STOCK MARKET WATCH, Friday November 10

[ozymandius]

Friday November 10, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 801 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2144 DAYS
WHERE'S OSAMA BIN-LADEN? 1850 DAYS
DAYS SINCE ENRON COLLAPSE = 1811
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 9, 2006

Dow... 12,103.30 -73.24 ( -0.60%)
Nasdaq... 2,376.01 -8.93 (-0.37%)
S&P 500... 1,378.33 -7.39 (-0.53%)
Gold future... 636.80 +18.50 (+2.91%)
30-Year Bond 4.73% +0.00 (+0.06%)
10-Yr Bond... 4.63% UNCH (UNCH)






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 Martin Goldberg

THE VALUE OF TECHNICAL ANALYSIS

Part of the October 21, 2006 “Big Picture” internet broadcast transcription spoke to technical analysis and technicians in a manner that gave this technician some pause to consider and speak critically to some of the points that were made. My purpose tonight is to provide some context toward the value or lack thereof of technical analysis. As a successful investor with roots as a value investor, there is value in technical analysis – especially in today’s market, which is especially short on actual value.

“JIM: Well, let’s take for example, technical analysis – let’s take reading the charts. What I find with technical analysis is that an investor can interpret charts almost anyway he wishes. So, for example, you can read the formations just about any probable result you would hope for. For example, if you’re bullish at heart on the market, you are more likely to interpret the charts optimistically. If you’re bearish you’re more prone to see bearish patterns in the charts.… Well, with all due respect to technicians, I firmly believe that technical analysis will never completely enable people to overcome their inherent traits of –once again – their emotions: hope, greed, pride of an opinion, and similar human feelings that we see that make successful investing one of the most difficult to master...And a lot of times simply what the charts are telling you is sometimes that consensus of opinion, but other times you can interpret charts in so many different ways. That’s why I tend to rely more on fundamentals on the reasons I base my investment decisions.”

Indeed, Jim is correct that an investor can interpret charts almost any way he wishes. Of course in a similar manner, one can interpret a company’s fundamentals any way too; but these interpretations, if not correctly applied, can result in extremely dangerous investments. Technical analysis provides a distinct advantage over fundamental analysis because technical analysis enables one to clearly and objectively establish if and when their analysis fails. But at what point does one throw in the towel on an incorrect fundamental analysis? Without the safety of technical charts and sound technical analysis, the analyst in left with only their emotions, hope, greed and pride of opinion as a guide. In my views, such “tools” are terribly inadequate in a grossly overvalued stock market.

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

[ozymandius]

2. Oil prices drop below $61 a barrel

VIENNA, Austria - Oil prices fell Friday after jumping above $61 a barrel the previous day in reaction the leadership change in the U.S. Congress and amid reports of an increase in fourth-quarter global energy demand.

The International Energy Agency forecast a 2.6 percent jump in fourth-quarter global energy demand, citing high consumption in the United States. The Paris-based IEA said U.S. consumption is accentuated by the comparison to a year ago when the impact of Hurricane Katrina and mild weather curbed demand.

The IEA also said that demand for oil from the Organization of Petroleum Exporting Countries was expected to rise 1.6 million barrels a day, due to lower output from non-
OPEC countries.

The outlook points to tighter market conditions and higher prices just as OPEC oil production cuts announced in late October take effect.

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

[ozymandius]

3. Oil down 1 percent after surge

TOKYO (Reuters) - Oil prices fell 1 percent on Friday as dealers took profits from the previous day's surge, while the West's energy watchdog said a tighter fourth quarter would follow the biggest third-quarter stockbuild in 15 years.

In its monthly oil market report, the International Energy Agency (IEA) left its forecast for oil demand growth next year unchanged at 1.45 million barrels per day (bpd), but said demand would rise by 2.4 million bpd in the fourth quarter of this year versus the third, 400,000 bpd more than it had expected.

It also said that inventories in OECD nations had risen at a rate of 1.15 million bpd during the course of the third quarter, the highest third-quarter build since 1991.

U.S. light, sweet crude for December deepened earlier losses to stand 56 cents lower at $60.60 a barrel by 0941 GMT, eroding nearly half of Thursday's sharp gains. London Brent crude fell 61 cents to $60.71 a barrel.

http://news.yahoo.com/s/nm/20061110/bs_nm/markets_oil_dc_3

[ozymandius]

4. Surging demand, OPEC cuts to tighten oil market: IEA

LONDON (Reuters) - World oil markets will tighten in the fourth quarter as OPEC cuts supply and peak winter demand kicks in, the International Energy Agency said on Friday.

The world's thirst for oil will rise 2.4 million barrels per day (bpd) in the last three months of this year from the third quarter, the Paris-based agency said in its Oil Market Report. That is 400,000 bpd higher than the agency forecast last month.

"Demand growth in the fourth quarter is expected to be exceptionally strong," said Lawrence Eagles, head of the IEA's Oil Industry and Markets division.

