STOCK MARKET WATCH, Wednesday September 27

[ozymandius]

Wednesday September 27, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 847 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2100 DAYS
WHERE'S OSAMA BIN-LADEN? 1806 DAYS
DAYS SINCE ENRON COLLAPSE = 1767
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 September 26, 2006

Dow... 11,669.39 +93.58 (+0.81%)
Nasdaq... 2,261.34 +12.27 (+0.55%)
S&P 500... 1,336.34 +9.97 (+0.75%)
Gold future... 597.10 +1.20 (+0.20%)
30-Year Bond 4.71% +0.02 (+0.34%)
10-Yr Bond... 4.59% +0.03 (+0.66%)






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 Ike Iossif

SUMMARY

Last week's price action was quite important because it gave us plenty of information with regard to the "set-up" going into this week. Knowing the "set-up" allows us to determine--at least for the short-term--whether the underlying trend remains intact, or if there has been a change under the surface. So, let's examine the "set-up" at hand--as we see it.

First of all, the chart pattern of the SP/Dow/NASDAQ is the type that three out of five times results in one more marginal new high. Second, if you look at the table below, you'll notice that price is very close to support for all the major indices. At the same time--as we already pointed out--most indicators are near their respective support levels as well. In other words, the chart pattern, the price level, and the technical indicators all suggest that coming into this week we had a "bullish set-up" and thus, it is perfectly justifiable that the major indices reversed to the upside. Moreover, they should be able to rally further and make marginal new highs. (Please also read "The 4 year cycle is a function of liquidity.")

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

[murielm99]

4. Thank you.

I look forward to your morning post.

[ozymandius]

6. You're welcome.

And thank you for saying.

:hi:

[ozymandius]

2. Today's reports

8:30 AM Durable Orders Aug
Briefing Forecast 1.5%
Market Expects 0.4%
Prior -2.5%

10:00 AM New Home Sales Aug
Briefing Forecast 1020K
Market Expects 1040K
Prior 1072K

10:30 AM Crude Inventories 09/22
Briefing Forecast NA
Market Expects NA
Prior -2848K

[UpInArms]

29. Surprise! Durable goods orders fall 0.5% on broad-based weakness (Ruh-Roh!

8:30 AM ET 9/27/06 U.S. AUG. ELECTRONICS ORDERS FALL 4.7%

8:30 AM ET 9/27/06 U.S. AUG. DURABLE-GOODS INVENTORIES UP 0.2%

8:30 AM ET 9/27/06 U.S. AUG. DURABLE-GOODS UNFILLED ORDERS INCREASE 0.4%

8:30 AM ET 9/27/06 U.S. AUG. CORE CAPITAL EQUIPMENT SHIPMENTS UP 0.3%

8:30 AM ET 9/27/06 U.S. AUG. DURABLE-GOODS SHIPMENTS RISE 1.9%

8:30 AM ET 9/27/06 U.S. AUG. CORE CAPITAL EQUIPMENT ORDERS FALL 0.3%

8:30 AM ET 9/27/06 U.S. AUG. DURABLE-GOODS ORDERS EX-TRANSPORTATION DOWN 2.0%

8:30 AM ET 9/27/06 U.S. AUG. DURABLE-GOODS ORDERS FALL 0.5% VS. +0.5% EXPECTED

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B3A69B208%2DCD1A%2D444A%2D9A86%2D7D1407E337CE%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - Despite increased demand for autos, orders for U.S.-made durable goods fell 0.5% in August as orders for aircraft, electronics, machinery, metals and electrical goods crumbled, the Commerce Department reported Thursday. It was the first back-to-back decline in orders since early 2003. July's decline was revised lower to 2.7%. The report showed weak demand in almost every sector except autos. Orders for core capital goods equipment - business investment goods - fell 0.3% in August. Shipments of core capital goods rose 0.3%. Economists were expecting a small gain of around 0.5% in orders.

[UpInArms]

37. U.S. Aug. new-home sales up 4.1% to 1.05 mil/May June and July rev'd lower

(adding line items on edit)

10:00 AM ET 9/27/06 FIRST YEAR-OVER-YEAR DROP IN MEDIAN SALES PRICE SINCE 2003

10:00 AM ET 9/27/06 U.S. AUG. NEW-HOME SALES FALL IN WEST TO 5-YEAR LOW

10:00 AM ET 9/27/06 U.S. JULY NEW-HOME SALES REVISED TO 1.009M, 3-YEAR LOW

10:00 AM ET 9/27/06 U.S. AUG. NEW-HOME INVENTORIES DIP TO 6.6-MONTH SUPPLY

10:00 AM ET 9/27/06 U.S. AUG. NEW-HOME MEDIAN SALES PRICE DOWN 1.3% Y-O-Y

10:00 AM ET 9/27/06 U.S. AUG. NEW-HOME SALES UP 4.1% TO 1.05M V. 1.04M EXPECTED

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B4A9E1C6E%2D3542%2D41E0%2D9537%2DD116DAC97F8E%7D&symbol=

WASHINGTON (MarketWatch) -- Sales of new homes unexpectedly increased 4.1% in August to a seasonally adjusted annual rate of 1.05 million from a three-year low in July, the Commerce Department reported Wednesday.

It was the first increase in new-home sales since March.

Sales are down 17.4% in the past year and are down 23% from the peak last July.
Sales in May, June and July were revised sharply lower. July's sales pace was revised to 1.009 million, the lowest since March 2003, from an earlier 1.072 million. See the full government report.

