STOCK MARKET WATCH, Thursday November 9

[ozymandius]

Thursday November 9, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 802 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2143 DAYS
WHERE'S OSAMA BIN-LADEN? 1849 DAYS
DAYS SINCE ENRON COLLAPSE = 1810
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 6
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON November 8, 2006

Dow... 12,176.54 +19.77 (+0.16%)
Nasdaq... 2,384.94 +9.06 (+0.38%)
S&P 500... 1,385.72 +2.88 (+0.21%)
Gold future... 618.30 -9.40 (-1.52%)
30-Year Bond 4.73% -0.03 (-0.55%)
10-Yr Bond... 4.63% -0.03 (-0.56%)






GOLD, EURO, YEN, Loonie and Silver


PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Mike Hartman

AMERICA VOTES FOR CHANGE – DOLLAR UNDER PRESSURE

The Democratic Party pulled-off some big victories yesterday to gain control of the House of Representatives, and the Senate majority awaits the results from Virginia and Montana. In pre-market trading, stock index futures were under pressure to the downside with the power split in Washington, but overall stock prices stabilized by the second hour of trading. Generally speaking, there is very little volatility in today’s trading across all asset classes including stocks, bonds, currencies, and commodities. As I write, we are now two hours into today’s session, and the Dow Industrials are lower by 0.1%, Ten-year Treasuries are higher by 0.01%, the U.S. Dollar Index is higher by 0.14%, and commodities are mixed with energy prices moving higher. The big focus for investors is to figure out which sectors will be most affected by the outcome of yesterday’s vote.

So far the biggest gainers this morning are the oil and oil services companies with the oil index higher by 1.0% and oil services higher by 1.6%. Energy companies got a boost today with the release of the weekly inventory data showing a smaller than expected build in crude inventories (expected +750,000 barrels, actual +400,000 barrels) and a bigger than expected drawdown of distillate inventories (expected -800,000 barrels, actual -2.7 million barrels). This is the fifth consecutive week of declining distillate inventories. Crude is higher by nearly a dollar to $59.90, heating oil is 2.2% higher at $1.717/gal. and unleaded gasoline is 2.4% higher at $1.56 a gallon. The only other sector flashing noticeable green at the moment is the Utility Sector with a gain of 0.5%. (Watch out for Halliburton in the energy sector as commentators expect the new Congress to subpoena Halliburton to question their no-bid contracts in Iraq.)

By far the biggest sectors getting hit lower today are drugs and healthcare, both down by 1.7%. It is widely assumed the changing of the guard will bring changes to Medicare coverage making future profits more difficult for big-pharma and healthcare companies. The airline sector is also moving lower by 2.4%, in part due to the rising fuel costs, but I’m not sure how much of the decline could be due to less government support expected to bail-out the struggling airlines. The Semiconductor and Computer Indexes are fractionally lower, but fighting to get into positive territory. In terms of volatility, I expect very little change through the balance of today’s trading as the U.S. Treasury is scheduled to auction $19 billion in three-year notes at 1:00pm today. Tomorrow they will borrow another $13 billion with the sale of ten-year notes.

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

[ozymandius]

2. Today's reports-a-plenty

8:30 AM Export Prices ex-ag. Oct
Briefing Forecast NA
Market Expects NA
Prior -0.5%

8:30 AM Import Prices ex-oil Oct
Briefing Forecast NA
Market Expects NA
Prior 0.1%

8:30 AM Initial Claims 11/04
Briefing Forecast 310K
Market Expects 318K
Prior 327K

8:30 AM Trade Balance Sep
Briefing Forecast -$65.0B
Market Expects -$66.0B
Prior -$69.9B

9:50 AM Mich Sentiment-Prel. Nov
Briefing Forecast 94.0
Market Expects 93.5
Prior 93.6

10:00 AM Wholesale Inventories Sep
Briefing Forecast 0.5%
Market Expects 0.6%
Prior 1.1%

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

[Ghost Dog]

17. US September trade gap down to $64.3bn from a record £69.9bn in August (ft) n/t

[UpInArms]

20. 8:30 reports:

U.S. Oct. imported oil prices fall 8.3% (8:30 AM ET, Nov 09, 2006 - 5 minutes ago0

U.S. export prices fall 0.4% (8:30 AM ET, Nov 09, 2006 - 5 minutes ago)

U.S. import prices off 0.1% in past year, 1st drop since '02 (8:30 AM ET, Nov 09, 2006 - 5 minutes ago)

U.S weekly continuing jobless claims up 43,000 to 2.45 mln (8:30 AM ET, Nov 09, 2006 - 5 minutes ago)

U.S. 4-week avg. initial claims down 250 to 311,250 (8:30 AM ET, Nov 09, 2006 - 5 minutes ago)

U.S. weekly initial jobless claims fall 20,000 to 208,000 (8:30 AM ET, Nov 09, 2006 - 5 minutes ago)

U.S. Oct. nonfuel import prices fall 0.1% (8:30 AM ET, Nov 09, 2006 - 5 minutes ago)

U.S. Oct. import prices fall 2.0% vs. -1.0% expected (8:30 AM ET, Nov 09, 2006 - 5 minutes ago)

U.S. Sept. trade gap with China record $23.0 bln (8:30 AM ET, Nov 09, 2006 - 5 minutes ago)

U.S. Sept. trade gap rev $69.0 bln vs $69.9 prev est (8:30 AM ET, Nov 09, 2006 - 5 minutes ago)

U.S. Sept. imports decline 2.1%, first drop in 7 months (8:30 AM ET, Nov 09, 2006 - 5 minutes ago)

U.S. Sept trade gap falls by largest amount since Dec. '04 (8:30 AM ET, Nov 09, 2006 - 10 minutes ago)

U.S. Sept. trade gap below consensus of $66.3 bln (8:30 AM ET, Nov 09, 2006 - 10 minutes ago)

U.S. Sept. trade gap narrows 6.8% to $64.3 bln (8:30 AM ET, Nov 09, 2006 - 10 minutes ago)

[UpInArms]

21. Jobless claims fall by 20,000 to 308,000

http://www.marketwatch.com/news/story/story.aspx?siteid=mktw&guid={2450B62C-4430-4110-8AA2-8AFB5A425FE6}

WASHINGTON (MarketWatch) - Initial filings for state unemployment benefits dropped back to their recent range, falling by 20,000 to 308,000, the Labor Department reported Thursday.

The four-week average of new claims -- which smoothes out one-time distortions such as weather or holidays -- slipped by 250 to 311,250.

Meanwhile, the number of people collecting unemployment benefits in the week ending Oct. 28 rose by 43,000 to 2.45 million, a seven-week high. The four-week average of continuing claims rose to 2.44 million.

The insured unemployment rate - the percentage of all those who are covered by unemployment insurance who are collecting benefits - rose to 1.9% from 1.8% previously.

The current level of initial and continuing claims is consistent with an unchanged unemployment rate and modest job growth, economists say.

...more...

[AnneD]

32. Morning Marketeers.....

:donut::donut::donut: this is a dreaded double post but you guys look like you need extra joe today.

[AnneD]

33. Morning Marketeers.....

:donut: and lurkers. Well are we all happy with those job numbers, I know I am:sarcasm:.

I know of a job that may come available soon. You have to have Nursing experience, experience in diplomacy and politics must. Experience in baby sitting required as parents frequently take hours to pick up their ill children that they shouldn't have sent in the first place. Must be able to drop everything and take care of a child in another school because the district is too cheap and insists on paying sub pay ($80 a day)to Nurses. Nursing agencies pay 30-40 per hour (so my salary is a real bargain for these guys-which is why I am giving them only 2 more years). Must be able to do repetitive work, such as teaching basic health care (boy are we so doomed if we ever DO face a pandemic). Pay is ok but don't expect to afford anything good in life like a home or college education. Be prepare to continually pay for college education out of you own pocket to keep up with you own license and carry your own malpractice insurance is a must.

I want to trade my job in for one of those model jobs that they keep basing the unemployment figures on. Must be nice work if you can get it.


Happy hunting and watch out for the bears.

[UpInArms]

23. U.S. import prices fall 2.0% in Oct. on drop in oil price

http://www.marketwatch.com/News/Story/Story.aspx?siteid=mktw&guid={B70F4A08-1658-464D-911E-968B21D15931}

WASHINGTON (MarketWatch) - Led by falling oil prices, prices of imported goods dropped 2% for the second straight month in October, matching the largest decline in three years, the Labor Department reported Thursday. With the recent declines in oil prices, import prices are down 0.1% over the past 12 months, the first year-over-year decline since September 2002. Imported petroleum prices fell 8.3% in October after a 9.7% drop in September. Import prices excluding petroleum fell 0.6% in October. Import prices excluding all fuels fell 0.1% in October, the first monthly decline since November 2005.

[54anickel]

60. University of Michigan Index Stays Near 15-Month High (Update1)

http://www.bloomberg.com/apps/news?pid=20601068&sid=arY5M8iN6XGQ&refer=economy

Nov. 9 (Bloomberg) -- Confidence among U.S. consumers stayed close to the highest level in 15 months in November, supported by cheap gasoline and an expanding labor market.

The University of Michigan's preliminary index of consumer sentiment fell to 92.3, from 93.6 in October, a level that was the highest since July 2005. Before today, the measure had averaged 88.1 since monthly data were first compiled in 1978.

High spirits may keep Americans spending, helping the economy withstand a housing slump that contributed to the slowest pace of growth in three years last quarter. Consumers are getting a boost from the least expensive gasoline since December and the lowest unemployment rate in five years.

``We feel pretty optimistic that the consumer will weather the storm'' of the housing slowdown, Ethan Harris, chief U.S. economist at Lehman Brothers Inc. in New York, said before the report. ``Consumer confidence remains fairly robust. The economy looks like it is in reasonable shape right now.''

The Michigan index was expected to be unchanged, according to the median estimate of 57 economists in a Bloomberg News survey. Forecasts ranged from 87 to 97. The index fell in six of the 10 months through October.

more...

[ozymandius]

3. Oil prices climb above $60 a barrel (election's over)

VIENNA, Austria - Oil prices rose above $60 a barrel Thursday in reaction to figures showing lower U.S. gasoline and diesel fuel inventories and to leadership changes in the U.S. Congress following midterm elections.

While prices were holding in the $58-$60 a barrel range for now, they were expected to rise as the Northern Hemisphere winter season cranks up demands on heating fuel.

Light, sweet crude for December delivery rose 40 cents to $60.23 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. December Brent crude on London's ICE Futures exchange was up 73 cents at $60.32 a barrel.