"And that is not even allowing for a cold winter. If we see a cold winter it will be even stronger."

http://news.yahoo.com/s/nm/20061110/bs_nm/energy_iea_forecast_dc_2

[AnneD]

25. Morning Marketeers....

:donut: and lurkers. I've had many interesting and not so interesting jobs in my life. Some have stayed with me more than most. One that affected me most profoundly was my 8 years of service in the Army Reserve. I was older and had more education that most and I picked up even more. I went in to a Psychological Warfare Operations Unit. Our mission was to get folks to surrender without a fight and to give us information. I was goings to college and had the least credentials. Most folks had Doctorates and Masters. I ran the printing press and discovered I had a real flair for forgery. I also had an ability in interrogation. Many of my friends were VN vets. They taught me survival skills that put some of these outdoor schools to shame. I am very sure my com padres are Iraq today and had I not moved back to Houston, I would have joined them.

I had my training at Ft Belvoir, Va. It was my first extended trip out of Texas. I was just a short bus trip from Washington DC, Monticello, and Mt Vernon. I went with a friend to Boston and learned even more about our country. I went to Ft Walton Beach Florida, and Camp McCoy Wisconsin and. My ideas of what America should be were formed then. It also shaped who I would become. For example, when you have had to face a 6'6" bad ass drill sargent from Louisiana-you don't put up with shit; especially when your punk assed soon to be ex boyfriend makes the mistake of trying to use you as a punching bag.

I learned so much. I learned what we are as a country and what we should be. I learned never to mistake kindness for weakness. I learned that we can always achieve more than we think we can. I learned that we can achieve even more when we work together than we can working apart. I learned one never can judge a book by the cover. I've learned that the best one can do in a panic situation is keep your head. And finally, and sadly, bad things can happen to good people, even when you have a plan, but especially if you don't have a plan. The older I get, the more I value that sacrifice.

So, in honour of Veterans Day (Armistice Day for some of us)I will raise a glass and toast those that went before me, those that served with me, and those that go on after me. To my brothers and sisters in arms.:toast:

Happy hunting and watch out for the bears.

[ozymandius]

28. What a great story Anne.

Very impressive. It sounds like you've lived enough for two lifetimes.

:toast:

[AnneD]

31. If I were to die tomorrow...

I wouldn't be completely happy about it (want to see my child set up and functioning as an adult in this world before I depart), but I would have to say I have had a well used life at 52. If I believe that old gypsy, I have 32 more years left. From the gold miners in White horse Yukon, the Mennonite farmers in Alberta, the share croppers in La., to oil CEO's in Texas, I have met some interesting folks. The only person that I know that has had as colourful a life is hubby. We will be entertaining each other for a lifetime with our stories.

[UpInArms]

30. may I raise my glass with yours, AnneD?

:toast:

[Danascot]

33. "I learned so much."

After truly loving someone and being loved by someone, I think the second most important purpose in life is the ability to really learn from one's experiences. There are many people who could have had the same experiences you did and learned nothing from them. Yes, this is a test, you aced it. Best wishes.

[UpInArms]

38. Dec Crude closes @ $59.59 bbl - Dec NatGas @ $7.794 mln btus

Dec. crude falls $1.57, or 2.6%, to end at $59.59/brl (2:55 PM ET, Nov 10, 2006 - 38 minutes ago)

Dec. crude ends the week with a 45-cent gain (2:55 PM ET, Nov 10, 2006 - 38 minutes ago)

Dec. natural gas falls 16.1 cents to close at $7.794/mln BTU (2:55 PM ET, Nov 10, 2006 - 38 minutes ago)

Dec. natural gas down 1.1% for the week (2:55 PM ET, Nov 10, 2006 - 38 minutes ago)

[ozymandius]

5. Stock futures up on energy price drop

LONDON - U.S. stock futures edged higher on Friday on a drop in energy prices, in what could be a thinly traded session due to the Veterans Day holiday.

Dow Jones futures were recently up 10 points, S&P 500 futures rose 1.9 points and Nasdaq futures rose 3.2 points.

A three-session win streak in U.S. equity markets was snapped Thursday on weaker-than-expected consumer sentiment data, high crude prices and worries about how pharmaceuticals would fare with Democrats taking control of Congress. The Dow industrial lost 73 points, the S&P 500 dropped 7.4 points and the Nasdaq Composite dropped 8.9 points.

-cut-

With Veterans Day shutting the federal government, no U.S. economic data is due to be released, but many of the world's top central bankers will be in Frankfurt.

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

[Roland99]

15. Wonder how many headlines have read "Futures up as oil prices spike"?

Probably a 50/50 mix.

[ozymandius]

21. It makes me wonder how many day traders have whiplash. n/t

[ozymandius]

6. Economic challenges facing the Democrats

The Democrats have captured control of the US Congress. But how will they tackle the key economic issues?

The Democratic victory in the 2006 mid-term elections was driven by economic discontent as well as concern over corruption and the war in Iraq.

