STOCK MARKET WATCH, Thursday 28 April

[ozymandius]

Thursday April 28, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 268 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 136 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 192 DAYS
DAYS SINCE ENRON COLLAPSE = 1250
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
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

AT THE CLOSING BELL ON April 27, 2005

Dow... 10,198.80 +47.67 (+0.47%)
Nasdaq... 1,930.43 +2.99 (+0.16%)
S&P 500... 1,156.38 +4.64 (+0.40%)
10-Yr Bond... 4.24% -0.03 (-0.70%)
Gold future... 434.10 -4.90 (-1.13%)

GOLD, EURO, YEN, Dollars and Loonie




PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. MARKET CHAOS ABOUNDS!

WrapUp by Mike Hartman

Orders for durable goods plunged 2.8% in March to post the biggest decline in over two years, while consensus expectations called for a rise of 0.3%. Orders for February were revised from a gain of 0.3% to a decline of 0.2%. The report is considered volatile in its month to month fluctuations, but analysts who follow the report regularly concede that the numbers are legitimately soft. According to John Shin, an economist at Lehman Brothers, “The details are as soft as the headline numbers.” When the news broke, stock market futures hit the skids, bonds caught a bid and moved higher, and the U.S. dollar fell back to yesterday’s close after opening higher for no apparent reason. I was baffled as to why the dollar opened much higher than yesterday’s close, so I began to dig into the financial news wires to try and figure out why the dollar gapped higher.

The U.S. Dollar Index closed yesterday at 83.94 and opened this morning at 84.33. As I searched the news for a reason, Rick Santelli came on CNBC to say that the dollar moved higher overseas in the stealth of the night because the Bank of Korea denied a report they were planning to sell $17 billion worth of U.S. Treasuries. This was a completely BOGUS reason for the dollar to open higher, since the news was out during yesterday’s trading. I’m guessing, but I don’t think that was Mr. Santelli’s reasoning…I think it was scripted for him to give that line of thinking. The Korean announcement could not have been the reason for the dollar’s gap higher this morning because it was used as the reasoning for yesterday’s decline in Treasury prices. Here is what I read from Reuters:

U.S. Treasuries on Defensive
Wed Apr 27, 2005 05:05 AM ET

LONDON (Reuters) - U.S. Treasury prices inched down on Tuesday, undermined by a report, although denied, that South Korea was considering selling U.S. government debt to finance a new agency.

-cut-

How do you think the demand would have been for today’s auction if the U.S. dollar was tanking badly versus the yen and euro? The big spin in the news today keeps talking about how the euro is going to suffer due to weakening economic conditions. A recent manufacturing report from France showed confidence falling, and a separate report from Germany had consumer confidence falling from the prior month. For Germany, this was only the first decline of consumer confidence in the last nine months and it was attributed to high energy prices and rising unemployment due to outsourcing. Nothing new here, so why is there so much pressure on the euro? We face the same consumer confidence issues with high energy prices and workers standing in line for unemployment benefits.

-cut-

I did the best I could to describe the current situation when I wrote “The Stakes Are Very High” just two weeks ago. The stakes are definitely quite high, but I didn’t think we would continue witnessing these acts of desperation to prop-up a U.S. dollar that is ultimately destined for lower levels. Watch for stocks to crash right in front of the quarterly debt refunding auction that is coming in just a few short weeks on May 10, 11 and 12. Crumbling stock prices with continuing weakness in economic reports will be needed to create enough demand to sell the auction…just like the Treasury demand that was created for today’s auction! These clowns are making a bad joke out of our markets. Who will be indicted next for fraud or cooking the books or insider trading?

more...

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

[54anickel]

2. Bush is Blowing Smoke on Energy (heh-heh)

Hitting all the points in a noted GOP pollster's playbook, the President's plan is driven by politics not policy. Worse, it won't cut oil dependency.

http://www.businessweek.com/bwdaily/dnflash/apr2005/nf20050428_9012_db045.htm

snip>

Powerful sentiments, indeed. But the words are largely hollow. Sadly, the plan Bush proposed would do little to increase existing supplies of oil, gas, or electricity, or decrease domestic demand for energy -- the two steps that would really make a difference. Charges Frank O'Donnell, head of Clean Air Watch, a Washington-based environmental group: "The new Presidential energy plan seems mainly to be a public-relations stunt aimed at trying to reverse some of the latest polls, which show a growing public discontent with high gas prices -- and the President."

LOW PRIORITY. Of course, environmentalists such as O'Donnell can usually be counted on to bash GOP policies. But in this case the criticism is deserved. Plenty of evidence indicates that the White House's sudden interest in energy policy is driven far more by politics than substantive policymaking.

To understand why, recall the last Presidential election. Democratic candidate John Kerry struck a nerve when he called for reducing American dependence on Middle Eastern oil, saying that "we should rely in American ingenuity and not the Saudi Royal family."

Yet, Kerry failed to turn energy into a significant policy issue in the race. And the White House learned a lesson: You can score political points by talking about energy policy -- without ever needing to follow through. It has been widely reported that Vice-President Dick Cheney privately told top Washington energy-policy wonks after the 2004 election that the Administration would put the issue low on its priority list for 2005.

snip>

The President's failure to propose any meaningful solutions, while claiming to "do the right thing for America" makes it hard not to conclude that the Administration's main goal is not energy independence, but rather improving its standing the polls. Indeed, what's most striking about Bush's Apr. 27 speech is how closely it follows the script written by Luntz earlier this year. A few examples:

more...

[UpInArms]

9. A match made in petroleum

http://www.boston.com/news/globe/editorial_opinion/oped/articles/2005/04/28/a_match_made_in_petroleum/

Looking macho but sensitive, President Bush held hands with Saudi Arabia's Crown Prince Abdullah and the two men kissed. Like Brad Pitt and Angelina Jolie, the two leaders engaged in a public display of affection that delighted comics and Democrats everywhere. ''What happens in Crawford stays in Crawford," joked Jay Leno, in a ''Tonight" show take-off on the Las Vegas tourism commercials. And humorist Andy Borowitz said, ''After the picture came out, President Bush reiterated his opposition to gay marriage -- unless one of the partners has several billion barrels of petroleum."

<snip>

Two new polls make a connection. In a new Gallup poll, respondents list fuel and oil prices at the top of economic problems facing the country; however when it comes to personal economic problems, the respondents list low wages and healthcare costs. Gas prices are also cited as a reason for flat consumer confidence in the latest ABC News/Washington Post survey, which puts Bush's job approval rating at 47 percent.

But John Gorman, president of Opinion Dynamics, the company that conducts the Fox News poll, cautions that it is hard to isolate gas prices as the sole driving force behind Bush's sinking poll numbers. Other factors also drag down Bush's popularity and job approval ratings: The president continues to push an unpopular proposal to change Social Security; Republican Party leaders face ethics questions; and the GOP angered the American public by taking up the Terri Schiavo case. The continuing GOP charge to commingle politics and religion is also controversial. Meanwhile, Iraq hovers in the background.

Still, said Gorman, ''There's no doubt you see consumer confidence dropping. All the national polls show people are pessimistic about the economy. This is clearly driven in large part by gas prices. When you drive into the gas station and it costs $35 to fill up your tank, when it has been $20 as long as you can remember, that does something to you."

Gasoline prices make the average American driver scowl and shake his fist at the gas pump. They also make an American president hold hands with a crown prince as they sashay down a path of Texas bluebonnets.

...more...

[54anickel]

39. Bit off topic, but the line regarding Terri Schiavo brought this to mind -

Did you catch On Point last night on Public Radio? Interesting discussion regarding the Christian Dominionism movement and the latest annual convention of the National Religious Broadcasters Association.

http://www.onpointradio.org/shows/2005/04/20050427_a_main.asp

[UpInArms]

43. change KKK for Fundamentalists

http://www.huppi.com/kangaroo/Timeline.htm

1924
The Ku Klux Klan reaches the height of its influence in America: by the end of the year it will claim 9 million members. It will decline drastically in 1925, however, after financial and moral scandals rock its leadership.
The stock market begins its spectacular rise. Bears little relation to the rest of the economy.
1925
The top tax rate is lowered to 25 percent - the lowest top rate in the eight decades since World War I.
Supreme Court rules that trade organizations do not violate anti-trust laws as long as some competition survives.
1928
The construction boom is over.
Farmers' share of the national income has dropped from 15 to 9 percent since 1920.
Between May 1928 and September 1929, the average prices of stocks will rise 40 percent. Trading will mushroom from 2-3 million shares per day to over 5 million. The boom is largely artificial.
1929
Herbert Hoover becomes President. Hoover is a staunch individualist but not as committed to laissez-faire ideology as Coolidge.
More than half of all Americans are living below a minimum subsistence level.
Annual per-capita income is $750; for farm people, it is only $273.
Backlog of business inventories grows three times larger than the year before. Public consumption markedly down.
Freight carloads and manufacturing fall.
Automobile sales decline by a third in the nine months before the crash.
Construction down $2 billion since 1926.
Recession begins in August, two months before the stock market crash. During this two month period, production will decline at an annual rate of 20 percent, wholesale prices at 7.5 percent, and personal income at 5 percent.
Stock market crash begins October 24. Investors call October 29 "Black Tuesday." Losses for the month will total $16 billion, an astronomical sum in those days.
Congress passes Agricultural Marketing Act to support farmers until they can get back on their feet.

[54anickel]

47. UGH! The more things change, the more they remain the same...n/t

[AuntiBush]

106. FDR Brought American Back from Economic & Wartime Disaster

And, being the Wall Street lawyer that he was, he "knew" what NOT to do with Social Security - making it a separate entity, not part of the mainstream government economic system. Of course, Prescott "Grand-pappy" Bush headed the World Bank during the "New Deal" era; FDR, knowing Prescott was making $$$ w/German Nazi's ended that quick to protect all Americans.

That's why he held office of President for 4 terms in a row; that's 16 years straight. Bush family is still sick pay-back jealous, enough so to derail our country's economy?!?! Guess their pocketing the loot. Crooks!

Now... that's why the Chimp is anti-American, anti-Social Security.

That fake Texas draw isn't heard as much, in case anyone's not notice.

Social Security, up till being Bushwhacked was the only thing going good for American's, with an impeccable 1% marginal average for error.

On note: Mid May does not look good. Are our FHIC's going to hold?

Edited for typos

[54anickel]

137. Hello AuntiBush and thanks for stopping by. Always nice to hear

from folks with an historical perspective. :hi:

You know, I've never really thought about how deep the Bush anger toward Dems and FDR in particular must run. And you're correct, he is loosing that fake Texas Twang. I'll bet it's back for tonight's performance though.

[AnneD]

45. Morning Marketeers

:donut: Wasn't yesterday special. Thanks for the wrap up Ozy. Our currency is starting to look like a hot potato. I am still feeling very bearish about things (and really have every since Bush took over) as our economic policy has glossed over problems instead of addressing them.
Happy hunting...and watch out for the bears.....

