STOCK MARKET WATCH, Friday December 21

[ozymandius]

Source: du

STOCK MARKET WATCH, Friday December 21, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 396 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2530 DAYS
WHERE'S OSAMA BIN-LADEN? 2252 DAYS
DAYS SINCE ENRON COLLAPSE = 2213
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
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 December 20, 2007

Dow... 13,245.64 +38.37 (+0.29%)
Nasdaq... 2,640.86 +39.85 (+1.53%)
S&P 500... 1,460.12 +7.12 (+0.49%)
Gold future... 803.20 -2.20 (-0.27%)
30-Year Bond 4.45% -0.05 (-1.02%)
10-Yr Bond... 4.03% -0.04 (-1.08%)






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

---

Read more: du

[ozymandius]

1. Market WrapUp: Quick Technical Take on Gold

BY MARTIN GOLDBERG, CMT

In spite of the rally in the US dollar, gold has been holding on to most of its gains since July. In fact so far, less than 38% of these gains have been retraced since early November. Gold has also held on to its 10-week moving average where it found support at about $800/ounce. The weekly chart doesn’t suggest in any way that the bull market in gold is over. A four month advance has given way to a 2 month correction (so far). The beginning of a new uptrend over the next couple of weeks would render the correction fairly benign in both magnitude and duration, and this would say something importantly bullish about the strength of the long term gold market.

....

In summary, the technical correction of gold priced in dollars has been mild in both magnitude and duration (assuming that it is almost over). The chart of gold in terms of euros and yen is bullish and will be even more-so if a breakout to new highs is reached. The overall long term picture is bullish for gold in all three currency fronts. If this is the case, what does it say about what is going on with paper money? World wide inflation.

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

[ozymandius]

2. Today's Reports

8:30 AM Personal Income Nov
Briefing Forecast 0.5%
Market Expects 0.5%
Prior 0.2%

8:30 AM Personal Spending Nov
Briefing Forecast 0.6%
Market Expects 0.7%
Prior 0.2%

8:30 AM Core PCE Inflation Nov
Briefing Forecast 0.2%
Market Expects 0.2%
Prior 0.2%

10:00 AM Mich Sentiment-Rev. Dec
Briefing Forecast 74.5
Market Expects 74.5
Prior 74.5

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

[ozymandius]

3. Oil rises on supply concerns

SINGAPORE - Oil prices rose Friday as the market focused on persistent supply concerns following a midweek report that U.S. crude oil supplies fell for the fifth straight week.

Worries about a possible slowing of the U.S. economy that could lead to a drop in fuel demand, however, continued to weigh on prices.

Energy investors were shaken by the U.S. Conference Board's report Thursday that its index of leading indicators dropped 0.4 percent in November to the lowest level in more than two years. Declines in the index tend to precede economic slowdowns or recessions.

Light, sweet crude for February delivery added 33 cents to $91.39 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract fell 18 cents overnight to settle at $91.06 a barrel in the floor session.

Prices were supported by forecasts that OPEC oil shipments were falling.

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

[ozymandius]

4. Bonuses on Wall Street surge 14 percent (puke alert)

NEW YORK - This might have been one of Wall Street's most dismal years in a decade, but that hasn't stopped bonus checks from rising an average of 14 percent.

Four of the biggest U.S. investment banks — Goldman Sachs Group Inc., Morgan Stanley, Lehman Brothers Holdings Inc. and Bear Stearns Cos. — will pay out about $49.6 billion in compensation this year. Of that, bonuses are traditionally estimated to represent 60 percent, or almost $30 billion.

But that might not sit well with investors who held on to investment bank stocks this year — and watched them plunge by up to 45 percent. Investment houses have been slammed by the credit crisis, and top executives this past week said they've yet to see a bottom.

Further, some of those executives have even agreed to forgo their bonuses this year to reflect the poor performance. Morgan Stanley CEO John Mack and Bear Stearns CEO Jimmy Cayne won't be collecting their payouts.

....

For the army of bankers and traders on Wall Street, it remains to be seen what their bonus checks will offer when they're handed out over the next several weeks. Top performers will still see some significant compensation as an incentive to not defect, while underperformers will suffer, executives at the banks said.

http://news.yahoo.com/s/ap/20071221/ap_on_bi_ge/wall_street_bonuses

[RUMMYisFROSTED]

30. The equivalent of 992,000 salaried jobs of $50,000.

Something is dreadfully wrong.

[ozymandius]

5. Merrill Lynch may get capital infusion

SINGAPORE - Merrill Lynch & Co. may get a capital infusion of as much as $5 billion from Singapore state-owned investment agency Temasek Holdings Pte. Ltd., a newspaper reported Friday.

The U.S. investment bank is facing the likelihood of billions of dollars in additional mortgage-related write-downs in the fourth quarter, the Wall Street Journal said on its Web site.

Citing an unnamed source said to be familiar with the situation, the report said Temasek is in advanced talks to inject as much as $5 billion into the investment firm.

Temasek's board has given preliminary approval to the investment in Merrill, the person said, although pricing, timing and regulatory issues remain to be negotiated, the report said.

