STOCK MARKET WATCH, Monday October 9

[ozymandius]

Monday October 9, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 835 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2112 DAYS
WHERE'S OSAMA BIN-LADEN? 1818 DAYS
DAYS SINCE ENRON COLLAPSE = 1779
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 6
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54


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




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

AT THE CLOSING BELL ON October 6, 2006

Dow... 11,850.21 -16.48 (-0.14%)
Nasdaq... 2,299.99 -6.35 (-0.28%)
S&P 500... 1,349.58 -3.64 (-0.27%)
Gold future... 576.80 +1.30 (+0.23%)
30-Year Bond 4.84% +0.08 (+1.60%)
10-Yr Bond... 4.70% +0.09 (+1.91%)






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 Tim W. Wood

THE DOW REPORT
Conventional Wisdom

In today’s wrap up I want to take a look at a few of the mainstream views that were so prevalent just a few months ago. The first one that comes to mind is the expectation of $5 per gallon gasoline. I remember hearing this on the news and friends and family were talking about it. Right as gasoline neared it’s peak, one night in a restaurant I recall hearing a conversation in which a man was telling his friends all the reasons that gasoline was going to go to $5 per gallon or even higher. When I heard that conversation, I knew we had to be nearing a top. The week of July 14th my intermediate-term Cycle Turn Indicator turned down telling me that the advance was over. As of this writing gasoline has dropped some 35% on the futures market and in my area it has dropped 28% at the pump. Below is a chart of gasoline showing this decline. I have been saying now for a couple of weeks that gasoline is oversold on an intermediate-term basis and that we should be moving into an intermediate-term low. That low is still trying to form. If it can take root and a full blown intermediate-term buy signal occurs on the Cycle Turn Indicator, then we should see another advance develop. At this time, I believe that advance will be a counter-trend move and I will treat it as such unless I see evidence developing to the contrary.

-chart-

The same also goes for oil. I specifically recall just a few months ago that it was the opinion of most people that oil was headed to $100 a barrel or even higher. I remember seeing this on my local news, CNBC and even friends and family talked about $100 oil. Well, since the peak of all that talk oil has dipped below $58 a barrel from just under $80. Here too, oil is now getting pretty oversold. Once the intermediate-term Cycle Turn Indicator turns up, we should also see a counter-trend bounce unfold here as well. In the meantime, I cannot yet rule out the possibility of a bit more weakness. However, we should be getting relatively close to a window in which an intermediate-term bounce should have the opportunity to take root. At this time I believe this will be a counter-trend affair. Should evidence to the contrary develop, once a bounce takes root, then perhaps $100 oil will be possible, but for now I seriously have my doubts. We just have to take it one step at a time at.

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

[ozymandius]

2. Oil rises above $60 amid OPEC reports

SINGAPORE - Oil prices rose Monday in Asian trading following reports the Organization of Petroleum Exporting Countries was set to trim its daily production of crude by 1 million barrels.

Prices also edged up after North Korea announced Monday it conducted its first-ever nuclear bomb test, bringing geopolitical concerns back into the oil market's focus.

The market was awaiting a possible formal decision on Monday by OPEC states about its output policy. Over the weekend, reports quoted OPEC officials as saying the 11-member cartel would reduce its output by about 4 percent to stem a 24 percent decline in prices since mid-July.

Oil prices have been range-bound in the past week as traders weighed tough rhetoric from some OPEC members calling for output cuts against that of Saudi Arabia, a representative of whom has denied there was a deal to reduce production.

more

[ozymandius]

3. Chevron to invest $6 bln in Indonesia gas fields

JAKARTA (Reuters) - Chevron Corp. (NYSE:CVX - news) plans to invest about $6 billion to develop gas fields off the coast of Borneo, aiming to crank up flagging Indonesian gas output, a senior official at the country's oil watchdog said on Monday.

Indonesia, the world's top liquefied natural gas (LNG) exporter, has failed to meet its contractual commitments to traditional buyers such as Japan,
South Korea and Taiwan because of a slump in production.

"Chevron said it wanted to develop gas fields in East Kalimantan, including Gehem and Gendalo until 2012 with investment of about $6 billion," BPMIGAS chief Kardaya Warnika said via a telephone text message.

-cut-

Another BPMIGAS official, who declined to be identified, said the Gehem and Gendalo gas fields were seen as having the potential to boost gas production and help offset declining output from other gas fields in the province.

more

[ozymandius]

4. Output from Exxon Russia field to decline from 2008

YUZHNO-SAKHALINSK, Russia (Reuters) - Oil output from the Exxon Mobil-led (NYSE:XOM - news) Sakhalin-1 project will peak in 2007 and start to decline immediately afterwards partly because it failed to agree with Russia to extend the field's territory, a project member said on Monday.