But now that the Democrats are in control, they will have to show that they have the ability to tackle key issues that concern the nation.

-cut-

Budget woes

On the budget deficit, the Democrats have made tackling it one of their central planks.

And they are opposed to making permanent the tax cuts Mr Bush introduced, arguing they have mainly benefited the rich.

http://news.bbc.co.uk/2/hi/business/6133106.stm

[UpInArms]

18. Where were all these "Economic Challenges" headlines before Tuesday???

This is the kind of shit that just pisses me off.

:grr:

Someone needds to find all those "rosy economy" headlines and shove them somewhere unpleasant.

[ozymandius]

23. Pisses me off too. But better late than too late - if not too late already.

This could work in our favor if the general public gets a sense of the rampant waste and irresponsibility has come of Republican control.

BTW - here's a picture of what the Democrats face from Bonddad:

Speaker Pelosi, We've Got BIG Economic Problems, Pt. 1

Speaker Pelosi,

First, I wanted to offer my congratulations regarding the recent election. You were one of the architects of our victory, for which I and the American country as a whole are extremely grateful.

However, you will assume power at a very difficult economic time. Below are the problems you face. None offer easy answers. In fact, solving these problems will cause a fair amount of pain and difficulty, which may harm our majority's future electoral prospects.

http://www.dailykos.com/storyonly/2006/11/10/7948/9925

[UpInArms]

26. headline from Louisville, KY - Better late than never

http://www.courier-journal.com/apps/pbcs.dll/article?AID=/20061110/OPINION01/611100368

Shortly after getting sacked, Defense Secretary Donald Rumsfeld described Iraq as a "little understood, unfamiliar war" that is "complex for people to comprehend."

Well, he at least got that right, though not in the way he intended. Mr. Rumsfeld misunderstood the challenges in Iraq from the pre-invasion planning stage onward, seemed unfamiliar with the internal dynamics that tore Iraq apart, and rendered the American people and military unable to comprehend why he couldn't recognize failure and make changes.

President Bush, for his part, deserves little credit for replacing Mr. Rumsfeld. In the aftermath of an election that repudiated Mr. Bush's war leadership, and with mounting evidence that Mr. Rumsfeld is viewed as incompetent by many of his own senior military officers, the President had no real choice.

Moreover, the President has had ample grounds for several years to dump his Defense chief -- the inadequacy of occupation plans, the Abu Ghraib scandal, torture revelations and the slowness to recognize the depth and nature of the Iraqi insurgency, as well as Osama bin Laden's escape in Afghanistan. But Mr. Bush dithered.

<snip>

Then the key question will become: Will the President also be willing to face reality?

...more at link...

[Roland99]

36. Nice to see my hometown come around. The comments are good, too.

And we just put John Yarmuth, a true liberal, into the House over 5-term incumbent Ann Northup!


Too bad the Cards couldn't finish as strong last night. :( :( :(

[AnneD]

27. This only confirms...

what many here have come to believe. We have been getting phony balonogna numbers for at least 5+ years now. We have been witnessing the greatest wealth transfers in this nations history. This nations history has been set back to pre Roosevelt. We have some serious work ahead of us if we are to survive as a country.

[54anickel]

41. Hope they're listening. n/t

[54anickel]

42. Dems Pledge to Sever Ties to Lobbyists

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2608721

WASHINGTON (AP) - On Day 1 of the next session of Congress, newly empowered Democrats are promising restrictive rules to "break the link between lobbyists and legislation." The city's veteran lobbyists know what to expect on Day 2: requests for political donations from the Capitol's new stewards.

Ethics watchdog groups are hopeful as incoming House Speaker Nancy Pelosi, D-Calif., readies the Democrats' "Honest Leadership and Open Government" initiative for opening day in January. The plan includes a list of changes designed to clean up what the party calls "a culture of corruption" in Washington.

Exit polls from Tuesday's election compel Democrats to act. Three-fourths of voters said corruption and scandals were very or extremely important to them. That group tended to vote for Democratic House candidates, according to voter surveys conducted for The Associated Press and the television networks.

But some lobbyists, tired of being condemned for Washington's influence culture, remain skeptical.

"Let's not place the entire blame on lobbyists, so you can have a press conference, and then call us the next day and ask for campaign contributions," said Paul Miller, president of the American League of Lobbyists. "There are just as many Democratic lobbyists as Republican lobbyists."

more...http://www.lasvegassun.com/sunbin/stories/nat-elect/2006/nov/10/111001627.html

[ozymandius]

7. Labor's Time Has Come, Economy's Time Has Passed: Caroline Baum (opinion)

Nov. 7 (Bloomberg) -- It was a long wait between employment reports.

On Oct. 6, the Bureau of Labor Statistics informed us that it had uncovered an additional 810,000 gainfully employed folks in the year ended in March. Average monthly job growth for that 12-month period is now a respectable 236,000 instead of an unimpressive 169,000.