Merrill, the world's largest brokerage, wrote down $7.9 billion in the third quarter due to the credit crisis sparked by defaults on housing loan in the U.S. and posted a loss of $2.3 billion.

Analysts have predicted that Merrill's mortgage write-downs may double with another $8 billion or more in the fourth quarter, the Journal said.

http://news.yahoo.com/s/ap/20071221/ap_on_bi_ge/singapore_merrill_lynch

[ozymandius]

6. MBIA details huge mortgage exposure, shares collapse

NEW YORK (Reuters) - MBIA Inc, the world's largest bond insurer, said it had guaranteed $8.1 billion of the riskiest mortgage securities, imperiling its entire net worth and sending its shares plunging 26 percent.

The company said it had guaranteed $30.6 billion of complex mortgage securities in total. The disclosure threatens to set off a chain reaction that could lead to larger write-downs at Wall Street banks.

....

MBIA is most vulnerable to guarantees on $8.1 billion of collateralized debt obligations, or CDOs, most of which includes the riskiest debt known as CDO squared, or CDOs backed by other CDOs. MBIA detailed its exposures on its Web site late on Wednesday. The company's net worth as of September 30 was $6.5 billion.

MBIA said in a statement late on Thursday that the CDO squared exposures were discussed with investors on a conference call on August 2, and the information was also made available to rating agencies Moody's Investors Service, Standard & Poor's and Fitch Ratings.

http://news.yahoo.com/s/nm/20071221/bs_nm/mbia_cdos_dc

[ozymandius]

7. more about Big Shitpile

Credit crisis hits top bond insurer

NEW YORK - The credit crisis spread to the nation's largest bond insurer Thursday, sending shares of MBIA Inc. plunging and calling into question the safety of tens of billions of dollars of company and local government debt held by investors.

The Fitch Ratings service warned that it might cut its rating on MBIA in the next six weeks if the company cannot find $1 billion in new capital. That followed a disclosure by MBIA that of the $30 billion in mortgage debt guarantees it issued, some $8 billion were for the the riskiest types.

....

MBIA is the largest of the "AAA" bond insurers, those that are viewed by rating agencies as having so much financial and claims-paying strength that they deserve the highest rating.

Because of its size, many analysts have warned of dire consequences for the bond market if MBIA is downgraded, which would effectively prevent it from issuing new policies.

http://news.yahoo.com/s/ap/20071220/ap_on_bi_ge/mbia

[Roland99]

11. "CDOs backed by other CDOs"

That's like robbing Peter *and* Paul to pay Guido and Rocko.

[ozymandius]

14. compounded criminality

How can a so-called professional mortgage underwriter, a professional appraiser and a professional bond insurer not know the rules of sound financial practice? I say they know the rules. They just didn't care to follow them.

[ozymandius]

17. I just found this at Naked Capitalism.

Wall Street Journal's Cursory Story on Mortgage Fraud

The Wall Street Journal has a page one story, "Fraud Seen as a Driver In Wave of Foreclosures," which probes the role of mortgage scams.

....

The role of fraud isn't exactly news (stated income loans are called liar loans for good reason) and the Journals' story generates more heat than light. It discusses, in long form, an Atlanta fraud ring with a college dropout nicknamed G-Money as the mastermind.

The problem is this story equates mortgage fraud with one particular flavor of fraud, namely, "fraud for profit." It's misleading not to mention the other type of mortgage fraud, "fraud for housing" in which the borrower winds up with a more expensive asseet than his financial standing entitles him to.

Mind you, the concepts above are well-established; the Journal was remiss to omit them. And the Brave New World has created new, more ambiguous sorts of mortgage misbehavior. One is the circumstance that is probably reported out of proportion to its occcurance, but nevertheless appears to be a genuine phenomenon, that of the mortgage broker exaggerating the borrowers' income to sell a bigger mortgage and win himself a larger commission.

....

And consider how the the shift in liability from lender to borrower enabled borrower recklessness. Tanta contrasts the process for lending to a self-employed person who has trouble verifying income. Number 1 is via a stated income loan; Number 2 is the traditional "full doc" approach, in which the bank notes that the debt-to-income (DTI) is considerably above the bank's guidelines but is warranted for various good reasons:

.....what happens if it actually goes bad?

Well, with Number 1, it's "clearly" the borrower's fault. He or she lied, and we can pursue a deficiency judgment or other measures with a clear conscience, because we were defrauded here. We can show the examiners and auditors how it's just not our fault....

With Number 2? There is no way the lender can say it did not know the loan carried higher risk....

What the stated income lenders are doing is getting themselves off the hook by encouraging borrowers to make misrepresentations. That is, they're taking risky loans, but instead of doing so with eyes open and docs on the table, they're putting their customers at risk of prosecution while producing aggregate data that appears to show that there is minimal risk in what they're doing. This practice is not only unsafe and unsound, it's contemptible.