[UpInArms]

3. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 84.23 Change +0.11 (+0.13%)

Dollar Recovers From Durable Goods Thanks To Retracement In Oil Prices

http://www.dailyfx.com/index.php?option=com_content&task=view&id=881&Itemid=39

US Dollar

The dollar did it again. Despite the initial knee jerk rally after the horrid durable goods report, the mighty buck managed to recover its stance with only a few nicks and bruises. The increase in crude inventories and less than expected decline in gasoline supplies gave dollar bulls hope that the pocketbooks of US consumers may finally see some sort of relief. Whether this is a last push for production ahead of the summer driving season or a new trend for oil still remains to be seen. There has also been a rumor floating around the markets that the Fed will be dropping the phrase measured from their statement next week. For this upcoming FOMC meeting, the measured phrase is really the card that is in play. Given the mixed results of recent US economic releases (weak durable goods and strong new home sales being the latest), the market is very split on potential changes to statement. Dollar bulls will certainly be disappointed if the Fed chooses to continue raising rates at a "measured" pace, but will probably see more converts to their camp if the Fed does the inevitable. Meanwhile, as early as the beginning of this year, we began alerting our readers about the upcoming retirement of Greenspan on January 31, 2006. The first of what will probably be many front-page cover articles in the months ahead has surfaced about potential replacements for Greenspan. According to an article published in this morning's Wall Street Journal, the top three contenders for Greenspan's post is Martin Feldstein (a Harvard University economist), Glenn Hubbard (Current Dean of Columbia University's Business School), and Ben Bernanke (Fed Governor and soon to be Chairman of the Council of Economic Advisers). Catch the article for a more detailed analysis of each of these men as well as a few "dark-horse" candidates.

...more...

Euro, Dollar, Yen – All Caught in Crosscurrents

http://www.dailyfx.com/index.php?option=com_content&task=view&id=889&Itemid=39

Which is it - serious slowdown or continued growth? In the FX market these days the answer seems to change every half an hour as all G-3 economies report wildly gyrating results on a daily basis.
For trend traders this week has been a true nightmare as EUR/USD broke the 1.2900 barrier only to come screaming back to 1.2980 after shockingly poor US Durable Goods yesterday which recorded the worst decline since 2002. No more than three hours later the pair was back trading near day's lows as oil slipped to $51/bbl on higher than expected inventory numbers.

This type of grinding, directionless range trading is unlikely to change as G-3 economic reports continue to send mixed messages. Tonight's data is a case in point. In Japan Industrial Production unexpectedly fell to -0.3% from 0.1% projected mainly on a large drop in production of train cars and ships. At the same time Japanese PMI rose to 53.3, the highest rate since September 2003. Meanwhile in Europe German unemployment numbers reported the first decline in 16 months decreasing by -79K, but the number is subject to so many adjustments based on new unemployment measurement rules in effect since beginning of the year that the market chose to ignore it. On a more consistent EU definition standards German unemployment remains at troublesome 9.4% level.

Are global economies heading into a funk? Recent economic evidence certainly suggests so. Looking ahead to today's US GDP the market whisper number is already ratcheting down expectations to 3.0% from 3.4% expected. Perhaps the best news for growth bulls is the fact that oil is starting to finally recede from record highs. If crude breaks the $50/bbl and remains in the $40's for most of the summer world economy should receive a healthy boost with the dollar and yen the prime beneficiaries. For now however it's the race for "least worst performer" amongst the majors as volatility continues to shrink and FX markets flounder looking for direction.

...more...

Goodness, Ozy! I almost felt like I should tag the dollar watch (not by mistake) to the Wrapup!

Have a Great Day Marketeers!

[54anickel]

8. Doesn't the timing of finding all that extra crude floating arounds seem

rather serendipitous?

I recently read that the strategic reserve is nearing its goal capacity of 700 million barrels - at 690-something now. That should help alleviate some demand as well. Will people believe that BeelzeBush and friends deserve the credit for a leveling out in prices?

[UpInArms]

10. our myopic press and the spoon-fed sheeple

have yet to tie any strings together.

I have to say that it has been exceeding difficult to reconcile the differences between the DOE and API releases - it appears to me that the rise in crude is not due so much to increased inputs as to the reduced capacity to refine.

Will they lay that at the feet of the idiotboy as a success? Well, probably they will say that the kissing princes made it magically happen on the week that they held hands whilst strolling through the bluebonnets :puke:

[54anickel]

16. SNARF! "Whilst strolling through the bluebonnets" Heh, all I see in

that field of bluebonnets is a whole lotta bull!

[UpInArms]

21. Dollar dented by weaker-than-expected GDP

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7BDE48AB59-25DA-45B1-8B33-3B46DA45F235%7D&

NEW YORK (MarketWatch) - The dollar lost strength early Thursday after the Commerce Department said the U.S. economy grew at a 3.1% seasonally adjusted rate in the first quarter, below the 3.6% increase predicted by economists polled by MarketWatch. The weaker-than-expected growth was viewed as providing fresh evidence for an increasingly popular theory that the economy has hit a soft patch. In recent trades the euro stood at $1.2915, up from $1.2900 before the news. The dollar fell to 105.71 yen from 105.90 yen beforehand.

Will it have a 20 minute recovery or will this "dent" scratch off some of the green paint?

[UpInArms]

26. looking at the exchange charts

says it was only a 20 minute "ping"

http://www.weblinks247.com/exrate/

no dollar bears today?

[spotbird]

69. It's Clinton's fault.

His reach will extend into infinity if things don't pick up.

[UpInArms]

72. the everpowerful Clenis

here are the things that I hold against the Clenis:

NAFTA
GATT
Welfare Reform
Keeping Meanspin

[54anickel]

4. U.S. Shows Some Parallels With Argentina of '90s

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_berry&sid=a4eft3tFpFDM

snip>

Same `Cavalier' Attitude

``The United States has shown every sign of having adopted that same cavalier, incautious attitude in the first few years of the twenty-first century,'' Blustein says.

Argentina had its spree and since the end of 2001 has paid a horrendous price for its folly. It had borrowed in dollars and hadn't nearly enough to repay its exploding debt when foreign investors shut off the flow of new money.

There has been no similar day of reckoning yet for the U.S., and the eventual price to be paid is unknown. It shouldn't be on a scale vaguely comparable with that of Argentina's, though it may be uncomfortably large.

The U.S. economy is far larger than Argentina's of the '90s, and thus better able to sustain even a large shock. More importantly, this country's foreign debt is also denominated in dollars, which the Federal Reserve can create at will -- though last week Fed Governor Donald L. Kohn warned there is a distinct limit to that will.

Did Kohn actually contradict "Chopper" Ben?

more...

[UpInArms]

5. It's MaeveDay! Today's Reports:

Apr 28	8:30 AM		Chain Deflator-Adv.	Q1	-	2.0%	2.1%	2.3%	-	
Apr 28	8:30 AM		GDP-Adv.		Q1	-	2.8%	3.5%	3.8%	-	
Apr 28	8:30 AM		Initial Claims		04/23	-	320K	320K	296K	-	
Apr 28	10:00 AM	Help-Wanted Index	Mar	-	41	41	41	-

(edited because I forgot what day it is!)

Hey Maeve! :hi:

(editing again to fill in some blanks)

Apr 28	8:30 AM		Chain Deflator-Adv.	Q1	3.2%	2.0%	2.1%	2.3%	-	
Apr 28	8:30 AM		GDP-Adv.		Q1	3.1%	2.8%	3.5%	3.8%	-	
Apr 28	8:30 AM		Initial Claims		04/23	320K	320K	320K	299K	296K

[UpInArms]

13. GACK! Reports are in and some are BAD

8:29am 04/28/05 U.S. CONTINUING JOBLESS CLAIMS DOWN 76,000 TO 2.56 MLN

8:29am 04/28/05 U.S. 4-WEEK AVG. JOBLESS CLAIMS DOWN 8,000 TO 323,000

8:29am 04/28/05 U.S. WEEKLY JOBLESS CLAIMS UP 21,000 TO 320,000

8:30am 04/28/05 U.S. 1Q FINAL SALES UP 1.9%, SLOWEST IN 9 QUARTERS

8:30am 04/28/05 U.S. 1Q EQUIPMENT, SOFTWARE INVESTMENT UP 6.9%

8:30am 04/28/05 U.S. 1Q INVENTORY BUILDING ADDS 1.2% TO GDP

8:30am 04/28/05 U.S. GDP UP 3.6% YEAR-OVER-YEAR

8:30am 04/28/05 U.S. 1Q BUSINESS INVESTMENT RISES 4.7% VS. 14.5%

8:30am 04/28/05 U.S. 1Q CONSUMER SPENDING UP 3.5% VS. 4.2%

8:30am 04/28/05 U.S. 1Q CORE PCE PRICE INDEX UP 2.2% VS. 1.7%

8:30am 04/28/05 U.S. 1Q GDP SLOWEST GROWTH IN 2 YEARS

8:30am 04/28/05 U.S. 1Q GDP INCREASES 3.1% VS. 3.6% EXPECTED

[54anickel]

18. Will we hear "Soft Patch" all day long again?

[UpInArms]

22. I sure hope that there are a bunch of pillows in that

inventory building -

8:30am 04/28/05 U.S. 1Q INVENTORY BUILDING ADDS 1.2% TO GDP

'cause that's actually the line that bothers me the most (well, together with a couple (all) of the others.

Consumer spending down, inventory building up, jobless claims up, GDP down.

Aaaaahhhhh!

It may be a run for the hills kind of day.

[54anickel]

23. They'll give that one the "Frodo Spin" - they are building inventory to

meet the anticipated growing demand. :evilgrin:

[UpInArms]

27. the alarming paragraph from that

Reuters article:

The economy received a boost from strong inventory-building, which shot upward during the first quarter at an annual rate of $80.2 billion following a $47.2-billion pace of increase in the fourth quarter. That was the most vigorous pace of inventory addition in nearly five years, since $99.3 billion in the second quarter of 2000.

GACK!

[naderzenithnow]

34. CORE PCE PRICE INDEX UP 2.2% VS. 1.7%???

What's a Greenspin to do?

[UpInArms]

36. It really disgusts me that Meanspin

used the Fed to promote the idiotboy and his destructive policies and cut rates 11 times in 2001 - to nothing - and now, when real monetary policy and guidance is required, there is nothing left - a gutted shell - of an economy.

Reality would call for a reduction in rates at this point in the cycle, but that would crater the dollar.

Perhaps they are hoping that China will untie the yuan and that is what they will use to paper over their perfidiousness.

[naderzenithnow]

49. Now there’s a real conundrum, inflation growth is multiplying.

If *'s tax policy hadn't made our economy so top heavy and cumbersome there would have been real sustainable growth instead of this hyper inflationary consumption and speculative growth and we'd be able to raise rates aggressively to get out ahead of the coming crisis. But of course we see now the economy is cooling so were caught between a rock and a hard place. It's about to get so ugly. Honestly I’m extremely worried at this point

[UpInArms]

51. what is lacking (aside from honesty, integrity, intelligence)

in this maladministration and it toadies and drones, is vision.

And, I'm with you, naderzenithnow. I'm extremely worried at this point.

