Greenspan has warned of the pitfalls of "interest only" loans and other riskier mortgages, the central bank should be doing more to tighten lending standards and discourage their use, these experts say.

"The Fed deserves some criticism for its handling of the stock bubble and now the housing bubble," says Mark Zandi, chief economist for Economy.com, a research firm in West Chester, Pa. Among other things, Zandi says, Greenspan should be "talking more forcefully" about housing conditions while tightening lending standards.

snip>

"This will have been the most successful period in the history of the Federal Reserve system," William A. Niskanen, a Reagan administration economic advisor and now chairman of the conservative Cato Institute in Washington, says of Greenspan's tenure. But, he says, the Fed chief made three major mistakes, including fostering banking regulations that helped precipitate today's low mortgage rates — "a condition that has contributed to what now looks like a housing bubble."

snip>

For their part, Greenspan and other Fed officials have said they can't and shouldn't target possible bubbles in stocks, housing or other assets, partly because it's hard to know precisely what constitutes a bubble. Policies aimed at attacking bubbles could produce other unwanted side effects, they have said.

Instead, Fed officials have suggested they would seek to ease the aftermath of any bubbles — as they did following the 2000 stock crash. Their quick efforts then to cut interest rates, experts say, helped make the 2001 recession relatively mild.

more...

[54anickel]

30. The Doctrine Was Not to Have One

http://www.nytimes.com/2005/08/26/business/26fed.html

"We really do not know how this system works," he told members of the Fed's policy-making committee in Washington, according to transcripts released earlier this year. "It's clearly new. The old models just are not working."

snip>

Despite numerous economic shocks and financial excesses, unemployment and inflation are both lower now than many economists considered possible when Mr. Greenspan took office in 1987. But whoever moves into his spacious office on Constitution Avenue early next year faces a near-impossible task in replicating Mr. Greenspan's success in managing monetary policy.

That is because Mr. Greenspan abhorred rules, was skeptical about economic models and jettisoned practices that were enshrined by the likes of Paul A. Volcker, his predecessor, and Milton Friedman, a winner of the Nobel in economic science. If Mr. Greenspan stood for anything, it was flexibility and the freedom from dogma.

"The Greenspan standard has for the most part meant what Greenspan wanted to do," said Alan S. Blinder, a professor of economics at Princeton and a former vice chairman of the Federal Reserve.

more...

[UpInArms]

31. Huh? Meanspin loves ARMS -

GREENSPAN TOUTS ARMS

http://great-rates.com/benchfvsa.htm

On Monday(2/23/04), Alan Greenspan, chairman of the Federal Reserve Board, touted the potential savings associated with adjustable-rate mortgage packages. Greenspan believes ARMs may offer consumers a less expensive method of financing a home than fixed-rate mortgage products if homeowners are "willing to manage their own interest-rate risks." Greenspan is referring to risks associated with increases in the amount consumers must pay each month for adjustable-rate mortgage products when interest rates increase. As support for his belief, Greenspan referred to a Fed study suggesting many homeowners could have saved tens of thousands of dollars over the last decade if they used ARMs. He also quickly pointed out those savings would not materialize if interest rates increased over that period. Consumers should consider their individual financial circumstances and needs and then weigh the benefits of both adjustable-rate and fixed-rate mortgage products when financing their home.

[54anickel]

37. I believe he was LY-Y-Y-Y-Y--Y-ING.

It was the prick's way to prick the GSEs (Fannie & Freddie) which were threatening "systemic risks" to the economy. He needed to slow their growth down, he was trying to transfer the risk from the system to the individual borrower.

Unfortunately, the borrowers and banks took him at his word and both went running off to even more creative (risky) ways to finance. So what he really accomplished was moving the systemic risk from the GSEs to the banking system. Now we have the FDIC more than a bit worried.

I believe his intent was to stick the individual borrower with the risk, but the banks have gotten a bit too creative. JMHO.

[UpInArms]

33. Meanspin is spending the week at the Jackson Hole, WY spa

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38590.3800657755-840896653&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- The 10-year Treasury note was trading little changed Friday morning ahead of a 10 a.m. Eastern, speech by Federal Reserve Chairman Alan Greenspan. The Fed chief is attending the central bank's annual retreat in Jackson Hole, Wyo., which is centering on Greenspan's legacy ahead of his departure from the bank in early 2006. The 10-year note, a reference for mortgage and corporate borrowing rates, was priced at 100 23/32, yielding ($TNX) 4.16%.