But even in this lightweight article, one element of the mortgage mess jumps out: the virtual absence of borrower and transaction due diligence. Indeed, some mortgage builders who appeared to be passive beneficiaries of the scam mounted a successful defense by indicting the lender's lax procedures:

Prosecutors had attacked the home builders for failing to raise red flags when they witnessed mortgages being issued far in excess of what the builders were being paid.

But some defense attorneys went on the offensive and attacked lenders for failing to guard against fraud. Particularly illuminating was the testimony of Lucy Lynch, a former vice president of mortgage operations at BankFirst.

....

Ms. Lynch said the bank relied on an outside "loan officer" at a reputable mortgage broker to serve as its "eyes and ears" in the real-estate transactions. As it turned out, that person was indicted as part of the fraud ring. Ms. Lynch stressed that the bank took measures such as running all loan applications through a software program designed to detect fraud. "And things that didn't seem quite right, an underwriter could quickly pick those things out," Ms. Lynch said, according to a trial transcript. "So as far as having an actual policy or procedure around fraud, we didn't think it was necessary, quite frankly."

Ever heard the remark, "We're losing money on every sale, but we'll make it up in volume?" That is what the mortgage industry's mindless drive for efficiency has produced.

[Roland99]

18. "Hey! The lenders didn't protect me from myself! I'll..I'll...I'll SUE!"

:eyes:

[ozymandius]

8. Bear Stearns: From Bad To Worse

Wall Street thought Bear Stearns would turn in a bad quarter, but not this bad.

Bear Stearns (nyse: BSC - news - people ) on Thursday logged its first red ink since it was founded in 1923. The worse than expected results will cost Bear's top brass their 2007 bonus payments.

....

On Thursday, the brokerage said it suffered a loss of $859 million, or $6.90 a share, for its fourth quarter, which ended Nov. 30, down from a profit of $558 million, or $4.00 a share, for the year-ago period. The firm also announced $1.9 billion in additional write-downs as it recalculated the value of its battered portfolio.

The results shocked Wall Street, where analysts--whose track record at predicting earnings in their own industry leaves something to be desired--were looking for a loss of just $1.79 a share. According to the Associated Press, no one in the analyst pool predicted a deficit greater than $2.45.

....

In the troubled capital markets division, which includes fixed-income, the company said it experienced a loss of $956 million. The fixed-income unit alone lost $1.5 billion in the quarter. "Results for 2007 were heavily influenced by the severe market conditions across the fixed-income sector. More broadly, the repricing of credit also led to significantly lower net revenue levels due to illiquidity in the markets as trading activity levels deteriorated across the spectrum of fixed income products," the company said. The unit recorded $1.9 billion in recorded write-downs for the period, which is larger than the previous estimate of $1.2 billion, the company released in November. However, before hedges, the company actually suffered $3.2 billion in write-downs, said Bear's Chief Financial Officer Sam Molinaro in a conference call, according to Reuters. During the period, Bear Stearns unwound the remainder of its collateralized debt obligations, or CDOs.

....

Aside from the black eye of fixed income, the rest of the company performed relatively well--but far from spectacular. The clearing business saw sales rise 1.8%, to $276 million, from $271 million. Meanwhile, the wealth-management division saw sales rise 10.1%, to $272 million, from $247 million.

http://www.forbes.com/markets/commodities/2007/12/20/bear-stearns-closer-markets-equity-cx_er_cg_1220markets35.html

[ozymandius]

9. SEC Probes WaMu on Appraisals

The Securities and Exchange Commission is investigating how retail bank Washington Mutual Inc. handled and reported on mortgage loans that may have been based on inflated home appraisals.

The SEC's inquiry is in its infancy and involves several possible issues, including whether WaMu accurately disclosed to investors of mortgage-backed securities how its loans were appraised as well as whether the company properly accounted for its loans in financial disclosures to investors of the company, according to the people familiar with the situation.

....

The WaMu inquiry comes on the heels of a lawsuit filed in November by New York state Attorney General Andrew Cuomo that didn't name the bank as a defendant but alleged it exerted pressure on an appraisal company to inflate property valuations to ensure its loans went through.

....

Last month, Freddie Mac and Fannie Mae, which acquire mortgage loans from lenders and package many of them into securities for sale to investors, agreed to appoint independent examiners to look at whether they have done enough to protect investors from the risks of inflated home appraisals, particularly on WaMu loans.

WaMu, the country's biggest savings and loan and one of the largest U.S. home-mortgage lenders, has been battered by the subprime-mortgage crisis this year. The company's stock price is down 68% this year, and its home-loans unit had a loss of $348 million in the third quarter.

http://online.wsj.com/article/SB119819701310243567.html?mod=googlenews_wsj

[Roland99]

10. Formidable Friday Futures

S&P 500 +10.50 1485.20
NASDAQ +17.25 2115.75
Dow Jones +74.00 13424.00

[ozymandius]

15. They're on crack.

The only positive news I've read this morning is that 2007 is almost done.

[Roland99]

23. Heard something on CNBC or Bloomberg about more rate cuts.

Seems some think a cut down to 3% will resolve the credit crunch.

