STOCK MARKET WATCH, Tuesday 6 June

[ozymandius]

Tuesday June 6, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 960 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1991 DAYS
WHERE'S OSAMA BIN-LADEN? 1691 DAYS
DAYS SINCE ENRON COLLAPSE = 1652
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 6
Other Arrests of Execs = 54


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




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

AT THE CLOSING BELL ON June 5, 2006

Dow... 11,048.72 -199.15 (-1.77%)
Nasdaq... 2,169.62 -49.79 ( -2.24%)
S&P 500... 1,265.29 -22.93 (-1.78%)
Gold future... 648.70 +7.70 (+1.19%)
30-Year Bond 5.12% +0.02 (+0.45%)
10-Yr Bond... 5.03% +0.03 (+0.64%)






GOLD, EURO, YEN, Loonie and Silver


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Rob Kirby

TALL TALES OF TWO TRADERS

In case you have not been paying attention, the chart below clearly shows how precious metals have been ‘taking it on the chin’ for the past couple of weeks:

-cut past chart-

But What’s Really Going On?

With many in the main stream financial press chiming in with views that precious metals and commodities are “bubbles waiting to burst” – it seemed appropriate to examine some of the major undercurrents affecting price movements in precious metals, and gold in particular.

If we are to believe the axiom that actions speak louder than words, we might choose to take note of Goldman Sachs’ growing short position in gold futures on the Tokyo Commodities Exchange (TOCOM) – where we would discover that Goldman is ‘net short’ in excess of 46 thousand contracts, with their entire short position split between the Feb. 07 and April 07 contract. The short position alluded to represents a reduction from well in excess of 50 thousand net short a few weeks ago. Put simply, Goldman has been covering shorts (buying) on TOCOM while the price has been dropping.

-cut-

I would suggest – given the highly political nature of anything associated with gold – that flows of new money into this sector that are eight times the rate originally thought – are and most certainly never were below the radar of either UBS or Goldman Sachs. What I do find utterly reprehensible – is that this information has been KEPT OUT of the mainstream financial press.

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

[ozymandius]

2. Oil prices fall to $72.60 a barrel

SINGAPORE - Oil prices dipped Tuesday amid signs that crude supplies remain adequate for now, but analysts said concerns about possible disruptions in global oil flows will keep prices at current levels.

"Until we see signs of real change in demand, pricing will generally stay in the low-70s (per barrel) range," said Victor Shum, energy analyst with Purvin & Gertz in Singapore. "It will take a rather big supply disruption, either actual or perceived, to push prices to $75."

He said the factors that brought prices to this level — including geopolitical concerns in Iran and Nigeria, and unchanged output by OPEC — remained, and so the prices probably would remain steady.

more

[ozymandius]

4. Can oil companies handle more storms?

HOUSTON – While the US Army Corps of Engineers scrambles to defend the Gulf Coast against hurricanes on land, oil companies are preparing to avoid the havoc that last year's big storms wreaked offshore.

They are fortifying mobile platforms and drilling rigs, putting backup communications systems in place, and working out advance contracts with tug and helicopter services.

But a manpower shortage is hampering these efforts. The shortage is so acute that many companies are still working on last year's equipment failures. Nine months after hurricanes Katrina and Rita moved through, 21 percent of the Gulf's oil production and 13 percent of its natural-gas production remain offline.

Even more disconcerting to consumers is that oil and natural gas prices could rise even higher if another strong storm hits the Gulf.

http://www.csmonitor.com/2006/0606/p03s03-usgn.html

[ozymandius]

13. UPDATE 4-IATA lifts airlines loss forecast to $3 bln

PARIS, June 5 (Reuters) - Global airlines forecast bigger than expected 2006 losses on Monday as their industry leaders clashed with governments, airports and oil firms over the remedy needed for high oil prices.

Industry lobby group IATA said it was lifting its estimate for global losses to $3 billion in 2006 from a previous estimate of $2.2 billion as fuel woes outpace cost-cutting efforts.

The figure is still below the loss of $3.2 billion for 2005 but IATA Chief Executive Giovanni Bisignani told the group's annual meeting in Paris that risks remained and the industry had done everything it could to slash costs.

"Oil is the wild card. Prices are racing ahead of efficiency gains and robbing our profitability," he said in a speech on the state of the industry.

more

[UpInArms]

54. July Crude @ $71.65 bbl - July NatGas @ $6.35 mln btus

10:10 AM ET 6/6/06 JULY CRUDE FALLS 95 CENTS, OR 1.3%, TO $71.65/BRL IN NY

10:10 AM ET 6/6/06 JULY NATURAL GAS DOWN 11.3 CENTS, OR 1.8%, AT $6.35/MLN BTUS

[Ghost Dog]

68. Tokyo gov't, Sharp jointly bid for solar power generation project

http://asia.news.yahoo.com/060606/kyodo/d8i2lito2.html

(Kyodo) _ The Tokyo metropolitan government and Sharp Corp. have jointly applied to construct one of Japan's largest solar power generation systems as part of a research project by the New Energy and Industrial Technology Development Organization, Tokyo government sources said Tuesday.

Earlier this month, Mitsubishi Heavy Industries Ltd. and Nagasaki Prefecture announced a similar joint bid and NEDO, a government-affiliated agency, is expected to select the winners of the contract by mid-July.

Plans by the Tokyo government and Sharp call for setting up a power plant with an output capacity of 7,000 kilowatts or more on reclaimed land off the coast of Koto Ward.

The electricity is to be transmitted to Tokyo Electric Power Co. to assist in the power utility's operations.

NEDO wants to perfect eco-friendly technology for solar power generation, whose output tends to fluctuate depending on the amount of sunshine available. The organization is spending 10 billion yen on the project over the next five years through 2011.

Mitsubishi Heavy and Nagasaki Prefecture also plan a 7,000-kW facility in the prefecture's city of Omura.

/bit more...

[UpInArms]

107. DOE proves it has Head-Up-Ass Syndrome

1:15 PM ET 6/6/06 ENERGY DEPT.: CRUDE SPOT PRICE TO AVG $68/BRL FOR '06, '07

1:15 PM ET 6/6/06 ENERGY DEPT.: NATURAL-GAS SPOT PRICE TO AVG $7.74 FOR '06

1:15 PM ET 6/6/06 ENERGY DEPT.: '06 WORLD OIL DEMAND GROWTH AT 1.7 MLN BRL/DAY

Wow! $68 bbl for '06 and '07!

Let's :party: for the night is young! :sarcasm:

:wtf:

[UpInArms]

115. July Crude @ $72 bbl

1:32 PM ET 6/6/06 JULY CRUDE DOWN 60 CENTS AT $72/BRL, BUT OFF $71.35 LOW

[stop the bleeding]

124. hmmmm n/t

[UpInArms]

126. July Crude closes @ $72.50 bbl - NatGas @ $6.385 mln btus

2:57 PM ET 6/6/06 JULY CRUDE FALLS 0.1%, ENDS AT $72.50/BRL AFTER A $71.35 LOW

2:52 PM ET 6/6/06 JULY NATURAL GAS FALLS 7.8 CENTS TO CLOSE AT $6.385/MLN BTUS

[DianaForRussFeingold]

3. 30 year fixed Mortgage rate is 6.66 %

USATODAY.com - Mortgage demand dips as 30-year rate hits 4-year .Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.66%, ... Mortgage demand dips as 30-year rate hits 4-year high of 6.66% ...http://www.usatoday.com/money/perfi/housing/2006-05-31-mortgages_x.htm :crazy: :rofl: :rofl:

[Nimrod2005]

5. OMG!

It is a sign?

[DianaForRussFeingold]

9. Yeah,666 , try and play that lottery number!

Probably sold out! They only take so much on any number combination.:kick:

[ozymandius]

8. And that's for today? 06-06-06?

:rofl:

[Paulie]

15. It's MARKETING! The new Omen re-make comes out today.

http://www.apple.com/trailers/fox/theomen/

Product placement is everything now days. Darn media corporations will do whatever it takes....

:D :hi:

[Roland99]

31. BWA HA HA HA HA HA HA HA HA HA HA!!

[ozymandius]

6. Bernanke jolts markets over inflation

WASHINGTON - Federal Reserve Chairman Ben Bernanke is promising that the central bank will remain vigilant in fighting inflation. The comments sent shock waves through financial markets hoping the Fed was about to call a cease-fire on interest rate increases.

Instead, Bernanke's comments are likely to mean further increases in borrowing costs for consumers on their home and auto loans and credit card debt and for small businesses trying to raise money at their local bank.

The comments to an international monetary conference on Monday were exactly the opposite of what Wall Street was expecting.

Investors had grown hopeful that a slew of slower-than-anticipated economic reports, including a shockingly small 75,000 job increase last month, would persuade the Fed to call a halt to further rate increases.

more

[UpInArms]

24. Fed's Poole (The "Tool"): slowing economy won't reduce inflation

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-06-06T122043Z_01_N06372169_RTRIDST_0_ECONOMY-FED-POOLE-URGENT.XML

NEW YORK, June 6 (Reuters) - If inflation expectations are rising, a slowing economy may not reduce inflation pressures, said St. Louis Federal Reserve President William Poole, quoted in the Wall Street Journal.

"If inflation turns out to exceed our expectations, our target range, I do not believe we can count on a slowing economy to bring inflation down, by itself, quickly," Poole, said in an interview with the Wall Street Journal published on Tuesday.

Treasury yields -- which move inversely to their prices -- rose after the report.

[UpInArms]

27. US rate futures lean to June Fed hike after Poole

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-06-06T123248Z_01_N06310631_RTRIDST_0_MARKETS-FEDFUNDS-URGENT.XML

NEW YORK, June 6 (Reuters) - U.S. short-term rate futures showed a sharply higher chance of a Federal Reserve interest rate hike at its June meeting on Tuesday after a Federal Reserve official warned that if inflation expectations are rising, a slowing economy may not be enough to reduce inflation pressures.

"If inflation turns out to exceed our expectations, our target range, I do not believe we can count on a slowing economy to bring inflation down, by itself, quickly," St. Louise Federal Reserve President William Poole said in an interview with the Wall Street Journal published in online editions on Tuesday.

Fed Fund futures <FFN6> fell sharply following the interview, showing investors place a higher probability of a rate hike when the Federal Open Market Committee meets on June 28 and 29. The contract showed a probability of an increase rose to 82 percent, its highest level yet, from 72 percent late on Monday.

[Paulie]

38. Smells like Stagflation

Brought to you by the Bush Regime, makers of torture, death and destruction. Now with extra inflation. Joy Joy

[UpInArms]

41. Most inflation is a by-product of currency devaluation - caused by

the use of the printing press, or in the days of the Roman Empire, when they would continually make their coins hold less and less in the way of valued metals - soon, the coins were merely iron and basically worthless - and the need for more and more of those coins to pay for goods overwhelmed the abilities of most citizens.

[Ghost Dog]

85. These days they're not even printing, much. Gone Digital:

:rofl:

(why is there still no 'smilie' for rolling over on the floor crying?)

[UpInArms]

43. Printing Press Hums: Fed adds reserves via two-day system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-06-06T133215Z_01_N06342480_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, June 6 (Reuters) - The Federal Reserve on Tuesday said that it was adding temporary reserves to the banking system through two-day system repurchase agreements.

Fed funds were trading at 5 percent, the Fed's target for the benchmark overnight lending rate, at the time of the operations.

For further details on the operation, see http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

55. Realtor trade group's chief economist says Fed should pause

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B59A37BFA%2D660B%2D4F08%2D8350%2D5C38AEC40140%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- The Federal Reserve should pause from its steady path of interest-rate hikes because some housing markets are becoming vulnerable to correction, said David Lereah, the chief economist at the National Association of Realtors. "his is a time for the Fed to pause on rate hikes because we have some interest-sensitive housing markets that have become vulnerable," Lereah said. The NAR says 2006 will be the third highest on record. Lereah forecasts existing-home sales will drop 6.8% to 6.60 million this year from the record 7.08 million in 2005. The national median existing-home price for all housing types is forecast to rise 5.3% this year to $231,300.

"Chopper" Ben's probable reply:

Who cares what you think?

[Ghost Dog]

87. Pssst: Wanna make a quick 18.5% on treasuries?

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060606:MTFH81866_2006-06-06_10-21-34_IST000295&type=comktNews&rpc=44

ISTANBUL, June 6 (Reuters) - The Turkish Treasury on Tuesday sold a net 881.3 million lira ($564 million) in an auction of a 371-day discount bond at an average yield of 18.59 percent, central bank data showed.

Including non-competitive sales ahead of the auction, the total volume was 1.450 billion lira compared with a forecast maximum of 1.5 billion. In a Reuters poll of 10 banks, the average yield was predicted to be 18.44 percent.

/...

