STOCK MARKET WATCH, Monday November 6

[ozymandius]

Monday November 6, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 805 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2140 DAYS
WHERE'S OSAMA BIN-LADEN? 1846 DAYS
DAYS SINCE ENRON COLLAPSE = 1807
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 November 3, 2006

Dow... 11,986.04 -32.50 (-0.27%)
Nasdaq... 2,330.79 -3.23 (-0.14%)
S&P 500... 1,364.30 -3.04 (-0.22%)
Gold future... 629.20 +1.40 (+0.22%)
30-Year Bond 4.81% +0.10 (+2.06%)
10-Yr Bond... 4.72% +0.12 (+2.59%)






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
Another Look at the 4-Year Cycle

Yet, others proclaim that the 4-year cycle used to exist, but that it is no longer a relevant factor.

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

[ozymandius]

2. Oil prices slip over doubts of OPEC cuts

SINGAPORE - Oil prices slipped Monday after threats late last week of disruptions to production in Nigeria and the United States failed to materialize. Also, traders are doubtful about OPEC's ability to follow through on its pledge to cut production.

High crude inventories and seasonally weak demand are other contributing factors in keeping prices from rising above $60 a barrel range, said Victor Shum, an energy analyst at Purvin & Gertz in Singapore.

While oil prices have retreated significantly from a summertime high above $78 a barrel, they have been trading in a range of around $57-$61 a barrel over the past month as traders look for demand clues in weather and economic forecasts and weigh them against OPEC's plans to curb supplies by 1.2 million barrels a day.

more

[ozymandius]

3. OPEC president says may consider another round of cuts

SEOUL (Reuters) - OPEC President Edmund Daukoru said on Monday that oil markets may not feel the effects of OPEC's production curbs until later this month and restated a further reduction may be needed if oversupply continued.

"It's a clear oversupply," Daukoru, president of the Organization of Petroleum Exporting Countries (OPEC) and Nigeria's energy minister, told reporters during a visit to the South Korean capital.

"If it continues like this, yes," he said, when asked about another round of cuts.

Commenting on the cuts already agreed by OPEC, Daukoru said: "You will not see it but we have taken action and probably into the middle of the month, you will believe us."

more

[ozymandius]

4. Oil slips below $59, shrugs off Nigeria attack

SINGAPORE (Reuters) - Oil prices rallied briefly above $59 a barrel on Monday after an attack on oil facilities in Nigeria, before shedding gains as traders said the risk of disruption had been priced in during a pre-weekend rally.

-cut-

An oil production facility at Tebidaba, in southern Nigeria, was attacked early on Monday, government and security sources said. The Tebidaba region feeds crude oil to the Brass tanker terminal, which exports about 200,000 barrels per day (bpd).

Prices had rallied on Friday when the U.S. consulate in Lagos warned a militant group may have imminent plans to launch a campaign of bombings and attacks on Nigerian oil infrastructure.

"It rose on a threat but the market has an attention deficit disorder -- so it's getting sold off," said Tony Nunan, a risk manager at Mitsubishi Corp. in Tokyo.

more

[ozymandius]

5. Wall Street awaits election results

NEW YORK - Investors will be looking to Washington in the coming week, not for more of the economic numbers that have weighed so heavily on the markets in recent weeks, but to determine whether the winners in Tuesday's midterm elections will pursue an agenda that could affect business interests.

Although professional investors are often viewed as politically conservative, Wall Street likes what many voters hate: gridlock. The Street likes to mitigate as many risks as possible, so a moribund, non-activist government is often seen as one less variable businesses must contend with.

-cut-

Wall Street will have more time to focus on the elections because fewer economic and earnings numbers are expected this week than during the past month. A few big names such as Cisco Systems Inc. and The Walt Disney Co. are scheduled to report.

more

[Kolesar]

7. Suppose that the high stock market valuations factor in a Democratic win

Both a Democratic realignment and the high market values have existed for weeks and months. The market obviously is fine with bush losing some power.

I don't like the way the article pulls up that old canard that "gridlock is good". Gridlock is not going to get the deficits and Medicare under control. Gridlock is not going to get us out of Iraq.

[54anickel]

20. Average Joe's cash woes cause election angst

http://www.chron.com/disp/story.mpl/business/4310246.html

snip>

"I just don't think that anybody in Washington is thinking about the interests of people in my family income bracket," Hicks, of Evansville, Ind., said.

snip>

"Honestly I don't think either one of them is going to help our situation," said Hicks, a registered independent who has voted for both Republicans and Democrats in the past.

The plight of the middle class is especially stark given that the stock market set records last month, corporate profits are up and top executive pay continues to rise.

"After 10 months of thousands of conversations with middle-class families, I can tell you that everything that's been said about the disconnect between Wall Street gains and Main Street struggles is true," said Irma Esparza, executive director of Communities United to Strengthen America, an advocacy group. "Middle-class families are paying attention to this election and they're tired of being squeezed."

snip>

The president's top economist, Edward Lazear, said tax cuts have helped raise the value of stocks, which many Americans hold in their retirement savings accounts.

However, many analysts — and many members of the nation's vast middle class — contend average wage earners have seen little benefit from the Bush tax breaks.

For example, the government's latest data show that less than half of the U.S. population owns stocks, either directly or through retirement savings plans, meaning most have received no direct benefit from rising stock prices.

more...

[AnneD]

47. Why do I keep feeling ...

we were sold a pig in a poke. I am investing a portion of my savings in stocks, but by all means not all of my retirement. It is way too important to put your egg in one basket.

[54anickel]

21. Wall St. to state: Feel free to borrow

http://www.latimes.com/business/la-fi-petrunox5nov05,1,2505434.column?coll=la-headlines-business

It's too bad that Wall Street isn't worried about the borrowing binge that California voters will be asked to approve Tuesday.

A little concern might translate into higher interest rates on the state's tax-free bonds, which many yield-starved investors no doubt would appreciate.

But the official line from the major bond-rating firms is that California can easily afford the five statewide bond measures on the ballot. Combined, Propositions 1B, 1C, 1D, 1E and 84 would authorize the issuance of $42.7 billion in general obligation bonds for an array of public-works projects.

That would add to $60 billion in state bond debt already outstanding and another $30 billion that voters have authorized but the state hasn't yet sold.

How much debt is too much? Fiscal conservatives say the state already owes too much and that adding on more obligations is folly. But professional bond market watchdogs — the people whose opinions count with big investors — aren't worried. And that's important for bond owners and potential buyers to understand.

more....