[Roland99]

12. Best of Wishes to all SMW contributors and lurkers!

MERRY CHRISTMAS!


May the holidays bring you only joy, not an ounce of sorrow.

[ozymandius]

16. Thank you Roland.

And to you too. I hope this time to focus on what's good with the world and within ourselves fills each of us with lasting warmth.

[Roland99]

21. Me, too. I've been doing some pondering in the last couple of days (ok, here comes the long-winded)

Something hit me the other morning: how precious life is and how much I take for granted each and every day. Ya see, a couple of days ago I attended the funeral of the wife of a co-worker. She passed a week ago today due to complications from cancer treatment at the incredibly too-young age of 39. She'd been diagnosed with breast cancer a few years ago but beat it and beat it quickly (twice). But this time, it had spread much further and she finally succumbed.

So, I got to thinking, that's only 2 years younger than me. What have I done in the last 2 years that amounts to much? Well, I've had a bit of an up and down time with my oldest daughter which has been mostly up lately. I've enjoyed seeing my youngest daughter go from the last of her childhood innocence on a trip to Disney last August to turning into a teenager and developing more "grown-up" tastes. I've started a new job, with great people around me, that's allowed me to do more things than I've been able to in years (at least in the last 5 years).

My best friend has helped me keep my wits about me when I've gotten a bit off the path of sensibility.

I've taken my youngest on trips to Miami, NJ/NY/CT, and Baltimore (in addition to the Disney trip). I've taken my oldest down to Atlanta where we spent probably the best father/daughter time we'd had in a long time. I think we're due for another one soon. And my oldest, so near to getting her life back on track after years of physical and emotional setbacks. She's not giving up and I'm pushing harder from my end to be sure she doesn't. She's too amazing of a young woman.

I moved into a rental house next door to my sister and painted almost the whole thing myself (along with putting up window treatments). I've cut grass again for the first time in 5 years...well, at least in my own yard (I've cut my dad's yard while he's been out of town a time or two).

I've answered countless computer questions for family and friends.

I've taken kids to the doctor when they were sick and had the flu, myself, for about a week a few months ago. I've been to birthday parties, Derby parties, Christmas parties, wakes, and funerals.

I've seen some amazing sunsets and a wicked cool double rainbow. I've had snowball fights and been drenched in the rain.

Got into some "discussions" about politics and religion with various people.

I had a fender bender (a telephone pole jumped out and bit my car! Seriously!)

I baked an apple pie from scratch (with woven crust) at Thanksgiving!

I helped shop for "angels" off the Angel Tree this year (when we raised over $1300 here at work and got a "matching" gift of $700 from the company so a total of 20 "angels" could be helped.)

And the topper of it all...I've fallen in love. It's a bit of a struggle right now (I curse the miles between us!) but the rewards will be 100 times greater...maybe even 101!


All of that in two years. Sounds like a lot doesn't it? It doesn't even begin to scratch the surface, esp. when one takes into account the daily routines of fixing breakfast, lunch, and dinner; going out to dinner or the movies; going for a drive along the river; going to the zoo; going shopping; renting a movie and eating popcorn; and anything else we do each and every day that is taken for granted.

So, embrace each day and try to end it with a smile, even when it's been brutal and depressing. Because life is too precious to waste time being unhappy or angry over things that don't amount to a hill of beans.


So this is Christmas
And what have you done
Another year over
A new one just begun
And so this is Christmas
I hope you have fun
The near and the dear ones
The old and the young

A merry merry Christmas
And a happy New Year
Let's hope it's a good one
Without any fear

And so happyChristmas (War is Over, if you want it)
For weak and for strong
The rich and the poor ones
The road is so long
So happy Christmas
For black and for white
For yellow and red ones
Let's stop all the fight

A merry merry Christmas
And a happy New Year
Let's hope it's a good one
Without any fear

And so this is Christmas (War is over, if you want it)
And what have we done
Another year over
And a new one just begun
And so this is Christmas
We hope you have fun
The near and the dear ones
The old and the young

A merry merry Christmas
And a happy New Year
Let's hope it's a good one
Without any fear
War is over, if you want it
War is over now

Merry Christmas

[antigop]

25. Thanks for that, Roland! I'll add my wishes for a Happy New Year...

Since you posted lyrics, I'll post some too...

My Grown-up Christmas List

Music by David Foster

Lyrics by Linda Thompson
--------

Do you remember me

I sat upon your knee

I wrote to you

With childhood fantasies

Well, I'm all grown up now

Can you still help somehow

I'm not a child

But my heart still can dream

So here's my lifelong wish

My grown-up Christmas list

Not for myself

But for a world in need

No more lives torn apart

That wars would never start

And time would heal all hearts

Every man would have a friend

That right would always win

And love would never end

This is my grown-up

Christmas list

What is this illusion called

The innocence of youth

Maybe only in their blind belief

Can we ever find the truth

There'd be no more lives torn apart

And wars would never start

And time would heal all hearts

Every man would have a friend

And right would always win

And love would never end

This is my grown-up Christmas list

This is my only lifelong wish

This is my grown-up Christmas list

Hoo---, hoo--

----

[Hugin]

27. Backatcha Roland99!

:D

:hi:

[ozymandius]

13. "No more easy cash: banks must take their losses"

http://www.nakedcapitalism.com/2007/12/no-more-easy-cash-banks-must-take-their.html

A solid, well argued case against further central bank accommodation by Charles Wyplosz, professor of economics at the Graduate Institute of International Studies in Geneva, in the Financial Times. The centerpiece of his argument is that by providing ample liquidity and low interest rates, monetary authorities are delaying the very steps necessary for banks to regain confidence in one another, namely, writeoffs and capital raising.