Nb. World Bank sees Turkish mkt volatility continuing
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060606:MTFH86647_2006-06-06_13-15-28_IST000296&type=comktNews&rpc=44

ANKARA, June 6 (Reuters) - The World Bank expects Turkey's markets, which have tumbled since early May, to remain volatile over the next couple of months but it does not expect this to result in a crisis, the bank's Turkey representative said.

Andrew Vorkink, the World Bank's country director in Turkey, told reporters on Tuesday financial markets were overreacting to the current situation and said Turkey's economic fundamentals were "correct".

/... Thus, for example, Turkey; thither the USA?

[54anickel]

113. Emergency meeting on Turkish currency

http://news.yahoo.com/s/ft/20060605/bs_ft/fto060520061402111743;_ylt=Ao0EiWiukIaKplRf9foIcMD2ULEF;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

Turkey's central bank will hold an emergency meeting on Wednesday to try to halt a slide in the country's currency that has presented the biggest challenge to the religious-based government since taking office in 2002.

The bank is expected to raise interest rates for the first time since July 2001 after a sustained sell-off in the Turkish lira and rising inflation threw its monetary policy into disarray. Turkey has been among the hardest hit emerging markets during the past few weeks of global financial turbulence.

The run on the lira adds to the government's domestic woes amid increasing signs of political polarisation in the run-up to next year's general election.

Analysts said the bank was left with little choice but to act after appearing to be losing its battle with inflation. The lira continued a sustained slide on foreign exchange markets yesterday before recovering in late trading. Stocks also fell.

snip>

The probable rise in interest rates will dismay the government, which has been banking on continued falls in interest rates and a booming economy ahead of next year's general election. The government is already under fire from Turkish business leaders for slowing reforms and pursuing a religious agenda.

more...

[girl gone mad]

142. Which is the appropriate reply..

considering all of the cheer-leading Learah has been doing. Learah has continued to deny that there is any real estate bubble and has been pushing the "soft landing" scenario, right up until today. Now he's crying to the fed about weak spots?

For encouraging the public to take on reckless amounts of debt, Learah is almost as guilty as Greenspan. The best thing Bernanke could do is rip the band-aid off fast, rather than leave us to suffer a Japan style continual 15+ year decline.

[UpInArms]

72. FedHead Spew: Bies/Lies

11:15 AM ET 6/6/06 BIES URGES BANKS TO HAVE SOLID PLANS FOR DISASTERS

11:15 AM ET 6/6/06 WEAKENING REAL ESTATE UNDERWRITING WORRIES FED, BIES SAYS

Are we expecting "disasters" (plural?)

on edit:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BAAF520CB%2D0101%2D4B24%2DBF42%2D868224CB7177%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- Underwriting standards for commercial real estate lending by banks is on a downward trend and is a cause for concern, Federal Reserve Gov. Susan Bies told a bankers' conference Tuesday. "We have noticed some slippage recently," Bies said in prepared remarks to the conference. She said underwriting standards haven't fallen on a broad scale. Banks should monitor performance of individual loans and loans in the same markets, Bies said. In the same speech, she urged bankers to have plans in place for potential weather or terrorist-related disasters. She didn't mention monetary policy or interest rates in the speech.

[mojavekid]

101. The Daily Pfennig 6/6/06: A New Mr. Tough Guy!

http://www.kitcocasey.com/displayArticle.php?id=762

A New Mr. Tough Guy!

Good day... Well... Have you been following all the coverage of the fact that today is 06-06-06? Much ado about nothing... Tomorrow will be 06-07-06...

OK... I've got to get to the Big Ben Bernanke 3-ring circus yesterday, because he really threw a cat among the pigeons with his tough talk. Big Ben came out firing from both sides yesterday regarding inflation, and how he thought rising inflation indexes were "unwelcome" and that the Fed would make certain that they are "not sustained"...

Oooh... Mr. Tough Guy! Look... The media and traders might have taken this bait and run, but what they forgot was the hook was in their mouths... And that hook is the fact that Big Ben is just about out of rabbits he can pull out of his hat, and he was out to correct the thoughts (that he brought on himself) that he would not be a tough inflation fighter... So, he came out firing and when the smoke cleared, the dollar was rallying...

Never mind the fact that before he talked about inflation pressures, he admitted that the economy was slowing down... Doh! Of course it is! We've been hiking interest rates for two years... And what did they teach you in Economics 101? That interest rate hikes take about 12-18 months to fully work into the fabric of the economy. So... Two years ago, we started at a base of 1%... And it took 2 years to get to where we are now... So if the economy has already shown signs of slowing down, as Big Ben and the recent data reflects, then imagine the state of things to come!


a little more at link...

[UpInArms]

106. Treasury yield curve inverts on Fed rate hike outlook - Recession ahead?

or will they try to say this is another "anomoly"?

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-06-06T164231Z_01_NYG000244_RTRIDST_0_MARKETS-BONDS-URGENT-UPDATE-3.XML

NEW YORK, June 6 (Reuters) - The yield on the two-year Treasury note briefly rose above that of the benchmark 10-year note on Tuesday for the first time since March, as bond market participants stepped up bets the Fed would raise interest rates at the end of this month.

The 10-year note <US10YT=RR> was yielding 5.008 percent, while the two-year note, which responds closely to expectations for Fed interest rate moves, yielded 5.009 percent <US2YT=RR> according to Reuters data.

This shift inverts the so-called "yield curve", or gap between yields on short-dated and long-dated U.S. government bonds. The curve is normally positively sloped, with longer maturities yielding more than shorter ones. In the past, an inverted curve has sometimes been a harbinger of economic downturns or recessions.

Since they proclaimed "economic downturn", will they admit to "recession"?

[UpInArms]

123. U.S. can manage current account deficit: Quarles

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B0E37C786%2D355D%2D42C5%2D8EA5%2DDA66895F76D1%7D&symbol=

WASHINGTON (MarketWatch) -- The United States is capable of maintaining a "sizable" current account deficit for a longer period of time than other countries, a top U.S. Treasury official said Tuesday, telling a bankers' conference the country's economy is in good shape.

In remarks to an international banking conference, Treasury Undersecretary for Domestic Finance Randal Quarles also defended the U.S. economy from arguments that the country's debt is overly burdensome.

"It would appear hard to argue that our debt is currently an unsustainable burden of any sort," Quarles said in prepared remarks.

"It is in fact relatively modest compared to our country's , compared to our capacity to service the interest, compared to our own historical practice, and compared to the rest of the world's advanced economies," he said.

...more spew at link...

[UpInArms]

127. FedSpew: Hoenig attempts to fix Poole the Tool's Verbal Gaffe

3:03 PM ET 6/6/06 HOENIG SAYS INFLATION SHOULD TAPER OFF AS GROWTH SLOWS

3:00 PM ET 6/6/06 HOENIG SAYS MONETARY POLICY IN NEUTRAL RANGE

3:00 PM ET 6/6/06 FED'S HOENIG: SEES GROWTH MODERATING AS YEAR PROGRESSES

[ozymandius]

7. Sharp opening losses for Europe

European equity markets endured sharp opening losses on Tuesday following overnight declines on Wall Street and Asia, prompted by a warning from Ben Bernanke, chairman of the Federal Reserve, on the need to remain vigilant on inflation in spite of signs of slowing economic growth.

The FTSe Eurofirst dropped 14.3 points or 1.1 per cent to 1,291.31 while the German Dax lost 63.6 points or 1.1 per cent to 5,553.2 and the French CAC 40 fell 57.2 points or 1 per cent to 5,704.9.

In London, the FTSE 100 fell 64.8 points or 1.1 per cent to 5,697.3, weighed down by a weak performance from the mining sector.

more

[ozymandius]

10. Nikkei falls on US rate concern, exporters drop

TOKYO (Reuters) - The Nikkei fell 1.81 percent on Tuesday to its lowest close in more than four months as exporters such as Fanuc Ltd. (6954.T) and Honda Motor Co. Ltd. (7267.T) sank on renewed concerns about higher U.S. interest rates and a possible economic slowdown in a key export market.

Weak performances in India (^BSESN - news) and other Asian markets weighed on Japanese stocks, analysts said.

Sony Corp. (6758.T) was lower despite its announcement of a plan to launch a digital single-lens reflex camera, while shares of real estate and brokerage firms lost ground as investors took profits.

"The focus is the United States, and investors cannot be confident about her economy," said Kazuhiro Takahashi, general manager of the equity planning and administration department at Daiwa Securities SMBC Co. Ltd.

more

[ozymandius]

11. India's benchmark index drops 3.2 percent

BOMBAY, India - Indian shares tumbled Tuesday, with the benchmark index dropping as much as 3.2 percent and slipping below the 10,000 mark as investors reacted to declines in global markets and a hike in domestic fuel prices.

The 30-company benchmark index of the Bombay Stock Exchange, the Sensex, fell 328 points to as low as 9,885 in early trading. On the rival National Stock Exchange, the 50-share S&P Nifty index slipped 107 points, or 3.5 percent, to 2,910.

The drop follows a 2.3 drop in the Sensex on Monday and continues the market's slide since early May. Investors were edgy due to steep drops in U.S. and Asian markets, like Japan.

more

[Nimrod2005]

12. I am really worried about all foreign markets dropping like this...

There is a breakdown in confidence for sure...

[fasttense]

16. Don't worry, I'm sure the PPT will step in

to prevent any further declines. :sarcasm: I mean we almost lost 2% in the DJIA in one day. Was it Ozy who pointed out that the DJIA never drops over 2% in one day?

I'm not much of an economist, I didn't even know what the DJIA was until I started reading all you smart folks here on Ozy's daily Stock Market Watch, but I'm starting to think the last half of 2006 and 2007 is going to be horrible for the US economy.

[Ghost Dog]

65. SE Asia Stocks-Fall on U.S. interest rate fears

http://asia.news.yahoo.com/060606/3/2ljpp.html

SINGAPORE, June 6 (Reuters) - Southeast Asian markets fell on Tuesday on concerns about higher U.S. interest rates, with blue-chips such as Jardine Matheson Holdings Ltd. and Keppel Corp. leading declines in Singapore.

The Straits Times Index fell 0.72 percent, Malaysian stocks shed 0.69 percent and Indonesian stocks dropped 2.38 percent.

<snip>

Markus Rosgen, Hong Kong-based equity strategist at Citigroup, said that last week alone, Asian funds saw redemptions of more than $1 billion, adding that investors should cut their exposure in Asia as the markets are overheated.

"Sentiment towards Asia and Asian assets is exceedingly high. Too many people are too bullish on the region," Rosgen said.

In Singapore, conglomerate Jardine Matheson Holdings Ltd. led the declines, falling 4.2 percent on investor concerns that higher interest rates could hurt its earnings.

Diversified Asian business group Jardine Strategic Holdings , a holding company in the Jardine Matheson group, dropped 4.4 percent.

<snip>

Neptune Orient Lines (NOL) , the world's sixth-biggest container liner, fell 6.0 percent to levels last seen in July 2004, as investors worried about a faster-than-expected downturn in the shipping industry.

"We think that the deceleration in the freight trends are faster than the markets have anticipated," said Ong Seng Yeow, Kelive Singapore research head.

/more...

[Ghost Dog]

70. Margin stock buying in Japan down for 3rd straight week

http://asia.news.yahoo.com/060606/kyodo/d8i2jon02.html

(Kyodo) _ Margin buying on Japan's three major stock exchanges fell for the third straight week, the Tokyo Stock Exchange said Tuesday.

The combined balance of shares bought on credit as of June 2 came to 5,283.05 billion yen, down 414.70 billion yen from a week earlier, according to data collected at the Tokyo, Osaka and Nagoya bourses.

Margin selling increased for the first time in three weeks, with the balance of shares sold short on the three markets totaling 1,562.56 billion yen, up 17.93 billion yen.

[Ghost Dog]

71. Japan gov't bond, futures prices fall on weak Treasury notes

http://asia.news.yahoo.com/060606/kyodo/d8i2ja6g0.html

(Kyodo) _ Prices of 10-year Japanese government bonds and bond futures fell Tuesday, tracking an overnight drop in U.S. Treasury note prices amid renewed speculations of further rate hikes in the United States.

In interdealer trading, the yield on the No. 280 1.9 percent issue added 0.060 percentage point from Monday's close to end the day at 1.920 percent.

The price of the key June futures contract for 10-year bonds fell 0.67 point to 132.84 on the Tokyo Stock Exchange, with the yield up 0.060 percentage point to 2.044 percent.

/...

[ozymandius]

14. Vonage sued as IPO a dud

Vonage, the Internet phone company whose shares have fallen 30% since their debut, was accused in a class-action lawsuit of violating securities laws and improperly selling shares to customers.