Aren't these the same Wall Street bond market gurus that the Treasury started meeting with regularly (and still are) in Snowjob's last days? I still remember that little blurb I posted from a Bloomberg article that I could never find again. Still bugs the crap outta me. :freak:

[modrepub]

22. Is the "fix" in???

No one can convince me that the Wall Street types want the Dems in power. So why is the market up so much...unless....

[Ghost Dog]

26. Economy smells like '70s stagflation

http://www.jsonline.com/story/index.aspx?id=526922

Take away the bellbottom pants and disco beat, and it's starting to look and sound a lot like the 1970s. Early in that lost decade, the U.S. was bogged down in an unpopular war of questionable strategic value that was sapping the nation's economic power.

On the home front, Americans (and the domestic auto industry) were caught off guard by a wicked surge in energy costs and were driving vehicles that made no sense from a fuel-efficiency standpoint. In offices and factories, productivity was ebbing, effectively lowering the rate at which the economy could grow without triggering unacceptable inflation.

The political rhetoric was unusually strident as well, with President Nixon's approval rating sinking amid scandal and stagflation.

Troubling sign

Though the stagflation part has yet to grip the current economy, there are worrisome indications that it could be only a matter of time before at least a mild form of it takes hold.

The most recent piece of evidence for "stagflation lite" concerns productivity, or the amount of goods and services that Americans produce for each hour worked. Over long periods, productivity is highly correlated to changes in living standards. When productivity increases rapidly, companies can pass on a larger share of profits to workers without raising prices. That enables the Federal Reserve to keep a lid on interest rates, adding still more non-inflationary fuel to the economic fire.

Given its overriding importance, it was distressing to note that productivity growth ground to a complete halt during the summer, even as unit labor costs - a possible harbinger of inflation - climbed at the fastest year-over-year pace since 1982.

/...

[54anickel]

41. Bonus Pay for Wall Street Big Five Surges to Record $36 Billion

http://www.bloomberg.com/apps/news?pid=20601087&sid=atEk12XYMerk&refer=home

Nov. 6 (Bloomberg) -- Never in the history of Wall Street have so many earned so much in so little time.

Goldman Sachs Group Inc., Morgan Stanley, Merrill Lynch & Co., Lehman Brothers Holdings Inc. and Bear Stearns Cos. are about to reward their 173,000 employees with $36 billion of bonuses. That's a 30 percent increase from last year's record, and it doesn't include the billions more that will be paid by Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co., the three largest U.S. banks, as well as the hundreds of hedge funds and private-equity firms that constitute the financial industry.

Enriched by the unprecedented value of takeovers, equity trading and credit derivatives, ``this year will be the best ever for the major brokerage firms,'' said Brad Hintz, an analyst at New York-based Sanford C. Bernstein & Co.

The average windfall for each individual at the five largest U.S. securities firms will be enough to buy a $165,000 Bentley Continental GT, the two-door coupe favored by Paris Hilton and Cher. They'll have plenty of change for a box of Romeo y Julieta cigars and a case of Pol Roger champagne -- the stuff enjoyed by Winston Churchill, Britain's prime minister in the 1940s and 1950s.

Credit-default swap specialists, who speculate on companies' ability to repay debt by trading financial instruments based on bonds and loans, won't be the only winners this year. New York City cut the estimate for its budget deficit by 87 percent last week, in part because of the investment banks' better-than- expected earnings. The state comptroller's office said Oct. 17 that tax receipts from the financial industry's wages will rise 14 percent to $2.4 billion in fiscal 2006.

more...

[Demeter]

6. Love That Cartoon--Now All We Need Is Some Melted Tar and a Rail!

[ozymandius]

8. Wall St set for buoyant start

LONDON (Reuters) - Wall Street stocks were expected to claw back up on Monday after the Dow registered its longest losing streak in a year, but the tone remains cautious ahead of U.S. mid-term elections and lingering economic slowdown concerns.

Oil majors were likely to be in focus as crude oil traded below $59 a barrel, while there was expected to be little market reaction to the court ruling sentencing ousted Iraqi leader Saddam Hussein to hang.

By 1114 GMT, U.S. stock futures were pointing to opening up 0.4 percent for the three main indexes.

-cut (to the end)-

However, Web search leader Google Inc. (Nasdaq:GOOG - news) and automaker General Motors Corp.(GM.N) were named as the market's most overvalued shares in its Big Money poll.

more

[UpInArms]

9. daily dollar watch

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

Last trade 85.88 Change +0.17 (+0.20%)

Next Up for the Dollar is the Mid Term Elections

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Next_Up_for_the_Dollar_1162594481984.html

US Dollar – After three weeks of near continuous losses, the US dollar managed to stage a very strong rally on the back of the non-farm payrolls release. Even though the number of jobs created in the month of October fell short of expectations, the market shrugged off the report and focused on the upward revision the prior month. These days, US data needs to be looked at on so many different levels and today’s NFP report was no exception. If you looked at the 92k print alone, it would seem that the US economy had another month of weak job growth. However, that is not true given the 97k upward revision in the month of September and the drop in the unemployment rate from 4.6 to 4.4 percent. With an average job growth of 120k over the last 2 months, the labor market remains tight. In contrast to the manufacturing sector, the service sector ISM index actually increased from 52.9 to 57.1, the highest level since May. However, the problem is that today’s move in the US dollar stalled right at a critical resistance level and the week ahead brings us a number of potentially dollar bearish news. Aside from speeches by a variety of Fed Presidents on the economic outlook, we also have the trade balance and the Mid-term elections. Given the rarity of the event, the Mid-term elections could have a meaningful impact on the currency markets. In all but one of the past six Mid-term elections, the US dollar has rallied in the 3 months afterwards. The common theme between each of these elections is the fact that it was a one-party majority win. The reason why this is perceived as dollar positive is because it allows for legislations to be easily passed and in this case, given that the Republicans control the majority of Congress, their one party majority win would be seen as pro business. However, if Democrats win over Republicans, the political gridlock would delay any legislation and potentially hold back government policy changes for the next two years. In this case, it would most likely be perceived as dollar negative.

...more...

The meme is continuing - Dems win - gridlock - negative. What horseshit. I grow weary with these hacks foolishness.

[UpInArms]

10. China forex reserves hit $1 trillion-TV

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-11-06T115059Z_01_PEK308264_RTRIDST_0_ECONOMY-CHINA-RESERVES-UPDATE-1.XML

BEIJING, Nov 6 (Reuters) - China's foreign exchange reserves have reached $1 trillion, Chinese state television said on Monday, citing sources with the foreign exchange regulator.

Already the world's largest, the reserves hit $987.9 billion at the end of September and have been expanding at such a rapid pace that they had been expected to surpass $1 trillion at any time.

The International Monetary Fund said earlier the reserves would top $2 trillion in 2010.