While this article is cogent as far as it goes, it neglects the role of regulatory reform. In an op-ed piece today, Paul Krugman highlights the role of free-market ideology in the real estate bubble. It has become an article of faith that less regulation is better, despite the mounting evidence to the contrary. Alan Greenspan, a loyal disciple of Ayn Rand, was a staunch believer, as Krugman notes:

In a 1963 essay for Ms. Rand’s newsletter, Mr. Greenspan dismissed as a “collectivist” myth the idea that businessmen, left to their own devices, “would attempt to sell unsafe food and drugs, fraudulent securities, and shoddy buildings.” On the contrary, he declared, “it is in the self-interest of every businessman to have a reputation for honest dealings and a quality product.”

Guess Greenspan never heard of Upton Sinclair's The Jungle, which detailed the horrors of the turn of the 20th century meatpacking industry (sweatshop working conditions, adulterated meat, non-existent sanitation) and led, among other things, to the Meat Inspection and Pure Food and Drug Act of 1906.

From the Financial Times:

The combined central bank injection of liquidity last week was impressive. Still, more than five months after the interbank market froze, banks’ thirst for cash seems unquenchable. The central banks have done everything they can to keep financial markets orderly. They took the risk of feeding the moral hazard beast and what did they achieve? So far they have avoided the much-feared “Big Crunch”, but the end of the tunnel is not yet in sight. The time has come to ask the harder question: do commercial banks get it?

The big commercial banks hold mountains of cash, probably because they still have mountains of sickly off-balance-sheet liabilities that they are unwilling to acknowledge. Or it is because they fear that other banks are in that position and that this could trigger the Big Crunch. Or they just think that other banks think that way. Prudence is a much-needed virtue in banking, the more so because it has been forgotten in recent years.

....

Financial protectionists will display outrage. It is never pleasant to see newcomers acquire significant shares of our biggest companies, but we must also accept that the era of easy money was a mistake. The fundamental basis of capitalism is that mistakes must be borne. Here we are. But please, bring this misery to its end.

[ozymandius]

19. Circuit City posts wide loss

NEW YORK (CNNMoney.com) -- Circuit City reported a much wider-than-expected third-quarter loss Friday that the company blamed on its ongoing store reorganization and double-digit sales declines of gadgets like camcorders, DVD players and video imaging systems.

The Richmond, Va.-based company - No. 2 electronics retailer after Best Buy (BBY, Fortune 500) - reported a loss from continuing operations of $208 million, or $1.26 a share.

Excluding certain items, the retailer posted a loss of 64 cents a share.

....

Sales at Circuit City (CC, Fortune 500) stores open at least a year - a key measure of retail performance known as same-store sales - declined 5.6 percent in the quarter. That's a particularly rough result since the period included Black Friday, the day after Thanksgiving that marks the start of retailers' holiday shopping season.

http://money.cnn.com/2007/12/21/news/companies/circuit_city/index.htm?postversion=2007122108

[Hugin]

28. ... I just saw some blather on this...

They were promising a glorious Q4! :rofl:

[Warpy]

34. You mean canning all their experienced salespeople

to pump the stock and fatten the bottom line didn't work?

You mean people actually hoped for SERVICE?

Who'd a thunk?

[ozymandius]

37. Maybe people are furious that Circuit Shitty would treat skilled people so badly.

:shrug: Just a guess. I can say that I have not darkened their threshold since they canned knowledgeable, caring staff.

[Warpy]

38. Same here

I'll be replacing a lot of stuff I lost in a burglary last month during the after Xmas sales, but I won't be replacing it there.

[ozymandius]

20. UPDATE: Philips Agrees To Buy Respironics For EUR3.6 Billion

AMSTERDAM -(Dow Jones)- Royal Philips Electronics (PHG) of The Netherlands Friday said it would acquire U.S.-based health care firm Respironics Inc. (RESP) for EUR3.6 billion, or $5.1 billion, in cash.

In joint statements, the companies said they had reached a definitive merger agreement under which Philips will acquire all of Respironics' outstanding shares for $66 a share.

Respironics, of Murrysville, Pennsylvania, is a leading provider of sleep therapy and respiratory health care solutions, and the deal places Philips as a global leader in the fast-growing home health-care market by adding new product categories in obstructive sleep apnea and home respiratory care to its existing businesses in this field.