I wonder how much taxpayer money that is sucking up :eyes:

[54anickel]

54. US banks' margins fall to 15-year low, FDIC says

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh08690_2005-08-25_20-11-15_n25339356_newsml

snip>

Rising short-term interest rates, and the failure of long-term rates to rise with them, have caused margins at federally-insured banks and thrifts to shrink to their lowest level in 15 years, the Federal Deposit Insurance Corp. said on Thursday.

snip>

Less-than-ideal rate bets already cut into second-quarter profits at such giants as Citigroup Inc. (C.N: Quote, Profile, Research) and Bank of America Corp. (BAC.N: Quote, Profile, Research) and JPMorgan Chase & Co. (JPM.N: Quote, Profile, Research)

"Banks are trying to push out loans that fewer people may want as the economy slows, while their favorite user of money, corporations, still have tremendous amounts of cash on their balance sheets," said James Cusser, senior portfolio manager at Waddell & Reed Investment Management Co. "Bigger banks would like to do more commercial lending, and if there's not enough demand for it, they have to cut their prices."

The FDIC said net interest margin, the difference between what banks earn on loans and pay on deposits, fell to 3.49 percent from 3.53 percent in the first quarter.

Margins are now the lowest since the third quarter of 1990, when the U.S. economy was in recession. Overall second-quarter profit at the 8,868 institutions insured by the FDIC fell 3.3 percent from the first quarter to $33.1 billion.

more...

[UpInArms]

35. 9:33 EST casino wheels spinning in the red

Dow 10,442.99 -7.64 (-0.07%)
Nasdaq 2,132.21 -2.16 (-0.10%)
S&P 500 1,211.53 -0.84 (-0.07%)
10-Yr Bond 4.158 -0.02 (-0.05%)

NYSE Volume 31,986,000
Nasdaq Volume 36,237,000

[UpInArms]

41. 9:49 EST cut must have been deeper - blood flowing

Dow 10,410.67 -39.96 (-0.38%)
Nasdaq 2,125.32 -9.05 (-0.42%)
S&P 500 1,209.24 -3.13 (-0.26%)
10-Yr Bond 4.158 -0.02 (-0.05%)

NYSE Volume 107,782,000
Nasdaq Volume 110,833,000

9:40AM: Market opens with little fanfare, as a Friday during the height of the August vacation period provides investors with no major earnings reports to digest and little in the way of economic data... While a revision to Michigan sentiment (consensus 92.5) will be out momentarily and any updates about the central bank's interest rate plans out of the Kansas City Fed's Economic Symposium (Jackson Hole, WY) may provide more market direction, oil prices near record levels have so far kept investors reluctant to buy stocks ahead of the weekend...

9:15AM: S&P futures vs fair value: -1.9. Nasdaq futures vs fair value: -3.0.

[UpInArms]

44. 10:01 EST dripping again

Dow 10,408.90 -41.73 (-0.40%)
Nasdaq 2,124.03 -10.34 (-0.48%)
S&P 500 1,209.07 -3.30 (-0.27%)
10-Yr Bond 4.157 -0.03 (-0.07%)

NYSE Volume 168,853,000
Nasdaq Volume 169,830,000

[54anickel]

47. 10:04 - got a tourniquet?

Dow 10,392.76 -57.87 (-0.55%)
Nasdaq 2,119.40 -14.97 (-0.70%)
S&P 500 1,206.54 -5.83 (-0.48%)
10-yr Bond 4.157% -0.00
30-yr Bond 4.354% -0.01
NYSE Volume 196,581,000
Nasdaq Volume 198,312,000

edit for html and blather

10:00AM: Major indices spike lower following a larger than expected decline in Aug. consumer confidence... A final read on University of Michigan Sentiment has checked in at 89.1, below forecasts of 92.5 and July's final read of 92.7... Even though the data do not correlate well with spending and the economy remains strong, very high gasoline prices, which rose to a record of $2.65/gal last week, may be having a disproportionate impact on sentiment as the end of the summer driving season approaches... NYSE Adv/Dec 1019/1472, Nasdaq Adv/Dec 851/1441

[UpInArms]

50. LOL!

small bandage is more like it

10:08 EST

Dow 10,402.47 -48.16 (-0.46%)
Nasdaq 2,121.03 -13.34 (-0.63%)
S&P 500 1,206.66 -5.71 (-0.47%)
10-Yr Bond 4.153 -0.07 (-0.17%)

NYSE Volume 220,770,000
Nasdaq Volume 225,286,000

[54anickel]

53. All is well. Greenspin says we have "Economic Flexibility". That must

mean we've master the art.