Four weeks later, on Nov. 3, the BLS said combined job growth for September and October was 139,000 higher than had been reported. The unemployment rate dropped to a 5 1/2-year low of 4.4 percent, thanks to an outsized increase of 437,000 in household employment, an alternative way of measuring the workforce.

-cut-

Output = Income

How long will that state of affairs continue before the capitalists get the joke?

Job growth last month was all in service-producing industries; construction and manufacturing employment declined.

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_baum&sid=awTB9DLNaVGA

In short: the worst administration... since Herbert Hoover's.

[ozymandius]

8. BP plant explosion suit settled for $32 million

GALVESTON, Texas (CNN) -- The daughter of two plant workers who died in the BP Texas City refinery explosion of 2005 will settle her lawsuit against the oil giant for an undisclosed amount and $32 million in donations to health care, training, and safety education, the plaintiff and her lawyer announced Thursday.

Eva Rowe's parents, Linda and James Rowe, were among the 15 people who died in the March 23, 2005, oil plant explosion and fire.

Until Thursday's announcement, Rowe's suit was the only fatality case from the tragedy that was going to court. Proceedings in the case began earlier this week in a Galveston courtroom and opening statements were to begin Monday.

Rowe's lawsuit originally sought damages of $1.2 billion. Neither party would disclose the monetary terms of the settlement beyond the $32 million donated by BP to various causes chosen by Rowe.

http://edition.cnn.com/2006/LAW/11/09/refinery.suit/

[AnneD]

She could...

and probably did write her own ticket. The last thing BP wanted was to have this go public. They would have gotten a tough jury. Too many folks are familiar with the biz here. It is already rough, hard, and dangerous work. We would look unkindly to it being made more dangerous than it already is.

[AnneD]

35. deleted

the dreaded double post.

[ozymandius]

9. Goodyear posts $48M Q3 net loss

Goodyear Tire & Rubber Co., the largest U.S. tiremaker, reported a third-quarter loss because of expenses to close factories in Texas and New Zealand.

Goodyear Chief Executive Officer Robert Keegan said he's committed to reaching a new three-year contract with the United Steelworkers of America that will ensure the company can compete. The strike, which started Oct. 5, has cut North American output by half and is costing the Akron, Ohio-based company $30 million to $35 million a week in income.

Third-quarter net loss was $48 million, or 27 cents a share, compared with net income of $142 million, or 70 cents, a year earlier, Goodyear said Thursday. Excluding spending to shut the plants and other costs, profit was 42 cents a share, about double analysts' predictions. Revenue rose 5 percent to $5.28 billion

http://www.sltrib.com/business/ci_4634863

[ozymandius]

10. Ford to delay filing of Q3 earnings statement - report

LONDON (AFX) - Ford Motor Co will delay the filing of its third-quarter earnings report with the Securities and Exchange Commission, saying it needs more time to finish restating previous years' earnings, the New York Times reported.

The company had been expected to file its results by Tuesday, the paper said.

http://www.forbes.com/markets/feeds/afx/2006/11/10/afx3162677.html

...very short...

[ozymandius]

11. Trade deficit eases

The nation's trade deficit improved in September after hitting an all-time high, helped by lower oil prices. The imbalance with China, however, soared to a record as retailers stocked their shelves for Christmas.

The overall trade gap declined 6.8% to $64.3 billion in September from a record $69 billion in August, the Commerce Department said.

The drop of $4.7 billion was better than expected and represented the biggest one-month decrease in more than five years.

The improvement came from a 10.5% fall in America's foreign oil bill, which dropped to $26.3 billion. The volume of imports fell and crude oil prices had a big decline. They now are about $60 per barrel after hitting $77 during the summer.

http://www.nydailynews.com/business/story/469803p-395401c.html

[ozymandius]

12. Chinese Reserve Diversification Potential Strikes Fear In Dollar

US Dollar – The US Dollar was under the gun today as economic data was less bullish than expected and news from China surprised markets. Higher in the morning against most of the majors, the dollar retraced in the afternoon following a previous release of the US trade balance for the month of September. Falling back from the record $69.9 billion made in the previous month, the shortfall narrowed to $64.3 billion according to the Commerce Department. Lower energy prices helped the figure along, shrinking the gap the most in almost two years. However, the gap with China stayed well supported, widening to another record of $23 billion as exports from the US dipped by $4.6 billion. The shortfall with the Asian nation left some bearish undertones lingering over the greenback as consumer confidence fell back from 15-month highs later in the morning. However, giving the hardest blow to the US dollar on the day was piercing news on the potential for Chinese reserve diversification. In line with previous central bank releases, including the likes of Russian and South Korean counters, the People’s Bank of China made suggestions eluding to the potential for reserve diversification out of US dollars. Already reaching $1 trillion, Chinese reserves are overweight in dollars with US based assets accounting for almost a whopping 72 percent. The suggestion should not come as a surprise as the market had always retained the idea in the backdrop. However, what is seemingly forcing the early introduction of such a plan seems to be the outcome of the midterm election. With the Democratic Party now controlling both sectors of Congress, protectionist measures may be forth coming, along with the usual global jawboning. In order to pre-empt such scenarios, Chinese officials are electing to quicken the process of further revaluation while reminding the US how much weight the Asian nation holds in the global arena. Either way, the news will likely continue to weigh on the US dollar in coming days as sentiment grows of a weaker dollar, one that may be dropped by more than just China in the near term.