The median sales price of a new home fell 1.3% year-on-year to $237,000, the first year-on-year decline since 2003. The reported sales price does not account for the massive incentives builders have been offering to close deals.

According to the MarketWatch survey, economists were expecting sales to fall about 3.4% in August to a seasonally adjusted annual rate of 1.036 million. The August result is about 1.4% higher than expected. See Economic Calendar.

...more...

I wonder how much lower this number will be revised next month - as were May, June and July's numbers :grr:

[UpInArms]

38. further in that link: government reports are "statistically meaningless"

The government cautions that its housing data are subject to large sampling and other statistical errors. Large revisions are common.

The standard error is so high, in fact, that the government cannot be sure sales increased at all in August. The 4.1% increase is statistically meaningless.

[UpInArms]

40. DOE: Petroleum Inventories Report

10:30 AM ET 9/27/06 U.S. CRUDE SUPPLY DOWN 100,000 BRLS LAST WEEK: ENERGY DEPT.

10:30 AM ET 9/27/06 U.S. DISTILLATE SUPPLY UP 2.6 MLN BRLS: ENERGY DEPT.

10:30 AM ET 9/27/06 U.S. GASOLINE SUPPLY UP 6.3 MLN BRLS: ENERGY DEPT.

[Nimrod2005]

3. We'll see new all time high for the DOW today?

More importantly is the S&P at 52 week high. We'll take it.

[ozymandius]

7. looks quite possible

Those future charts are perky. It will be interesting to see what the numbers will do despite what the internal data says.

[ozymandius]

5. Oil prices rebound in Asia

SINGAPORE - Oil prices rose Wednesday in Asian trading amid lingering uncertainty about
OPEC's production plans.

Prices ranged high and low Tuesday as brokers weighed a healthy supply-demand balance against the possibility of a production cut by the Organization of Petroleum Exporting Countries.

By mid-afternoon Wednesday, light, sweet crude for November delivery had rebounded 35 cents to $61.36 in Asian electronic trading on the New York Mercantile Exchange. On Tuesday, it settled at $61.01, down 44 cents, after rising as high as $62.

November Brent crude on London's ICE futures exchange rose 14 cents Wednesday to $60.26 a barrel.

Traders were also acting on expectations that weekly government data to be released later Wednesday will show U.S. supplies of crude oil fell last week.

more

[ozymandius]

8. Families on Java island to be relocated

JAKARTA, Indonesia - Indonesia will resettle more than 3,000 families whose houses have been swamped by mud surging from a gas exploration site and will dump the sludge into the sea to avoid more destruction, the government said Wednesday.

The mud appeared after an accident occurred deep in a drilling shaft on the seismically charged island of Java. It now covers more than 665 acres and is currently being contained by an ever-expanding network of dams that are breached almost daily.

-cut-

The environment minister, who had earlier threatened to block efforts to dispose of the mud in the sea on grounds it might kill the fish, said the mud was not toxic and that he now supported the plan.

Police have said they intend to file criminal charges against nine employees from gas exploration company Lapindo Brantas, alleging its drilling activities caused the torrent and that its response was inadequate.

more

[Roland99]

22. Gas is rising a few pennies here. First time it's gone up in about 7 weeks

[wordpix]

53. can someone explain to me why natural gas is so low? Isn't it used for

heating and thus, is in demand?

[Roland99]

54. Still rather warm, eh?

[ozymandius]

9. London extends rally as US approaches highs

London equities continued to rally in opening trade on Wednesday, with strong momentum coming from fresh six-year highs on US indicies.

The FTSE 100 rose 0.6 per cent, or 35 points to 5,908.5 after notching up an increase of 1.3 per cent during the previous session, its biggest one-day percentage gain since July. The mid-cap FTSE 250 rose 0.5 per cent to 9,890.3, helped by strong newsflow in the housebuilding sector.

Improving global market sentiment after stronger than expected consumer confidence data lifted Wall Street markets overnight. The Dow Jones Industrial average closed 0.8 per cent higher, a rise of 93 points taking it to 11,669.4 its second highest closing level ever and its strongest reading since January 2000. The broader-based S&P 500 reached a five-year high of 1,336.3 a rally of 0.8 per cent.

London's heavyweight trio of banks, miners and oil stocks combined to drive the advance amid a feeling that the bullish US economic data indicated that recent declines on equities markets left stocks undervalued against the backdrop of improving sentiment.

http://news.yahoo.com/s/ft/20060927/bs_ft/fto092720060437038758

[Ghost Dog]

15. European shares near 5-year highs on M&A flurry

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2006-09-27T104737Z_01_L27342523_RTRIDST_0_MARKETS-EUROPE-STOCKS-UPDATE-2.XML

PARIS, Sept 27 (Reuters) - European shares flirted with new five-year highs on Wednesday, bolstered by takeover activity among utilities and retailers, while corporate earnings and firm U.S. and Asian market closes also helped sentiment.

Pleasing updates from Swedish fashion giant Hennes & Mauritz (HMb.ST: Quote, Profile, Research) and French carmaker PSA Peugeot Citroen (PEUP.PA: Quote, Profile, Research), and strength in mining and energy shares also spurred buying on one of the last trading sessions of the third quarter.

Catering firm Compass (CPG.L: Quote, Profile, Research) and insurer CNP (CNPP.PA: Quote, Profile, Research) fell after disappointing updates, but overall sentiment was positive after an unexpectedly big jump in U.S. consumer confidence eased concerns about the effect of an earnings slowdown.

By 1030 GMT, the pan-European FTSEurofirst 300 index <.FTEU3> was up 0.5 percent at 1,396.09 points.

