STOCK MARKET WATCH, Monday February 26

[ozymandius]

Monday February 26, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 693LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2254 DAYS
WHERE'S OSAMA BIN-LADEN? 1958 DAYS
DAYS SINCE ENRON COLLAPSE = 1918
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54


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




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

AT THE CLOSING BELL ON February 23, 2007

Dow... 12,647.48 -38.54 (-0.30%)
Nasdaq... 2,515.10 -9.84 (-0.39%)
S&P 500... 1,451.19 -5.19 (-0.36%)
Gold future... 686.70 +3.70 (+0.54%)
30-Year Bond 4.78% -0.05 (-0.99%)
10-Yr Bond... 4.68% -0.05 (-1.10%)






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. Today's Market WrapUp

Gold and the XAU Ratio Charts
BY TIM W. WOOD

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

[ozymandius]

2. Today's Report

10:00 AM Existing Home Sales Jan
Briefing Forecast NA
Market Expects NA
Prior 6.22M

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

[ozymandius]

3. Oil prices rise above $61 a barrel

SINGAPORE - Oil prices rose Monday in Asian trading as a winter storm plowed across the United States, spurring expectations of strong demand for heating oil.

The winter storm churned toward the U.S. East Coast after dumping as much as 2 feet of snow in the Midwest, grounding hundreds of airline flights and closing major highways. By midday Sunday in the United States, snow was dwindling but still falling from Washington D.C. to the Dakotas.

"Oil prices have been driven by the weather, as what is perhaps the last winter storm of the year passes through the U.S. Midwest toward the East Coast, driving strong demand in heating oil," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

-cut-

Oil prices were also supported by U.S. inventory figures released last Thursday which showed a larger-than-expected decline in distillates, which include heating oil and diesel, as well as a drawdown in gasoline inventories.

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

[ozymandius]

4. States beat Washington to renewable energy

WASHINGTON (Reuters) - In Texas, home to some of the world's biggest oil companies, you might think the case for renewable energy would be tough to make. As it happened it was tough, but not impossible.

It was simply a case of showing that technologies like massive wind turbines and solar roof shingles would do the job with costs that were in line with power generated from fossil fuel, said Jim Marston, of the Texas office of Environmental Defense, an advocacy group.

Texas is one of more than 20 states which, lacking a lead from central government in Washington and spurred by mounting evidence of the threat of global warming, have pressed ahead with their own measures to boost renewable energy use and curb emissions of carbon dioxide, held largely responsible for pushing up world temperatures.

President George W. Bush, having rejected the ground-breaking Kyoto Protocol on curbing carbon dioxide on the ground that the U.S. economy could not afford it, in January acknowledged the challenge of climate change in his State of the Union address and spoke of new technologies and alternative fuels as possible solutions.

http://news.yahoo.com/s/nm/20070226/sc_nm/renewable_energy_usa_dc_2

[AnneD]

22. Morning Marketeers.....

:donut: It is because of our experience with oil that renewable energy is looked at positively. When I use to do the biannual trip from New Mexico to Houston, I was amazed to see a growing number of windmills on the flat mesas of west Texas. That area of Texas is fairly desolate, flat, and full of mesquite and tumble weeds. Lots of sun and wind. Absolutely perfect for wind and sun power generation. The windmills do look like an army of giant sentinels-Don Quixote was right!
We have had problems with air pollution, oil spills, gas explosions, poor water quality, you name it. The only time there has been a backlash with wind generation was when the wanted to put it off shore. The concern is that we are a major migratory route for many N.A. birds and we don't want them killed or exhausted from flying around obstacles. And that is reasonable.

Happy Hunting and watch out for the bears.

[Tandalayo_Scheisskopf]

10. This pissant winter storm...

As a driver for heating oil prices is a joke. That this is the explanation is a bigger joke.

Boy, do some people need a lot of quality time in front of congressional investigators and committees or what?

[UpInArms]

12. you are such a skeptic!

don't you know that no one could have predicted or anticipated a cold winter storm during this time of year?

:sarcasm:

[Nickster]

35. I remember back in the "olden" days when the cold weather drove down the price

of oil because no one was driving as much. Funny how that conventional wisdom thing changes so quickly.

[AnneD]

57. I remember when....

job losses at companies were a sign of poor management and stock prices would tumble.

[Nickster]

61. HA! Now that's just crazy talk. :-) n/t

[AnneD]

64. Even rumours of layoffs

would cause a companies stocks to tumble. I mean...if they couldn't make payroll, they couldn't pay a dividend.

How times have changed. Wall Street types are chasing a few fractions of pennies of profit from companies that don't have enough workers to manufacture a product.:eyes:

Guess ours is a mature Capitalist system.:sarcasm:

[ozymandius]

5. Stocks fall on mortgage defaults (Friday review)

NEW YORK (Reuters) - Stocks fell for a third straight session on Friday as concern over rising defaults in the subprime mortgage industry drove down financial services shares and the price of oil hit a 2007 high.

Shares of NovaStar Financial Inc. (NYSE:NFI - news) and New Century Financial Corp. (NYSE:NEW - news), two of the major names in the business of making home loans to Americans with shaky credit, extended declines from earlier in the week. That trend spilled over to bigger names in the home loan business like Countrywide Financial Corp. (NYSE:CFC - news), Wells Fargo & Co. (NYSE:WFC - news) and even blue-chip JPMorgan Chase & Co. (NYSE:JPM - news)

-cut-

Subprime mortgages are the riskiest part of the U.S. home loan market, serving borrowers with poor credit histories at higher-than-average interest rates. Default rates have risen as the U.S. housing market has seen slowing sales and falling prices.

-cut-

But the worries about the troubled subprime mortgage market's impact on the banking sector and the U.S. economy as well as the saber rattling over Iran sent investors running for the safety of U.S. Treasury bonds. The price of the benchmark 10-year U.S. Treasury note shot up 14/32 in price to 99-19/32, while its yield fell to 4.68 percent on Friday from 4.73 percent late on Thursday.

http://news.yahoo.com/s/nm/markets_stocks_dc

[ozymandius]

6. Subprime woes seen worsening if oil hits borrowers

NEW YORK (Reuters) - Troubles buffeting the U.S. mortgage market could get worse as resurgent crude oil prices squeeze the finances of already hard-pressed borrowers, analysts say, and that could spell more trouble for Wall Street.

The fallout from the subprime mortgage lending industry, which lends to riskier borrowers with spotty credit histories, could even trigger a long-anticipated correction in the U.S. stock market, they said.

-cut-

Many subprime borrowers with are already grappling with rising interest rates on their adjustable-rate mortgages, and the subprime sector has been hit hardest by the recent downturn in housing values.

-cut-

Until recently oil prices had been declining, creating a cushion for hard-pressed homeowners.

http://news.yahoo.com/s/nm/20070223/bs_nm/markets_stocks_subprime_dc

[AnneD]

23. As sure as I am typing this...

oil prices will go up soon as they re blend for the heavy summer driving season. Hold on to your butts cause the prices will go up soon just as a routine. They will be outrageous if we have an active hurricane season, like I think we will. And if Houston gets hit-you can kiss your car driving butts goodbye.

I am so lucky that I can get through 2 plus weeks on a tank (even if I have to drive to another town for prn work). I have really gotten my commute and shopping down to a science.

[54anickel]

29. US mortgage crisis goes into meltdown

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/02/24/cnusecon24.xml

Last Updated: 1:15am GMT 24/02/2007

Panic has begun to sweep the sub-prime mortgage sector in the United States after the bankruptcy of 22 lenders over the past two months, setting off mass liquidation of housing loans packaged as securities.

The rapid deterioration could not come at a worse time for British bank HSBC, which has set aside $10.5bn (£5.4bn) to cover bad loans in the US.

The cost of insuring against default on these loans has rocketed in recent weeks, from 50 basis points over Libor to 1,200, raising fears that a credit crunch could spread to the rest of the property market.

Low-grade BBB-rated securities - measured by the ABX index - have crashed from near par of 100 in early November to 72.5 this week.