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Chinese_Reserve_Diversification_Potential_Strikes_1163110491960.html

[ozymandius]

13. slow comment day

Feel free, lurkers, to post your thoughts and questions.

And good morning!

:donut: :donut: :donut:

[UpInArms]

17. g'morning Ozy!

I get to have a day off today - but still have a zillion things to do. Thanks for holding down the fort - errr - the SMW. I think my working gig will be up in a couple of weeks and I will be able to return for a stronger shift - but there will still be less of me than before.

:hug:

[UpInArms]

14. daily dollar watch

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

Last trade 84.93 Change -0.23 (-0.27%)

Diversification Talk Drives Dollar Lower

http://www.dailyfx.com/story/dailyfx_reports/daily_brief/Diversification_Talk_Drives_Dollar_Lower_1163157137338.html

Comments by PBOC Governor Zhuo that the central bank is considering “lots of options” regarding its inventory of 1 Trillion of dollar reserves continued to reverberate throughout the FX markets tonight as traders made bets that the Chinese will begin to diversify away from their dollar denominated positions. The EUR/USD breached 1.2900 and the pound hit a 19 month high in early European trade. But the anti-dollar rally ran smack dab into negative economic data as both Japanese and European releases badly missed their mark.

In Japan, core machinery orders plunged -7.4% on a month over month basis versus expectations of a 1.8% rise suggesting that the global slowdown in demand in the other G-3 regions is beginning to spread to Japan. The news once again raised questions about BoJ ability to raise rates before the year end, especially coming on the back of yesterday’s lackluster bank ending figures. Later in the day Governor Fukui’s, mildly hawkish remarks expressing concern over carry trade positions helped cushion yen’s fall, but his refusal to commit to a hard date on the next rate hike took the starch out of any yen counter rally. Although the market is clearly prepared for the end of the carry trade, until and unless the BoJ actually signals its willingness to raise rates, the carry traders will continue to flock to the USD/JPY pair taking full advantage of the interest rate differentials for the time being.

In Europe meanwhile, euro bulls were stymied by the weak data out of France where GDP stagnated to 0.0% from 0.5% projected while Industrial Production contracted -0.7% versus 1.0% expected gain. The news only confirms the global slowdown theme we’ve been writing about ad infinitum and clearly puts into doubt any ECB rate hikes beyond the 3.5% target expected by December. With the US consumer – the main engine of global demand over the past 3 years – retrenching markedly and with neither Japanese nor European consumers willing to pick up the slack a bet on further rounds of tightening from the G-3 central bankers in 2007 appears more and more shaky. If the global economy does head for a slowdown at the start pf 2007, talk of rate cuts rather than rate hikes will begin to preoccupy the markets.

...more...

Chinese Reserve Diversification Potential Strikes Fear In Dollar

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Chinese_Reserve_Diversification_Potential_Strikes_1163110491960.html

US Dollar – The US Dollar was under the gun today as economic data was less bullish than expected and news from China surprised markets. Higher in the morning against most of the majors, the dollar retraced in the afternoon following a previous release of the US trade balance for the month of September. Falling back from the record $69.9 billion made in the previous month, the shortfall narrowed to $64.3 billion according to the Commerce Department. Lower energy prices helped the figure along, shrinking the gap the most in almost two years. However, the gap with China stayed well supported, widening to another record of $23 billion as exports from the US dipped by $4.6 billion. The shortfall with the Asian nation left some bearish undertones lingering over the greenback as consumer confidence fell back from 15-month highs later in the morning. However, giving the hardest blow to the US dollar on the day was piercing news on the potential for Chinese reserve diversification. In line with previous central bank releases, including the likes of Russian and South Korean counters, the People’s Bank of China made suggestions eluding to the potential for reserve diversification out of US dollars. Already reaching $1 trillion, Chinese reserves are overweight in dollars with US based assets accounting for almost a whopping 72 percent. The suggestion should not come as a surprise as the market had always retained the idea in the backdrop. However, what is seemingly forcing the early introduction of such a plan seems to be the outcome of the midterm election. With the Democratic Party now controlling both sectors of Congress, protectionist measures may be forth coming, along with the usual global jawboning. In order to pre-empt such scenarios, Chinese officials are electing to quicken the process of further revaluation while reminding the US how much weight the Asian nation holds in the global arena. Either way, the news will likely continue to weigh on the US dollar in coming days as sentiment grows of a weaker dollar, one that may be dropped by more than just China in the near term.

...more...