The suit was filed June 2 in U.S. District Court in New Jersey by South Carolina-based Motley Rice. On May 23, Vonage amended a May 22 filing and repeated a warning it may have made technical errors in its initial public offering, which raised $531 million.

http://www.nydailynews.com/business/story/423885p-357701c.html

[UpInArms]

32. from June 1: Vonage Holds Customers to IPO Pledge

http://www.topix.net/content/ap/1457682286071318443829140916551817341712

Ending speculation, Internet phone company Vonage Holdings Corp. said customers who agreed to buy into its initial public offering last week must follow through on their commitment to buy shares, even though they have fallen more than 29 percent in value.

Vonage had set aside up to 13.5 percent of its $531 million offering for customers, an unorthodox move aimed at increasing customer loyalty and creating publicity ahead of its IPO. That move backfired when the stock dropped almost as soon as it started trading.

IPO participants committed to buy the stock at $17 a share. On Thursday morning, the shares were trading at $11.96, down 6 cents, on the New York Stock Exchange.

Under the terms of the program allowing customers to participate in the IPO, 'if a customer was allocated shares in the Customer Directed Share Program, that customer is obligated to purchase their share allocation from the underwriters,' Vonage said in a statement late Wednesday. 'To be clear, we have not offered and are not offering to repurchase any of the shares of common stock from our customers.'

However, Vonage said in its prospectus that it has agreed to pay the banks that arranged its IPO for any losses arising from customers who refused to pay for their shares. That unusual provision helped fuel speculation, even though it may have been legally impossible for Vonage to buy back shares from one class of IPO investors to the exclusion of others.

...a bit more...

[UpInArms]

17. daily dollar watch

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

Last trade 84.47 Change +0.12 (+0.14%)

Dollar Rallies as Hawkish Comments from Bernanke Boost Rate Hike Expectations from 48% to 76%

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Dollar_Rallies_as_Hawkish_Comments_1149542661993.html

US Dollar

When Ben Bernanke was nominated to take over Greenspan’s job as Federal Reserve Chairman, the market had hoped that the clear speaking economist would give more transparency and stability to monetary policy. However, in the months since he has taken the job, the market is probably more confused than ever. The weak non-farm payrolls report on Friday had many traders and analysts convinced that there would be a pause in June. However, comments by Bernanke this afternoon in Washington have everyone once again rethinking the possible scenarios. To the surprise of anyone listening to the speech, Bernanke was fairly hawkish, focusing primarily on the buildup of inflation pressures and how they must be “vigilant,” a word the European Central bank used when they first embarked on their tightening policy. He downplayed the recent weakness in economic data by saying that we are entering into a period of transition and that the recent moderation in growth is “anticipated.” The harsh words by Bernanke bring back the possibility of a June rate hike. In fact, expectations for a quarter point rise at the end of the month has shot up from less than 50 percent (48 percent to be exact) before Bernanke started to speak to a whopping 76 percent. When a central banker is as hawkish as Bernanke and stresses the need to prevent against the increases in energy and commodity prices being permanently embedded in core inflation, we must listen. Even though this is simply delaying the inevitable end to interest rate hikes, it will certain give the dollar some breathing room. Service sector ISM dropped from 63.0 to 60.1 in May, which was slightly stronger than expected and still represents solid growth. The prices paid component jumped from 70.5 to 77.5, validating Bernanke’s fears of inflation pressures. For the remainder of the week, the US calendar is extremely light with the ECB monetary policy meeting the biggest event over the next few days. Bernanke’s comments have injected a bit of dollar bullishness going into the meeting, but with a lot of European economic data due for release from now until Thursday, expectations of whether the central bank will move by 25 or 50 basis points could either exacerbate or alleviate the Fed’s more hawkish stance.

Euro

The Euro has come under selling pressure after Bernanke’s comments this afternoon. ECB President Trichet, who spoke after Bernanke told the market explicitly that he would not be commenting on monetary policy given the proximity of their interest rate announcement. He was pleased that growth was moving towards their target and said that the Eurozone needed to work on their structural problems. Some Euro selling was seen after a closely followed newsletter for hedge funds predicted that the ECB would raise rates by only 25 basis points instead of 50. Even though some proponents have been calling for a half point hike, a quarter point move is really the more likely scenario. By raising rates by only a quarter point, the ECB leaves themselves ammunition for the months ahead. By raising 50bp in one meeting when global growth is at risk of decelerating could exacerbate the rise in the Euro and the sell-off in the financial markets, which would have negative repercussion for the region’s economy. Therefore it may be far more logical for the central bank to give themselves wiggle room by raising only a quarter point on Thursday and then remain hawkish, but reiterate that any future rate hikes will continue to be data dependent.

...more...

[Ghost Dog]

67. Daily Chinese yuan and money market update

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060606:MTFH82063_2006-06-06_10-32-52_YUAN&type=comktNews&rpc=44

SHANGHAI, June 6 (Reuters) - Following is a summary of market activity and news articles on Tuesday relating to the yuan and China's money market.

<snip>

-- One-year onshore yuan forwards were quoted at 7.8709 against the dollar, the China Foreign Exchange Trade System said on its Web site (www.chinamoney.com.cn), anticipating that the yuan would be 1.8 percent stronger in a year's time. Five deals in other durations were done by Tuesday's close.

<snip>

-day repo 90-day PBOC bill 1-yr treasury bond <CN7DRP=CFXS> <CN3MNFIX=R> <CN1YTFIX=R> June 6 1.7548 2.1250 1.8467 Change on day + 0.0096 + 0.0087 + 0.0156 Change on mth - 0.0376 + 0.1075 + 0.0623

* Change in weighted average and percentage point(s).

Please double-click on <CNFIXINDEX> for a full list of Chinese fixed-income reference rates.

OPEN MARKET ACTIVITY

The yield on the benchmark one-year bills sold by China's central bank rose to its highest level in more than 14 months on Tuesday, due in part to worries over liquidity in the market amid signs Beijing may take further steps to restrain bank lending.

/more...

[UpInArms]

82. dollar temporarily rescued at expense of stock markets?

Last trade 84.83 Change +0.48 (+0.57%)

Settle Time 15:00 Open 84.36

Previous Close 84.35 High 84.95

Low 84.08 2006-06-06 11:37:45, 30 min delay

[Ghost Dog]

93. I guess all that theoretical 'wealth' pouring out of intangible funds

(stock market) goes into the bit (not much) more tangible first-port-of-call of cash currency (USD in this case),thus increasing demand, driving up the price.

As you say, UIA, surely temporary: Next, what's trying to save itself, at least find a level, must flow somewhere else.., somewhere more tangible (and interesting)..?

[54anickel]

118. Poole the Tool seems to have succeeded in his verbal intervention

best hope he hasn't spooked the markets too badly. His tying slower growth and rising inflation might have been verbal overkill.

[UpInArms]

18. Airlines May Post $3 Billion of Losses on Fuel Costs

http://www.bloomberg.com/apps/news?pid=10000085&sid=a2mgRDbWdNxM&refer=europe

June 5 (Bloomberg) -- World airline losses in 2006 may reach $3 billion, 36 percent more than forecast in March, as rising oil prices outstrip the benefits of economic growth and higher ticket prices, an industry group said.

The International Air Transport Association, whose 261 members represent 94 percent of scheduled air traffic, had forecast a loss of $2.2 billion for the carriers.

``Oil is the wild card,'' said IATA Chief Executive Officer Giovanni Bisignani in a speech in Paris today. ``Prices are racing ahead of efficiency gains and robbing our profitability.''

The group's members as a whole haven't been profitable since 2000 when they earned $3.7 billion. The carriers lost $43.6 billion from 2001 through 2005, IATA said, dragged down by the Sept. 11, 2001, terrorist attacks on the U.S., severe acute respiratory syndrome, excess capacity and rising oil prices.

IATA, which is holding its annual meeting in Paris today and tomorrow, expects North American airlines to lose $5.2 billion in 2006. European airlines will probably earn $1.3 billion, while Asian carriers are now expected to earn $1.7 billion.

...more...

[UpInArms]

19. FCC Chairman: Too soon for net neutrality rules

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BD093217B%2DCCE6%2D42DE%2D947F%2D12395F413280%7D&symbol=

CHICAGO (MarketWatch) -- Federal Communications Commission Chairman Kevin Martin said Monday that it would be premature for the agency to issue rules on the doctrine of Net neutrality, which would prevent discrimination in the delivery of services over the Web.

Some consumer advocates have called for the FCC to impose conditions on Time Warner (TWX : 17.50, -0.08, -0.5% ) and Comcast's (CMCSK : 32.51, -0.86, -2.6% ) acquisition of bankrupt cable operator Adelphia Communications (ADELQ : 0.05, +0.01, +15.6% ) to make sure that content providers not owned by those big companies can get fair access over Time Warner and Comcast-owned networks, as well as their cable channel lineups. Comcast and Time Warner are the biggest cable companies in the U.S., with more than 35 million subscribers between them.

Martin's remarks on Monday seemed to indicate that he would not be in favor of such stipulations.

Martin, speaking during a question-and-answer session at the Globalcomm 2006 Conference in Chicago, said the commission already adopted a set of principles that reflect its thinking on the issue, one that it hoped would achieve a balance between two main ideas.

"Consumers need to be able to access all the content that's available over the Internet without being impeded by the access provider," Martin said. "But at the same time, we recognized that the people that are deploying these networks may offer differentiated speeds and differentiated products to the consumer.

"And if you offer different tiers of speeds, a consumer chooses the lowest tier, and he wants to access content that would require higher speeds than he has purchased, he's not being blocked from access. He just hasn't purchased the speed that's necessary."

...more...

[UpInArms]

20. Austrian Bank (BAWAG) to Pay $675 Million in Refco Case

http://www.nytimes.com/2006/06/06/business/worldbusiness/06refco.html?ex=1307246400&en=ca48cf8f9524daa8&ei=5088&partner=rssnyt&emc=rss

(free registration or try www.bugmenot.com)

Bawag PSK Bank of Austria will pay at least $675 million to avoid prosecution and to settle bankruptcy claims after admitting its role in the collapse of the commodities brokerage firm Refco, American authorities announced yesterday.

The bank, together with the Austrian Trade Unions Association, which owns Bawag, will forfeit $337.5 million to the United States, according to prosecutors and the Securities and Exchange Commission.

In return, federal authorities have agreed not to prosecute Bawag, the United States attorney in Manhattan, Michael J. Garcia, said.

The government will distribute half of the $337.5 million in forfeited funds to the Refco bankruptcy estate and half to victims of the Refco fraud, he said.

It was not immediately clear how the rest of the $675 million would be distributed.

The agreement included a statement from Bawag acknowledging that it assisted the former Refco chief executive, Phillip R. Bennett, in hiding hundreds of millions in losses from investors and creditors.

...more...

[54anickel]

21. Affluent Americans sour on real estate (but high on stocks)

In survey, one-third of wealthy respondents expect real estate decline during the next year.

http://money.cnn.com/2006/06/05/pf/affluent_attitudes/index.htm

NEW YORK (CNNMoney.com) - America's wealthiest have higher hopes for their stocks this year, but are worried about prospects for real estate, according to a survey released Tuesday.

Nine out of 10 wealthy portfolio holders said they expect their portfolios to rise in 2006, according to the 2006 U.S. Trust Survey of Affluent Americans. On average, they expect an 8 percent return from U.S. stocks.

Faith in the real estate market, however, was weak: Only 48 percent said they expect real estate's value to increase in the next year, down from 72 percent who thought it would in last year's survey.

Thirty-three percent of respondents expect real estate values to decline over the next year. That number is up from 14 percent who thought that last year.

snip>

Concerns about the economic future of the next generation topped the worries of the wealthy. Eighty-three percent of respondents listed this as their greatest concern, up 2 percentage points from the previous year.

more...

[UpInArms]

22. IBM to triple investments in India to six billion dollars

http://news.yahoo.com/s/afp/20060606/bs_afp/indiaustechnologycompanyibm

BANGALORE, India (AFP) - US technology giant IBM said it will triple its investments in India to six billion dollars over the next three years, recognising India's dominance in the global outsourcing industry.

"In the next three years, we will triple our investments in India from two billion dollars over the last three years to nearly six billion dollars," said Samuel Palmisano, chairman and chief executive officer of IBM.

"That investment will ensure that we make the most of the opportunities to grow this market place while it also enables IBM to fulfil its vision to become a globally integrated company," Palmisano told IBM employees in high-tech Bangalore city.

"India and other emerging economies are an increasingly important part of IBM's global success," he said. "I am here today to say that IBM is not going to miss this opportunity."

The investment will be mainly in the areas of research, software, hardware and computer services.

...more...

[CountAllVotes]

40. oh great

I'm using one of IBM's Lenovo ThinkPads right now. I've only had it a few months. I thought it was a dead horse last night. IBM does not make the product they once did, that is for sure. And now they are going to triple their investment in India to $6 billion. Great, just great.

And in the meantime, no more USA jobs either. :(

:dem: :kick:

[UpInArms]

42. Seeing this move of R&D to India is very disheartening -

no need for those engineering degrees - hope they are taking that marketing class that specializes in teaching the proper pronunciation of "Would you like fries with that?" in their re-education classes.