<snip>

Some government economists have recommended that China diversify its stockpile of reserves, much of which is parked in U.S. government debt, away from the dollar to guard against foreign exchange risks.

Analysts have cautioned that any major sell-off of dollar assets could cause the U.S. currency to plunge and have an adverse impact on global financial markets.

...more at link...

[ozymandius]

14. Jeebus. I though the Chinese were smart investors.

After all, they've realized the economic potential of embracing alternative energy and green renewables (unlike our squishy-brained Washington establishment).

But then they've loaded up on the very thing that will lose value: the U.S. dollar.

WTF indeed!

[Ghost Dog]

45. The moves to rebalance the international currency system

(ie, to a degree, away from the dollar's preponderance, towards the euro and maybe some others) need to be done, preferably, slowly, but surely. Otherwise all hell (even more hell) breaks loose.

The US, in any case, will have to take its medicine in order to become healthy again.

imho.

[jdog]

55. But....

as a defensive strategy against the US, having a vast amount of dollars they control could be used as a threat against the US to dump it - - triggering an economic crisis - true?

[54anickel]

24. Foreign exchange derivatives banned for speculation (China)

http://www.chinadaily.com.cn/china/2006-11/06/content_725801.htm

China's foreign exchange regulator warned on Sunday against the speculative use of foreign exchange financial derivatives because of the massive risks involved.

Risk evasion is the top priority in foreign exchange transactions, said an official with the State Administration of Foreign Exchange (SAFE). He said the derivatives market is developing, but is still very much in its teething stage and the risks are high.

Domestic institutions and individuals must get permission from the administration before using foreign exchange derivatives for any kind of overseas RMB transactions, including forward and swapping transactions, according to the latest notice issued by the SAFE.

The notice said banks should also provide financial products and services that shy away from RMB exchange rate risks.

Banks are now providing residents with better services for preserving their assets and dodging risk when they invest in foreign currencies, according to the notice.

more...

[54anickel]

29. Finance official says China needs derivatives products

http://www.taipeitimes.com/News/biz/archives/2006/11/05/2003334965

China needs derivatives products, including a deepening forwards market, to help companies hedge against risks as the yuan appreciates against the US dollar, Chinese Vice Finance Minister Lou Jiwei (¼ÓÄ~°¶) said.
"We need products to hedge against risks," Lou told a conference in Beijing yesterday. "Yuan gains will have a certain risk for companies. We should have a yuan forwards market."

The yuan rose for a second week on speculation that the central bank will let the currency strengthen further to prevent exports from increasing China's record trade surplus and foreign-exchange reserves.

The yuan rose 0.23 percent for the week to close at 7.8716 against the US currency in Shanghai, according to the China Foreign Exchange Trade System.

Chinese officials have repeatedly said the yuan's exchange rate will be loosened only gradually because the nation's banks and companies aren't ready to cope with a free-floating currency.

more....


Same article but from Bloomberg - leaves out some stuff, adds other stuff.

http://www.bloomberg.com/apps/news?pid=20601080&sid=axDuYFWDf0xw&refer=asia

snip>

China's State Administration of Foreign Exchange banned banks operating in the country from trading yuan derivatives in the offshore markets, according to a document dated Oct. 25 issued to lenders.

Foreign banks have been using offshore forwards to make bets on the yuan and avoid restrictions placed on onshore trades by the central bank. Domestic lenders have also been using the contracts, which are standardized and traded between global banks outside of an exchange. The document doesn't specifically refer to forwards trades or give a reason for the limits.

more...

[Ghost Dog]

27. Treasuries Decline as Fed Official Highlights Inflation Risk

http://www.bloomberg.com/apps/news?pid=20601009&sid=a98G6BpizCOc&refer=bond

Nov. 6 (Bloomberg) -- Treasuries fell for a third day as Federal Reserve Bank of Chicago President Michael Moskow said additional interest-rate increases may be needed to keep inflation in check.

Ten-year note yields climbed to the highest in more than a week. Traders trimmed bets the Fed will reduce its benchmark rate as soon as next quarter after the government on Nov. 3 said the jobless rate fell to a five-year low of 4.4 percent. Moskow is the first of three Fed officials speaking today.

``The Fed may still be in play,'' said Holly Liss, a bond salesperson in Chicago with Citigroup Global Markets Inc., one of the 22 primary dealers that trade with the Fed. ``It wouldn't surprise me if prices come off even further here.''

The yield on the benchmark 10-year note rose about 1 basis point, or 0.01 percentage point, to 4.73 percent at 9:26 a.m. in New York, according to broker Cantor Fitzgerald LP. Yields jumped by the most since July 2005 on Nov. 3 after the government released October labor data. The price of the 4 7/8 percent note due in August 2016 fell about 1/8, or $1.25 per $1,000 face amount, to 101 1/8.

Moskow, a non-voting member of the central bank's rate- setting committee, said ``the risk of inflation remaining too high is greater than the risk of growth being too low.'' He spoke to business leaders in Chicago. ``Some additional firming of policy may yet be necessary.''

/...

[54anickel]

34. Jawbonin' up the yields. n/t

[Ghost Dog]

32. Euro level no major problem - top EU official

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061106:MTFH63507_2006-11-06_15-42-49_L06450654&type=comktNews&rpc=44

BRUSSELS, Nov 6 (Reuters) - There are no major negative effects from the current levels of the euro versus other top currencies, a senior EU official said on Monday.

"What I would say is that the exchange rate issue is not a problem today per se, but developments in exchange rates are something we are going to have to keep a close watching brief on," said Xavier Musca, chairman of the bloc's Economic and Financial Committee.

/...

[ozymandius]

11. The Real Economy With Source Links To The Original Sources (great!)

You probably have seen many articles in the main-stream media expressing astonishment that most Americans don't seem to appreciate the "strong economy".

Below are some statistics about the not-so-strong economy that most Americans are faced. NOTE THAT ALMOST ALL OF THE NUMBERS ARE DOCUMENTED TO THE ORIGINAL SOURCE DOCUMENTS (PRIMARILY GOVERNMENT WEB SITES AND THE KAISER FAMILY FOUNDATION). So nobody can accuse you of pulling statistics out of the air or from some left-wing blog. The links also greatly help in keeping it up to date. Feel free to use any parts of it or the whole thing as you see fit without or with attribution as you desire.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x22798

[UpInArms]

12. Wal-Mart: A 'Reputation Crisis'

http://www.businessweek.com/print/bwdaily/dnflash/content/oct2006/db20061031_471519.htm

excerpt:

One of the most surprising targets of criticism, however, has been Wal-Mart (WMT). The retailer didn't have any hand in the ads attacking Ford. However, Wal-Mart did have Nelson on its payroll as a consultant, as part of the company's growing effort to burnish its own image. Shortly after the Ford ads aired, Reverend Jesse Jackson came out attacking Wal-Mart and demanded that the company sever its relations with Nelson. Two days later, Nelson bowed to the pressure and submitted a letter ending his relationship to the company.