[UpInArms]

16. China reserve shift includes FX, emerging mkts-Zhou

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-11-10T133250Z_01_L10113345_RTRIDST_0_ECONOMY-CHINA-ZHOU-UPDATE-2.XML

FRANKFURT, Nov 10 (Reuters) - China will diversify its $1 trillion foreign exchange reserves across different currencies and investment instruments, including in emerging markets, Chinese central bank governor Zhou Xiaochuan said on Friday.

A mushrooming trade surplus meant China needed stronger policy adjustment both on the yuan and to boost internal demand, Zhou said.

He also said the Chinese economy was showing signs of slowing and declined to talk of further interest rate rises.

Zhou, in Frankfurt for a European Central Bank conference, expanded on comments he made to Reuters on Thursday that China had a clear plan to diversify its FX reserves and was considering various options to do so.

"(Diversification) includes currencies, investment instruments, including emerging markets," he told Reuters on Friday. Asked if this included gold, he said: "That's a separate thing."

...more...

[ozymandius]

20. Good morning UpInArms!

Sorry to step on your turf with the yuan diversification story. I was worried that other concerns had taken priority over this little thread.

It's good to know that you're okay and that you're earning some moolah.

Ozy :hi:

[AnneD]

37. unearthed this little gem

for you guys....enjoy





Bernanke provides Fed history to German bankers

WASHINGTON — The Federal Reserve closely follows the money supply but doesn't let that information alone set policy to steady the economy and keep inflation in check, Chairman Ben Bernanke said today.

In a scholarly speech to a conference of central bankers in Frankfurt, Germany, Bernanke provided an historical account of the changing role the money supply has played in Fed policymaking over the years.

"Although a heavy reliance on monetary aggregates as a guide to policy would seem to be unwise in the U.S. context, money growth may still contain important information about future economic developments," Bernanke told his counterparts at the annual gathering.

There have been challenges on that front, he said, noting that financial innovation and technology through the years have led to new kinds of bank accounts and other changes that have made accurately forecasting the nation's money supply tricky.

<snip>

http://www.chron.com/disp/story.mpl/business/4325573.html

[UpInArms]

39. Dollar hits two-month lows as bonds rally

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-11-10T183939Z_01_N10271178_RTRIDST_0_MARKETS-GLOBAL-WRAPUP-5.XML

NEW YORK, Nov 10 (Reuters) - The dollar hit its lowest level in more than two months on Friday after China's central bank chief talked of plans to diversify $1 trillion in currency reserves, while gold fell steeply on profit taking.

An underlying market focus which is also putting downward pressure on the dollar is investors' expectation the Federal Reserve will have to start cutting interest rates in coming months as the pace of economic growth slows.

That same expectation helped U.S. Treasury bond prices to rally on Friday, pushing yields down to their lowest in a week. Bond yields and prices move inversely.

<snip>

The dollar tumbled for a second straight session after Zhou Xiaochuan, the Chinese central bank governor, said that China planned to diversify its assets across different currencies and investment instruments, including in emerging markets.

...more...

[ozymandius]

19. pre-open blather

09:00 am : S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: +2.0. Still shaping up for stocks to regain some upward momentum when the market opens, as the futures market holds steady in positive territory. It is worth noting, though, that today's session is expected to be thinly traded in observance of the Veterans Day holiday.

08:30 am : S&P futures vs fair value: +1.9. Nasdaq futures vs fair value: +1.5. Futures indications are off their morning highs but still trade above fair value to keep the stage set for a modest rebound in equities. While there are no scheduled economic data to potentially rattle the market, there is little conviction behind this morning's positive disposition as investors wait to see what a panel of central bankers from around the world, which includes Fed Chairman Bernanke, has to say about monetary policy.

08:00 am : S&P futures vs fair value: +2.5. Nasdaq futures vs fair value: +6.0. Futures versus fair value suggest stocks will get back on the buying track following yesterday's consolidation efforts. Contributing to the bullish disposition are better than expected earnings reports from Dow components Walt Disney (DIS) and American International Group (AIG). Fellow blue chip Boeing (BA) winning a $15 bln helicopter contract from the U.S. Air force is providing additional market support as is a 1.0% decline in crude oil prices.

[ozymandius]

22. markets are open for bidness

9:30
Dow 12,105.55 Up 2.25 (0.02%)
Nasdaq 2,378.26 Up 2.25 (0.09%)
S&P 500 1,378.35 Up 0.02 (0.00%)
10-Yr Bond 4.611% Down 0.022
NYSE Volume 13,497,000
Nasdaq Volume 33,227,000

[54anickel]

24. World Economy Faces Tough Choice (Fly by post)

http://www.theepochtimes.com/news/6-11-9/47941.html

Why is the global economy in a state of extreme disequilibrium?

When you boil it down, the economy is all about allocation of resources. Decisions about allocation of resources are made according to priorities, and according to the prevailing prices in the markets. Any intervention in the price mechanism will change the allocation of resources in the economy.