[UpInArms]

48. 10:05 Meanspin removes tourniquet - blood flowing freely

Dow 10,400.32 -50.31 (-0.48%)
Nasdaq 2,120.39 -13.98 (-0.65%)
S&P 500 1,205.77 -6.60 (-0.54%)
10-Yr Bond 4.157 -0.03 (-0.07%)

NYSE Volume 204,939,000
Nasdaq Volume 207,402,000

[54anickel]

39. Survey: Money Causes A THIRD to Delay Retiring

http://www.latimes.com/business/la-fi-wrap26.2aug26,1,6976589.story?coll=la-headlines-business

A third of workers in the United States are having to push back retirement because they either did not save enough to live out their golden years or started too late, according to Fidelity Investments.

In a national survey of 1,900 workers ages 25 and older, the No. 1 mutual fund firm and a big player in the retirement industry found that more than half of those workers who have had to postpone retirement have done so because they did not save enough.

Thirty-five percent said they had started saving too late in life, and about the same number had to keep working to hold on to employer-paid health benefits, according to the survey released this week.

About one-quarter said their delayed retirement was caused by poor investment decisions or market fluctuations that caused a shortage of money.

more...

[UpInArms]

46. Has-Been Partisan Hack opens piehole

Housing boom is an imbalance: Greenspan

http://www.marketwatch.com/news/story.asp?guid=%7BA3CA37F5%2D7729%2D4975%2D9E35%2D79C7B3CB62F5%7D&siteid=mktw

JACKSON HOLE, Wyo. (MarketWatch) -- In his sharpest words to date about rising home prices, Fed chief Alan Greenspan described the housing boom as an economic imbalance that could end badly for the economy.

In prepared remarks to the Jackson Hole Fed policy conference, Greenspan said high home prices were due in part to low risk premiums demanded by investors. Such increases in asset values "are too often viewed by market participants as structural and permanent."

"History has not dealt kindly with the aftermath of protracted periods of low risk premiums." Read his remarks.

Greenspan warned asset values could fall if investors grow cautious and demand higher interest rates. "What they perceive as newly abundant liquidity can readily disappear," Greenspan said.

"Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported higher prices," Greenspan said.

Greenspan said the flexibility of the economy is the most important policy asset in handling any shocks from a fall in asset values.

...more...

10:00am 08/26/05 GREENSPAN: PROTECTIONISM, DEFICIT THREATEN U.S. FLEXIBILITY

10:00am 08/26/05 GREENSPAN: ECONOMIC FLEXIBILITY HELPS U.S. WEATHER SHOCKS

10:00am 08/26/05 GREENSPAN: RETURN OF INVESTOR CAUTION COULD HURT HOME PRICES

10:00am 08/26/05 GREENSPAN WARNS HIGH HOME VALUES CAN DISAPPEAR QUICKLY

10:00am 08/26/05 GREENSPAN CALLS HOUSING BOOM AN ECONOMIC IMBALANCE

[54anickel]

49. GACK!!! This is gonna be a BAD Friday....eom

[54anickel]

52. That SOB!!! I hope those pixies have plenty of dust - or that a lot of

traders have joined BeelzeBush in vacationing. I'm not quite done liquidating my holdings yet.

[UpInArms]

59. Meanspin comments hit markets

Stocks fall on sentiment data
Fed chief's concern about housing boom further weighs

http://www.marketwatch.com/news/story.asp?guid=%7BE481DBEA%2D9DE6%2D4195%2D8F1C%2D41CEF9C6A553%7D&siteid=mktw

NEW YORK (MarketWatch) - U.S. stocks extended losses Friday on a weaker-than-expected consumer sentiment report and remarks by Fed Chief Alan Greenspan that the current housing boom could derail the economy.

The Dow Jones Industrial Average ($INDU: news, chart, profile) fell 45 points to 10,405.

The Nasdaq Composite Index ($COMPQ: news, chart, profile) was down 13 points to 2,121 while the S&P 500 Index ($SPX: news, chart, profile) was off 6 point at 1,206.

On the broader market for equities, decliners outpaced advancers by more than two to one on both the New York Stock Exchange and the Nasdaq.