[CountAllVotes]

48. it makes me sick

One of the girls I went to high school with (one of the "brains") got a job working for IBM (this was many years ago admittedly) after she graduated from a private college.

She was real smart too, the kind of people IBM needs. They don't need people that aren't educated that cannot speak English very well. I'd never buy another IBM computer again and I used to be the biggest fan in the world of theirs. This Lenovo is unimpressive at best.

IBM shall become the victim of their own circumstances - selling out their once great American company to the Chinese and now, more jobs than ever in India while the American people have none. :grr:

:dem: :kick:

[54anickel]

47. Heh-heh, "IBM doe not make the product", period. eom

[Tempest]

144. IBM doesn't make hardware anymore

Lenovo is still using the IBM and ThinkPad names, but don't be confused in thinking it's an IBM computer. It's 100% Chinese now.

[UpInArms]

23. Sanyo expects hefty expense due to defect in mobile phone software

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BA91B1243%2D8C36%2D4C9A%2D969E%2D82BDB760F07C%7D&symbol=

TOKYO (MarketWatch) -- Japan's Sanyo Electric Co. (6764.TO) said Tuesday it will start repairing defective software in mobile phone handsets it now supplies for KDDI Corp.'s (9433.TO) "au" phone service, resulting in an expense of Y1 billion this fiscal year.

The Osaka-based electronics manufacturer said all 506,800 handsets of its "W32SA" model for the au service are subject to free repairs. It said defective software controlling battery recharging may shorten the length of use, causing the battery package to expand with heat. The battery package may occasionally crack, it said.

Sanyo Electric said users of these cellphones can bring the phones to KDDI shops for free repairs. They can also access KDDI's Web site to fix the problem by downloading a modified version.

Despite the Y1 billion in expenses, a Sanyo spokesman said the company is keeping its earnings outlook unchanged for this fiscal year ending in March.

The company has been struggling to revive its fortunes, hurt by falling prices of mobile phone handsets, digital cameras and other products.

...more...

[UpInArms]

25. Avon to Log Up to $12M in Layoff Charges (900 employees out the door)

http://www.chron.com/disp/story.mpl/ap/fn/3937833.html

NEW YORK — Avon Products Inc., the world's largest direct marketer of cosmetics, said it plans to log between $8 million and $12 million in charges before taxes for the layoff of certain employees.

Avon also said in the Securities and Exchange Commission filing that it expects to announce additional exit and disposal costs.

Late last month, the New York-based company said it will lay off more than 900 employees as part of its ongoing restructuring program. The company disclosed it would record charges of $25 million to $30 million as a result of the layoffs.

...more...

[UpInArms]

26. Gold falls as dollar gets Bernanke boost

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B1465DF0E%2DE3C1%2D4D89%2DAD06%2DDD6DF155E18F%7D&symbol=

NEW YORK (MarketWatch) -- Gold futures fell early Tuesday as the dollar moved higher against major rivals, after comments from Federal Reserve Chief Ben Bernanke on inflation were interpreted as signaling more interest rate hikes.

Gold for August delivery was last trading down $13.70 at $635 an ounce on the New York Mercantile Exchange. On Monday, the contract closed official trade higher amid concerns about a threat from Iran to disrupt oil supplies. But it later fell back in after-hours trade as Bernanke's comments triggered a sharp selloff across a number of markets.

Bernanke acknowledged that the U.S. economy is slowing but also strongly emphasized rising inflationary pressure and the Fed's commitment to fighting it.

In recent months, inflation "has reached a level that, if sustained, would be at or above the upper end of the range that many economists, including myself, would consider consistent with price stability and the promotion of maximum long-run growth," Bernanke said. These core readings "are unwelcome developments," he said. See full story.

...more...

[UpInArms]

50. August Gold @ $632.50 oz - July Silver @ $11.75 oz -July Copper @ $3.45 lb

9:53 AM ET 6/6/06 AUGUST GOLD DROPS $16.20, OR 2.5%, TO $632.50/OZ

9:53 AM ET 6/6/06 JULY SILVER FALLS 54.5 CENTS, OR 4.4%, TO $11.75/OZ

9:53 AM ET 6/6/06 JULY COPPER FALLS 15.1 CENTS, OR 4.2%, TO $3.45/LB

[UpInArms]

114. Gold closes @ $634.70 oz - Silver @ $11.845 oz - Copper @ $3.4895 lb

1:49 PM ET 6/6/06 AUGUST GOLD CLOSES AT $634.70/OZ, DOWN $14, OR 2.2%

1:49 PM ET 6/6/06 JULY SILVER FALLS 45 CENTS, OR 3.7%, TO END AT $11.845/OZ

1:49 PM ET 6/6/06 JULY COPPER LOSES 11.15 CENTS, OR 3.1%, TO END AT $3.4895/LB

[UpInArms]

28. Is this guy late to the party, or what? GM's CEO wants Japan named as

currency manipulator - LOL!

GM's Wagoner reportedly wants action on weak yen

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BA668F483%2D4A3D%2D49B6%2DB580%2D7E3D4E4FEBAE%7D&symbol=

General Motors Corp. (GM) chairman and chief executive, Rick Wagoner, criticized what he sees as Japan's interventionist currency policy, according to an interview in Financial Times Deutschland.

He demands that the U.S. government undertake action against what he views as the weak yen. He asked in the interview why the second most powerful economy in the world has to control its currency. Wagoner says the U.S. administration should tell Japan to leave its currency rate up to the markets.

[54anickel]

30. He must have recently finished reading about Lee Iococca's glory

days at Chrysler where he said something to the effect of "give me a cheaper yen...." I can't remember the exact quote. Old Lee not only got a gov't loan to help bail out Chrysler, but was also instrumental in pushing for the Plaza Accord. Quite the salesman.

Wagoner is a couple of years late, and his cries would fall on deaf ears since all that intervention was made with a wink and a nod from the US.

[UpInArms]

34. Maybe Waggoner should come out with the "L" Car

since "K" was used for Chrysler - it will be known as The Loser.

:rofl:

[54anickel]

46. Could just go right to the "W" - could stand for Waggoner or the

IdiotSon, either way it will be known as The Miserable Failure. :evilgrin:

[Ghost Dog]

95. Ford Prefect (or Popular)!

GM (Europe) Vauxhall/Opel whatever...

Hahaha! :-)

[UpInArms]

39. GM Blames Others: Sees tough market, cites commodity cost rises

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-06-06T132834Z_01_N06226709_RTRIDST_0_AUTOS-GM-URGENT.XML

WILMINGTON, Del., June 6 (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) faces a tough market, and rising commodity costs will make it "very difficult" for the world's largest car maker to meet a $1 billion cost savings target this year, GM Chairman and Chief Executive Rick Wagoner said on Tuesday.

"There will be some challenging months ahead on a total sales basis," Wagoner said as he updated investors on progress in GM's turnaround efforts at the start of the company's annual meeting.

Wagoner said a priority for GM management now was "maximizing" the success of buyout program on offer to its unionized work force and closing the sale of a majority stake in its finance arm, GMAC.

[UpInArms]

59. GM's Wagoner faces the music in Delaware

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B71471AE1%2D6CD2%2D43AC%2D843B%2D2A46FD37F819%7D&symbol=

SAN FRANCISCO (MarketWatch) -- General Motors Chief Executive Rick Wagoner took the podium at the automaker's annual meeting in Delaware Tuesday, walking shareholders through one of the most difficult years in the Detroit carmaker's history.

Early on, fireworks from the company were at a minimum compared with last year's meeting when GM (GM : 26.03, -0.02, -0.1% ) announced plans to cut at least 25,000 jobs by 2008 to generate $2.5 billion in annual savings. See full story.

"The goal of our turnaround is not just to fix GM for today, but to change GM for tomorrow," Wagoner said in his opening remarks.

And General Motors does need fixing.

In May, its share of the U.S. market fell faster than many industry observers had expected, down 3.1 percentage points from a year ago to 22.7%. This at a time its foreign rivals Toyota (TM : 105.70, -0.91, -0.9% ) and Honda (HMC : 32.46, -0.32, -1.0% ) both logged double-digit sales gains. See full story.

...more...

[54anickel]

29. The Gathering Pensions Storm

http://news.yahoo.com/s/bw/20060605/bs_bw/pi20060605907646;_ylt=AtxdBAm5baNDKkXsPJpK3FG1v0gC;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

snip>

Underfunded Boomers.
The underlying problem is demographics. The postwar baby boom was a phenomenon throughout the industrial world, and those babies born in the late 1940s and 1950s are approaching retirement. The leading edge of the baby boom is now turning 60, and we can expect the ratio of retirees to workers to rise. Those who are now paying into pensions will start collecting benefits, and there isn't enough money in the pot to pay the pensions promised.

The problem arose because companies, and especially governments, were willing to use pensions as part of employee compensation but discovered that they could get away with underfunding those pensions. In the corporate sector, legal changes (primarily the Employee Retirement Income Security Act of 1974) forced them to fund pension programs (though not always fully). Retiree health care and other postemployment benefits don't have to be funded at all, and as a result are virtually unfunded at many companies and by most states.

Asset Stretch.
A lot of nonsense is written about "the good old days" when everybody supposedly retired with a gold watch and a livable pension. The old days were never that good. When Social Security was proposed in the U.S. in 1933, the retirement age was set at 65 -- and average life expectancy was 63. Most people were not expected to live to collect, and historically most people worked until very near their death. Extended retirements are an invention of the last 50 years, and since life expectancy has increased and retirement ages have crept lower, people expect to spend more and more of their life in retirement .

Moreover, in "the good old days" most people never had a private pension. Even firms that had pension programs based them on seniority at retirement, so individuals who changed jobs frequently found themselves with little or no pension accrued. It was not unusual to see workers fired in their late 50s or even early 60s so that firms could avoid paying their pensions.

Today's system deals with some of these issues by allowing everyone to plan for their own retirement and by making pensions vest early. However, it creates a problem by forcing everyone to plan for their own retirement. Today's preretirement cohort -- the people now in the 55-64 age bracket -- have more assets than at any previous time, both in absolute terms and relative to their annual income. However, they also have more years to live in retirement, and thus often need more money than they have.

more...but probably not worth the effort to read it...obviously our memories of "the good old days" are clouded with inaccuracies :grr:

[54anickel]

33. Best Quotes of May 2006

http://www.dollarcollapse.com/iNP/view.asp?ID=31


Richard Benson, Benson's Economic & Market Trends
In order to fully understand what is really happening on the central bank front, Larry Summers is worth listening to, now that he is free of all the politics at Harvard. Mr. Summers who served in a series of senior policy positions – most notably as the secretary of the treasury of the United States – specialized in the currency markets. Indeed, he was “the man” who successfully engineered foreign central bank gold sales to help hold the price of gold down and make the dollar look strong!

Mr. Summers is now urging the poorer, smaller countries with excess dollar reserves, “to do something with them”. Perhaps his advice is to sanction foreign aid, but I suspect he may be encouraging these smaller central banks to swap out of dollars early before the big banks do. This would preserve the real value of their foreign exchange reserves, and save the IMF a lot of money down the road for not having to bail them out.

Just remember, when someone yells fire in the movie theatre, you want to be sitting in the back row near the exit door, so you can get out before it’s too late. Larry Summers has just yelled “fire”.


snip>


Doug Noland, PrudentBear
Marketplace perceptions dictate “The Moneyness of Credit” - or the faith in the underlying safety and liquidity of Credit instruments. For a list of reasons, I suggest that it is today basically impractical to identify, aggregate, or model contemporary “money” dynamics. There is no definitive “money supply.” Credit instruments change and the nature of Credit intermediation changes. Perceptions change - and do so subtly over time, as well as abruptly in real time. Importantly, during periods of rapid Credit growth and asset inflation, it will be the nature of the ebullient marketplace to accept an ever broadening scope (and risk profile) of Credit instruments and intermediation as “money-like.” “Repos” and asset-backed securities are these days some of the most coveted “money” in a way unthinkable just a decade ago.

more....

{Check out the Puplava quote on hyperinflation vs deflation probability - too long to post)

[UpInArms]

35. Sonoco raising recycled paperboard prices $40-$50/ton

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB616E8A7%2DC89F%2D4D96%2DA030%2D6EBB19A72809%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Sonoco (SON : 0.00, 0.00, 0.0% ) said Tuesday it will raise prices in North America for uncoated recycled paperboard by $40 to $50 a ton. The Hartsville, N.C., company said the price increase takes effect July 3.

[Tace]

44. This Is One Of Those Anecdotal Reports Pointing To Higher PPI

I've mentioned before that increases in packaging costs often precede increases in Producer Prices... and eventually, Consumer Prices.