[54anickel]

76. What's lacking?

[UpInArms]

78. Warning: graphic

Pig brain with mold

[AnneD]

98. Stop it....yer killin' me

:rofl:

[54anickel]

25. Heh-heh, Google the news for "soft patch" - they're churning 'em out

http://news.google.com/news?hl=en&ned=us&q=soft+patch&ie=UTF-8&scoring=d

[UpInArms]

29. wow! 2,560 hits for "soft patch"!

even the Treasury Auctions are a "soft patch"

Treasuries rise, soft patch outweighs soft auction

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8317794

NEW YORK, April 27 (Reuters) - U.S. Treasuries pared gains on Wednesday after a short-term debt auction drew remarkably scant interest, but worries about the economy helped bonds hold their ground.

Bonds started rallying earlier in the session after data showing a surprising drop in durable goods orders for March revived the prospect of a slowdown in economic growth.

The possibility of a soft patch was still holding up longer-dated debt, with benchmark 10-year notes (US10YT=RR: Quote, Profile, Research) up 7/32 for a yield of 4.24 percent, compared with 4.27 percent on Tuesday.

But current two-year (US2YT=RR: Quote, Profile, Research) notes erased gains to trade essentially flat for a yield of 3.64 percent, bringing the spread between the two maturities to 60 basis points -- a new four-year low.

The new two-year notes were sold at a high yield of 3.650 percent. It drew bids for only 1.77 times the amount on offer, well below last year's average of 2.2 and the lowest reading since November, 2003.

...more...

[54anickel]

32. Raises that old question again - What if you held an auction, but nobody

came?

Sheesh, that spread is getting mighty low again.

[AnneD]

60. I am damn tired

of this 'soft patch' BS (if we give it a nice name, Joe average investor won't notice how bad it is and continue to lose his money at Wall Street). Talk about soft pedaling the bad news.....

[UpInArms]

94. US slowdown hardens 'soft patch' fears (all day long)

http://business.timesonline.co.uk/article/0,,13129-1589338,00.html

Growth in American GDP has slowed to its lowest pace in two years, raising concerns that the world’s largest economy is becoming mired in a "soft patch".

The Commerce Department said that the economy grew an annual rate of 3.1 per cent in the first three months of this year.

The figure represented a marked slowdown from the 3.8 per cent achieved for the last three months of 2004 and was the lowest since the 1.9 per cent reported for the first quarter of 2003, when activity was overshadowed by the prospect of the Iraq war.

The data also disappointed analysts, who had expected 3.6 per cent growth, and overshadowed early Wall Street trade, sending the Dow Jones Industrial Average 66 points lower to 10,132 in early deals.

<snip>

Robert Brusca at FAO Economics said: "We are on a decelerating trend. We have weak consumer confidence, the leading economic indicators are showing a slowdown, and we have failed to generate the kind of job growth people were hoping for.

"You put it all together and there is a very clear case for a soft patch."

...more...

"Soft Patch" confirmed. When will they call it a "Hard Spot"?

[TrogL]

117. how about "glare ice"

Like in a sleetstorm on a hill.

You put on the brakes and...

...absolutely

.........nothing

...............happens.

Until the crash at the bottom.

[54anickel]

138. Excellent mental image TrogL, and good to see you again...n/t

[UpInArms]

14. U.S. 1Q GDP grows 3.1%, slowest growth in 2 years

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38470.3542630208-834722368&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - The U.S. economy grew at a 3.1% seasonally adjusted annual rate in the first quarter of 2005, the slowest growth in two years, the Commerce Department estimated Thursday. Consumer spending, inventory building and business investment contributed most of the increase in gross domestic product. Foreign trade was a drag on growth. The economy grew 3.6% in the past year. Economists surveyed by MarketWatch were expecting GDP to increase 3.6% in the first quarter after 3.8% in the fourth. Core consumer prices increased at a 2.2% rate in the quarter, leaving the year-over-year increase at 1.6%, near the top of the Federal Reserve's comfort zone.

[UpInArms]

17. Economy Grows at Softest Pace in 2 Years

http://www.reuters.com/newsArticle.jhtml?jsessionid=N44ZNLADJVANSCRBAE0CFEY?type=businessNews&storyID=8331305

WASHINGTON (Reuters) - The U.S. economy grew at its softest pace in two years during the first quarter this year, slowing to a 3.1 percent annual rate of expansion as consumers and businesses curbed spending in the face of rising prices, the Commerce Department said on Thursday.

The expansion in gross domestic product, which measures total output within U.S. borders, was the weakest since a 1.9 percent pace during the first quarter of 2003 and was a surprisingly sharp deceleration from the 3.8 percent rate registered in the fourth quarter of 2004.

Wall Street economists had forecast first-quarter GDP would grow at a relatively more robust 3.6 percent rate.

<snip>

The softer-than-expected start to 2005 likely will boost expectations that Federal Reserve policymakers, who meet again next Tuesday to consider interest-rate strategy, will stick to a policy of smaller, gradual rate rises.

There was evidence in the GDP report that price pressures are growing. A price index favored by Federal Reserve Chairman Alan Greenspan - personal consumption expenditures excluding food and energy products - gained at a 2.2 percent annual rate, up from 1.7 percent in the final quarter last year and the strongest for any period since a 2.6 percent jump in the final three months of 2001.

Growth in consumer spending -- which fuels about two-thirds of national economic activity -- slowed, with personal consumption expenditures easing to a 3.5 percent annual rate in the first quarter from 4.2 percent in the closing quarter last year and from 5.1 percent in last year's third quarter.

...more...

[UpInArms]

15. U.S. weekly jobless claims up 21,000 to 320,000

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38470.3542150232-834722324&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - First-time claims for state unemployment benefits rose 21,000 to 320,000 in the week ending April 23, the Labor Department said Thursday. The department could identify no special factors behind the increase, which was in line with the expectations of Wall Street economists. The four-week moving average of initial claims dropped by 8,000 to 323,000. It's the lowest level since the week ended March 19. Meanwhile, the number of people receiving weekly benefit checks fell by 76,000 to 2.56 million in the week ended April 16.

[UpInArms]

19. U.S. Jobless Claims Rise to 320,000

(and last week's number was adjusted upward by 3,000)

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=8331330

WASHINGTON (Reuters) - The ranks of Americans queuing up to claim jobless benefits for the first time grew by 21,000 last week as expected, government data showed on Thursday, while continued claims declined to the lowest level in four years.

Initial claims for state unemployment aid rose to 320,000, matching Wall Street forecasts, compared with a revised 299,000 the previous week, the Labor Department said. This number had initially been reported at 296,000.

A Labor Department official said there were no special factors to take into account when examining the numbers but cautioned that claims data were usually volatile around holiday periods like school spring break and summer vacations.

...more...

It looks like a lot of unemployed folks have run out of benefits :(

[54anickel]

24. And last week's holiday was? Arbor Day? Admin Professional's Day?

data were usually volatile around holiday periods like school spring break and summer vacations. :eyes:

[ozymandius]

48. Navel Awareness Month... Change Your Air Filter Day... Smoke Detector ...

The litany of excuses is long and varied. I am always anxious to hear what issue they'll drag out next. Like - people filed fewer claims than expected because it was raining... or that fewer claims were filed because it was sunny, making indoor activities less attractive.

[Maeve]

37. Oh, for cryin' out loud! If they had any memory, they could explain it!

Sheesh, when I have to write their spin for them :eyes:...Let's go back one whole frickin' week and see...

U.S. initial jobless claims fall 36,000 to 296,000 By Rex Nutting
WASHINGTON (MarketWatch) - First-time claims for state unemployment benefits plunged by 36,000 to a seasonally adjusted 296,000 in the week ending April 16, the Labor Department said Thursday. It matched the lowest level for this business cycle. It's the largest one-week decline since December 2001. A Labor Department official cautioned, however, that seasonal adjustment issues surrounding the Easter holiday may have distorted the decline in new claims. The four-week average of initial claims dropped by 8,500 to 330,250, a four-week low. Meanwhile, the number of people receiving weekly benefit checks fell by 17,000 to 2.64 million in the week ending April 9.
http://www.marketwatch.com/news/newsfinder/pulseone.asp...

So last week's numbers were distorted and this week we make up for it!!! It's not rocket-science, just REMEMBERING WHAT YOU SAID A WEEK AGO!!!!!

:rant:

[54anickel]

42. Thanks Maeve!...n/t

[Maeve]

46. This "memory hole" business is driving me nuts

But then, they just don't remember because they didn't mean it/believe it when they said it--just so much hot air. :grr:

[UpInArms]

54. the daily/weekly historical revisionist thing

makes me nuts.

Glad to see you back with two hands!

:hug:

[AnneD]

63. Two Neurons...

no synapsis.... Thanks. Say, wasn't a Wall Street economist the basis of the movie 'Fifty First Dates'? Thanks Maeve.

[UpInArms]

55. Help Wanted Index falls to 39 from 41 (no jobs out there)

filling in all the blanks:

Apr 28	8:30 AM		Chain Deflator-Adv.	Q1	3.2%	2.0%	2.1%	2.3%	-	
Apr 28	8:30 AM		GDP-Adv.	Q1	3.1%	2.8%	3.5%	3.8%	-	
Apr 28	8:30 AM		Initial Claims	04/23	320K	320K	320K	299K	296K	
Apr 28	10:00 AM	Help-Wanted Index	Mar	39	41	41	41	-

What happened with all that repatriated money and the Jobs Creation Act?

[UpInArms]

6. GDP looks to slow slightly to 3.6%

http://www.marketwatch.com/news/story.asp?guid=%7B981412C2%2D5A40%2D4D37%2D86FD%2D6BDA8BB144FD%7D&siteid=mktw

excerpt:

Economists were fine-tuning their numbers on Wednesday after the Commerce Department reported an unexpected 2.8% drop in new orders for durable goods in March. Shipments of core capital goods -- the best monthly indicator of business investment -- dropped 1.1% in March. See full story.

"Weakness seen in the capital spending gauges of today's report clearly suggests that business spending has decelerated," said Tony Crescenzi, chief bond market strategist for Miller Tabak & Co.

The quarter ended on a sour note, with employment slowing, retail sales falling, capital goods orders falling and housing starts plunging. At the same time, inflationary alarms were sounding, putting nasty words like "stagflation" back in circulation.

The loss of momentum in March likely means a soft second quarter as well, since sizable gains in April and May will be needed just to climb back to the first-quarter average. Preliminary estimates for the current quarter see grow slowing to 3.4%.

<snip>

Only inventory building and government spending have maintained any momentum.

...more...

[UpInArms]

7. As layoffs wash over Sears, emotions run high

Retailer's tightly knit culture a thing of past as hundreds lose jobs

http://www.chicagotribune.com/news/nationworld/chi-0504280163apr28,1,6770860.story?coll=chi-newsnationworld-hed&ctrack=1&cset=true

excerpt:

More than 500 workers--and perhaps 1,000 or more--are in the process of being told by Sears Holdings Corp. that their services are no longer needed.

The mass layoff at the Hoffman Estates headquarters this week, where about 4,000 people worked as the week got under way, were not unexpected after the March merger of Sears, Roebuck and Co. and Kmart Holding Corp. formed Sears Holdings.

But to a company known for its tightly knit culture and top-shelf benefits that kept workers loyal to it for years, this cutback is a stark reminder that Sears' new owners don't much care about the past.

The culture going forward at Sears will be "cutthroat," said one administrative assistant who lost her job. Leaving the Marriott, she also noted that Wednesday was Administrative Professionals Day.