Volume was 184 million on the Big Board and 246 million on the Nasdaq.

Federal Reserve Chairman Alan Greenspan unsettled the markets after describing the housing boom as an economic imbalance that could end badly for the economy.

...more...

[54anickel]

67. Greenspan warns on protectionist pressures

http://news.ft.com/cms/s/d8a3cc54-163e-11da-8081-00000e2511c8.html

Alan Greenspan, Federal Reserve chairman, warned on Friday that high asset prices and growing protectionist pressures will complicate the task for his successor, stressing the importance of maintaining a flexible economy.

A continuing commitment to flexibility would help the US adjust to shocks and financial imbalances, Mr Greenspan said, opening the Federal Reserve's Jackson Hole Symposium, sponsored by the Kansas City Fed.

snip>

This flexibility meant that imbalances “can be rectified by adjustments in process, interest rates, and exchange rates rather than through more wrenching changes in output, incomes and employment,” he said, pointing to the economy's resilience, from the 1987 stock market crash through to the period of shocks in recent years including the September 11 attacks and the high oil price.

Mr Greenspan warned that growing protectionist pressures were a threat to this flexibility. Global competition, he said, has been a boon for the US economy, with competition spurring innovation and new technologies. Global competition has also made life difficult for workers, who face competition from workers in developing countries, but these concerns should be met with education and training and not with trade barriers, he said.

Mr Greenspan said that “fear of change” had also stopped the US from dealing with long-term fiscal reform, notably the failure to deal with Social Security reform. In the past he has warned that the ageing of the US population, and associated rises in pension and health costs, will mean there have to be big tax increases in the absence of early reforms.

more...

[ozymandius]

55. My last post of the day. Looks like it's going to be a bumpy ride.

10:23
Dow 10,411.00 -39.63 (-0.38%)
Nasdaq 2,123.81 -10.56 (-0.49%)
S&P 500 1,207.78 -4.59 (-0.38%)
10-Yr Bond 4.161% 0.00
NYSE Volume 290,585,000
Nasdaq Volume 290,557,000

Gotta run folks. Have a great weekend!

Ozy :hi:

[54anickel]

56. Bye Ozy! Take care and as always thanks for all you do. n/t

[UpInArms]

Bye Ozy!

Have a great weekend! :hi:

[Roland99]

57. You have a great weekend, too!

[54anickel]

60. Foreign markets leave U.S. in the dust

http://www.usatoday.com/money/markets/us/2005-08-26-xenomart-usat_x.htm

snip>

Now, check the stock returns for these global bourses. What you'll find is they're all up for the year. And, in most cases, up big.

Not so the USA, where stock prices have flat-lined. The broad market measured by the Standard & Poor's 500 index closed Thursday at 1212.37, less than 1 point higher than it ended 2004. That's a gain of just 0.04%.

The U.S. landscape is barren, bleak and boring. But things are far more lush virtually everywhere else. "Without question foreign stock markets are doing better than the U.S. market," says Bob Doll, chief investment officer for Merrill Lynch Investment Managers.

How much better? A lot, at least when the gains on foreign exchanges are measured in local currencies. Stocks in Norway, Denmark and Austria are all up more than 25%, according to indexes compiled by Morgan Stanley Capital International. Japanese shares have gained 10%. Stocks north of the border in Canada have rallied 15%. Even down under in Australia, shares are up 11%.

It's important to point out, however, that those plump gains shrink a bit for U.S.-based investors after they are translated back into U.S. dollars, due to the weakness of the greenback relative to foreign currencies.

more...

[UpInArms]

63. 10:41 EST pixie dust appearing

Dow 10,418.71 -31.92 (-0.31%)
Nasdaq 2,124.01 -10.36 (-0.49%)
S&P 500 1,208.09 -4.28 (-0.35%)
10-Yr Bond 4.145 -0.15 (-0.36%)

NYSE Volume 358,720,000
Nasdaq Volume 349,294,000

10:30AM: Stocks extend their reach into negative territory in the absence of spirited leadership from any economic sector... Financial has been an influential leader to the downside, amid follow-through selling in brokerage and Capital One Financial (COF 81.40 -1.45) hitting a new August low following an analyst downgrade... Technology has been weak across the board while losses in biotech and drug have kept Health Care underwater...