Peter Schiff, head of Euro Pacific Capital, said the sector was in an unstoppable meltdown. "It's a self-perpetuating spiral: as sub-prime companies tighten lending they create even more defaults," he said.

snip>

Mr Roubini said: "America faces a 'reverse cycle' where a credit crunch has hit before the slowdown, a rare pattern. Normally, recession comes first, setting off credit troubles in its wake. We have a housing recession, an auto recession, a manufacturing recession, and a real investment recession already present. If all this happening in what the consensus terms as a 'Goldilocks economy', what would happen if the economy slows down?"

[ozymandius]

7. Daimler mulls GM stake to pay for Chrysler unit: FT

LONDON (Reuters) - DaimlerChrysler AG is considering taking a minority stake in General Motors Corp. as payment for Chrysler if a deal between the two automakers takes place, the Financial Times said on Monday.

Such an all-share option was being weighed up by the firm, the newspaper said, citing people familiar with the situation.

Other possible options included a sale of DaimlerChrysler's struggling U.S. arm to private-equity or industry investors, and a flotation of Chrysler, according to the FT.

-cut-

Chrysler Group Chief Executive Tom LaSorda told employees last week it might take months before questions about a possible sale of the unit could be answered.

http://www.reuters.com/article/newIssuesNews/idUSL2662161620070226

[UpInArms]

8. dollar watch

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

Last trade 84.06 Change +0.08 (+0.10%)

Dollar Much Ado About Nothing

http://www.dailyfx.com/story/strategy_pieces/trade_or_fade/Dollar_Much_Ado_About_Nothing_1172476727954.html

Another week of essentially non-existent data and the price action in FX reflected that fact as the EURUSD flopped to and fro between 1.3178 and 1.3080 contained to a 100 basis point range all week long. US CPI printed a bit hot at 2.7% versus 2.6% expected with increases in food and medical care registering their largest gains in 15 years, but news resulted in the mildest of dollar rallies which was quickly forgotten as the market continues to dismiss any idea of additional rate hikes. The release of the FOMC minutes only served to confirm that view with members agreeing that a rate hike “was not warranted." Although FOMC members also noted that upside risks remained in the economy, the market was in a “show me” mood and essentially dismissed their commentary as mere rhetoric.

One reason that most players are skeptical of any tightening action by the Fed is the continued deterioration of the US housing market. Since the start of the year 22 sub-prime mortgage brokers have gone bankrupt and the asset backed market has melted away with spreads rising from 50bp over Libor to 1100bp in a matter of days and with the cost of insuring 10MM worth bonds skyrocketing from 300K to 1.2M per year. Against this background few traders believe the Fed will even consider a rate hike until real estate stabilizes. To that end, both Existing and New Home Sales on Tuesday and Wednesday may be key to setting the direction of trade. Additionally the market will also look at the US GDP revisions and durable goods orders, both of which are expected to print lower.



...more...

US Dollar Faces Many Risks in the Week Ahead

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar_Faces_Many_Risks_1172269623643.html

Throughout the past week, the value of the US dollar was determined almost exclusively by foreign developments. The dollar skyrocketed against the Japanese Yen on carry trade demand and slipped against the Australian, New Zealand and Canadian dollars on rising commodity prices. Against the Euro and British pound, the currency remained virtually unchanged. Even though there was barely any US economic data on the calendar, there was plenty of news that could affect the future direction of the US dollar, the most concrete of which is the potential rise in inflation. Consumer price growth was stronger than expected in the month of January which created a wave of concerns about inflationary pressures. The corresponding rise in oil prices exacerbated that concern as it was the most tangible driver of higher prices in months to come. The potential risk of a major blowup in sub-prime mortgages also sent investors fleeing into safer assets while Iran’s defiance of UN demands raised concerns for geopolitical risks. The pressure on the US dollar could continue to grow as we head into the busy data week. We are expecting durable goods, consumer confidence, existing and new home sales, preliminary fourth quarter GDP, Chicago PMI, personal income and manufacturing sector ISM. Aside from Chicago PMI and ISM, the market is not expecting dollar friendly data, especially at the beginning of the week. A drop in aircraft orders should weigh on durable goods orders while softer inventory data and downward revisions to non-residential and business investment could lead to a significant downward revision in GDP. This supports the technical outlook for the majors, which has turned dollar bearish on the last trading day of the week.

...more...

[54anickel]

19. Yen in the firing line at eurozone finance ministers meet

http://news.yahoo.com/s/afp/20070225/bs_wl_afp/eueurozoneeconomy_070225225408

BRUSSELS (AFP) - Finance ministers from the 13 countries sharing the euro were due on Monday take stock of growth in their combined economy amid concerns that the yen's weakness is hurting their exports.

The Japanese currency hit a new low against the euro on Thursday of 159.61 yen before firming up slightly on Friday.

The exchange rate question "will certainly be addressed Monday evening," said a source close to Luxembourg Prime and Finance Minister Jean-Claude Juncker, who chairs monthly meetings of eurozone finance ministers.

Juncker is due to "debrief" colleagues about a meeting of finance ministers from the Group of Seven most industrialised nations two weeks ago in Essen central Germany, where Japan assured its European partners the yen would pick up strength.

Despite such assurances and an increase in the Bank of Japan's interest rates, the yen has so far failed to recover.

After the G7 meeting, several European ministers took diverging positions on the yen's weakness with Juncker sounding the alarm while Italian Finance Minister Tommaso Padoa-Schioppa said that exchange rates should be decided by markets.

more...

[54anickel]

33. Lot's O' Data This Week...Today's Pfenning

http://www.kitcocasey.com/displayArticle.php?id=1244

snip>

The Fed-speak Friday was a real bust, as the speeches weren't compelling... Nor were they even interesting! Fed head Fisher said that "there is hope U.S. inflation will slow"... (Not exactly confidence building, eh?) And Fed head Yellen repeated a speech she made previously only a few days earlier...

So, the sour note that I thought the currencies could end the week on was swept under a rug, and instead the currencies rallied! The euro made it within spittin' distance of 1.32 before it settled in, closing up almost 3/4 cent at 1.3175! In the overnight market, there has been some profit taking, but not much.

We'll see some data from the Eurozone this week, that should keep the fire lit under the European Central Bank's (ECB) to keep the rate hike cycle in gear. We'll see German and French unemployment data tomorrow, and Eurozone CPI on Wednesday. German Retail Sales will close the week on Friday. Eurozone CPI is mostly likely to come in a shade below the ceiling target set by the ECB of 2%... But, as I keep harping on... This isn't enough to make the ECB back off the rate hike trigger...

Money Supply is still running way too high in the Eurozone... And after our little classroom project in Friday's Pfennig where we proved that Money Supply is the root of all inflation, there should be no doubt that the ECB will hike rates when they meet next week.

Last week I printed some of one of my fave economist's Stephen Roach's thoughts on the very weak TIC data... Well, to follow that up, the Royal Bank of Scotland (RBS) did a survey to prove that central banks are diversifying a portion of their reserves out of dollars. According to RBS, Italy, Russia, Sweden and Switzerland have made their "major adjustments," favoring the euro and pound sterling to take the place of dollars.

Of course we all know that the Big Dogs regarding reserve diversification are China and Japan... And while China has repeatedly said they would diversify their trillion dollars worth of reserves, they have done little to nothing.

more...

[UpInArms]

9. Lowe's 4Q profit drops 11.5 percent

http://news.yahoo.com/s/ap/20070224/ap_on_bi_ge/earns_lowe_s

CHARLOTTE, N.C. - Profit at Lowe's Cos. fell 11.5 percent in the fourth quarter but beat analysts' expectations, and investors Friday rewarded the home improvement retailer. Wall Street sent shares of the nation's second-largest home improvement chain higher. In fact, some analysts made bets Friday that Lowe's might have borne the worst of a slowdown from the slumping housing sector.

"Yes, it does appear that the worst is behind them," said Stephanie Hoff, senior retail analyst with Edward Jones. "I think the question going forward though is how rapidly can we travel down that road to recovery. I am a little surprised at the strength in the stock today."