[UpInArms]

36. United Tech to pay $283 mln to settle Defense Dept. dispute

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B55CB5886%2DB277%2D455A%2D9463%2D2785BC7083DA%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- United Technologies (UTX : 0.00, 0.00, 0.0% ) Tuesday said it's agreed to pay $283 million in a settlement of government contract accounting matters with the Defense Department. The Dow component said this settlement ends litigation related to the cost accounting of its Pratt & Whitney unit for engine parts on commercial engine collaboration programs from 1984 through 2004. United Technologies, based in Hartford, Conn., said the settlement amount exceeded reserves by about 5 cents a share, and it reaffirmed an outlook for earnings of $3.50 to $3.60 a share for 2006. The stock closed Monday at $61.45, down 2.5%.

[UpInArms]

37. pre-opening blather

09:15 am : S&P futures vs fair value: +4.2. Nasdaq futures vs fair value: +3.2.

09:00 am : S&P futures vs fair value: +4.5. Nasdaq futures vs fair value: +3.8. Even though futures are off their best levels, after St. Louis Fed President Poole warned in a WSJ interview that slowing growth may not be adequate to hold down actual inflation, indications continue to suggest that bargain hunters will step in and get stocks back on the buying track. The Dow is getting some help from Hewlett-Packard (HPQ), which raised its FY06 EPS guidance to reflect $0.15 settlement, while some relief on the commodity price front is also acting as a source of early support.

08:30 am : S&P futures vs fair value: +5.1. Nasdaq futures vs fair value: +5.0. Still shaping up for the cash market to recover some lost ground as futures indications continue to hold a positive bias. However, the absence of notable economic data and the earnings calendar similarly devoid of influential releases will leave investors plenty of time to keep talking about the Fed and whether or not central bankers will go too far with their tightening efforts.

08:00 am : S&P futures vs fair value: +4.4. Nasdaq futures vs fair value: +3.2. Futures versus fair value are signaling a modest rebound in the wake of yesterday's sizable sell-off. While a sense that sharp declines across the board were an over-reaction to Bernanke's surprisingly hawkish comments has improved early sentiment, the market may have to wait until next week's PPI and CPI data to validate the sustainability of a healing process that should start at the onset today but could lose some steam into the close like other reflex rallies of late have done.

[UpInArms]

45. 9:40 EST Wheels spinning

Dow 11,057.37 +8.65 (+0.08%)
Nasdaq 2,167.60 -2.02 (-0.09%)
S&P 500 1,266.36 +1.07 (+0.08%)
10-Yr Bond 5.038 +0.12 (+0.24%)

NYSE Volume 131,576,000
Nasdaq Volume 109,470,000

blather on edit:

09:40 am : Market bounces back a bit on the heels of Monday's broad-based drubbing as a sense that the sell-off was overdone renews some enthusiasm for equities. With the Dow closing at its lowest level in nearly three months, it is generating the bulk of buying interest, but gains remain modest at best, suggesting the early disposition is more reflexive than anything else as the Bernanke effect continues to influence trading in the absence of notable earnings and economic data to set a more definitive tone to trading.DJ30 +21.14 NASDAQ +2.45 SP500 +2.15 NASDAQ Vol 84 mln NYSE Vol 72 mln

[UpInArms]

49. 9:53 EST paper cuts abound - looking for the 10 o'clock bounce

Dow 11,042.96 -5.76 (-0.05%)
Nasdaq 2,161.23 -8.39 (-0.39%)
S&P 500 1,264.24 -1.05 (-0.08%)
10-Yr Bond 5.038 +0.12 (+0.24%)

NYSE Volume 252,174,000
Nasdaq Volume 216,502,000

[54anickel]

51. OT - The horrors really are your America, Mr Bush

http://www.timesonline.co.uk/article/0,,2092-2209636,00.html

‘This is not America.” Those words were President George W Bush’s attempt to explain the horrors of Abu Ghraib prison on the Arabic-language network Alhurra in 2004. He spoke the words as if they were an empirical matter, but a cognitive dissonance could be sensed through them.

If the men and women who tortured and abused and murdered at Abu Ghraib did not represent America, what did they represent? They wore the uniforms of the United States military. They were under the command of the American military. In the grotesque, grinning photographs they clearly seemed to believe that what they were doing was routine and approved.

And we now know from the official record that Donald Rumsfeld, the defence secretary, had personally authorised the use of unmuzzled dogs to terrify detainees long before Abu Ghraib occurred, exactly as we saw in those photos. Does the secretary of defence not represent America?

Almost two years after the torture story broke Congress finally roused itself and passed an amendment to a defence appropriations bill by John McCain that forbade the use of any “cruel, inhuman and degrading treatment” of detainees by any American official anywhere in the world. It was passed by veto-proof margins and Bush signed it. But he appended a “signing statement” insisting that, as commander-in-chief, he retained the right to order torture if he saw fit.

more...


The Way Americans Like Their War
http://www.counterpunch.com/fisk06032006.html

Could Haditha be just the tip of the mass grave?

The corpses we have glimpsed, the grainy footage of the cadavers and the dead children; could these be just a few of many? Does the handiwork of the United States' army of the slums go further?

I remember clearly the first suspicions I had that murder most foul might be taking place in our name in Iraq. I was in the Baghdad mortuary, counting corpses, when one of the city's senior medical officials, an old friend, told me of his fears. "Everyone brings bodies here," he said. "But when the Americans bring bodies in, we are instructed that under no circumstances are we ever to do post-mortems. We were given to understand that this had already been done. Sometimes we'd get a piece of paper like this one with a body." And here the man handed me a U.S. military document showing with the hand-drawn outline of a man's body and the words "trauma wounds."

What kind of trauma is now being experienced in Iraq? Just who is doing the mass killing? Who is dumping so many bodies on garbage heaps? After Haditha, we are going to reshape our suspicions.

It's no good saying "a few bad apples." All occupation armies are corrupted. But do they all commit war crimes? The Algerians are still uncovering the mass graves left by the French paras who liquidated whole villages. We know of the rapist-killers of the Russian army in Chechnya.

more...

[UpInArms]

52. The fish rots from the head down. ... eom

[UpInArms]

53. 10:09 EST No Bounce

Dow 11,026.31 -22.41 (-0.20%)
Nasdaq 2,159.38 -10.24 (-0.47%)
S&P 500 1,262.15 -3.14 (-0.25%)
10-Yr Bond 5.034 +0.08 (+0.16%)

NYSE Volume 389,706,000
Nasdaq Volume 326,727,000

10:00 am : Early recovery efforts are short-lived as sellers step back in where they left off yesterday pushing the bulk of industry leadership into negative territory. Pacing the way lower is Materials, as Bernanke's comments fostering a stronger greenback diminish the desire to own dollar-denominated commodities. Consumer Discretionary is also trading lower amid further consolidation in retail and homebuilding, with the latter under pressure after Wachovia downgraded PHM, KBH and DHI. General Motors (GM 25.61 -0.44) warning that it will have trouble cutting supplier costs by $1.0 bln this year due to higher raw material prices is also weighing on the sector. Health Care, however, is trading higher but merely clinging to a small gain as underperforming HMOs garner some early bargain hunting interest. DJ30 -15.50 NASDAQ -10.81 SP500 -2.38 NASDAQ Dec/Adv/Vol 1414/958/265 mln NYSE Dec/Adv/Vol 1181/1224/223 mln

[Roland99]

56. Nearing sub-11,000 for the Dow and sub-2,150 for the NASDAQ

[UpInArms]

57. 10:24 EST Dead Cat Bounce?

Dow 11,054.89 +6.17 (+0.06%)
Nasdaq 2,167.58 -2.05 (-0.09%)
S&P 500 1,265.77 +0.48 (+0.04%)
10-Yr Bond 5.032 +0.06 (+0.12%)

NYSE Volume 520,089,000
Nasdaq Volume 433,942,000

[wordpix2]

58. good time to buy up stocks at a bargain but who knows if this IS a bargain

[stop the bleeding]

61. yep - that cat is dead as hell

no bounce yet as of 10:49 am EST - DOW at -32.00

on edit - I have some Put plays on some symbols out of the housing sector that are screaming - making lemonade out of lemons ;)

[UpInArms]

60. Global junk bond default rate rises in May-Moody's

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-06-06T144133Z_01_WNA7442_RTRIDST_0_ECONOMY-DEFAULTS-MOODYS-URGENT.XML

NEW YORK, June 6 (Reuters) - The global junk bond default rate edged up slightly in May to 1.7 percent from 1.6 percent in April and will likely continue climbing over the next 12 months, Moody's Investors Service said on Tuesday.

The number of bond defaults was the highest in the last five months, with three corporate bond issuers defaulting, compared with four for the first four months of the year, Moody's said in a statement. May also saw the first default by a European corporate bond issuer in 15 months.

Moody's said it expects the default rate to climb to 3 percent by the end of May 2007.

[stop the bleeding]

62. AP - US to Give Iran Nuclear Tech ---- From kpete over in GD

http://news.yahoo.com/s/ap/20060606/ap_on_re_eu/iran_nuclear

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x1363313

[Buttercup McToots]

63. Gulp...

below 11,000

[Ghost Dog]

80. No comment... n/t

[UpInArms]

64. 10:59 EST 11,000 has been breached

Dow 10,998.62 -50.10 (-0.45%)
Nasdaq 2,155.88 -13.74 (-0.63%)
S&P 500 1,260.10 -5.19 (-0.41%)
10-Yr Bond 5.040 +0.14 (+0.28%)

NYSE Volume 750,792,000
Nasdaq Volume 618,133,000

10:30 am : Stocks bounce off session lows, as some influential sectors turning positive briefly lift the Dow and SnP 500 into the green; but the major averages continue to vacillate around the flat line. Notable areas now trading higher include Technology, Energy, Consumer Staples; however, without much in the way of market-moving news for investors to hang their hat on and sustain any sort of convincing rebound, limited gains are offering little in the way of significant leadership.DJ30 +3.13 NASDAQ +0.70 SP500 -0.82 NASDAQ Dec/Adv/Vol 1644/1011/458 mln NYSE Dec/Adv/Vol 2000/827/386 mln

[UpInArms]

66. 11:08 EST levees not holding

Dow 10,981.41 -67.31 (-0.61%)
Nasdaq 2,153.99 -15.64 (-0.72%)
S&P 500 1,258.77 -6.52 (-0.52%)
10-Yr Bond 5.038 +0.12 (+0.24%)

NYSE Volume 825,198,000
Nasdaq Volume 676,275,000

11:00 am : Market spikes to its worst levels of the morning within the last 30 minutes as the indices break through key technical barriers. The Dow, SnP 500 and Nasdaq have recently failed to find initial support near levels of 11030, 1260, and 2160, respectively. Eight of 10 economic sectors are posting losses while further deterioration in the influential Financials sector provides one of the biggest drags on early trading. Initially spurred by analyst downgrades on Fannie Mae (FNM 48.66 -1.36) and Freddie Mac (FRE 58.49 -1.61), sector weakness has been exacerbated by the spread between the 2-yr and 10-yr note tightening to 3.2 basis points -- the narrowest since early April. DJ30 -50.08 NASDAQ -14.05 SP500 -5.29 NASDAQ Dec/Adv/Vol 1728/999/632 mln NYSE Dec/Adv/Vol 1752/1174/536 mln

[UpInArms]

69. 11:12 EST DOW DROPS 100+

Dow 10,948.35 -100.37 (-0.91%)
Nasdaq 2,149.81 -19.81 (-0.91%)
S&P 500 1,256.13 -9.16 (-0.72%)
10-Yr Bond 5.038 +0.12 (+0.24%)

NYSE Volume 858,670,000
Nasdaq Volume 703,386,000

[Roland99]

73. NASDAQ nearing 2,147 support level. AAHOOGA!

Sound the alarms! Blow balast!

[stop the bleeding]

76. support ??? where ??

I am playing Puts left and right - we are going to be going down for a while. Next stops on the DOW 10850 and 10500, people better close up shop or do shorting plays cause here we go.

[UpInArms]

81. Nasdaq support levels:

9:59AM Nasdaq Composite moves to new session low (COMPX) 2159 -10.53 : The index weakened after a slightly positive start with it vacillaring near support mentioned in The Technical Take at 2160/2158. The next support of interest is in the 2150 to 2144 area. For this morning need to see a push back above 2168/2170 to begin to neutralize the negative bias.

[On the Road]

89. Even Before the NASDAQ Reaches Support

it appears to be breaking below the upward channel established over the last week or so. This while the index is still overbought:



That chart looked like a rally until this morning. I'm very gunshy about calling for a crash after getting burned more than once, but this is not a good graph. Luckily, after being on the wrong side recently, My IRA is 70% double-short in USPIX. Was going to sell this morning, but not after the last couple of hours. Might even make all those mistakes back this year. :)

[stop the bleeding]

94. you have that one day in late May where it touched the 2135 mark

if it falls past that then I think you have a confirmation of a downsidemarket.

