STOCK MARKET WATCH, Wednesday February 6

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday February 6, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 350
DAYS SINCE DEMOCRACY DIED (12/12/00) 2572 DAYS
WHERE'S OSAMA BIN-LADEN? 2298 DAYS
DAYS SINCE ENRON COLLAPSE = 2589
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 February 5, 2008

Dow... 12,265.13 -370.03 (-2.93%)
Nasdaq... 2,309.57 -73.28 (-3.08%)
S&P 500... 1,336.64 -44.18 (-3.20%)
Gold future... 890.30 -19.10 (-2.15%)
30-Year Bond 4.34% -0.03 (-0.73%)
10-Yr Bond... 3.59% -0.06 (-1.54%)






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

[fasttense]

1. Thanks ozy for another great funny.

The little guys at the bottom reposing the entire house with "How about now?" made me spit out my coffee.

:D

[ozymandius]

3. You're welcome fasttense.

:donut: :donut: :donut:
And good morning. Tom Toles is a true comic artisan, ain't he?

[fasttense]

17. Ah, so true.

Sorry about the typo in my first post. Way too early to be making grammatical sense.

[Demeter]

7. Smashing Cartoon!

Now that the seriousness has returned to the political cartoon scene, can thoughtful commentary be far behind?

Perhaps political dialog has finally turned the corner. I think it's been horrible since Clinton took office. Probably retribution for not letting Poppy have his second term.

:eyes:

[ozymandius]

12. Greenspan worked very hard to create ruin.

[Demeter]

15. Well, He Succeeded Beyond His Wildest Dreams, Then

Because the reason he wanted ruin was to take over---and not only is there nothing left worth taking over, but the sheep are waking up, and it's going to look like the New Deal all over WITH jackboots, this time! No genteel FDR to lead the people out of the Valley of Death, but pissed off Peace Movement, feminists, techies and geeks, small business, concerned parents, and rebels. We are going to see the flowering of the Flower Children and their children. And lordy, the lamentations from the crooks and pirates will be something to hear!

[TalkingDog]

18. You know what they say: Artists are the avant garde

of every major change that moves through a society.

A good read: Art and Physics if you like art or physics or philosophy (with a small "p")


As for Poppy, when he was running I remember saying - The only thing I get from him about why he wants to be President is "I want to be President because it's my turn"

Unfortunately, I'm getting that from some of the current crop too.



My Favorite Master Artist: Karen Parker GhostWoman Studios

[Demeter]

23. It Was Poppy's Birthright! He Doesn't Believe In Taking Turns!

That's why his defeat came as such a shock...

[InkAddict]

39. Not so funny if it happens to you.

but very empathetic, dark humor - Just look at those lenders haulin' off those folks' built-in-China flat/full-screen alive with the MSM's bought-and-paid-for programming.

The loss of the house itself may not be the worst for some - it's bereavement for the loss of long stewardship over a little (or not so little) piece of one's own Tara - Paraphrasing Gerald O'Hara -"It's the land, Katie Scarlet; it's the only thing that matters."

Or, "I had a farm in Africa." - Out of Africa - Isaac Dierksen - Even the author, a grown, very independent woman had to go back to live in the family home in England, leaving her love, her friends, and her failed venture and property behind.

Yeah, I know - I watch too many movies - (sigh).

[ozymandius]

2. Market WrapUp: Rotation, Rotation, Rotation

BY FRANK BARBERA, CMT

At times like these in the capital markets, where volatility resides at very high levels, capital will frequently rotate quickly from sector to sector. Over the last 5 to 10 days the financials, the REITS, and the Homebuilders have been the leadership for the stock market, all of these groups bouncing off of what was a deeply oversold value. Yet, a quick look through some of the sector charts shows that these sectors, after enjoying a sizeable bounce, are now back to overbought condition. In the chart below, we see the Relative Strength Ratio of the Banking Sector versus the S&P 500 with the recent bounce moving the group back up toward resistance at the declining 100 day, or 20 week moving average. In addition, the 14 day RSI has also very quickly moved back up to the fully overbought threshold near +68 to +70.

-see chart-

Likewise, the Homebuilders have also moved back up to a fully overbought condition after enjoying a nearly 50% bounce off the oversold lows. As of yesterday's close, the medium term ARMS Index for the Homebuilders was well below the .70 lower overbought threshold on the ARMS Index. Looking back at the course of the bear market, these types of very low ARMS Index readings have been associated with important peaks for the sector. Thus, the need to remain nimble and to key money working in oversold sectors. So what’s still fairly oversold right now? Well, perhaps chief among the oversold victims is our battered currency, the US Dollar, which looks about as oversold as it has been at any time during the last 40 years.
.....

Overall, last week's market did a very good job of climbing the “wall of worry’ and advancing against a steady tide of negative news (Google, Amazon, the Monolines, etc.). This is usually an indication of a market that wants to move still higher, and with the Fed opening the spigots, the old Marty Zweig tenant of “Don’t Fight the Fed” comes to mind. In addition, in looking for clues and near term directional guidance the same 10 day / 50 day moving average combination (discussed for Gold earlier) is also of interest for the S&P at this time.

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

[Demeter]

8. Makes Me Think of Cockroaches Looking for a Safe Corner to Hide In

Or mice stuck in a maze....

[ozymandius]

11. Your cockroach analogy is spot-on.

Money looking for shelter and finding none. According to the WrapUp, even so-called "recession proof" industries have been oversold.

[InkAddict]

45. Looks like there will be some work to be had in Memphis and Jackson

that is, when the financing gets worked out--attention insurers/re-insurers. Lot of lives and property damage/loss - So Sad!

[AnneD]

86. Ozy...

wasn't that the title of a song from The Yard Birds, based on Ecclesiastes.;)

[TalkingDog]

96. Ha! I'm so old, I got that!

Though it does sorta kill the scanscion.



My Favorite Master Artist: Karen Parker GhostWoman Studios

[AnneD]

106. We aren't old...

just seasoned really well.

[kineneb]

131. written by Pete Seeger in the 1950s

most well-known version recorded by The Byrds.
-one of the DU resident music historians, at your service. :hi:

http://en.wikipedia.org/wiki/Turn!_Turn!_Turn!_(to_Everything_There_Is_a_Season)

For every trader
Churn, churn, churn.
There is an ulcer,
Churn, churn, churn.

[OnceUponTimeOnTheNet]

4. k&r.

[ozymandius]

5. Oil near $88 on recession concerns

SINGAPORE - Oil prices fell Wednesday as global stock markets plunged on fears of a U.S. recession, and ahead of a U.S. petroleum supply report expected to show crude supplies rose last week.

Financial markets were surprised by data in the United States that indicated the traditionally strong service sector shrank dramatically last month, raising the prospect that demand for energy will weaken along with the economy.

The Institute for Supply Management said its index of activity in the U.S. service sector, which makes up about two-thirds of the economy there, fell below 50, indicating contraction. Analysts had expected more growth in the sector, which had not contracted for nearly five years.
.....

Light, sweet crude for March delivery dropped 20 cents to $88.21 a barrel in Asian electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract fell $1.61 to settle at $88.41 a barrel on Tuesday.

The U.S. Energy Department was to issue its weekly report on oil inventories later Wednesday. Crude supplies were forecast to have grown last week by 2.6 million barrels, according to the average estimate of analysts surveyed by Dow Jones Newswires.

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

[Demeter]

9. After all, Can't Eat Oil, and Can't Afford It, Either

[InkAddict]

48. Maybe horse versus horsepower was a better

if not greener, idea,

[Demeter]

50. With Composting, It's the Better Choice

[InkAddict]

67. Hurray - ponies for everybody. n/t

Ought to create a lot of new bubble, green, jobs too.

[AnneD]

75. Morning Marketeers...

:donut: and lurkers......It's pool day so bring your floaties (no floaters allowed, uhumm).

It's time for the Turn Back the Hands of Time Pool


Guess the date the DJIA rolls back to the level it was when the chimp took office.You can revise your dates up until Labour Day (the working man's holiday)or the DJIA hits 11000 (got to have a cut off). Anyone can join, just give a date and your reasoning for that date.

the other one.....1/30
DemReadingDU.....2/29
Talking Dog.....3/28 at 2 pmish
Warpy...3/20
ProgressiveRealist.....4/17
Mattsh.....4/22
GhostDog.....4/28
MilesColtrain.....5/2
Happyslug.....5/9
UIA.....7/15
Roland99.....7/28
Abelenkpe.....8/2
Kineneb.....8/8
Prag.....9/5
MoJo Rabbit.....9/5
MuleBoy(aka hiz honna da mayor).....9/11
Birthmark....10/10
AnneD....10/24
MsLeopard.....10/31
Ship wrack.....11/5

Remember-you can change the dates as we learn more. The winner get the praise and admiration of those on the Stockwatch Thread.

Our theme today is Louis Armstrong. Love ya once, love ya twice, love ya more than beans and rice.

Happy hunting and watch out for the bears.

[Hugin]

79. Yay! It's Louis Armstrong Day!

:bounce:

[AnneD]

89. Louis Armstrong Facts....

Born an illegitimate black child, was the grandson of slaves.
Worked as a paperboy, found and sold discarded food to bring in money.
Mother worked as a prostitute to help bring in money.
Exposed to Creole music in the Red Light District.
Borrowed money from an immigrant russian Jew named Karnofskys to purchase first coronet. They basically adopted him, and to honour them he wore a star of david the rest of his life.
Adopted his cousin's mentally disabled son and care for him all his life.
Was fond of marijuana and wrote a song called 'Muggles' (the nick name of marijuana-watch out J.K.Rowling).
In 1964 his recording of Hello Dolly knocked the Beatles from their #1 position after 14 weeks.

I love this quote from Wikipedia which sums up his life....

Armstrong grew up at the bottom of the social ladder, in a highly segregated city, but one which lived in a constant fervor of music, ..... Despite the hard early days, Armstrong seldom looked back at his youth as the worst of times but instead drew inspiration from it, “Every time I close my eyes blowing that trumpet of mine—I look right in the heart of good old New Orleans...It has given me something to live for.”

[Hugin]

93. It also says here...

He was a major financial backer of Dr. MLK.

Wow.

The things I learn.

http://en.wikipedia.org/wiki/Louis_Armstrong#Personality

[AnneD]

104. He had the brass (so to speak)

to call Ike ... "two-faced" and "gutless" because of his inaction during the conflict over school desegregation in Little Rock, Arkansas in 1957 made national news."

[ozymandius]

6. Today's Reports

8:30 AM Productivity-Prel Q4
Briefing Forecast 0.0%
Market Expects 0.5%
Prior 6.3%

10:30 AM Crude Inventories 02/02
Briefing Forecast NA
Market Expects NA
Prior NA

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

[UpInArms]

41. U.S. Q4 productivity up 1.8% vs. 0.8% expected

14. U.S. unit labor costs up 3.1% in 2007 vs 2.9% in 2006
8:30 AM ET, Feb 06, 2008 - 1 hour ago

15. U.S. productivity up 1.6% in 2007 vs 1.0% in 2006
8:30 AM ET, Feb 06, 2008 - 1 hour ago

16. U.S. Q3 productivity revised to up 6.0% from 6.3%
8:30 AM ET, Feb 06, 2008 - 1 hour ago

17. U.S. Q4 hours worked down 1.5%, biggest drop since Q1 '03
8:30 AM ET, Feb 06, 2008 - 1 hour ago

18. U.S. Q4 unit labor cost up 2.1% vs 3.5 % expected
8:30 AM ET, Feb 06, 2008 - 1 hour ago

19. U.S. Q4 productivity up 1.8% vs. 0.8% expected
8:30 AM ET, Feb 06, 2008 - 1 hour ago

[ozymandius]

49. Productivity hits lull in fourth quarter

Labor Department says rate increased at 1.8% annual rate, down from 6% in third quarter; figure still tops economist prognostications.

WASHINGTON (AP) -- Worker productivity, the key factor in rising living standards, slowed sharply in the final three months of the year while wage pressures increased.

The Labor Department reported Wednesday that productivity, the amount of output per hour of work, increased at an annual rate of 1.8 percent in the October-December quarter, down from a 6 percent performance in the July-September period. Surveyed economists predicted an increase of only 0.5 percent. The slowdown reflected the fact that overall economic activity weakened considerably in the final three months of last year.

Labor costs rose by 2.1 percent in the final three months of the year, after having fallen by 1.9 percent in the third quarter and 1.1 percent in the second quarter.

For the year, productivity rose by 1.6 percent, a slight rebound from a 1 percent gain in 2006 but both years were well below the average annual increases of 3.2 percent turned in from 2000 through 2004.

http://money.cnn.com/2008/02/06/news/economy/bc.us.economy.ap/index.htm?postversion=2008020608

[ozymandius]

10. Asian stocks sink after Dow's plunge

BANGKOK, Thailand - Asian markets plunged Wednesday after a steep drop on Wall Street overnight fanned investors' fears the U.S. economy was sliding into a recession that would sap demand for Asian exports.

European stocks fell modestly in early trading after having tumbled the previous day, while U.S. futures indexes were mixed.

Global investors dumped shares after figures released Tuesday showed the U.S. service sector shrank last month for the first time since March 2003. That wiped out some renewed confidence about the American economy after the U.S. Federal Reserve's two big rate cuts late last month.
.....

In Hong Kong, the benchmark Hang Seng index plunged 1,339.24 points, or 5.4 percent, to close the half-day session at 23,469.46. Japan's Nikkei 225 index tumbled 4.7 percent to 13,099.24.

http://news.yahoo.com/s/ap/20080206/ap_on_bi_ge/world_markets

[Ghost Dog]

74. Asian Stocks Drop as U.S. Service Industries Shrink; BHP Falls

Feb. 6 (Bloomberg) -- Asian stocks fell, with the region's benchmark sliding the most in two weeks, after a surprise contraction in U.S. service industries fueled concern that the world's largest economy is in a recession.

Nintendo Co. and Li & Fung Ltd., reliant on the U.S. for more than a third of their sales, paced declines. BHP Billiton Ltd. had its biggest slump since December 1987 after it raised a bid for Rio Tinto Group and reported a drop in profit. PetroChina Co. led commodity producers lower after oil and metals prices retreated.

``The outlook for earnings in Asia will remain suspect until the extent of a U.S. slowdown is determined,'' said Patrick Manaloto, who helps oversee $5.5 billion of assets at BPI Asset Management Inc. in Manila. ``Some investors believe that the contraction in the U.S. services sector is a clear sign of recession.''

The MSCI Asia-Pacific Index slipped 3.4 percent to 142.10 as of 7:01 p.m. in Tokyo, the most since Jan. 22. Hong Kong's Hang Seng Index slid 5.4 percent, more than any index in the world, ahead of Lunar New Year holidays. Markets in China, South Korea, Taiwan and New Zealand were closed today. Hong Kong and Singapore shut after morning trading.

The Nikkei 225 Stock Average lost 4.7 percent to 13,099.24, the biggest decline since Jan. 22. Namco Bandai Holdings Inc., creator of `Pac-Man,' had the biggest decline on MSCI's Asian benchmark after forecasting lower profit.

The holidays are ``certainly a factor in this part of Asia but we're also seeing uniform selling across the region,'' said Jay Moghe, who helps manage about $150 million at Opes Prime Asset Management in Singapore. ``We're seeing some pretty nasty numbers pointing to a slowdown in the U.S.''

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=aVwQv4YZPs5c&refer=asia

[Ghost Dog]

77. Asian markets stumble on US doubts

(FT) Asia-Pacific stock markets plunged on Wednesday, tracking Wall Street's biggest fall in nearly a year after one of the most worrying statistical signs yet that the US economy is entering a recession. The declines highlighted growing investor fears that Asian economies haven't decoupled from the US to the extent previously thought.

The Nikkei 225 index tumbled 4.7 per cent to close at 13,099.24, only the tenth decline in a decade that large but the third such decline in six months. The broader Topix lost 4.2 per cent to 1,298.41. Japanese government March 10-year bond futures had their biggest one-day price gain in about six months.

Hong Kong sank 5.4 per cent to 23,469.46, while its sub index of mainland shares slid 6.9 per cent to 13,067.11. The declines were exacerbated by thin trading as investors headed home at lunchtime when the market closed for the Lunar New Year holiday. China, South Korea and Taiwan did not open.

"Clearly we had a little bit of a reprieve in the last two weeks ever since the emergency Fed rate cut, but now the negative sentiment is brewing up and the market is becoming more and more focussed on the downside," said Joseph Kraft, managing director in charge of capital markets at Dresdner Kleinwort in Tokyo. "In that regards, for the first time in a long time, the G7 meeting really plays an important role in driving the market for at least next week, and if it can't come through to allay market fears, the markets could start hitting hard," Mr Kraft said.

The Institute of Supply Management's non-manufacturing index fell below 50 in January, showing that most US companies surveyed expect their business to shrink rather than grow, a bad omen for Asian exporters relaint on the US market.

"The ISM survey pretty much shows us that the US is already in a recession, and it's going to take some time to work its way out of it," said a trader in Singapore. "It's pretty much in our faces that the bad times are beginning to bite in America in the real economy. The latest news is very negative, and it's a disturbing time for people who invest in the consumer cycle."

The downbeat view of the US hit Japanese electronics companies. Games maker Nintendo slumped by 4.3 per cent to Y46,550. Office equipment and camera producer Canon (NYSE:CAJ) fell by 4 per cent to Y4,350. Honda Motor (NYSE:HMC) skidded 3.3 per cent to Y3,200 and rival Nissan Motor (NASDAQ:NSANY) lost 4.6 per cent to Y957.

Banking and real estate stocks were hit across the board in Asia Pacific. The Topix banking sub-index slid 4 per cent while the insurance sub-index dropped 6.3 per cent. Non-bank financials dropped after Japan's biggest non-bank lender, Orix (NYSE:IX), slashed its profit forecast and several brokers downgraded its shares. Its shares closed down 11 per cent at Y16,030.

/... http://news.yahoo.com/s/ft/20080206/bs_ft/fto020620080417356926;_ylt=At5de7vIcA00M47.f1139Sv2ULEF

[Ghost Dog]

78. Japan's Leading Index Signals Economic Slowdown for Fifth Month

Feb. 6 (Bloomberg) -- Japan's economic expansion is likely to stall amid fallout from the U.S. slowdown, the government's broadest indicator of future growth signaled for a fifth month.

The leading index was at 40 percent in December, below the threshold of 50 that signals growth will slow in the next three to six months, the Cabinet Office said today in Tokyo. The result matched the median estimate of 32 economists surveyed.

Manufacturers plan to cut production as export growth slows, and consumer confidence at a four-year low suggests spending at home is unlikely to make up for the drop in overseas demand. The risk of a slowdown has probably taken an interest-rate increase by the Bank of Japan off the table.

``The Japanese economic outlook could become increasingly fragile in the first half of the year,'' said Hiromichi Shirakawa, chief economist at Credit Suisse Group in Tokyo. ``The growing risk of a domestic recession is likely to prevent the Bank of Japan from hiking rates before the middle of 2009.''

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=aC3DeqTekwCo&refer=asia

[Demeter]

13. FREAKING DOOMED BY DOUBLING POWER by The Mogambo Guru

http://www.dailyreckoning.com/Writers/MogamboGuru.html

Dave Gonigam at The Desidooru Saloon reports that it looks like the “economic stimulus plan” being formulated and enacted by the government will, “result in tax rebates of $300 per person, $600 per couple, just like when the same scheme was used in 2001.” The funny part is that Gonigam notes that, “$300 per person did nothing to goose the economy in 2001, and it’ll do even less now.” Immediately, they were hooted down by non-believers who said, “Says who? You? If you are being quoted by that Lowlife Mogambo Idiot (LMI), then you must be an idiot, too!” But good old Dave was cool, and just said, with the hint of a mocking smile in his voice, “Using the Minneapolis Fed’s handy-dandy inflation calculator, just equaling that figure adjusted for inflation would take $350.” Hahaha! Thanks to the incompetence of government, the dollar has been devalued by 17% since 2001? Hahaha! We’re freaking doomed!...“And”, he goes on, “God only knows what it would be if the inflation numbers weren’t doctored; the fearless John Williams says if the CPI were calculated the way it was back in Jimmy Carter’s day, it would be close to 12%.” Yikes! Inflation at 12%!

Hoping that they were wrong, because this rate of inflation would be horrendous, I went to Mr. William’s ShadowStats.com to find, sure enough, that inflation has taken a sudden spike to 12%, with no sign of stopping! Yikes! Suddenly, I was surprised that people were clapping me on the back and congratulating me on actually looking something up for myself, instead of me always stealing the ideas and work of other people and other employees.

And it must have surprised Bill Bonner, too, who also had a wry take on the stimulus package, which, “is only $145 billion. U.S. stocks lost more than twice that much in the first few seconds of trading (Monday).” Hahaha! Good point! And when you plug this kind of loss into the Federal Reserve’s precious little models containing the “wealth effect”, then things get real gloomy, and pretty soon you are really getting scared, and you know it is only a matter of time before you pee in your pants out of sheer terror, and I’ll bet everyone at the Federal Reserve is wearing a disposable adult diaper under their clothes right now, just like I am here in the Ultimate Mogambo Bunker (UMB), and believe me it is mighty, mighty comforting! Mr. Bonner, as usual, is apparently not into discussing nasty little people like me peeing in their pants and swilling wine out of a bottle in a paper sack, and says, “And the whole idea of providing more cash and credit is the wrong strategy anyway. These efforts at Keynesian stimulus were designed to overcome a different kind of enemy...a case where consumer demand was low...or where consumers saved too much money. Keynes worried that people had a ‘propensity to save,’ which needed to be corrected by reducing the returns to savers. But the real rate on savings now is less than zero. And the savings rate is down to minus 0.5% of disposable income.”...“No,” he says, “the problem is not that consumers spend too little, but that they spend too much they don’t have. Nor is the problem that consumers save too much, but that they don’t save enough.”

True enough! And then I notice that all of this leads to the big freaking problem of falling tax revenues. As the American economy morphed into one that relies on government spending for over half of all economic activity, any drop in revenues is bad news at the federal level, but catastrophic news if you are a citizen in one of the states that spent every extra dime of revenue from the boom to create permanent spending programs. And most did! Hahaha!

Jim Sinclair at jsmineset.com agrees with me, even though everyone is too polite to tell him so, and says that, “lower economic activity equals lower profits”, which is bad enough for investors, but that, “Lower profits leads to lower Federal Tax revenues”, which is even worse for the enormous, sprawling, rapacious system of government with which we have saddled ourselves, which is enough to send me into a Mogambo Screaming Fit Of Outrage (MSFOO) because these government weenies are going to be borrowing lots and lots and lots of money, creating money and debt like crazy during the long, ugly coming economic downturn, which means higher taxes at the exact wrong time of the cycle or less government spending at the exact wrong time of the cycle, too...In fact, I was actually taking in a deep breath to really start the MSFOO in style, when I was saved from certain embarrassment by Mr. Sinclair, who says that the problem is a lot worse than I think, because, “Lower Federal tax revenues in the face of increased Federal spending causes geometric, not arithmetic, rises in the US Federal Budget deficit. This is also true for cities & States as it is for the Federal government.”
And if you want to see what happens in a geometric rise, take a blank piece of paper and write down a 1, double it to get 2, double that to get 4, double that to get 8, double that to get 16, and keep doubling and doubling until the numbers reach a point where you suddenly leap to your feet and say, “Holy crap, Batman! That Stupid Mogambo Moron (SMM) is right; we’re freaking doomed!”

[ozymandius]

14. U.S. service sector slows down

NEW YORK - Lingering hopes that the U.S. economy might avert a recession withered Tuesday after the nation's service sector — its banks, travel companies, contractors and stores, among others — shrank for the first time in five years.

It was unwelcome news for many investors, who were beginning to believe that the Federal Reserve might engineer a way out of the worst economic slowdown since 1991. Stocks tumbled, with the Dow Jones industrial average losing 370 points, its biggest point drop since August.

Much of the talk was not about whether there would be a recession, but about how bad it might be.
.....

Moving company Allied Van Lines filed for bankruptcy on Tuesday, saying it had fallen victim to the downturn in the housing market and its own heavy debt load. Charming Shoppes Inc. — which runs the Petite Sophisticate and Lane Bryant clothing stores — said it would cut 200 jobs and close 150 stores.

http://news.yahoo.com/s/ap/20080206/ap_on_bi_ge/economy

[burf]

29. We have lost the

manufacturing jobs to the service sector. Now the service sector jobs are declining. What is the next stop on the way to the bottom?

[DemReadingDU]

31. Using the barter system?

There will always be entrepreneurs and scammers, but the rest of us will need to resort to bartering for what we need and use.

[ozymandius]

33. I am making beer again. Meade too.

That is always currency, provided it's good.

[Dr.Phool]

35. When do they start passing out the free cheese again?

[burf]

37. Hey Dr.Phool

that cheese was pretty good if my memory serves me correct. Might go pretty good with the chokecherry wine! We could all get together and Ozy could bring his beer and we would have a SMW party!

[AnneD]

82. Most of the relatives on Dad's side...

live on or around the reservation. We could always count on having grilled cheese sandwiches when we visited Grandpa. Mom would make them for him and we would sit up late (well for us wee ones it was late) by the pot bellied stove and eat a small snack of grilled cheese sandwich and listen to Grandpa's stories. Don't know which was better, her sandwiches or his stories. Those commodities made a difference in a subsistence farm family's life.

[Demeter]

122. The Modern Cheese Is Low Fat And It's DREADFUL!

It doesn't even melt. Like naval orange plastic.

[InkAddict]

56. They're not

Dairy products are out-of-sight; expenses to get the milk to market - They'll be killin' the cows for fun or food (for the troops, of course) - NO CHEESE FOR YOU!

[DemReadingDU]

59. We received Land O'Lakes cheese

and it was very good!

This was during the late 70's. I was home with 2 babies, and there was no union construction work for spouse so he was on unemployment. We had only 1 car, and we were wrapping rolls of coins to go buy bananas. We survived, and can do it again, as it looks like a bad recession is a strong possibility.

[TalkingDog]

99. I remember "Gub'mint" cheese. It was tasty.

Better than the "singles" and gustatory heaven compared to that Velveeta swill.

A big block like 2 bricks laid end to end.

What else did they have? There was other food. Oh, yeah, the generic cans. White with a block leter label: BEANS or CORN. They didn't pass that out too often though, it was mostly the cheese.....


Ah.....bad times....bad times..... (nostalgia free for over 40 years)

My Favorite Master Artist: Karen Parker GhostWoman Studios

[kineneb]

132. today's take from the Gleaners (free... food ?):

2 lbs. spaghetti noodles
1 15oz can spaghetti sauce
1 15oz can peaches
1 15oz can green beans

Not much, and no protein.

Seems there must be a glut of canned green beans; I think I have at least 5 cans in the pantry from previous hand-outs. Anyone need canned green beans?

[burf]

36. That reminds me

I have a bunch of chokecherry juice we canned last summer. Might make some pretty fine wine! I haven't made any in years so I hope I still remember how. But of course it would be only for medicinal purposes.

[Dr.Phool]

38. I've got 10 gallons of wine I made last year.

5 gal of dry concord, and 5 gal of cabernet. We can all get together under the bridge and have a wine and cheese party!

[UpInArms]

52. I'll furnish the shelter!

[InkAddict]

60. Can we smoke (outside, of course)?

I'll contribute the remaining homemade crabapple wine and some "closin' on 50-year" CC

"I HAD a cherry and apple tree in Ohio."

[UpInArms]

76. of course! - and even though

I quit smoking a year and a half ago, I still occasionally like that virtual thing :)

:smoke:

[AnneD]

91. I love to engage in all the virtual vices.....

:smoke::beer::popcorn: all the sin none of the guilt.:rofl:

[DemReadingDU]

53. Cheers!

:toast:

[ozymandius]

51. Recession is here - economists

NEW YORK (CNNMoney.com) -- A growing number of top economists believe that the U.S. economy has now toppled into recession.

Alarm bells were set off Tuesday by a grim report on service businesses, which make up the majority of the U.S. economy.

The Institute of Supply Management said that activity in the service sector declined for the first time in nearly five years. This report also indicated that employers are cutting staff.

The survey covers the retail, transportation and health care industries as well as hard hit areas such as finance, real estate and construction.

Some economists argued that the normally low-profile ISM services reading, coupled with the government's report Friday showing the first monthly net loss in jobs in more than four years, is proof that recession is now a reality.

http://money.cnn.com/2008/02/05/news/economy/recession/index.htm?postversion=2008020512

I know two independent bar and coffee shop owners. Both are cutting staff either through hours reduction or by layoffs or natural attrition.

[Hugin]

62. Oh? Could've fooled me...

:eyes:

Dang, when even those wildly liberal economists are saying it... Could be.

[Warpy]

71. Well, duh

You don't pay people enough to live on, don't expect them to go out to the glittering malls and buy all that shit you don't pay people in China enough to live on to produce.

All it took was a tightening of one area of the credit market. Mr. and Mrs. McMansion can still go out and put more on those ever increasing credit card balances, but they can no longer pay it off by using their house as an ATM.

The result is that the consumer spree is OVER. Until they start to address demand side economics in this country, something which will require addressing things like the tax structure and financial regulations, we'll continue to freefall into deep recession.

We'll be lucky if that's all it is.

[ozymandius]

16. White House open to compromise on stimulus plan

WASHINGTON (Reuters) - The White House on Tuesday opened the door to expanding an economic stimulus plan to revive the ailing U.S. economy when a top official offered to extend a tax rebate to some 20 million retirees and disabled veterans.

"We recognize the difficulties that low-income seniors and veterans are facing and I'm sure we will be able to work something out, get something quickly done that is broad-based," Treasury Secretary Henry Paulson told the Senate Finance Committee.

The two groups were been included in a bill passed by the House of Representatives, with White House backing, meant to jolt the economy and fend off a slide into recession.

But Paulson said the administration opposed some provisions in a parallel bill passed by the Senate Finance Committee last week, which included extra unemployment benefits and tax credits for some renewable energy resources.

http://news.yahoo.com/s/nm/20080206/us_nm/usa_economy_stimulus_dc_1

[TalkingDog]

19. *sniff..sniff* Compromise?..... I smell fear *snuffle, sniff*

And desperation...

ugh... and rot and corruption and hypocricy....

Sorry, I need to go bleach out my nose now. Yuck.


My Favorite Master Artist: Karen Parker GhostWoman Studios

[Demeter]

24. It's a Dog's Life, Isn't It?

[UpInArms]

20. dollar watch

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

Last trade 76.168 Change +0.049 (+0.06%)

Why Is The Dollar So Strong?

http://www.dailyfx.com/story/topheadline/Why_Is_The_Dollar_So_1202291778275.html

Friday morning February 1st appeared to be an ideal time to be a dollar bear. The EURUSD was trading near the 1.4900 level itching to make a run at the key psychological 1.5000 figure. The just released news of a sharp contraction in Non-Farm payrolls – the first negative reading in more that four years – was a stark confirmation that the US economy was on the verge of tipping into a recession. Coming as it did only two days after a very weak US Q4 GDP number, the dour employment data suggested that the Fed will have to continue easing rates for the foreseeable future.

Getting Stopped Out

With euro already enjoying a 100bp interest rate differential against the dollar and with the prospect of that interest rate spread widening even further, the path of least resistance in the pair appeared to up. 1.5000 was within grasp. Many traders including yours truly plowed into a long EURUSD position right after the NFP news and promptly got stopped out. Incredulous, and chalking up the initial price action to mere profit taking I soon re-entered the long EURUSD only to be stopped out again 12 hours later.

Data Points To US Recession

After the second loss, I paused and let reason control my stubbornness and began to wonder – why is the dollar so strong? Fundamentally there are many reasons to be dollar bearish, not the least of which was yesterday’s shockingly weak ISM Non Manufacturing number. ISM No Manufacturing printed at 44.6 – well below the 50 boom/bust line -as every major component of the report from new orders, to employment, to business activity contracted sharply. The news practically assured further Fed easing perhaps by as much as 50bp at the next FOMC meeting in March.

Although the EZ PMI data last night, also showed serious deterioration in demand, suggesting that US economic slowdown may be spreading across the Atlantic, the fact of the matter is that ECB, even if it chooses to lower rates will do so much more gradually that the Fed and the interest rate differential between the two currencies is likely to widen as the 2008 progresses. On the surface this dynamic should provide fuel for further EURUSD rally. Yet price of the EURUSD continues to go down. In technical parlance, the pair has traced out a reversal candle on Friday having failed to break above the 1.4950 level for the third time in a row in the past three months. That area now represents a cement ceiling for the EURUSD and the euro will need to re-build some serious momentum before it can make an assault on new highs again.

...more...

Euro Weakness Persists - Will ECB Follow the Fed?

http://www.dailyfx.com/story/bio2/Euro_Weakness_Persists___Will_1202297982787.html

It was another night of euro selling in the currency market in a generally quiet session marked by absence of any meaningful economic data on the calendar in both the EZ and UK. The EURUSD continues to be affected by rising waves of risk aversion and growing market consensus that ECB will have to change its hawkish course and follow the Fed down the path of more accommodative monetary policy.

In the wake of yesterday -370 point collapse in the Dow, the Nikkei fell another -640 points and the equity price action dragged down the EURJPY cross as well as many of the high yielders such as the Australian dollar. However, by the time European bourses opened for trade much of the appetite for risk liquidation disappeared and both Footsie and DAX remained positive on the day. The performance of the European stock markets helped to stabilize the EURUSD and the pair found support at the 1.4600 figure for most of early European trade.

However, with short term Euribor rates now at their lowest level since August, the euro is likely to feel more selling pressure for the rest of the week. The focus in the currency market appears to have shifted from concern over the contraction of the US economy to anticipating a serious slowdown in economic activity in the Euro-zone. As we state in out special report Why Is The Dollar So Strong? , while the fundamental arguments for EURUSD strength are numerous, the price action has not supported a euro-bullish thesis.

Meanwhile in UK the BRC shop index rose at only 1.2% annual rate, suggesting that price pressures are beginning to ease, leaving the BoE with ample room to lower rates. While many traders were initially fearful of a possible 50bp cut, the UK monetary officials are much more likely to be opt for a more conservative 25bp choice. In fact, former BoE MPC member Stephen Nickell opined that there is a "zero" chance of a 50bp rate cut tomorrow.

...more...

[UpInArms]

73. Ruh-Roh! "Euros Accepted" signs pop up in New York City

http://www.reuters.com/article/bondsNews/idUSN0655798320080206

NEW YORK (Reuters) - In the latest example that the U.S. dollar just ain't what it used to be, some shops in New York City have begun accepting euros and other foreign currency as payment for merchandise.

"We had decided that money is money and we'll take it and just do the exchange whenever we can with our bank," Robert Chu, owner of East Village Wines, told Reuters television.

The increasingly weak U.S. dollar, once considered the king among currencies, has brought waves of European tourists to New York with money to burn and looking to take advantage of hugely favorable exchange rates.

"We didn't realize we would take so much in and there were that many people traveling or having euros to bring in. But some days, you'd be surprised at how many euros you get," Chu said.

...more...

[Ghost Dog]

81. Euro= USD 1.463, GBP 0.746, CHF 1.608 and JPY 156.6 at this time

[Ghost Dog]

83. (UK) Rate cut looks a safe bet as consumer gloom mounts

LONDON (Reuters) - The Bank of England looks almost certain to cut interest rates on Thursday as more evidence emerges that the credit crunch is creating strong headwinds for the economy.

While Britain has yet to suffer the type of sharp slowdown seen in the United States, a teetering housing market and slumping consumer confidence mean the Bank is unlikely to sit on its hands.

A survey by the Nationwide building society on Wednesday showed consumers were more gloomy than at any time since its survey began in 2004. Separate figures showed employers were hiring more slowly and wages were rising at the weakest pace in almost two years.

All 60 economists polled by Reuters expect the Bank to cut rates a quarter point to 5.25 percent this week and money markets show investors expect three more quarter-point cuts before the end of the year.

/... http://www.reuters.com/article/marketsNews/idUKL0647636120080206?rpc=44

[citizen snips]

113. Dollar Creeps Up Vs. Euro, Pound

NEW YORK (AP) -- The dollar edged up against the euro and pound on Wednesday as currencies traded in a tight range ahead of interest rate decisions by the European Central Bank and Bank of England.

The greenback, meanwhile, fell against the yen.

In late New York trading, the 15-nation euro slipped to $1.4628 from $1.4652 late Tuesday. The pound dropped to $1.9601 from $1.9639.

more...
http://biz.yahoo.com/ap/080206/dollar.html?.v=1

[DemReadingDU]

21. WSJ: MBIA-Ambac Timeline

2/4/08
There are times when it appears bond insurers MBIA and Ambac Financial Group are in a tag-team wrestling match with credit-ratings agencies Moody’s Investors Service and Standard & Poor’s.

A long, drawn-out cage match without a time limit, that is. From late October through the end of last week, shares of the bond insurers have been squeezed, pulled, and prodded in any number of directions. Much of that has been on account of the pronouncements of Moody’s and S&P, who still haven’t yet delivered the piledriver — a downgrade of the bond insurers’ all-important triple-A bond rating, one that underpins MBIA’s and Ambac’s ratings of more than $2 trillion in municipal debt.

Most recently, the Financial Times reported that private-equity firms, rumored investors in a bailout of the monoline insurers, were more likely to hold onto their cash in this uncertain environment. Here’s a brief timeline of all that’s happened in the last three months:

see the timeline...
http://blogs.wsj.com/marketbeat/2008/02/04/mbia-ambac-timeline/

[UpInArms]

22. Your tax dollars at work: Cigna 4Q profit up on Medicare D growth

http://news.yahoo.com/s/ap/20080206/ap_on_bi_ge/earns_cigna

PHILADELPHIA - Health insurer Cigna Corp. said Wednesday its fourth-quarter profit rose 13 percent on higher premiums and fees from specialty insurance and Medicare Part D.

Net income rose to $263 million, or 93 cents per share, from $232 million, or 76 cents per share, a year ago. Excluding items, adjusted profit totaled 98 cents per share in the latest period.

<snip>

In December, the company revised its 2007 medical membership growth outlook to 5 percent, excluding 357,000 members Cigna added through the Aug. 1 acquisition of Sagamore Health Network, due to declining enrollment as a result of the soft economy.

Earlier this week, rival Humana Inc. reported its fourth-quarter earnings rose 57 percent on lower taxes and a venture capital investment gain, and raised its 2008 earnings outlook to reflect a lower tax rate.

...more at link...

[UpInArms]

25. Toll Brothers sees 22% fall in home-building revenue

http://www.reuters.com/article/businessNews/idUSWEN380820080206?feedType=RSS&feedName=businessNews?sp=true

NEW YORK (Reuters) - Toll Brothers Inc (TOL.N: Quote, Profile, Research), the largest U.S. luxury home builder, said on Wednesday that it expects to report a 22 percent drop in fiscal first-quarter home-building revenue amid a dire housing market.

Toll said preliminary results for the quarter ended January 31 showed home-building revenue of $842.7 million, down from $1.09 billion in the year-earlier quarter. It is scheduled to release final results for the quarter on February 27.

The company said it also expects to take $150 million to $300 million in first-quarter pretax write-downs of land and land options.

The U.S. housing market has been in a tailspin for more than two years, with demand falling and builders cutting prices in the face of dwindling orders.

...more...

[UpInArms]

26. U.S. recession could be worse than recent downturns

http://www.reuters.com/article/newsOne/idUSN0563297420080205?sp=true

WASHINGTON (Reuters) - The chances of the United States avoiding a recession appear to be growing dimmer by the day, and any contraction in the economy will likely last longer and be more severe than other downturns in the past 20 years.

Recent reports have shown the housing market slump and rising defaults in the mortgage market are now taking their toll on job growth and on the manufacturing and services sector.

But heavy consumer debt, a growing federal budget gap, and rising prices could make any recession worse than Americans have experienced over the past two decades.

<snip>

But the two downturns that ended in 1975 and 1982, when economic conditions bore some similarities to today, each lasted 16 months, making them the longest recessions since the Great Depression of the 1930s, according to the National Bureau of Economic Research, the accepted arbiter of U.S. recessions.

The U.S. economy entered the recessions of 1975 and 1982 saddled with huge government budget deficits from spending on social programs and the Vietnam war, and was suffering double-digit consumer price inflation.

...more...

[spotbird]

27. U.S. Stocks Head for Higher Open

By MADLEN READ – 59 minutes ago

NEW YORK (AP) — Stocks were poised to open modestly higher Wednesday as uneasy investors sought to buy back into a market battered a day earlier by recession worries.

Better-than-expected profit results from Walt Disney Co. seemed to lift Wall Street's mood. Disney posted a 26 percent decline in profit late Tuesday, but the results beat expectations. The company — one of the 30 companies that make up the Dow Jones industrials — reported a 9 percent rise in revenue, thanks in part to the success of brands such as ESPN, "High School Musical" and "Hanna Montana."

http://ap.google.com/article/ALeqM5gHs5OM3gFG_DytQQZFbWfgPT08MAD8UKQSI00

[Demeter]

28. Well, We'll See. I'd Don Crash Helmets and Seat Belts, Though

Because there is no upside.

[burf]

30. This would be funny if it wasn't

so damned sad. Good news for the day: Disney profit is ONLY down 26%.

The politicians better hurry up with those stimulus checks. Then everyone can go to the Magic Kingdom. I can see the adds now, Joe Sixpac and the family waiving their "W Checks" saying the old adage "I going to Disney World!" like they won the World Series.

[ozymandius]

32. and the latest futures/blather

08:35 am : S&P futures vs fair value: +12.9. Nasdaq futures vs fair value: +11.5. Stock futures continue to point to a higher open. Nonfarm productivity rose 1.8%, compared to the expected rise of 0.5%. This release had a slightly positive but mostly muted effect on futures.

08:00 am : S&P futures vs fair value: +11.6. Nasdaq futures vs fair value: +13.3. Stock futures suggest a modest rebound following yesterday’s steep decline when the S&P 500 had its worst day since February 2007. Dow component Walt Disney (DIS) is providing support after the company topped its profit expectations. Time Warner (TWX) also topped its earning estimates.

[UpInArms]

34. We now have that new and improved "Hanna Montana" economy!

Whee!

Hang on folks, it's gonna be a bumpy ride!

[radfringe]

40. lol... until

she crashes and ends up in rehab

[Roland99]

43. 9:41am - And Disney is sprinkling some pixie dust on the markets

Dow 12,295.94 +30.81
Nasdaq 2,312.75 +3.18
S&P 500 1,339.89 +3.25
10 YR 3.60% +0.02
Oil $88.55 $0.14
Gold $900.00 $9.70

[Hugin]

44. Rumor has it they worked over Tinkerbell last night...

There in the 'Slap Happiest Place on the Whole Fricken Earth'.

[Roland99]

47. I might actually be there next month. *sigh*

It *is* magical, though..

[Hugin]

55. Sorry, didn't mean to rain on your Main Street USA! parade...

:o

I have these flash-backs of "Mickey Fatigue" occasionally.

[Roland99]

57. It's my guilty (stepford) pleasure

:-)

[Hugin]

61. Don't we all have those...

:thumbsup:

[MilesColtrane]

66. For me Disneyland always brings H.G. Wells to mind.

It's a happy, carefree place on the surface, but just below, in the maze of underground tunnels, are the low wage Morlocks who toil away maintaining the machinery that keep the Eloi in food, floats, and fun.

But, have a good time if you go, and while you're there don't worry about hungry gangs of Disney "Cast Members" emerging from the bowels of the park in violent search of sustenance.

[Demeter]

88. It's All Plastic

The original in California was at least brick. I hate plastic and concrete and sweating in broiling sun--and I may be heading there in March for family trip. Sigh. I like Busch Gardens, Cypress Gardens, Weekee Watchie, and anything even remotely like real so much better....Even a plain old orchard.

[cosmicdot]

101. Back Story: Radar Magazine had an article

Wild Kingdom: An Excerpt

In a hard-luck year for Disney, what are Mickey, Goofy, and Pluto doing to blow off steam? Getting wasted, hooking up at pimps-and-ho’s parties, trying to get Cinderella in the sack. In this exclusive excerpt from “Wild Kingdom,” Tyler Gray tours the underground hangout of the long-suffering, hard-drinking, cross-dressing denizens of Disney World.

by Tyler Gray

"Before new characters are set loose on Main Street, they must agree not to talk about what goes on behind the scenes. Only then are they allowed into the secret 1.5-mile network of tunnels (formally known as the “utilidor”) that allows costumed employees to move through the park, take breaks, and relax, far from public view."

more

http://radaronline.com/magazine/features/2005/05/wild-kingdom-an-excerpt.php

[MilesColtrane]

126. I used to know a musician who spent a couple of summers working at Disney World.

Hey began to refer to it as Mauschwitz.

[TalkingDog]

102. Back my librarian days I guess. A recommendation:

The American Replacement of Nature by William Irwin Thompson

Small book, easy read as far as that goes. He uses Disney as a touch stone for the idea that Americans fear and reject what they cannot control: nature, sexuality, even down to the hyper-processed food we eat.

It will resonate with many here and open the eyes of others who could never quite put their finger on what is "wrong" with the way we approach life and living.


My Favorite Master Artist: Karen Parker GhostWoman Studios

[MilesColtrane]

127. Sounds interesting...thanks.

[Hugin]

42. ~09:30 ET: and they're offal... uh, off?

Index Last Change % change
• DJIA 12312.28 +47.15 +0.38%
• NASDAQ 2320.42 +10.85 +0.47%
• S&P 500 1343.85 +7.21 +0.54%

[ozymandius]

46. starting to choke

9:45
Dow 12,279.93 Up 14.80 (0.12%)
Nasdaq 2,309.88 Up 0.31 (0.01%)
S&P 500 1,338.52 Up 1.88 (0.14%)
10-Yr Bond 3.607% Up 0.02
NYSE Volume 256,040,687.5
Nasdaq Volume 130,980,609.375

09:40 am : Stocks open modestly higher, but still have a long way to go to make up yesterday's steep losses that were spurred by economic concerns. All ten sectors are posting a gain.

This session's buying interest is being spurred by a rebound bid after yesterday the S&P 500 posted its largest decline since February 2007. Dow component Walt Disney (DIS) is also lending support after the company reported earnings that topped expectations.DJ30 +52.11 NASDAQ +11.07 SP500 +6.75

[UpInArms]

54. 9:58 EST Hanna Montana rally almost over

Dow 12,258.14 6.99 (0.06%)
Nasdaq 2,313.19 3.62 (0.16%)
S&P 500 1,336.34 0.30 (0.02%)
10-Yr Bond 3.605% 0.018

NYSE Volume 397,180,937.5
Nasdaq Volume 225,799,015.625

[Hugin]

58. ~10:00 ET: Pixie dust reapplied...

Index Last Change % change
• DJIA 12310.00 +44.87 +0.37%
• NASDAQ 2323.06 +13.49 +0.58%
• S&P 500 1342.24 +5.60 +0.42%

[Hugin]

63. ~10:30 ET: In other news...

Looks like Heath Ledger might have had an accidental overdose.

Index Last Change % change
• DJIA 12309.43 +44.30 +0.36%
• NASDAQ 2323.57 +14.00 +0.61%
• S&P 500 1343.52 +6.88 +0.51%

Any check kiting operations lately, UIA?

[mnhtnbb]

64. Hulbert interprets volatility as correlation to bottom. I am in the camp of wondering how many more

days like Tuesday I can take.


http://www.marketwatch.com/news/story/put-recent-market-volatility-historical/story.aspx?guid=%7B17F89DC7%2D4181%2D48CE%2DB9C2%2D42F3AEC576B0%7D&siteid=yhoof

[Hugin]

65. I'm of the opinion volatility indicates a solid indicator of 'Stagflation'...

Pls, see the "Scurrying Cockroach Theory" up-thread.

[Roland99]

68. 11:56am - Let's all think happy thoughts

Dow 12,354.22 89.09
Nasdaq 2,331.30 21.73
S&P 500 1,348.13 11.49
10 YR 3.62% 0.04
Oil $87.10 $-1.31
Gold $907.30 $17.00


If oil can touch $80 soon or esp. drop just below it, I think it will go way down as its value as a currency will be in jeopardy and traders will look to lock in profits.

[antigop]

69. Monolines downgrades could hit banks

http://www.ft.com/cms/s/0/b5655a7a-d41c-11dc-a8c6-0000779fd2ac.html

Standard & Poor’s, the credit rating agency that is considering downgrading the top triple-A credit ratings of bond insurers, warned that the move could be damaging for banks with direct exposure to the insurers.

The forecast came as bond insurers including Ambac, FGIC, MBIA and SCA continue frantic efforts to raise capital to avoid downgrades.

Banks with exposure to the insurers are in talks about providing capital. One group is discussing a deal related to Ambac, and another group of banks is believed to be considering raising funds for FGIC, partly owned by Blackstone Group, the private equity firm.
...
Although it did not specify which banks were most exposed, S&P noted that Citibank, Merrill Lynch and CIBC had all reported hedges on the so-called super- senior tranches of high-grade CDOs and had recently taken reserves for counterparty risk.

“The value of those hedges has increased as the value of the underlying CDOs has fallen and can be presumed to be 40 per cent to 60 per cent of the notional amounts,” said Tanya Azarchs, analyst at S&P. “More reserving may be necessary to reflect the increase in counterparty risk, if the ratings on guarantors are lowered.”

[UpInArms]

72. Merrill ratings most at risk from insurers, CDOs-S&P

http://www.reuters.com/article/bondsNews/idUSN0658574520080206

NEW YORK, Feb 6 (Reuters) - Ratings of Merrill Lynch & Co (MER.N: Quote, Profile, Research) are most at risk among financial institutions from troubles at bond insurers and collateralized debt obligations, Standard & Poor's said Wednesday.

Speaking on a conference call on U.S. financial institutions, S&P analysts also said that if bond insurers are downgraded, but only to the "double-A" level, that alone may not trigger ratings downgrades for banks and brokers. But it would be considered along with other issues.

[Hugin]

70. ~12:30 ET: Dead cat bounce... er, Rebound.

Trying to stay positive here... ;)

Index Last Change % change
• DJIA 12341.46 +76.33 +0.62%
• NASDAQ 2328.25 +18.68 +0.81%
• S&P 500 1345.81 +9.17 +0.69%

[TalkingDog]

103. Then wouldn't that be: Transitioned Feline Uplift, instead? n/t

My Favorite Master Artist: Karen Parker GhostWoman Studios

[Ghost Dog]

80. European stocks advance as US rebounds

European equities markets recovered from early losses to finish a volatile session higher on Wednesday, reflecting a rebound in US equities on Wall Street.

The FTSE Eurofirst 300 rose 0.6 per cent to 1,322.66, Frankfurt's Xetra Dax climbed 1.2 per cent to 6,847.51, the CAC 40 in Paris gained 0.8 per cent to 4,816.43 and London's FTSE 100 was 0.1 per cent higher at 5,875.4.

French stocks were supported by talk that HSBC was mulling a bid for Societe Generale, the French bank that was recently hit by a EU4.9bn rogue trading loss.

Shares in SocGen rose 3.2 per cent to EU81.75.

However, Deutsche Postbank was Europe's star performer, rising 10.7 per cent to EU57.00.

Investors clamoured to punt on the long-time takeover hope, after the German retail bank's main shareholder, logistics group Deutsche Post, was reported to be looking for a partner for the company.

The volatile solar energy sector suffered, however, after Norway's Renewable Energy Corp revealed cost overruns and production delays at a plant in the US.

REC shares tumbled 10.5 per cent to NKr126.00 on fears the delays would force it to cut 2008 production targets.

This highlighted concerns in the sector over the supply of polysilicon for use in the manufacture of solar panels.

Germany solar panel maker Conergy tumbled 24 per cent to EU13.16 after reporting a EU194 million net loss for 2007. Q-Cells, its domestic rival, fell 1.3 per cent to EU61.00.

/... http://news.yahoo.com/s/ft/20080206/bs_ft/fto020620081232376968

[Ghost Dog]

84. Brazil's stock market tumbles 3 pct after holiday

SAO PAULO, Feb 6 (Reuters) - Brazil's main stock index tumbled more than 3 percent early on Wednesday after a long holiday for Carnival during which global financial markets were rattled by fresh concerns about the U.S. economy.

The Bovespa index .BVSP of the Sao Paulo Stock Exchange slumped 3.14 percent to 59,163.21 points in early trading, posting hefty losses across the board.

/. http://www.reuters.com/article/marketsNews/idLTAN0627800520080206?rpc=44

[Hugin]

85. "Bernanke to testify Feb 14 before Senate panel: source"

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke is scheduled to testify on February 14 before the Senate Banking Committee on the U.S. economy and the state of the U.S. financial markets, a source familiar with the matter said on Tuesday.

Treasury Secretary Henry Paulson and Securities and Exchange Commission Christopher Cox also are slated to testify, the source said.

(Reporting by John Poirier)

http://www.reuters.com/article/domesticNews/idUSWAT00882320080205

___________________________________________________________________________________

My guess is he's to explain that Domestic Turkeys can't fly, even when thrown from Helicopters. :shrug:

[AnneD]

90. I hope they...

show him some luv. :evilgrin:

[Dawggie]

87. WTF is going on with AMD today?

She dropped to $7 at opening today and has been hanging around there ever since and I can't find a PR or news piece to explain this to me.

[Lone_Star_Dem]

94. An analyst forecast more difficulties in their chip delivery causing the 8% drop.

NEW YORK (AP) - Shares of microchip maker Advanced Micro Devices Inc. fell sharply Tuesday as at least one analyst forecast continuing difficulties in its chip delivery.

Wachovia (NYSE:WB) Capital Markets analyst David Wong said he was surprised by AMD's (NYSE:AMD) ability to ship more than 100,000 of its new Barcelona chips in December, despite design problems. However, he said shipments may be to a very limited set of server users.

Wong said Intel (NASDAQ:INTC) may be building market share on AMD's problems with its Barcelona chips and could make 'substantial traction' in the microprocessor market in 2006.

AMD launched its Barcelona processor chips on Sept. 10, 2007 but has suffered a number of setbacks since then. Intel launched a processor chip called Clovertown in November 2006 and followed up with a more advanced chip called Tigerton on Sept. 5, 2007.

Wedbush Morgan Securities analyst Steven Park said recent channel checks suggest some slowdown in notebooks and LCD TVs with weakness in the U.S., Europe, and Japan.
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-22798351.htm

[Roland99]

92. 2:25pm - Pixie dust shaker is empty.

Dow 12,228.31 -36.82
Nasdaq 2,298.17 -11.40
S&P 500 1,333.04 -3.60
10 YR 3.59% 0.01
Oil $86.95 $-1.46
Gold $905.00 $14.70

[Hugin]

95. ~14:45 ET: Someone found a gram or two more in Michael Darling's pocket...

Index Last Change % change
• DJIA 12264.16 -0.97 -0.01%
• NASDAQ 2302.35 -7.22 -0.31%
• S&P 500 1335.90 -0.74 -0.06%

[UpInArms]

97. 3:17 EST all that Hanna Montana Joy Has Left the Building

Dow 12,219.69 45.44 (0.37%)
Nasdaq 2,293.28 16.29 (0.71%)
S&P 500 1,330.04 6.60 (0.49%)
10-Yr Bond 3.614% 0.027

NYSE Volume 2,956,382,000
Nasdaq Volume 1,845,622,250

3:00 pm : The stock market is trading slightly above the unchanged mark after regaining some ground. Philly Fed President Plosser said rate cuts won't solve bond insurers' problems, and that the crisis is complicated, according to Reuters.

242 stocks in the in the S&P 500 are posting a gain. Disney (DIS 31.61, +1.54) and Oracle (ORCL 19.61, +0.35) are posting the largest gains. CME Corp. (CME 509.78, -79.02), the operator of the Chicago Mercantile Exchange, is the main laggard due to the reports that Dept. of Justice is looking to enact new regulations. Apple (AAPL 125.14, -4.22) is also a laggard.

The commodity index is basically flat for the day. The 1.5% slide in crude oil is being offset by the 1.5% gain in gold futures.DJ30 +13.09 NASDAQ -5.11 SP500 +0.60 NASDAQ Dec/Adv/Vol 1537/1404/1.66 bln NYSE Dec/Adv/Vol 1588/1515/981 mln

2:30 pm : The major indices are trading in negative territory and have hit fresh session lows. There does not appear to be a specific catalyst for the recent selling interest, although some of the declines were concentrated around the same time Philadelphia Fed President Plosser commented on the economy.

The decline is broad-based and tech (-0.6%) is showing notable weakness. The IT consulting & services (-3.8%) group is seeing the most weakness. Apple (AAPL 124.63, -4.69) is also a laggard, and is now down 38% from its 52-week high.DJ30 -18.29 NASDAQ -8.84 SP500 -1.82 NASDAQ Dec/Adv/Vol 1521/1402/1.48 bln NYSE Dec/Adv/Vol 1284/1804/840 mln

[UpInArms]

98. !!! - Bond insurers, which guarantee over $2.4 trillion of debt, are struggling

http://www.reuters.com/article/bondsNews/idUSNAT00367920080206

excerpt:

Bond insurers, which guarantee over $2.4 trillion of debt, are struggling now to hold onto their top credit ratings because they have suffered severe losses from backing mortgage securities that have plunged in value over the past year.

[TrogL]

100. 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

2007-12-27 Thursday, December 27 1.01958 USD
2007-12-28 Friday, December 28 1.02208 USD
2007-12-31 Monday, December 31 1.01204 USD
2008-01-01 Tuesday, January 1 1.01204 USD
2008-01-02 Wednesday, January 2 1.00786 USD
2008-01-03 Thursday, January 3 1.00959 USD
2008-01-04 Friday, January 4 1.0012 USD
2008-01-07 Monday, January 7 0.995025 USD
2008-01-08 Tuesday, January 8 1.0015 USD
2008-01-09 Wednesday, January 9 0.991768 USD
2008-01-10 Thursday, January 10 0.986291 USD
2008-01-11 Friday, January 11 0.980584 USD
2008-01-14 Monday, January 14 0.979432 USD
2008-01-15 Tuesday, January 15 0.983574 USD
2008-01-16 Wednesday, January 16 0.976753 USD
2008-01-17 Thursday, January 17 0.971817 USD
2008-01-18 Friday, January 18 0.97144 USD
2008-01-21 Monday, January 21 0.97144 USD
2008-01-22 Tuesday, January 22 0.9758 USD
2008-01-23 Wednesday, January 23 0.972573 USD
2008-01-24 Thursday, January 24 0.99295 USD
2008-01-25 Friday, January 25 0.995619 USD
2008-01-28 Monday, January 28 0.995818 USD
2008-01-29 Tuesday, January 29 1.0022 USD
2008-01-30 Wednesday, January 30 1.00644 USD
2008-01-31 Thursday, January 31 0.998203 USD
2008-02-01 Friday, February 1 1.00614 USD
2008-02-04 Monday, February 4 1.00735 USD
2008-02-05 Tuesday, February 5 0.995718 USD
2008-02-06 Wednesday, February 6 0.997705 USD

Current values

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

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     0.9951 0.9978 0.9951 0.9960 +0.0032 +0.32% 
CD.H08 Mar 2008 0.9943 0.9980 0.9935 0.9948 +0.0033 +0.33% 
CD.M08 Jun 2008 0.9932 0.9932 0.9932 0.9928 +0.0030 +0.30% 
CD.U08 Sep 2008 0.9785 0.9785 0.9780 0.9911 +0.0032 +0.32% 
CD.Z08 Dec 2008 0.9750 0.9750 0.9750 0.9893 +0.0033 +0.33% 
CD.H09 Mar 2009 0.9810 0.9825        0.9875 +0.0032 +0.32% 
CD.M09 Jun 2009 0.9995 0.9995        0.9857 +0.0031 +0.31% 

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

Market              Open    High     Low    Last    Change     Pct 
AUSTRALIAN $/CANADIAN $ (NYBOT:AS)
AS.H08 Mar 2008   0.8834                    0.8984  -0.0036    -0.42%  
AUSTRALIAN $/US$ (NYBOT:AU)
AU.H08 Mar 2008   0.9042                    0.8935  -0.0013    -0.15%  
CANADIAN $/JAPANESE YEN (NYBOT:HY)
HY.H08 Mar 2008   107.000   107.000 107.000 105.665 -0.160     -0.14%  
EURO/AUSTRALIAN $ (NYBOT:RA)
RA.H08 Mar 2008   1.66420   1.66420 1.66420 1.63525 -0.00010   -0.01%  
EURO/BRITISH POUND (NYBOT:GB)
GB.H08 Mar 2008   0.7470    0.7482  0.7470  0.7472  +0.0003    +0.04%   
EURO/CANADIAN $ (NYBOT:EP)
EP.H08 Mar 2008   1.48700   1.48700 1.48700 1.46905 -0.00610   -0.42%  
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.H08 Mar 2008   155.16    155.76  154.73  155.37  -0.75      -0.46%   
EURO/US$ (SMALL) (NYBOT:EO)
EO.H08 Mar 2008   1.46640   1.46640 1.46640 1.46095 -0.00235   -0.16%  

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

The March Canadian Dollar was higher overnight as it consolidates some of Tuesday's decline but remains below the 10-day moving average crossing at 99.81. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 98.86 would confirm that a short-term top has been posted. If March renews the rally off January's low, the reaction high crossing at 101.67 is the next upside target. First resistance is the 10-day moving average crossing at 99.81. Second resistance is last Wednesday's high crossing at 101.20. First support is the 20-day moving average crossing at 98.86. Second support is the 50% retracement level of the 2007 rally crossing at 97.84.


Analysis

I'm posting more by force of habit than anything else. The Alberta Provincial election is in full swing. The loonie's all over the damn place but looks like it's going up through par if it keeps up today's momentum.

[Buttercup McToots]

105. If you have 20 min. watch this... It's in the MSM

http://www.bloomberg.com/avp/avp.asxx?clip=mms://media2.bloomberg.com/cache/v6A3ROrCPZNk.asf

T.J. Marta
RBC Capital Markets...

[TrogL]

124. Watching now

Not much about Canada so far. He's going on about subprime crisis and positing a government step-in.

I love this guy. He's calling the monoline backing collapse the "second level of hell". The problem - who wants bad paper. "The banking system itself needs $140 billion dollar injection of cash".

[TrogL]

128. Goldilocks and doom

Both of them are going on about "goldilocks" as if she's a real person/entity. :wtf:

He said that the current crisis is going to be the equivalent of the S&L, Enron, dotcom and every other crisis in the last 10 years combined.

He's FINALLY started talking about the dollar (greenback). "We are on the precipice of a dollar crisis." "Other countries have realized they drank the Kool-Aid." He's calling for the greenback to be a safe haven as long as the Euro doesn't go to 150.

Predictions:

-commercial real estate is not currently a problem, but is another shoe to drop
-OCC is calling for bank failures in the next few months
-we need a good long recession - they are good because they cleanse the system

Kewl quotes - "we're all consenting adults here"

[TrogL]

123. Closing stuff

Blather

The March Canadian Dollar posted a quiet inside day with a higher close on Wednesday but remains below the 10-day moving average crossing at 99.81. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are overbought and are turning bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at .9886 would confirm that a short-term top has been posted. If March renews the rally off January's low, the 38% retracement level of the November-January decline crossing at 101.62 is the next upside target. First resistance is last Wednesday's high crossing at 101.14. Second resistance is the 38% retracement level crossing at 101.62. First support is Monday's low crossing at 99.12 then the 20-day moving average crossing at 98.86.

Analysis

"Inside day"? Has the loonie been bad? :crazy:

[UpInArms]

107. Dow ends day at psychologically important number 12,200 even

:crazy:

Dow 12,200.10 65.03 (0.53%)
Nasdaq 2,278.75 30.82 (1.33%)
S&P 500 1,326.45 10.19 (0.76%)
10-Yr Bond 3.614% 0.027

NYSE Volume 3,799,418,500
Nasdaq Volume 2,357,679,250

how handy!

[Hugin]

120. I can't tell you how many times I've said to myself...

"If only the Dow was at 12,200... Why, I'd..."

Sure seems psychologically important...

:silly:

[Roland99]

121. Boy they sure pulled that one off nicely, eh?

[UpInArms]

129. here's the blather

4:25 pm : The indication from the futures market this morning suggested the cash market was going to wage a recovery effort when the opening bell rang. While it did just that, aided by Disney's (DIS 31.50, +1.43) better than expected earnings results and BHP Billiton's (BHP 66.10, -3.38) eye-popping $147 billion offer to acquire Rio Tinto (RTP 409.37, -12.13) that was ultimately rejected, the recovery try was short-lived.

As Briefing.com noted in its pre-market commentary, how the session began wasn't going to be as important as how it ended. With the major indices closing near their worst levels of the day, then, Wednesday's session can indeed be labeled a disappointment by market bulls.

Most media sources will attribute comments from Philadelphia Fed President Plosser as the catalyst for the downturn. The fact of the matter is that the market was already fading from its highs (the Dow +125; the Nasdaq +29; and the S&P +15) when comments from Mr. Plosser hit the wires around 13:30 ET.

In particular, Mr. Plosser expressed concerns about the potential for core inflation to remain elevated and conceded that there may be early signs the Fed's credibility is weakening. Soon after, though, he also noted that one can "never say never" about deeper rate cuts. In other words, it was a typical "on the one hand, on the other hand" type of delivery that usually characterizes Fed speeches.

The market, after Tuesday's sell-off, focused on the negative elements of his remarks, namely the inflation concerns, and continued sliding in the early afternoon. There was a brief upturn following the Plosser dip, which goes to show the market wasn't as rattled by the remarks as some contended, yet that rebound try also ran out of steam as growth concerns continued to prevail.

Once again, the losses were fairly broad-based. The health care sector (+0.03%) eked out a slight gain and was the only sector to close the session with a gain. Strikingly, the utilities sector (-0.15%) and the consumer staples sector (-0.27%) exhibited relative strength, which fits with their defensive appeal in times of uncertainty and slower growth.

The energy sector (-1.58%) suffered the biggest loss on Wednesday as a bearish inventory report sparked a 1.5% drop in crude futures to $87.09. Earlier in the day, the Dept. of Energy reported crude stockpiles rose 7.05 million barrels versus an expected build of 2.6 million barrels. The larger than expected build played into concerns about an economic slowdown. Many of the transportation stocks caught a bid, though, with the drop in oil prices and outperformed the market.

Separately, the financial sector, which fell 1.06%, underperformed again with big losses in the exchange space taking a toll. Shares of CME Group (CME 485.25, -103.55) plummeted 17% in the wake of a report that the Dept. of Justice issued a comment letter suggesting the separation of clearing operations from the futures exchanges.

Technology, down 1.4%, was another influential weak spot that weighed on the broader market. True to recent form, the big-cap technology issues were out of favor as evidenced by the 1.8% decline in the Nasdaq 100 that preceded Cisco's (CSCO 23.08, -0.18) earnings report after the close.DJ30 -65.03 NASDAQ -30.82 R2K -1.3% SP400 -1.2% SP500 -10.19 NASDAQ Dec/Adv/Vol 1934/1070/2.42 bln NYSE Dec/Adv/Vol 1980/1143/1.52 bln

[ozymandius]

130. Their trading algorythms can beat up my trading algorythms.

So this is the sacred floor, eh? 12,200? To make millions of shares stop on an average less than a size of a dime is very impressive. Hats off for the PPT!