"The market is really still range-bound," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "The rise is due to a combination of the inventory report and ... some uncertainty in the U.S. due to the change in leadership in the House of Representatives."

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

[ozymandius]

4. Big oil companies a target in new Congress

WASHINGTON (Reuters) - Big oil companies will be a top target of Democratic lawmakers when they officially take over the House of Representatives early next year.

Democrats picked up enough seats in Tuesday's U.S. election to win majority control of the House and have promised to roll back billions of dollars in tax breaks and other financial incentives extended to the oil industry in energy legislation Congress passed last year.

Democratic Rep. Nancy Pelosi (news, bio, voting record), who is poised to be the next Speaker of the House when the new Congress convenes in January, says oil companies have unfairly earned record profits by gouging consumers at the gasoline pump.

Pelosi says taking away the financial relief given to Big Oil in last year's Republican-written energy law will be among the six major tasks Democrats plan to tackle in the first 100 hours after she slams the gavel to convene the new House.

http://news.yahoo.com/s/nm/20061108/bs_nm/usa_election_energy_dc_1

TAX BREAK ROLLBACK?

[WePurrsevere]

18. Good! Any idea what the 5 other major task are?

btw - I love the follow-up Toles cartoon. Thanks for posting it. :D

[Ghost Dog]

27. Ed. Dubious dial-up dupe.

[trogdor]

29. Short version: sell your large caps.

Most of the large cap funds are heavy with stocks of companies now on the hit list.

[WePurrsevere]

31. Thank you. I would think it would be like a kid in a candy shop

trying to choose out of the treasure trove of wild stuff that the Repulicans have messed up, which they were going to start with. :)

[Ghost Dog]

28. Some clues here, WePurrsevere?

John Conyers (D-MI) becomes chairman of the powerful House Judiciary Committee. His portfolio to investigate election fraud and Patriot Act abuses may result in possible impeachment articles being put forward.

John Dingell (D-MI) becomes chairman of the House Commerce Committee. His committee has oversight for energy (Cheney's secret energy task force is under the gun), telecommunications (media consolidation issues could be on the table), consumer protection, and public health.

Barney Frank (D-MA) becomes chairman of the House Financial Services Committee. Minimum wage increase on the agenda.

Charlie Rangel (D-NY) becomes chairman of the House Ways and Means Committee. Rolling back tax cuts for billionaires as well as corporate offshore tax havens will be on the agenda.

Henry Waxman (D-CA) becomes chairman of the House Government Reform Committee. He will exercise subpoena power to bring witnesses (friendly and hostile) before his committee to investigate Pentagon contract fraud (watch out Halliburton and KBR).

Ike Skelton (D-MO) becomes chairman of the House Armed Services Committee. Will also investigate Pentagon contract fraud.

Alcee Hastings (D-FL) may become chairman of the House Permanent Select Committee on Intelligence. Look for real fireworks here with former members of the US Intelligence Community being called to testify on pre-war intelligence cooking.

Neo-conservative ally Tom Lantos is slated to take over the House International Relations Committee. This is the only committee where the Bush administration will have anything close to a safe haven. Lantos was a supporter of the Iraq war.

In the Senate, the Judiciary Committee under the chairmanship of Patrick Leahy will be able to bottle up any right-wing nominations to the Supreme Court, if any should arise. Bush will be forced to submit the names of moderate consensus judges.

Joe Biden will become Chairman of the Senate Foreign Relations Committee, where Iraq will be at the top of the agenda.

Jeff Bingaman becomes Chairman of the Senate Committee on Energy and Natural Resources, where gasoline price gouging and Interior Department scandals will feature prominently.

Jay Rockefeller becomes Chairman of the Senate Select Committee on Intelligence with subpoena power on pre-war intelligence cooking. Pat Roberts, who has stonewalled for the White House, will be relegated to ranking member.

Carl Levin becomes Chairman of the Senate Armed Services Committee.

Max Baucus becomes Chairman of the powerful Senate Finance Committee.

Robert Byrd takes over as Chairman of the powerful Senate Appropriations Committee, Byrd also becomes President pro tem of the Senate, fourth in line for the White House after Speaker Nancy Pelosi and Vice President Dick Cheney.

From the not-to-be-linked-to Madsen. :-)

[ozymandius]

5. Oil prices climb on falling gas supplies

SINGAPORE - Oil prices rose slightly Thursday in reaction to figures showing lower U.S. gasoline and diesel fuel inventories and to leadership changes in the U.S. Congress following midterm elections.

While prices were holding in the $58-$60 range, they will likely rise as the Northern Hemisphere begins winter and heating fuel demands rise, analysts said.

Light, sweet crude for December delivery rose 13 cents to $59.96 a barrel in Asian midmorning electronic trading on the New York Mercantile Exchange.

http://news.yahoo.com/s/ap/20061109/ap_on_bi_ge/oil_prices_29

[54anickel]

34. How Chevron spins black gold

As Big Oil celebrates a huge victory in California, Chevron's chief technologist talks to Business 2.0 about the end of oil, new energy sources, and the $4 billion tax voters shot down.

http://money.cnn.com/2006/11/08/magazines/business2/chevron_innovators.biz2/index.htm

(Business 2.0 Magazine) -- Every oil company likes to claim it's really in the energy business. But at Chevron, chief technology officer Don Paul is seriously thinking about the day the petroleum wells run dry. The first way we'll cope, he says, is by extracting usable fuel out of tar sands, oil shale, and coal.

But fossil fuels are certainly not the future. Paul, who trained as a geophysicist at MIT and got his start at Chevron (Charts) as a researcher three decades ago, has seen multiple waves of technology transform his business. First, computers revolutionized exploration and drilling. Now, Paul argues, nanotech-fueled chemistry is about to put his company into what he calls the molecule business, where it won't refine gasoline anymore - it'll synthesize better, cleaner fuels from scratch.

Of course, any combustion fuel, no matter how cleanly created, still produces climate-changing carbon dioxide when it burns. Paul argues that being headquartered in eco-friendly California has put Chevron at the cutting edge of clean refining technology, and that the company's own R&D efforts have a better shot at getting new energy sources to market, thanks to its distribution infrastructure. Surprisingly, state voters agreed Tuesday, shooting down a proposed $4 billion oil tax. (See Oil tax defeated.)

more....

Check out the link from that page called Big Oil: Election winner or loser? http://money.cnn.com/popups/2006/news/election_sectors/index.html

[54anickel]

43. Rising costs weigh on U.S. refinery expansion plans

http://today.reuters.com/news/articlenews.aspx?type=reutersEdge&storyID=2006-11-08T185533Z_01_N08270117_RTRUKOC_0_US-ENERGY-REFINERIES-EXPANSION.xml&from=business

NEW YORK (Reuters) - Rising labor and steel costs are taking some of the shine off U.S. oil refiner plans to spend billions of dollars to expand capacity, but most announced projects will still go ahead.

U.S. oil refineries have unveiled plans to add over 1 million barrels per day of crude oil distillation capacity as well as sophisticated plants that transform low value oil products into gasoline and diesel fuel over the next four years.

The sheer number of new projects, driven in part by a tax break in a 2005 federal energy bill, is boosting the cost of new capacity additions as refiners bid up the prices for scarce labor and materials.

"Everybody is reporting some real difficulties with cost and there is a problem with cost inflation, particularly steel and labor," James Gibbs, chief executive of an independent refiner Frontier Oil Corp. (FTO.N: Quote, Profile, Research), said in a conference call with analysts on Tuesday.

Refinery construction labor is already tight as many workers are tied up rebuilding energy infrastructure on the Gulf Coast that was damaged by Hurricanes Katrina and Rita in 2005.

Investors are watching expansion costs closely, fearing a repeat of previous investment cycles when excessive capacity growth and cost blowouts hobbled some companies when returns from refining fell.

more....

Oh cry me a f'in' river. :nopity: Funny how this comes up after Pelosi says they're going to be looking at those tax breaks.

[ozymandius]

6. Macy's sales climb 6%, but profit falls in 3rd quarter

Macy's owner reported a healthy 6% rise in sales for the third quarter Wednesday, but its profit tumbled and it took a $3-million loss because of costs associated with converting 400 stores to the Macy's name in September.

Federated Department Stores Inc. of Cincinnati, which also owns Bloomingdale's and David's Bridal, said sales for the three months ended Oct. 28 were $5.8 billion, compared with $5.5 billion in the same period a year ago.

It recorded a net loss of $3 million, or 1 cent a share, compared with a profit of $436 million, or 90 cents a share, in the same quarter of 2005.

more

[ozymandius]

7. Field's costs Federated

Federated Department Stores posted a surprise third-quarter loss Wednesday due to $145 million in costs to convert Marshall Field's and 10 other regional department stores to Macy's, and gave new details about sales declines at the former Field's stores.

Federated jettisoned Marshall Field's name and reconfigured the chain as Macy's on Sept. 9, one year after it bought Field's former owner, St. Louis-based May Department Stores.

-cut-

Sales have declined at Field's and the other former May Department Stores because of fewer sales events and inadequate inventory of goods, among other reasons, Federated Chief Financial Officer Karen Hoguet told Wall Street analysts.

Hoguet cited poor sales of furniture, silverware, bedding, coffee-makers and other home furnishings; lengthy waits for merchandise that wasn't in inventory; fewer sales promotions at Macy's than at the May stores, and salespeople needing time to learn about Macy's new merchandise assortments.

http://www.suntimes.com/business/130384,cst-fin-macys09.article

[ozymandius]

8. NYSE to eliminate 17% of its workforce

NEW YORK — The company that owns the New York Stock Exchange said Wednesday that it would slash its workforce by 17%, a sign that the rise of automated trading is reducing the role of old-fashioned floor trading.

NYSE Group Inc. said it would eliminate 520 positions from its roughly 3,000-person workforce over the next five months. The announcement came a week after the exchange said it would shut down part of its famed Lower Manhattan trading floor to cut costs.

-cut-

The NYSE also is steadily embracing electronic trading to compete with domestic and international rivals that already rely on computers. The NYSE bought Archipelago Holdings Inc. this year and introduced a revamped electronic trading system last month.

-cut-

The NYSE said it was immediately eliminating the jobs of 400 employees and 120 full-time consultants. The reductions would occur entirely in its market-operations unit, with none coming from its regulatory arm, which monitors the brokerages that trade on its floor. About 150 jobs will move to the American Stock Exchange as part of a deal this month in which the NYSE bought the Amex's stake in an inter-market trading system.

more

[AnneD]

35. The definition of recession

is when your neighbor loses their job. A depression is when you lose your job. wonder what kind of Santa Claus rally we will get this year?