I have been buying and selling Puts left and right this morning in the Housing sector and have been very pleased at their rate of appreciation.

[On the Road]

99. Yes, The Index is in Strangeville Now

It's between the lower short-term trendline and the support level. Have no idea if it will bounce. May sell half the short position (or all of it) at the 2135 mark.

The execution time for those short funds is a killer, though. When the market makes one of those big moves after 2PM, you're stuck in your position for more than a day. A lot can happen in that time. Do you know of any way to bet against the market in an IRA account with shorter execution times?

[stop the bleeding]

104. sorry

I only know of short term protective plays that invovle selling and buying options, both Calls and Puts, both covered and naked, most of the time they will be near, at or in the money plays. They get kinda crazy, so I really can't explain more than that, also I do not want to break any of the advice rules for this thread.

These next few days will be very telling where the market is going, but do this, pull up a chart of the DOW for the last 6 months or year - goto the last high(all time high) from just a little while ago, now goto the next lower high that was set before the all time high, now goto the current timeframe. Do you see it? there is a "head and shoulders" pattern forming on the DOW, if the current part of the chart of the DOW stays the same or goes down then we will have a confirmation of a DOWN market, but if the DOW breaks out of this second shoulder then we will have to wait and see where it settles.

My money is on the Head and Shoulders - or in other words a down market for the next several months.

[On the Road]

133. I Hadn't Noticed the Head and Shoulders

but it looks pretty clear from the Dow. It even meets the volume requirements:

Furthermore, the volume pattern must also meet strict requirements. Volume must show a peak on the left shoulder, a lower peak at the head, and then an even lower level at the right shoulder. One simple technique to determine whether the pattern fits is to draw a downtrend line on the volume chart. If the price pattern and volume line match, then you have identified a head and shoulders formation.

Using the range from the neckline to the head, that would mean a decline to at least the 10,500 range.

[stop the bleeding]

140. I see you chart as much as I do, and 10500 is what I said last night

to my buddy, I am also glad that you noticed the volume, people do not rely on volume enough in charting and trading in general. I would be glad to hear from you again in regards to anything that you see in the charts.

I am a short term trader so I rely mostly on Technical analysis.

Peace!

[Ghost Dog]

74. European shares down on interest hike worries

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060606:MTFH82573_2006-06-06_10-57-49_L06685172&type=comktNews&rpc=44

FRANKFURT, June 6 (Reuters) - European shares slid on Tuesday, led by miners, amid renewed fears of rising interest rates after Federal Reserve Chairman Ben Bernanke pledged to remain vigilant on inflation.

"I don't expect rising equity markets until autumn. We're now in a phase of uncertainty lasting two to three months," said Guenter Senftleben, a strategist at Bankgesellschaft Berlin.

Some investors were now worried the European Central Bank (ECB) might raise interest rates by 0.5 percentage points on Thursday instead of by 0.25 percentage points as expected by many economists after Bernanke's comments, he said.

By 1012 GMT, Europe's FTSEurofirst 300 index <.FTEU3> slipped 1.05 percent to 1,292.5 points. The benchmark has lost some 8 percent from near five-year highs on May 11 as global equities have been sold off on fears of rising interest rates and an economic and corporate slowdown.

"We are cautious on interest rate sensitive areas, as we believe inflation will cyclically pick up, forcing the Fed to deliver further rate hikes," JP Morgan said in a research note.

<snip>

The UK's FTSE 100 <.FTSE> fell 1.1 percent to 5,700, Germany's DAX <.GDAXI> was down 0.9 percent to 5,567.73 and France's CAC 40 <.FCHI> slipped 1.4 percent to 4,844.77 points.

<snip>

Senftleben said low trading volumes -- some 1.2 billion shares had changed hands in the FTSEurofirst 300 index -- showed many investors were holding their fire, uncertain what to do.

The biggest sector decliner was again DJ Stoxx basic resources <.SXPP>, slipping 3.1 percent after gold was hit by an initial dollar rise while copper dipped.

/more detail...

[Ghost Dog]

75. FTSE falls sharply but BAA, utilities outperform

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060606:MTFH81607_2006-06-06_10-06-47_IRE636426&type=comktNews&rpc=44

LONDON, June 6 (Reuters) - The FTSE 100 fell sharply on Tuesday, with weak mining stocks taking the heaviest toll on the market as concerns returned about the prospect of more U.S. interest rate hikes and the effect that may have on the world's biggest economy.

Jitters about the direction of monetary policy were revived after Federal Reserve Chairman Ben Bernanke pledged to remain vigilant on inflation and said growth in the world's biggest economy seemed to be moderating.

/more...

[Ghost Dog]

77. The Threat to Europe

http://asia.news.yahoo.com/060606/7/2lk1i.html

We often fail to recognize the benefits brought about by free trade and an open economy. This is particularly so in Europe, where the largely harmonized internal market is very much taken for granted.

When I became chief executive officer of Nokia (NOK) in 1992, the regulatory burden in Europe was much heavier than it is today. Europe was consumed with heavy taxes and duties, but we have come a long way since then. That progress has recently been threatened, however, by a rise in economic nationalism. This concerns me, as today more than ever, European nations need to work together to secure the levels of innovation and productivity companies need in global competition.

Recent examples of European economic nationalism abound, most often in the area of cross-border mergers and acquisitions. But it doesn't stop there. European countries face increased thresholds of difficulty in implementing commonly agreed legislation, and too easily drift apart on essential issues such as international trade. Sadly, many public figures think more of short-term political success than the longer-term necessity of unpopular decisions.

<snip>

Imposing populist sentiment against EU initiatives does not help Europe. Instead, political leaders should positively influence integrationist trends and work towards rallying support from their citizens for measures to strengthen the single market. National governments have to adhere to and maintain the original principles of the truly single market. Of course, broad agreement on unpopular measures in an expanded Europe of 450 million people of different backgrounds presents difficulties.

However, these difficulties are not insurmountable and must be overcome, as there is no better way to secure the future prosperity and competitiveness of Europe than to build a strongly integrated economic area. It is after all, the basis of existence for today's Europe as we know it.

/...

[Ghost Dog]

78. Europe has no alternative to Russian gas: Gazprom chief

http://asia.news.yahoo.com/060606/afp/060606134713eco.html

AMSTERDAM (AFP) - The chairman of Russian state-run gas giant Gazprom, Alexei Miller, told a world gas conference in Amsterdam that Europe does not have a real alternative to Russian gas if it wants to maintain economic development.

"There are only three countries capable of being a long-term supplier of gas: Russia, Iran and Qatar. When it comes to gas for the development of the European economy, there is no realistic alternative to Russia," Miller said.

"Objectively speaking, there is no disputing the geographical closeness of Russia and her European consumers, and the pipeline system supplying gas to Europe is the cheapest and economically the most efficient way of transporting that gas," he added.

<snip>

The Gazprom chairman said Tuesday that long-term contracts already signed would be honoured "one hundred percent", however.

/more...

[Ghost Dog]

79. Norway shuts Wal-Mart out of $240 bln fund

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060606:MTFH89551_2006-06-06_14-54-23_L06282027&type=comktNews&rpc=44

OSLO, June 6 (Reuters) - Norway said on Tuesday its more than $240 billion oil fund would no longer invest in Wal-Mart (WMT.N: Quote, Profile, Research), the world's largest retailer, due to what it called "serious and systematic" abuses of human and labour rights.

Norway's government also excluded shares in mining group Freeport-McMoRan Copper & Gold (FCX.N: Quote, Profile, Research) from the fund -- one of the world's biggest pension funds -- for environmental reasons.

The fund sold its holdings in both firms, which had been worth about $430 million at end-2005 -- most of it in Wal-Mart stock -- by the end of last month, the finance ministry said.

"These companies are excluded because, in view of their practices, investing in them entails an unacceptable risk that the fund may be complicit in serious, systematic or gross violations of norms," Finance Minister Kristin Halvorsen said in a statement.

The move raised the number of stocks excluded from the fund for what Oslo calls ethical reasons to 19. Norway has previously ejected companies involved in producing anti-personnel land mines, cluster bombs or nuclear weapons.

The Finance Ministry based the exclusions on the recommendations of the fund's ethical council.

/more...

[UpInArms]

83. 11:42 EST bleeding continues

Dow 10,942.19 -106.53 (-0.96%)
Nasdaq 2,146.61 -23.01 (-1.06%)
S&P 500 1,256.03 -9.26 (-0.73%)
10-Yr Bond 5.026 0.00 (0.00%)

NYSE Volume 1,038,154,000
Nasdaq Volume 850,842,000

11:30 am : The bottom continues to fall out of the market for a second day in a row as investors continue to fear the worst with regard to Fed policy after Bernanke's tough talk on inflation now puts the focus squarely on next week's influential PPI and CPI data. To wit, if the May core CPI comes in at 0.3% for a third consecutive month next Wednesday, the Fed Chairman will be pressured to raise rates for a 17th straight time at the June 29 meeting, regardless of the incoming economic data. As a result, the market is not likely to make a major move upward, as evidenced by this morning's inability to convincingly bounce back, until the interest rate outlook becomes clearer. DJ30 -87.09 NASDAQ -18.12 SP500 -6.97 NASDAQ Dec/Adv/Vol 2015/780/786 mln NYSE Dec/Adv/Vol 2236/761/678 mln

[nadinbrzezinski]

86. If it stays under 11,000 and it continues to bleed

this could prove interesting

[libnnc]

88. shudder

:scared:

[stop the bleeding]

91. I hope it keeps going down

stock go down about 66% faster than they rise - this is an awesome time to make money in the market, much quicker than when we were going long. I have been having a ball the last few days - especially in the housing sector some of those are going in the shitter.

[mike923]

100. Amen, now is a great time to buy!

Irrational actions by the masses make large fortunes for the wise few. Or something like that.

[Ghost Dog]

102. Feeding off the suckers, eh, stop the bleeding?

I hear you. Intelligent, totally within the rules of the game and perfectly OK, IMHO (while the majority (eg. pension funds) fiddles and burns up).

Are you your own (online) broker, or are you using a service, may I ask?

[stop the bleeding]

103. I use Optionsxpress for my online broker,

I use them because I play Options 99% of the time and I only hold them from 10 minutes to 10 days, this broker caters to option plays and combos. I make all of my own trades without any advice or help from a broker, however I get tons of advice from people who are quite good at this and have been doing it for over a decade.

The best information that I get is right here on the SMW thread this thing should have a fee charged for the amount of info these guys put out - KUDOS!!!

Besides this for info, I watch Bloomberg around the clock and read the IBD weekly edition.

today alone I have made over 20% on my plays by selling and buying Put Options in the housing sector, these are also ones that were going down even when the market was going up - so needless to say I have these ready to go for times like these.

[Ghost Dog]

116. Thaks for the information!

Thanks for the information
Never give a sucker an even break
When he's breaking through
To a new level of consciousness
There always seems to be more
Obstacles in the way
Thanks for the information I know
It's only a combat zone
Thanks for the memory,
I'll just have
To carry on on my own
Chorus:
And it's wonderful and it's marvelous
How we can ever make it through
Sometimes I wonder how we can ever
Make it from day to day
Thanks for the information
What you gain on the hobby horse you lose on the swing
I like mine over easy
And you can have your's sunny side up
I don't wanna quibble over insignificant details
And I've tried every trick in the book
Thanks for the information
I know I should look before I leap
Chorus:
And it's wonderful and It's marvelous
How we can ever make it through
Sometimes I wonder how
We can ever make it at all
Thanks for the information
Never give a sucker an even break
And with her everything light becomes heavy
And everything heavy becomes light
They took me down to the watering hole
Because I happened to mention I was dying of thirst
Then they told me he who believes first will be later
And he who believes later will be first
Chorus:
And it's wonderful etc etc....
Thanks for the information
Oh never give a sucker an even break
When you're on to something it's a
Dime in a dozen people start
Coming out of the woodwork
Thanks for the invitation
I know I must be on to something big
Everytime I take two steps forward
I end up having to take three back
Chorus:
And it's wonderful etc etc....
Thanks for the information
A bird in the hand is worth two in the bush
Every time I'm ready for a major breakthrough
I always have to think in terms of better of worse
Thanks for the information
Thanks for the memory

Van Morrison. http://lyrics.duble.com/lyrics/V/van-morrison-lyrics/van-morrison-thanks-for-the-information-lyrics.htm

[AnneD]

121. Belated Greetings Marketeers

:toast: I am still in Box Canyon but the move is almost complete and am here for a brief looks-ie. My my, the bears are out in full force and hungry after their long nap. A hungry bear is dangerous. No dumpster is safe, no door a barrier.

I miss a few days and all hell breaks loose in the market. I have had to rely on economic MSM which has been crap so I am grateful to get a little time with you guys. Stop the bleeding....I agree, the info I get from this thread has helped me and saved me $$$$ and I have learned so much.