Among the biggest complaints from fired workers this week: Severance checks that are less generous than ones in prior layoffs.

<snip>

"We were met by a slew of smiling people where they gave us a packet and presented us with information pertaining to our exit," said one former information technology worker. "It was kind of eerie," he said of the cheerfulness.

...more...

[UpInArms]

11. the high price of oil is definitely not denting the profits of BIG OIL

Exxon Mobil net income up 44%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&dateid=38470.341978044-834720570&

DALLAS (MarketWatch) -- Exxon Mobil Corp. (XOM) reported a 44% increase in first-quarter profit Thursday morning, as earnings from exploration and production and refining and marketing improved and chemicals income set a record. The world's largest oil and gas company said its net income was $7.86 billion, or $1.22 a share. Excluding a gain, Exxon Mobil would have earned $7.4 billion, or $1.15 a share. Analysts polled by Thomson First Call expected per-share earnings of $1.20, on average.

Doesn't Exxon own it own country?

[UpInArms]

33. Strong oil and gas prices drive Unocal in Q1

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38470.3901222685-834726205&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Unocal Corp. (UCL) Thursday reported first-quarter earnings of $454 million, or $1.66 a share, up from a year-ago profit of $269 million, or $1 a share. On an adjusted basis, the El Segundo, Calif., oil company earned $441 million, or $1.62 a share, in the latest quarter. The average estimate of analysts polled by Thomson First Call was for a profit of $1.37 a share in the March period. Revenue from continuing operations reached $2.19 billion in the latest three months from $1.88 billion in the same period a year earlier. The company said its latest results were driven by strong crude oil and natural gas prices. The stock closed Wednesday at $54.59, down 2.5%.

Aren't those buzzwords so catchy! "Strong" not "Freakin' Out of Sight Price Gouging and Profiteering". Just gives me a case of the warm fuzzies :sarcasm:

Doesn't talk about the negative side effects for the rest of the country - the decimation of the household budget, the inflationary catastrophe-in-waiting for the ordinary family. :grr:

[54anickel]

12. Bank of Japan Says Deflation Will Last for 8th Year

http://www.bloomberg.com/apps/news?pid=10000080&sid=aKubtzIVTrwo&refer=asia

April 28 (Bloomberg) -- Japan's deflation will last for an eighth year, the central bank said today, making it less likely it will soon end its policy of keeping rates at zero and pumping cash into the world's second-largest economy.

snip>

Price Bubble

Deflation in Japan is a legacy of the 1980s asset price bubble, which drove the Nikkei 225 Stock Average to a peak of 38,957.44 on Dec. 29, 1989. The Nikkei today closed at 11,008.90, down 72 percent from its peak. Japan's land prices have fallen by half from their peak in 1991.

Japan fell into recession early last year as exports faltered and consumer spending stalled. The economy grew at a 0.5 percent annual pace in the fourth quarter.

The recovery may be faltering. Industrial production fell 0.3 percent in March from February, the government said today, compared with a median 0.2 percent increase forecast by economists. Spending by households headed by a salaried worker slid 1.1 percent in the same month, the second month of decline, the government said on April 26.

more...

[UpInArms]

20. Treasurys rise on weaker-than-expected GDP

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38470.3637704398-834723477&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Long-term Treasury prices rose, pushing yields lower, early Thursday after the Commerce Department said the U.S. economy grew at a 3.1% seasonally adjusted rate in the first quarter, below the 3.6% increase predicted by economists polled by MarketWatch. Although the unexpectedly tepid growth was viewed positively in the Treasury market, there also was concern that the report showed that core consumer prices increased at a 2.2% rate in the quarter, leaving the year-over-year increase at 1.6%, near the top of the Federal Reserve's comfort zone and suggesting the likeliood of continued interest rate hikes. The yield on the 10-year bond was 4.20%, down from 4.223% before the data.

[54anickel]

28. WTF - Oil prices rise on easing supply worries

http://www.rte.ie/business/2005/0428/oil.html

World oil prices rose today after tumbling over 4% in New York on sharply easing concerns over supplies in the US, dealers said.

New York's main contract, light sweet crude for delivery in June, added 18 cents to $51.78 a barrel in electronic deals. In London, the price of Brent North Sea crude oil for delivery in June rose 9 cents to $52.38 a barrel.

Oil futures fell $2.59 in New York trade after the release of figures showing US crude inventory levels had risen to a three-year high point.

:crazy:

[ozymandius]

30. pre-open blather

:15AM: S&P futures vs fair value: -4.8. Nasdaq futures vs fair value: -7.5. Futures market improves slightly, heading into the open of trading, but still indicate a negative start for stocks... While the largest one-day decline in oil prices yesterday helped fuel buying support for stocks, continued pressure (-1.4%) on the commodity ($50.87/bbl -$0.74) this morning has done little to counter the overall sense of nervousness created by concerns about a slowdown in economic growth

9:00AM: S&P futures vs fair value: -5.1. Nasdaq futures vs fair value: -9.0. Still shaping up to be a lower open for the cash market, as futures indications trade below fair value... Meanwhile, the slowest GDP growth in two years continues to offset better than expected earnings from the likes of XOM, GP and NCR, while Kellogg (K) has beaten by a penny and boosted its dividend by 10%

Looks like another up-up-up day folks! :silly:

[UpInArms]

31. ino.com blather

ino.com

The June NASDAQ 100 was lower overnight as it consolidates below the 10-day moving average crossing at 1427. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near-term. If June resumes this month's decline, weekly support crossing at 1387.77 is the next downside target. Closes above last week's high crossing at 1454.50 are needed to confirm that a short-term low has been posted. The June NASDAQ 100 was down 4.50 pts. at 1422.50 as of 5:43 AM ET. Overnight action sets the stage for a steady to lower opening by the NASDAQ composite index later this morning.

The June S&P 500 index was lower overnight as it consolidates some of Wednesday's rally but remains above the 10-day moving average crossing at 1153.36. Stochastics and the RSI are turning neutral to bearish signaling that sideways to lower prices are possible near-term. If this month's decline resumes, the 62% retracement level of the August- March rally crossing at 1130.03 is the next downside target. Closes above the 20-day moving average crossing at 1167.75 are needed to confirm that a short-term low has been posted. The June S&P 500 Index was down 3.00 pts. at 1154.10 as of 5:45 AM ET. Overnight action sets the stage for a steady to lower opening when the day session begins later this morning.

Hi Ozy! :hi:

[ozymandius]

44. Hi UpInArms!

:hi: Looks like we bumped heads while reaching for the same coin. Ino does a great job of weighing the reason behind the numbers.

[UpInArms]

53. and a bright shiny coin it was

:D

the thing I like about the ino is that it gives benchmarks and targets - earlier than the briefing.com yap and based on the charts and numbers :hi:

[UpInArms]

35. 9:37 EST numbers

Dow 10,167.76 -31.04 (-0.30%)
Nasdaq 1,924.70 -5.73 (-0.30%)
S&P 500 1,153.05 -3.33 (-0.29%)
10-Yr Bond 4.221 -0.16 (-0.38%)

NYSE Volume 53,934,000
Nasdaq Volume 95,368,000

[UpInArms]

38. 9:46 EST numbers and blather

Dow 10,141.38 -57.42 (-0.56%)
Nasdaq 1,920.64 -9.79 (-0.51%)
S&P 500 1,150.52 -5.86 (-0.51%)
10-Yr Bond 4.213 -0.24 (-0.57%)

NYSE Volume 120,241,000
Nasdaq Volume 169,723,000

9:40AM: Market opens on a downbeat note following a weaker than expected advance read on Q1 GDP data... Earlier, the Commerce Dept. showed that Q1 real GDP rose at 3.1% annual rate, below forecasts of 3.5% and Q4 growth of 3.8%... However, since many consensus estimates most likely were not revised lower to factor in yesterday's weak durable orders data, 3.1% growth should not come as such a negative surprise, as it is in-line with average GDP growth over the past 34 years...

Arguably more disconcerting was that the GDP deflator rose at a 3.2% annual rate - a key measure of inflation that checked in higher than the 2.3% in Q4 and well above recent trends...

[ozymandius]

41. 9:53 numbers reflect data

Dow 10,133.18 -65.62 (-0.64%)
Nasdaq 1,919.13 -11.30 (-0.59%)
S&P 500 1,149.22 -7.16 (-0.62%)
10-Yr Bond 4.217% -0.02

NYSE Volume 179,551,000
Nasdaq Volume 229,985,000

That last line should make some people blink.

[UpInArms]

50. 10:10 EST numbers and blather

Dow 10,140.42 -58.38 (-0.57%)
Nasdaq 1,919.39 -11.04 (-0.57%)
S&P 500 1,149.69 -6.69 (-0.58%)
10-Yr Bond 4.215 -0.22 (-0.52%)

NYSE Volume 306,240,000
Nasdaq Volume 349,128,000

10:00AM: Selling intensifies as the bulk of sector leadership remains negative... Pacing the way lower has been Energy (-1.6%), losing ground upon further analysis of ExxonMobil's (XOM 56.95 -1.43) lower than expected Q1 earnings and falling oil prices... Financial and Health Care have also been influential leaders to the downside, but losses on the latter have been minimized by strength in Drug stocks (+0.4%), following a 15% surge in GlaxoSmithKline's (GSK 50.20 +2.79) Q1 profits...

With regards to Technology (-0.6%), Semiconductor (+0.4%) has found modest buying interest, but not enough to offset weakness in Software (-0.8%) and Networking (-1.9%)...NYSE Adv/Dec 981/1624, Nasdaq Adv/Dec 803/1577

Where's that Help Wanted Index?!?!

[UpInArms]

40. "Soft Patch" now "Economic Slowdown"

Retail index slumps in early trading Thursday

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38470.4085468982-834728172&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- Retail stocks turned lower in early trading Thursday as investors absorbed reports pointing to an economic slowdown. The S&P Retail Index ($RLX) declined 2.69 points to 401.13.

[54anickel]

52. House Approves $1 Gold Coin (Sacagawea unpopular = new face)

http://www.guardian.co.uk/worldlatest/story/0%2C1280%2C-4967174%2C00.html

WASHINGTON (AP) - The House on Wednesday approved a new gold-colored coin bearing the faces of presidents to join the unpopular $1 Sacagawea coin in circulation, hoping a new design will spur use of dollar coins.

snip>

The bill also creates what would be the nation's first investment-grade 24-karat gold bullion coin. Intended for collectors, it would carry portraits of first ladies and a have a face value of $10 but sell for many times that amount at fluctuating prices based on the price of gold.

The new dollar coins would be the same shape, size and makeup of the gold-colored $1 coins now bearing the face of Sacagawea. The coins imprinted with her face would remain in circulation.

Oh yeah, must be some bigotry behind the unpopularity - let's change the face - so typical of our new hate mongering, hate driven mal-admin

snip>

Officials at the Mint estimate said the new $10 bullion coin could help the United States grab a bigger share of the global market in gold collector coins. They estimate that the potential world market for 24-karat gold coins is about $2.4 billion annually.

That market is dominated now by Australia, Austria, Canada, China, Singapore and Mexico, whose 24-karat coins account for about 60 percent of global gold coin sales.

more...