Further consolidation in retail and homebuilding has weighed on Consumer Discretionary while even Utilities, which caught an early bid following another analyst upgrade, this time on Entergy (ETR 77.93 +1.00), has traded lower... DJTA -0.6, DJUA -0.3, DOT -0.4, Nasdaq 100 -0.6, Russell 2000 -1.0, SOX -0.8, S&P Midcap 400 -0.7, XOI -0.3, NYSE Adv/Dec 795/1994, Nasdaq Adv/Dec 761/1783

[54anickel]

64. Seems the 10:00 bounce just doesn't have the carry-over it used to.

[UpInArms]

65. 11:31 EST pixies have failed to hold 10,400

Dow 10,398.56 -52.07 (-0.50%)
Nasdaq 2,119.96 -14.41 (-0.68%)
S&P 500 1,205.72 -6.65 (-0.55%)
10-Yr Bond 4.177 +0.17 (+0.41%)

NYSE Volume 538,201,000
Nasdaq Volume 494,676,000


10:30AM: Stocks extend their reach into negative territory in the absence of spirited leadership from any economic sector... Financial has been an influential leader to the downside, amid follow-through selling in brokerage and Capital One Financial (COF 81.40 -1.45) hitting a new August low following an analyst downgrade... Technology has been weak across the board while losses in biotech and drug have kept Health Care underwater...

Further consolidation in retail and homebuilding has weighed on Consumer Discretionary while even Utilities, which caught an early bid following another analyst upgrade, this time on Entergy (ETR 77.93 +1.00), has traded lower... DJTA -0.6, DJUA -0.3, DOT -0.4, Nasdaq 100 -0.6, Russell 2000 -1.0, SOX -0.8, S&P Midcap 400 -0.7, XOI -0.3, NYSE Adv/Dec 795/1994, Nasdaq Adv/Dec 761/1783]

[54anickel]

66. 11:44 pre-lunch check

Dow 10,391.48 -59.15 (-0.57%)
Nasdaq 2,119.17 -15.20 (-0.71%)
S&P 500 1,204.69 -7.68 (-0.63%)
10-yr Bond 41.74 +0.14 (+0.34%)
30-yr Bond 43.69 +0.04 (+0.09%) NYSE Volume 586,630,000
Nasdaq Volume 532,097,000

11:30AM: More of the same for the major averages as sellers remain in control of the early action... Aside from the disappointing read on consumer sentiment and oil prices near record levels weighing on stocks, the U.S. markets may also be taking notice of a reversal in European markets... Since the last update, the Dax Index has finished down 1.4% while the FTSE 100 Index and CAC 40 Index have also relinquished modest gains to close down 0.4% and 0.8%, respectively... NYSE Adv/Dec 901/2073, Nasdaq Adv/Dec 863/1861

11:00AM: Market still languishing near session lows as investors sift through Greenspan's commentary... While the Fed Chairman has said the economy can withstand the high cost of energy, he has also warned that investors may be overly confident in the stability of the U.S. economy, as low interest rates have helped bid up values of homes... Even as the central bank has raised the fed funds rate ten times since June 2004, benchmark yields have fallen to 4.16%...NYSE Adv/Dec 924/1983, Nasdaq Adv/Dec 808/1852

[UpInArms]

70. 12:50 EST numbers and blather (10,400 by a hair)

Dow 10,401.43 -49.20 (-0.47%)
Nasdaq 2,122.42 -11.95 (-0.56%)
S&P 500 1,206.23 -6.14 (-0.51%)
10-Yr Bond 4.174 +0.14 (+0.34%)

NYSE Volume 761,076,000
Nasdaq Volume 688,404,000

12:30PM: No change to the prevailing trend as the afternoon session gets underway and selling remains widespread across most areas... Not even a 4.0% surge in shares of Engelhard Corp. (EC 28.66 +1.16), after JP Morgan upgraded the stock to Overweight from Neutral on valuation, has been able to lift the Materials sector and offset continued deterioration in Dow Chemical (DOW 43.72 -0.96)... DOW shares have lost 7.5% of their value this week amid a Citigroup downgrade yesterday and margin concerns, which prompted CSFB to cut its Q3 earnings projections to $0.84 (from $0.92) on Wednesday... NYSE Adv/Dec 834/2243, Nasdaq Adv/Dec 850/1988

12:00PM: Market remains weak across the board midday as a larger than expected decline in consumer confidence and oil prices trading near $68/bbl, during a Friday in late August with little else in the way of market-moving catalysts, underpin a sense of nervousness... Even though Fed Chairman Greenspan said earlier at the Kansas City Fed's Economic Symposium that the economy can withstand the high cost of energy, it appears high gas prices, for the moment anyway, continue to weigh on sentiment...