"A Real Threat" It's been that kind of year for Wal-Mart. The Bentonville (Ark.)-based company has been pushing hard to improve its public image, at a time when its financial fortunes increasingly depend on it. It's come under heavy fire from workers and politicians, for everything from the low wages it pays workers to the small retailers it pushes out of business. That dark reputation has resulted in communities around the country taking on Wal-Mart, by trying to halt construction of new stores or forcing it to pay higher wages and benefits.

At the same time, the company is scraping for every dollar of sales it can get. On Oct. 30, Wal-Mart reported that estimated same-store sales for October rose a slim 0.5%, the smallest such increase in nearly six years (see BusinessWeek.com, 10/30/06, "Wal-Mart's 'Comps' Creep Lower"). Slow sales have resulted in Wal-Mart's stock going sideways for five years, a harsh situation for investors long accustomed to outsized returns.

<snip>

The Working Families group also hired the couple who published the "Wal-Marting Across America" blog. They were known only as Jim and Laura, and they drove cross-country in an RV to capture the stories of people they met in Wal-Mart parking lots. BusinessWeek.com first revealed that the Working Families group was paying for the RV, the gas, and the blog writings (see BusinessWeek.com, 10/8/06, "Wal-Mart's Jim and Laura: The Real Story").

The effort became notorious in the blogging community, where writers took Wal-Mart to task for tarnishing the reputation of blogs (see BusinessWeek.com, 10/17/06, "Wal-Mart vs. the Blogosphere"). When the Wal-Marting blog was exposed, a Wal-Mart spokesman said, "It was a Working Families for Wal-Mart initiative, and we didn't have anything to do with it." Edelman's CEO issued a mea culpa and took full responsibility for the mess.

Losing Support How much of Wal-Mart's problem is style and how much substance? The answer is unclear at this point. However, at least some consumers are no longer shopping at the company's stores because of its reputation. According to a study by the consulting firm McKinsey & Co. for Wal-Mart, 2% to 8% of the company's customers have stopped shopping there, "because of negative press they have heard." Reputation is even more important as the company pushes upscale, trying to sell everything from organic food to high-end apparel, through its Metro 7 line. So far these initiatives have failed to ignite sales as much as the retailer hoped.

...more...

[AnneD]

16. Morning Marketeers...

:donut:and lurkers. This couldn't happen to a nicer group. For years this group has nickeled and dimes their way across the American landscape. Perfectly good American companies making perfectly good American products at a reasonable price have been frozen out because they haven't agreed to Wal Mart's price (Scott's comes to mind). They thought they were so big they could boss everyone around, from employees on up. Well, much like today's toon, the chickens have come home to roost, and frankly, my give a damn is busted. Their consumers are the poor ans lower middle class. They have precious little left these days, and with gas prices going up, it will only get worse. The only thing that will help is a raise in the minimum wage. Until then, I'll drive out of my way to shop Costco.


Happy hunting and look out for the bears.

[54anickel]

19. I'd give my kingdom for a Costco in our state! Then again I don't have

one so I guess I'll have to do with neither.

[54anickel]

18. Heh-heh, Just saw a flyer from Sam's the other day. It was a mini

catalog sort of thingie showing off some of that high-end stuff. Some of the items were like those in the airline magazines. $33K walk-in wine cooler, a $177K Super Bowl package and a $44K see Tony Bennet in London package. Fancy pet beds, china and crystal - just a lot of strange stuff for a Sam's flyer. I asked my friend if they've upped her credit limit on her Sam's card yet. :evilgrin:

[AnneD]

49. Much has been made about Texas being red.....

but it looks pretty blue to me. I will be getting a Costco near me, I'm happy.

[ozymandius]

13. pre-open blather

08:30 am : S&P futures vs fair value: +4.3. Nasdaq futures vs fair value: +7.5. Aside from what appears to be a reflex action to last week's dip in the market, resurgence in M&A activity is lending additional market support. Four Seasons Hotels (FS) has received a management-led buyout offer valued at $3.7 bln while Abbott Laboratories (ABT) has offered to pay a 56% premium (or $3.7 bln) for Kos Pharmaceuticals (KOSP). A private equity group has offered $3.2 bln for OSI Restaurants (OSI), McKesson (MCK) agreed to acquire Per-Se Technologies (PSTI) for $1.8 bln and Swift Transportation (SWFT) has received a letter from its largest shareholder to take it private for roughly $2.2 bln.

08:00 am : S&P futures vs fair value: +4.0. Nasdaq futures vs fair value: +5.8. Futures versus fair value suggest stocks will kick off the week on a positive note. While there are no specific market-moving news items to account for the bullish disposition, a sense that last week's pullback was unwarranted is attracting early bargain-hunting interest, positioning the Dow to snap a six-session losing streak. Last week broke a five-week winning streak for all three major averages.

[ozymandius]

15. Abbott Buys Kos Pharma for $3.7 Billion

Health care products maker Abbott Laboratories on Monday said it will acquire the drugmaker Kos Pharmaceuticals Inc. for about $3.7 billion in cash to expand it cholesterol drug holdings.

Abbott plans to buy Kos for $78 per share, a 56 percent premium on its closing price Friday at $50.09 on the Nasdaq Stock Market.

Kos, based in Cranbury, N.J., is a specialty drugmaker whose main product is Niaspan, which raises levels of "good" cholesterol. Kos booked 2005 revenue of $751.7 million.

http://www.forbes.com/business/businesstech/feeds/ap/2006/11/06/ap3147701.html

[ozymandius]

17. This just in: stocks are up, a little

9:46
Dow 12,009.81 Up 23.77 (0.20%)
Nasdaq 2,343.64 Up 12.85 (0.55%)
S&P 500 1,368.58 Up 4.28 (0.31%)
10-Yr Bond 4.729% Up 0.014
NYSE Volume 193,673,000
Nasdaq Volume 146,851,000

09:40 am : After posting their first down week since late September, stocks are bouncing back and kicking off a new week on an upbeat note. As a reminder, worries about the severity of economic growth provided an excuse last week for investors to take some money off the table following five consecutive weeks of gains for all three major averages. Helping to dispel some of those fears about a significant economic slowdown and offering an added sign of confidence has been a plethora of M&A deals this morning. Such activity is getting added attention since there are no scheduled economic reports to potentially raise more red flags about economic expansion and leaving investors questioning the sustainability of a three-month rally in stocks.DJ30 +31.26 NASDAQ +14.63 SP500 +5.10 NASDAQ Vol 92 mln NYSE Vol 54 mln

[Ghost Dog]

28. Bulls Follow the Money

http://www.smartmoney.com/bn/index.cfm?story=20061106092205&src=fb&nav=RSS20 (sic)
By Igor Greenwald Published: November 6, 2006 11:02 AM

THE LATEST display of affection for common stocks by bullish billionaires and lesser moguls roused the market Monday after a winless week.