The index was within a whisker of closing a 4-1/2 month gap during which European shares, bedevilled by inflation and interest rate worries, fell nearly 13 percent before rebounding.

Across Europe, Madrid's Ibex <.IBEX> jumped 1.8 percent, a day after it ended at its highest level since March 2000, rallying again on corporate moves among Spanish utilities.

Endesa (ELE.MC: Quote, Profile, Research) surged 6.6 percent after Germany's E.ON (EONG.DE: Quote, Profile, Research) raised its bid for it.

Talk swirled of further deals in the sector.

Spanish construction group ACS's (ACS.MC: Quote, Profile, Research) bid late on Tuesday to buy 10 percent of Iberdrola (IBE.MC: Quote, Profile, Research) is the first step in a three-way utility merger with Union Fenosa (UNF.MC: Quote, Profile, Research) and Gas Natural (GAS.MC: Quote, Profile, Research), La Vanguardia newspaper reported.

The rest of Europe was equally strong, with London's FTSE 100 index (.FTSE: Quote, Profile, Research) up 0.8 percent, Frankfurt's DAX <.GDAXI> 0.4 percent higher and Paris's CAC 40 <.FCHI> up 0.3 percent.

/more...

[ozymandius]

10. 'Bear market has begun'

Investor views on whether the credit cycle has turned differ widely between the cash and derivative markets, according to strategists at Deutsche Bank (NYSE:DB - news).

Gary Jenkins and Jim Reid, heads of credit strategy at Deutsche, said on Tuesday there was mounting evidence that a bear market was beginning.

-cut-

However, the views of investors are likely to differ widely depending on whether they are exposed to the cash bond market, or the market for credit default swaps, which offer insurance against non-payment of corporate debt.

-cut-

Second is the sharp fall in sentiment among housebuilders, which is at its lowest level since the early 1990s and shows strong correlation with consumer expenditure. Mr Reid said figures on Monday were the first to show negative annual house price growth in the US since the depression era.

more

[AnneD]

35. Morning Marketeers...

:donut: and lurkers. So good to see some of the regulars back again. Missed your posts Ghostdog. Asia has been most interesting as of late. I came across this article that gives some insite as to how bad it was in Houston in the 80's when we dealt with the oil bust,real estate bust, and savings and loan scandal at the same time. Having gone through that trauma, one doesn't forget the warning signs....which is why I have been so bearish for the last year. This is when I started paying attention to the market and to the economy. This is where I learned that the unemployment stats were rigged. They said unemployment was 'officially' 9.1% but our news folks were giving it a higher number and the want ads in Dec were 1 page front and back. It is a good read and can give you a feel for what can happen...


http://www.chron.com/disp/story.mpl/special/100years/1074418.html


Happy hunting and watch out for the bears.

[ozymandius]

11. GM reportedly demands billions for tie-up

LONDON (MarketWatch) -- General Motors is reportedly demanding a "multibillion" dollar payment from Renault and Nissan as the price to join the French and Japanese companies' alliance, according to a published report on Wednesday.

GM executives say they deserve a payment -- which would come on top of any share purchases made by Renault and Nissan -- because they enjoy a stronger global reach, The Wall Street Journal reported Wednesday.

Carlos Ghosn, chief executive of both Renault and Nissan, reportedly has expressed disappointment so far in GM's approach, the report continued.

more

[ozymandius]

12. Have fun folks!

It is that time again. Today's forecast (from one hack quoting another): irrational exuberance.

I hope you enjoy the dog and pony show as those numbers are enamored with themselves.

Ozy :hi:

[Roland99]

23. An extremist libertarian on another board said about the market's new high

that it was all "smoke and mirrors". Mentioned a move from commodities to stocks. This guy is as hard-core pure, unfettered free markets as you can get. A corporatist to the bone.

[Ghost Dog]

13. Nikkei rises at fastest pace in 2 months

http://www.ft.com/cms/s/2974fa78-4dd8-11db-8704-0000779e2340.html

Japan’s Nikkei 225 average rose at its fastest pace in two months on Wednesday, responding to strong overnight data on US consumer confidence.

The benchmark index’s advance accentuated the extent of the Japanese market’s dependence on US economic conditions at the moment, since there was little domestic news to explain its rise.

By the close of the day the Nikkei 225 was 2.5 per cent higher at 15,947.87. The broader Topix climbed 2.7 per cent to 1,591.04.

Strong confidence spurred gains across nearly all sectors, including both export-focused stocks reliant on the US and domestically focused sectors.

Among the biggest risers was the iron and steel sector, which jumped 3.2 per cent. The sector was also boosted by investor psychology after the revelation that steel and real estate had been the strongest share price climbers of the Koizumi era.

The real estate sector performed well despite lingering concerns about overvaluations, leaping 2.9 per cent.

/more...

[Ghost Dog]

18. Japan may slow fiscal reforms under new PM -S&P

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060927:MTFH37119_2006-09-27_09-57-27_T277941&type=comktNews&rpc=44

TOKYO, Sept 27 (Reuters) - Japan may slow the pace of fiscal reforms under its new Prime Minister Shinzo Abe, ratings agency Standard & Poor's said on Wednesday, a day after he formed his new cabinet with a "no growth, no fiscal consolidation" policy.

The ratings agency questioned Abe's preference for growth policies over fiscal consolidation, saying his stance may lead to a deceleration of the pace of fiscal consolidation.

Citing other factors such as parliament Upper House elections next year and reform fatigue left by his predecessor, the agency said Abe's new government may be unlikely to push fiscal consolidation measures that are hard for the public to swallow.