Lev Brodsky, head of Sakhalin projects at Russian state oil firm Rosneft, which is part of Sakhalin-1, told a news conference the failure to agree the extension of license territory would cut the projected output by around 10 percent.

-cut-

Exxon has repeatedly asked the government to extend the contract territory of the Sakhalin-1 production sharing project (PSA) after it discovered new adjacent deposits, but the government decided to put them up for auction.

Many analysts interpreted the stand-off as part of a broader Kremlin campaign to regain control and reduce foreign influence in the strategic energy sector.

more

[ozymandius]

5. Gas tumbles, but don't get used to it

Lundberg Survey: Pump prices fall nearly 15 cents a gallon, but colder weather will drive them back up.

ATLANTA (CNN) -- Gas prices declined an average of nearly 15 cents a gallon in the last two weeks, but are expected to begin rising as the winter approaches, the publisher of the national Lundberg Survey said Sunday.

The national average for a gallon of self-service, regular gasoline was $2.28 on the Oct. 6 survey date, compared to $2.42 two weeks earlier - a decline of about 14 cents, Lundberg told CNN.

-cut-

As a result of fewer supplies, wholesalers already have begun to pay more for gasoline they distribute to the retailers they serve, she said. She noted that some refineries are still making repairs from last year's devastating Gulf Coast hurricanes. In addition, imports won't be as plentiful, Lundberg said.

more

[ozymandius]

6. Roller Coaster at the Pump (editorial)

It seems a little too convenient. As the stretch run to the midterm Congressional election approaches, gasoline prices fall precipitously. The sudden shifts in prices seem to come out of the blue. And unlike copper or pork bellies, oil is a commodity always charged with political significance.

It only sets the bloggers typing faster and the pundits chattering louder when a key player in the price swing is the investment bank Goldman Sachs, whose chief executive, Henry Paulson, left to become President Bush’s Treasury secretary. The suspicions were serious enough that the White House press secretary, Tony Snow, addressed them. He joked that it would take “the kind of magisterial clout unknown to any other human being” to rig gas prices. But with 42 percent of respondents to a Gallup poll saying that they believed the Bush administration was manipulating prices ahead of the election, it is probably not a laughing matter behind closed doors at the White House.

-cut-

Our demand for petroleum products strains the limits of the global capacity to supply them. In past decades, if a pipeline broke in Nigeria, Saudi Arabia might compensate by setting workers to pumping more oil. Now, with little additional capacity, rising prices are necessary to balance out supply and demand. Each bump can feel like an earthquake. But to speculators, volatility means the potential for big profits, so hedge funds and investment banks pile in to make bets, bidding oil futures up to unnatural highs and making the market even more unstable.

http://www.nytimes.com/2006/10/08/opinion/08sun2.html?_r=1&oref=slogin

[ozymandius]

7. BA executives quit in price-fix probe

Two senior British Airways executives at the centre of price-fixing allegations relating to long-haul passenger fuel surcharges have quit and left the company, Britain's flagship airline, with immediate effect.

Martin George, the commercial director and a BA employee for the past 19 years, resigned alongside Iain Burns, the head of communications.

Both men had been on leave of absence since June, when the Office of Fair Trading in the UK and the US Justice Department began a formal probe into possible price-rigging of long-haul fuel tax charges.

http://business.timesonline.co.uk/article/0,,9077-2395605,00.html

[ozymandius]

8. Google set for pre-emptive swoop to buy YouTube

Speculation was mounting last night that Google could make a $1.6bn (£855m) swoop on popular online video site YouTube as early as this week.

Wall Street bankers believe a pre-emptive strike could see off a possible competitive auction for the site with Yahoo!, Time Warner and Walt Disney all said to be considering a bid.

-cut-

News Corp, owner of MySpace, however, seems to have ruled itself out of the running for YouTube after making an initial approach. It is believed to have been put off by the price demanded by the YouTube team. Rupert Murdoch's media conglomerate made a similarly abortive move on internet telephony company Skype last year. It offered significantly less than the $4.1bn that won the business for eBay, and went after MySpace instead.