So howze this eCONomy working for ya now? About as well as it is going for us I bet.

[54anickel]

40. Next step - outsourcing

snip>

"When you go for-profit, you say to yourself, 'Do we need all that space, do we need all those people?' " said Michael Pagano, associate finance professor at the Villanova University School of Business.

NYSE Group is under particular pressure to keep its stock up as it seeks to buy European stock-market operator Euronext. On Wednesday, NYSE shares rose 48 cents to $82.51.

NYSE Group said last week that it would close one of its five trading rooms in the next 18 months because of improvements in technology and automaton. Some observers think further reductions in trading space and employee headcount will follow.

[ozymandius]

9. UnitedHealth's Options Just Got Messier

UnitedHealth Group (UNH) faces a whopper of a bill from backdated stock options. It's also hoping to renew favor with investors by repricing options for several executives and bringing new leaders into its executive suite.

Less than a month after ousting its CEO over the options scandal, the suburban Minneapolis health insurer told investors Nov. 8 that it expects to take "significantly greater" charges than the $286 million it had previously predicted. The company also said its financial statements for the past dozen years are suspect and shouldn't be relied on, pending restatements. The reviews also will cause the company to delay filing its third-quarter report with the Securities & Exchange Commission.

-cut-

Widespread Restatements

Hemsley replaces company founder and current CEO, Dr. William McGuire, who will have the exercise prices reset for all of his options with recorded grant dates between 1994 and 2002. McGuire resigned as board chairman on Oct. 15 after an external review found that many of his stock options were most likely backdated (see BusinessWeek.com, 10/16/06, "Hard Times for UnitedHealth").

http://www.businessweek.com/investor/content/nov2006/pi20061109_249190.htm?chan=top+news_top+news+index_businessweek+exclusives

[Ghost Dog]

10. Japanese Stocks Drop; Dollar Up vs. Yen

http://asia.news.yahoo.com/061109/ap/d8l9emd80.html

Japanese stocks slipped Thursday, hurt by declines in bank and real estate stocks amid concerns about a possible lull in the economy. The dollar rose against the yen.

The Nikkei 225 index fell 17.17 points, or 0.11 percent, to finish at 16,198.57 points on the Tokyo Stock Exchange. The index fell 177.67 points, or 1.08 percent, Wednesday.

Stocks initially were mixed as traders shrugged off gains in New York Wednesday with the Dow Jones industrials reaching another record. But the Tokyo market dropped in afternoon trading.

Some players appear to be losing some confidence in Japan's economic recovery, traders said. The government said Wednesday that September leading indictors fell below 50.0 boom-or-bust line for the third month in a row.

...

The broader Topix index, which includes all shares on the exchange's first section, shed 8.44 points, or 0.53 percent, to 1,589.06 points.

In currencies, the U.S. dollar was trading at 117.90 yen on the Tokyo foreign exchange market at 3 p.m. Thursday, up from 117.73 yen from late Wednesday in New York. The euro fell to $1.2764 from $1.2773.

The yield on Japan's 10-year government bond fell to 1.6950 percent from Wednesday's finish of 1.7200 percent. Its price rose to 100.88 from 100.67.

/...

[Ghost Dog]

15. Key 10-year Japanese gov't bond yield falls to 1-month low

http://asia.news.yahoo.com/061109/kyodo/d8l9e2600.html

(Kyodo) _ The yield on the benchmark 10-year Japanese government bond ended Thursday at a one-month low amid expectations that Japan's July-September gross domestic product data may turn out poor next week.

In interdealer trading, the yield on the No. 283 1.8 percent issue lost 0.020 percentage point from Wednesday's close to end the day at 1.700 percent, matching the closing yield on Oct. 6.

The price of the key December futures contract for 10-year bonds rose 0.22 point to 134.59 on the Tokyo Stock Exchange, with the yield down 0.020 percentage point to 1.887 percent.

/.

[Ghost Dog]

16. Dollar hovers in upper-117 yen range ahead of U.S. trade data

http://asia.news.yahoo.com/061109/kyodo/d8l9ecvg0.html

(Kyodo) _ The U.S. dollar hovered in the upper 117 yen range Thursday in Tokyo for lack of major trading incentives, with many market players retreating to the sidelines ahead of U.S. September trade data due out later in the day.

At 5 p.m., the dollar was quoted at 117.77-79 yen, compared with Wednesday's 5 p.m. quotes of 117.80-90 yen in New York and 117.65-68 yen in Tokyo.

It moved between 117.76 yen and 117.99 yen in the day, trading most frequently at 117.87 yen.

The euro was quoted at $1.2785-2787 and 150.57-61 yen, against Wednesday's 5 p.m. quotes of $1.2752-2762 and 150.28-38 yen in New York and $1.2771-2774 and 150.28-32 yen in Tokyo.

The dollar was trapped in a tight range in the upper 117 yen level throughout the day amid a dearth of major news and as players waited for the release of U.S. trade data, dealers said.

"Since it is widely believed that the U.S. trade deficit narrowed in September due to falling crude oil prices, players are keeping their eye on how much it shrank," said Yuichiro Harada, senior vice president of the forex division of Mizuho Corporate Bank.

Some dealers said the main market theme remains interest rate differentials between Japan, the European Union and the United States and that even if the data turns out to be good, it will not have much impact on the market.

/...

[Ghost Dog]

47. Yen Reflected Weakness Against Other Major Currencies During Thursday Morning Trading In NY

(RTTNews) - The yen reflected weakness against the other major currencies during Thursday morning trading in New York. The yen lost ground versus the greenback, Euro, franc and pound. Movement in the yen took place amid release of Japan's economy watchers survey and the machine tool orders.

The yen lost ground versus the greenback during morning trading in New York. The pair was range-bound until 5:00 am ET when the yen drifted down against the U.S. currency. The yen fell at 8:30 am ET after the release of the U.S. trade balance report and import price index. As of 9:40 am ET, the U.S. dollar was worth 118.38 yen.

The Japanese currency weakened against the British pound during morning trading in New York. The yen trended downward versus the pound at 4:30 am ET following the release of Great Britain's visible trade balance report. The yen reversed its losses and jumped at 7:00 am ET after the Bank of England released its rate decision. The pair immediately entered a range. As of 9:40 am ET, the British pound was worth 224.84 yen.

Against the Euro, the yen showed weakness during morning trading in New York. The Japanese currency consistently drifted down versus the Euro throughout the morning. Around 8:30 am ET, the yen reached its lowest point against the Euro in years at 151.34. As of 9:40 am ET, the Euro was worth 151.25 yen.

The Japanese currency moved down versus the Swiss franc during morning trading in New York. The yen trended downward against the franc throughout most of the morning. At 8:30 am ET, the yen fell to its lowest level against the franc since late 1998 at 94.79. As of 9:40 am ET, the Swiss franc was worth 94.69 yen.

/.

[Ghost Dog]

11. China shares end up 1.6 pct on banks, property

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061109:MTFH40322_2006-11-09_09-11-39_SHA346130&type=comktNews&rpc=44

SHANGHAI, Nov 9 (Reuters) - Chinese shares ended up 1.59 percent at a new five-year high on Thursday, with banks and property stocks strong on the back of the yuan hitting fresh post-revaluation highs.

The benchmark Shanghai composite index <.SSEC> was up only 0.35 percent at midday but rose sharply in the afternoon to finish at 1,896.482 points, after touching an intra-day peak of 1,899.097, the highest level since late August 2001.

Turnover in Shanghai A-shares was an active 25.4 billion yuan ($3.2 billion), up from 21.8 billion yuan on Wednesday.

The yuan <CNY=CFXS> hit another post-revaluation high of 7.8649 against the dollar on Thursday. This, combined with China's record October trade surplus announced late on Wednesday and the U.S. election results, brought the yuan appreciation theme back into play.

/...

[Ghost Dog]

14. Emerging Asia FX-Taking a breather, portfolio flows slow

http://asia.news.yahoo.com/061109/3/2slug.html

SINGAPORE, Nov 9 (Reuters) - Most Asian currencies weakened moderately against the dollar on Thursday as investors took profits from this week's rallies and portfolio inflows slowed to a trickle.

Still, analysts said the rally had merely paused. "The big picture story hasn't really changed," said Shahab Jalinoos, ABN AMRO Bank's currency strategist. "It is more a technical correction than a trend change," he said, adding there were expectations the dollar would lose ground to the euro towards the year end and that would boost Asian currencies.

The Taiwan dollar fell 0.3 percent to 32.87 per U.S. dollar from Wednesday's seven-week high, while the South Korean won was changing hands at 936 per dollar, retreating from a six-month high struck a day earlier.

Data showed foreigners were net sellers of Korean stocks. They bought a net $3 million in Taiwan stocks, a fraction of the $582 million invested so far this month.

...

While many strategists expect a rally in Asian currencies towards the end of the year, they are also worried about the outlook for the U.S. economy and the extent of the slowdown. "If the uncertainty becomes less significant towards the year-end, there is room for Asian currencies to rally," Wang said.

The Singapore dollar was trading between 1.5608 and 1.5645 against the dollar, easing from Wednesday's intraday high of 1.5594. Some analysts estimated the Singapore dollar was near the top of the Monetary Authority of Singapore's undisclosed policy band, which is based on the value of a trade-weighted basket of currencies.

/...

[Ghost Dog]

39. Democrats’ surge in US puts (Indian) IT, BPO firms on edge

http://www.financialexpress.com/fe_full_story.php?content_id=145960

The Democrats’ win is of concern to India’s IT-ITES sector since the backlash in the US was originally started by Democrats during the 2004 Presidential elections. In October, 2006 mid-term polls, many senators like Sherrod Brown in Ohio and Bob Casey in Pennysylvania won their seats on the back of anti-outsourcing rhetoric.

Currently, the US contributes about 67% of all IT-ITeS export revenue, which may fall if legislations against outsourcing are introduced in the US.

IT and BPO companies in India are keeping their fingers crossed fearing that Democrats may bring legislations preventing outsourcing of federal work as they did during 2004 Presidential elections.

“The idea of using taxpayer dollars to send entry-level service jobs overseas to administer a programme aimed at finding domestic entry-level service jobs for welfare recipients makes no sense,” John Kerry had said. Democrats proposed to ‘end every single tax credit that gives corporations breaks for moving jobs offshore’ and ‘stop giving government contracts to corporations breaking the rules’.

/..