The present situation includes artificial and massive intervention in some of the world's most important prices: the exchange rates of the U.S. dollar against Asian currencies and the interest rate in the U.S. (and everywhere in the world as a result).

snip>

Trying to Stop the Snowball

Like a balloon that can either continue growing or burst, Asian leaders currently face two alternatives: they can continue printing money and supporting the artificial price system, or they can halt their intervention and allow market forces to determine prices.

Continued printing of money would cause three problems:

1.Inflation would rise, as already reflected in oil and commodities prices.
2.The global imbalance would increase further, possibly at an accelerated pace.
3.Ownership of U.S. assets would gradually shift from American to foreign hands (as a result of the U.S. trade deficit).

Stopping the overprinting, on the other hand, would lead to a sharp rise of Asian currencies against the U.S. dollar, and a sharp increase in interest rates all over the world. That would stop the American consumption feast and the Asian production boom—or, in other words, cause a global economic crisis.

more...

[ozymandius]

29. gains growing slim

9:58
Dow 12,106.91 Up 3.61 (0.03%)
Nasdaq 2,373.81 Down 2.20 (0.09%)
S&P 500 1,378.42 Up 0.09 (0.01%)
10-Yr Bond 4.601% Down 0.032
NYSE Volume 292,206,000
Nasdaq Volume 220,236,000

09:40 am : As expected, stocks bounce back as investors embrace better than expected earnings from a couple of Dow components. Last night, American International Group (AIG 69.50 +1.46) topped Wall Street forecasts and is up more than 2.0%, providing the biggest lift to the price-weighted index. Walt Disney (DIS 32.10 -1.48), a suggested holding in the Briefing.com Active Portfolio, also beat analysts' expectations. However, as this year's second best performing Dow component (behind GM) and up 5.3% this week alone in anticipation of a strong quarter, the stock is selling off to the tune of 4.4% on the news and some uncertainty about fiscal 2007 growth prospects, keeping blue chip gains at a minimum.DJ30 +13.61 NASDAQ +5.54 SP500 +2.34 NASDAQ Vol 84 mln NYSE Vol 38 mln

[AnneD]

32. Electric firms under attack

Texas legislators accused power companies of "abusing" their customers by keeping prices at record highs despite a large drop in power plant fuel prices this year.

During a hearing in Austin Thursday, State Sen. Troy Fraser told TXU Corp. Chairman and CEO John Wilder it was "an insult" to the 2.5 million customers the Dallas company served to charge its current prices.


Rebates offered
Wilder countered that the company is offering up to $100 in rebates to customers and giving them a variety of plans to choose from, including the security of capping prices for the next two to three years.

But Fraser, chairman of the Senate Business and Commerce Committee, was not appeased.

"I'm going to go to the corner neighborhood gas station, and even though his posted price is $2, I'm going to go ahead and sign a contract to pay $3 a gallon over the next 5 years if he will give my wife a package of cigarettes," Fraser said sarcastically.


http://www.chron.com/disp/story.mpl/business/4324474.html

All it takes is a peek at my bill last month. Over $200. Yeah, we're being screwed.:eyes:But ya gotta luv those Texas politicos. They tell the companies how the cow ate the cabbage:rofl:

[UpInArms]

34. 11:10 EST numbers and blather - mixin' it up

Dow 12,090.18 13.12 (0.11%)
Nasdaq 2,377.98 1.97 (0.08%)
S&P 500 1,377.34 0.99 (0.07%)
10-Yr Bond 4.59% 0.043

NYSE Volume 780,392,000
Nasdaq Volume 590,426,000

11:00 am : Little changed since the last update as the major averages continue to vacillate in roughly the same ranges. Meanwhile, retailers have been a focal point today following an analyst upgrade on Nordstrom (JWN 46.27 +0.73) and after Kohl's (KSS 72.21 -0.73) became the second department store in as many days to beat expectations and raise its fiscal 2006 EPS guidance. Yesterday, JC Penney (JCP 80.58 +1.03) kicked off the start of the retailers' earnings season in fine fashion, topping forecasts on record Q3 earnings and boosting its full-year profit outlook. However, Kohl's recently hitting a new 52-week high ahead of its report has prompted investors to lock in some gains, preventing a more aggressive move to the upside for a retail group that has already made a big move. The S&P 500 Retail Index is up 7.4% year-to-date but is up nearly 20% since bottoming out in mid July.DJ30 -4.12 NASDAQ +4.74 SP500 +0.60 NASDAQ Dec/Adv/Vol 1270/1414/488 mln NYSE Dec/Adv/Vol 1346/1579/346 mln

10:30 am : Major averages now trade in split fashion as sellers return to take some more market gains off the table. After being up as much as 2.2% earlier after winning a $15 bln helicopter contract, Boeing (BA 86.07 +0.96) paring some of its gains has removed some early support. A handful of reversals (e.g. GE, JNJ, MO, PG and XOM) within the last 15 minutes are also contributing to the Dow's recent dip into negative territory. DJ30 -4.85 NASDAQ +4.54 SP500 +0.45 NASDAQ Dec/Adv/Vol 1153/1459/362 mln NYSE Dec/Adv/Vol 1132/1702/242 mln

[UpInArms]

40. Hot CDO (Derivatives) market, untested investors a worry-PIMCO

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-11-10T180859Z_01_N08269911_RTRIDST_0_FINANCIAL-CDO-RISKS.XML

NEW YORK, Nov 10 (Reuters) - The number of unseasoned investors who oversee an increasingly complex array of debt in the $26 trillion derivatives market is a growing worry, says a senior money manager at PIMCO, the world's biggest bondholder.