-cut-

A deal between Google and YouTube is by no means certain. Both companies have well respected Silicon Valley investor Sequoia Capital among their backers and the fund will be mindful of the fact that Google was approached in its early days with a low-ball offer. In the early days of the search engine, Excite tabled an offer for Google rumoured to be pitched around $700,000. The business is currently worth about $130bn. Neither Google nor YouTube could be reached for comment.

http://technology.guardian.co.uk/news/story/0,,1890992,00.html

[ozymandius]

9. Markets fall after N Korean test

uropean share indexes have fallen in early trade, echoing Far Eastern declines after North Korea said it had carried out a nuclear weapon test.

Following Pyongyang's announcement, Frankfurt's Dax started down 19 points, while Paris' Cac gave up 18 points and London's FTSE 100 lost 2 points.

The declines were more severe in Asia, where South Korea's main Kospi ended the day down 33 points or 2.4%.

Although Japan's markets were closed on Monday, the yen hit a seven-month low.

http://news.bbc.co.uk/2/hi/business/6032605.stm

[UpInArms]

10. daily dollar watch

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

Last trade 86.48 Change -0.01 (-0.01%)

Breakout - Is It Real?

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/Breakout___Is_It_Real__1160392684121.html

EURUSD – The EURUSD has broken out of a 5 month triangle pattern. Friday’s low at 1.2570 is just above the 7/26 low at 1.2557. A break below there exposes the 7/19 low at 1.2456. Weekly RSI is below 50 for the first time since 3/24 (when EURUSD was at 1.2035). Friday’s close below the lower Bollinger band (daily) following the historically tight bands favor a breakout to the downside. The 10 day SMA crosses below the 20 day on Friday as well. The 9/26 low at 1.2637 is initial resistance.

<snip>

USDJPY – The USDJPY broke through the 10/2 high at 118.39 and took off for 100 more pips. The pair remains below the 2/3 high at 119.38 but a push above there exposes the 12/5/2005 high at 121.38. The pattern since 7/19 has taken the form of an ending diagonal. This is a terminal pattern and usually ends in a thrust in the direction of the slope of the diagonal (in this case up). This may be what is happening now. Price often extends to a Fibonacci multiple of the widest point of the diagonal triangle. In this case, the 138.2% and 161.8% Fibonacci levels are potential ending points for this rally. The 138.2% of 117.88-113.95 happens to be 119.38 (2/3 high) and the 161.8% is at 120.30. A break back below 118.39 would suggest that the thrust higher is complete.

<snip>

USDCAD – The impulsive rally to the 1.1300 figure reinforces the bullish bias against 1.1028. The rally has stalled though and declining intraday oscillators leave open the possibility of a deeper retracement towards the 61.8% of 1.1085-1.1305 at 1.1169. A daily close above the 200 day SMA, currently at 1.1318, would reinforce the bullish bias against 1.1085. A possible 5 month head and shoulders continuation pattern clouds the picture. The neckline is at 1.1063. A takes a decline below there to in order to complete the pattern and suggest that prices are headed lower.

...more...

How Real Dollar Rally?

http://www.dailyfx.com/story/strategy_pieces/trade_or_fade/How_Real_Dollar_Rally__1160370444567.html

It was a market that only central bankers could love as EUR/USD traded a few points of either side of 1.2700 until Friday’s NFP results, producing more volatility in one hour than happened during the whole week. However, much like most of the economic date lately, the NFP results were hardly crystal clear. The monthly job number printed at only 51K woefully short of 120K consensus estimate, but the month prior was revised sharply higher to 188K from 120K initially reported. Furthermore, in a preliminary estimate, the Labor Department said payrolls for the 12 months ended in March 2006 will be revised higher by 810,000, the biggest revision since the Labor Department started benchmarking numbers in 1991 and fully 45% higher than initial estimates. So is this bullish for the dollar? Perhaps. Job creation may indeed be generating enough income to offset the depressive effects of the slowdown in housing but in the inimitable worlds of Raul Julia in The Gumball Rally, “Whats-a-behind-me does not matter”. The BLS revisions point to past economic strength whereas September‘s tepid results could be signaling weakness ahead. As we noted on Friday, jobs in the US economy with its 4.6% unemployment rate are not the real issue: Income is. With average US household debt rising to 130% of income, debt service is likely to consume a progressively bigger share of US consumers monthly budget dampening future consumption. Although wages grew 4.0% on year over year basis – their best performance in 5 years – the monthly gain was only 0.2% versus 0.3% expected, providing little fuel to spark a consumption boom. Given current US economic fundamentals we remain dubious that the dollar rally will be able to continue much beyond the 1.2500 level.

Next week the two key reports for dollar traders will be the Trade Balance and the Advanced Retail Sales numbers. According to latest data from Long Beach and Los Angeles ports, imports have increased at a whopping 16% rate versus past levels of 12% suggesting the trade gap may hit another record unless lower oil prices offset some of that growth. As for Retail Sales they will tell the true story of the strength of the consumer and will bear watching closely.



...more...

[DemReadingDU]

11. thread to read about State Street and pensions

It's long to read, but there is a lot of interesting information

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x2347614

[converted_democrat]

14. I just finished reading the post. It was very interesting. I hope this

story is accurate, and that it is able to gain traction before the election.

[AnneD]

18. Morning Marketeers...

:donut: and lurkers. I miss the cries of the newspaper boys. I really would love to here them cry out some of these headlines now. Sigh....
What a good few weeks to be a Democrat. How many times have I had to bite my tongue to keep from saying 'I told you so' with some of my poor bewildered GOP acquaintances. They have been walking around looking like they just got unplugged from the Matrix. When I talk to them about some of the other things that went on (Jeff Gannon, etc) they are so shocked and ask where I heard about this (I mention a bit about the MSM sitting on stories). Then I finish up by mentioning that Bush managed to do what Al Quida couldn't....destroying an American city (they look puzzled-then I say New Orleans). That brings on ironic laughter most time and then they finally 'get it'.



Happy hunting and watch out for the bears.

[ozymandius]

15. yet another shoe to drop

This one is around a size 86.

[DemReadingDU]

17. 86?

I have been reading and lurking in this stock market thread for a few months, but I am unsure of the significance of 86 for a shoe size, other than BIG.

[ozymandius]

19. otherwise, a metaphor

Sorry for being obtuse. I use the number 86, as if to say: throw them out. Here's something big for tossing these folks away where they cannot do others any harm.

[ozymandius]

12. 10:12 and nothing but pressure

Dow 11,828.99 Down 21.22 (0.18%)
Nasdaq 2,299.97 Down 0.02 (0.00%)
S&P 500 1,348.14 Down 1.44 (0.11%)
10-Yr Bond 4.6980% Up 0.0020

NYSE Volume 299,653,000
Nasdaq Volume 227,347,000

10:00 am : Equities are still on the defensive as the bulk of industry leadership remains negative. Of the eight sectors posting losses, Health Care is pacing the way lower after several Pharmacy Benefits Managers were downgraded (e.g. CMX -2.6%, ESRX -3.4%, MHS -2.1%). Consumer Staples is also a notable leader to the downside, losing ground in part after Kroger (KR 22.17 -0.32) was downgraded, while Energy and Materials, getting some assistance amid renewed geopolitical concerns tied the North Korean news, are the only sectors providing any upside leadership.DJ30 -18.11 NASDAQ -1.11 SP500 -1.21 NASDAQ Dec/Adv/Vol 1479/905/112 NYSE Dec/Adv/Vol 1500/975/52 mln

09:40 am : As futures trading presaged, stocks open modestly lower after reports that North Korea successfully completed an underground nuclear weapons test underpin a sense of nervousness. That news, coupled with a possible formal decision by OPEC about a production cut, have sent crude oil futures up 1.3% to $60.50/bbl, which is giving investors an excuse to extend Friday's consolidation efforts given another market rally last week that lifted the Dow to historic highs.DJ30 -15.85 NASDAQ -1.52 SP500 -0.83 NASDAQ Vol 70 mln NYSE Vol 48 mln

[ozymandius]

13. Waste: Suddenly, rubbish is looking attractive

Chinese economic growth is transforming corporate attitudes to waste elsewhere on the globe. Industrial and commercial by-products that were once a cost have been re-cast as a resource thanks to commodity prices driven up by soaring Chinese demand. Higher energy prices are also making energy-from-waste schemes more attractive.

"It is more and more evident globally - at least in the bigger-sized companies - that managers are starting to understand that waste is a resource available for re-use," says Christophe Cros, chief operating officer of Paris-based Suez Environment. "Becoming resource-efficient is an issue that brings financial and competitive advantages."