Lowe's shares rose $1.30, or 3.9 percent, to close at $34.93 on the
New York Stock Exchange after reaching a 52-week high of $35.74 earlier in the session.

The Mooresville, N.C.-based company said it earned $613 million, or 40 cents a share, for the three months ended Feb. 2, down from $693 million, or 43 cents a share, a year earlier.

Revenue fell 3.7 percent to $10.4 billion from $10.8 billion a year earlier. Same-store sales, a key measure of industry performance that is based on sales in stores open at least one year, fell 5.3 percent.

The company, which opened 58 stores in the quarter, had expected same-store sales decline of 4 percent to 6 percent for the quarter.

...more...

[Lucky Luciano]

11. Stations Casinos (STN) gets bump to $90

The MBO of STN got a bump (that may have been predictabel as a rumor did swirl about this a month ago or so) to $90 from the original price of $84. Check the news.

[Lucky Luciano]

15. Now there is talk of STN tendering for their bonds...

CDS just gapped tighter from 170 to 140....fun stuff. If they tender for the bonds, there will be no bonds outstanding and the CDS would be insuring nothing....of course, they could always issue new bonds afterwards...

[Lucky Luciano]

24. CDS now 118

What does this mean given that it was 170 on Friday?
Say sold this on $10M notional @ 170.
Now it has gapped 52 bps tighter over the weekend.

There are 5 years of payments at 170bps that we receive. Now that we can buy it back for 123 (118 is midmarket - offer is 123 actually), we earn 47 bps * 5 years of payments discounted to present value is roughly equal to 47 bps * 4.2 = 197.4 bps
or roughly 2% of $10M - that is $200K.

[Lucky Luciano]

13. Largest LBO ever - TXU... $45B

This one tops the EOP LBO completed earlier this month for $39B.

The insurance on the bonds, commonly known as a CDs or credit default swap jumped from 80 bps to 170 bps for a 5 year contract. This means that one pays $170K per year on $10M notional of insurance. This is kind of crazy and indicative of how tight credit markets have been as this would have normally gone to 300 bps or more in other huge LBOs like HCA, FSL, and TSG. Perhaps ther fact that it "only" went to 170 indicates the regulatory hurdles and length of time for the deal to close and all the debt to be assumed by Kohlberg Kravis Roberts and Texas Pacific (the purchasers).

Watch this today.

[Lucky Luciano]

14. Dow Chemicals LBO rumors swirling

Potential suitors are KKR, Carlyle, and Blackstone. This would be a $54B LBO...and yet another record.
The CDS has been very active this morning widening from a bid offer of 19-23 to 39-43 - that is a very signifcant move. The stock is up 10% in the premarket. This rumor might very well have some teeth to it.

Snoop around the internet for more info.

[54anickel]

16. Central banks 'seek riskier assets'

http://biz.yahoo.com/ft/070225/fto022520071845455931.html?.v=1

Central banks are becoming more active managers of their burgeoning foreign exchange reserves, seeking to increase the yield on their portfolios, according to a survey of reserve managers of the world's central banks published on Monday.

Normally a secretive bunch owing to the conservatism of central banks and the scale of their investments, reserve managers told the journal Central Banking of rising pressures to provide their governments with decent returns in a low-yield environment.

When surveyed at the end of last year, many believed that there was no barrier in principle to investing in assets as risky as equities, although few were allowed to do so. But over a third of the central banks surveyed said their institutions had changed their investment guidelines in the past year.

The survey attracted responses from 47 reserve managers controlling $1,538bn (EU1168bn, £784bn) under management out of a total of more than $4,700bn controlled by central banks worldwide. Conducted under anonymity, it did not receive responses from China or Japan, which control nearly $2,000bn between them.

Central Bank reserves have exploded since the start of the decade - the amount of money under management was £2,000bn ($2,911bn, EU1519bn) in 2001 - as countries have sought to insure themselves against possible capital outflows and a liquidity crisis and some, such as China, have actively managed their exchange rates to prevent appreciation.

more...

[54anickel]

17. Fed stance puzzles economists

http://www.msnbc.msn.com/id/17333264/

Economists are chewing over a puzzle that could have profound implications for the future path of US interest rates: has the Federal Reserve changed its thinking about the relationship between unemployment and inflation?

To be more precise: does the Fed now think that the US economy can operate with unemployment as low as 4.5 per cent in the long term without generating inflation?

Or does it simply think the inflationary effect of unsustainably low unemployment now takes longer to percolate through the economy than it did in the past?

This puzzle has preoccupied economists ever since Ben Bernanke presented the Fed's monetary policy report to Congress earlier this month.

The report shows Fed policymakers think unemployment will be between 4.5 and 4.75 per cent this year and next, while inflation will decline from between 2 and 2.25 per cent this year to between 1.75 and 2 per cent in 2008.

This is intriguing, because unemployment at 4.5 to 4.75 per cent is lower than most estimates of what economists call the "non-accelerating inflation rate of unemployment" (Nairu) – the rate of unemployment below which inflation picks up.

Mr Bernanke did not explain how the Fed reconciled its unemployment and inflation forecasts.

more...

[AnneD]

30. God help us...

Those unemployment numbers haven't been accurate since Raygun took office. They are cooking the books based on bogus numbers.

[54anickel]

18. Insatiable investment funds in hot pursuit of huge prey

http://news.yahoo.com/s/afp/20070225/bs_afp/usinvestmentenergy_070225193052;_ylt=Aml_TylH3UiIqOTRjriFlfSmOrgF

WASHINGTON (AFP) - The widely anticipated takeover of a Texas energy giant by Texas Pacific Group and Kohlberg Kravis Roberts for more than 30 billion dollars, likely to be announced Sunday, showcases the insatiable appetite and deep pockets of private investment funds.

According to The New York Times, the board of TXU Corp. could agree to a buyout valued at between 30 billion and 45 billion dollars, if debt of roughly 12 billion dollars is included.

The parties in the expected transaction were not available to comment on the report.

The Natural Resources Defense Council, which has been involved in the negotiations, said late Saturday the deal will involve an unprecedented set of commitments by new owners to reverse the company's drive to build a raft of new coal power plants in favor of a new strategy to cut global warming pollution.

The new owners, the council said, were likely to withdraw permit applications for eight of eleven pulverized coal power plants proposed in Texas and throw their support behind a mandatory nationwide limit on global warming emissions.

snip>

Private money accounts for more than 17 percent of global mergers and acquisitions, compared with only 4.0 percent in 2000, the market data firm says.

Thanks to these funds, global mergers and acquisitions were expected to have climbed to a record 3.70 trillion dollars in 2006, topping the 3.32 trillion dollars attained in 2000 at the height of the Internet boom, according to Dealogic.

By contrast, the more "classic" types of operations -- strategic takeovers by one company of another -- were losing momentum.

more...

[ozymandius]

20. stocks deflate, bonds inflate

10:44

Dow 12,639.95 Down 7.53 (0.06%)
Nasdaq 2,503.00 Down 12.10 (0.48%)
S&P 500 1,451.18 Down 0.01 (0.00%)
10-Yr Bond 4.649% Down 0.029
NYSE Volume 752,838,000
Nasdaq Volume 482,307,000

10:30 am : More of the same for stocks as the blue-chip indices and Nasdaq continue to trade in opposing directions. While further consolidation in chip stocks continues to weigh on the latter, it is worth noting that not all semiconductor names are under pressure.

Advanced Micro Devices (AMD 15.00 +0.31), which is one of only three components (out of 18) in the PHLX Semiconductor Sector Index trading higher and is listed on the NYSE, is surging 2% amid renewed speculation as a leveraged-buyout candidate. After being in negative territory less than two weeks ago, the SOX is up nearly 4.5% over the last seven sessions. DJ30 +4.41 NASDAQ -7.17 SOX -0.5% SP500 +1.40 NASDAQ Dec/Adv/Vol 1524/1188/360 mln NYSE Dec/Adv/Vol 1233/1731/250 mln

[ozymandius]

21. Greenspan Warns U.S. Economy Could Slip Into Recession

Former U.S. Federal Reserve Chairman Alan Greenspan warned Monday that the American economy might slip into recession by year's end.