[Ghost Dog]

44. Widespread crime, graft cripple Afghan economy

http://www.kuwaittimes.net/analysis.asp?dismode=article&artid=221352850

Ask any businessman what the main areas of economic growth are in Afghanistan these days and he's likely to list three endeavours: cell phones, soft drinks and kidnapping.

At a time when the government is desperately attempting to lure foreign investors to help restore the country's shattered economy, crime and corruption continue serve as major obstacles to economic development. Kidnappings in particular have soared in recent months, leading many to avoid investing in business in the country. "We paid $1 million for the life of my cousin," said a local businessman, who asked not to be identified because of security concerns.

He said his cousin was abducted in Kabul and held for over a month. The kidnappers initially demanded $2m and sent the victim's family videotapes of their hostage being tortured. "We did not pay right away - we tried to find other ways of freeing him," the businessman said. "We asked for help from the government, but although the interior minister tried his best, he was unable to assist us. In the end we handed over $1 million." His cousin was eventually freed.

"The businessmen have legitimate concerns," concedes Hamidullah Farooqi, chief executive officer of the Afghanistan International Chamber of Commerce. "Lack of security is the biggest challenge that businessmen and investors face today," he said. "The current situation is intolerable for short-term investors; long-term investors are held back by high-level corruption as well as security." Farooqi said he believes the situation is worse than at any time since the Taleban were overthrown nearly five years ago.

/read on...

[Ghost Dog]

46. Palestinian economy to shrink 15pc

http://www.tradearabia.com/tanews/newsdetails_snECO_article114133_cnt.html

(Beirut) The Palestinian economy is expected to shrink by at least 15 per cent this year and will not recover unless "an economic siege" of the Hamas-led government is lifted, the head of the Palestine Monetary Authority said.

George Abed said that with the state sector "virtually paralysed", private companies were struggling to make money.

Since Hamas came to power in March, Western donors have cut direct aid to the Palestinian Authority over the Islamist movement's refusal to recognise Israel, renounce violence and accept past peace deals.

At the same time Israel has tightened access to the Gaza Strip and withheld customs and tax receipts worth $55-$60 million a month. Hamas accuses Israel and the United States of trying to topple its administration.

"Growth in 2005 was about 6 per cent in real terms. Then in 2006, because of the economic siege GDP (gross domestic product) has declined by 15-18 percent ... in the first nine months of the year," Abed said late on Wednesday in an interview on the sidelines of a banking conference in Beirut.

"This year I think we will be down probably around 15 percent. I don't expect any major changes between now and the end of the year.

"Without a political solution that lifts the siege there is no way that the Palestinian economy can recover."

/...

[54anickel]

51. Isn't that the "starve 'em out" policy? Get the locals so desperate and

pissed off that they "throw the bums out". Worked so well on Saddam. :eyes: When that doesn't work, "blow 'em back to the stone age". Isn't that Kissinger's thought pattern?

"Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world. " - Henry Kissinger

“Military men are just dumb stupid animals to be used as pawns in foreign policy.” - Henry Kissinger

"Today, America would be outraged if U.N. troops entered Los Angeles to restore order. Tomorrow they will be grateful! This is especially true if they were told that there were an outside threat from beyond, whether real or promulgated, that threatened our very existence...It is then that all peoples of the world will plead to deliver them from this evil. The on thing every man fears is the unknown.When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well being granted to them by the World Government." - Henry Kissinger


I hear Hank's been spending quite a bit of time with the Dimson. http://www.washingtonpost.com/wp-dyn/content/article/2006/09/29/AR2006092900380.html

[Ghost Dog]

68. The more 'civilised 'international community'

as represented in the UN and Non-Aligned Movement fora, for example, insist that Israel must depart from the occupied territories (better one way (political/diplomatic) than the other (jihad)).

Damnit, here/there in Europe I can't very easily even boycot Israeli fruit & veg exports, in case by the remotest chace they are actually Palestinian products (labelled, under current rules), 'Produce of Israel'.

:off rant:

[54anickel]

50. Zakhailwal sounds like he gets his talking points from Dimson

snip>

Zakhailwal discounts concerns over the rash of kidnapping. "This happens even in the most developed nations, like New York, London and Paris," he said. "It does not create an obstacle to investment."

snip>

But even some within Karzai's government question the level of commitment. "We have been trying to combat corruption, but so far to little effect," said Mohammad Azim Wardak, director of foreign trade at the trade ministry. Zakhailwal insists that the country's best days are right around the corner. "I am confident that the future of Afghanistan is very bright, that there will be security and stability and that it will not always be like it is today," he said.

[Ghost Dog]

12. FTSE briefly at 5-1/2 yr high on bid talk, BoE caps

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061109:MTFH40595_2006-11-09_09-21-48_L09367585&type=comktNews&rpc=44

LONDON, Nov 9 (Reuters) - Britain's FTSE 100 .FTSE index nudged up briefly to its highest level since February 2001 in early trading on Thursday, helped by an expected bid for energy company Scottish Power (SPW.L: Quote, Profile, Research) but wary of a widely anticipated Bank of England interest rate rise at midday.

Utilities dominated the upside for the second day in a row amid the bid speculation surrounding Scottish Power, which was up 4.3 percent as Spanish power group Iberdrola (IBE.MC: Quote, Profile, Research) said it was studying a bid for Britain's fifth-largest energy supplier.

But early FTSE gains were fleeting as traders expect the Bank of England to announce a quarter-point rise in its key interest rates to 5.0 percent at 1200 GMT. By 0855 GMT, the FTSE 100 was little changed -- down 3.1 points, or 0.04 percent, at 6,235.9. It set a new 5-1/2 year high of 6,250.4.

"Everyone expects the Bank of England to move to 5 percent ... but with all these bids going on, the market is not going to go too far down," said Lawrence Peterman, investment director at Eden Financial.

/...

[Ghost Dog]

13. M&A, earnings nudge European stocks higher

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2006-11-09T081258Z_01_L09854275_RTRIDST_0_MARKETS-EUROPE-STOCKS-URGENT.XML

LONDON, Nov 09 (Reuters) - European stocks ticked higher at the start of Thursday trade, boosted by a flurry of corporate earnings and merger activity, while oil stocks gained after crude clawed back to $60 a barrel.

By 0806 GMT, the pan-European FTSEurofirst index <.FTEU3> of 300 leading shares was up 0.1 percent at 1,471.4 points.

Across Europe, the FTSE .FTSE rose 0.1 percent, while Germany's DAX <.GDAXI> and France's CAC 40 <.FCHI> also nudged 0.1 percent higher.

Among major movers, Sampo (SAMAS.HE: Quote, Profile, Research) rallied 10 percent after Denmark's biggest financial group, Danske Bank (DANSKE.CO: Quote, Profile, Research), paid 30.1 billion Danish crowns ($5.16 billion) in cash for its Sampo Bank unit.

/...

[Ghost Dog]

25. Europe turns lower as banks and miners weigh

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39030.3169791667-884335894&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

European equity markets slipped on Thursday as losses in the banking and mining sectors offset a number of strong earnings.

Leading the pack on the FTSE Eurofirst 300 was Sampo, the Finnish financial services group, after it agreed to sell its banking division Sampo Bank to Denmark’s Danske Bank for DKr30.1bn. Sampo shares were up 8.2 per cent to €19.15. Danske, which plans an equity issue to raise up to DKr14bn, fell 4.9 per cent to DKr250.50.

By midday, the FTSE Eurofirst 300 was down 0.1 per cent to 1,467.79, while Frankfurt’s Xetra Dax was flat at 6,348.63 and the CAC 40 in Paris added 0.1 per cent to 5,438.83. London’s FTSE 100 fell 0.4 per cent to 6,216.7.

/.

[Ghost Dog]

70. Europe dragged lower by US economic data

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39030.5137268519-884356422&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

European equity markets weakened on Thursday after mixed economic data from the US offset strong earnings and heavy takeover activity in the banking sector. Two US economic reports showed an unexpected dip in consumer sentiment and an above-forecast increase in wholesale inventories, rekindling worries about the world’s largest economy.

Sampo led the European gainers. The Finnish financial services group leapt 7.8 per cent to €19.08 after it agreed to sell its banking division Sampo Bank to Denmark’s Danske Bank for DKr30.1bn ($5.2bn) in cash. The sale will leave Sampo to focus on its insurance operations. Sampo’s chief executive denied plans to acquire Norway’s Storebrand, and its shares fell 0.1 per cent to NKr77.8. Danske shares fell 4 per cent to DKr252.50 after analysts said the Sampo Bank price was too high. Danske said it plans to raise up to DKr14bn to help finance the purchase, and it expected regulators to approve the deal in the first quarter of 2007.

The FTSE Eurofirst 300 fell 0.2 per cent to 1467.27. Frankfurt and Paris firmed after early losses. The Xetra Dax and the CAC 40 both rose 0.2 per cent to 6,358.68 and 5,448.60 respectively. London’s FTSE 100 fell 0.1 per cent to 6231.5.

/.

[Ghost Dog]

19. FTSE slips as drug stocks weigh

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39030.3471064815-884339627&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

London equities markets slipped back on Thursday as the Bank of England raised interest rates. The BoE hiked base rates from 4.75 per cent to 5 per cent, the highest level for five years. The FTSE 100 index was down 22.8 points at 6,216.2, from a five-year high in the previous session, while the mid-cap FTSE 250, which has hit a series of all-time highs of late, was broadly flat at 10,570.0.

Pharmaceutical stocks were among the leading fallers amid fears that the victory for the Democrats in the US mid-term elections would hit the sector. “Speaker-elect of the House, Nancy Pelosi, has said Democrats will introduce legislation allowing direct governmental negotiation of drug prices for Medicare recipients in the first 100 hours of the 110th Congress,” said Mike Ward, at Nomura Code Securities. “Democrats also support better availability and access to generics (and biogenerics), easier reimportation of prescription pharmaceuticals from overseas and stricter oversight of the FDA, Centres for Medicare and Medicaid Services and the National Institutes of Health,” he added. GlaxoSmithKline lost 1.4 per cent to £13.84.

Mining stocks were also sharply weaker, with Xstrata off 2.4 per cent to £23.41.

/,

[Ghost Dog]

22. UK trade gap narrows in September

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39030.2770486111-884331623&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

The UK’s visible trade gap narrowed slightly in September and the volume of trade shrank sharply as the authorities got to grips with VAT fraud, data released on Thursday showed. The Office for National Statistics said that Britain’s trade in goods was in the red by £6.6bn, less than the £6.9bn deficit recorded in August. With trade in services for September showing a surplus of £2.5bn, the total balance of trade deficit was £4.1bn, down from the upwardly revised £4.5bn the previous month.