/more...

[Ghost Dog]

19. Japan econ min-hopes BOJ policy in line with govt

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060927:MTFH38233_2006-09-27_10-41-01_TKG002534&type=comktNews&rpc=44

TOKYO, Sept 27 (Reuters) - Japanese Economics Minister Hiroko Ota said on Wednesday she hoped the Bank of Japan's monetary policy will be consistent with that of the new government. "My hope is that BOJ will adopt policy consistent with the government's economic policy," Ota told a group of reporters a day after her appointment to Prime Minister Shinzo Abe's cabinet.

Ota also said that BOJ monetary policy should be based on the central bank's own decisions.

/...

[Ghost Dog]

20. Japan MOF's Omi: no need to act on euro/yen now

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2006-09-27T103211Z_01_TKU002535_RTRIDST_0_ECONOMY-JAPAN-OMI.XML

TOKYO, Sept 27 (Reuters) - Japan's new Finance Minister Koji Omi said on Wednesday he saw no need to comment or act on movements in the euro/yen rate at present but added that markets should not react to his comments because "I'm still an amateur on currencies".

"Currency rates should reflect economic fundamentals," Omi told reporters in a group interview. "I'm hearing that people are saying the yen is somewhat weak against the euro, but I don't think we are at the stage to make special comments or act at the moment."

Asked if he meant there was no need for monetary authorities to intervene in the market, Omi said, "I am not an expert so I don't know much. I will make a comment when I become a professional."

:eyes:

[UpInArms]

27. Japan farm minister won't ease beef rule for U.S

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2006-09-27T102131Z_01_T15039_RTRUKOC_0_US-FOOD-JAPAN-BEEF-USA.xml&src=rss

TOKYO (Reuters) - Japan's new Agriculture Minister Toshikatsu Matsuoka said on Wednesday he would follow the stance set by his predecessor of rejecting a U.S. proposal to start discussions on easing beef trade rules later this year.

Matsuoka said U.S. beef exporters must convince Japanese consumers they can fully meet current safety requirements set by the Japanese government before asking for them to be relaxed.

"We put the top priority on confirming that they have no problems with meeting the current export conditions," Matsuoka, a former ministry official, told reporters.

<snip>

Japan first banned U.S. beef immediately after the discovery of the first U.S. case of mad cow disease in December 2003.

The second ban came in January this year, just a month after Japan had lifted the two-year-old ban, when Japanese inspectors found banned material in a veal shipment from a New York company.

Asked if the government would again impose a ban on imports of U.S. beef in case of a future violation, Matsuoka said he took seriously the remarks of a former health minister supporting the action.

...more...

[Ghost Dog]

14. Hong Kong shares end higher on technical rebound

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060927:MTFH35243_2006-09-27_08-30-46_HKG117370&type=comktNews&rpc=44

HONG KONG, Sept 27 (Reuters) - Hong Kong stocks ended up 1.2 percent on Wednesday to rise above the key 17,500 level, as investors picked up beaten-down bellwethers like China Mobile (0941.HK: Quote, Profile, Research) and China Life (2628.HK: Quote, Profile, Research).

The benchmark Hang Seng index <.HSI> added 213.43 points to close at 17,521.51 on turnover of HK$31.8 billion (US$4.1 billion), down from Tuesday's HK$34.7 billion.

"We're seeing a technical rebound -- yesterday, the market overreacted," said Peter Pak, vice president of BOCI Research Ltd.

"The tricky part is next month. There are lots of bearish investors because of the huge IPOs that could dry up liquidity in October," Pak said, noting that the market had corrected sharply following the initial public offers by China Construction Bank (0939.HK: Quote, Profile, Research) and Bank of China (3988.HK: Quote, Profile, Research).

But others said they did not foresee massive liquidity drains by the forthcoming IPOs.

"The amount of liquidity in Hong Kong shows you -- as we've seen with China Merchants Bank (3968.HK: Quote, Profile, Research) -- that the cash is around if the deal is good," said Howard Gorges, vice chairman at South China Brokerage.

China Mobile, the world's largest cellular carrier by subscriber, ended up 3 percent at HK$55.10, after shedding 4 percent on Tuesday.

/Continued...

[Ghost Dog]

16. HK dollar stays weak on USD buying from banks

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060927:MTFH36625_2006-09-27_09-37-00_HKG53757&type=comktNews&rpc=44

HONG KONG, Sept 27 (Reuters) - The Hong Kong dollar extended losses on Wednesday amid persistent demand for the U.S. currency from several banks.

The domestic currency <HKD=> was trading at 7.7882/83 to the U.S. dollar at 0922 GMT, down from Tuesday's close of 7.7867/69. It fell as low as 7.7889 early in the morning, the weakest level since May 23, 2005.

"The USD/HKD spot rate was well bid from a Singapore name and some Chinese banks," said a dealer at a European bank.

The Hong Kong dollar had been under selling pressure in recent sessions on talk of keen outright buying positions for the U.S. dollar in both the spot and forwards markets.

Some dealers speculated the purchases might be related to the repatriation of funds raised for IPOs.

Under the territory's linked exchange rate system, the Hong Kong dollar can trade between 7.75 and 7.85 to the U.S. dollar.

/more...

[Ghost Dog]

17. China equity market size seen tripling in 4 years

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060927:MTFH34761_2006-09-27_08-06-45_SHA272414&type=comktNews&rpc=44

SHANGHAI, Sept 27 (Reuters) - The size of China's equity market is likely to triple over the next four years as more foreign money pours in and Chinese firms raise funds there more actively, a senior industry official has predicted.