I am lucky that the money from the part time job is kicking in. I love to accelerate my debt repayment. I am old fashioned and am wanting to get my hands on tangibles (preserved food, water, batteries, bicycles, camping gear cash on hand). It is the start of the hurricane season and you cannot have enough of this stuff.

I have said this and I will repeat it again. The feds have lied through their teeth about NOLA. The fact that the natural gas fields are still in such sorry shape this far past Katrina and Rita proves the point. Yesterday was the anniversary of hurricane Allison's hitting Houston. Until Andrew-it held the record as one of the most expensive hurricanes. If Houston takes a direct hit-the economy will take a terrible body blow and go down. Kiss the natural gas and US oil biz in the Gulf Coast good bye and the US will lose another productive port just for starters. I won't even get into the financial and business impacts. We are an international city so there will be reverberations. The good news is that we have a very efficient city government (the same could be said with the city gov. we had during Allison). We had a mass evac dry run last year and except for a few glitches, it went well. So I feel confident that we will do as well as you can.

I talked to a friend that is into the psychic-and he said the consensus among all the area psychics is that Houston's turn is coming up. If not this season, next year's season. I tend to feel the same way (I felt that way before Allison- just a gut feeling).

Happy hunting and watch out for the bears.

[stop the bleeding]

125. stay safe - I am here in Tampa on the other side of the Gulf :)

all it will take is one possible storm entering the Gulf and energy prices will surge - the storm doesn't even have to come our way, just the thought of it hitting the Gulf states will make energy investors do all sorts of buying and selling.

I check the price of oil everyday, you would be surprised to see how energy stocks move up and down with the price of oil.

Cheers and be safe and happy belated morning to ya! ;)

[Ghost Dog]

141. Hiya AnneD, Been missing you. Think first, Don't shoot!

Love,

Andrew. :-)

[AnneD]

146. Ghost Dog,

:rofl: I think Hubby was getting suspicious as to my plotting. He realized he was in the dog house so to speak for letting the cat out and not helping. He finished the rest of the packing and moving (but for a small amount). I managed to find the cat and we have kissed and made up. He's a good guy-it would take more than a move to make me off him. We tend to laugh about these things a few weeks after they happen. Traveling with him is always an adventure. My fav incident was him forgetting to get a ticket for me on the train from Paris to London. He just totally forgot that he was married and needed a second ticket. He is an absent minded musician (he never forgets the instrument and equipment-but he can forget the wife and kid). Lucky for him he married an American military brat-I can handle most things and I carry the money when we travel. I can take care of myself, thank you very much.

[UpInArms]

84. Washington Mutual sued for not paying overtime - paid less than min. wage

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-06-06T154350Z_01_N06378887_RTRIDST_0_FINANCIAL-WASHINGTONMUTUAL-LAWSUIT.XML

NEW YORK, June 6 (Reuters) - Three former mortgage brokers of Washington Mutual Inc. <WM.N>, the largest U.S. savings and loan, have sued the company for allegedly shortchanging them out of overtime and paying them less than the federal minimum wage.

The lawsuit, filed on Monday in U.S. District Court in Brooklyn, New York, seeks class action status.

Jack Raisner, a lawyer with Outten Golden LLP, which represents the plaintiffs, said Seattle-based Washington Mutual deprived at least hundreds of brokers of their proper pay.

The lawsuit accuses the thrift of requiring home loan consultants, as its mortgage brokers are known, to work more than 40 hours per week and failing to pay them for the extra hours when approval was not granted for loans they handled.

According to the lawsuit, forcing the employees to work long hours without paying overtime regularly drove hourly pay below the federal minimum wage of $5.15 an hour.

...more...

[JNelson6563]

90. High noon at the OK Corral

Dow 10,938.18 -110.54 (1.00%)
Nasdaq 2,146.63 -22.99 (1.06%)
S&P 500 1,255.54 -9.75 (0.77%)
10-Yr Bond 5.012% -0.14

Looks like some brought knives to this gun fight.


Time to take cover. :hide:

[UpInArms]

92. blather

12:00 pm : Market continues to deteriorate midday and is at fresh session lows as fears that the Fed will go too far with its tightening efforts prompt more broad-based consolidation following the broader market's biggest decline since late January. The absence of notable economic data and an earnings calendar similarly devoid of influential releases leave investors even more focused on interest rate uncertainty, pricing in the worst with regard to the Fed's next move at their June 29-30.

While a sense that yesterday's sizable sell-off in reaction to Bernanke's surprisingly hawkish comments was overdone initially set the stage for a reflex rally, St. Louis Fed President Poole warning in a WSJ interview that slowing growth may not be adequate to hold down actual inflation merely echoed Bernanke's vigilance on about containing "unwelcome developments" such as elevated core-CPI and core-PCE measurements.

Despite some relief on the commodity price front, which also provided an early source of support, the lack of leadership from Energy and Materials, as well as seven other economic sectors, further underscore the market's inability to sustain this morning's paltry recovery efforts. DJ30 -110.15 NASDAQ -22.97 SP500 -9.58 NASDAQ Dec/Adv/Vol 2127/745/930 mln NYSE Dec/Adv/Vol 2347/732/804 mln

[UpInArms]

96. 12:14 EST recovery in progress

Dow 10,967.25 -81.47 (-0.74%)
Nasdaq 2,152.07 -17.55 (-0.81%)
S&P 500 1,259.67 -5.62 (-0.44%)
10-Yr Bond 5.000 -0.26 (-0.52%)

NYSE Volume 1,231,401,000
Nasdaq Volume 999,301,000

[stop the bleeding]

98. soaking wet band aid IMO n/t

[ozone_man]

97. I'll be there.

Got to clean and oil my six shooter first.

[Ghost Dog]

105. Uh huh.

“The Way of the Samurai is found in death.”
- Yamamoto Tsunetomo, Hagakure: The Book of the Samurai

http://www.google.co.uk/search?q=Ghost+Dog&start=0&ie=utf-8&oe=utf-8

[ozone_man]

109. Looks like I'm outgunned.

In that case, I'd better bring my Zero-Point Energy Field Manipulator. Somewhat anachronistic I know.

Officially called the "Zero-Point Energy Field Manipulator", the Gravity Gun is a tractor beam–like weapon that does not use any ammunition or power. The primary fire can repel most inanimate objects, allowing these objects to be moved to clear a path, or to be hurled at enemies. The reference to Zero-point energy is here used as hand-waving to explain away the fact that objects being manipulated stop obeying conservation-of-momentum laws, i.e. the Gravity Gun's actions upon heavy objects do not produce equal-but-opposite reactions on the Gun itself.

http://en.wikipedia.org/wiki/List_of_weapons_in_Half-Life_2#Zero-Point_Energy_Field_Manipulator

[Roland99]

108. 1:25pm - Jim Dandy to the rescue?

DJIA 10,978.29 -70.43 -0.64%
Nasdaq 2,160.08 -9.54 -0.44%
S&P 500 1,262.58 -2.71 -0.21%
Dow Util 410.74 -1.03 -0.25%
NYSE 8,090.36 -55.17 -0.68%
AMEX 1,925.34 -25.61 -1.31%
Russell 2000 709.09 -4.83 -0.68%
Semcond 461.36 +0.94 +0.20%
Gold future 634.30 -14.40 -2.22%
30-Year Bond 5.08% -0.04 -0.72%
10-Year Bond 5.01% -0.02 -0.40%


Go Jim Dandy! GO!

[UpInArms]

111. 1:47 EST Jim Dandy Running Scared

Dow 10,956.91 -91.81 (-0.83%)
Nasdaq 2,155.64 -13.98 (-0.64%)
S&P 500 1,260.12 -5.17 (-0.41%)
10-Yr Bond 5.006 -0.20 (-0.40%)

NYSE Volume 1,698,694,000
Nasdaq Volume 1,370,567,000

1:30 pm : Little changed since the last update but that's not to suggest that trading hasn't been choppy. Among the major indices losing ground, the Dow continues to turn in the worst performance. While a 58-point decline may pale in comparison to yesterday's 199-point reversal which left only one component (DIS) with a gain, further consolidation in the Dow has pushed it below the 11,000 mark for the first time since March 10th, as the index's best performers (e.g. BA -2.9%, CAT -1.2%, UTX -2.5%, MMM -1.5%, and GM -1.9%) are today's worst. DJ30 -58.20 NASDAQ -7.11 SP500 -1.06 NASDAQ Dec/Adv/Vol 1927/1016/1.31 bln NYSE Dec/Adv/Vol 2124/1032/1.14 bln

Run away! Run away!

[Roland99]

112. Looks like Jim Dandy went!

;)

[54anickel]

110. Golden age of liquidity is drying up

http://www.iht.com/bin/print_ipub.php?file=/articles/2006/06/04/bloomberg/bxatm.php

LONDON It turns out that it is not just money that makes the world go round. To cash, add credit and related financial instruments. That equals liquidity, the lifeblood of financial markets from Helsinki to Hong Kong.

Liquidity surged in the past decade, fueled by relaxed monetary policies by central banks, globalization, new technologies and such exotic financial instruments as derivatives. They in turn drove down interest rates and bond yields and encouraged investors to pump more money into riskier assets, propelling stock markets.

No more.

Rising inflationary expectations, growing political risks and, most especially, actual and anticipated increases in interest rates are combining to make investing and speculation more expensive.

"The era of underpriced capital in constant supply is ending," said David Roche, president of Independent Strategy, a global economic and financial consulting firm in London. "The global cost of capital is rising, and risk appetite will diminish." He warned that if liquidity kept shrinking, it would "squeeze asset prices and damage economic growth."

Roche said that the higher cost of capital - the cost of issuing new equity or borrowing money - was bad for both bonds and equities. Still, American dependence on foreign financing for its burgeoning current account deficit makes U.S. stocks more vulnerable than Japanese or European equities.

more...

[54anickel]

117. Smart money moves to FX trade

http://news.ft.com/cms/s/944c39ca-f4c2-11da-86f6-0000779e2340.html

Daily currency trading volumes could climb to more than $3,000bn a day by 2010 – half as much again as current levels – according to a study to be released on Tuesday.

ClientKnowledge, a UK research consultancy, believes the foreign exchange market will continue its current rapid pace of growth “for the foreseeable future” as a result of the ongoing development of the biggest emerging market economies and the rise in world trade, together with the growing army of traders seeking short-term profits.

Currencies are traded across borders and around the clock. Once the domain of banks using their massive credit lines to deal with each other, FX has been undergoing a steady revolution as electronic trading platforms have changed banks’ relationships with their clients and allowed a far wider pool of participants access to the best prices.

These new traders, including hedge funds and banks’ proprietary trading desks, did not exist in the FX market 10 years ago and now account for about 25 per cent of the market, according to ClientKnowledge.

more....


Oh my, it truely is a brave new world. Had to dig up this oldie on currency speculation and what it's increase may mean. Is it all really different this time? I sort of doubt it.

http://www.twnside.org.sg/title/nar-cn.htm

snip>

There are three cumulative causes for this explosive increase in currency speculation:

* Systemic redefinition: The first important act was US President Richard Nixon's unleashing of the dollar from the gold standard in 1971. 'Floating' the dollar allowed currency values to be determined by traders in currency exchange markets. Currencies from countries with strong economies and sound monetary and fiscal policies were given more value than currencies from countries with shaky or weak economies and policies. This'opening' of the system created a framework for the speculation game.

* Legal deregulation: In the 1980s, both former President Ronald Reagan and former Prime Minister Margaret Thatcher introduced deregulation strategies. The Baker Plan, implemented by the World Bank and the International Monetary Fund (IMF), applied those changes to a dozen key Third World countries. This created a lot more leeway for movement of capital internationally, and for corporations that previously would not have participated in speculation.

* Technology: The structural, deep-lying phenomenon behind the whole system, is the technological shift: the electronification of money and the computerisation of market systems.

snip>

One of the things to watch for in the future will be such a devaluation of (an 'attack' on) the US dollar, which is the linchpin of the whole system. Now, one might ask, 'Why would traders want to pull out the linchpin?' Well, from an individual trader's point of view, it doesn't matter which currency you profit from, you just trade. If enough traders see an opportunity to profit by the dollar's fluctuations, they will exploit it because nobody believes that his or her individual action will bring down the entire system.

Central banks can often intervene when a currency is under attack by either buying or selling to counter speculators. But the volumes of money now being traded are so vast that even central banks may not have an impact. All the reserves of all the central banks together amount to about $640 billion, so all their reserves could be depleted in a third of a normal trading day.

snip>

The only precedent I know is the collapse of the Roman monetary system...

more...

[UpInArms]

119. Now, that's a cheery thought!

The only precedent I know is the collapse of the Roman monetary system...