Respironics has approximately 5,300 employees worldwide.

http://money.cnn.com/news/newsfeeds/articles/djhighlights/200712210325DOWJONESDJONLINE000400.htm

[zabet]

22. K and R

Thanks from a lurker!
:hi:

[Roland99]

24. 9:35am - Off and running (like a Repub running away from a subpoena)

Dow 13,348.55 +102.91
Nasdaq 2,672.23 +31.37
S&P 500 1,473.57 +13.45
10 YR 4.08% 0.05
Oil $91.55 $0.49
Gold $813.80 $10.60

[antigop]

26. I posted this in the Economy forum yesterday after market close

Does this give you the warm and cozies?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x31565

[Robbien]

29. Wealthy shoppers cheer up Newbury Street

The next best thing to being rich may be selling to the rich -- at least if the experience of the merchants who line Boston's Newbury Street is any indication.

With foreign visitors exploiting the weak dollar and affluent Americans relatively insulated from the subprime mortgage mess, the stores that cater to them along Boston's most famous shopping thoroughfare are doing just fine. At the same time, retailers that depend on the middle-class are finding little to cheer about this holiday shopping season.

http://boston.bizjournals.com/boston/stories/2007/12/24/story3.html?b=1198472400%5E1567141

At least now we know where all that increased spending is coming from.

[Robbien]

31. M&A Deals Hit Record $1.57 Trillion in 2007

Despite a sharp decline in dealmaking at mid-year, merger volume in 2007 hit a record $1.57 trillion in the United States, up 5.5 percent from the previous year, according to research firm Thomson Financial. But, for the first time in five years, U.S. lagged deal-making in Europe, where mergers totaled $1.78 trillion.

Globally, mergers totaled a record $4.38 trillion in 2007, up 21 percent from 2006.

The bulk of the U.S. merger volume in the first half of the year was fueled by easily obtained debt financing that helped private equity firms and other buyers borrow large amounts of money at attractive rates.

. . .

The euphoric dealmaking pace in the first half of the year drastically declined when the housing bubble burst and concerns about the subprime credit markets spooked lenders. By mid-July, money became more expensive to borrow and lenders became more strict with the conditions placed on loans.

The absence of cheap money put the brakes on spending by private equity firms, which had been the engine behind much of the merger boom. Private equity buyouts accounted for as much as 41 percent of total U.S. merger volume as of the first week of July, but that fell to 15 percent of weekly merger volume in the second half of the year, according to Thomson Financial.

In the second half of the year, total global merger activity declined 27 percent and U.S. activity fell 46 percent, Thomson Financial said.

http://dealbook.blogs.nytimes.com/2007/12/21/ma-deals-hit-record-157-trillion-in-2007/?hp

These private equity vultures have much to answer for, least of which is their role in the current credit disaster.

[Roland99]

32. 10:36am - Ho! Ho! Ho!

Dow 13,408.54 162.90
Nasdaq 2,674.35 33.49
S&P 500 1,478.25 18.13
10 YR 4.10% 0.07
Oil $91.75 $0.69
Gold $814.70 $11.50

[ozymandius]

33. I was about to say.

Ho. Ho. Ho.

Stock Pimps are getting rich.

[ozymandius]

35. lunchtime update

12:10
Dow 13,404.80 Up 159.16 (1.20%)
Nasdaq 2,673.98 Up 33.12 (1.25%)
S&P 500 1,477.27 Up 17.15 (1.17%)
10-Yr Bond 4.11% Up 0.08
NYSE Volume 2,137,796,000
Nasdaq Volume 1,312,619,750

12:00 pm : Stocks are trading considerably higher at the East Coast lunch hour, fueled by a better than expected earnings report from Research In Motion (RIMM 119.22, +12.23), speculation about a Merrill Lynch (MER 55.23, +0.73) cash infusion and a economic report that indicates strong consumer spending.

Research In Motion, the maker of BlackBerry devices, boosted sentiment after last night reporting earnings of $0.63 per share, nearly double year ago earnings and topping the consensus estimate by a penny.

Also giving the market a lift, a Wall Street Journal article states that Merrill Lynch is in advanced talks to receive a $5 billion cash infusion from a state-owned Singapore investment fund. The stock is off its highs, but is still posting a respectable 1.3% gain on the news. Other financial firms have recently announced investments from overseas government owned funds, including Citigroup (C 30.13, +0.24), UBS (UBS 44.90, -0.41) and Morgan Stanley (MS 53.77, +2.40).

The Dept. of Commerce released its November Personal Income and Consumption report. Personal spending rose a strong 1.1%, well above the 0.7% expected increase. Adjusted for inflation spending still rose 0.5%, which is solid considering the headwinds the overall economy is currently facing. This indicator important as consumer spending accounts for 72% of the GDP.

Meanwhile, the report indicated personal income rose 0.4%, slightly less than the consensus estimate that called for a 0.5% rise. Core PCE, the Fed's favorite measure of inflation, rose 0.2%, which was in-line with expectations.

Most importantly, this report does not indicate any sign of a recession.