To be sure, derivatives -- contracts whose value is derived from an underlying asset -- have helped manage and absorb risk.

But a key question is who holds that risk, said Mark Kiesel, an executive vice president at Pacific Investment Management Co.

"The risk is being transferred to people who don't have a lot of bottom-up credit experience," says Kiesel, who oversees $50 billion in corporate bonds at Newport Beach, California-based PIMCO. "There's tremendous innovation going on and it spans a breadth and depth never before experienced."

A growing concern are credit default swaps and collateralized debt obligations, one of the hottest hedge instruments in the past decade, Kiesel said.

"There's a large group of investors who are buying CDOs and tranches of CDOs and they're betting on defaults staying low" -- not a particularly wise policy, he said.

...more...

[UpInArms]

43. closing numbers - no fear of holding over long weekend

Dow 12,108.43 5.13 (0.04%)
Nasdaq 2,389.72 13.71 (0.58%)
S&P 500 1,380.90 2.57 (0.19%)
10-Yr Bond 4.586% 0.047

NYSE Volume 2,319,589,000
Nasdaq Volume 1,745,560,000

4:20 pm : Stocks bounced back Friday following Thursday's modest pullback, but blue chip gains were modest at best with the Nasdaq again turning in a session of outperformance.

With no scheduled economic data to potentially rattle the market, the market refocused its attention on earnings. Better than expected quarterly reports from two Dow components -- Walt Disney (DIS 32.36 -1.22) and American International Group (AIG 69.76 +1.72) -- were the headliners during an otherwise quiet day of trading. In fact, volume was below average due in part to the observance of Veterans Day while all three of the major averages traded in a relatively narrow range throughout the session.

Last night, AIG topped Wall Street forecasts and surged 2.5% after Q3 profits more than doubled. Fortunately for the bulls, AIG's strong quarter helped provide a floor of support for Financials, which got an additional boost from a decline in borrowing costs.

Another rate-sensitive area benefiting from falling bond yields was Homebuilding, which as the day's best performing S&P industry group helped the Consumer Discretionary sector shrug off a 3.6% drubbing in shares of Disney. A suggested holding in the Briefing.com Active Portfolio, Disney also beat analysts' expectations after the close on Thursday. However, as this year's second best performing Dow component (behind GM), and up 5.3% already this week in anticipation of strong results, the stock sold off on the news and amid uncertainty about fiscal 2007 growth prospects.

Retailers were another focal point Friday. The group got a boost following a strong earnings report from Kohl's (KSS 73.71 +0.77) and a better than feared report from recommended holding Pacific Sunwear (PSUN 18.55 +1.28). An analyst upgrade on Nordstrom (JWN 46.75 +1.21), along with falling oil prices heading into the holiday shopping season, provided additional support for the Discretionary sector.

The 2.6% sell-off in crude oil prices did not bode well for Energy, however, which turned in the day's worst performance. Crude oil for December delivery closed $60/bbl after the International Energy Agency cut its 2006 global demand forecast for a third consecutive month.

Meanwhile, after falling 4.0% over the last two sessions, Health Care rebounded to offer some support. Technology also provided some modest leadership to the upside, garnering just enough buying interest to push its year-to-date gain above 7%. BTK +0.8% DJ30 +5.13 DJTA +1.2% DJUA +0.5% DOT +0.7% NASDAQ +13.71 NQ100 +0.6% R2K +0.9% SOX +1.0% SP400 +0.7% SP500 +2.57 XOI -0.5% NASDAQ Dec/Adv/Vol 1195/1820/1.69 bln NYSE Dec/Adv/Vol 1142/2106/1.33 bln

3:30 pm : Aside from the modest gains on the Nasdaq, which is on track for an impressive 2.2% performance this week, large-cap names continue to show little vigor going into the close To wit, the Russell 2000 small-cap index is today's best performer (+0.7%). It is worth noting, though, that even if the Dow and S&P 500 close relatively unchanged on the day, they are currently on pace to finish the week up a respectable 0.9% and 1.0%, respectively. DJ30 -14.16 NASDAQ +8.20 SP500 -0.12 NASDAQ Dec/Adv/Vol 1263/1730/1.39 bln NYSE Dec/Adv/Vol 1188/2053/1.11 bln

Have a great weekend everyone! :hi: