STOCK MARKET WATCH, Thursday May 15

[ozymandius]

Source: du

STOCK MARKET WATCH, Thursday May 15, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 251
DAYS SINCE DEMOCRACY DIED (12/12/00) 2671 DAYS
WHERE'S OSAMA BIN-LADEN? 2396 DAYS
DAYS SINCE ENRON COLLAPSE = 2687
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 May 14, 2008

Dow... 12,898.38 +66.20 (+0.52%)
Nasdaq... 2,496.70 +1.58 (+0.06%)
S&P 500... 1,408.66 +5.62 (+0.40%)
Gold future... 866.50 -3.10 (-0.36%)
30-Year Bond 4.64% +0.02 (+0.39%)
10-Yr Bond... 3.94% +0.03 (+0.74%)






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: Is It Really Inflation?

BY PAUL NOLTE

Inflation – where? According to the data released this morning, prices are not going up. Now everyone has an opinion about prices – yes food/energy prices are rising rapidly and they are purchased often by everyone. There are also prices that are falling, and questions about real estate deflation also plays into the inflation question – for when home prices were rising, many were complaining that it skewed inflation higher than it otherwise would have been – today the reverse is true. We’ll take a look later at the report from the Dallas Fed and what it shows about inflation.

How now the markets? We continue to be surprised by the banter about energy prices, stock prices and interest rates. It has been mentioned in many places, but bears repeating – if you were told energy prices would rise by 50% over the past 18 months (using national pump price data), what would your guess be as to the direction of interest rates? The short-term rates (that the Fed controls) have declined by 350 basis points – the long bond (more sensitive to inflation fears) is down by 50 basis points. The relationship between bonds and commodities that existed during the 70/80’s has changed. If we look at the 5 year correlation between the performance of the Lehman Aggregate Bond index and the CRB index (shown below) we see that instead of being very negatively correlated, there exists today a higher correlation between these two than ever existed.

.....

The correlations between nearly all of the “major” asset classes, foreign stocks, domestic stocks, real estate, bonds and commodities are higher than they have been in the past and many mirror the chart above, with the correlations today at higher than ever levels. So what you ask? The implications are important for those looking at constructing portfolios that are heavy in low correlated assets to avoid the inevitable correction in the SP500. As investors saw just over the past few years, the declines in stocks are matched by declines in various indexes – sometimes even falling further. What was thought of as a well diversified portfolio is no longer so diversified and may force investors into asset classes that many would not have considered in the past – including high yield, foreign real estate or a narrowing of the broad asset classes (separating gold from energy or agricultural commodities). Again, many of these indexes are only recently available and trading history to the masses has only a small sample from which to draw inferences.

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

[Demeter]

80. Translation: All Paper Is Crap

That's the thing about saving for retirement--the govt. insisted that you couldn't do it yourself, you had to go through some class of "helper" industry. So everybody did CD IRAs at banks--and then the banks failed, the interest rates were dropped below your navel, and there was no point to it, inflation would eat up your savings.

So people tried the market, and Enron, WorldCom, dotcoms, all put an end to that scam.

Then there were the "Hedge" funds, the SIVs, the CDOs, all the glamourous, incomprehensible, new-fangled Ponzi schemes. And they've all gone belly up, too.

I'm taking what's left of my retirement money, and buying the rest of my house--using a RE IRA self-directed, before they take that option away.

I had considered a gold bullion IRA, but the fear that somebody at the "high security wharehouse" would make my bullion disappear inhibits me. Since one cannot take possession.

[ozymandius]

2. Today's Reports

08:30 Initial Claims 05/10
Briefing.com 365K
Consensus 370K
Prior 365K

08:30 NY Empire State Index May
Briefing.com 0.0
Consensus 0.0
Prior 0.6

09:00 Net Foreign Purchases Mar
Briefing.com NA
Consensus $62.5B
Prior $72.5B

09:15 Capacity Utilization Apr
Briefing.com 80.0%
Consensus 80.2%
Prior 80.3%

09:15 Industrial Production Apr
Briefing.com -0.4%
Consensus -0.3%
Prior 0.3%

10:00 Philadelphia Fed May
Briefing.com -20.0
Consensus -19.0
Prior -24.9

http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

[UpInArms]

23. .S. initial weekly jobless claims @ 371,000 - U.S. May Empire State index -3.2 vs 0.6 in April

01. U.S. 4-week avg. continuing claims highest in 4 years
8:30 AM ET, May 15, 2008

02. U.S. 4-week avg. continuing claims up 15,250 to 3.02M
8:30 AM ET, May 15, 2008

03. U.S. 4-week avg. initial claims down 1,000 to 365,750
8:30 AM ET, May 15, 2008

04. U.S. continuing weekly jobless claims rise 28,000 to 3.06M
8:30 AM ET, May 15, 2008

05. U.S. initial weekly jobless claims rise 6,000 to 371,000
8:30 AM ET, May 15, 2008

06. U.S. May Empire State prices index up to record high
8:30 AM ET, May 15, 2008

07. U.S. May Empire State index -3.2 vs 0.6 in April
8:30 AM ET, May 15, 2008

[Pale Blue Dot]

27. Will Wall Street consider this bad news good news? nt

[UpInArms]

34. NY Fed manufacturing unexpectedly weak in May

http://www.reuters.com/article/bondsNews/idUSN1521497120080515

NEW YORK, April 15 (Reuters) - A gauge of manufacturing in New York State contracted unexpectedly in May, the New York Federal Reserve said in a report on Thursday even though its measure of inflation hit a record high.

The New York Fed's "Empire State" general business conditions index fell to minus 3.23 in May from positive 0.63 in April.

The result was below economists' expectations for a reading of 0.0 in May. It was also the third time in four months it has been below zero.

U.S. stock index futures pared their gains after the Empire State release. The report coincided with weekly data on claims for jobless benefits, which were marginally above expectations.

Government bonds, which generally benefit from weak economic conditions and suffer from increasing inflation expectations, rose slightly after the reports.

The prices paid measure of inflation rose to 69.57 -- the highest since the start of the data series in July 2001. In April it was 57.29.

...more...

[ozymandius]

48. Oddly, Wall Street often looks upon more people out-of-work as a good thing.

Companies save money by employing fewer people.

Just like your sig line says: it's a wicked way of viewing the world.

[UpInArms]

29. U.S. April capacity utilization falls to 79.7% - April industrial production falls 0.7%

18. U.S. April high-tech output up 1.0%
9:15 AM ET, May 15, 2008

19. U.S. April auto production falls 8.2%
9:15 AM ET, May 15, 2008

20. U.S. April factory output falls 0.8%, led by autos
9:15 AM ET, May 15, 2008

21. U.S. April capacity utilization falls to 79.7%
9:15 AM ET, May 15, 2008

22. U.S. industrial production down 1.2% since January
9:15 AM ET, May 15, 2008

23. U.S. April industrial production falls 0.7% vs 0.6% expected
9:15 AM ET, May 15, 2008

[UpInArms]

30. RPT-TABLE-US March net capital outflows $48.2 bln (I think this is really bad news)

instead of being $62.5 B to the good, it appears we are $48.2 B to the bad

:scared:

http://www.reuters.com/article/bondsNews/idUSN1522775920080515

 WASHINGTON, May 15 (Reuters) - Treasury Department
international capital (TIC) data release, in billions of
dollars except where noted. Figures are not seasonally
adjusted.
                     March      Feb     Jan
Monthly Net
TIC Flows              $-48.2      48.9    34.8
  Private              $-57.6      58.4   -42.0
  Official             $  9.3      -9.5    76.7
Net foreign buys of
long-term securities   $ 54.2      49.6    38.8
  Stock swaps, other   $-26.3     -15.4   -17.9
Long-term securities
  transactions         $ 80.4      64.9    56.7
Domestic Securities,
purchased net          $ 80.2      77.9    76.4
  Private              $ 32.1      71.1    23.6
  Official             $ 48.1       6.7    52.8
Total net foreign buys of:
Treasuries             55.00     20.60    36.47
Agencies               18.27     36.90    19.32
Equities               11.46      1.12    17.18
Corporates             -4.58     19.25     3.39
Holdings of major foreign
 holders of Treasuries:
Japan                   600.7     586.6    586.9
China                   490.6     486.9    492.6
United Kingdom          202.6     181.4    157.9
Oil exporters           150.8     146.1    140.9
Brazil                  149.1     146.6    141.7

[UpInArms]

37. U.S. May Philly Fed -15.6 vs. -24.9 in April

02. U.S. May Philly Fed above consensus -21.0
10:01 AM ET, May 15, 2008

03. U.S. May Philly Fed -15.6 vs. -24.9 in April
10:01 AM ET, May 15, 2008

[ozymandius]

3. Oil prices steady above $124 a barrel

SINGAPORE - Oil steadied above $124 a barrel Thursday in Asia after the U.S. government issued a mixed report on the country's petroleum reserves and prices fell back from their record levels.

"The overall sentiment in the market remains quite bullish ... and in the near term, the bullish sentiment could cause the market to challenge a new high, driven by news events," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

He warned, however, that "the oil price rally over the last couple of weeks has been too much and too fast, so there continues to be room for further correction."

Light, sweet crude for June delivery rose 47 cents to $124.69 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract fell $1.58 to settle at $124.22 a barrel on Wednesday.

The U.S. Energy Department's Energy Information Administration said diesel stockpiles rose there last week. News of the build eased concerns about the fuel used to transport most food and consumer goods and led to the sell-off.

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

[ozymandius]

13. Krugman: More on oil and speculation

One of the things I find puzzling about the whole oil market discussion is how complicated people seem to make it. They get all wrapped up in stuff about forward markets, hedge funds, etc., and lose sight of the fundamental fact that there are only two things you can do with the world’s oil production: consume it, or store it.

Here’s my picture:



If the price is above the level at which the demand from end-users is equal to production, there’s an excess supply — and that supply has to be going into inventories. End of story. If oil isn’t building up in inventories, there can’t be a bubble in the spot price.

http://krugman.blogs.nytimes.com/2008/05/13/more-on-oil-and-speculation/

---

So Krugman asks: where is the excess crude going? Based on news accounts here at the SMW - the question is almost a rhetorical one.

[ozymandius]

14. Check out this post.

But think back to the California energy crisis: the quantity of energy consumed and supplied didn’t change very much, but somehow one equilibrium led to $1000 a kilowatt, another equilibrium led to $12 a kilowatt.

If I had to guess what’s going on, there would be four players: unconnected consumers (who buy their oil through the public market), favored consumers (who buy oil via relationships with suppliers), unconnected suppliers (who sell their oil to the highest bidder on the public market), and political suppliers (who for political/technical/risk-aversion reasons choose to sell their oil below market price to favored consumers).

If an oil company is vertically integrated, it can be thought of as a mixture of both a political supplier and a favored consumer.

So my guess is there’s increased demand for oil, from favored consumers and unconnected consumers. If the favored consumers increase their consumption via long-term contracts and other means, that leaves less oil for the public market, which combined with increased demand, sends “spot-market” prices soaring, rather than merely increasing.

Or to put it another way: in a perfectly competitive market, everybody pays the market price. That doesn’t seem to be true of the oil market. How many large-scale oil-buyers are actually using the public market and paying the spot-market price in order to get their oil?

This touches on one aspect of the oil market that has been discussed quite a bit here. Long term contracts on oil recovery are the "wholesale" price paid by the companies working in the field. This price, by its very nature, is below market value: set at the time the contract is signed between land owner and oil recovery company. This is a very incestuous business.

[Hugin]

40. Very interesting indeed, Ozy!

So, there are large players paying possibly lower than even 'wholesale' prices for bulk oil. Also, it's more than
a few... Somebody better be checking that they're not turning around and selling their cheap oil on the open market.
It's bad enough that they keep it from reaching the open market in the first place.


Free Market... Hmpf. Well, it's pretty well acknowledged that the Oil Biz is a cartel.

[ozymandius]

47. It gives another meaning to the phrase "black pools of liquidity".

There's the market. Then there's the other market for club members.

[Ghost Dog]

76. "Dark Pools"

-- and "Black Swans".

[ozymandius]

77. Right. Thanks for the correction.

:thumbsup:

[Demeter]

81. I Smell a Cheney

Disgusting, isn't it?

[UpInArms]

35. June crude up $2.04 at $126.26 a barrel on Nymex

June crude up $2.04 at $126.26 a barrel on Nymex
9:21 AM ET, May 15, 2008

[TalkingDog]

56. Here's an oil man with some foresight: T. Boone Pickens

Think he knows something all them other folks don't?
http://news.yahoo.com/s/nm/20080515/bs_nm/utilities_operations_pickens_wind_dc_1

'Cause I think the farsighted SMWers all know what T. Boone is figuring......

[amandabeech]

58. Yes, but here in the U.S., very little petroleum distillates are used to generate electricity.

We use natural gas, probably too much of it, to generate both baseline and peak load electricty.

For generally scientifically, rather than economically, driven discussions of oil and gas, I recommend theoildrum website. It's very popular with those DUers who frequent the energy and environment forum here.

[AnneD]

66. JPMorgan to start physical oil trade, eyes $200 oil

SINGAPORE (Reuters) - JPMorgan Chase & Co will begin trading physical oil by year-end, increasing its exposure in a market that could rise to $200 a barrel, the bank's global head of commodities said on Wednesday.

The bank plans to expand in commodities and energy trading, Blythe Masters said, despite expectations of job cuts in other areas as it prepares to take on staff from Bear Stearns at the same time it deals with turbulent financial markets.

"We will start trading in physical oil and refined products by the end of this year," she told Reuters in an interview.

JPMorgan will join a growing list of investment banks from Goldman Sachs to Barclays Capital seeking to boost profits on their big derivatives trading desks by gaining a foothold in physical markets.

more......

http://www.reuters.com/article/ousiv/idUSSP14850120080514?rpc=64

WALK AWAY FROM THE BARREL, JUST PUT THE BARREL DOWN AND WALK AWAY. STEP AWAY AND YOU WON"T BE HARMED. YOU HAVE BEEN WARNED:spank:

[ozymandius]

70. Great! Just F'ING great!

Oil volumes traded only on paper was bad enough for boosting the prices we all pay. Now the big investment banks plan to actually control inventory in the pipeline. I'm sure that will do wonders to fatten their bottom lines while it shrinks everyone else's.

Fuck them.

[ozymandius]

4. Report: GE set to auction appliance business

FAIRFIELD, Conn. - General Electric Co. plans to auction off its Louisville, Ky.-based appliances business, The Wall Street Journal reported Wednesday.

GE has hired Goldman Sachs Group Inc. to run an auction for the appliance division, according to the newspaper, which quoted unidentified sources. The sale could yield between $5 billion and $8 billion, the Journal reported.

Spokesmen for the Fairfield-based industrial conglomerate and Goldman Sachs would not comment.

Louisville Mayor Jerry Abramson said in a statement that he had contact with GE leaders within the past 10 days "based on my concerns about additional job cutbacks at their Louisville operations," where some 5,000 people are employed. "Officials told me they were looking at possible reductions throughout their global operations, including Louisville, but they did not indicate that selling Appliance Park was part of their plans."

.....

However, Immelt brushed off questions about GE spinning off businesses. He said shortly after the earnings report that GE has already sold businesses valued at between $50 billion and $60 billion in what he called the "most active portfolio change in the history of the company."

http://news.yahoo.com/s/ap/20080515/ap_on_bi_ge/ge_appliance_business

[ozymandius]

5. Judge rejects Countrywide's arguments: report

NEW YORK (Reuters) - Directors and officers of mortgage lender Countrywide Financial (CFC.N) must answer shareholder accusations of insider trading and failure to monitor lending practices that led to the company's collapse, a federal judge in California has ruled, the New York Times reported.

The New York Times said on Wednesday that Judge Mariana Pfaelzer of U.S. District Court in Los Angeles rejected arguments made for Countrywide executives and directors that they were unaware of lax loan operations that led to ballooning defaults.

The judge ruled Tuesday that she found confidential witness accounts in the shareholder complaint to be credible and that they suggested "a widespread company culture that encouraged employees to push mortgages through without regard to underwriting standards," the Times said citing documents not yet publicly available.

.....

The plaintiffs in the case told the New York Times they hoped to recover money for shareholders from Countrywide officials named in the case who sold $850 million in stock from 2004 to 2007.

http://news.yahoo.com/s/nm/20080515/bs_nm/countrywide_dc

[ozymandius]

12. Is the Noose Tightening Around Countrywide? (analysis)

One of the reasons for Bank of America to walk from the Countrywide deal is the rising tide of legal costs and potential for sizeable damages. Admittedly, at this juncture the prevailing view is that the Charlotte bank would renegotiate the acquisition rather than abandon it (particularly since it should be able to limit liability to the merger sub), but it still begs the question of why buy an operation that has the possibility of having zero financial value with considerable headache and embarrassment attached?

.....

Established Countrywide hater Gretchen Morgenson provides an update on a class action suit alleging insider trading (!) and a failure to adequately supervise operations, as exhibited in lousy lending practices that (per the suit) simply cannot have gone unnoticed by management. While Morgenson has the mortgage lender in her crosshairs, she generally does an evenhanded job of reporting when working primarily from court filings, as in this case.

The significance of this suit, which can now proceed to the discovery phase, may be greater than it appears. Morgenson cites one level: this will be the few actions against the executives of a failed mortgage lender.

Another, less obvious impact: the suit will probe the bank's lending and management practices, and that will pave the way for further litigation. And it has the potential to confirm what are now only suspicions about abusive and misleading practices and thus further lower the value of the franchise.

http://www.nakedcapitalism.com/2008/05/is-noose-tightening-around-countrywide.html

[ozymandius]

6. Banking group Mizuho sees 50 percent profit drop

TOKYO - Mizuho, Japan's No. 2 banking group, took a beating from U.S. subprime credit problems, reporting Thursday a 50 percent drop in profit for the fiscal year.

Mizuho Financial Group Inc. recorded 311.22 billion yen ($2.97 billion) in profit for the fiscal year ended March 31, down 49.8 percent from 620.97 billion yen the previous year.

Fiscal year operating revenue climbed 10.3 percent to 4.524 trillion yen ($43.2 billion), the Tokyo-based bank said. It did not break out its quarterly numbers.

Expectations had been high that subprime-linked losses at Mizuho might be the worst among Japanese lenders after it drastically reduced its fiscal year forecast last month. The bank said its money-losing Mizuho Securities Co. had been hit hard by U.S. credit woes.

http://news.yahoo.com/s/ap/20080515/ap_on_bi_ge/earns_japan_mizuho

[ozymandius]

7. Toyota says Prius hybrid sales hit 1 million worldwide

TOKYO (Reuters) - Toyota Motor Corp (7203.T) said on Thursday that cumulative sales of its Prius hybrid car had topped 1 million units worldwide since its launch just over a decade ago.

The Prius, the world's first mass-produced gasoline-electric hybrid car, first went on sale in Japan in late 1997 and in other markets in 2000. Toyota remains the leader in hybrid sales, with Honda Motor Co (7267.T) a distant second with its Civic model.

Toyota, the world's biggest automaker, said it had sold about 1,028,000 Prius cars as of the end of April.

.....

By slashing production costs for the hybrid system, Toyota has said it would make the technology available across its line-up, with an aim to sell at least 1 million hybrid vehicles annually soon after 2010.

http://news.yahoo.com/s/nm/20080515/bs_nm/toyota_prius_dc

[ozymandius]

8. Icahn Is Said to Plan a Proxy Battle at Yahoo

Carl C. Icahn, the billionaire investor and activist shareholder, has decided to move ahead with plans for a proxy fight at Yahoo and will propose a dissident slate of directors, people with knowledge of the plans said Wednesday.

Mr. Icahn, who has told associates that he has bought as many as 50 million shares of Yahoo, is leaning toward trying to oust the entire board by proposing a slate of 10 candidates, these people said. The deadline for nominating a dissident slate is Thursday.

He is moving ahead with the proxy fight in hopes of pushing Yahoo to restart talks to sell itself to Microsoft. Yet Microsoft has given no indication that it would be willing to restart talks. Mr. Icahn’s decision to try to oust the entire board — as opposed to proposing only a couple of candidates — is considered a high-risk maneuver, analysts said. He might have a better chance of winning a campaign by proposing a smaller slate, several analysts added.

.....

Mr. Icahn’s interest comes less than two weeks after Microsoft withdrew a $47.5 billion offer for Yahoo. Since then, many large Yahoo shareholders have accused the board of pushing Microsoft away. In recent days, Yahoo’s directors have received a deluge of letters criticizing the company’s tactics during the negotiations.

http://www.nytimes.com/2008/05/15/technology/15yahoo.html?_r=1&bl&ex=1210996800&en=184fe9e64c13a342&ei=5087%0A&oref=slogin

[AnneD]

51. New lipstick,

on an old whore. He may be calling himself a shareholder activist these days, but he'll always be a cooperate raider to me. He slept with Milken-I'm sure he got fleas too.

And Speaking of the Keating 5-how's McCain doing today?

[ozymandius]

9. Barclays Profit Falls After $3.3 Billion Writedown

May 15 (Bloomberg) -- Barclays Plc, the U.K.'s third-biggest bank, said first-quarter earnings declined on 1.7 billion pounds ($3.3 billion) of writedowns caused by losses in credit markets.

Barclays fell as much as 3.2 percent today in London trading after Finance Director Chris Lucas told reporters the company hasn't ruled out a share sale to replenish depleted capital.

``Earnings momentum is slowing and there is the prospect of significant further writedowns,'' said Sandy Chen, a London-based analyst at Panmure Gordon & Co., who has a ``sell'' rating on the stock. ``As for rights issues, I would rather be at the front of the queue than at the back.''

.....

Barclays's writedowns included 495 million pounds for collateralized debt obligations and 1.21 billion pounds for ``other credit market exposures,'' the company said. The securities unit took 598 million pounds in bad debt defaults.

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

[ozymandius]

10. German Economic Growth Quickened in First Quarter (Update3)

May 15 (Bloomberg) -- Economic growth in Germany, Europe's largest economy, accelerated to the fastest pace in 12 years in the first quarter as companies stepped up spending on machinery and construction.

Gross domestic product rose 1.5 percent from the fourth quarter, when it increased 0.3 percent, the Federal Statistics Office in Wiesbaden said today. Economists forecast 0.7 percent expansion, according to the median of 33 estimates in a Bloomberg News survey.

Germany's resilience is giving the European Central Bank room to leave interest rates at a six-year high to fight inflation. By contrast, the U.S. Federal Reserve has cut rates seven times to stave off a possible recession. Evidence suggests German growth was boosted by a milder-than-usual winter and has since slowed. Higher credit costs, faster inflation and a stronger euro are eroding consumer spending and export competitiveness.

http://www.bloomberg.com/apps/news?pid=20601068&sid=af_JvCLBfeQ8&refer=home

[ozymandius]

11. Production in U.S. Probably Fell in April, Led by Auto Cutbacks

May 15 (Bloomberg) -- Production at U.S. industries probably dropped in April, as the slowdown in consumer spending prompted automakers to cut back, economists said before a report from the Federal Reserve today.

Output at manufacturers, mines and utilities fell 0.3 percent after rising 0.3 percent in March, according to the median forecast in a Bloomberg News survey. Separate regional Fed reports may also show the decline continued into May.

A deepening housing slump, restrictions on credit and soaring food and fuel prices have caused consumers and businesses to rein in purchases of expensive items like cars and machinery. Only growing demand from overseas has prevented American factories from declining even more.

.....

Sales of cars and light trucks in April slid to a 14.4 million annual rate, the fewest since 1998, according to industry figures. Officials at General Motors Corp., the world's largest automaker, said this week the company may have to borrow cash and reduce spending to fund its operations if the economy worsens.

http://www.bloomberg.com/apps/news?pid=20601068&refer=home&sid=apxrubHNcCag

[UpInArms]

15. dollar watch

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

Last trade 73.263 Change -0.047 (-0.06%)

Softer Inflationary Pressures Fail to Stifle the Dollar's Gains

http://www.dailyfx.com/story/bio1/Softer_Inflationary_Pressures_Fail_to_1210802398343.html

The US dollar extended its gains against every major currency. Softer consumer prices have failed to stifle the dollar’s recovery as the market wonders how much longer producers will be able to bear the brunt of higher prices. Core prices increased by only 0.1 percent last month while headline prices increased 0.2 percent. A decline in housing rentals dragged core inflation down while the biggest jump in food prices in 18 years pulled headline CPI higher. The Federal Reserve may feel a bit more relaxed after seeing these inflation numbers, but the underlying increases can still be worrisome. Risk appetite is steadily returning to the markets and that is being reflected in the movement of the Dow and carry trades. The stock and credit markets have been stabilizing over the past few months and thankfully, no bank has fallen victim to the same type of demise as Bear Stearns. According to an article in the Wall Street Journal today, “a growing number of economists — including some who not long ago were saying a recession was all but inevitable” are now taking a detour. The 325bp of easing delivered by the Federal Reserve and the distribution of fiscal stimulus checks has forced many economists to reduce their odds of a recession. Economic data has also been stabilizing while volatility has been declining. However the ongoing rise in gasoline prices, falling house prices and the increasing level of foreclosures poses a big risk for consumer spending in the months ahead. Whenever volatility in indices like the VIX hits such extreme levels, a reversion to the mean may be right around the corner. There are a lot of US numbers due for release tomorrow including the Philadelphia Fed index, industrial production and the Treasury International Capital flow report. The weak dollar should bring improvements in the manufacturing sector, but foreign purchases of US securities may have been weak because the data is for the month of March, when Bear Stearns collapsed.

...more...

Euro Rises Then Falls as Cool Inflation Offsets Strong GDP- Will ECB Remain Hawkish?

http://www.dailyfx.com/story/bio2/Euro_Rises_Then_Falls_as_1210849424483.html

A rollercoaster night in EURUSD as the currency pair was first lifted by better than forecast GDP numbers only to fall below the key 1.5500 level once again after inflation data revealed that core CPI readings have eased dramatically. Both German and French GDP numbers posted blockbuster results with German Q1 GDP rising 2.5% vs. 1.8% projected while French growth increased 2.2% vs. 2.0% expected. The two main economies of the EZ contributed to a better overall number for the region which also printed at 2.2% vs. 1.9% forecast.

The news helped to push the pair to a session high 1.5546 as better than expected Q1 growth in the EZ stood in stark contrast to the major slowdown in the US economy. The celebration, however, did not last long. The unit quickly reversed course after the core CPI EZ inflation data printed at 1.6% significantly lower than the 2.0% expected.

The inflation readings suggest that despite record high energy costs, price pressures in the EZ may be easing - no doubt partly due to the uber-strong currency which has made imports far more affordable for Europeans. Today’s inflation data should pacify some of the stauncher hawks at the ECB and could open the way for possible consideration of a rate cut by the end of the summer.

However, given the strong GDP readings, EZ monetary authorities could make a very credible case that no easing is necessary as the region’s economy appears to have weathered the credit crunch in the financial markets far better than most analysts had forecast. Nevertheless, Q2 may prove to be far more challenging for the 15 member union as record high exchange rates, skyrocketing energy costs and global slowdown in demand may take their toll on growth going forward. Therefore, today’s tepid inflation numbers are especially important in such a context because they remove the primary objection to a rate cut – namely that prices pressures are no longer escalating throughout the system.

As North America opens for trade attention will turn to the TICS report and the manufacturing data from Empire and Philly Fed surveys. Markets are looking for mixed results, but most recent economic data has suggested that lower dollar has helped US manufactures and if that turns out to be true today, the greenback may get another boost as EURUSD moves further away from the 1.5500 figure.

...more...

[UpInArms]

16. SEC charges Broadcom co-founders in options probe (and falsifying income)

http://news.yahoo.com/s/ap/20080515/ap_on_bi_ge/broadcom_sec

LOS ANGELES - Securities regulators on Wednesday charged Broadcom Corp. co-founders Henry T. Nicholas III and Henry Samueli with falsifying the company's reported income, leading to what is believed to be the largest accounting restatement yet because of backdating stock options.

Samueli stepped down as chairman of the company's board of directors and will take a leave of absence as chief technology officer, according to a statement from the Irvine, Calif., chip maker.

A civil complaint filed by the Securities and Exchange Commission also charges former chief financial officer William J. Ruehle and general counsel David Dull. It seeks injunctions, unspecified monetary penalties as well as removing Samueli and Dull from their positions. Dull also took a leave of absence Wednesday.

The four men are accused of violating federal securities laws by misrepresenting the dates on which stock options were granted to its executives and employees.

The SEC said that as a result of the scheme, Broadcom restated its financial results in January 2007 and reported more than $2 billion in additional compensation expenses.

"This egregious misconduct resulted in the largest accounting restatement to date arising from stock option backdating and warrants the significant sanctions sought from these individuals," said Linda Chatman Thomsen, director of the SEC's Division of Enforcement.

...more...

[UpInArms]

17. Rough economy cuts into pay for U.S. CEOs: study

http://www.reuters.com/article/businessNews/idUSN1448555620080515?feedType=RSS&feedName=businessNews&sp=true

NEW YORK (Reuters) - CEO compensation at the biggest U.S. corporations dropped sharply last year, reflecting in part the rough business conditions at top-tier banks and other large financial firms, a study has found.

The study, released Thursday by consulting firm Mercer, a unit of Marsh & McLennan Cos Inc (MMC.N: Quote, Profile, Research), is one of the most comprehensive reports to date analyzing chief executive pay data for companies' most recently completed fiscal year.

The study looked at pay data in annual proxy filings for 350 companies of varying sizes and industries in the Fortune 1000.

<snip>

This group of companies includes many big financial firms such as American International Group (AIG.N: Quote, Profile, Research), Citigroup (C.N: Quote, Profile, Research) and Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research) that have been hurt by woes in the mortgage and credit markets.

<snip>

Median total direct compensation for CEOs in this group was nearly $14 million in the fiscal year covered by the proxy, Mercer said.

...more...

[TalkingDog]

21. Weeping gently over my beer....

Wait...... were you saying something about CEO's pay? Who the frack cares?

[ozymandius]

46. You should have issued a warning on that pic.

It's an image from my nightmares. Wasted golden elixir.

[MilesColtrane]

55. Jesus...

Why couldn't it have been Coors Light?

[kineneb]

61. waaah!

And I don't even drink much beer. Such a waste.

Back after a day off, hanging out... being amused at an internet dating site...part of getting life back together after losing Hubby. :cry: So much emotional stuff with which to cope... the economy and politics just had to take a rest. Back now.

[AnneD]

68. Take your time....

don't rush. Allow yourself time to grieve.

[UpInArms]

18. U.S. to subpoena UBS for wealthy client names: WSJ

http://www.reuters.com/article/businessNews/idUSN1555324720080515?feedType=RSS&feedName=businessNews

NEW YORK (Reuters) - U.S. prosecutors are expected to approach UBS AG (UBSN.VX: Quote, Profile, Research) with a subpoena for the names of rich American clients who may have used the Swiss bank's services to skirt income taxes, the Wall Street Journal said on Thursday, citing lawyers and others involved in the case.

The subpoena would follow the unsealing of a grand jury indictment on Tuesday in Florida federal court, of former UBS private banker Bradley Birkenfeld and Liechtenstein businessman Mario Staggl, the report said.

The one-count indictment charged Birkenfeld and Staggl with conspiring to defraud the United States by helping an unidentified U.S. citizen create bogus corporations and other entities to conceal his ownership of hidden offshore assets, according to an earlier statement from prosecutors.

...more...

[UpInArms]

19. Trial set to start in Parmalat case vs Citigroup

http://news.yahoo.com/s/nm/20080515/bs_nm/citigroup_parmalat_dc

NEW YORK (Reuters) - More than four years after the meltdown of Italy's Parmalat SpA, the food company is set to begin presenting its case to a U.S. jury on Thursday accusing Citigroup Inc of playing a key role in its collapse.

Citigroup is the first defendant to go to trial in the United States over accusations of helping conceal corrupt activity by former Parmalat insiders. Parmalat, which collapsed in December 2003 and emerged from bankruptcy in 2005, is seeking $2.2 billion in damages from the biggest U.S. bank.

Citigroup is seeking $699 million of damages on its own claims, saying it was a victim of Parmalat's fraud.

Opening statements in the civil trial, being held in Bergen County Superior Court in Hackensack, New Jersey, about 15 miles from Manhattan, are scheduled for Thursday morning, according to a court official. A jury has already been selected.

<snip>

Parmalat is involved in dozens of legal cases in Italy and the United States. Its chief executive, turnaround specialist Enrico Bondi, has accused some 50 defendants of helping prior Parmalat management hide debt and inflate results.

Parmalat originally sought $10 billion from Citigroup, contending the bank turned a blind eye to the activities of former company officials while it earned lucrative financial services fees. Last month, however, the judge overseeing the case narrowed the scope of Parmalat's claims.

...more...

[UpInArms]

20. Moving the Goalposts: Accounting changes help Freddie Mac 1Q beat views

http://news.yahoo.com/s/ap/20080515/ap_on_bi_ge/earns_freddie_mac

Freddie Mac beat Wall Street's expectations in the first quarter, but the mortgage finance company didn't vanquish concerns about its ability to weather the housing bust.

Changes in accounting practices helped McLean, Va.-based Freddie Mac achieve better-than-expected results Wednesday. For example, Freddie adjusted how it accounts for derivatives, financial instruments used to hedge against swings in interest rates.

Under the new accounting practices, the company said it lost more than $1.3 billion on those derivatives in the first quarter, compared with a loss of nearly $2.3 billion in the fourth quarter of 2007.

"If you change the accounting rules, things can look better," said R. Christopher Whalen, managing director of consulting firm Institutional Risk Analytics.

Others saw the change as a needed improvement that better reflects performance. In a research note, Citigroup analyst Bradley Ball cited "improved accounting methodologies" as a reason for Freddie's positive results.

<snip>

In another potentially troubling sign, a measurement of the company's total assets fell to negative $5.2 billion at the end of the first quarter, a huge swing from positive $12.6 billion at the end of last year.

Company spokesman Michael Cosgrove downplayed the drop, as it reflects a frozen market for mortgage investments. "We don't believe that it has a significant impact," he said.

...more...

"no significant impact" - now where did I hear that before? Oh, I remember! It was AIG!

AIG is cited in the complaint as one of the insurers that allegedly agreed to submit fake bids on accounts as part of a scheme to help Marsh win and retain accounts.

"We have a highest standards at AIG and we are sickened by this action," he told analysts. "We will do everything we need to do to weed it out entirely. We are not excusing it. I take responsibility for what goes on in this company."

He said he did not think the controversy would seriously impact the property/casualty industry's operating environment, predicting that hurricanes and other losses will have more effect on pricing.

"I don't think it's going to have a material impact on pricing in the insurance industry...it won't make rates go up or down," Greenberg said.

[TalkingDog]

22. Beautiful Lies

Today's Theme.... Enjoy

Amazing Rhythm Aces: Beautiful Lies

Every time the bluebird sings,
my heart takes wing to the sky.
With bluebird's grace,
I'll fly to my place in your eyes.

After all I did what I could
And you did your best,
just the same;
nobody won, we both lost.
And no one's to blame.

I'll fly away to you,
if only pretending.
We'll be like bluebirds too,
in the beautiful lies.

Cause after all I did what I could
You did your best,
just the same;
nobody won, we both lost.
No one's to blame.

I'll fly away to you,
if only pretending.
We'll be like bluebirds too,
in the beautiful lies.

I'll fly away to you,
if only pretending.
We'll be like bluebirds too,
in those beautiful lies.


Video...ehh... But the song. Lovely.
http://www.youtube.com/watch?v=b7e6bETzR0c

[Hugin]

42. Ah, very nice theme TD.

n/t <--- Why do people put this in the message and not in the subject like it's intended? Doesn't that make you
MAD!

[TalkingDog]

50. on a scale of 1 to 100: .0005

Half the time, I'm just happy to have my existance acknowledged.

[TalkingDog]

25. Slight Variation: Friedman says Freddie Mac earnings under pressure until 2012

(Reuters) - Friedman Billings Ramsey said Freddie Mac (FRE.N: Quote, Profile, Research) will not realize meaningful earnings growth until 2012, at the earliest, and that the $5.5 billion capital raise it announced Wednesday will not be enough.

The brokerage said elevated credit cost will continue well into 2010 and 2011, as credit losses will continue to outpace earnings growth. It reiterated its "underperform" rating and $17 price target on the stock.

The second-largest U.S. home funding company will most likely have to continue to raise capital during the next few years to deal with both higher credit losses and the expected growth in its portfolios, Friedman said.


Short Article.

[TalkingDog]

24. No Growth Expected in Surveys

http://www.forbes.com/feeds/ap/2008/05/15/ap5012383.html


WASHINGTON -

The New York and Philadelphia Federal Reserve banks are expected to report Thursday that business activity in their manufacturing sectors was flat or declined this month.

The New York Federal Reserve's manufacturing index is forecast to fall to zero, down slightly from 0.6 in April, according to Wall Street economists surveyed by Thomson/IFR.

snip:

In both indexes, figures below zero indicate contraction, while above zero means the sectors grew. A reading of zero means no change in business activity from the previous month.

Despite the potentially sluggish results, both figures would represent improvements over recent months. The Empire State index fell to a record low of negative 22.2 in March before rebounding sharply to 0.6 last month.

[AnneD]

26. Morning Marketeers.......

:donut:and lurkers. Today will be very interesting. I am teaching Growth and Development to the 5th grade boys. I am lucky that the Art teacher-a guy-is with me. We give the boys a good perspective. They are so cute...some blush, some bluster. The girls (next week) are so mature. They soak up the facts and ask good questions. I've done it so many times, but every time is different.

And speaking of kids, I think my daughter was still sleeping on cloud 9 last night. She was chosen, by her orchestra peers, to conduct the High School for the Professional and Visual Arts' orchestra during the graduation ceremonies. She will be conducting Sibelius. It is such an incredible honour for her (especially since she is wanting to do that). Our household has been turned upside down again. Hubby is so proud of her. He has been teaching her sitar and was just commenting after her lesson the day before yesterday that she was ready to have a part in their performance this weekend (she has had a month of practice). Because of the nature of the sitar, she cannot have a big part because she does not have strong callus' on her fingers yet and they tend to bleed (strings on a sitar are like the thread on a cheese slicer-ouch).

Well, I'm off to make sure all is set up for my class.

Happy hunting and watch out for the bear.

[MadinMo]

31. Morning AnneD

Oh my -- congratulations to your daughter! And I'm TOTALLY envious of anyone knowing how to play the sitar! Wow.

[AnneD]

45. Hello MadinMo

:hi: Welcome to DU and the Stock Watch Thread (SWT). Sit a spell, take yor shoes off.

[MadinMo]

65. I do so nearly every day.

First stop is SWT. Thanks!

[ozymandius]

49. How fabulous for your daughter AnneD!

What piece(s) by Sibelius will she conduct? (I am very partial to the Symphony #2.) This is extraordinary for one so young. Conducting Sibelius is quite a workout. Never have I seen a conductor who wasn't totally drenched in sweat after the first twenty minutes.

Props to her!

[AnneD]

52. I am not sure what piece (s) she is doing....

she was babbling so much yesterday. I'll find out soon enough. She is taking the conducting and composition class at school-so she is not a total newbie-but this is the first 'real deal'. Her comment..."Mom, this is better than being voted prom queen, my pants are having a party." :spray: Lord does she ever make me laugh sometimes.

She also got hired by her Uncle to do book keeping and getting his files straight. She gets $10 per hour which is what she got at the fabric shop, but he's more flexible. That will enable her to take classes and do her valet work on weekends. We, and she are working so hard to get the funds together for her to get to CalArts.

[TalkingDog]

57. Kudos! I don't know what the term is in an Orchestra performance, but tell her

to break ....something.... (metaphorically)

[AnneD]

69. Since she play the oboe....

break a reed:shrug:

[TalkingDog]

28. Across the Pond: Risk Appetite Returns

http://uk.reuters.com/article/managerMoves/idUKNOA52541420080515

LONDON (Reuters) - Investors regained risk appetite in May, reducing cash and buying stocks for the second consecutive month, while inflation overtook slowing growth as their biggest fear, a survey showed on Wednesday.

snip:
Those who thought the global economy will experience recession over the next twelve months fell to 28 percent of the respondents this month from 40 percent a month ago.

However, inflation concerns are on the rise, with 53 percent of the respondents saying global core inflation will be higher over the next 12 months, up from 44 percent a month ago.

snip:
The survey came as growing expectations that the worst of the credit crisis is over pushed the MSCI world equity index to a four-month peak last week


Whistling past the graveyard?


Back in my college/dating days I used to walk home from the bar where I worked. If the fellow I was dating was home (traveling musician) he would walk me home. Whenever we'd turn down the road that cut through the cemetery, he'd start whistling. Mostly because he knew it drove me crazy. (It's considered incredibly bad luck where I'm from...disrespectful) Once he tired of whistling, he'd start singing at the top of his lungs.

Hey, I had to live next to them. If they were going to rise up and eat brains, mine would be first on the menu based on proximity.

Have fun today. I'll check in later.

[UpInArms]

32. Cash America to stop Ohio lending after payday bill (no more loan sharking)

http://www.reuters.com/article/bondsNews/idUSBNG9996320080515?sp=true

May 15 (Reuters) - Payday lender Cash America International Inc (CSH.N: Quote, Profile, Research) said it expects to close its Ohio lending operations following the adoption of legislation that significantly caps interest on loans it makes.

The state legislature passed a bill effectively capping the interest rate on payday loans at 28 percent interest. Such loans, which tide over borrowers for short periods, carry effective annual interest rates that can top 300 percent.

Ohio's senate overwhelmingly adopted limits on payday rates on Wednesday, following similar action by the state's house of representatives

<snip>

Cash America said it expects to close its 139 stores in the state, saying the new law eliminates the viability of offering the payday product.

...more...

[antigop]

74. And they still can't be profitable, even with loans at 28 percent interest? n/t

[DU GrovelBot]

33. ## DON'T DONATE TO DEMOCRATIC UNDERGROUND! ##

==================
GROVELBOT.EXE v4.1
==================



This week is our second quarter 2008 fund drive. Democratic Underground is
a completely independent website. We depend on donations from our members
to cover our costs. Whatever you do, do not click the link below!

[Hugin]

39. Sound fiscal advice there Mr. Bot...

:rofl:

[Dr.Phool]

41. Do I get another bumper sticker if I don't donate?

[Hugin]

43. Only if you ask to not be sent one...

:)

[UpInArms]

36. Chopper Ben implies that "financial firms" are undercapitalized

09. Bernanke: Regulators must redouble efforts to oversee banks
9:24 AM ET, May 15, 2008

10. Bernanke urges financial firms to raise more capital
9:24 AM ET, May 15, 2008

[UpInArms]

38. Chopper Ben encourages the selling out of America to the highest bidder

04. Bernanke: Banks have moderate risk to bond insurer woes
9:59 AM ET, May 15, 2008

05. Opportunity for small banks as big firms cut back: Bernake
9:55 AM ET, May 15, 2008

06. Banks are 'hunkering down' to ride out turmoil: Bernanke
9:52 AM ET, May 15, 2008

07. Bernanke: Capital raising by U.S. and EU banks 'impressive'
9:51 AM ET, May 15, 2008

08. Bernanke welcomes sovereign wealth fund investments in banks
9:49 AM ET, May 15, 2008

[ozymandius]

44. Overview: inflation running high, negative growth = whatever (all pluses now)

10:43
Dow 12,916.13 Up 17.75 (0.14%)
Nasdaq 2,505.39 Up 8.69 (0.35%)
S&P 500 1,411.52 Up 2.86 (0.20%)
10-Yr Bond 3.902% Down 0.036
NYSE Volume 743,283,312.5
Nasdaq Volume 528,867,312.5

10:30 am : The morning mood among traders remains rather subdued. The stock market continues to trend along the neutral line, surrendering its few, marginal advances.

After trading lower in yesterday's action, oil is back up above $125 per barrel. Crude hit a record intraday high of $126.98 earlier this week.

Oil's rebound is helping support the energy sector (+1.1%), which remains the leading economic sector this session.DJ30 +14.49 NASDAQ +7.47 SP500 +2.31 NASDAQ Dec/Adv/Vol 1207/1330/465.67 mln NYSE Dec/Adv/Vol 1385/1435/205.31 mln

10:00 am : The stock market is trending higher, stepping off the unchanged line. Still, the move is modest.

The Philadelphia Fed Survey, an index for regional manufacturing conditions, posted a reading of -15.6 for May. Economists, on average, were expecting a reading of -19.0. The prior month's reading was unrevised at -24.9.

There have been several economic readings released this morning. Most have had little impact on market sentiment. The more recognizable reports have also caused little reaction since their results were in step with expectations.DJ30 -3.02 NASDAQ +5.66 SP500 +1.51 NASDAQ Dec/Adv/Vol 1182/1254/299.94 mln NYSE Dec/Adv/Vol 1465/1273/123.65 mln

[UpInArms]

53. Bank fair value debt gains may yet be reversed

http://www.reuters.com/article/bondsNews/idUSL1357106620080515?sp=true

dislocation has allowed some banks to book gains on the value of their own debt, but analysts warn these gains are not an indicator of profit and they can easily be wiped out as conditions normalise.

HSBC (HSBA.L: Quote, Profile, Research), Europe's biggest bank, on Monday said profits in the first quarter beat those of a year ago, even as it revealed a $5 billion hit from bad debts on U.S. home loans and asset writedowns . It recorded a fair value gain of $2.7 billion on its own debt during the period due to a widening in credit spreads.

"We use fair value because we believe it's what investors want to see and they find it useful," said a spokesman at HSBC.

"Fair value is a guide but clearly market movements can change those gains very quickly. We try to keep investors up-to-date on it as much as possible."

Earlier in May, UBS (UBSN.VX: Quote, Profile, Research) recorded a gain of 2.1 billion Swiss francs ($2 billion) due to the widening of its own credit spread.

While the gains probably did help support headline figures, they don't change a bank's credit quality and will be reversed as credit markets recover, analysts at Fitch Ratings said.

...more...

[ozymandius]

54. lunchtime update

12:18
Dow 12,922.96 Up 24.58 (0.19%)
Nasdaq 2,511.51 Up 14.81 (0.59%)
S&P 500 1,413.26 Up 4.60 (0.33%)
10-Yr Bond 3.869% Down 0.069
NYSE Volume 1,449,700,125
Nasdaq Volume 940,211,687.5

11:30 am : Trading continues to lack conviction as the stock market moves sideways. Energy continues to outperform the other sectors, up 1.6% to a session high.

Transocean (RIG 153.95, +6.75) is lending support to the energy sector. Transocean recently received a Buy rating at UBS. Oil giant and Dow Jones component Exxon Mobil (XOM 90.90, +0.99) is also providing leadership.

Fellow Dow component General Electric (GE 32.34, -0.17) has succumbed to selling interest after trading higher in premarket activity. The company announced it is putting its appliances business up for sale. Notably, GE's appliances are primary competitors of Whirlpool (WHR 77.79, +1.10). Whirlpool is trading higher this session.DJ30 -4.16 NASDAQ +5.16 SP500 +1.73 NASDAQ Dec/Adv/Vol 1336/1328/739.66 mln NYSE Dec/Adv/Vol 1390/1542/336.18 mln

11:00 am : Stocks continue to trade listlessly; the S&P 500 is largely unchanged from earlier levels. Advancing stocks in the S&P 500 are relatively in-line with the number of decliners.

Mid-cap stocks are outperforming the major indices. The S&P 400 is up more than four points, or 0.5%, this session.

The dollar is trading slightly lower Thursday, as measured by the dollar index. The dollar index is down just 0.1% to 72.32.DJ30 +10.82 NASDAQ +8.50 SP500 +2.85 NASDAQ Dec/Adv/Vol 1233/1374/606.46 mln NYSE Dec/Adv/Vol 1324/1563/271.19 mln

[AnneD]

59. Electricity retailer won't honor fixed-rate contracts

When can a "fixed-price" electric plan be "un-fixed?" Customers of one Houston-based electric retailer say the company is telling them whenever it wants.

National Power Co. has told customers it will no longer honor many of its existing long-term power contracts and will increase rates as much as 28 percent in the next 45 days. Customers say the company told them it is adjusting its rate of 11.9 cents per kilowatt hour to 15.3 cents because of higher wholesale power prices.

A flood of complaints to the Texas Public Utility Commission led that agency to launch an investigation and pull the company's price data from its consumer Web site Wednesday after repeated efforts to get answers from the company failed.

PUC Chairman Barry Smitherman said he doesn't believe National Power's contract allows it to make such a move, although he's had a hard time nailing down what the commission's rules say about such changes.

more.....

http://www.chron.com/disp/story.mpl/business/5781041.html

They pissed off the wrong bunch of folks. We're looking for a lawsuit over this.

[AnneD]

60. Hey .....

we need some K&R to keep us up the line here. Show SWT a little love.
:kick:

[ozymandius]

63. Thanks Anne.

It does seem a little slow today. I thought maybe it's the sideways motion of the stock markets. They are real snoozers. :boring:

On edit: Maybe I smell bad. Or maybe my curmudgeonly disposition is off-putting.

[TalkingDog]

71. Hey, now! Don't skimp on the curmudge. It's my favorite part.

'Course I always hate picking the eyes off.....

[AnneD]

72. Our cafeteria 'mystery meat'....

never looked that good.:rofl:

[AnneD]

62. Clear Channel settlement reflects tight credit, ad slump....

NEW YORK — A lot has changed in the year and a half since radio industry leader Clear Channel struck a deal to go private. Credit markets seized up, radio advertising continued to falter and another radio buyout deal failed.

All that helps explain why Clear Channel didn't mind taking a lower price and slightly higher lending rates to settle a dispute with its lenders Tuesday, clearing the way for the long-delayed buyout to proceed.

The final $36 per-share price was 8 percent below the latest offer of $39.20, and even below the original price of $37.60 that major shareholders had opposed as being too low. Clear Channel struck the original deal to be taken private by the buyout firms Bain Capital Partners and Thomas H. Lee Partners in November 2006.

This time, San Antonio-based Clear Channel wasn't taking any chances of the financing falling apart, noting this week that the company, its two private equity partners and six lending banks had agreed to "documented definitive agreements" for financing.