With the bulk of another strong earnings season in the bag and the lowest jobless rate since 2001 casting doubts on the preceding string of glum statistics, the focus shifted to the seemingly bottomless pool of private funds earmarked for equities. The new crop of lucrative deals took the edge off the wait for the results of Tuesday's midterm elections.

...

Overseas markets moved broadly higher, with Hong Kong and Madrid setting new records. Crude rose to almost $60 a barrel.

/...

[54anickel]

23. ‘Panic selling’ hits derivatives market (hidden behind subscription)

https://registration.ft.com/registration/barrier?referer=&location=http%3A//www.ft.com/cms/s/873249b6-6ce3-11db-9a4d-0000779e2340.html

Investment banks and hedge funds are being forced to rapidly adjust their trading strategies amid a wave of reported “panic selling” in the US and European credit derivatives market last week.

This heavy selling has driven the cost of insuring debt against default in the market for credit default swaps to record low levels – signalling either that investors are extraordinarily optimistic about the outlook for corporate debt, or that prices are so distorted that they are no longer being paid for the risks they are taking on.



Oh wait, just found this one....

http://www.financialnews-us.com/?page=ushome&contentid=1046632440

Investment banks and hedge funds are being forced rapidly to adjust their trading strategies amid reported "panic selling" in the US and European credit derivatives market last week.

This heavy selling has driven the cost of insuring debt against default in the market for credit default swaps to record low levels - signalling either that investors are very optimistic about corporate debt or that prices are so distorted that they are not being correctly paid for risk.

The unexpected price swings are believed to have caused pain at some big investment banks and hedge funds, some of which are reportedly now being forced to sell to cover their loses, exacerbating the market swing.



I'll keep digging.

[54anickel]

31. Credit model meltdown

http://www.risk.net/public/showPage.html?page=351397

Dealers are trading increasingly high volumes of bespoke tranches of synthetic credit risk with each other, yet there still appears to be little consensus on the application of credit models. Is there a danger the house of cards may come tumbling down?


The credit derivatives market is growing at a pace unprecedented in financial markets. From a non-existent business 10 years ago, the value of outstanding notionals stood at more than $26 trillion as of June, according to the latest survey from the International Swaps and Derivatives Association. That's more than four times the size of the over-the-counter equity derivatives market.

The development of the market has proven to be a major boon for loan portfolio managers that can synthetically sell on their over-concentrated exposures to reduce counterparty risk. And the fusion of derivatives technology and credit derivatives has offered end-investors the opportunity to purchase customised credit portfolio exposures at pre-specified risk/reward trade-offs. To provide these bespoke portfolios, dealers have delta-hedged their exposures using single-name credit default swaps (CDSs), credit indexes and index tranches.

In fact, the engine of growth in the credit derivatives market has been in the use of indexes. A Fitch Ratings study published in September says trades related to indexes and index-related products grew by 900% in 2005 to $3.7 trillion by the end of that year.

snip>

So what is driving these large-scale increases in volumes and the contraction in spreads? According to the BBA, hedge funds and bank proprietary desks, rather than loan portfolio managers or long-term real-money investors, are primarily responsible for the increase in full index and tranche index products. Much of that can be attributed to the hedging of bespoke tranches sold to investors.

The hedging activities based on the model requirements of bespoke trades are significant. That means dealers active in the bespoke market need to be extremely confident in their deployment of credit models. As David Benichou, a portfolio manager at structured credit hedge funds Avendis Capital in Geneva, says: "Active dealers believe in their models. If they didn't, then they shouldn't trade in structured credit."

snip>

"We worry about how much the apparent liquidity in the credit derivatives market is being driven by structured trades," says a New York-based senior risk manager at a US securities dealer. "Our sense is the active trading of structured credit is actually confined to a fairly small number of market participants. There are not hundreds and hundreds of people trading tranches. Quite a lot of that trading actually happens on banks' proprietary desks as far as we can see, and that's a little weird."

more...

[specimenfred1984]

43. Great articles and links

There's a real education in there for people who are unfamiliar with derivatives.

[54anickel]

60. Rather alarming stuff there. You used to hear a lot of noise about the

danger of derivatives a few years ago, then Greenspin started singing their praises followed by silence. Gotta wonder how deep the fault lines are running and when we'll feel the after-shocks.

I notice the Feds issued a $10.75bn overnight repo today. That's the largest 1 day in a quite a while. :shrug:
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE

[54anickel]

25. Dura CDS settlement protocol due Wednesday (Testing, testing - hey

do ya think this could work?) :eyes: I think we are soooooo f'd. :scared:

http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-11-06T154606Z_01_L06398127_RTRIDST_0_MARKETS-DERIVATIVES-DURA.XML&rpc=66&type=qcna

LONDON, Nov 6 (Reuters) - A protocol for settlement of credit default swaps on bonds of bankrupt U.S. auto supplier Dura Automotive Systems will be launched on Wednesday, the International Swaps and Derivatives Association said on Monday.

Investors will have until Nov. 17 to sign up to the protocol, which will for the first time include physical or cash settlement of single name and tranche default swaps, as well as the index trades catered for in previous protocols.

The protocol is the latest attempt by the credit derivatives industry to standardise settlement of credit default swaps, sales of which have outstripped their cash bond counterparts.

snip>

Some banks have attacked the cash settlement procedure, arguing the auction process is vulnerable to manipulation, but the latest protocol gives investors the option to opt out of the protocol should they so wish.

If the auction is deemed a success the protocol is likely to remain in place as an option for future defaults, with a move toward incorporating it permanently in ISDA definitions likely in the medium term, bankers say.

"We are moving toward an industry standard, with perhaps a couple more refinements of the process still to come," said Gunnar Stangl, head of index strategy at Dresdner Kleinwort. "We are 90 percent there."

more...

[Ghost Dog]

30. Greenspew: more housing weakness ahead, worst over

http://asia.news.yahoo.com/061106/3/2sffn.html

WASHINGTON (Reuters) - The U.S. housing market will weaken further, but the sharpest decline is over as inventories of unsold homes decrease, Former Federal Reserve Chairman Alan Greenspan said on Monday.

"This is not the bottom, but the worst is behind us," Greenspan said at a conference organized by financial services firm Charles Schwab.