The total capitalisation of the Shanghai and Shenzhen stock exchanges will jump to 15 trillion yuan ($1.9 trillion) by 2010, from 5.2 trillion now, Zhang Yujun, President of the Shenzhen Stock Exchange, wrote in an article published on Wednesday. "China will become an important capital market in the Asia-Pacific region in the next three to five years, because its development requires a strong and stable market," Zhang wrote.

The article, published on the Web site of the National Development and Reform Commission, China's top economic planner, estimated the capitalisation of China's equity market could reach 60 percent of the country's gross domestic product by 2010, more than double the current ratio.

After suspending domestic share offers for a year to undertake reforms, such as the removal of a $250 billion overhang of non-tradable shares held by the state, Chinese authorities began in April to encourage a string of listings by the country's top companies.

Industrial and Commercial Bank of China , the country's biggest bank, plans to list simultaneously in Shanghai and Hong Kong on Oct. 27, after raising between US$18 billion and US$21 billion in what is expected to be the world's largest-ever initial public offering.

In the past, poor corporate management and information disclosure have deterred investment in the Chinese equity market, while the market's lack of liquidity and highly speculative nature have made many local companies prefer to borrow money from banks or list overseas.

Zhang said regulatory reforms were addressing these problems. More foreign investment will be key to the Chinese market's growth by exerting pressure on companies to improve their management and disclosure, he wrote.

/Continued...

[Ghost Dog]

21. Turmoil grips Shanghai over graft probe

http://www.ft.com/cms/s/131004d2-4d54-11db-8704-0000779e2340.html

The Shanghai government was in turmoil on Tuesday as a corruption probe that prompted the dramatic sacking of the city’s leading official on Monday appeared to deepen.

To prevent any suspects leaving the country, senior Shanghai officials were ordered to hand in their passports while an investigation into corruption at the city’s pension scheme continued, officials confirmed.

Local police were also put on alert in case revelations about corruption at the highest levels of government and the detention of Chen Liangyu, party secretary, sparked protests from citizens.

With nervousness among officials in Shanghai mounting, a senior official in Beijing warned that others could be implicated in the corruption probe. “This case, depending on the depth of the investigation, could involve some other people,” said Gan Yisheng, secretary-general of the Communist party’s central commission for discipline inspection, an anti-corruption watchdog.

/more...

[UpInArms]

24. daily dollar watch

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

Last trade 85.72 Change +0.01 (+0.01%)

New Home Sales Poses a Risk to Further Dollar Strength

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/New_Home_Sales_Poses_a_1159307000306.html

US Dollar

What a difference a month makes as the optimism of US consumers rebounded significantly in the September after hitting a nine month low in August. The jump from an upwardly revised 100.2 to 104.5 was the largest that we have seen since February. Not only were consumers more confident about current conditions, but they were also more optimistic about future economic conditions. We called for dollar strength yesterday with a test of 1.2685 against the Euro on the back of a strong confidence report and that was exactly what we saw today. Gains were limited because the report was not influential enough to cause the Federal Reserve to resurrect its tightening campaign. The main reason why consumers were happier was because they are paying less at the pump. Since the beginning of August, crude oil price have fallen 23 percent as the national average of gasoline prices dropped over 65 cents. Despite the downturn in the housing market, persistent spending by the US consumer is continuing to drive economic growth. As a leading indicator for retail sales, today's confidence report signals that next month's retail sales report could be as strong as last month's. However, even though this is positive for the dollar, any additional gains beyond 1.2625 against the Euro will be a tough battle. The EUR/USD has been range bound since the beginning of August and we still do not have a significant enough catalyst to take the dollar beyond its recent range highs. In addition, we will likely see some of the dollar bullishness dented after tomorrow’s reports. We are expecting durable goods and new home sales. Even if durable goods comes out decent, new home sales will probably fall for the fourth consecutive month. All indicators from the housing market are expected to confirm the deflation of the housing bubble. However like the gains in the dollar today have been limited, we continue to expect weakness tomorrow to be capped. Unfortunately, range trading will continue to be the dominant theme for the dollar and will remain so until we see some a clear reason for the market to expect that the Federal Reserve will veer away keeping interest rates on hold for the remainder of the year.

...more...

Tomorrow's Economic Releases: Dollar Weighs In On Goods Orders, Home Sales

http://www.dailyfx.com/story/calendar/key_events/Tomorrow_s_Economic_Releases__Dollar_Weighs_1159310412778.html

US Durable Goods (AUG) (12:30GMT; 08:30EST)
(Headline) (ex Transportation)
Consensus: 0.5% 0.5%
Previous: -2.4% 0.5%

Outlook: The usually volatile measure of US durable goods is predicted to increase a modest 0.5 percent for the month of August. While this consensus is somewhat down the center, the potential for a large shift either way exists. Supporting those positive expectations were related sales data and other extracurricular events. Perhaps the most objective proponent for strength in goods orders was the retail sales number for the same month. Sales advanced a modest 0.2 percent in August, while purchases of new autos specifically grew 0.4 percent. Another big factor for orders likely came from the drop in energy prices. With crude oil prices in the beginning stages of what evolved into a sharp 25 percent decline, firms likely found an impetus to increase investment in aged equipment. Despite these improvements however, there are a number of indicators that suggest otherwise. For the most part, the detractors lay in manufacturing activity figures. In August, industrial production fell for the first time since January, the ISM manufacturing read dipped and the regional Philadelphia Fed survey contracted for the first time since April of 2003. Leading in directly to this month’s durables read however may be the drop in commercial airplane orders, from 38 to 30, for Boeing.