Lawsuits are now being dismissed.

http://www.chron.com/disp/story.mpl/business/5781034.html

[ozymandius]

64. GWB wants to throw rocks at your windows.

Maybe a total non sequitur will liven things up a bit.

2:00
Dow 12,937.46 Up 39.08 (0.30%)
Nasdaq 2,519.50 Up 22.80 (0.91%)
S&P 500 1,415.34 Up 6.68 (0.47%)
10-Yr Bond 3.862% Down 0.076
NYSE Volume 2,201,516,750
Nasdaq Volume 1,342,804,000

1:30 pm : The stock market is trading near session highs as crude oil prices fall 1.8%.

Eight of the ten economic sectors at trading at or near their session peak. Meanwhile, energy (-0.2%) and materials (+0.5%) have been trending lower, and are now trading near their session troughs.

There has been notable strength within large-cap tech names, as the Nasdaq 100 advances 1.2%. Heavyweights Microsoft (MSFT 30.38, +0.45), Apple (AAPL 188.51, +2.25) and Qualcomm (QCOM 44.83, +0.70) are lending support.DJ30 +49.50 NASDAQ +23.14 SP500 +6.81 NASDAQ Dec/Adv/Vol 1154/1621/1.23 bln NYSE Dec/Adv/Vol 1167/1864/588 mln

1:00 pm : The stock market made a nice move higher, but has taken a step back. Buying picked up after the Department of Energy announced natural gas inventories were greater than analysts had forecast.

The energy sector (+0.2%), which had been a session leader, took a dive on the news.

Crude prices also reversed course. Oil had been trading above $125 per barrel for the session, but is now below $123 per barrel. For the session, oil is down roughly 1.6%.DJ30 +36.15 NASDAQ +21.24 SP500 +6.30 NASDAQ Dec/Adv/Vol 1150/1606/1.12 bln NYSE Dec/Adv/Vol 1154/1849/520.53 mln

[ozymandius]

67. updating blather

2:00 pm : The stock market continues to trade in higher ground, though off its best level. Sentiment has improved as only the defensive-oriented utility sector (-0.5%) is trading with a meaningful loss. The Dow Jones Utility Average is also down 0.4%.

Carl Icahn officially announced he has delivered a letter to Yahoo! (YHOO 27.34, +0.20) with the biographies of 10 nominees for the company's board of directors as part of a proxy fight.

Treasurys have attracted some added buying interest. The benchmark 10-year Treasury Note is trading 15 ticks higher and is now yielding 3.86%.DJ30 +40.22 NASDAQ +22.84 SP500 +6.73 NASDAQ Dec/Adv/Vol 1219/1593/1.34 bln NYSE Dec/Adv/Vol 1178/1852/642.13 mln

[AnneD]

73. MERRILL MANDATES STOCK RATINGS

May 15, 2008 -- Merrill Lynch is worried about being too bullish on the stocks it pitches the public - and as a result, it's forcing its analysts to trash one of every five they cover.

The brokerage said yesterday that starting June 2, its analysts will be required to slap an "underperform" rating on 20 percent of the stocks they cover. The rating is equivalent to a "sell," the lowest brokerage rating.

The move would double the number of "sell" ratings that Merrill issues, and is about quadruple the Wall Street average of "sell" ratings.

Merrill, with client assets of nearly $2 trillion, said the changes will make it easier for investors to sort the winners from losers in a sector.

The move also could insulate the firm from getting sued by investors or being investigated again by regulators for hyping stocks that are fundamentally losers, analysts said.

more....

http://www.nypost.com/seven/05152008/business/merrill_mandates_stock_ratings_110970.htm

:wow: truth in advertising.... what is the world coming too:wtf:
If this isn't a sign of the final days, I don't know what is. I guess the next question is-what trader's jacket would Jesus wear.

[TalkingDog]

75. But.....

How do they choose the 20%? Do 1/5th of stocks routinely underperform? What if you get a royal flush and they are all great?

I guess what I'm trying to understand is: why an "arbitrary" 20%? Why not just give them a guideline for what constitutes an "underperforming" stock?


Or is that a "I know it when I see it" kinda thing?

spelling Nazi edit

//Admitting my complete ignorance on the subject.

[ozymandius]

79. If the focus is on the S&P - I'm not a bit surprised.

The S&P has great notoriety in dumping under-performing stocks to keep its average steady. It's something that we never hear abotu that often -not like when a company gets dumped from the Dow. That's major news.

[ozymandius]

78. To close: oil traders did the Big Fake on commodities.

Yeah! Everybody wins! :eyes:
Dow 12,992.66 Up 94.28 (0.73%)
Nasdaq 2,533.73 Up 37.03 (1.48%)
S&P 500 1,423.57 Up 14.91 (1.06%)
10-Yr Bond 3.843% Down 0.095
NYSE Volume 3,836,455,000
Nasdaq Volume 2,224,410,250

4:20 pm : Stocks spent Thursday morning trading in subdued fashion as traders found little to motivate their interests. However, concerted buying efforts surfaced early in the afternoon after crude prices took a dive. The stock market closed at its session high, up more than 1%.

Oil traded in volatile fashion Thursday. During the session, crude traded hands for more than $126 per barrel, near its all time intraday record high, before falling below $121 per barrel. Oil reclaimed its losses to finish largely unchanged near $124 per barrel. suckers!

The drop in oil prices rekindled buying interest in stocks. The tech sector (+2.1%) ended the session with the largest gain, led by large-cap tech players Intel (INTC 24.97, +1.13), Cisco (CSCO 26.50, +0.75), and Microsoft (MSFT 30.45, +0.52).

Yahoo! (YHOO 27.75, +0.61) also ended the day higher after billionaire activist investor Carl Icahn officially announced plans to take a proxy fight to the company. Icahn delivered a letter to Yahoo! with the biographies of 10 nominees he is recommending for the company's board of directors.

In merger and acquisition news, media company CBS Corp. (CBS 24.23, -0.59) announced it will acquire Internet news company CNET Networks (CNET 11.41, +3.46) for $1.8 billion, or $11.50 per share.

Dow Jones component and industrial conglomerate General Electric (GE 32.37, -0.14) announced it will be selling its appliance business. Investors reacted by pushing the stock marginally lower.

A batch of economic news prompted little reaction among stock traders in the early going. Leading the list were jobless claims data for the week ending May 10, which totaled 371,000. The claims were largely in-line with expectations. Most notably, the four-week claims average edged down a bit and continues to trend below recessionary levels.

Industrial production for April slipped 0.7%, which was a more substantial downturn than the 0.3% downturn that was expected. Capacity utilization for April totaled 79.7%, which is below the consensus utilization rate forecast of 80.1%. The prior month's capacity utilization reading was revised marginally lower to 80.4%.

The Empire State Manufacturing Index for May came in at -3.2, which is below the flat reading economists expected. Meanwhile, the Philadelphia Fed Survey, another regional manufacturing index, posted a reading of -15.6 for May. A reading of -19.0 was expected. Notably, the prior month's reading was unrevised at -24.9.

Treasuries attracted some buying interest. The 10-year Treasury Note climbed 24 ticks this session, reducing its yield to 3.82%. DJ30 +94.28 NASDAQ +37.03 NQ100 +1.7% R2K +1.0% SP400 +1.2% SP500 +14.91 NASDAQ Dec/Adv/Vol 1106/1757/2.22 bln NYSE Dec/Adv/Vol 911/2192/1.20 bln