However, the ONS once again warned that the impact of VAT missing trader fraud would “make interpretation of the short term movements difficult.” ‘Missing trader’ or MTIC fraud, is a complex VAT scam involving cross-border sales of high value products such as mobile phones and computer chips. Fraudsters collect VAT refunds but disappear before paying the tax they owe to the government. HM Revenues and Customs has reallocated plenty of resources to combat the crime and it appears to be paying off. The reduction in fraudulent trade was the main cause of a 17 per cent fall in exports and a 13 per cent drop in imports, said the ONS. Exports and imports to France - was a favoured conduit for MTIC fraud and the clampdown saw exports and imports to the Republic- fell by £2.6bn in September. The value of MTIC fraud in September remained about £1bn said the ONS, though this is a sharp improvement on the £4.5bn seen as recently as June.

/.

[Ghost Dog]

24. UK interest rates hit 5 per cent

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39030.2920023148-884332538&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

Interest rates hit 5 per cent and the highest level in five years after the Bank of England on Thursday raised the cost of borrowing in an attempt to curtail inflation ...The 0.25 percentage point increase was widely expected by the City.

...

Investors’ attention will now turn to the prospects for any further increases in the cost of borrowing, with a growing number of commentators forecasting the MPC may move rates up by a similar amount in February. The need for such a rise may depend a lot on the round of New Year pay negotiations. The Bank has made clear it is wary of burgeoning wage inflation and should it perceive settlements to be overly robust it may add to the pressure to tighten policy again. However, for now the Bank has shown itself sufficiently concerned about the current prospects for inflation over the coming months for it to have taken interest rates to their highest level since the September 11 attacks. Implicit in the MPC’s most recent forecasts for the economy was the need for further monetary tightening in order to push inflation back down to its 2 per cent target.

/..

[Ghost Dog]

26. (UK) House price inflation accelerates

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39030.2387615741-884328939&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

UK house prices rose in October at their fastest pace in seven months but the market looks set to cool over the winter, Halifax said on Thursday. In its latest survey of the residential property market, the mortgage lender said the average price of a home was £184,593 last month, an increase of 1.7 per cent from September. This pushed up annual house price inflation from 8 per cent to 8.6 per cent, well above the 5 per cent growth that both the Halifax and its rival lender Nationwide forecast for the whole of 2006.

...

Although house prices are not directly targeted by the Bank of England in its quest to contain inflation, the central bank’s rate setting body has made it clear it is wary of an over-exuberant property market, partly because this can encourage further consumption. The Bank will also be aware that an extended run of above average house price gains may increase the chances of a subsequent crash and that such an outcome can complicate monetary policymaking.

/..

[Ghost Dog]

71. London lower as merger talk offset by weak pharmas

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39030.5357291667-884357850&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

London equities pared losses by the close of trade on Thursday but fell on weakness in banks and pharmaceutical stocks.

AstraZeneca shares, down 2.8 per cent to £30.75 and GlaxoSmithKline, off 1.3 per cent to £13.86, lost ground amid fears that the pharmaceutical industry could be hit by reforms to the US Medicare system.

Following this week’s victory for the Democrats in the mid-term elections, Nancy Pelosi, speaker-elect of the House of Representative, has pledged to introduce legislation in the first 100 hours of a new Congress to allow direct governmental negotiation of drug prices for recipients of Medicare.

Mining stocks also fell back as metals prices spend most of the day in negative territory. Xstrata lost 1.9 per cent to £23.54.

The day’s biggest gainer was ITV as cable group NTL confirmed it had approached the commericial broadcaster about a merger. ITV jumped 6.2 per cent to 112p.

In the wider market, the FTSE 100 fell 7.5 points, or 0.1 per cent, to 6,231.5 while the FTSE 250 gained 28.6 points, or 0.3 per cent, to another all-time high of 10,590.9.

/.

Ed. As you see: actually only some of the biggest (FTSE100) blue chips lower. The more general market in London: even higher (what are they smokin'?).

[54anickel]

30. Gold Rises in London as Inflation May Spur Investment Demand

http://www.bloomberg.com/apps/news?pid=20601012&sid=aA1kVoWQokFE&refer=commodities

Nov. 9 (Bloomberg) -- Gold rose in London on speculation rising raw-material costs may renew investor demand for the metal as a hedge against inflation.

The 24-member Goldman Sachs Commodity Index has increased 3.4 percent this month, and copper, crude oil, coffee and sugar extended gains today. The pound and euro rose against the dollar today on forecasts for higher interest rates in Europe to curb escalating prices.

``Inflationary pressures will be supportive for gold'' into next year, said Martin Squires, an analyst at JPMorgan Chase & Co. in London. ``Gold has put in its low for now.''

Gold for immediate delivery rose $2.30, or 0.4 percent, to $618.10 an ounce at 10:05 a.m. in London. The price dropped 1.4 percent yesterday, the biggest decline in two weeks.

snip>

Investor demand for gold through funds listed in New York, London, Melbourne and Johannesburg climbed today to 16.68 million ounces from 16.5 million ounces yesterday, according to the Exchange Traded Gold Web site. The funds allow investors to buy gold through a stock without purchasing the metal or futures contracts. Every new share bought requires the fund to purchase gold in the open market and deposit the bullion in vaults of banks such as HSBC Holdings Plc, JPMorgan Chase and Bank of Nova Scotia.

``We certainly have seen for the last couple of days a lot of interest in the products,'' said Owen Rees, a marketing adviser to the Lyxor Gold Bullion Securities fund listed on the London Stock Exchange.

more...

[54anickel]

38. Gold May Reach $850 an Ounce `Within Two Years,' GoldCorp Says

http://www.bloomberg.com/apps/news?pid=20601012&sid=alWJsnxlqE2c&refer=commodities

Nov. 9 (Bloomberg) -- Gold may reach $850 an ounce ``within two years,'' on investors' expectations the dollar will decline against currencies such as the euro, GoldCorp Inc. Chief Executive Officer Ian Telfer said.

Gold for immediate delivery rose $2.10, or 0.3 percent, to $617.90 an ounce as of 10:44 a.m. in London. Prices reached a record $850 in January 1980.

``The dollar is more likely to go down than up,'' Telfer told the RBC Capital Market gold conference in London today. ``Gold will be a beneficiary in all currencies.''

GoldCorp on Nov. 4 said it completed the acquisition of Glamis Gold Ltd., a transaction valued at $7.63 billion, creating the world's third-largest gold company in terms of market value.

[54anickel]

36. Euro Gains to Record Against Yen, Climbs Versus Dollar on Rates

http://www.bloomberg.com/apps/news?pid=20601083&sid=a0aDfny7U1Mk&refer=currency

Nov. 9 (Bloomberg) -- The euro advanced to a record against the yen and rose versus the dollar on speculation the European Central Bank will increase interest rates to damp inflation.

European two-year government bond yields, amongst those securities most sensitive to changes in rates, today rose above 10-year yields for the first time in more than six years. The euro rose against all bar three of the 16 most active currencies Bloomberg tracks after ECB President Jean-Claude Trichet told the Financial Times policy makers should address money supply growth.

``The ECB will follow a relatively hawkish stance on monetary policy,'' said Simon Derrick, chief currency strategist at the Bank of New York in London. ``Economic policy is going to be tight and that's driving up the euro.''

The euro reached 150.81 yen, an all-time high, and was trading at 150.76 yen as of 11:01 a.m. in London, from 150.34 late in New York yesterday. It traded at $1.2785 from $1.2757.

The currency may reach $1.30 by year-end, Derrick said.

Monetary policy without any input from money-supply data would be ``incomplete in some important respects,'' Trichet said, the Financial Times reported today.

Money supply in the dozen euro nations is growing at its fastest pace in three years.

more....

Hey Tichet, you don't need no stinkin' M3 figures!!! Greenspin told me so.

[54anickel]

37. Bernanke's Inflation Target May Encounter Democratic Opposition

http://www.bloomberg.com/apps/news?pid=20601103&sid=a2v0mJbG_LAE&refer=us

Nov. 9 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke may find it harder to establish an inflation target now that Democrats have control of Congress.

Rhode Island Senator Jack Reed, Massachusetts Representative Barney Frank and other Democrats prefer that the Fed focus on promoting growth as well as containing inflation. Some legislators advocate that the Fed adopt a target for employment as well as prices -- anathema to Bernanke and others at the central bank.

``The Democrats will give Bernanke a tougher time than the Republicans on inflation targets,'' said Tom Gallagher, a senior managing director at International Strategy & Investment Group in Washington. ``Support is going to be harder to come by.''

Bernanke has argued that a target would help cement the Fed's credibility as an inflation-fighter and make it easier to manage the economy. If he's unable to press ahead, supporters say, those aims might be damaged.

``Both the Fed's political legitimacy and its ability to respond flexibly to shocks to the economy'' would be impaired, said Adam Posen, a senior fellow at the Peterson Institute for International Economics in Washington and a former Fed official who co-wrote a 1999 book on inflation targeting with Bernanke.

Bernanke's idea already faced opposition within the Fed, and former officials said before the Nov. 7 election that adoption of an inflation target was likely to be a gradual process. Vice Chairman Donald Kohn declared himself ``an inflation-targeting skeptic'' in 2003.

more...

[ozymandius]

41. 10:20 update

Dow 12,140.28 Down 36.26 (0.30%)
Nasdaq 2,390.69 Up 5.75 (0.24%)
S&P 500 1,383.85 Down 1.87 (0.13%)
10-Yr Bond 4.637% Up 0.004
NYSE Volume 525,060,000
Nasdaq Volume 547,690,000

10:00 am : Not much has changed since the last update as the major averages still trade in split fashion. That's not surprising, though, since market leadership is almost entirely being driven by a 1.3% in surge in the heavily-weighted Technology sector (e.g. CSCO +7.6%). After all, there are only three sectors trading higher, with the other two -- Energy and Materials -- among the least influential on the S&P 500. Of the seven sectors under pressure, Health Care is pacing the way lower again as investors remain uncertain as to what ramifications a Democratic-controlled Congress will have on drug prices. To wit, Pharmaceuticals is among today's ten worst performing S&P industry groups. ..DRG -0.8%.DJ30 -2.52 NASDAQ +12.47 SP500 +1.77 NASDAQ Dec/Adv/Vol 1144/1212/266 mln NYSE Dec/Adv/Vol 1167/1081/94 mln

[54anickel]

42. Lawmakers will meet on power deregulation (Texas)

http://www.chron.com/disp/story.mpl/business/4321435.html

Two Texas legislative committees will hear from electri- city retailers, regulators and others Thursday on the current state of power deregulation.