Just after the market opened, investors received a final read on Aug. University of Michigan sentiment, which fell for the first time in three months to 89.1 (consensus 92.5), as gas prices last week rose to a record of $2.65 per gallon... To that end, updated reports that Hurricane Katrina may make its way across Florida and potentially disrupt rig production in the Gulf has again kept oil prices ($67.70/bbl +$0.21) at the forefront of investors' minds...

[spotbird]

73. My money says it will close above 10,400

Speaking of money, here is everyone keeping their's these days?

Mine is in a coffee can buried in the back yard. ;)

[UpInArms]

76. ziplock baggies

:hi:

I agree - 10,400 seems to be the target of the day - gotta keep those fairies working overtime -

I see that they twisted a few hedge funds into letting oil slip below $67 :eyes:

[UpInArms]

71. Corruption: Immucor: SEC issues formal order in govt payments probe

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38590.5230897917-840902305&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Immucor Inc. (BLUD) on Friday said that the Securities and Exchange Commission has issued a formal order in its investigation into payments made by the company's Italian subsidiary to individuals associated with government medical facilities. The formal order allows SEC staff to compel testimony and document production, the Norcross, Ga.-based blood transfusion company noted. The previously reported probe was launched after Immucor reported to the SEC violation of the books and records requirements of the Foreign Corrupt Practices Act. The company said it plans to continue to cooperate fully with the agency.

Wasn't this something that Bolton was attempting to do away with at the UN with his "deletions"?

[54anickel]

84. Who knows, the ass demanded 750 amendments - it'll take days

just to wade through his shit to find out - I'm sure it's probably one of them.


http://www.nzherald.co.nz/index.cfm?c_id=2&ObjectID=10342645

snip>

In an extraordinary intervention, United States appointee John Bolton has sought to roll back proposed UN commitments on aid to developing countries, combating global warming and nuclear disarmament.

Ambassador Bolton has demanded no fewer than 750 amendments to the blueprint restating the ideals of the international body, originally drafted by UN Secretary-General Kofi Annan.

The amendments are spelled out in a 32-page US version, littered with deletions and exclusions. Most strikingly, the changes eliminate all specific reference to the so-called Millennium Development Goals, accepted by all countries at the last major UN summit in 2000.

The Americans are also seeking to remove virtually all references to the Kyoto Treaty and the battle against global warming.

They are striking out mention of the disputed International Criminal Court and drawing a red line through any suggestion that the nuclear powers should dismantle their arsenals.

Instead, they are seeking to add emphasis to passages on fighting terrorism and spreading democracy. :wtf:

[UpInArms]

75. 2:48 EST numbers and blather (2 o'clock fairies tiring)

Dow 10,420.16 -30.47 (-0.29%)
Nasdaq 2,124.77 -9.60 (-0.45%)
S&P 500 1,207.65 -4.72 (-0.39%)
10-Yr Bond 4.197 +0.37 (+0.89%)

NYSE Volume 1,109,574,000
Nasdaq Volume 962,827,000

2:30PM: Stocks finally catch a break, getting a huge lift in sympathy with a reversal in oil prices... Within the last 30 minutes, crude oil futures ($66.15/bbl -$1.34) have relinquished more than 1.5% and are now off roughly 3.0% from session highs (near $68/bbl) heading into the close of commodities trading... But the lack of participation, as total volumes have yet to surpass the 1.0 bln share mark at either the NYSE or Nasdaq, provide little conviction behind the market's recent rebound...NYSE Adv/Dec 908/2264, Nasdaq Adv/Dec 904/2039

2:00PM: Little changed since the last update as a lack of industry leadership continues to dictate afternoon action... One area in particular has been Homebuilding, which continues to consolidate after being one of only a handful of outperforming groups this year... The latest blow to prompt widespread profit-taking have been comments from Fed Chairman Greenspan about rising interest rates potentially choking off the housing-related wealth effect, as evidenced just two days ago by another record in July new home sales...