Greenspan retired from the U.S. central bank in January, but his comments have still had the power to move markets.

A decline in U.S. home sales and construction has contributed to an overall slowing of economic growth to 1.6 percent in third quarter. But Greenspan said housing activity is likely no longer to be a drag on overall economic growth as unsold inventories clear out and stabilize against sales levels.

The former central banker said he is "reasonably confident" the United States will not slide into recession because businesses appear to be strong, as evinced by strong corporate profit margins and healthy levels of capital investment.

/...

[54anickel]

37. More jawbonin'. I couldn't get the link to work but found this one

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyID=2006-11-06T155908Z_01_WBT006171_RTRUKOC_0_US-ECONOMY-GREENSPAN.xml

Interesting midterm poll at that link as well....

http://elections.us.reuters.com/polls/?src=int_CMS_userpoll_oct2006

[AnneD]

50. Those ARM's

will adjust in a few months. I don't think we have seen the beginning of the housing slump yet....or I'll be a surprised economist.

[wordpix]

51. how does Greenspew know "the worst is behind us?" Does he have a crystal ball?

:crazy:

[Ghost Dog]

33. European stocks rise as earnings impress

http://www.ft.com/cms/s/80e1cab4-6d74-11db-8725-0000779e2340.html

European equities markets were lifted on Monday as investors welcomed upbeat earnings news and a further session of oil prices remaining below $60 a barrel.

By midday, the FTSE Eurofirst 300 was up 0.6 per cent to 1,457.24, while Frankfurt’s Xetra Dax gained 0.7 per cent to 6,283.74, the CAC 40 in Paris added 0.6 per cent to 5,365.88 and London’s FTSE 100 climbed 0.8 per cent to 6,194.2.

/...

[Ghost Dog]

38. European bourses close strongly as insurers rally

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39027.4952430556-884159129&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

Bid rumours and strong earnings reports drove gains for European equity markets on Monday as sentiment recovered following the previous week’s losses. The FTSE Eurofirst 300 index gained 1.1 per cent to 1,463.96 in closing exchanges, extending its rally after US stocks opened in positive territory.

Ryanair, the Irish “no-frills” airline, cheered the market with its quarterly earnings, adding that it had used recent oil-price weakness to extend its hedging against fuel costs. The shares gained 3.6 per cent to €9.2 after the company announced a forecast-beating 23.7 per cent rise in its second-quarter net profit, and raised its outlook for the full year.

Insurers were among the top performers as brokers were out in force in support of Germany’s Allianz following its better-than-expected results on Thursday. Credit Suisse said it was raising its target price from €157 to €171. “The group is to reduce its equity leverage over the next 24 months, by selling equities,” said analyst Robin Mitra. Spencer Horgan at Deutsche Bank raised the target from €159 to €171 and said, simply: “It is becoming less and less surprising for Allianz to surprise.” Allianz shares gained 2.7 per cent to €147.80 as Merrill Lynch, UBS and Lehman Brothers voiced their approval also.

In Germany the Xetra Dax 30 closed up 1.4 per cent to 6,330.65 while the French CAC 40 gained 1.2 per cent to 5,402.36.

/.

[Ghost Dog]

39. FTSE flirts with fresh 5-year highs

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39027.4928356481-884159068&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

London equities moved sharply higher on Monday amid strength in the mining sector and renewed M&A activity.

With metal prices rising, Vedanta Resources rose 2.9 per cent to £15.07, BHP Billiton firmed 3.2 per cent to £10.59 and Kazakhmys gained 1.8 per cent to £12.36. The gaming sector was at the centre of takeover speculation, as Ladbrokes, the bookmaker, confirmed it was interested in buying troubled online gaming company 888 Holdings. Ladbrokes firmed 2.6 per cent to 420.3p, 888 jumped 9.1 per cent to 120p while fellow internet gamer PartyGaming was 4.6 per cent higher at 28.8p on hopes it could still get involved. Meanwhile, bid target London Stock Exchange rose 1.2 per cent to £12.68 amid reports it has held talks with the Tokyo Stock Exchange about a potential alliance. Observers expect the LSE to produce its strongest earnings since its 2001 floatation when it report interims on Wednesday. EMI Group, the music company, advanced 4.3 per cent to 282p amid speculation that a management buy-out was on the cards.

The benchmark FTSE 100, which had flirted with fresh five-year highs in afternoon trade, eventually closed up 76.4 points, or 1.2 per cent, to 6,224.5, its highest close since February 2001. The mid-cap FTSE 250 rose 110.8 points, or 1.1 per cent, to 10,495.4.

/.

And... Who says all this could have little to do with the prospect of (relative) regime-change in the USA tomorrow...?

[54anickel]

40. European banks can't match their U.S. peers

http://www.marketwatch.com/news/story/story.aspx?siteid=mktw&guid=%7B90F4EE37-BB61-4654-B846-21F1501BD8A4%7D

LONDON (MarketWatch) -- In the battle of the investment-banking titans, there's no doubt the U.S. heavyweights were this earnings season's winners.

After strong results from U.S. investment houses, hopes had been high for a similar showing in Europe, but some disappointing data has left investors questioning why European firms weren't able to match their U.S. peers.

The answer may well rest in different attitudes on either side of the Atlantic towards risk, exposure to rampant commodities markets, and may also be linked to Europe's long, long summer break in August.

"The Americans have tended to have a broader range of businesses historically," said Jon Peace, an analyst at Fox-Pitt, Kelton in London.

snip>

Analysts said the European results don't necessarily mean U.S. traders are better at their jobs, but could reflect a wider breadth of products and experience and, in some cases, a different attitude to trading risk.

snip>

The Americans and Europeans may also differ on their tolerance to risk.
"There are some U.S. banks -- Goldman Sachs springs to mind -- that have consistently taken big bets, and been very successful," said Clark.

more...

[Ghost Dog]

35. HK blue chips hit record, H-shares near life high

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=hongkongMktRpt&storyID=2006-11-06T081720Z_01_HFB077776_RTRIDST_0_MARKETS-HONGKONG-STOCKS-UPDATE-3.XML&WTmodLoc=InvArt-C1-ArticlePage1-3

HONG KONG, Nov 6 (Reuters) - Hong Kong blue chips rallied 1 percent to a record close, led by China Mobile (0941.HK: Quote, Profile, Research), while Sinopec (0386.HK: Quote, Profile, Research) set a new high, driving the index of Hong Kong-listed shares in mainland companies near its record.

The benchmark Hang Seng index <.HSI> ended at 18,936.55.

The China Enterprises index of H-shares <.HSCE>, or Hong Kong-listed shares in mainland companies, gained 1.3 percent to 7,715.73, or about 0.4 percent of its record set more than nine years ago.