[Zynx]

56. More like $1 coin = unpopular

[wabeewoman]

109. What I can't figure out is who

is profiting from all these new coins being minted-nickles, dimes and now dollars. I understand the gold coin because many people (including myself) buy Canadian because it is 99.9% pure. But the dollar coin is unlikely to be popular. A teller at the bank was complaining about the nickle coins-just that it was expensive and unnecessary. You know if bush is doing it, some of his cronies are getting rich.

[ozymandius]

57. The Texas Privatization Plan

In his Social Security roundtable yesterday, President Bush stated, “If you’ve got a good idea, bring it forward. I don’t care if it’s a Republican idea, or a Democrat idea, independent idea, Texas idea, any kind of idea, bring it forward.” Well, it seems that Sen. Barbara Boxer (D-CA) took the president up on the “Texas idea” suggestion. The senator’s office has released a report looking at the 1981 Texas plan. In 1981, three Texas counties “decided to opt out of Social Security and instead to provide their public employees with a system of privatized accounts.” The analysis done by Boxer’s office and the nonpartisan Congressional Research Service “compares two sets of families in three different income brackets shows what happens to their retirement in 2005 under Social Security and under the Texas plan.” The conclusion:

By examining the actual system in place in Texas, this study shows that Americans are worse off with privatized accounts - not in theory, but in reality.

http://delong.typepad.com/sdj/2005/04/why_is_bush_hol.html

[ozymandius]

58. At 10:34 it's all about the oil.

Dow 10,172.71 -26.09 (-0.26%)
Nasdaq 1,925.44 -4.99 (-0.26%)
S&P 500 1,154.89 -1.49 (-0.13%)
10-Yr Bond 42.17 -0.20 (-0.47%)

NYSE Volume 471,841,000
Nasdaq Volume 484,626,000

10:30AM: Major indices pare some of their losses, as oil prices fall to fresh session lows, but stocks still remain under pressure across the board... Profit taking in crude oil prices ($49.95/bbl -$1.66) continues to have a larger impact on overall market action, but while a 3.2% sell-off in the commodity has fueled a modest recovery effort, it so far has not been enough to counter the growing concerns of an economic slowdown... NYSE Adv/Dec 862 /1943, Nasdaq Adv/Dec 923/1655

[UpInArms]

59. NYSE Merger Plans Hit Resistance

http://www.businessjournalism.org/content/6513.cfm

Don't call the designers to revamp the New York Stock Exchange trading floor just yet.

Following news of NYSE's merger plans with Archipelago Holdings to emphasize electronic trading last week, business journalists reported on some powerful resistance to the proposal this week.

Former NYSE board member Ken Langone questioned the financial sense behind the merger and declared intentions to buy the Exchange to preserve floor trading. Langone's involvement creates some interesting angles for reporters to explore.

“Langone's had an interesting relationship with the NYSE,” says Pradnya Joshi, business reporter for Newsday. “He's a larger-than-life personality who sometimes comes off as brash. There was some falling out with him over Dick Grasso's compensation.”

Langone was head of the committee that approved Grasso's highly publicized $190 million compensation package, which has become the subject of a lawsuit by state officials.

...more...

Goldman gains from NYSE merger to top $130m

http://business.timesonline.co.uk/article/0,,13129-1588694,00.html

Critics have seized on figures disclosed in an SEC filing to fuel their campaign against the deal

CRITICS of the merger of the New York Stock Exchange and Archipelago Holdings hardened their opposition last night as it emerged that Goldman Sachs’s financial benefits from the deal will top $130 million (£68 million).

A filing with the US Securities and Exchange Commission made by Archipelago discloses that Goldman will earn $3.5 million for advising the electronic trading firm on the deal. The filing also says that the bank owns 21 NYSE seats worth $2.5 million each, which will reap Goldman $52.5 million when the merged group buys out the seat holders. Further the bank’s 16 per cent stake in Archipelago has grown by $77 million since the deal was announced last week.

Goldman, which will have a stake in the merged company of 5.7 per cent, is also advising the Big Board.

Critics have charged that the bank has too many varied interests in the deal to advise the two sides independently.

To complicate matters, John Thain, the NYSE chief executive, is the former president of Goldman Sachs. The bank has denied any conflict of interest.

...more...

[UpInArms]

61. Kozlowski Denies Abusing Tyco Bonuses

http://abcnews.go.com/Business/wireStory?id=710806

NEW YORK Apr 28, 2005 — Former Tyco International Ltd. chief L. Dennis Kozlowski testified that he was not thinking when he left a $25 million bonus off his 1999 tax return, saying he "didn't pick up on it."

Kozlowski, 58, took the stand Wednesday as the first defense witness in his trial and that of former Chief Financial Officer Mark H. Swartz, 44. They are accused of looting the conglomerate of $600 million.

Kozlowski said his intent was always to boost the company's fortunes, never to commit a crime. But when asked by his lead lawyer how the $25 million bonus failed to appear on his 1999 tax return, Kozlowski said he could not explain why.

<snip>

He and Swartz are accused of stealing $170 million from Tyco by hiding unauthorized pay and bonuses and by abusing company loan programs and making $430 million by inflating the value of Tyco stock by lying about the company's finances.

...more...

with a bit of history:

Tyco Spent Millions for Benefit Of Kozlowski, Its Former CEO:
Company Secretly Forgave Loans, Financed Extravagant Lifestyle

http://www.mindfully.org/Industry/Tyco-Spent-Millions-Kozlowski7aug02.htm

In 1998, L. Dennis Kozlowski, then chief executive of Tyco International Ltd., moved into a new home in Boca Raton, Fla.: a 15,000-square-foot, Mediterranean-style, waterfront mansion complete with pool, tennis court and fountain.

Although Mr. Kozlowski was one of America's best-paid corporate executives, he didn't have to reach into his own pocket to finance the lavish spread. Instead, he paid for it with a $19 million, no-interest loan from Tyco.

Two years ago, Tyco quietly forgave the entire loan as part of a "special bonus" program, according to people familiar with the company. To cover Mr. Kozlowski's income taxes on the forgiven loan, these people say, the company kicked in an extra $13 million. Not a penny of these deals was disclosed to Tyco shareholders.

Mr. Kozlowski, who had been one of the most celebrated chief executives in the U.S., resigned on June 2 -- the day before the Manhattan district attorney charged him with evading more than $1 million in New York state sales taxes on his purchases of art. Mr. Kozlowski, 55 years old, has pleaded not guilty to those charges.

<snip>

Among the biggest items, which until now haven't come to light: Tyco secretly wiped clean another $25 million in loans to Mr. Kozlowski in 1999, according to people familiar with the company. More than $11 million of Tyco's cash paid for antiques, art and other fancy furnishings in Mr. Kozlowski's New York apartment, including a $6,000 gold-and-burgundy floral patterned shower curtain. The huge decorating bill came on top of the $18 million Tyco paid for the Fifth Avenue duplex, which Tyco considered a corporate apartment.

Then, last summer, Tyco picked up half the tab for a $2.1 million junket to the Italian island of Sardinia, people familiar with the company say. The central event of the weeklong extravaganza was a 40th birthday party for Mr. Kozlowski's wife, Karen, complete with a performance by singer Jimmy Buffett.

...more...

[UpInArms]

64. justifying greed and opportunism

http://www.forbes.com/work/management/2005/04/28/cx_da_0428topnews.html

excerpt:

At Tyco, top executives, Kozlowski especially, were paid a percentage of Tyco's profits, much of it in restricted stock. The idea was to align the executives' interest with that of the shareholders, and for a long time it worked. Tyco shares rose by a factor of ten between 1993 and 2001, as Tyco, led by Kozlowski, went on a merger tear.

<snip>

At Tyco, one set of incentives led to another, because Tyco executives were often paid in restricted stock. As a result, Tyco had programs to lend its executives money so they could pay taxes. Evidence at the trials has indicated that Kozlowski used money he borrowed under the so-called Key Employee Loan Program to pay for many things apart from taxes, including jewelry and homes. But Kozlowski testified that even before he was CEO the use of KELP loans was unrestricted. He said one former boss bought a boat--despite the fact that the original idea was to ease executives' tax burdens. Kozlowski said he acted with the full knowledge of the board and company accountants.

Because executive pay was based on company profits, there was naturally an incentive to accumulate assets. The way to encourage them to sell, Kozlowski explained, was to make the bonus plans allow for bonuses on "non-recurring gains."

...more...

[54anickel]

62. U.S. and China on a collision course

http://www.iht.com/articles/2005/04/26/news/edbowring.php

snip>

There has been a mix of reasons for China's failure to change: bureaucratic inertia, an indecisive new leadership, fear of the impact on employment and the financial system. But the most important factor now seems to be reaction against U.S. pressure. Nationalism has been on the rise as China's pride has been swelled by foreign adulation.

snip>

As for the United States, its assumption that it can have continuous 3 percent GDP growth based almost entirely on other nations' savings is even more remarkable. The buyers of U.S. debt - mostly Asian central banks - have helped sustain U.S. illusions about its economic prowess. More the fool they. But the United States itself is mainly to blame for abusing the role of the dollar to buy growth. China is right that the trade deficit is a U.S. problem that will not be solved by a yuan revaluation. Indeed it could make it worse and create inflation, not jobs, in the United States.

Nothing but a rise in savings - which means a sharp fall in consumption - can solve the deficit problem. In other words, the United States must face up to the necessity of a recession or prolonged minimal growth if balance is to be restored. Policies under Bush/Greenspan have delayed the day of reckoning. But it is coming.

This is not just politically unpalatable at home. U.S. attitudes to its foreign partners are either not-so-benign neglect, or assume that the United States is doing the world a favor by sustaining its consumption binge. In fact the imbalances are now threatening the trade system and dollar dominance which have been such successful ingredients of U.S. policy for 40 years.

more...

[UpInArms]

65. overleveraging on M&As?

S&P cut Rock-Tenn credit to junk status, may cut again

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38470.4505960532-834732416&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Standard & Poor's downgraded Rock-Tenn Co.'s credit 2 notches to BB, the second highest junk rating, from BBB- after the company said it would finance the bulk of its Gulf States Paper Corp. acquisition with debt. The rating was placed under review for possible further downgrades. "While Rock-Tenn's business position will be improved by this transaction, the use of financial leverage is very aggressive," S&P said. The company announced earlier that it was buying privately-held Gulf States Paper for $540 million, using $50 million in cash and the rest from proceeds from new credit facilities. The stock was last down 9.7% at $10.82.

[ozymandius]

67. Yowza. This sounds like mechanics behind the M&A craze of the '80s. n/t

[UpInArms]

66. bubble blowing continues: U.S. mortgage rates creep lower: Freddie Mac

http://www.marketwatch.com/news/newsfinder/pulseone.asp?guid={4F4EB9DC-BE27-4986-B86C-36A94FBE8FFC}&siteid=mktw

CHICAGO (MarketWatch) -- U.S. mortgage rates edged lower in the week ending Thursday, marking the fourth straight week of declines, Freddie Mac said. The mortgage agency (FRE) said its weekly survey showed the national average interest rate on the benchmark 30-year mortgage fell to 5.78% from 5.8% a week ago. Rates on the 15-year, five-year hybrid adjustable and one-year adjustable-rate mortgages also inched down.