The PHLX Housing Sector Index (HGX 518.96 -5.77) has closed lower 15 out of the last 20 days and is 13.2% off its July 29 high... NYSE Adv/Dec 904/2251, Nasdaq Adv/Dec 917/2004

[UpInArms]

77. News of the Weird: U.S. Mint Confiscates 10 Rare Gold Coins

http://news.yahoo.com/news?tmpl=story&cid=513&e=9&u=/ap/20050826/ap_on_go_ot/rare_coins

PHILADELPHIA - The U.S. Mint seized 10 Double Eagle gold coins from 1933, among the rarest and most valuable coins in the world, that a jeweler says she turned in to determine their authenticity.

Joan S. Langbord plans a federal court lawsuit to try to recover them, her attorney, Barry H. Berke, said Wednesday. Langbord found the coins among the possessions of her late father, longtime jeweler
Israel Switt, who had acknowledged selling some of the coins decades ago. She now operates her father's business.

David Lebryk, acting director of the Mint, had announced in a news release that the rare coins, which were never put in circulation, had been taken from the Mint "in an unlawful manner" in the mid-1930s and now were "recovered."

The coins, which are so rare that their value is almost beyond calculation, are public property, he said.

<snip>

In 2002, Sotheby's and numismatic firm Stack's auctioned off a 1933 Double Eagle coin for $7.59 million, the highest price ever paid for a coin. That Double Eagle, believed to have been part of a collection belonging to King Farouk of Egypt, surfaced when a coin dealer tried selling it to undercover Secret Service agents.

...more...

(nice pic here:

http://news.yahoo.com/photo/ydownload_ap/20050825/photos_net_ap_yn/1124990181;_ylt=AnDlIofKFiacnb6gZumq3hp2wPIE;_ylu=X3oDMTA3bGk2OHYzBHNlYwN0bXA-

[MARALE]

80. That is terrible!

Imagine finding those coins and thinking you have won the lottery, then have the government steal them away. I don't think they have any right to take the coins. Wow, I don't know why it makes me so mad, maybe because this is women's rights day and they are taking this away from a woman.

Happy Women's Rights Day!!!! the aniversary of the 19th admendment.

[UpInArms]

78. Early stress test for next Fed chief?

http://www.marketwatch.com/news/story.asp?guid=%7BEE3A8927%2DC3D3%2D440B%2DB50F%2D64B0D5CD6614%7D&siteid=mktw

JACKSON HOLE, Wyo. (MarketWatch) - Current storm clouds on the economic horizon could mean that the next chairman of the Federal Reserve will face a stress test from serious market difficulties, former Treasury Secretary Robert Rubin said Friday.

As a result, it would be best if the next Fed chief should have some financial market savvy, Rubin said.

The U.S. economy "is at a critical juncture for the longer-term," Rubin said in a speech prepared for delivery to the Fed policy conference.

"The longer we don't face them the harder they get," Rubin said in an interview with MarketWatch.

The 10-year fiscal budget outlook, when combined with the low personal savings rate and the current account deficit "all suggest, in my view, that the next Fed chairman could face - at some point in the future-an even greater need for the understanding and experience to deal with serious market difficulties," Rubin said.

...more...

[UpInArms]

79. Fitch may downgrade First Bancorp ratings

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38590.6350999306-840905910&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Fitch Ratings on Friday placed the ratings of First Bancorp (FBP) on rating watch negative after the Securities and Exchange Commission said it's conducting an informal inquiry into the company. While the scope of the review and potential magnitude of a financial adjustment seem limited, Fitch said it's concerned that both the scope and financial impact may expand. The agency also noted that due to the review, First Bancorp is unable to file its Form 10-Q for the quarter ended June 30 on a timely basis. This could trigger a covenant default in a few of the company's funding facilities, said Fitch, pressuring its liquidity.

[Maeve]

81. Final numbers (ouch! That's going to leave a mark!)

Dow 10,397.29 -53.34 (-0.51%)
Nasdaq 2,120.77 -13.60 (-0.64%)
S&P 500 1,205.10 -7.27 (-0.60%)
10-Yr Bond 41.89 +0.29 (+0.70%)
NYSE Volume 1,495,594,000
Nasdaq Volume 1,260,291,000

[54anickel]

85. Side o' blather

Despite oil prices closing lower for the first time in seven sessions, investors had little else in the way of upside catalysts to offset a decline in consumer sentiment, a Fed warning about financial-market risk and rising bond yields... While record high oil prices added to the market's nervousness throughout most of the day, nearly hitting $68/bbl on hurricane concerns, crude oil futures ($66.13/bbl -$1.36) sold off sharply into the close of commodities trading amid an updated report that Hurricane Katrina may now miss the bulk of key oil platforms in the Gulf...