/.

[specimenfred1984]

36. I love the smell of fraud in the morning!

It smells like a gay meth whore who just got off the phone after his Monday morning White House inspirational.

Mergers sure are bullish, until tomorrow when they're not. Too bad people with I.Q.s over 50 can't just have "faith" in these "miracles".

[Ghost Dog]

42. The Arms Market and the Arms Race

http://www.globalresearch.ca/index.php?context=viewArticle&code=TRE20061105&articleId=3709

...

The total international arms trade has been increasing rapidly, in 2005 reaching an all-time high in current dollars of $44.2 billion (from $38.9 billion in 2004). The United States is the world’s leading conventional arms exporting nation, accounting for about 29 percent of all international arms trade. Last year, in 2005, it exported $12.8 billion of military gear of all sorts, about half of it ($6.2 billion) going to developing nations. The other main arms exporting nations last year were France (second with $7.9 billion in total arms sales) and Russia (the third exporter, with $7.4 billion in total sales). The United Kingdom and China came in behind, with $2.8 and $2.1 billion in arms exports in 2005. Overall, however, the 25 countries of Western Europe surpass the U.S. in trade of armaments, with about 44 percent of total arms exports. The other two non-Western countries, Russia and China, are responsible respectively for about 17 percent and 5 percent of total world arms exports.

Such a large-scale trade in armaments has the expected consequences of fueling regional conflicts, when they are not solidifying undemocratic and abusive regimes. It also has the effect of increasing poverty in countries that are already poor. But is it realistic to want to reduce arms exports without at the same time attempting to reduce military production?

Indeed, the fundamental cause of the flourishing international trade in armaments is the large military establishments that industrial countries subsidize year after year. The Stockholm International Peace Research Institute has estimated that total world military expenditures, (which had been falling from 1991 to 1996), are on the rise again, especially since 2001, and amounted to $1,118 billion in current dollars, in 2005, or 2.5 per cent of total world production, or again, about $173 per capita. This is big business and it can only be sustained with the threat of oncoming armed conflicts or through arms exports to countries in turmoil.

The USA is responsible for close to half (48% in 2005) of all military expenditures in the world. It is, therefore, not surprising that it is also the largest arms exporter and that many of its industries are reluctant to loose (sic - ed.) such a lucrative business. Fourteen other countries account for about 36 per cent of global military expenditures, with such countries as Russia, UK, France, Japan and China, each spending about 4 to 5 per cent of the total. In other words, the five nuclear members of the U.N. Security Council (USA, Russia, China, U.K. and France) are also the world's largest military spenders —Therefore, it is only normal that leadership on this matter should originate from this quarter.

/...

[54anickel]

44. Stocks Advance in Midday Trading

http://biz.yahoo.com/ap/061106/wall_street.html?.v=21

NEW YORK (AP) -- Merger news drove Wall Street higher Monday as private-equity buyout offers for companies including Four Seasons Hotels Inc. and OSI Restaurant Partners Inc. revived the belief among investors that stocks are not generally overvalued.

The rise in stocks came a day ahead of the U.S. midterm elections, which many polls forecast will result in gains for the Democrats. The prospect of a shifting power didn't seem to unnerve investors.

"I think what you're seeing on the tape is a reflection of the amount of money that has been raised in the private equity pools and that money is starting to go to work," said John O'Donoghue, co-head of equities at Cowen & Co.

snip>

O'Donoghue believes investors will be examining valuations of stocks to see whether they are too low because the latest buyout offers carry hefty premiums for some companies.

Interest in private equity deals has increased as costs public companies face for regulatory compliance has increased, in large part due to legislation aimed at curbing high-profile scandals seen in recent years such as the one that eventually felled Enron Corp. In addition, many private equity firms see opportunity in taking a company private, improving operations and reaping the windfall if a company is again taken public.

more...

[ozymandius]

46. to the moon

2:43
Dow 12,091.94 Up 105.90 (0.88%)
Nasdaq 2,367.11 Up 36.32 (1.56%)
S&P 500 1,378.99 Up 14.69 (1.08%)
10-Yr Bond 4.713% Down 0.002
NYSE Volume 1,789,243,000
Nasdaq Volume 1,410,833,000

2:30 pm : Stocks continue to hold their own and sport substantial gains for the day as the bulk of sector leadership remains positive. Utilities (-0.7%), though, is still failing to take part in today’s rally, even as the Treasury market turning positive bodes well for rate-sensitive stocks. To wit, Independent Power Producers (-5.1%) is the day’s worst performing S&P industry group after TXU Corp (TXU 56.55 -6.69) lowered its fiscal 2007 EPS guidance and following an analyst downgrade on Duke Energy (DUK 30.57 -0.52). The sector is also lagging as its defensive characteristics become less appealing compared to higher growth areas like Tech (+1.4%), Financials (+1.3%) and Health Care (+1.1%). DJ30 +103.08 DJUA -0.9% NASDAQ +32.92 SP500 +13.78 NASDAQ Dec/Adv/Vol 1013/1973/1.31 bln NYSE Dec/Adv/Vol 883/2326/982 mln

[54anickel]

52. Boldly going where no man has gone before - and returned to tell about it.

[54anickel]

54. Ozy, how much of this is money being spooked out of derivatives?

Stocks up here and overseas, money flowing into Treasuries despite the jawbonin' today....I dunno, something's spooking money into seeking shelter and I doubt it's tomorrow's election. :shrug:

[VegasWolf]

48. The day before the election! I'm guessing the Dow will close up at least 150

points. The sheep will eat this up!

[Ghost Dog]

53. So, these markets apparently not afraid of forthcoming Dem Congress

and maybe Senate.

QED.

[AnneD]

56. I'm interested to know...

how much of the election they can fix. Tomorrow should be an interesting day. Stocks might be fairly dormant-but be ready Wednesday. Remember, if you haven't done early voting, go out and vote. Take someone with you.

[UpInArms]

57. Closing with Dem Win Priced In

Dow 12,105.55 119.51 (1.00%)
Nasdaq 2,365.95 35.16 (1.51%)
S&P 500 1,379.78 15.48 (1.13%)
10-Yr Bond 4.709% 0.006

NYSE Volume 2,533,548,000
Nasdaq Volume 1,964,557,000

After witnessing their first down week since late September, the pendulum swung back to favor the bulls Monday amid resurgence in M&A activity, some upbeat Fed speak and strong sector leadership.

The absence of potentially disruptive economic reports also gave investors the green light to get back into equities, especially since so much weaker than expected data of late have prompted investors to question the sustainability of market gains.