He said the U.S. economy has been expanding since 2001 and that there are signs the current economic cycle is coming to an end.

"When you get this far away from a recession invariably forces build up for the next recession, and indeed we are beginning to see that sign," Greenspan said via satellite link to a business conference in Hong Kong. "For example in the U.S., profit margins ... have begun to stabilize, which is an early sign we are in the later stages of a cycle."

-cut-

Greenspan said that while it would be "very precarious" to try to forecast that far into the future, he could not rule out the possibility of a recession late this year.*

http://www.cnbc.com/id/17343797

*So why did he open his big incompetent yap?

[54anickel]

25. Worst risk to market? Subprime mortgages

http://www.usatoday.com/money/markets/us/2007-02-26-subprime-usat_x.htm

WASHINGTON — Growing trouble in the subprime mortgage industry poses the greatest risk to financial markets right now, according to a survey of business economists to be released Monday.
The forecast by the National Association of Business Economics (NABE), which polled 47 top economists, called the subprime sector a more serious concern than hedge funds, which came in second.

GREENSPAN SPEAKS: Calls recession 'possible'

Subprime mortgage lenders provide higher-priced loans to consumers with impaired credit. Defaults and delinquencies among subprime borrowers have jumped since late 2006, and a number of lenders have shut down or scaled back their operations.

On Wednesday, for example, shares of subprime lender NovaStar Financial plummeted more than 42% to $10.10 after it announced a fourth-quarter loss of $14.4 million. Company officials said they weren't sure they'd post a profit in the next five years.

While the NABE finding illustrates concern about escalating problems in the subprime sector, it doesn't mean economists expect the difficulties to spark broader financial stress. Overall, they expect steady economic growth in 2007.

more...

[specimenfred1984]

32. Bank of America and Citibank Using This Fear to Monopolize Real Estate

They'll offer mortgage refinancing for zero cost to get the sub-prime lender's customers. Big banks own everyone and everything in today's fascist America.

[AnneD]

31. Gee Mrs.Cleaver....

that is a most becoming dress you're wearing today. Is it new"?
"Why no Eddie, I've had it for some time now."

We have had this going on for some time now. The only reason some of these companies have had any profit magrin is that they have laid off workers.

June needs to stick a fork in Eddie, he should be done already.

[54anickel]

26. Bubbles Brewing in Shanghai, Tokyo, and London

http://www.321gold.com/editorials/sirchartsalot/dorsch022307.html

"There is a bubble growing. Investors should be concerned about the risks," said Cheng Siwei, vice-chairman of China's National People's Congress in a January 31st interview with the Financial Times. "But in a bull market, people will invest relatively irrationally. Every investor thinks they can win. But many will end up losing. But that is their risk and their choice," Cheng warned.

In what might develop into the third biggest stock market bubble in history, ranked alongside Japan's Nikkei-225 of 1986-89, and the Nasdaq's 1999-2000 bull run, the Shanghai Composite "A" share Index, restricted mainly to Chinese nationals, has posted a 140% gain over the past 12-months, after soaring 46% in the fourth-quarter of 2006 alone. And without deliberate market intervention, the A-share market could inflate into a Nasdaq-like bubble.

How Beijing decides to deal with the Shanghai bubble, can have a great impact on the outlook for the Chinese economy, global commodity markets, and exporters in the region from Australia, Hong Kong, Japan, and Korea. Will Beijing try to prick the bubble and set-off a steep correction, or carefully calibrate a series of tightening measures to take some steam out of the market and simply flatten it out?

Sometimes, markets can boomerang on central banks and torpedo the most carefully designed strategies. Therefore, jawboning is usually the first act of official intervention in the market place, because it's cost free and doesn't change underlying market conditions. Siwei's remarks did trigger a 15% pullback from January's peak, as traders locked in profits from sky-high valuations, figuring that official warnings might turn into concrete steps to cool down the market.

Then on Feb 9th, the People's Bank of China (PBoC) tried to keep the market off balance, by warning that it would use a number of tools to keep flush liquidity conditions in check. "The central bank would use a combination of open market operations and higher required reserves for banks in an effort to stave off a credit-fuelled investment boom, and will make the yuan more flexible," it said.

The Shanghai "A" share index fell 2.5% to an intra-day low of 2,541, within minutes of the PBoC's threats, but then put in a reversal bottom, and closed 2.3% higher on the day. One week later, on February 15th, the "A" share index jumped more than 3% to an all-time closing high of 2,993. A total of 828 stocks rose while only 31 fell, and over 40 stocks in Shanghai rose by their 10% daily limits.

more...

[54anickel]

27. Reserve ratio hiked to absorb liquidity (China)

http://www.chinadaily.com.cn/china/2007-02/26/content_813529.htm

The central bank raised required reserve ratio for financial institutions engaged in deposit business by 0.5 percentage points to 10 percent yesterday, with analysts projecting more such hikes.

HSBC (China)'s chief economist Qu Hongbin said the country's central bank is increasing the deposit reserve ratio to absorb liquidity. "This year we can expect three more reserve ratio hikes," he said.

In fact, the Bank of America projects the ratio to rise to 11.5 percent this year.

The People's Bank of China (PBOC), or the central bank, has increased the deposit reserve ratio five times since last July, with the latest move expected to take 176.5 billion yuan ($23.22 billion) out of the banking pool. In a public statement, the PBOC attributed the hikes to rising currency liquidity caused by "unbalanced international payments generated by mounting trade surplus".

Official data show the country's outstanding yuan-dominated loans amounted to 23.1 trillion yuan ($2.96 trillion) in January, up 16 percent year on year. The growth rate was 0.9 percentage points higher than the end of last year and up 2.2 percentage points from that in last January.

more...

[54anickel]

28. History holds lessons for China and its partners

http://news.yahoo.com/s/ft/20070225/bs_ft/fto022520071042295867;_ylt=AqxgMpSyF7xZnrNMTFiBsbT2ULEF

A rising Asian power has emerged as an export powerhouse and enjoys rapid, export-led growth fuelled by extraordinarily high savings and investment rates. Its technological capacity is upgraded at prodigious rates and its businesses threaten an ever greater swathe of industry in Europe and the US. Its high level of central bank reserves and burgeoning current account surplus lead to claims that its exchange rate is being unfairly manipulated or, at a minimum, should be guided upwards. Its financial system is bank-centric, heavily regulated in ways that favour domestic institutions and has close ties to government and industry. Rapid productivity growth holds down product prices but asset price inflation is rampant.

US congressional leaders demand radical action to contain the economic threat. Delegations of senior US economic officials engage in "dialogue" with their counterparts about the many aspects of the country's economic policies that promote imbalances, warning of the congressional demons who stand ready to act if "results" are not achieved quickly.

All of this describes what is happening in and with China today. It also describes the Japanese economy in the late 1980s and early 1990s before its lost decade of deflation and considerable deterioration in its international relations. While there are obvious differences, notably China's much lower level of development, the similarities are striking enough to invite an effort to draw some lessons for China and its partners from the earlier Japanese experience.

The definitive history of Japan's dismal decade has yet to be written. But almost all knowledgable observers would agree that significant elements included the bursting of the stock market and land bubbles, the resulting problems in the financial system, the collapse of aggregate demand as banks stopped extending credit and the difficulty of moving from export-led growth to domestic demand-led growth once consumer and business confidence had been lost.

In retrospect, Japanese officials made several important policy errors. In order to avoid further yen appreciation after the 1987 Louvre agreement, they followed easy monetary and financial policies that gave rise to huge asset price bubbles and expansions in credit that set the stage for the subsequent downturn. They failed, at a moment when consumers were enjoying record increases in wealth, to encourage a shift to domestic demand-led growth. They also allowed problems in the banking system to fester rather than confront them directly. The result of these mistakes was that Japan did less than it could have done to prevent the serious problems of the 1990s and was not well positioned to address them when they arose.

more...