[UpInArms]

68. 11:12 EST numbers and blather

Dow 10,152.32 -46.48 (-0.46%)
Nasdaq 1,920.82 -9.61 (-0.50%)
S&P 500 1,151.88 -4.50 (-0.39%)
10-Yr Bond 4.211 -0.26 (-0.61%)

NYSE Volume 663,760,000
Nasdaq Volume 647,871,000

11:00AM: Choppy trading persists as the recovery effort is short-lived... Meanwhile, aside from this morning's disappointing Q1 GDP data, investors have had another economic report to digest... Weekly jobless claims rebounded 21K higher to 320K, in line with forecasts... But even though this week's claims have knocked the 4-week average down 8K to a more encouraging 323K, as continued claims of 2.56 mln touch a new four year low, it appears investors will wait until next Friday (May 6) to get a more complete employment picture when the jobs report is released... NYSE Adv/Dec 1106/1815, Nasdaq Adv/Dec 948/1751

[ozymandius]

74. 11:23 and kinda sideways

Dow 10,158.08 -40.72 (-0.40%)
Nasdaq 1,921.79 -8.64 (-0.45%)
S&P 500 1,152.86 -3.52 (-0.30%)
10-Yr Bond 42.13 -0.24 (-0.57%)

NYSE Volume 718,376,000
Nasdaq Volume 691,213,00

[54anickel]

70. What Made the Next Depression Worse (Mises)

http://www.mises.org/story/1802

snip>

But here is a complicating factor. Since the Great Depression, governments have hardly ever permitted recessions to take their market-driven course. Instead, they tend to pile artificial booms on top of economic busts, which can lead to very odd results. The examples are all around us.

The last economic crisis we faced was five years ago. The central banks of the world began to inflate by driving interest rates down to historically low levels. Adjusted for inflation, interest rates have been negative in Japan, Europe, and the US since early 2004. This proves very attractive for borrowers, and leads to reckless lending, waves of entrepreneurial errors, and sector-specific inflation.

Contrary to conventional wisdom, we have more to fear from the political response to recession than we do to recession itself. That's because the response usually consists in pumping ever more money and credit into the economy.

snip>

The Bernanke appointment is certainly a wake up call for anyone who has a benign view of the Bush administration's economic priorities. Indeed, we might as well say that, long term, this could be the most egregious decision that the Bush administration has made.

An inflationist Keynesian and an aggressive advocate of printing-press economics, Bernanke is the sort of crank who becomes famous in history for having destroyed whole countries. He is utterly and completely dedicated to the idea that paper money will save the world, with no downside. I shudder for our future if he becomes head of the Fed. Yet this appointment is probably a pathway to Greenspan’s job, as it was for Greenspan himself.

more...

[UpInArms]

75. thanks 54anickel

that made my day :sarcasm:

:scared:

[54anickel]

80. Wanna quick look at "Chopper" Ben and Greenspin's achievements?

http://images.google.com/imgres?imgurl=&imgrefurl=http://www.idorfman.com/Charts/&h=357&w=289&sz=21&tbnid=UxRTRphicxsJ:&tbnh=116&tbnw=94&start=3&prev=/images%3Fq%3Dhelicopter%2Bmoney%26hl%3Den%26lr%3D%26sa%3DN

[UpInArms]

82. oooh! pictures!

[ozymandius]

85. Oh. My. Gods.

Better in pictures can we see how this supposed growth in the consumer spending department has been leveraged against speculative worth. No substance. Just speculation with inflated values.

[AnneD]

102. Thanks....

UIA, that validates my gut feelings as to the economy on main street... A hard rain's gonna fall.

[ozymandius]

88. Since it's Maeve Day. Here's a manufacturing employment chart.

Thank you President Stupid.

[54anickel]

92. Ahh, but those jobs were a small price to pay for those everyday low

prices.

[UpInArms]

93. Bush economic report praises 'outsourcing' jobs

http://www.post-gazette.com/pg/04041/271362.stm

Tuesday, February 10, 2004

WASHINGTON -- The movement of U.S. factory jobs and white-collar work to other countries is part of a positive transformation that will enrich the U.S. economy over time, even if it causes short-term pain and dislocation, the Bush administration said yesterday.

The embrace of foreign "outsourcing," an accelerating trend that has contributed to U.S. job losses in recent years and become an issue in the 2004 elections, is contained in the president's annual report to Congress on the health of the U.S. economy.

"Outsourcing is just a new way of doing international trade," said N. Gregory Mankiw, chairman of Bush's Council of Economic Advisors, which prepared the report. "More things are tradable than were tradable in the past. And that's a good thing."

The report, which predicts that the nation will reverse a three-year employment slide by creating 2.6 million jobs in 2004, is part of a weeklong effort by the administration to highlight signs that the recovery is picking up speed. Bush's economic stewardship has become a central issue in the presidential campaign, and the White House is eager to demonstrate that his policies are producing results.

...more...

:banghead:

[54anickel]

95. Hey, Merikuns bought that line last year - and I guess we're still

on the cusp of all becoming rich beyond our wildest dreams!

[Maeve]

104. Y'know...I'm not sure I want my name associated w/Bad News Day!

Unless it's in the "Tells Truth to Power" sense....

[ozymandius]

112. This is truth to power.

I remember when the Reagan administration was so very fond of charts. (Because charts are not subject to the Freedom of Information Act.) Charts, to them, represented very stark unassailable data. No mincing words.

These charts rain on the sunny disposition that Bush and his minions ascribe to these economic situations. Hard to spin those charts.

[ozymandius]

89. Personal expenditures vs. income mirrors that of the Federal government.

Looks like people are starting to exercise some restraint in the past two years.

[UpInArms]

71. AIG director Hoenemeyer to retire

http://www.marketwatch.com/news/story.asp?guid=%7B23696590%2D73C7%2D41DB%2D9929%2D92364105AF61%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- American International Group said Thursday that director Frank Hoenemeyer will retire, just days after the giant insurer unveiled a series of reforms to improve its corporate governance.

Hoenemeyer, former vice chairman of Prudential Insurance Company of America, was a member of several AIG (AIG: news, chart, profile) committees, including those overseeing compensation, finance and audits.

Regulators, including New York Attorney General Eliot Spitzer and the Securities and Exchange Commission, are investigating AIG's accounting and its possible use of reinsurance to manipulate its financial statements.

<snip>

AIG's star-studded board of directors, which includes former U.S. Secretary of Defense William Cohen, has been criticized by some shareholders for lacking independence and not doing enough to head off scandal before it broke. See full story.

...more...

[54anickel]

73. Model investors, Americans are not (So let's get them to put even MORE

of their retirement money into the markets)

http://www.csmonitor.com/2005/0426/p09s02-coop.html

PROVIDENCE, R.I. – Are Americans smart enough to manage their own retirement savings? No, as a matter of fact, they're not. Americans are amazingly dumb about investing.

snip>

Richard Thaler has made a career of cataloguing the blunders of amateur investors. A University of Chicago economist, Mr. Thaler ticks off the mistakes: People tend to be overconfident in their ability to pick stocks. They're unwilling to admit a mistake and make matters worse by holding on to losers. They put more money in the market as it nears its peak. When a market is rising, they think it will keep rising.

The federal government has been a model for giving workers control over their retirement accounts. Too bad federal employees haven't been model investors.


snip>

Americans may be dumb about investing. That doesn't mean they are dumb. They've just never worked at it. I'm smart enough to fly a Boeing 747, but I don't know how.

No one would ever put me behind the controls of a jumbo jet, but I can buy a stock as easily as Warren Buffett. Adding danger are the flattering words of brokers and politicians pushing private Social Security accounts. They tell us we have what it takes. History would disagree.

more...

[UpInArms]

77. Spitzer eyeing big bank lending

Data suggest Citi, J.P. Morgan charged minorities more

http://www.marketwatch.com/news/story.asp?guid=%7B0BF6657B%2D6591%2D4D0A%2DB8CC%2DF985F30C3838%7D&siteid=mktw

NEW YORK (MarketWatch) - Attorney General Eliot Spitzer has launched an investigation into the lending practices of big banks toward minorities and low-income customers, according to a person familiar with the probe.

The attorney general's office is investigating possible discriminatory practices in the interest rates and fees charged on mortgage loans, particularly "subprime" loans.

Spitzer's civil rights bureau is looking at whether minorities, the elderly and other "vulnerable groups" are being targeted by questionable lending practices. The move, which is in the early stages, comes after new federal data on home lending was released.

Subprime loans are made to borrowers with lower credit ratings because of past payment problems, high debt-to-income levels and other factors.

...more...

Lookie There! A new cause du jour for the GOP to hang their hats on!

That's the ticket! They'll go after the banks! :rofl:

[AnneD]

83. If they were really concerned.....

They would have banished the predatory lenders that sit like buzzards around a military base.

[UpInArms]

91. Spitzer Sues Intermix Over 'Spyware'

http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=8333846

WASHINGTON (Reuters) - New York Attorney General Eliot Spitzer said on Thursday he had sued software company Intermix Media Inc. (MIX.A: Quote, Profile, Research) for bundling hidden "spyware" along with million of programs it gave away for free.

The practice violates state laws that prohibit false advertising and deceptive business practices, Spitzer's office said in a press release.

Intermix stock was down more than 18 percent to $3.93 in morning trading on the American Stock Exchange.

Spitzer's office is seeking to stop Intermix from secretly installing software on users' computers, give back money it made from the process, and pay a fine.

...more...

Lookie There! Another new cause du jour for the GOP to hang their hats on!

That's the ticket! They'll go after secretive spying programs! :rofl:

[MARALE]

79. Molson Coors shares fall; volumes sag

Molson Coors (TAP: news, chart, profile) said it lost $46.5 million, or 74 cents a share, in the first three months of the year. Excluding a charge of $40.7 million related to the merger of Adolph Coors Co. with Canada's Molson Brewing completed in early February, the combined company would have lost $5.1 million.

Shares of Molson Coors traded down more than 12% lately to $67.50.

Net sales came in at $1.1 billion on volume of 8.1 million barrels of beer.

...

Canada and Europe experienced even larger sales volume declines. Globally, the company's volume fell 5.6% and revenue-per-barrel was flat.
http://www.marketwatch.com/news/story.asp?guid=%7B67015B41%2D8463%2D4885%2D95AB%2DBCEEE24012CC%7D&siteid=mktw&dist=

My huddy used to drink Coors, but when I saw that idiot on TV running for office, I got him to change to something else. I just could not let my money go to fund that guy. He did not know anything about the office he was running for. I get a little angry when I see these rich guys try and buy their way into politics when they are not really that smart. I wonder how much his bid for Congress made people stop buying the Coors name?

[Spazito]

90. As a Canadian, I used to buy Molson for guests

(am not a beer drinker myself) until Molson went with Coors. I now boycott all Molson/Coors products and I suspect many Canadians are doing the same. My boycott is about US corps that donated to bush rather than a boycott of US products in total.

[loudsue]

107. And it looks like the boycotts are WORKING! Wal-Mart, Coors....

A lot of the boycotted companies are losing $$.... :rofl:

I LOVE IT!! We'll vote with our dollars, since they took away our right to vote for our "elected" officials!