Previous: While the headline read of durable goods orders fell more than expected in the month of July, the less volatile calculation that excludes transportation equipment was actually able to produce a positive read. Orders dropped 2.4 percent over the month of July, the biggest slide since April, as demand for automobiles and commercial aircraft contracted. In fact, car orders dropped 7 percent as dealers had trouble moving existing inventory due to historically high gasoline prices. More damaging to the overall number was the 10 percent plunge in commercial aircraft numbers. The US’ largest commercial plane maker, Boeing, reported only 38 new orders for the month, compared to 135 the month before. When the transportation component was stripped out of the read, the gauge was actually able to climb 0.5 percent. The categories that advanced, suggested improvements were underway in the corporate sector. Firms helped to tally up a 4.6 percent increase in computer and electronic sales and 1.9 percent growth in machinery. Orders for non-defense goods that excluded aircraft, often used as an indication of future investment, grew 1.5 percent in July.


US New Home Sales (AUG) (14:00GMT; 10:00EST)
(Sales) (Change)
Consensus: 1,040K -3.0%
Previous: 1,072K -4.3%

Outlook: Sales of newly built homes are expected to drop for the fourth consecutive month in August to 1.04 million units annually. There is more than enough support for such a downturn coming from the general declining trend in the housing market and more specifically from other periphery indicators. Perhaps the most influential input for those predicting the new home sales figure comes from the existing unit sales number which just recently dropped 0.5 percent to 6.3 million units, the slowest pace since the first half of 2004. What’s more, prices for existing homes declined 1.7 percent on an annual basis for the first time since 1995 and singularly the second largest drop on record. Moreover, starts dropped 6 percent to a 3 year low, while permits contracted for the seventh consecutive month to their own four year low. While sales of newly constructed residences accounts for only 15 percent of the total market, it is also considered a leading indicator amongst the number of releases available on the topic. Should this release decline as expected, or at a faster than predicted clip, many forecasts for a rebound in the housing market will be seen as hopeful and consumer spending could quickly drop off the map.

Previous: New home sales dropped a greater than expected 4.3 percent in the month of July to 1.072 million units as a general decline in the market leaves potential buyers out of the market. Affordability in home ownership has declined dramatically over the past year as a steady two-year cycle of the Fed hiking overnight cash rates have buoyed mortgage rates in turn. The trend is so prominent that sales have dropped 22 percent from the same month a year ago, while inventories of new homes have breeched new records. Since the bulk of the typical American’s wealth is tied up in housing, the steady decline in housing trends is expected consistently erode spending habits in the months ahead.

...more...

[UpInArms]

32. Dollar eases after weak durable goods report

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B730F3DAA%2DF90C%2D40EA%2D97F0%2D3634F8035323%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- The dollar pared gains versus the yen and fell versus the euro early Wednesday after a Commerce Department report showed orders for U.S.-made durable goods fell 0.5% in August as orders for aircraft, electronics, machinery, metals and electrical goods crumbled. Economists were expecting a small gain of around 0.5% in orders. It was the first back-to-back decline in orders since early 2003. At 10 a.m. Eastern, traders will review data on sales of new homes for August. Analysts are expecting new-home sales to dip to 1.04 million from 1.07 million. The dollar traded at 117.14 yen vs. 117.35 yen before data. The euro was at $1.2712 vs. $1.2688.

[UpInArms]

25. U.S. mortgage applications decrease last week-MBA

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-09-27T105739Z_01_NAT002217_RTRIDST_0_ECONOMY-MORTGAGES-URGENT.XML

NEW YORK, Sept 27 (Reuters) - U.S. mortgage applications fell for the first time in four weeks even as interest rates dropped to a six-month low, an industry trade group said on Wednesday, providing further evidence that the U.S. housing market slump is deepening.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Sept. 22 decreased 4.9 percent to 566.6 from the previous week's 595.8, which was its highest level since April.

<snip>

The MBA's seasonally adjusted purchase mortgage index fell 5.5 percent to 375.9. The index was substantially below its year-ago level of 483.1.

The purchase index is considered a timely gauge of U.S. home sales.

The group's seasonally adjusted index of refinancing applications decreased 4.1 percent to 1,677.5.

...more at link...

[UpInArms]

26. S.Korea's Shinsegae told to sell some Wal-Mart stores

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2006-09-27T104335Z_01_SEO308930_RTRUKOC_0_US-RETAIL-KOREA-WALMART.xml&src=rss

SEOUL (Reuters) - South Korea's anti-trust agency has approved the $882 million sale in May of Wal-Mart Stores Inc.'s (WMT.N: Quote, Profile, Research) 16 outlets in the country to Shinsegae Co. Ltd. (004170.KS: Quote, Profile, Research), but ordered Shinsegae to sell a quarter of the stores.

The Fair Trade Commission said Shinsegae, South Korea's top discount store operator, must sell four or five Wal-Mart outlets as the acquisition could increase its dominance in some parts of the country and "lead to rising prices and deteriorating service quality ..."

But in a statement, the FTC said that at a nationwide level, "It's hard to see the merger as hampering competition."

Earlier this month, the regulator approved Carrefour's (CARR.PA: Quote, Profile, Research) $1.85 billion sale of its 32 Korean outlets to local fashion retailer E-Land Ltd.

After eight years in South Korea, Wal-Mart, the world's largest retailer, won just 4 percent market share, and posted a 2005 net loss of 9.9 billion won ($10.49 million) on sales of 728.7 billion won.

...more...