[54anickel]

34. Stocks Lower on Concerns of Correction

http://biz.yahoo.com/ap/070226/wall_street.html?.v=29

NEW YORK (AP) -- Stocks fell Tuesday as concerns about a market correction offset investor optimism that acquisition activity is on pace to set a record this year.

The $45 billion buyout of electric utility TXU Corp. injected confidence into the market that merger and acquisition activity could surpass last year's record $4 trillion level. The deal, led by a consortium of buyout shops that include Kohlberg Kravis Roberts & Co. and Texas Pacific Group, would go down as the largest leveraged buyout in U.S. history.

Other deals announced before the opening bell included Station Casinos Inc., which agreed to be bought by a private equity firm started by the company's founding family. Temple-Inland Inc., a conglomerate that offers everything from packaging material to financial services, announced it plans to separate itself into three standalone public companies.

However, stocks were unable to sustain gains amid speculation that the market may be in for a correction. The Dow Jones industrials, after hitting a peak last week, fell for three straight sessions in their worst weekly decline since August.

"Despite the buyout news, we're seeing the broader market a little concerned that we've had such strength without a correction," said Peter Dunay, an investment strategist with New York-based Leeb Capital Management. "We may be in a period where the market wants to step back for a bit."

more...

[citizen snips]

36. Private-Equity Firms to Buy TXU for $32B

DALLAS (AP) -- TXU Corp., Texas' largest electricity producer, said Monday it has agreed to be sold to a group of private-equity firms for about $32 billion in what would be the largest private buyout in U.S. corporate history if shareholders and regulators go along.

Kohlberg Kravis Roberts & Co. and Texas Pacific Group led a group that included Goldman Sachs & Co. and three other Wall Street firms that will pay $69.25 per share for TXU. They will also assume about $13 billion in debt.

The firms won support for the buyout from some environmentalists who have criticized TXU by agreeing to sharply scale back TXU's controversial $10 billion plan to build 11 new coal-fired power plants that would produce tons of new greenhouse gas emissions.

They also agreed to cut electricity prices 10 percent, which they said would save TXU residential customers more than $300 million per year, and limit prices until September 2008.

TXU directors voted Sunday night to recommend that shareholders approve the sale. The price represents a 15 percent premium to TXU's closing stock price on Friday. TXU shares rose $8.07, or 13.5 percent, to $68.09 in midday trading on the New York Stock Exchange after briefly reaching a new 52-week high of $68.45.

more...
http://biz.yahoo.com/ap/070226/txu_sale.html?.v=18

[citizen snips]

37. XM Radio Posts Narrower 4Q Loss

McLEAN, Va. (AP) -- XM Satellite Radio Holdings Inc., which last week announced plans to combine with rival Sirius, said Monday a 45 percent jump in revenue and a tighter leash on marketing costs helped narrow its fourth-quarter loss.

The Washington-based company, which has never reported a profit, said it lost $263.1 million, or 90 cents per share, after paying preferred dividends in the final three months of 2006. That beat a loss of $270.4 million, or $1.22 per share, a year ago.

The fourth-quarter loss includes a one-time charge of $57.6 million to reflect the declining value of XM's 23 percent stake in Canadian Satellite Radio. Excluding that one-time charge, XM lost 70 cents per share, a penny better than the consensus estimate of Wall Street analysts surveyed by Thomson Financial.

XM shares rose 10 cents, or 0.7 percent, to $15.20 in midday trading on the Nasdaq Stock Market.

more...
http://biz.yahoo.com/ap/070226/earns_xm_radio.html?.v=16

[citizen snips]

38. U.S. Hybrid Car Sales Continue to Rise

DETROIT (AP) -- U.S. sales of gas-electric hybrid vehicles rose 28 percent from 2005 to 2006, but the rate of growth is starting to slow, according to a company that analyzes automotive industry data.

Consumers bought 254,545 hybrids last year as gasoline prices hit $3 per gallon or more for much of the year, up from 199,148 in 2005, according to nationwide auto registration data compiled by R.L. Polk & Co. and released on Monday.

The rate of growth was the second-slowest since 2000, due in large part to car buyers having more environmentally friendly options, plus expiration of some tax credits on Toyota hybrids, said Lonnie Miller, director of industry analysis for R.L. Polk.

Miller expects the growth to continue, though, because demand is still strong and three new hybrid models are in the works this year.

more...
http://biz.yahoo.com/ap/070226/hybrid_sales.html?.v=4

[citizen snips]

39. JetBlue Cancels 68 Flights Due to Storm

NEW YORK (AP) -- JetBlue canceled 68 flights because of snow Monday, nearly a week after the airline pledged to compensate customers for more than a thousand canceled flights from the Valentine's Day storm two week earlier.

The canceled flights at John F. Kennedy International Airport affected flights to or from Columbus, Ohio; Richmond, Va.; Washington, D.C., Portland, Maine; and Chicago. The company also canceled flights into and out of Chicago and the Washington, D.C., area over the weekend.

The cancellations were an attempt to make sure crews and planes were situated so the company could quickly resume operations after the snow, JetBlue Airways Corp. spokeswoman Alison Eshelman said.

The storm brought 2 inches to Manhattan; 2 to 4 inches in the area.

more...
http://biz.yahoo.com/ap/070226/jetblue_cancellations.html?.v=6

[citizen snips]

40. Microsoft Acquires Medstory

NEW YORK (AP) -- Microsoft Corp. made its first foray Monday into the growing consumer health care market with its acquisition of Medstory, a closely held company that is developing an Internet search engine for health information.

Microsoft didn't reveal the purchase price. Chief Executive Steve Ballmer made the announcement of the acquisition during his keynote at the Health Information and Management Systems Society Conference in New Orleans Monday. He also announced The Connected Health Framework Architecture and Design Blueprint, the first in a series of guidance documents and tools Microsoft has created for health care providers.

The decision by Microsoft to enter the consumer health care market and participate more fully in the overall industry is part of a bigger strategy to diversify from its core product lines of Windows and Office, which make up 90 percent of its earnings, but are maturing markets with lower growth potential.

Microsoft has said in order to spark more growth, it needs to enter markets that will substantially expand. Earlier this month, Ballmer noted that consumer health care is an area where the company would be making upcoming announcements

more...
http://biz.yahoo.com/ap/070226/microsoft_acquisition.html?.v=2

[citizen snips]

41. Sector Snap: Airline Stocks Slip

NEW YORK (AP) -- Airline stocks slipped Monday as winter weather pushed its way to the East Coast, driving up crude oil prices and grounding hundreds of flights.

The Amex Airline Index fell 1.1 percent, with eight of 11 component stocks declining. Most of the percentage swings were slight, less than 2 percent.

Snowstorms, which dropped up to 4 inches of snow in the New York area and more in the Midwest, helped drive crude oil prices as high as $61.75 per barrel on the New York Mercantile Exchange, before they moved back to $61.38, up 24 cents, in afternoon trading.

Traders anticipated increased heating oil demand due to the storm. Higher crude prices tend to hurt airline stocks because jet fuel is one of the industry's top costs.

more...
http://biz.yahoo.com/ap/070226/airlines_sector_snap.html?.v=1

[AnneD]

58. Mattman...

I've been meaning to tell you....big thanks for the sector reports-they are a nice addition to the thread and I appreciate them. I have almost completely stopped watching the evening business news. I'm so well informed just reading this thread. :applause:

[citizen snips]

62. No problem

Its good to not have to sit back and listen to Kudlow or Cramer.

[citizen snips]

42. Sector Snap: Shares of Transports Fall

NEW YORK (AP) -- Shares of transportation stocks traded lower Monday after a pair of analysts cautioned investors about prospects for the sector in 2007.

Investors pulled money from even the highest quality names in the trucking, railroad and freight forwarding industries.

Shares of less-than-truckload carrier Con-way Inc. fell $1.62, or 3.1 percent, to $50.52 in midday trading. Shares of rival YRC Worldwide Inc. lost $1.56, or 3.4 percent, to $44.81. Meanwhile, shares of truckload carrier J.B. Hunt Transport Services Inc. retreated 97 cents, or 3.5 percent, to $27.10, while shares of Heartland Express gave up 52 cents, or 3 percent, to $17.10. All the stocks trade on the Nasdaq Stock Exchange.