The scale of the opportunity is immense. Typically, for every tonne of product turned out in the UK, around 10 tonnes of resources such as raw materials and water are used. The 3.75m companies in the UK all make a contribution to these resource inefficiencies.

http://news.yahoo.com/s/ft/20061009/bs_ft/fto100920060840570181

[ozymandius]

16. going sideways at 11:12

Dow 11,828.75 Down 21.46 (0.18%)
Nasdaq 2,299.76 Down 0.23 (0.01%)
S&P 500 1,348.02 Down 1.56 (0.12%)
10-Yr Bond 4.6980% Up 0.0020

NYSE Volume 602,783,000
Nasdaq Volume 462,507,000

11:00 am : Even though market losses remain modest in scope, the indices have recently taken a turn for the worse and slipped to morning lows. With the bond market closed in observance of the Columbus Day holiday and no notable earnings reports out until tomorrow, more emphasis is being placed on action in the commodities markets. Thus, oil prices recently surpassing $61/bbl and up more than 2.0% at one point have acted as a catalyst for investors to take more money off the table since high energy prices remain an inflation risk that will be addressed when central bankers meet again in two weeks. DJ30 -22.26 NASDAQ -1.05 SP500 -1.42 NASDAQ Dec/Adv/Vol 1649/1024/375 mln NYSE Dec/Adv/Vol 1779/1141/280 mln

10:30 am : Major averages now trade in split fashion but overall sentiment continues to favor the bears as decliners still hold an edge over advancers on both the NYSE and the Nasdaq. Be that as it may, since blue chip weakness is minimal at best, early selling pressure is more reflective of a profit taking move since the Dow and S&P 500 are at multi-year highs than a clear shift in investor confidence. After all, strong earnings growth has been the driving factor behind the steady stock market gains and Alcoa (AA 28.24 +0.50), today's best performing Dow component, is expected to kick off the Q3 earnings season tomorrow afternoon with a 67.5% year/year rise in profit growth.DJ30 -23.70 NASDAQ +0.33 SP500 -1.31 NASDAQ Dec/Adv/Vol 1562/1007/252 mln NYSE Dec/Adv/Vol 1682/1149/182 mln

[ozymandius]

20. noon blather

12:00 pm : The major averages remain mixed midday as there still isn't much conviction from either the bulls or the bears. With the three major indices up a combined 3.1% on average over the last two weeks, a sense that stocks are overbought at current levels has left open a window of opportunity for sellers to extend Friday's consolidation efforts.

Providing investors with an initial excuse to lock in some profits were reports that North Korea has successfully conducted an underground nuclear weapons test which, combined with reports that OPEC will finalize a deal to cut production, had pushed oil prices back above $61/bbl (+2.0%). That left oil's inflationary characteristics front and center since the Treasury market being closed today in observance of the Columbus Day holiday has left no economic data to potentially get buyers back on track following the headline disappointment on nonfarm payrolls last Friday.

Be that as it may, oil prices briefly trading back to session lows ($60.30/bbl) and renewed leadership in Technology within the hour have improved market sentiment. The tech sector has gotten its biggest boost from Google (GOOG 430.38 +9.88), which is up 2.3% following a video content deal with Warner Music Group (WMG 26.36 -0.47) and amid reports it may acquire YouTube for $1.65 bln.

Consumer Discretionary is also providing some notable leadership as a $7.9 bln offer from the Dolan family to take Cablevision Systems (CVC 26.54 +2.61) private speaks to the underlying value of cable companies, especially rival Comcast Corp. (CMCSA 37.45 +0.32). Six out of 10 economic sectors, though, continue to sport modest losses, led by a Health Care sector that is under pressure after several Pharmacy Benefits Managers were downgraded (e.g. CMX -4.3%, ESRX -6.0%, MHS -3.8%). DJ30 -10.25 NASDAQ +8.51 SOX +1.6% SP500 +0.05 NASDAQ Dec/Adv/Vol 1394/1395/602 mln NYSE Dec/Adv/Vol 1430/1578/466 mln

[ozymandius]

21. 1:58 update and bye

Dow 11,846.92 Down 3.29 (0.03%)
Nasdaq 2,312.30 Up 12.31 (0.54%)
S&P 500 1,350.80 Up 1.22 (0.09%)
10-Yr Bond 4.6980% Up 0.0020
NYSE Volume 1,232,954,000
Nasdaq Volume 960,352,000

1:30 pm : Stocks remain mired in relatively tight trading ranges, even as oil prices spike to session highs. Crude oil futures are now up 2.6% at $61.30/bbl (+$1.54) after OPEC reportedly said Saudi Arabia and five other members will cut production to help offset a more than 20% pullback in prices from their record levels in July. The market's resilience to rising oil has been assisted partly by subsequent leadership in Energy, since everything from explorers to refiners are again expected to make large contributions to aggregate profit growth on the S&P 500.DJ30 -4.89 NASDAQ +11.27 SP500 +0.87 NASDAQ Dec/Adv/Vol 1282/1591/854 mln NYSE Dec/Adv/Vol 1315/1771/678 mln