[UpInArms]

28. US CFOs and Comptrollers See US Economy Treading Water or Sinking

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2006-09-27T101452Z_01_N26364775_RTRUKOC_0_US-ECONOMY-CONFIDENCE-GRANTTHORNTON.xml&src=rss

NEW YORK (Reuters) - Most financial executives expect the pace of U.S. growth in the second half of 2006 to hold steady, according to the latest survey from accounting firm Grant Thornton.

The poll of 381 U.S. chief financial officers and comptrollers showed 59 percent felt the economy will tread water for the remainder of the year, while 28 percent expect it will worsen. Just 13 percent of executives polled felt the economy would improve in the second half.

In terms of their own businesses, about 50 percent felt their company's financial prospects will remain the same for the rest of the year, while 37 percent said they expect their companies to improve. Only 13 percent saw clouds on the horizon for their own companies.

The executives' views are consistent with economists' forecasts. Standard & Poor's, for example, said on Tuesday that it expects S&P 500 companies to continue the pattern of double-digit year-over-year gains in third-quarter and fourth-quarter operating earnings.

...more...

[AnneD]

36. Now THAT...

is scary. These folks know where the bodies are buried so to speak. I'd believe their guess over some eCONomist's facts.

[UpInArms]

30. Gildan Activewear to take 28c charge, cut 540 jobs (Michigan)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B7CF34701%2D7610%2D4F37%2D83E5%2DC6B8F11FC768%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Gildan Activewear Inc. (GIL : 50.01, +0.11, +0.2% ) on Wednesday said it will take a fourth-quarter charge of 28 cents a share to close its Valleyfield textile operations and make other moves. About 24 cents of the charge will be non-cash. Before the restructuring charge, the company continues to be comfortable with its most recent target of 58 cents a share for the period. Fro 2007, the company sees earnings of $2.50 a share, excluding the impact of an acquisition. The company is cutting 335 jobs in the U.S. and 205 in Canada as it closes its textile manufacturing facility in Valleyfield, Quebec and downsizes its knitting facility in Montreal, Quebec. It's also closing and downsizing its sock manufacturing capacity located in Mount Airy, N.C. and Hillsville, Va. over the next three to four months.

[UpInArms]

31. Journal Register to cut jobs in Michigan

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF9699D7F%2D59BD%2D4853%2DA0F4%2DDE5D07577E89%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Journal Register Co. (JRC : 5.89, +0.20, +3.5% ) on Wednesday said it would cut 82 jobs, or 6.5% of the workforce, at its Michigan Cluster, citing weakness in the Michigan economy due to the slowdown in the auto industry. The jobs impacted are primarily in the production, distribution, and administrative areas of the Cluster, the company said. In addition, all employees in the Michigan Cluster and senior management in the Journal Register corporate office will not be receiving any wage increases in 2007. The newspaper publisher said it will also seek a moratorium on wage increases for 2007 in upcoming union negotiations in the Michigan Cluster. The process should be completed in the next two weeks, the company said, and it expects annual savings of about $3.2 million.

[UpInArms]

33. Top U.S. housing regulator sees upside in sector slowdown -- affordability

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BF3BB21B7%2DF1CD%2D41F9%2DB05D%2DB28E6C36E58E%7D&symbol=

WASHINGTON (MarketWatch) -- The housing market's recent rough patch might not be bad news for everyone, a top U.S. housing regulator said on CNBC's "Squawk Box" Wednesday.

"Certainly the trend is down," said James Lockhart, director of the Office of Federal Housing Enterprise Oversight. "Housing starts are down. Permits are down. There is a significant change happening here. Hopefully the good news is houses will become more affordable."

Lockhart leads the agency that oversees the safety and soundness of Fannie Mae (FNM) and Freddie Mac (FRE).

Earlier this month, OFHEO reported that the average price of a U.S. home grew just 1.17% in the second quarter from three months earlier. The quarterly appreciation was the lowest quarter-to-quarter growth since the fourth quarter of 1999, when it stood at 1.12%.

...a bit more...

[AnneD]

45. I have a question....

who eats the loss.

[UpInArms]

34. Amaranth may liquidate assets, sell itself to larger firm: FT

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BB1BD8EE8%2D0444%2D4795%2D8D51%2D53DF243D413A%7D&symbol=

NEW YORK (MarketWatch) -- Amaranth Advisors LLC has told investors that it plans to either liquidate its assets or sell itself to a larger institution, according to a report in the Financial Times.

The comments, which the newspaper said were made in private meetings with investors, come days after Amaranth founder Nick Maounis said in a conference call with investors that the beleaguered fund expected to stay in business.

A spokesman for Amaranth, which lost about $6 billion this month due to bad bets on natural gas prices, wasn't immediately available to comment Wednesday morning.

Amaranth has been in negotiations for at least a week to sell a majority stake in itself to Citigroup Inc. (C), according to people familiar with the matter. The Greenwich, Conn., fund already has sold its energy trading portfolio to JPMorgan Chase & Co. (JPM) and hedge fund Citadel Investment Group.

...more...