The Senate Business and Commerce Committee and the House Regulated Industries Committee will hold the joint hearing in Austin at 1 p.m.

Texas Public Utility Commission Chairman Paul Hudson is expected to speak, along with representatives from the three largest power retailers in the state — TXU Energy, Reliant Energy and Direct Energy — and consumer advocates.

snip>

The chairman of the House committee, state Rep. Phil King, R-Weatherford, warned industry leaders at a conference in October that if they didn't drop prices, legislators might do it for them.

bit more...

[AnneD]

57. All I know is that my

electricity bill was a few bucks shy of my rent payment. The first time that has ever happened. And we live in a small one bed room and we were still sweating. Folks are very angry about that here in Texas. We can deal with the winter, but the summers are hell on Earth.

[54anickel]

45. Oversight Of Fannie, Freddie Tightened

http://www.washingtonpost.com/wp-dyn/content/article/2006/11/08/AR2006110802198.html

The chief regulator of Fannie Mae and Freddie Mac yesterday tightened its rules for overseeing the accounting, executive compensation and corporate governance practices at the two mortgage finance giants.

The Office of Federal Housing Enterprise Oversight said the changes, part of a series of "guidances" for its examiners, were intended to address problems the agency uncovered during its investigations into accounting problems at the two companies.

In May, Fannie Mae, of the District, agreed to pay $400 million to settle charges that it misstated its earnings by $10.6 billion to trigger millions of dollars in bonuses for top executives. In 2003, Freddie Mac, of McLean, agreed to pay $125 million to settle charges that it misstated earnings by nearly $5 billion. The scandals led to the ouster of top executives, including Franklin D. Raines as Fannie Mae chief executive and Leland C. Brendsel as Freddie Mac chief executive.

Fannie Mae and Freddie Mac, the nation's two largest sources of mortgage money, keep funds flowing to the housing market by buying mortgages from banks and other lenders.

The guidance issued yesterday was effective immediately because it is considered a detailed elaboration on existing regulations and does not require a public comment and notice period.

more...

[54anickel]

61. Faulty accounting costs Fannie Mae another $850m

http://www.boston.com/business/globe/articles/2006/11/09/faulty_accounting_costs_fannie_mae_another_850m/

WASHINGTON -- Fannie Mae, the largest U S mortgage finance company, said it will spend $850 million this year to fix accounting errors and complete a $10.8 billion restatement.

The government-chartered company, which in May estimated it would spend $800 million this year revamping its bookkeeping, will also spend more than $200 million preparing financial statements and filing reports to the Securities and Exchange Commission, Fannie Mae said in a regulatory filing yesterday.

The $200 million "is a pretty eye-popping number for six months of regular, ongoing financial statement preparation," said Matthew Park, an analyst at Prudential Equity Group Inc. in New York. The spending disclosed yesterday increases the total cumulative costs from the faulty accounting to $1.62 billion.

Fannie Mae has said the money will be used to pay auditor Deloitte & Touche LLP, law firm Paul, Weiss, Rifkind, Wharton & Garrison, and hundreds of consultants. The costs will continue to have a "substantial impact" on administrative expenses until the company is current in filing with the SEC, Fannie Mae said.

"These are huge numbers," chief executive Daniel Mudd told analysts in a conference call yesterday. "As your CEO I'm obviously anxious and I'm obviously going to drive to have expenses return to a more normalized range."

more...

[54anickel]

48. Dems pledge to scrutinize big business

http://news.yahoo.com/s/ap/20061108/ap_on_bi_ge/eln_election_business

WASHINGTON - The new masters of the House, the Democrats, are promoting an economic agenda that would put more money in the pockets of ordinary citizens and government, while leading to greater oversight of big business.

California Rep. Nancy Pelosi (news, bio, voting record), who is in line to become speaker, has promised to fight early on in the next Congress to lower the price of prescription drugs available through Medicare. Efforts to curb military spending are also likely, political and financial analysts said, following an election whose outcome was influenced in large part by voters' dissatisfaction with the handling of the war in Iraq.

But with the two parties stalemated in the Senate, where it usually takes 60 votes to pass major legislation, the pharmaceutical and defense industries may find themselves beset more by unwelcome rhetoric in Congress than any hurtful changes in law.

To be sure, few major changes in corporate America are expected to result from Democrat-led initiatives over the next two years — with the exception of a proposed increase in the minimum wage that may get substantial Republican support.

snip>

However, lobbyists said they do not expect the intense partisanship that defined recent campaigns to last very long.

Sure, the Democrats will want to distinguish themselves from the Republicans early on — by shifting the emphasis in energy policy from, say, increasing the supply of oil to reducing the demand for it. But pragmatism — and an eye toward the 2008 presidential election — will naturally pull both parties closer to the center, these lobbyists said.

snip>

Technology companies such as Intel Corp. and Hewlett Packard Co. will be focused on the Education and the Workforce Committee, likely to be led by Rep. George Miller (news, bio, voting record), D-Calif., as they push to increase the annual cap on H-1B visas used to attract engineers and other workers to Silicon Valley. Many in the industry say visa reform has been unfairly stalled by Republicans amid the battle over illegal immigration.

Wasn't Bill Gates recently out there crying there wasn't enough tech labor out there? :eyes:

more...

[54anickel]

49. Many Ariz. workers in poor health, Phoenix wellness company finds

http://www.azcentral.com/arizonarepublic/business/articles/1109biz-kronos1109.html

Your co-worker one cubicle over may be in worse shape than you think.

Kronos Optimal Health Co., a Phoenix-based company that offers corporate and community wellness programs, recently completed a check-up of thousands of Arizona employees.

The results were not good:

• Body-mass screenings showed that 75 percent of all males and almost 66 percent of women over age 40 were overweight or obese.

• Nearly 75 percent of men surveyed under the age of 40 had higher than normal blood pressure, which can lead to heart attacks or strokes.

more...

[54anickel]

52. OT - Plebiscite on an Outlaw Empire

http://www.atimes.com/atimes/Front_Page/HK10Aa03.html

snip>

In the context of the history of great imperial powers, how remarkably quickly this has happened. A US president, ruling the last superpower on this or any other planet, and his party have been driven willy-nilly into global and domestic retreat a mere three-plus years after launching the invasion of their dreams, the one that was meant to start them on the path to controlling the planet - and by one of the more ragtag minority rebellions imaginable. I'm speaking here, of course, of the Sunni insurgency in Iraq, of perhaps 15,000 relatively lightly armed rebels whose main weapons have been the roadside bomb and the sniper's bullet. What a grim, bizarre spectacle it has been.

The fall of the new Rome
But let's back up a moment. After such an election, a bit of history, however quick and potted, is in order - in this case of the post-Cold War era of US supremacy, now seemingly winding down.

In the wake of the fall of the Berlin Wall in 1989, to be followed by the relatively violence-free collapse of the Soviet Union, there was a brief moment of conceptual paralysis among leadership elites in the US, none of whom had even imagined the loss of the "Evil Empire" (in president Ronald Reagan's famous Star Warsian phrase) until it suddenly, miraculously evaporated. In this forgotten moment, we even heard hopeful mutterings about a "peace dividend" that would take all the extra military money that obviously was no longer needed to defend against a missing superpower and use it to rebuild the United States.

A mighty country, soon to be termed a "hyperpower", straddling the globe alone and without obvious enemies - that should have been a formula for declaring victory (as many Cold Warriors promptly did) and acting accordingly (which none of them did). It should have been the moment for the "long peace".

But in an enemy-less world, there was a small problem called the Pentagon (and the vast military-industrial complex that had grown up around it). So while the peace dividend that never was vanished in the post-Cold War morning fog, some new, prefab enemies did make their appearances with startling speed. In essence, they had to.

more...

[54anickel]

53. The buck's on quite the roller coaster ride this morning. Cripes, look at gold. Where's

THAT coming from today?

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

Last trade 85.35 Change -0.13 (-0.15%)

Settle Time 15:05 Open 85.48

Previous Close 85.48 High 85.63

Low 85.29 2006-11-09 11:21:15, 30 min delay

[markam]

55. That would be

The Peoples Bank of China Governor Zhou Xiaochuan flat out stating this morning that they are diversifying (dumping) the dollar.

People shorting the dollar (like me) are making lots of money right now.

[54anickel]

58. Bush’s Chernobyl economy; hard times are on the way

http://onlinejournal.com/artman/publish/article_1411.shtml

In the next few months, a financial crisis will arise somewhere in the world which will jolt the American economy and trigger a swift and precipitous decline in the value of the dollar.

This is not speculation; it will happen and there is nothing that the Bush administration can do to stop it.

All of the traditional supports for the dollar have been removed by a shrinking economy, a massive $800 billion account deficit, dramatic increases in the money supply, and the reckless manipulation of interest rates.

Now, the noose is tightening. Our foreign trading partners can see that we are bobbing in an ocean of red ink and are refusing to buy back our debt in the form of US Treasuries. This is a death sentence for the dollar. It means that in a matter of months the once-mighty greenback will crash through the floor and free-fall through open space.

Mike Swanson of the WallStreetWindow explains the worrisome details related to last month’s trade deficit, “Just a few days ago the US Treasury reported that the net capital inflows from the rest of the world into the US fell for a 6th month in a row. Private from abroad fell to $34.7 billion in August and from $72.9 billion in July. Asian central banks made up for the shortfall. If they hadn’t the current account deficit would have exploded. The NY Times quoted Ashraf Laidi, a currency analyst at MG Financial Group as saying, 'foreign central banks saved the dollar from disaster. The stability of the bond market is at thee mercy of Asian purchases of US Treasuries.'”

Swanson poses an interesting theory, but it can’t be verified since the Fed stopped printing the M-3 that would provide the relevant facts about the current cash inflows.

more...

[AnneD]

63. Thanks for this article ...

it is a chilling read and speaks well to a path that waits for us. Those GOP that voted with Bush are going to rue the day they ever had that Judas goat as party leader.


<snip>
Every part of this bleak picture was anticipated by its architects. That’s why they hastily slapped together the requisite legislation for a modern day police state. After passing the Military Commissions Act of 2006 (which allows the president the arrest whomever he chooses without charges) and overturning the Posse Comitatus Act (the president is now free to deploy the military within America against US citizens), the Bush administration is as ready as they can be. Apparently, they feel like they can manage the public shock and outrage with detention camps and water cannons.

<snip>

In any event, the trap has been set and any minor disruption in the hedge funds or derivatives markets will put the economy into a violent tailspin forcing our "Decider” president to activate his plans for the new world order.