1:00 pm : Blue chip averages remain stuck in neutral as investors continue to question the sustainability of recent gains that lifted the Dow to an all-time high last week. Of the 16 Dow components trading lower, Boeing (BA 82.63 -1.05) is pacing the way to the downside (-1.3%). Declines of more than 1.0% from Coca-Cola (KO 44.26 -0.50) and Pfizer (PFE 27.57 -0.33) are also offsetting strength from Alcoa (AA 28.21 +0.47) and Caterpillar (CAT 68.95 +0.90), which are up 1.6% and 1.3%, respectively, as well as a new 52-week high on McDonald's (MCD 40.43 +0.32), which was upgraded at Morgan Stanley.DJ30 -4.17 NASDAQ +10.43 SP500 +0.66 NASDAQ Dec/Adv/Vol 1324/1543/768 mln NYSE Dec/Adv/Vol 1322/1758/612 mln

[ozymandius]

22. For the record - here's the finals

Dow 11,857.81 Up 7.60 (0.06%)
Nasdaq 2,311.77 Up 11.78 (0.51%)
S&P 500 1,350.66 Up 1.08 (0.08%)
10-Yr Bond 4.6980% Up 0.0020
NYSE Volume 1,986,690,000
Nasdaq Volume 1,549,555,000

4:20 pm : Stocks got back on the buying track Monday, but with the bond market closed in observance of the Columbus Day holiday, limited participation from equity traders indicated there was little conviction behind the market's modest move to the upside.

Kicking off a new week of trading, but with a sense of caution and an early excuse to lock in recent market gains, were reports that North Korea had detonated its first-ever nuclear weapon. However, since there was little evidence to confirm such a weapons test, what few participants decided not to take a long weekend found a few, primarily positive news items to digest.

As evidenced by the tech-heavy Nasdaq turning in the best performance among the majors, a 2.0% surge in the Composite's fourth most influential component -- Google (GOOG 429.00 +8.50) -- was a big reason behind the Nasdaq extending two consecutive weeks of 1.8% gains. Google inked a video content deal with Warner Music Group (WMG 26.77 -0.06) and is reportedly in talks to acquire YouTube for $1.65 bln. Active Portfolio holding Cisco Systems (CSCO 24.31 +0.22) hitting a new 52-week high after a favorable mention in this week's Barron's, as well as leadership in semiconductors fueled by renewed speculation that Intel (INTC 20.62 -0.01) may acquire Nvidia Corp. (NVDA 32.92 +1.99), provided additional support.

Of the other seven sectors trading higher, Materials paced the way as investors eyed steel stocks as potential takeover candidates. The sector was also in focus in anticipation of Alcoa (AA 27.99 +0.25) officially kicking off a Q3 earnings season tomorrow that is expected to show operating profit growth for the S&P 500 of around 14%.

Such optimism on the earnings front was also responsible for continued momentum in the Financials sector. The latter is positioned to be one of the largest contributors to aggregate EPS growth on the S&P 500 and, due to further recognition that the Fed's tightening activity is reaching an end, underpins our Moderately Bullish market view.

Consumer Discretionary also provided some notable leadership as a $7.9 bln offer from the Dolan family to take Cablevision Systems (CVC 26.50 +2.57) private spoke to the underlying value of cable companies, especially rival Comcast Corp. (CMCSA 37.67 +0.54). The sector got an extra lift from the retail group after oil prices erased almost all of a 2.6% intraday gain. At around 1:00 ET, crude oil futures were as high as $61.30/bbl (+$1.54) after OPEC reportedly said Saudi Arabia and five other members will cut production to help offset a more than 20% pullback in prices from their record levels in July.

However, the commodity and its inflationary characteristics came tumbling down almost as fast as they spiked 30 minutes earlier to close below $60/bbl following reports that OPEC President Daukoru will not hold an emergency meeting to officially ratify an agreement to cut output. Since everything from explorers to refiners are also expected to keep the S&P 500 on track to achieve a 13th straight quarter of double-digit profit growth, the absence of leadership from the Energy sector kept blue-chip gains at a minimum. DJ30 +7.60 NASDAQ +11.78 SOX +1.1% SP500 +1.08 NASDAQ Dec/Adv/Vol 1203/1809/1.51 bln NYSE Dec/Adv/Vol 1284/1938/1.24 bln