[citizen snips]

108. Macy's Cutting About 2,300 Jobs

CINCINNATI (AP) -- Macy's Inc. said Wednesday it will cut about 2,300 management jobs as the department store operator consolidates three regional divisions and decentralizes buying in a bid to reduce costs and boost sales.

The announcement came as Macy's announced separately that it had a steeper-than-expected drop in sales in January at established stores. Shares fell almost 5 percent on the news.

The Cincinnati-based retailer said it will immediately begin consolidating its Minneapolis-based Macy's North headquarters into its New York-based Macy's East, its St. Louis-based Macy's Midwest organization into its Atlanta-based Macy's South and its Seattle-based Macy's Northwest headquarters into its San Francisco-based Macy's West.

The consolidation of the office organizations expected to be completed in the second quarter of 2008 will affect 950 positions at Macy's North, 850 positions at Macy's Midwest and 750 positions at Macy's Northwest in Seattle.

more...
http://biz.yahoo.com/ap/080206/macy_s_changes.html

[citizen snips]

109. Time Warner Will Split AOL

NEW YORK (AP) -- Time Warner Inc.'s new CEO Jeff Bewkes laid out his vision for changes at the media conglomerate Wednesday, including dividing AOL's online access and advertising businesses and possibly spinning off the rest of the company's cable division.

Investors have looked to Bewkes, who took over in January, to dramatically restructure the company in hopes of reviving shares that have slumped 29 percent over the past 12 months.

Investors liked what they heard. Shares rose 31 cents, or 2 percent, to $15.71.

Bewkes was speaking with analysts about the company's fourth-quarter earnings, which fell 41 percent following a big gain last year from the sale of AOL's European online access business.

more...
http://biz.yahoo.com/ap/080206/earns_time_warner.html

[citizen snips]

110. Metals Prices at a Glance

NEW YORK (AP) -- The following are key metals settlement prices Wednesday, compared with late Tuesday, on the New York Mercantile Exchange:

April gold $905, up $14.70 an ounce

March silver $16.530, up 20.5 cents an ounce

March copper $3.3090, up 9.7 cents a pound

http://biz.yahoo.com/ap/080206/metals_glance.html?.v=1

[citizen snips]

111. Wheat Hits Record on Supply Concerns

NEW YORK (AP) -- Wheat futures reached a new record high Wednesday as investors bet that tightening U.S. supplies and poor harvests around the globe will push grain prices higher -- worsening food inflation.

Other agriculture commodities spiked on the rally, with soybean and corn futures both hitting records. Precious metals rose broadly, while energy futures fell.

Wheat prices have trekked relentlessly higher as global supplies have shrunk. Smaller-than-expected harvests around the world, due partly to dry weather, have left stockpiles depleted even as demand continues unabated. That's brought an increasing number of foreign buyers to the U.S. market seeking dwindling supplies of milling-quality wheat used in bread, pasta and other foods.

U.S. wheat exporters have sold more than 15 million bushels a week in seven of the last 11 weeks, well above the U.S. Department of Agriculture's weekly target of about 1 million bushels a week.

more...
http://biz.yahoo.com/ap/080206/commodities_review.html?.v=4

[citizen snips]

112. Wachovia to Sell $3.5B in Stock

CHARLOTTE, N.C. (AP) -- Wachovia Corp. is selling $3.5 billion of a special class of stock to buttress the bank's balance sheet, the company said Wednesday.

In a sale managed by the bank's capital markets division, Wachovia Securities, Wachovia found buyers for 3.5 million shares of preferred stock, at $1,000 each, paying an annual dividend of 7.98 percent for 10 years. After that, the yield floats to LIBOR plus 3.77 percentage points. LIBOR, a benchmark interest rate, stands for London Interbank Offered Rate.

After 10 years, Wachovia can buy the preferred stock back for $1,000 per share.

Wachovia said it is selling the stock to 80 major fixed-income investors in the U.S. The bank expects the deal to close Friday.

more...
http://biz.yahoo.com/ap/080206/wachovia_stock.html?.v=2

[citizen snips]

114. CME Shares Plunge $103 on DOJ Statement

CHICAGO (AP) -- Shares of CME Group Inc. and Nymex Holdings Inc. plummeted Wednesday after the Department of Justice raised concerns about regulations governing the trading of financial futures -- putting the proposed $11 billion combination of the two exchange firms in doubt.

In a submission to the Treasury Department, Thomas O. Barnett, assistant attorney general in Justice's antitrust division, argued that the regulatory framework surrounding clearance of financial futures stifles competition and hampers innovation.

CME Group, which runs the Chicago Mercantile Exchange and the Chicago Board of Trade, hosts trading of futures contracts, which allow investors to bet on swings in prices for things like gold, oil or wheat.

Most of its $1.8 billion in annual revenue comes from charging fees to host and clear trades on its floor.

more...
http://biz.yahoo.com/ap/080206/cme_regulations.html?.v=1

[citizen snips]

115. Cisco Posts Higher 2Q Profit, Sales

SAN JOSE, Calif. (AP) -- Cisco Systems Inc., the world's largest networking equipment maker, said Wednesday its fiscal second quarter profit climbed 7 percent, fueled by sales of a wide range of products and a broad customer base.

For the quarter ended Jan. 26, Cisco earned $2.06 billion, or 33 cents per share, compared with $1.92 billion, or 31 cents per share, in the same period a year earlier. Adjusted earnings were 38 cents per share, matching average analysts' expectations, according to a poll by Thomson Financial.

Revenue jumped 17 percent to $9.83 billion from $8.44 billion.

Analysts were expecting slightly lower sales of $9.79 billion.

more...
http://biz.yahoo.com/ap/080206/earns_cisco.html?.v=1

[Robbien]

125. Even with the great earnings, after hours trading in CISCO dived

Why you ask?

Well Cisco's CEO had a teleconference after hours basically saying there are going to be difficult times ahead.

Skittery Wall Streeters suddenly had a need to change their shorts.

[citizen snips]

116. Treasurys Drop on Productivity Data

NEW YORK (AP) -- Treasury prices fell Wednesday after a report showed workers producing at a stronger-than-forecast pace and labor costs in check at the end of 2007.

The Labor Department said productivity grew by an annual rate of 1.8 percent in the fourth quarter. The result was down significantly from the 6 percent advance seen in the third quarter, but well above the 0.5 percent gain projected in a Thomson/IFR analysts poll.

Unit labor costs, a key inflation gauge monitored by the Federal Reserve, advanced 2.1 percent in the final quarter, below the 3 percent rise projected by Thomson/IFR.

Productivity usually drops off when the economy slows down because companies are left with too many workers for the amount of work on hand. Some economists will use the news to support a case that the economy has entered a recession.

more...
http://biz.yahoo.com/ap/080206/bonds.html?.v=8

[citizen snips]

117. Sector Snap: Homebuilder Stocks Decline

NEW YORK (AP) -- Shares of homebuilders mostly slipped Wednesday after Toll Brothers Inc. reported sales continue to shrink and the company does not foresee a recovery anytime soon.

The Horsham, Pa.-based builder reported sales declined 22 percent in the fiscal first quarter, which ended Jan. 31. The company's backlog shrank 42 percent to $2.4 billion, and the average price of a home declined to $634,000 from $730,000.

Toll Brothers signed contracts to build 904 homes, a 38 percent decline from the first quarter of the previous year.

"The housing market remains very weak in most areas," Chief Executive Robert I. Toll said in a statement. "We are not yet seeing much light at the end of the tunnel."

more...
http://biz.yahoo.com/ap/080206/homebuilders_sector_snap.html?.v=1

[citizen snips]

118. Amgen Must Stand Trial for Stock Charges

NEW YORK (AP) -- A federal judge ruled Friday that Amgen Inc. must defend itself against charges it misled investors about safety concerns with its flagship anemia drug, Aranesp.

U.S. District Court Judge Philip S. Gutierrez dismissed charges against five of nine Amgen officers and directors but left plaintiffs 30 days to amend their complaint in order to include those defendants.

The investors, led by Connecticut Retirement Plans and Trust Funds, assert that positive statements made by company officials regarding the safety of Amgen's two anemia drugs, Aranesp and Epogen, were knowingly at odds with clinical studies that had raised concerns.

The plaintiffs assert, according to court filings, that they unknowingly purchased artificially inflated shares, between April 2004 and May 2007. "Amgen's growth projections were unsustainable in light of the (sic) Amgen's unsustainable off-label sales and the safety profile" of anemia drugs in general, according to court filings summarizing plaintiffs' complaints.

more...
http://biz.yahoo.com/ap/080206/amgen_trial.html?.v=1

[citizen snips]

119. Sector Snap: Semiconductors Down

NEW YORK (AP) -- Shares in microchip maker Cypress Semiconductor Corp. slipped Wednesday after it said it is negotiating a possible purchase of chip supplier Simtek Corp.

Simtek shares soared nearly 70 percent on the news.

Cypress, which holds nearly 20 percent of Simtek, said in a Securities and Exchange Commission filing that it could take control of the company through stock purchases or through an agreement with management.

Cypress share fell 59 cents or 2.8 percent to $20.54 in afternoon trading. They have traded in the last year between $17.77 and $42.79.

more...
http://biz.yahoo.com/ap/080206/semiconductors_sector_snap.html?.v=1

[citizen snips]

133. MBIA Offering $750 Million in Stock

NEW YORK (AP) -- Bond insurer MBIA Inc. said Wednesday it plans to sell $750 million in common stock as it tries to maintain its crucial "AAA" financial strength rating.

MBIA will offer about 50.3 million shares of common stock -- at about $14.91 per share -- to raise the funds, which it will place in reserve to cover potential future claims.

Warburg Pincus, which has already directly invested $500 million in MBIA, will backstop the offering in exchange for preferred stock, covering shares not sold in the sale.

MBIA also raised $1 billion through a private offering of surplus notes in January.

more...
http://biz.yahoo.com/ap/080206/mbia_stock_offer.html