The Dow snapped a six-day losing streak while the S&P 500 and Nasdaq posted their biggest one-day increases since October 12.

Just four days after reports showed private equity firms set a new record for fund raising ($178 bln), several firms went on a shopping spree Monday. Among the most notable deals was the proposed $3.7 bln buyout bid for Four Seasons Hotels (FS 82.31 +18.44). The deal includes investors ranging from current CEO Isadore Sharp to Saudi Prince Alwaleed Bin Talal and Microsoft (MSFT 28.86 +0.13) Chairman Bill Gates.

In addition to a renewed focus on hotels as potential takeover targets, the Consumer Discretionary got an additional lift from restaurants. After consulting with Wachovia Securities (WB 55.16 +0.86), OSI Restaurants (OSI 39.75 +7.32) agreed to be taken private for roughly $3.0 bln.

A $2.2 bln offer for Swift Transportation (SWFT 29.85 +5.80) that includes backing from Morgan Stanley (MS 76.15 +1.87) also helped to renew optimism that more M&A deals are on the horizon, providing a floor of support for the broader market and especially the brokerage firms positioned to benefit. To wit, Financials provided some influential leadership and got some added support late in the day as Treasuries turned positive. As a reminder, the 10-year note on Friday plunged 30 ticks, the biggest decline since July 21, 2005, lifting its yield to 4.71% and taking a toll on rate-sensitive stocks.

Other M&A announcements included Abbott Laboratories' (ABT 47.45 -0.19) $3.7 bln bid for Kos Pharmaceuticals (KOSP 77.06 +26.97) and McKesson's (MCK 49.61 +1.09) $1.8 bln offer for Per-Se Technologies (PSTI 27.50 +3.05).

Of the nine sectors closing higher, Technology paced the way to the upside, getting a big boost from bellwether Cisco Systems (CSCO 24.68 +0.91). The stock, which is also a suggesting holding in the Briefing.com Active Portfolio, surged 3.8% and hit an intraday 52-week high ahead its Q1 report on Wednesday.

Even Energy participated in Monday's broad-based rally. Crude for December delivery, which was off more than 1.0% at $58.50/bbl early on after threats of attacks on oil facilities in Nigeria failed to materialize, closed up 1.6% at $60.07/bbl. Aside from some short covering, OPEC suggesting some members may take further action to reduce output at the December meeting if the market doesn't become more balanced provided a floor of support for the commodity. Fortunately for the bulls, the Energy sector took notice and, because of its leadership as a large contributor to the overall earnings picture on the S&P 500, helped investors temporarily look past oil's potential to sustain inflation pressures.

Providing an additional vote of confidence that left investors less anxious about Tuesday's midterm elections were comments from Chicago Fed President Michael Moskow. Albeit a non-voting Fed official this year (he votes in 2007), Moskow's hawkish remarks took a back seat to the market's preoccupation with economic growth. As a result, Moskow saying that he does "not see the slowing in housing markets spilling over into a more prolonged period of weakness in the U.S. economy overall," lent some additional relief and eased concerns about the severity of the economic slowdown. BTK +1.2% DJ30 +119.51 DJTA +1.8% DJUA -0.5% DOT +1.6% NASDAQ +35.16 NQ100 +1.7% R2K +1.4% SOX +1.8% SP400 +1.1% SP500 +15.48 XOI +1.3% NASDAQ Dec/Adv/Vol 922/2152/1.82 bln NYSE Dec/Adv/Vol 805/2469/1.38 bln

3:30 pm : Stocks continue to put together an impressive advance as sellers are few and far between. On the heels of its longest sell-off since June 2005, the Dow is now up more than 1.0% on the session and looks poised to snap a six-day losing streak. Of the 29 Dow components trading higher, 18 are up at least 1.0% and four (e.g. DIS, IBM, MSFT, and XOM) are hitting 52-week highs. DJ30 +127.67 NASDAQ +38.67 SP500 +16.47 NASDAQ Dec/Adv/Vol 880/2146/1.56 bln NYSE Dec/Adv/Vol 788/2467/1.18 bln

3:00 pm : The market is showing no signs of slowing as traders make their way into the final hour of trading. To wit, all three indices have more than erased last week's modest declines, led by a 1.5% surge on the Nasdaq. Two of the tech-heavy Composite's biggest gainers are actually health care (e.g. KOSP +54%) and transportation (e.g. SWFT +24.5%) related amid M&A announcements. XM Satellite Radio Holdings (XMSR 13.18 +1.79) is also among the Nasdaq's best performers after it posted a narrower than expected Q3 loss.DJ30 +105.08 NASDAQ +35.71 SP500 +14.44 NASDAQ Dec/Adv/Vol 935/2074/1.42 bln NYSE Dec/Adv/Vol 818/2398/1.07 bln

By the time I post tomorrow, I will have cast my vote - Yeehaw! It's time to kick those bastards out!

:dem:

[Roland99]

58. One observation about restaurants....

I've gone out to eat with my daughters several times lately. My new job is affording me this luxury.

However, one thing I've certainly noticed is that the prime times of dinner (6-8pm) which used to have 45-90min. waits at most restaurants near where I live now only have 15-30min. waits, if that.

Are more people staying at home and eating in?

[54anickel]

59. Wall St., if the Democrats win

Republicans could very well lose the House and possibly the Senate, too. Here's what that means for investors.

http://money.cnn.com/2006/11/06/markets/markets_election2/index.htm

NEW YORK (CNNMoney.com) -- With strong earnings, lower oil prices and a slowing economy to focus on, stock investors haven't exactly been paying attention to Tuesday's congressional elections. But maybe they should be.

Various reports indicate the Republicans are in danger of losing 20 to 35 seats - and their majority - in the House. In the Senate, the GOP is expected to lose at least four seats, in which case they would still be in control, or as many as six, which would swing the Senate to the Democrats.

snip>

In the short term, a change in control of at least one of the chambers of Congress would probably spark a stock selloff, investors and market experts said.

That's because traditionally Republican Wall Street would seem to prefer to have Republicans in control of Capitol Hill as well as the White House since the party's policies are widely viewed as more big business friendly.

Should the Republicans hold on to both chambers of Congress, "we can anticipate an upward - though likely short-lived - trend" in the market, said David Leblang, a political science professor at the University of Colorado, Boulder.

But in the long term, having either party in full control is not necessarily a good thing. In fact, in the long term, "the market actually likes the executive and legislative branches under different leadership as it reduces any damage coming out of Washington," said John Davidson, president of money manager PartnerRe Asset Management.

snip>

Plus, as the old Wall Street saw suggests, markets hate uncertainty and this election is dripping with it.

more.....everything's good for the stock market - nuttin' to worry about folks - move along