:kick:

[54anickel]

140. Mmmmm, Molson Gold was one of my favorites! But, nope don't buy

it anymore either. Dos Equis is what fills my fridge these days....
Mmmmm, and it sounds like an excellent idea. Thanks for the reminder
:toast:

[UpInArms]

81. Here come the tax cuts! (Congressional Budget)

http://news.yahoo.com/s/ap/20050428/ap_on_go_co/congress_spending

excerpt:

Overall, officials said the agreement envisioned savings of roughly $35 billion over five years from federal benefit programs. If implemented, it would mark the first time since 1997 that lawmakers have looked to this type of program for savings.

The largest single portion of the $35 billion would come from Medicaid, which provides health care for low-income Americans, officials said. Another $6.6 billion in deficit reduction would come from federal pension programs, including higher fees paid by employers. About $3 billion would come from agriculture programs.

In political maneuvering over the issue this year, Democrats have repeatedly accused Republicans of planning cuts in the program. Republicans respond that despite the anticipated curbs, overall Medicaid spending would rise annually from current levels.

<snip>

Overall, the spending plan envisions about $106 billion in tax cuts, officials said, about $70 billion of which can be protected against a filibuster.

...more...

[UpInArms]

84. Tyson Foods to pay $1.5 mln to settle SEC charges

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38470.4956695833-834736636&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- Tyson Foods Inc. (TSN) will pay the Securities and Exchange Commission $1.5 million to settle charges it misled shareholders about benefits provided to former chairman Don Tyson. Tyson himself will also pay the SEC $700,000. The commission said the company paid about $3 million in personal benefits to the former chairman, which he used to buy oriental rugs, take vacations, maintain automobiles and other activities. Tyson Foods and Don Tyson neither admitted nor denied the SEC's findings

history:

SEC Demands Full Disclosure of Executive Compensation

In August 2004, Tyson Foods reported that the SEC intends to bring a civil enforcement action against Tyson Foods and may also seek a monetary penalty. The SEC contends that Tyson Foods failed to adequately disclose approximately $1.7 million in perquisites provided to its former Senior Chairman, Don Tyson, and failed to maintain adequate internal controls over the personal use of company assets. In response, Tyson Foods reported that independent members of its board of directors were reviewing the matter.

Tyson Foods also reported that the SEC may bring cease-and-desist orders against two nonexecutive employees for failing to adequately report the perquisites and that the SEC intends to bring a similar civil enforcement action against Mr. Tyson personally.

...more...

[ozymandius]

86. Heading into lunch - redness, itching

12:02
Dow 10,135.92 -62.88 (-0.62%)
Nasdaq 1,916.72 -13.71 (-0.71%)
S&P 500 1,150.27 -6.11 (-0.53%)
10-Yr Bond 42.12 -0.25 (-0.59%)

NYSE Volume 891,041,000
Nasdaq Volume 843,210,000

[UpInArms]

87. blather

12:00PM: Market trades near session lows midday as concerns of an economic slowdown and rising inflationary pressures weigh on sentiment... Earlier, the Commerce Dept. showed that Q1 real GDP rose 3.1%, below forecasts of 3.5% and Q4 growth of 3.8%... Also upsetting investors has been a larger than expected read of 3.2% on the GDP chain deflator, which has signaled acceleration in inflation...

Meanwhile, the majority (24 of 39) of blue chips reporting Q1 earnings this morning (i.e. PG, AET, DOW, GP, NCR, K, RTN and CMCSA) have again beaten analysts' forecasts, but lower than expected Q1 earnings from ExxonMobil (XOM 56.95 -1.43) have added a sense of nervousness in the early going... Continued profit taking in crude oil prices ($50.10/bbl -$1.51) has arguably helped minimized losses across the board but has so far failed to generate the amount of excitement that yesterday's nearly 5.0% sell-off in the commodity created, as nine out of ten economic sectors have traded in negative territory... Speaking of falling oil prices and ExxonMobil's Q1 disappointment, Energy (-1.7%) continues to be the worst performing economic sector...

Other sectors under pressure, whose earnings are closely linked to economic growth, have included Materials (-0.6%), Industrials (-0.5%), Financial (-0.6%) and Technology (-0.5%)...Consumer Staples, however, have showed relative strength, getting a boost from better than expected Q1 earnings and upside FY05 guidance from Procter & Gamble (PG 55.11 +1.58)... Another bright spot in a down market has been Transportation, benefiting from falling oil prices as well as better than expected earnings from the likes of Ryder (R 37.99 +0.37), Burlington Northern (BNI 48.56 +0.99) and CSX Corp (CSX 40.02 +0.67)...

[UpInArms]

96. Beazer Homes swings to loss

http://www.marketwatch.com/news/story.asp?guid=%7B28934099-CC05-4C26-903E-1914E82B9B02%7D&siteid=google

BOSTON (MarketWatch) -- Beazer Homes USA Inc. before markets opened Thursday reported a loss of $84.3 million for the fiscal second quarter ended March 31, compared with a profit of $48.9 million last year.

The Atlanta-based homebuilder said the loss was due to a non-cash goodwill impairment charge of $130.2 million, or $3.22 a share, as well as a $45.0 million, or 69 cents a share charge associated with a class-action settlement for Trinity Homes.

...more...

background:

Beazer Homes Announces Goodwill Impairment Charge

http://investor.news.com/Engine?Account=cnet&PageName=NEWSREAD&ID=1904416&Ticker=BZH&SOURCE=20050329005818

ATLANTA--(BUSINESS WIRE)--March 29, 2005--Beazer Homes USA, Inc. (BZH - news) (www.beazer.com) and its Board of Directors have concluded that substantially all of the goodwill allocated to certain underperforming operations in Indiana, Ohio, Kentucky, and Charlotte, North Carolina is likely to be impaired. As of March 29, 2005, the affected operations had approximately $131 million of goodwill which was recorded upon the Company's acquisition of Crossmann Communities ("Crossmann") in April 2002. The Company will finalize the exact amount of such impairment and record a non-cash charge in its financial statements filed on Form 10-Q for the quarter ending March 31, 2005 after completing the testing, analysis and review of the forecasts and valuations of the affected entities with its independent third-party valuation specialist. Any non-cash impairment charges will not impact the Company's ability to generate cash flow in the future or its compliance with its debt covenants, nor are such charges tax deductible.

<snip>

While the Company remains committed to the Indiana, Ohio, Kentucky and Charlotte, North Carolina markets, they presently suffer from relatively weak local economies and severe price competition, particularly at entry level price points. The Company has put in place several strategies to broaden its target price points and to reduce its investment in and exposure to the entry level segment in these markets.

...more...

Class Action Settlement Provides for Remediation of Moisture Problems in Over 2000 Homes

http://www.cohenandmalad.com/whatsnew.htm

On October 24, the Hamilton Superior Court approved the settlement of a class action lawsuit filed by Cohen & Malad against Trinity Homes, LLC and its parent entity, Beazer Homes Investment Corp., that provides for the remediation of mold and moisture conditions in over 2000 homes constructed by Trinity in Central Indiana. The lawsuit brought claims against Trinity and Beazer based upon defective construction techniques which led to moisture intrusion and the presence of mold in many of those homes. The settlement provides for all of the homes to be inspected for evidence of moisture intrusion and for the remediation of all construction defects that lead to such conditions, all under the supervision of an independent engineering firm selected by Plaintiffs' counsel and at no cost to homeowners. Homeowners will receive a certificate attesting to the completion of the remediation work, signed by the independent engineer, as well as a new warranty on the remediation work. The remediation must be completed pursuant to a court-ordered schedule, and homeowners are entitled to a penalty of $60 per day for each day that any work on their home extends beyond the court-ordered schedule.

...more...

[UpInArms]

97. 12:44 EST numbers and blather (red paint drying)

Dow 10,138.57 -60.23 (-0.59%)
Nasdaq 1,917.20 -13.23 (-0.69%)
S&P 500 1,150.10 -6.28 (-0.54%)
10-Yr Bond 4.203 -0.34 (-0.80%)

NYSE Volume 1,042,775,000
Nasdaq Volume 971,393,000

12:30PM: Indices extend their reach into negative territory as oil prices rise back toward session highs... While the commodity remains under pressure, amid President Bush's push for alternate energy sources and yesterday's large inventory build, renewed buying interest in oil, perhaps as a result of short-covering, ($50.60/bbl -$1.01), continues to stall recovery efforts and keep the bulls on the sidelines...NYSE Adv/Dec 1056/2044, Nasdaq Adv/Dec 915/1957

[ozymandius]

99. losses increase

1:08
Dow 10,130.25 -68.55 (-0.67%)
Nasdaq 1,917.06 -13.37 (-0.69%)
S&P 500 1,149.47 -6.91 (-0.60%)
10-Yr Bond 42.09 -0.28 (-0.66%)

NYSE Volume 1,121,274,000
Nasdaq Volume 1,036,691,00

1:00PM: Indices continue to languish near their lows of the session as buying interest remains scarce across the board... One economic sector catching a bid, however, has been Consumer Staples (+0.5%)... The bulk of the buying interest has been fueled by strong Q1 earnings of $0.63 and upside FY05 EPS guidance from Procter & Gamble (PG 55.43 +1.90), coupled with an earnings surprise and dividend increase from Kellogg (K 43.69 +0.89), while other defensive names (i.e. KFT, MO) have also provided investors with solid operational leverage in a down market... NYSE Adv/Dec 1120/2004, Nasdaq Adv/Dec 969/1930

[UpInArms]

100. that's the ticket! buy food stocks!

after they're done with the energy and defense stocks and the economy tanks - buy food! everyone has to have food!

[ozymandius]

101. Stagflation: I am reminded of what the elder Bush said in '92

on the campaign trail versus Bill Clinton.

"If that man gets elected, you'll see four years of Carter 2."

I never dreamed that he could have been speaking so eloquently about his own son.

[UpInArms]

103. 1:37 EST numbers and blather

Dow 10,126.96 -71.84 (-0.70%)
Nasdaq 1,914.44 -15.99 (-0.83%)
S&P 500 1,148.71 -7.67 (-0.66%)
10-Yr Bond 4.199 -0.38 (-0.90%)

NYSE Volume 1,226,618,000
Nasdaq Volume 1,121,839,000

1:30PM: Little change in the past half hour, as the major averages continue to chalk up losses... Treasurys, however, have continued to inch higher, as the 10-year note (+7/32) trades near session highs yielding 4.19%... But while the bond market has embraced the slowing growth aspect of GDP, traders have not become too obsessive with the inflationary details, which has kept somewhat of a cap on today's action... NYSE Adv/Dec 1158/1991, Nasdaq Adv/Dec 942/1983

Look at those treasuries!

Gotta run for the day - be back much later to read the happenings :hi:

[MARALE]

105. 2:00 Here come the b@& a$$ faeries

It seems like we are treading water, surronded by sharks! These faeries need to be tough!