All ten economic sectors are trading higher, led by materials (+2.0%), and energy (+2.0%). Financials (+0.6%), the only sector to finish in the red yesterday, are underperforming on a relative basis. DJ30 +164.28 NASDAQ +32.32 SP500 +17.07 NASDAQ Dec/Adv/Vol 939/1880/1.23 bln NYSE Dec/Adv/Vol 767/2298/1.08 bln

[RUMMYisFROSTED]

39. Strong consumer spending? 4 days before X-Mas?

:freak:

[Roland99]

40. The mall was PACKED today by noon. I left work at 11am. Glad I did.

Had to finish up shopping for my youngest. When I left the mall a little after 2pm, the exit was backed up over half a mile and there were virtually no parking spots left at the mall. I think everyone was waiting until the last minute for the desperation sales (too bad Limited Too hardly ever puts anything on sale but it's about the only place I can find clothes my youngest will wear... *sigh*)

[Hugin]

42. Wait! Isn't this what a COMMIE would do?

... "Merrill Lynch is in advanced talks to receive a $5 billion cash infusion from a state-owned Singapore investment fund."

Where's the FREE MARKET! Dammit! :eyes:

[TrogL]

36. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2007-11-09 Friday, November 9 1.06553 USD
2007-11-12 Monday, November 12 1.06553 USD
2007-11-13 Tuesday, November 13 1.03745 USD
2007-11-14 Wednesday, November 14 1.0408 USD
2007-11-15 Thursday, November 15 1.01999 USD
2007-11-16 Friday, November 16 1.02807 USD
2007-11-19 Monday, November 19 1.01636 USD
2007-11-20 Tuesday, November 20 1.01543 USD
2007-11-21 Wednesday, November 21 1.01071 USD
2007-11-22 Thursday, November 22 1.01071 USD
2007-11-23 Friday, November 23 1.01143 USD
2007-11-26 Monday, November 26 1.01245 USD
2007-11-27 Tuesday, November 27 1.00321 USD
2007-11-28 Wednesday, November 28 1.00939 USD
2007-11-29 Thursday, November 29 1.00725 USD
2007-11-30 Friday, November 30 0.9993 USD
2007-12-03 Monday, December 3 1 USD
2007-12-04 Tuesday, December 4 0.989511 USD
2007-12-05 Wednesday, December 5 0.987459 USD
2007-12-06 Thursday, December 6 0.987654 USD
2007-12-07 Friday, December 7 0.994926 USD
2007-12-10 Monday, December 10 0.989805 USD
2007-12-11 Tuesday, December 11 0.989413 USD
2007-12-12 Wednesday, December 12 0.989413 USD
2007-12-13 Thursday, December 13 0.978857 USD
2007-12-14 Friday, December 14 0.98668 USD
2007-12-17 Monday, December 17 0.992851 USD
2007-12-18 Tuesday, December 18 0.989609 USD
2007-12-19 Wednesday, December 19 0.994431 USD
2007-12-20 Thursday, December 20 1.0017 USD

Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     1.0040 1.0078 1.0019 1.0078 +0.0067 +0.67% 
CD.H08 Mar 2008 1.0024 1.0083 1.0024 1.0070 +0.0055 +0.55% 
CD.M08 Jun 2008 1.0040 1.0042 1.0040 1.0040 +0.0029 +0.29% 
CD.U08 Sep 2008 0.9785 0.9785 0.9780 1.0006 +0.0044 +0.44%  
CD.Z08 Dec 2008 0.9750 0.9750 0.9750 0.9998 +0.0044 +0.44% 
CD.H09 Mar 2009 0.9870 0.9870 0.9870 0.9990 +0.0044 +0.44% 
CD.M09 Jun 2009 0.9995 0.9995        0.9982 +0.0044 +0.44% 

Other combinations: (http://quotes.ino.com/exchanges/?c=currencies)

Market              Open    High     Low    Last   Change     Pct 
AUSTRALIAN $/CANADIAN $ (NYBOT:AS)
AS.Z07 Dec 2007  0.89400 0.89400 0.89400 0.86200 -0.01595  -1.85%
AS.H08 Mar 2008   0.8873  0.8873  0.8873  0.8517 -0.0043   -0.50%   
AUSTRALIAN $/US$ (NYBOT:AU)
AU.Z07 Dec 2007   0.8706  0.8815  0.8760  0.8581 -0.0042   -0.49%
AU.H08 Mar 2008          0.85285 0.85285 0.85285 -0.00140  -0.16%   
CANADIAN $/JAPANESE YEN (NYBOT:HY)
HY.Z07 Dec 2007   108.87  108.87  108.87  112.70 +1.37     +1.22%
HY.H08 Mar 2008  111.020 111.020 111.020 111.965 +0.090    +0.08%   
EURO/AUSTRALIAN $ (NYBOT:RA)
RA.Z07 Dec 2007  1.69260 1.68450 1.68450 1.67600 +0.00355  +0.21%
RA.H08 Mar 2008  1.68140 1.68140 1.68140 1.68125 -0.00425  -0.25%   
EURO/BRITISH POUND (NYBOT:GB)
GB.Z07 Dec 2007  0.71930 0.71930 0.71930 0.71300 -0.00275  -0.39%
GB.H08 Mar 2008   0.7268  0.7269  0.7263  0.7264 +0.0008   +0.11%    
EURO/CANADIAN $ (NYBOT:EP)
EP.Z07 Dec 2007   1.4855 1 .4855  1.4855  1.4450 -0.0236   -1.63% 
EP.H08 Mar 2008  1.43480 1.43480 1.43480 1.43550 +0.00335  +0.23%  
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.Z07 Dec 2007   162.67  162.67  162.67  162.84 -0.66     -0.41% 
EJ.H08 Mar 2008  161.280 162.500 161.280 162.500 +2.125    +1.32%   
EURO/US$ (LARGE) (NYBOT:EU)
EU.Z07 Dec 2007  1.43890 1.43890 1.43890 1.43830 -0.00415  -0.29% 
EURO/US$ (SMALL) (NYBOT:EO)
EO.Z07 Dec 2007  1.47400 1.46620 1.44620 1.43830 -0.00415  -0.29% 
EO.H08 Mar 2008   1.4337  1.4339  1.4337  1.4339 -0.0062   -0.43% 

Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The March Canadian Dollar was steady to slightly higher overnight as it extends Thursday's breakout above the 20-day moving average crossing at .9958. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. Multiple closes above the 20-day moving average crossing at 99.58 are needed to confirm that a short-term low has been posted. Closes below the 10-day moving average crossing at 99.21 would temper the near-term friendly outlook in the market. First resistance is Thursday's high crossing at 100.52. Second resistance is the 25% retracement level of the November-December decline crossing at 100.76. First support is the 20-day moving average crossing at 99.58. Second support is the 10-day moving average crossing at 99.21.

Analysis

I'm actually on vacation so this is more of a :wtf: post that anything else.

I saw the loonie scamper past prime yesterday and it's still up there.

[ozymandius]

41. Free lillipops and ponies on this Friday before Christmas.

Dow 13,450.65 Up 205.01 (1.55%)
Nasdaq 2,691.99 Up 51.13 (1.94%)
S&P 500 1,484.46 Up 24.34 (1.67%)
10-Yr Bond 4.17% Up 0.14
NYSE Volume 4,462,575,000
Nasdaq Volume 2,641,431,250

4:20 pm : Christmas Eve is just around the corner, but the stock market was already in a festive mood on Friday as another strong earnings report from a leading technology company and a better than expected report on personal spending in November served as underpinnings for a broad-based rally.

All ten economic sectors closed the session higher. The gains were substantive, too, as the defensive-oriented utilities sector (+0.8%) was the only sector that gained less than 1.0%.

Research In Motion (RIMM 118.63, +11.64), the maker of the Blackberry, set the tone for a strong opening when it followed up an impressive earnings report from Oracle (ORCL 22.71, +0.61) with an impressive report and outlook of its own. The stock surged 11% and sparked a rally in other large-cap tech stocks that had the Nasdaq Composite in a leadership position all session on what was a quadruple witching options expiration day.

Consumer electronics retailer Circuit City (CC 4.75, -1.91) suffered a much different fate as it delivered an abysmal third quarter earnings report that left investors heading for the exit in droves. Its weakness didn't derail the consumer discretionary sector (+1.4%), though, as Circuit City's issues were deemed to be more company-specific than anything else in light of the strong report heard earlier in the week from competitor Best Buy (BBY 52.48, +0.81).

The energy (+2.4%) and materials (+2.4%) sectors were the biggest gainers Friday as the aforementioned spending report had participants feeling better about the economic growth outlook.

Specifically, personal consumption expenditures, which account for 72% of GDP, surged 1.1% in November and 0.5% after adjusting for inflation. The report substantiated the understanding that the consumer continues to spend in the face of macro headwinds and helped quell recession concerns for the time being. Cyclical stocks, accordingly, were among Friday's top performers.

The most influential gainer, however, was the financial sector. It jumped 2.0% as news that Merrill Lynch (MER 55.54, +1.04) might receive a $5 billion capital injection from a Singapore state-owned investment firm, and a report that plans for an SIV rescue fund were being abandoned due to a lack of interest, drove a belief that the worst of the credit crisis has past. That thinking has been proven wrong before, but on Friday, it was the prevailing belief.

The stock rally took some wind out of the Treasury market which suffered losses across the yield curve. The benchmark 10-year note fell nearly a point, which boosted its yield to 4.16%.

Advancing issues outpaced declining issues by a healthy margin at the NYSE and Nasdaq. Trading volume, meanwhile, was quite heavy on account of the expiration of stock options, index options, index futures, and single stock futures.DJ30 +205.01 NASDAQ +51.13 NQ100 +2.0% R2K +2.4% SP400 +1.6% SP500 +24.34 NASDAQ Dec/Adv/Vol 924/2104/2.57 bln NYSE Dec/Adv/Vol 824/2381/2.19 bln

Pizza makes a great stocking stuffer.