:hide:

[54anickel]

145. Well....You did bring up the Roman Empire monetary system first ya

know. I thought I'd just follow the theme for the day. :evilgrin:

[54anickel]

120. Why the Fed might hike Interest rates in June

http://www.321gold.com/editorials/sirchartsalot/dorsch060606.html

Twenty four months ago, the Federal Reserve embarked on a long, but predictable road of lifting the federal funds rate, aiming to reach an unknown "neutral rate" a sweet spot that would protect both price stability and maximum US employment. At each of the past 16 Fed meetings, the outcome was never in doubt. The Fed delivered a widely telegraphed, quarter-point rate hike.

But closer attention was always focused on the Fed's statement about the economy that might provide clues about its next move on interest rates. However, for the first time during the current rate hike cycle, there are widely split opinions about which poison the Fed will choose on June 29th, either a quarter-point rate hike to 5.25% or standing pat at 5.00%. Both options carry big risks for the US economy!

snip>

Federal Reserve's top priority - Defend the US dollar

There are other factors besides the US employment rate that could still persuade the Fed to lift the fed funds rate to 5.25% in June. If the Fed pauses at 5.00% on June 29th, currency traders might figure that the fed funds rate had peaked, and after an extended pause, the next shift in Fed policy would be a rate cut. That could trigger an immediate speculative attack against the US dollar against key reserve currencies, such as the British pound, the Euro, Japanese yen, and Swiss franc.

Indeed, the stiff corrections in industrial commodities and gold in the month of May were linked to expectations of a Fed rate hike to 5.25%. US dollar denominated commodities such as crude oil, copper, gold, silver, and zinc, the premier leaders of the "Commodity Super Cycle" could recover their bruising losses suffered last month, if the Fed holds rates steady, supported by a weaker US dollar. Inflation fears could re-ignite in global G-7 bond markets, lifting long term yields by a quarter-point.

San Francisco chief Janet Yellen, a voting member of the FOMC, is concerned about higher inflation emanating from a weaker US dollar. On May 27th, Yellen said, "A depreciating dollar would appear to call for a response of tighter policy by potentially stimulating export demand, while raising import prices. Appropriate policy actions by the Fed to anchor inflation to price stability, are essential to ensure that supply shocks do not become embedded in inflation expectations."

Cleveland Fed chief Sandra Pianalto warned on May 2nd, that foreign investors could tire of financing the US current account deficit, with serious implications for Fed policy. "At some point, international investors, including governments will become reluctant to add additional US dollar-denominated claims to their portfolios. At that point, higher interest rates on dollar-denominated assets and, possibly, a decline in the spot value of the dollar will be necessary to overcome their reluctance."

more...

[UpInArms]

122. 2:48 EST Clean-up Needed on Aisle One!

It appears they have lost their bowels!

Dow 10,945.07 -103.65 (-0.94%)
Nasdaq 2,151.60 -18.02 (-0.83%)
S&P 500 1,258.05 -7.24 (-0.57%)
10-Yr Bond 5.004 -0.22 (-0.44%)

NYSE Volume 2,007,323,000
Nasdaq Volume 1,605,683,000

2:30 pm : More of the same for stocks as selling remains widespread across most areas. Bonds, though, which found renewed safe-haven buying interest at the expense of another sell-off in equities a couple of hours ago are retracing session highs. The 10-yr note is up 5 ticks, pushing the yield back below 5.00%, but the spread between the 2-yr (4.983%) and 10-yr (4.999%) less than 2 basis points from becoming inverted continues to pose a concern for the rate-sensitive Financials. DJ30 -84.12 NASDAQ -12.34 SP500 -4.02 NASDAQ Dec/Adv/Vol 2009/975/1.53 bln NYSE Dec/Adv/Vol 2206/980/1.35 bln

2:00 pm : Recent recovery efforts continue to fade as the indices retrace previous lows in sympathy with a rebound in oil prices. Crude oil futures ($72.30/pbl -0.4%) are paring losses after the EIA raised its outlook for worldwide demand and Iran's top nuclear negotiator said there are "positive steps" in the European Union's proposal, which has helped the Energy sector turn the corner and provide some leadership. Nonetheless, Bernanke also saying yesterday that volatility in commodity prices is such that possible future price increases "remain a risk to the inflation outlook" only adds to the underlying sense of nervousness. DJ30 -87.08 NASDAQ -13.69 SP500 -5.02 NASDAQ Dec/Adv/Vol 1935/1025/1.41 bln NYSE Dec/Adv/Vol 2012/1158/1.24 bln

[stop the bleeding]

128. 50 minutes to go - will the faries make an appearance today?

50 minutes and we will know, possible late day buying????

[UpInArms]

129. 3:20 EST Markets see thru cheap tricks - still heading for the exits

Dow 10,936.09 -112.63 (-1.02%)
Nasdaq 2,150.27 -19.35 (-0.89%)
S&P 500 1,256.93 -8.36 (-0.66%)
10-Yr Bond 5.006 -0.20 (-0.40%)

NYSE Volume 2,186,678,000
Nasdaq Volume 1,753,672,000

3:00 pm : Indices extend their reach into negative territory as virtually every SnP industry group continues to trade lower. Pacing the way to the downside and adding to its year-to-date leading 31% decline is Homebuilding (-4.3%), as all five of the index's components (e.g. CTX, DHI, KBH, LEN, PHM) hit 52-week lows. Aluminum (-2.7%), Casinos and Gaming (-2.6%), Auto Equipment (-2.4%) and Building Products (-2.4%) round out of the Top Five laggards while Environmental Services (+1.3%) is among only a few areas extending their strong 2006 performances. DJ30 -100.37 NASDAQ -17.37 SP500 -6.95 NASDAQ Dec/Adv/Vol 2062/935/1.64 bln NYSE Dec/Adv/Vol 2145/1046/1.47 bln

[UpInArms]

132. 3:35 EST Faeries on the floor with their mops and dusters

Dow 10,967.16 -81.56 (-0.74%)
Nasdaq 2,155.71 -13.92 (-0.64%)
S&P 500 1,260.31 -4.98 (-0.39%)
10-Yr Bond 5.006 -0.20 (-0.40%)

NYSE Volume 2,280,153,000
Nasdaq Volume 1,852,827,000

3:30 pm : Market is still languishing near its worst levels going into the close. Per usual, since the specter of higher rates more greatly impacts the borrowing power of small-cap companies, the Russell 2000 Index is turning in the worst performance and is now 10% off its historic highs. The Dow Industrials aren't faring much better, as another 100-point decline has leaves it below 11,000 for the first time in three months and a 0.9% plunge on the Nasdaq has it sitting at its worst levels in six months. DJ30 -108.37 NASDAQ -18.86 R2K -1.1% SP500 -7.90 NASDAQ Dec/Adv/Vol 2076/951/1.81 bln NYSE Dec/Adv/Vol 2289/940/1.60 bln

[UpInArms]

134. 3:41 EST Faeries pouring on the coals - attempting to save 11,000 goal

Dow 10,986.77 -61.95 (-0.56%)
Nasdaq 2,159.46 -10.16 (-0.47%)
S&P 500 1,261.19 -4.10 (-0.32%)
10-Yr Bond 5.006 -0.20 (-0.40%)

NYSE Volume 2,330,390,000
Nasdaq Volume 1,896,534,000

[UpInArms]

135. 3:43 EST SCORE!!! 11,000 RECOVERED!

Dow 11,001.42 -47.30 (-0.43%)
Nasdaq 2,161.90 -7.73 (-0.36%)
S&P 500 1,263.54 -1.75 (-0.14%)
10-Yr Bond 5.006 -0.20 (-0.40%)

NYSE Volume 2,352,374,000
Nasdaq Volume 1,915,768,000

[Roland99]

136. Closing numbers are fighting tooth and nail to keep 11k!

It keeps flitting between 10,992.15 and about 11,002.14

[UpInArms]

130. Herley Industies Inc - Defense Contractor - Chairman indicted

3:22pm 06/06/06 Herley shares halted; last traded at $17.16, down 34c - MarketWatch.com

3:21pm 06/06/06 Herley, chairman deny criminal conduct, to contest charges - MarketWatch.com

3:21pm 06/06/06 Herley: Indictments are related to 3 DoD contracts - MarketWatch.com

3:20pm 06/06/06 Herley, co. chairman indicted on multiple charges - MarketWatch.com

[UpInArms]

131. Herley, chairman indicted on DoD contract-related charges

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B980C8357%2D59C0%2D4A2B%2DA456%2DA47118685733%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Herley Industries Inc. (HRLY : 17.16, -0.34, -1.9% ) said Tuesday the company and its chairman, Lee Blatt, have been indicted by the the U.S. Attorney's office for the Eastern District in Pennsylvania on multiple charges in connection with purported activities resulting in alleged excessive profits on three Department of Defense contracts. No other officer, director or employee has been named in the indictment, the Lancaster, Pa., maker of microwave technology solutions said. One contract concerned the sale of voltage controlled oscillators and was completed in January 2001; the other two contracts involved the sale of powerheads to the U.S. government and were completed in April 2002 and October 2002, respectively. Herley and Blatt denied any criminal activity and said they plan to vigorously contest the charges.

[Roland99]

137. Closing: Faeries and pixie dust save Chopper Ben's choppers

DJIA 11,002.14 -46.58 -0.42%
Nasdaq 2,162.78 -6.84 -0.32%
S&P 500 1,263.85 -1.44 -0.11%
Dow Util 410.86 -0.91 -0.22%
NYSE 8,100.77 -44.76 -0.55%
AMEX 1,923.30 -27.65 -1.42%
Russell 2000 710.97 -2.95 -0.41%
Semcond 458.36 -2.06 -0.45%
Gold future 634.70 -14.00 -2.16%
30-Year Bond 5.08% -0.04 -0.72%
10-Year Bond 5.01% -0.02 -0.40%

[Ghost Dog]

138. So beautiful.

:-)

[UpInArms]

139. The amazing power of cheese

:sarcasm:

:hi:

[54anickel]

143. And the yada....it's all about interest rates now - used to be oil - go

figure :shrug:

4:20 pm : Stocks sold off for a second straight day as investors continued to view Bernanke's latest comments as "unwelcome developments." Albeit not closing at session lows, as a renewed wave of buying late in the day more than halved another broad-based decline, fears that the Fed will go too far with its tightening efforts continued to weaken an already cautious tone.

A dearth of market-moving economic and earnings data left investors even more focused on interest rate uncertainty, pricing in a worst-case scenario with regard to the Fed's next move at their June 29-30 meeting. More hawkish commentary, this time from St. Louis Fed President Poole and Fed Governor Bies, reminded investors that fed funds futures are still pricing in about an 80% chance of another 1/4% rate hike at the next FOMC meeting. Poole echoed Bernanke's vigilance by warning in a WSJ interview that slowing growth may not be adequate to hold down actual inflation. Bies said that she is uncomfortable with inflation above 2% and that policy makers don't exactly know when to stop raising rates as increases still feed their way through the economy. Bernanke's tough talk on inflation now puts the focus squarely on next week's influential PPI and CPI data. To wit, if the May core CPI comes in at 0.3% for a third consecutive month next Wednesday, the Fed Chairman will be pressured to raise rates for a 17th straight time at the next FOMC meeting in a few weeks, regardless of the incoming economic data.

Despite some relief on the commodity price front, which provided an early source of market support, limited leadership from Energy was not enough since the fact that possible future price increases "remain a risk to the inflation outlook" only added to the underlying sense of nervousness.

Consumer Discretionary was the most influential leader to the downside, amid further consolidation in homebuilders and autos. Homebuilding turned in the day's worst performance, extending its year-to-date leading 31% decline as all five of the index's components hit 52-week lows after Wachovia downgraded DR Horton (DHI 23.35 -1.46). KB Homes (KBH 45.80 -3.30) and Pulte Homes (PHM 27.98 -1.77). General Motors (GM 25.31 -0.74), which warned it will continue to face competitive challenges amid high raw material prices, also weighed on the sector. Technology also lost ground, led by two of its most influential components -- Microsoft Corp. (MSFT 22.02 -0.48) and Intel Corp (INTC 17.74 -0.24) -- hitting intraday 52-week lows, which plays into our recent downgrade on the sector to Market Weight. Microsoft lost ground after Google (GOOG 385.45 +11.01) said it will launch a competing web-based spreadsheet program.

Even though a 47-point decline on the Dow Industrials paled in comparison to Monday's 199-point reversal which left only one component -- Disney (DIS 30.58 -0.16), an Active Portfolio holding -- with a gain, further consolidation in the index's best performers, like Boeing (BA 80.60 -1.53) and United Technologies (UTX 60.02 -1.43), pushed it below the 11,000 mark for the first time since March 10th, where it stayed until the closing bell. The late-day recovery effort notwithstanding, the market is not likely to make a major move upward until the interest rate outlook becomes clearer. DJ30 -46.58 NASDAQ -6.84 SP500 -1.44 NASDAQ Dec/Adv/Vol 1827/1219/2.13 bln NYSE Dec/Adv/Vol 2140/1095/1.89 bln