Among the railroads, shares of Burlington Northern Santa Fe Corp. lost $2.46, or 2.9 percent, to $81.45. Shares of CSX Corp. gave up 90 cents, or 2.2 percent, to $39.52, while shares of Norfolk Southern declined $1.11, or $2.2 percent, to $49.84. All three names trade on the New York Stock Exchange.

more...
http://biz.yahoo.com/ap/070226/transportation_sector_snap.html?.v=1

[citizen snips]

43. Sector Snap: Internet Search

NEW YORK (AP) -- Shares of Internet search providers were trading mixed Monday, with Yahoo Inc. up slightly following positive early reports of its new search advertising system, known as Project Panama.

ComScore Networks, in a sampling of 1 million U.S. Internet users, found that Yahoo saw a "noticeable lift in its sponsored click-through rate" in the two weeks after the launch of the new system.

Click-through rate refers to the number of total clicks on sponsored search ads, divided by total searches. Yahoo saw a 5 percent increase in its click-through rates in the week ending Feb. 11, and a 9 percent jump in the week ending Feb. 18, according to comScore.

Panama is an upgrade to Yahoo's search engine, designed to boost ad sales. It matches advertisements to search queries, helping the company earn more money by charging each time a user clicks an ad.

more...
http://biz.yahoo.com/ap/070226/internet_search_sector_snap.html?.v=1

[citizen snips]

44. Sector Snap: Film Companies

NEW YORK (AP) -- Sony Inc.'s film studios landed the top flick of the weekend with "Ghost Rider," but Time Warner Inc. took the industry gold at Sunday's Academy Awards with "The Departed."

Martin Scorsese's "The Departed," a bloody gang tale, picked up "Best Motion Picture" and "Best Director," along with two more Oscars, at the Hollywood ceremony. The film was released by Time Warner unit Warner Bros.

Sony's comic-book adaptation "Ghost Rider" features Nicolas Cage as a motorcycle stunt driver working as a collector of evil souls for the devil. The film generated $19.7 million in weekend box office ticket sales.

New Line Cinema raked in $15.1 million with the debut of its psychological thriller "The Number 23," which stars Jim Carrey. Warner Bros. generated $8 million with "Music and Lyrics." Both studios are Time Warner units.

more...
http://biz.yahoo.com/ap/070226/film_companies_sector_snap.html?.v=1

[citizen snips]

45. Sector Snap: Electric Utilities Jump

NEW YORK (AP) -- Shares of electric utilities and power producers jumped Monday, as analysts speculated who could be next after TXU Corp. agreed to the biggest leveraged buyout in U.S. corporate history.

Texas' largest electricity producer agreed to be sold to a group of private-equity firms for about $32 billion. The announcement helped push the Philadelphia Utility Sector Index up 2.9 percent, with all 20 of its component stocks gaining. The news helped power several companies to new 52-week highs early in the session.

The biggest beneficiaries are likely companies with solid merchant power operations, which make electricity and sell it on the wholesale market, Merrill Lynch analyst Jonathan Arnold wrote in a research report.

He highlighted NRG Energy Inc., Exelon Corp. and Edison International, among others.

more...
http://biz.yahoo.com/ap/070226/utilities_sector_snap.html?.v=1

[citizen snips]

46. Regulators Scrutinize MGM Joint Venture

LAS VEGAS (AP) -- The reign of Hong Kong casino magnate Stanley Ho in Macau's crime-ridden past will be scrutinized Tuesday by Nevada gambling regulators, who will decide whether it should jeopardize a joint venture between his daughter Pansy and MGM Mirage.

Pansy Ho and MGM Mirage Inc. are constructing a $1.1 billion casino in the Chinese enclave, the most lucrative gambling market in the world and a short ferry ride from Hong Kong.

Regulators can force MGM to dissolve its partnership to keep its license in Nevada if it finds Pansy Ho to be an unsuitable partner. Such an outcome, while unlikely, would be devastating to MGM's plans to expand its casino and hotel operations in Asia with Macau as its linchpin.

Stanley Ho has long run up against allegations that he is linked to the organized crime gangs that allegedly ran VIP gambling rooms in his casinos when the Chinese territory was still under Portuguese control.

more...
http://biz.yahoo.com/ap/070226/macau_mgm.html?.v=1

[citizen snips]

47. Circuit City Shares Decline

NEW YORK (AP) -- Shares of Circuit City Stores Inc. fell Monday after an analyst downgrade on concerns over a slowdown in advanced TV sales, as well as the departure of the electronic retailer's chief financial officer.

In a Monday note to clients, William Blair & Co.'s Jack Murphy said Circuit City's sales growth in 2005 and 2006 was driven by advanced TV sales. He expects sales of advanced TVs -- which includes high-definition televisions -- are likely to moderate in 2007 as the rate of unit growth slows and prices begin to fall.

"We estimate Circuit City advanced TV sales growth will slow from 80% or greater growth in 2006 to approximately 25 percent growth in 2007 (we assume Circuit City will outpace industry growth by 5 percentage points in 2007)," Murphy wrote.

"Using these assumptions," he added, "the advanced TV category contribution to sales growth would fall from 13 percentage points in 2006 to 7 percentage points in 2007."

more...
http://biz.yahoo.com/ap/070226/circuit_city_mover.html?.v=1

[citizen snips]

48. Cybex Shares Slip on Downgrade

NEW YORK (AP) -- Shares of Cybex International Inc. were down Monday, after an analyst said the fitness equipment maker's new products have failed to lift its revenue.

Oppenheimer & Co. analyst Barry Sine downgraded the stock to "Neutral" from "Buy," and cut his earnings projections for Medway, Mass.-based Cybex. He now expects 33 cents per share in 2007, down from 45 cents. In a client note, he said sales of the company's most important product, the Arc Trainer elliptical cardiovascular machine, are slowing down.

"The reason for our downgrade is that revenue steadily decelerated during 2006, particularly in the core professional cardiovascular equipment segment," he said. Sales in that segment increased .7 percent in the fourth quarter.

If exercise clubs decide to buy cardiovascular machines from Cybex's competitors, Sine said, they will also look to those companies when buying other equipment.

more...
http://biz.yahoo.com/ap/070226/cybex_mover.html?.v=1

[citizen snips]

49. Treasuries Advance on Expectations Housing Will Slow Economy

Feb. 26 (Bloomberg) -- Treasuries rose, pushing yields to their lowest in seven weeks, on expectations weakness in housing will slow the economy.

U.S. government debt may get a boost from a Commerce Department report later this week expected to show new home sales dropped last month. Investors also speculate rising perceived risk in the subprime mortgage market will offset recent signs of stabilization in residential real estate.

``There's a bias for lower rates because of weaker fundamentals,'' said Robert Millikan, who manages about $5 billion in assets as director of fixed income in Raleigh, North Carolina, at BB&T Asset Management Inc. ``The housing drag will be in effect all year. Even if it doesn't take away from economic growth, it isn't adding anything.''

The yield on the benchmark 10-year note fell more than 4 basis points, or 0.04 percentage point, to 4.63 percent, the lowest since Jan. 5, at 1:53 p.m. in New York, according to New York-based bond broker Cantor Fitzgerald LP. The price of the 4 5/8 percent security due in February 2017 climbed 11/32, or $3.44 per $1,000 face amount, to 99 31/32.

more...
http://www.bloomberg.com/apps/news?pid=20601009&sid=a8he8ZEOTSvA&refer=bond

[citizen snips]

50. Gold Rises; Higher Energy Costs Spur Demand for Inflation Hedge

Feb. 26 (Bloomberg) -- Gold in New York rose, extending a rally to a nine-month high, as climbing energy costs boosted the appeal of the precious metal as a hedge against inflation.

Gold sometimes moves in the same direction as crude oil, which last week rose above $61 a barrel for the first time this year. Gold has more than doubled and oil has almost tripled in the past five years.