Battle Stations, Battle Stations

Last week an article by Ambrose Evans-Pritchard appeared in the UK Telegraph, where he stated: “ Paulson re-activated the secretive support team to prevent markets meltdown. Judging by their body language, the US authorities believe that the roaring bull-market is just a sucker’s rally before the inevitable storm hits. . . . the plunge protection team is a shadowy body with powers to support stock-index, currency, and credit futures in a crash. Otherwise known as the working group on financial markets, it was created by Ronald Reagan to prevent a repeat of the Wall Street meltdown in October 1987.” . . . Paulson has set up “a command center at the US Treasury that will track global markets and serve as an operations base in the next crisis.” (Members include the heads at Treasury, Federal Reserve and Securities and Exchange Commission)
<snip>
Deregulation and reduced market transparency have created a plethora of financial instruments that are relatively untested and extraordinarily volatile. By eliminating the rules of the game, market savvy investors have raked in the profits but reshaped the economic landscape in a way that no one can predict what the ultimate outcome will be. Hedge funds are now loaded with over-leveraged debt instruments that promise a generous return in an up tempo market, but certain doom in an economic downturn. Now, that all the arrows are pointed towards recession, the devastating effects of this new “liberalized” system will be felt throughout the global economy.

Hard times are on the way; only this time it’ll be detention centers instead of soup kitchens.


I think that last sentence about sums it up. :scared: The entirearticle is a long but good read.

[54anickel]

64. The course has been set. I wonder if this is the same "New World Order"

Poppy had in mind? Somehow I doubt it, he's a Bastard but I don't think Martial Law was part of his plan - Just US World Domination. Poppy had an entirely different definition for "Fodder Units" than Jeb and Dumbya. Oh well, seems too late now. Poppy and Baker have their hands full undoing what Dimson has done to their precious New World Order - they can't trouble themselves with saving the much of the domestic order beyond the maintaining the facade of Superpower. Then again, we pretty much lost that when we undertook an illegal war, blew off any rights, condoned and practiced torture and basically flipped the rest of the world off.

[54anickel]

59. Dollar at 2-month euro low on China reserve talk

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFD73BD15%2DC5EB%2D46FB%2D9066%2DBBDBC6ECDE88%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

NEW YORK (MarketWatch) -- The dollar fell to a two-month low versus the euro and traded flat against the yen, sliding to session lows after China's top central banker said the country is looking to diversify its foreign-exchange reserves.

The dollar turned sharply lower after Zhou Xiaochuan, governor of the People's Bank of China, said at a conference in Frankfurt that China has very clear plans to diversify its reserves, which have exceeded $1 trillion early this week, and is considering lots of instruments, said Brian Dolan, director of research at Forex.com, a division of Gain Capital.

"The dollar selling off across the board on the China comments," he said. "Zhou's comments driving the EUR higher and this has the potential to hurt the dollar significantly across the board."

snip>

Earlier, the dollar briefly rallied against the yen after a government report showed the U.S. trade deficit narrowed sharply in September.
At the same time, the euro surged to a new record high of 151.48 versus the yen after disappointing economic data dented expectations the Bank of Japan will raise interest rates this year.

The improvement in the trade deficit was largely oil price related, "not necessarily a sign of any kind of change in the overall trade deficit," Dolan said. It's "still quite problematic in the long-term point of view."

more...

[54anickel]

54. JPMorgan, Morgan Stanley Close to Solving Derivatives Impasse

http://www.bloomberg.com/apps/news?pid=20601087&sid=apQYKN41khdA&refer=home

Nov. 9 (Bloomberg) -- JPMorgan Chase & Co. and Morgan Stanley are close to ending an impasse that is delaying growth of trading derivatives based on corporate loans.

The two-month dispute set back the creation of an index needed to measure the performance of credit-default swaps based on loans to companies in Europe, including Yell Group Plc and TDC A/S, Denmark's biggest telephone company. Investors are reluctant to participate in a market without a benchmark.

An agreement at a meeting next week would end a boycott by JPMorgan, Goldman Sachs Group Inc. and Citigroup Inc., which have refused to provide prices for the new index, created by a group led by Morgan Stanley. The index allows investors to speculate on the ability of 35 European companies to repay bank debt.

``It looks like we're now very close to reaching a compromise,'' Leander Christofides, JPMorgan's head of European loan trading in London, said in an interview yesterday. ``We'll finally be able to start trading and build a market with products that we hope will match the success of bond derivatives.''

Credit-default swaps, created a decade ago to protect bondholders, have expanded to cover debt sold by more than 3,000 companies, governments and industries. Hedge funds and banks use the contracts as a less expensive way of betting on the creditworthiness of companies than purchasing bonds.

more...

[54anickel]

56. THE INTERNATIONAL FORECASTER

http://news.goldseek.com/InternationalForecaster/1163089227.php

US MARKETS

You are seeing the last manipulated gasp of a faltering economy. The recession began in January and some of the pros and others are just catching on. Bogus figures galore. Only a cretin would believe unemployment was dropped to 4.3% before an election. You may recall that unemployment was 4.4% in April of 2001, one year after we called the top of the stock market. Two years later it was 6.3%. Don’t be fooled by unemployment figures – they lag the economy by a year or more.

Canadian income trusts fell 20% last week because the government decided to change the rules. The fundamentals in the companies didn’t change, the government decided to change the rules. We see that happening in the US when dividend tax cuts are not made permanent.

Those who are connected tell us all will be well because of the new management in this new era of our economy, although they agree over the next two years GDP growth will decline due to a collapsing housing market. We are told the economy will be saved by financial innovation, which is more risk taking, central bank transparency, which doesn’t in any way exist, derivatives, which are a disaster ready to happen and yes, even in its so-called globalization which will supposedly moderate economic volatility. The old rules are to be thrown away because in our brave new economic and financial world the new dictum is one and one makes three. We call this a perpetual state of recession or depression. If transnational conglomerates are shipping business and jobs overseas, someone has to tell us how our economy can recover. Most Americans are buried in debt and have no savings and bankruptcy looms for one-third of our population and these dolts believe our correction will be short-lived. Who will be left to sell too? Bankrupts and those without jobs? Get smart you are being deceived by your government, Wall Street and our bankers again as they desperately attempt to hold a system together which they put in motion for destruction.

Our play back is winning – we are sorry to say. Manufacturing is slowing at the fastest pace in more than four years and construction help has begun its collapse. We wonder what they will do with all those illegal aliens walking the streets trying to feed their anchor babies. The consensus of experts have been wrong over and over again. They are still calling for expanded growth. We ask what planet are they on? All they have to do is look at bogus statistics and see the slowdown, or the rampant expansion of money and credit that is destroying the value of our dollar. They cannot do that because if they do they will lose their jobs. The economic trend is clearly down. The ISI manufacturing survey is 51.1. By January it will be under 50 and contracting. Real estate is in the process of correction as it has been since June 2005. The pros say there is a 100% chance of an interest rate cut by March. If so, they can kiss the dollar goodbye and watch gold soar into the heavens. The unemployment data is totally bogus and six months to a year behind the curve. We have been losing jobs every month for 1-1/2 years. Unemployment figures, bogus or otherwise, are not leading indicators - they are for lagging indicators. How do these geniuses explain the massive fall in productivity gains to 1.6%? Those are bogus as well. The figures are worse. That means purchasing power and profits have to drop and inflation, real inflation has to rise. On the other side of the coin, wages suppressed for six years are screaming upward at the worst possible time. The cost of labor bogusly rose 3.8% and is up 5.3% YOY. Business either raises prices or loses profits. Up goes inflation, ever higher. Two-thirds of a companies’ expense is wages. Read your economics book from Eco 101. When labor costs rise above productivity you get less profit or inflation, or both. As you saw in the last issue, via Ben Bernanke’s August speech at Jackson Hole, WY, it is all about globalization and printing money and credit. Yet, all the experts tell us the fed will not allow inflation to continue at today’s elevated rates, even at the risk of a lower economy. How stupid, lower rates won’t work and they will destroy the dollar. Just read Bernanke – he says more money and credit and globalization until the problem is solved or the system self-destructs. We have to laugh when we are told the labor market is getting tighter, what claptrap. As you can see there are two worlds we live in. The world our government and Wall Street would like us to believe and then there is the real world in which we all live.

more...

[KayLaw]

67. I've been reading Chapman for months.

He makes it clear he's a right wing conservative, but, unlike some, he's attached to reality.

I know from posting at a Disney board, he's not the only one who doesn't buy government figures. They can lie and spin till the cows come home but people know how much they have left at the end of the month and they know the quality and quantity of jobs in their town.

[54anickel]

62. 1:21 numbers and yada

Dow 12,133.16 43.38 (0.35%)
Nasdaq 2,391.90 6.96 (0.29%)
S&P 500 1,383.96 1.76 (0.13%)
10-yr Bond 4.6350% 0.0020
30-yr Bond 4.73% 0.00
NYSE Volume 1,675,272,000
Nasdaq Volume 1,435,850,000

1:00 pm : Little changed since the last update as the major averages continue to vacillate in roughly the same ranges. Materials (+1.3%), meanwhile, has recently surpassed Technology as today's second best performer (behind Energy +1.4%). Steel (+4.5%), Coal & Consumable Fuel (+3.3%), Diversified Metals & Mining (+2.7%) and Gold (+2.5%) are now four of today's top five performing S&P industry groups. Be that as it may, as the least influential of the 10 S&P sectors, the Materials sector extending its year-to-date advance to 14.4% has barely been noticed. DJ30 -30.27 NASDAQ +10.85 SP500 -0.75 NASDAQ Dec/Adv/Vol 1608/1295/1.33 bln NYSE Dec/Adv/Vol 1464/1629/872 mln

12:30 pm : No real change to the indices as traders begin to work their way through the New York lunch hour. It is worth noting, though, that Consumer Discretionary has recently turned positive to leave sector leadership evenly split. Dow component and suggested holding in the Briefing.com Active Portfolio Walt Disney (DIS 33.78 +0.68) is leading the charge, surging 2.1% to a new 52-week high ahead of its Q3 report after the close. Investors appear to be pricing in a solid fourth quarter for Disney following a better than expected Q1 report last night from competitor News Corp (NWS 22.02 +0.16), another recommended holding.DJ30 -28.91 NASDAQ +10.41 SP500 -0.03 NASDAQ Dec/Adv/Vol 1653/1226/1.22 bln NYSE Dec/Adv/Vol 1539/1534/772 mln

12:00 pm : The indices remain in relatively tight trading ranges midday, with a blow out quarter from Cisco Systems giving the Nasdaq a boost while concerns about possible drug concessions stall a run at another record close for the Dow.