[ozymandius]

108. Let them try to explain these numbers - redder by the second

2:22
Dow 10,096.97 -101.83 (-1.00%)
Nasdaq 1,912.06 -18.37 (-0.95%)
S&P 500 1,146.84 -9.54 (-0.82%)
10-Yr Bond 42.01 -0.36 (-0.85%)
NYSE Volume 1,433,430,000

[ozymandius]

110. blather

2:00PM: Market rebounds some, but not enough to make a significant change in the standings, as market internals still suggest a negative tone to trading... Decliners on the NYSE hold a 20 to 11 advantage over advancers while declining issues on the Nasdaq hold a more than 2 to 1 edge over advancing issues... A 3 to 1 ratio of down to up volumes, however, indicates an even more bearish tone at both the Big Board and the Composite... Meanwhile, volume is running below yesterday's pace and below average, as total volume on the NYSE has only just recently surpassed the 1.0 bln mark...NYSE Adv/Dec 1100/2045, Nasdaq Adv/Dec 900/2047

Suggest?

[Maeve]

111. Ouch! We're going to be hearing "Stormy Weather" on NPR tonight

Marketplace will be playing the blues...

[naderzenithnow]

115. Yeah, but if it has to happen I couldn’t choose a better day.

He said he’s gonna put my social security where?

[Maeve]

123. Yeah, we all want to tell Dubya where to put....

Well, not MY SS, but you can find an appropriate ending to that line! :evilgrin:

[ozymandius]

113. start of the witching hour

3:00
Dow 10,094.32 -104.48 (-1.02%)
Nasdaq 1,909.91 -20.52 (-1.06%)
S&P 500 1,146.56 -9.82 (-0.85%)
10-Yr Bond 41.76 -0.61 (-1.44%)

NYSE Volume 1,646,340,000
Nasdaq Volume 1,476,713,000

Look at the money running to treasuries.

[ozymandius]

114. losses refuse to be contained

3:13
Dow 10,087.95 -110.85 (-1.09%)
Nasdaq 1,909.05 -21.38 (-1.11%)
S&P 500 1,145.72 -10.66 (-0.92%)
10-Yr Bond 41.70 -0.67 (-1.58%)

NYSE Volume 1,721,874,000
Nasdaq Volume 1,523,986,000

[ozymandius]

116. Ahhh... It's good to be a Republican.

Defense Contractors Report Earnings Gains

Defense Contractors Report Earnings Gains on Strong Military Spending

BOSTON (AP) -- Defense contractors Raytheon Co. and Northrop Grumman Corp. on Thursday reported sharp increases in first-quarter earnings, with Raytheon boosting its earnings outlook amid rising defense spending and President Bush urging a further increase.

"I think the climate remains positive for defense contractors," said Mary Anne Sudol, an industry analyst at Caris & Co. "There is a lot of modernization going on in the military, from new systems to upgrading of existing equipment."

However, a third contractor that reported earnings Thursday, United Defense Industries Inc., said its first-quarter profit fell 22 percent on costs from its pending acquisition by British defense contractor BAE Systems PLC and the loss of earnings from a Turkish joint venture.

Sudol said contractors are doing well in part because of President Bush's recent proposal to increase the defense budget 4 percent for the budget year beginning Oct. 1 -- a figure that does not count the tens of billions of dollars the president will request for war and reconstruction efforts in Iraq and Afghanistan.

more...

http://biz.yahoo.com/ap/050428/earns_defense_contractors.html?.v=2

[ozymandius]

118. Bargain Faeries swoop in on their crap duster.

3:23
Dow 10,102.51 -96.29 (-0.94%)
Nasdaq 1,911.44 -18.99 (-0.98%)
S&P 500 1,147.15 -9.23 (-0.80%)
10-Yr Bond 4.173% -0.06

NYSE Volume 1,780,760,000
Nasdaq Volume 1,571,912,00

[ozymandius]

120. looking for pixies

[54anickel]

141. HA-ha! Good one Ozy, "swoop in on their crap duster" - Whoopsie

Got a little too close to the crap!

[patcox2]

119. Don't complex systems tend to become very volatile before failure?

By which I mean "catastrophic failure." I am no marketeer, but isn't this kind of volatility a BAD THING? Up or down 100 points or close to it just about every day for what, two and a half weeks now?

[ozymandius]

122. In purely psychological terms:

this kind of behavior inspires neither confidence nor enthusiasm in the markets. In answer to your query: maybe. Catastrophe always catches people blind. The markets supposedly have so many safeguards as to be crash-proof. They certainly are not ratchet-proof. A ratcheting-down of value is what we are witness to as these numbers keep breaking through support.

I doubt that all of the safeguards have fail-safe devices attached to them. Since so much of the market is balanced on credit of some kind or another - a credit crunch would really sabotage significant safety guards that are supposed to protect against sudden and wildly descending values.

[spotbird]

121. Anyone noticing a pattern here? nt

[ozymandius]

124. Money rushing *here* one day and *there* the next day? n/t

[Zynx]

125. I'm actually doing very well today with P&G.

:-)

[ozymandius]

126. Brutal. Just plain brutal.

right before the close

Dow 10,072.14 -126.66 (-1.24%)
Nasdaq 1,904.64 -25.79 (-1.34%)
S&P 500 1,143.31 -13.07 (-1.13%)
10-Yr Bond 4.173% -0.06

NYSE Volume 2,083,883,000
Nasdaq Volume 1,837,550,000

[MARALE]

129. Bloody day today

I wonder what the reports will be tomorrow. If they are bad, will the market go under 10,000? Will the speech tonight invigorate the markets out of this slump? Will my weightlifting pixie with the thyroid problem be able to help?
Tune in tomorrow for "As the Market Spins"

[AnneD]

133. You can do...

only SO many reps, MARALE. Market Spin, GreenSpin, Bush Spin. One can only tolerate so much spin before :puke:
I think the fact that Bush is touting SS changes at this time is either karmic justice, or a sign from God....I can't tell which.

[54anickel]

142. I'm guessing they wanted out before Boy Blunder takes the stage tonight,

sort of like when they did't want to hold stock over the week-end, especially back in the early terra, terra, terra alert days.

Markets may have finally caught on to the Pie-hole effect.

on edit: Oops, should have read thru the rest of the thread before posting this one. I see someone already pointed that out earlier today. :blush: :hi:

[Zynx]

135. This does not even compare to the 3300 point three month swoon in 2002.

Frankly, I hope we see that again so I can buy in cheap. However, Dow 7200 will never be seen again just as Dow 800ish(I don't remember what it was) was never seen again after October 1982.

[ozymandius]

127. cartoon

[ozymandius]

128. closing numbers

Dow 10,070.37 -128.43 (-1.26%)
Nasdaq 1,904.18 -26.25 (-1.36%)
S&P 500 1,143.22 -13.16 (-1.14%)
10-Yr Bond 4.173% -0.06

NYSE Volume 2,146,932,000
Nasdaq Volume 1,860,133,000

[jus_the_facts]

130. Bush Pre-Pie Hole effect maybe....he *speaks* tonight...

:shrug:

[Zynx]

134. There is a direct correlation between Bush opening his mouth and declines.

[RawMaterials]

131. Closing Blather

Close: Broad-based selling spurred by a discouraging combination of slowing economic growth and rising inflation weighed on sentiment throughout the session as the major averages all lost more than 1.0%... Casting a shadow that loomed over the market all day was report from the Commerce Dept. that showed the economy grew at a weaker than expected 3.1% - its slowest pace in two years... Economists were looking for growth of 3.5%, versus Q4 growth of 3.8%, but many consensus estimates most likely were not revised lower to factor in yesterday's weak durable orders data...

Adding insult to injury was the chain deflator - a key inflation component of the GDP report - which climbed to 3.2%, much higher that the 2.3% rise in Q4 and well above recent trends... Meanwhile, today marked the biggest day for quarterly earnings reports... But even though the majority (24 of 39) of S&P companies out with Q1 earnings this morning (i.e. PG, AET, DOW, GP, NCR, K, RTN, CSX, R and CMCSA) beat analysts' forecasts, lower than expected Q1 earnings from ExxonMobil (XOM 56.30 -2.08) overshadowed the fact that aggregate S&P earnings growth continue to run about 5% above expectations...

And while such strong Q1 earnings gains should push the P/E on S&P operating earnings down to about 16.4, the greater risk premium now being placed on stocks due to the mixture of rising price pressures in a weak economy added a sense of uncertainty that helped all 10 economic sectors close in negative territory... A spike in crude oil futures ($51.77/bbl +$0.16) that retraced a 3.5% decline to the upside and lifted the commodity into positive territory late in the day, only weakened an already bearish sentiment...

Oil prices were weak most of the day amid President Bush's push for alternate energy sources and yesterday's large inventory build, but renewed buying interest amid reports of a tanker accident in Texas and possible short-covering only exacerbated inflation concerns... Treasurys, however, added to early gains initially prompted by the disappointing GDP data in the wake of the widespread sell-off in stocks, as the 10-year note finished up 14 ticks to yield 4.16%... But even bond yields falling to levels not seen since mid-February could not help interest-rate sensitive sectors like Financial (-1.1%) and Utility (-0.7%)...

For the second consecutive session, Energy (-2.6%) paced the way lower, exceeding yesterday's 2.2% sell-off... Materials (-1.0%) and Industrials (-1.3%) - whose earnings are closely linked to economic growth - were also under pressure... Technology (-1.2%) was also an influential leader to the downside, amid weakness in Software (-1.6%) ahead of Microsoft's (MSFT 24.45 -0.54) after the bell... Health Care was also weak, but losses were arguably minimized by modest strength in Drugs following a 15% surge in GlaxoSmithKline's (GSK 49.76 +2.35) Q1 profits...

While Consumer Staples (-0.5%) failed to hold onto gains into the close, strong Q1 earnings of $0.63 and upside FY05 EPS guidance from Procter & Gamble (PG 54.04 +0.51) as well as an earnings surprise and dividend increase from Kellogg (K 43.51 +0.71) surely minimized some of the weakness... Separately, weekly jobless claims rose 21K to 320K, matching forecasts, but with a more complete representation of employment due out one week from tomorrow, the report has garnered little fanfare in the face of the weaker than expected GDP data... NYSE Adv/Dec 1055/2191, Nasdaq Adv/Dec 838/2222

[fedsron2us]

132. The slump in the markets is no shock

The economic indicators this week from Europe, Japan and the US are all signalling that the world economy is going into reverse. Even the much touted M&A activity is unlikely to give support to stock prices given that some of the banks are having problems placing the debt to finance these deals

http://news.ft.com/cms/s/ebb06678-b783-11d9-9f22-00000e2511c8.html

One wonders how far and how fast the market is going to fall.

[Zynx]

136. Microsoft missed revenue forecast and their stock goes up afterhours.

Huh.

[Renew Deal]

139. When do we break out of this limbo?

When does it really go up or really go down? I mean, I don't see anything in the future that should set the markets off or make people confident, so when does this really move?

[Renew Deal]

143. Any ideas on how this will affect the markets tomorrow?

Here is what the futures say.

June 2005 Change Price Last updated
S&P 500† -0.20 1142.90 4/28 21:02
Fair Value 1144.15 4/28 19:07
Difference * -1.25 4/28 19:07

June 2005 Change Price Last updated
NASDAQ† -1.00 1411.50 4/28 20:31
Fair Value 1414.40 4/28 19:07
Difference * -2.90 4/28 19:07

June 2005 Change Price Last updated
DOW JONES† -2.00 10062.00 4/28 21:04

http://money.cnn.com/markets/morning_call/