``The oil market and the general strength of commodities are helping gold,'' said Stephen Platt, a commodity analyst at Archer Financial Services Inc. in Chicago. ``Longer-term, there are still inflation concerns.''

Gold futures for April delivery rose $3.10, or 0.5 percent, to $689.80 an ounce on the Comex division of the New York Mercantile Exchange, the highest close since May 17. Prices climbed 2.1 percent last week and have gained 8.1 percent this year.

more...
http://www.bloomberg.com/apps/news?pid=20601012&sid=aluZN5MwjqJo&refer=commodities

[citizen snips]

51. Nickel, Lead Advance to Records in London on Supply Concern

Feb. 26 (Bloomberg) -- Nickel climbed to a record for a second day in London on speculation that dwindling supplies won't satisfy demand for the metal used in stainless steel. Lead rose a new high for a seventh consecutive session.

Nickel inventories monitored by the London Metal Exchange increased 18 metric tons to 3,510 tons, the exchange said in a daily report. The amount due to leave LME warehouses, or canceled warrants, advanced for the first day in four by 34 percent to 1,626 tons, leaving 1,884 tons available. Stockpiles have slumped 90 percent in the past year, to near 15-year lows and less than one day of global consumption.

``It's no surprise that these minor metals are rising in this fashion because they are in genuine shortage and buyers want to know whether they will be able to source material,'' Alex Heath, who heads the base-metals trading team at RBC Capital Markets in London, said by phone.

Nickel for delivery in three months on the LME advanced $550, or 1.4 percent, to $41,350 a metric ton as of 5:56 p.m. local time.

more...
http://www.bloomberg.com/apps/news?pid=20601012&sid=aHZI_RDV6org&refer=commodities

[citizen snips]

52. Pimco, Franklin Heed Bernanke, Buy Index-Linked Bonds

Feb. 26 (Bloomberg) -- Treasury notes that protect investors from an increase in consumer prices are posting their biggest gains in three years as fund managers from Franklin Resources Inc. to Pacific Asset Management Co. grow increasingly concerned inflation will accelerate.

Treasury inflation-protected securities, or TIPS, have returned 1.15 percent this year, compared with a loss of 0.3 percent last year and a gain of 0.29 percent in 2005 during the same periods, according to data complied by Merrill Lynch & Co. By contrast, regular Treasuries are up 0.78 percent this year.

The investors are hedging their bets as Federal Reserve Chairman Ben S. Bernanke warns inflation remains a risk. The difference between yields on TIPS maturing in one year and comparable Treasuries has jumped to 2.79 percent from 2.46 percent at the end of 2006, the highest since June. The so-called breakeven rate suggests investors anticipate inflation will average that amount over the next 12 months.

``Even in a low inflation environment, it's prudent for an investor to have something that protects them against upward spikes,'' said Tony Coffey, who helps manage $12 billion in assets at Franklin Resources in San Mateo, California. ``We've been buying more'' longer-maturity TIPS over the last three months.

more...
http://www.bloomberg.com/apps/news?pid=20601009&sid=auSCbXMBL2e0&refer=bond

[citizen snips]

53. Hedge Fund Copycats Catch Mutual Fund Buyers as Returns Dwindle

Feb. 26 (Bloomberg) -- Just when mutual funds are about to peddle the closest thing to hedge funds to individuals, the returns of these exclusive investments for millionaires are drying up.

Hedge funds have risen at an average annual rate of 8.4 percent since 2000, less than half the gains of the 1990s, according to data compiled by Chicago-based Hedge Fund Research Inc. Vanguard Group's flagship mutual fund tracking the Standard & Poor's 500 Index climbed 15.6 percent last year, compared with the 6 percent drop of Goldman Sachs Group Inc.'s biggest hedge fund, whose management fees are about 10 times steeper.

The subpar performance isn't stopping the world's largest financial institutions, including UBS AG in Zurich and JPMorgan Chase & Co. in New York, from chasing higher fees by offering copycat hedge funds to people with as little as $1,000 to invest. Assets of the so-called long-short funds almost doubled to $16.5 billion in the U.S. in the past two years, according to Financial Research Corp. of Boston, which tracks money flows.

``A lot of people buying these funds don't know what they're getting into,'' said Ross Levin, 47, president of Accredited Investors Inc., an Edina, Minnesota-based financial advisory firm that oversees $650 million.

more...
http://www.bloomberg.com/apps/news?pid=20601014&sid=aWquBXr08x_E&refer=funds

[citizen snips]

54. Sector Snap: Coal Producers

NEW YORK (AP) -- A proposed $32 billion buyout of TXU Corp., the largest electricity producer in Texas, may hurt sales at some coal miners.

Private equity investors Kohlberg Kravis Roberts & Co. and Texas Pacific Group teamed with Goldman Sachs Group Inc. to offer $69.25 per share for Dallas-based TXU.

To win support for the deal, the investment group agreed to scale back plans to build 11 coal-fueled power generators, which the Environmental Defense estimated would emit 78 million tons of carbon dioxide into the atmosphere a year.

The investors agreed to scotch plans for eight of the plants, cutting the amount of carbon emissions by 56 million tons a year. The group plans to proceed with three of the 11 coal-fueled plants initially proposed.

more...
http://biz.yahoo.com/ap/070226/coal_sector_snap.html?.v=1

[citizen snips]

55. GE Acquisition of Trustreet Closes

SCOTTSDALE, Ariz. (AP) -- General Electric Co. said Monday its GE Capital Solutions unit completed buying Trustreet Properties Inc., a restaurant real estate investment trust, for about $3 billion.

With the closure of the $17.05 per common share deal, Trustreet Properties is now part of Scottsdale, Ariz.-based GE Capital Solutions, Franchise Finance.

Besides the common stock price, holders of Trustreet's Series A cumulative convertible preferred stock will receive, without interest, $25 per share plus any accrued and unpaid dividends through the closing date of the merger, and holders of Trustreet's 7.5 percent Series C redeemable convertible preferred stock will receive, for each share of Series C stock issued and outstanding immediately prior to the effective time of the merger, one share of 7.5 percent Series C redeemable convertible preferred stock of the surviving corporation in the merger. Trustreet said in a statement.

GE, which said the acquisition significantly expands the company's financial services offerings in the restaurant industry, also said it will maintain a former Trustreet office in Orlando, Fla., as well as its current offices in Arizona.

more...
http://biz.yahoo.com/ap/070226/ge_trustreet.html?.v=1

[ozymandius]

56. The Witching Hour cometh.

3:07
Dow 12,631.94 Down 15.54 (0.12%)
Nasdaq 2,502.09 Down 13.01 (0.52%)
S&P 500 1,449.58 Down 1.61 (0.11%)
10-Yr Bond 4.633% Down 0.045
NYSE Volume 2,284,883,000
Nasdaq Volume 1,506,419,000

3:00 pm : The major averages still trade in negative territory, but losses on the blue-chip indices remain modest at best. Of the few areas bucking today's bearish bias, Independent Power Producers continues to turn in the best performance (+7.7%), fueled by TXU Corp.'s (TXU 67.91 +7.89) decision to go private.

Paper Packaging (+5.2%) ranks second as Temple-Inland (TIN 62.50 +7.55) soars 14% to an all-time high after announcing plans to split itself into three stand-alone public companies. Unfortunately for the bulls, seven of the eight remaining top performing S&P industry groups are also members of either the Utilities or Materials sectors. DJ30 -16.10 NASDAQ -13.82 SP500 -1.94 NASDAQ Dec/Adv/Vol 1821/1160/1.44 bln NYSE Dec/Adv/Vol 1658/1588/1.12 bln

[citizen snips]

59. After the Close: Nordstrom, Kindred

NEW YORK (AP) -- Nordstrom Inc. will be among the stocks to watch after the closing bell Monday, when the Seattle-based department store operator is set to post fourth-quarter earnings results.

Analysts polled by Thomson Financial forecast profit of 90 cents per share. They expect sales to rise 13 percent to $2.6 billion for the quarter.