Of the six sectors losing ground, Health Care (-1.1%) is pacing the way lower for a second straight day as investors question the valuations of several drug companies should a Democratic-controlled Congress make a push to lower drug prices. To wit, Pfizer (PFE 26.11 -0.51), Merck (MRK 43.34 -1.00) and Johnson & Johnson (JNJ 67.11 -0.88), all recently near 52-week highs, are among today's worst performing Dow components.

The absence of leadership from Financials and Industrials is also taking some attention away from solid gains in Technology and Energy. The latter is turning in the best performance again (+1.3%) as another rise in oil prices bodes well for the bottom lines of every one from Explorers (+2.5%) to Refiners (+1.8%). In fact, the sector's recent history as a large contributor to profit growth on the S&P 500 is helping investors deal with oil's potential to sustain inflation pressures. Crude for December delivery is up 2.0% and back above $61/bbl following a larger than expected drawdown in weekly distillate supplies.

The big story today, though, comes out of Technology. The influential sector has gotten a big boost after Cisco Systems (CSCO 26.89 +1.79) topped Wall Street forecasts and issued upside Q2 revenue growth guidance last night, prompting several analysts to raise their estimates and price targets. Already up 5.6% this week alone in anticipation of a solid Q1 report, the tech bellwether has tacked on an additional 7.1% gain and is helping to renew confidence about the Tech sector's earnings prospects. BTK -0.9% DJ30 -27.71 DJTA -0.5% DJUA +0.2% DOT +0.6% NASDAQ +9.84 NQ100 +0.4% R2K -0.2% SOX -0.5% SP400 +0.1% SP500 -0.09 XOI +1.5% NASDAQ Dec/Adv/Vol 1565/1264/1.08 bln NYSE Dec/Adv/Vol 1425/1604/652 mln

[ozymandius]

66. the Witching Hour cometh

3:00
Dow 12,109.23 Down 67.31 (0.55%)
Nasdaq 2,380.22 Down 4.72 (0.20%)
S&P 500 1,380.16 Down 5.56 (0.40%)
10-Yr Bond 4.635% Up 0.002
NYSE Volume 2,298,282,000
Nasdaq Volume 1,898,266,000

[54anickel]

65. Heading into the final hour t 2:50

Dow 12,100.42 76.12 (0.63%)
Nasdaq 2,377.93 7.01 (0.29%)
S&P 500 1,379.12 6.60 (0.48%)
10-yr Bond 4.6330% 0.0000
30-yr Bond 4.73% 0.00
NYSE Volume 2,227,754,000
Nasdaq Volume 1,839,325,000

2:30 pm : Sellers remain an active bunch as the Nasdaq joins its blue chip counterparts in negative territory. Even though Communication Equipment (+2.2%) remains one of today's best performers, due primarily to the 6.9% surge in Cisco Systems (CSCO 26.82 +1.72), the lack of leadership from the Nasdaq's most influential industry groups -- Semiconductors (SOX -1.0%) and Biotech (BTK -2.1%), is contributing to the index's struggles to stay in the green. DJ30 -67.25 NASDAQ -1.30 SP500 -4.36 NASDAQ Dec/Adv/Vol 1865/1089/1.70 bln NYSE Dec/Adv/Vol 1672/1481/1.16 bln

2:00 pm : Major averages continue to languish near their worst levels of the day as sellers regain the edge on the Big Board. Growing hesitation on the part of buyers is further reflected in the A/D line, which now shows decliners on the NYSE outpacing advancers for the first time this afternoon. Strangely, even though the Nasdaq continues to trade in positive territory, it's evident that much of the tech-heavy Composite's small gain is based largely on strength from its most heavily-weighted components since decliners have held an edge over advancers throughout most of the session. DJ30 -53.24 NASDAQ +3.15 SP500 -3.03 NASDAQ Dec/Adv/Vol 1782/1147/1.56 bln NYSE Dec/Adv/Vol 1644/1487/1.04 bln

1:30 pm : The indices are now trading at fresh session lows in the absence of spirited leadership from a number of blue chips. While drug stocks (e.g. MRK -3.0%, JNJ -2.8%, PFE -2.5%) continue to pace the way lower on the Dow, a recent spike lower in AT&T (T 33.59 -0.78) has contributed to additional weakness on this year's best performing major average. Concerns that the FCC will continue to delay AT&T's proposed $83 bln merger with BellSouth (BLS 43.73 -0.84), amid ongoing anti-trust inquiries from the House Energy Panel, is prompting investors to lock in recent gains. As a reminder, Telecom is this year's best performing S&P sector (+28%).DJ30 -55.57 NASDAQ +3.46 SP500 -3.23 NASDAQ Dec/Adv/Vol 1703/1200/1.43 bln NYSE Dec/Adv/Vol 1535/1594/950 mln

1:00 pm : Little changed since the last update as the major averages continue to vacillate in roughly the same ranges. Materials (+1.3%), meanwhile, has recently surpassed Technology as today's second best performer (behind Energy +1.4%) amid further depreciation in the U.S. dollar after People's Bank of China Governor Zhou Xiaochuan said he has a "clear" plan to diversify the country's foreign-exchange reserves. As a result, dollar-sensitive areas like Steel (+4.5%), Diversified Metals & Mining (+2.7%) and Gold (+2.5%) are now three of today's top five performing S&P industry groups. Be that as it may, as the least influential of the 10 S&P sectors, the Materials sector extending its year-to-date advance to 14.4% has barely been noticed.DJ30 -30.27 NASDAQ +10.85 SP500 -0.75 NASDAQ Dec/Adv/Vol 1608/1295/1.33 bln NYSE Dec/Adv/Vol 1464/1629/872 mln


Peek at the buck:

Last trade 85.13 Change -0.35 (-0.41%)

Settle Time 15:05 Open 85.48

Previous Close 85.48 High 85.63

Low 85.06 2006-11-09 14:22:30, 30 min delay

[ozymandius]

69. updating blather

3:30 pm : Selling remains the name of the game going into the close. Of the four sectors trading higher, three of them -- Energy, Utilities and Materials -- combining for only 15% of the weighting on the S&P 500 provide little conviction on the part of buyers to extend three days of market gains. Technology is the only other sector in positive territory, but its diminishing 0.5% advance is being dwarfed by a 2.5% drubbing in Health Care. The latter accounts for today's three biggest laggards: Managed Health (-3.6%), Pharmaceuticals (-3.0%) and Healthcare Services (-2.8%). DJ30 -77.42 NASDAQ -10.59 SP500 -6.97 NASDAQ Dec/Adv/Vol 2056/935/2.02 bln NYSE Dec/Adv/Vol 1892/1315/1.42 bln

3:00 pm : A bearish tone continues to persist in stocks as stocks extend their reach to the downside. The Dow continues to lead the way lower among the majors, but is now being paced by a 3.8% sell-off in shares of Pfizer (PFE 25.61 -1.01). While the stock has been weak all day, recent reports that Torcetrapib research was pulled from a heart meeting have exacerbated intraday nervousness. Reversals in components Boeing (BA 85.41 -0.04) and Honeywell (HON 42.30 -0.03) are also weighing on the price-weighted index. DJ30 -70.37 NASDAQ -5.82 SP500 -5.97 NASDAQ Dec/Adv/Vol 1991/983/1.87 bln NYSE Dec/Adv/Vol 1773/1424/1.29 bln

[ozymandius]

72. all over but the blathering

Dow 12,103.30 Down 73.24 (0.60%)
Nasdaq 2,376.01 Down 8.93 (0.37%)
S&P 500 1,378.33 Down 7.39 (0.53%)
10-Yr Bond 4.633% 0.00
NYSE Volume 2,999,050,000
Nasdaq Volume 2,380,191,000

[54anickel]

73. Side o' Blather

4:20 pm : Stocks snapped a three-day winning streak Thursday as growing anxiety about possible drug concessions and surging oil prices overshadowed a blowout quarter from Cisco Systems.

Health Care, already this year's poorest performing S&P sector, became even more unfavorable today. Although it is still up modestly on the year, the sector extended its underperformance for a second straight day as investors fretted over whether a Democratic-controlled Congress will make a push to change the Medicare Prescription Drug benefit in order to lower drug prices. Such fears called into question the valuations of several drug companies recently hitting 52-week highs. To wit, Pfizer (PFE 25.82 -0.80), Merck (MRK 42.92 -1.42) and Johnson & Johnson (JNJ 66.17 -1.82) were among today's worst performing Dow components.

The absence of leadership from Financials and Industrials also weighed on the market and followed a report from the University of Michigan earlier in the session that showed a lower than expected consumer sentiment reading. Telecom, this year's best performing S&P sector (+26%), was another weak spot for stocks. Concerns that the FCC will continue to delay AT&T's (T 33.38 -0.99) proposed $83 bln merger with BellSouth (BLS 43.52 -1.05), amid ongoing antitrust inquiries from the House Energy Panel, prompted investors to lock in some of the sector's impressive year-to-date gains.

Among the four sectors finishing in positive territory, Materials paced the way as a weaker dollar made steel and gold stocks more attractive. However, as the least influential of the 10 S&P sectors, its nearly 1.0% advance was barely noticed. Energy was another beneficiary of a weak greenback and a bright spot for investors, but not necessarily for consumers, since the sector rose in sympathy with oil prices closing above $61/bbl for the first time this month. Crude for December delivery surged 2.2% to a two-week high of $61.16/bbl following a larger than expected drawdown in weekly natural gas inventories.

Technology was another focal point Thursday and had the Nasdaq trading in positive territory until a renewed wave of selling interest late in the day become too much for the bulls to bear. Providing the biggest boost was a 6.5% surge in Cisco Systems (CSCO 26.72 +1.62) to a two-year high. The tech bellwether and suggested holding in the Briefing.com Active Portfolio topped Wall Street forecasts and issued upside Q2 revenue growth guidance last night. That prompted several analysts to raise their estimates and price targets, helping the stock extend its weekly advance to more than 12% and restore some optimism about the Tech sector's earnings prospects. BTK -2.3% DJ30 -73.24 DJTA -1.0% NASDAQ -8.93 NQ100 -0.6% R2K -1.0% SOX -1.9% SP400 -0.6% SP500 -7.39 XOI +0.8% NASDAQ Dec/Adv/Vol 2015/1015/2.26 bln NYSE Dec/Adv/Vol 1893/1343/1.75 bln