But it was not enough to eclipse the first decline in consumer sentiment in three months and a warning from Fed Chairman Greenspan that a recent rise in asset (i.e. stocks, homes) prices suggests an increased determination by investors to accept risk... Within minutes after the market opening slightly lower, investors got a final read on University of Michigan Sentiment, which checked in at 89.1, below forecasts of 92.5 and July's final read of 92.7, pushing the market down for good...

Even though the sentiment data do not correlate well with spending and the economy overall remains strong, the high gasoline prices (which rose to a record of $2.65/gal last week) behind the decline in sentiment weighed heavily on investors' psyches, as every economic sector closed lower amid a typically light volume Friday in late August... Pacing the way lower was Energy, as oil prices closing down 2.0% prompted participants to lock in some of the sector's 27.5% year-to-date gain... One sector merely adding to its 2005 disappointment (-4.8%) and acting as the most influential leader to the downside was Financial, as higher borrowing costs made interest-rate sensitive groups (i.e. brokers, banks) less attractive...

Even though Greenspan failed to mention the state of the economy or provide an update on monetary policy, bonds closed lower across the board in quiet trade, as the benchmark 10-year note finished down 7 ticks to yield 4.18%... Technology was weak across most areas, as losses in Semiconductor, Hardware and Networking aided the tech-heavy Nasdaq with its fourth consecutive weekly decline...

Consumer Discretionary was also under pressure, as cautionary words from Greenspan about a housing market "imbalance" prompted further profit-taking in Homebuilders - one of the few groups outperforming this year - while the larger than expected decline on August sentiment weighed on Retail... The PHLX Housing Sector Index has closed lower 16 out of the last 21 days and nearly 13% from its best levels... Investors also consolidated recent gains in Health Care and Utilities - the only other sectors to post gains in 2005...DJTA -0.8, DJUA -0.6, DOT -0.3, Nasdaq 100 -0.5, Russell 2000 -1.3, SOX -0.7, S&P Midcap 400 -0.9, XOI -1.2, NYSE Adv/Dec 992/2261, Nasdaq Adv/Dec 941/2050

[Roland99]

89. NASDAQ is -23.5% and S&P is -10.5% since * took office.

[54anickel]

82. Greenspan: Investments Won't Soar Forever

http://biz.yahoo.com/ap/050826/greenspan.html?.v=15

snip>

His warnings, made at a high-profile economic policy conference, came as the Fed chief and prominent economists pondered his 18 years at the central bank and the legacy he will leave. He is expected to step down in five months.

Rising house and stock prices have made many people feel more wealthy and have helped to support consumer spending, a key ingredient of the economy's good health.

Greenspan, however, said people shouldn't count on that paper wealth, which can evaporate if economic conditions deteriorate rapidly.

"What they perceive as newly abundant liquidity can readily disappear," he said. "Any onset of increased investor caution" could cause home and stock prices to drop, he noted.

more of the same.... - I just like the headline of this one. I cannot believe the market is doing as well as it is today considering his comments. Complacency or are the pixies doing some heavy lifting?

[CHIMO]

83. gearing up for a trade war

Nobody is watching this stew!

Feds won't back down on softwood
Canadian Press

Friday, August 26, 2005

WINNIPEG -- Federal cabinet ministers remained defiant and unwavering Friday in their tough stand against Washington over the softwood lumber dispute, dismissing a call from the U.S. ambassador to stop their "emotional" comments.

Industry Minister David Emerson said David Wilkins comments, made in an interview with the Ottawa Citizen's editorial board and published Friday, are hypocritical because they suggest Canada hasn't been serious about negotiating.

The minister said Canadians may need to start gearing up for a trade war with the United States.

"Candidly, Canadians have to decide as a small trading economy, are we going to stand together?' Emerson said at that start of a federal cabinet meeting in Winnipeg.

http://www.canada.com/national/nationalpost/news/story.html?id=c5c3feeb-353c-4bb5-b84c-2de8c6906856

[daleo]

86. Well, that fell off a cliff.

I though 10,500 was some sort of psychological barrier, but I guess that went out the door.

[54anickel]

88. Looking at the 1 year chart, we've been in and out that revolving door

all year.

http://finance.yahoo.com/q/bc?s=%5EDJI&t=1y

[daleo]

90. You're right, I forgot about the big April plunge.

I don't know if round numbers really matter, but one tends to focus on them.