JPMorgan analyst Charles Grom wrote in a research report he expects same-store sales growth of 8.3 percent, outpacing costs. Same-store sales, or sales at outlets open at least a year, are a closely tracked gauge of a retailer's strength. Grom will pay careful attention to performance in the women's apparel, which represents more than a third of sales.

Shares of Nordstrom fell $1.10 to $56.98 in afternoon trading on the New York Stock Exchange.

more...
http://biz.yahoo.com/ap/070226/after_the_close_nordstrom.html?.v=1

[citizen snips]

60. Chips Snap: AMD Up on Buyout Rumors

NEW YORK (AP) -- Semiconductor stocks edged lower Monday, despite a few healthy gainers including Advanced Micro Devices Inc., whose shares spiked on rumors that the company is talking to private equity firms about a leveraged buyout.

AMD shares, which have traded between $14.43 and $42.70 over the last 52 weeks, were up 74 cents, or 5 percent, at $15.43 in morning trading on the New York Stock Exchange. Company representatives were not available for comment on the buyout rumors.

The Philadelphia Semiconductor Sector Index dropped 1.76 points to 486.74.

Elsewhere in the sector, shares of Sirf Technology Holdings Inc., a maker of chips used in global positing systems, fell sharply after the company disclosed several inside sales made by a trust affiliated with Banatao Diosdado, a co-founder and chairman.

more...
http://biz.yahoo.com/ap/070226/sector_snap_semiconductors.html?.v=1

[citizen snips]

63. Grains Decline, Soybeans Up

CHICAGO (AP) -- Soybean futures advanced while grain futures finished mostly lower Monday on the Chicago Board of Trade.

Wheat for March delivery fell 1 1/4 cent to $4.83 a bushel; March corn fell 4 3/4 cents to $4.25 1/2 a bushel; March oats rose 2 1/2 cents to $2.53 a bushel; March soybeans rose 1/2 cent to $7.78 3/4 a bushel.

Beef futures increased while pork futures finished mixed on the Chicago Mercantile Exchange.

April live cattle rose 1.13 cent to 97.30 cents a pound; March feeder cattle rose 1.73 cent to $1.0105 a pound; April lean hogs rose .12 cent to 66.87 cents a pound; March pork bellies fell .27 cent to $1.0430 a pound.

http://biz.yahoo.com/ap/070226/board_of_trade.html?.v=3

[citizen snips]

65. Nasdaq Leaders & Laggards: RYAAY, RIMM

NEW YORK (AP) -- Ryanair Holdings PLC, Wynn Resorts Ltd., and CH Robinson Worldwide Inc. together helped weighed down the Nasdaq 100 Monday.

The Nasdaq 100, which includes 100 of the largest nonfinancial securities traded on the Nasdaq, lost 9.18 to end the session at 1,830.59. The broader Nasdaq composite slipped 10.58 to 2,504.52.

U.S. shares of Irish budget airline Ryanair Holdings fell $3.24, or 3.3 percent, to $93.70, following the airline sector down.

Wynn, a casino company, gave up $3.43, or 3.3 percent, for a $100.38 finish as Nevada gaming regulators scrutinized an alliance between MGM Mirage Inc. and the daughter of Macau casino operator Stanley Ho. Pansy Ho and MGM Mirage are building a $1.1 billion casino in the Chinese enclave of Macau, the most lucrative gambling market in the world, where Wynn also operates.

more...
http://biz.yahoo.com/ap/070226/apfn_nasdaq_100_laggards.html?.v=1

[citizen snips]

66. DJIA Leaders & Laggards: Citigroup, MRK

NEW YORK (AP) -- Citigroup Inc. suffered the biggest loss Monday on the Dow Jones Industrial Average after the company said the Securities and Exchange Commission is investigating tax issues stemming from the New York bank's acquisition of a financing company in 2000.

The index was ended down 15.22 points at 12,632.26.

Citigroup gave up $1.09, or 2 percent, to $52.68 on the New York Stock Exchange.

American Express Co. shed 79 cents to close at $57.23 on the NYSE, after the New York company's chief financial officer left to take the same title at Citi.

more...
http://biz.yahoo.com/ap/070226/apfn_djia_laggards.html?.v=1

[citizen snips]

67. S&P 500 Leaders & Laggards: CIEN, TXU

NEW YORK (AP) -- Ciena Corp., a networking equipment company, dragged the Standard & Poor's 500 Index lower Monday.

The S&P 500 Index finished down 1.82 at 1,449.37.

Shares of Ciena, which is set to release fiscal first-quarter results on Thursday, fell $1.16, or 3.6 percent, to $31.34 on the Nasdaq Stock Market.

Peabody Energy Corp. was also among the laggards, losing $1.53, or 3.4 percent, to $42.91 on the NYSE as some analysts said a proposed $32 billion buyout of TXU Corp. -- the largest electricity producer in Texas -- could hurt sales of some coal miners.

Terex Corp. finished down $2.30, or 3.2 percent, at $68.72 on the NYSE, after hitting a new 52-week high of $72.75 earlier in the session.

more...
http://biz.yahoo.com/ap/070226/apfn_s_p_500_laggards.html?.v=1

[ozymandius]

68. closing numbers and blather

Dow 12,632.26 Down 15.22 (0.12%)
Nasdaq 2,504.52 Down 10.58 (0.42%)
S&P 500 1,449.37 Down 1.82 (0.13%)
10-Yr Bond 4.631% Down 0.047
NYSE Volume 2,823,506,000
Nasdaq Volume 1,945,941,000

4:20 pm : So much for kicking off a fresh new week on a positive note, as underlying worries about the pace of economic growth, valuation concerns, and a lack of key leadership offset a slate of encouraging M&A news.

Before the opening bell, it seemed as though the blue-chip indices would snap a three-day losing streak as investors initially applauded some Monday-morning deal making.

TXU Corp. (TXU 67.97 +7.95) soared more than 13% to an all-time high after agreeing to be taken private for $45 bln (including debt). That qualified it as the largest private-equity deal ever.

Reports that Dow Chemical (DOW 44.99 +1.54) could get a leveraged buyout bid worth up to $54 bln in the next few weeks further underscored that there is still a lot of liquidity on the sidelines. However, since the latter deal has not been confirmed and the TXU deal merely prompted industry-wide takeover speculation in one of the S&P 500's least influential sectors (Utilities), investors weren't overly convinced that stocks as a whole remain attractively valued, especially after such an impressive run-up since bottoming out last July.

As a reminder, the broader market has not retreated as much as 2% since the rally began, again leaving many to believe a correction or an extended consolidation period is long overdue.

Adding insult to injury, former Fed Chairman Alan Greenspan suggesting it is possible there could be a recession later this year left investors revisiting the historical significance of an inverted yield curve and its ability to precede U.S. economic downturns. Sure, bonds rallied for a second straight day, but the spread between the 2-year and 10-year notes slipping deeper into inversion (14 basis points) took an added toll on the rate-sensitive Financials sector.

Citigroup (C 52.68 -1.09) was the day's worst performing Dow component (-2.0%) and, as a heavily-weighted S&P 500 constituent, exacerbated sector weakness. While the brokers have been one of the leading groups in the recent bull market, the recent one-two punch of a technical break-down in the AMEX Securities Broker/Dealer Index and lingering concerns over subprime lending exposure also overshadowed the healthy M&A activity behind our Overweight rating on the financial sector.

Greenspan's comments, coupled with the N.A.B.E. predicting the slowest economic growth for the U.S. in five years and an expected downward revision to the originally reported 3.5% Q4 GDP number on Wednesday, also left valuations vulnerable in economically-sensitive areas like Consumer Discretionary, the day's worst performing S&P sector, Technology and Industrials. DJ30 -15.22 DJTA -2.4% DJUA +2.6% DOT -0.5% NASDAQ -10.58 NQ100 -0.5% R2K -0.4% SOX -0.1% SP400 -0.4% SP500 -1.82 XOI +0.4% NASDAQ Dec/Adv/Vol 1802/1219/1.89 bln NYSE Dec/Adv/Vol 1674/1616/1.50 bln