[UpInArms]

39. 10:29 EST everybody's happy numbers and blather

Dow 11,691.64 22.25 (0.19%)
Nasdaq 2,263.25 1.91 (0.08%)
S&P 500 1,336.52 0.18 (0.01%)
10-Yr Bond 4.577% 0.008

NYSE Volume 572,509,000
Nasdaq Volume 489,374,000

10:00 am : Major averages are now in positive territory, with blue chips getting a boost from, of all things, the Dow's worst performing component since the index closed at a record in January 2000. Intel (INTC 20.46 +0.50) is pacing the way higher and within reach of matching yesterday's impressive 2.8% advance following reports that a federal judge has dismissed most of Advanced Micro Devices' (AMD 25.98 -0.01) antitrust claims against Intel. However, since investors still have to contend with another read on the health of the housing market, August new home sales out momentarily leaves early recovery efforts in question.DJ30 +25.51 NASDAQ +4.37 SP500 +1.40 NASDAQ Dec/Adv/Vol 1305/1059/186 mln NYSE Dec/Adv/Vol 1438/1280/92 mln

09:40 am : Stocks open slightly lower as weak economic data incite some early profit taking following a two-day rally. Since business investment has risen at about a 10% annual rate for years and continues to provide a lift to the economy despite concerns about the consumer, an unexpected 0.5% decline in August durable orders, with nothing in the breakdown of the data to provide contrary enthusiasm, raises worries that the strongest sector of growth is also moderating. It is worth noting, though, that market losses are modest at best as there is still a lot of momentum in large-cap stocks as investors eye a new all-time high for the Dow. DJ30 -5.21 NASDAQ -4.55 SP500 -1.14 NASDAQ Vol 134 mln NYSE Vol 150 mln

[UpInArms]

41. U.S. manufacturers face widening cost gap-study

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-09-27T133408Z_01_N27260347_RTRIDST_0_ECONOMY-MANUFACTURING-UPDATE-1.XML

BOSTON, Sept 27 (Reuters) - Rising energy and employee health-care costs, as well as high taxes, caused U.S. manufacturers to fall further behind their foreign rivals in terms of economic competitiveness, according to a study released on Wednesday.

U.S. manufacturers face fixed costs that are on average 31.7 percent higher than those of nine of the nation's major trading partners, the joint National Association of Manufacturers, Manufacturing Institute and Manufacturers Alliance/MAPI found.

That is up from a 22.4 percent cost disadvantage U.S. manufacturers faced in 2003, the last time the groups did the study.

"This is an astonishing increase from three years ago," said Jeremy Leonard, an MAPI economist.

Beyond the difference in prevailing wages, the leading reason for the lagging competitiveness was high corporate taxes, at a time when taxes declined for corporations at many of the United States' major trading partners, the study found.

"Structural costs are of a top concern to manufacturers in the United States and they are unavoidable," said John Engler, NAM president and a former governor of Michigan. "They undermine the ability of manufacturers to compete in a fierce global marketplace."

...more...

[AnneD]

46. Gee, just think....

If we had basic universal health coverage and an energy policy that encouraged other energy sources we might be competitive.:think: I don't buy that tax crap for one minute though. There is so much corp welfare and loop holes for these big companies that they frequently end up paying nada. The small and mid size companies might have a point.

[Kolesar]

49. Singapore is not paying for their own military-industrial complex

Peace is prosperous.

[specimenfred1984]

42. Org. crime/investment firms sucking last few "investors" in

before they short this doomed market. That's my guess anyway. I think the DOW makes a new high, sucking in the last "sideliners" then the big trading firms -- Goldman, Merril, MorganStanley, etc... -- short it bigtime as there's a lot more potential quick income for them on the downside.

Just a guess, who knows what these corrupt people are up to. It's always a guess now, there's no law in tortureland.

[Tace]

43. Slow, Horrible Spiraling Death Of An Economy By InflationSyndrome(Mogambo)

Richard Daughty, the angriest guy in economics -- World News Trust

Sept., 26, 2006 -- Total Fed Credit was up a couple of billion bucks last week. Not too bad, but not too good, but more bad than good, as I am, like Goldilocks, always 100 percent dead-set against anything that doesn't perfectly suit me personally.

Unlike Goldilocks, however, I not only take lots of loaded large-caliber weapons with me when I go snooping around in the houses of bears, but I also extrapolate beyond mere porridge temperature and bed softness to lots of other things, including inflation, which should always be zero. And if inflation is greater than zero, then inflation is much more terrible than some unarmed bear. And if it is NOT zero, then it should be falling gently below zero, so that prices are actually drifting softly down, increasing everyone's standard of living the whole time.

This "increasing standards of living" thing is the now-broken promise of the whole "productivity revolution" that was supposed to "more than offset" the horrors usually produced by anyone attempting the monumental stupidity of the fiat currency/fractional-reserve banking/monetary and fiscal insanity of the last few decades. Hahahaha! Wrong, as it turns out! Hahaha!

Any increase in Total Fed Credit, like any increase in expansion of my arrogant, autocratic, cruel-yet-dictatorial domestic rule eventually leads to unexpected bad, bad things (UBBT). For example, some of these bad things are sudden "tipping points," like when you stand up, slowly lean over, farther and farther until, suddenly, you lose your balance and fall on your face.

more

http://www.worldnewstrust.com/index.php?option=com_content&task=view&id=243

[Kolesar]

48. Kind of hard to decipher since I don't understand the context or the...

...references in the article.

[Hugin]

44. Time to pour a cup of coffee and read through my favorite...

perpetually updated LBN thread.

I must get a handle on these latest events.

Have I mentioned how much I enjoy this thread... Thanks to all of you
who keep it going come rain, shine, or spin.

[AnneD]

47. It's never to late...

or early to have a cup o'joe with a friend.
:donut: or :hangover: What ever the case may be....Welcome.:hi: Prag

[ozymandius]

52. Thanks Prag!

Please drop by anytime with your comments. You're always welcome. Thanks, too, for the cheer.

Ozymandius :hi:

[specimenfred1984]

50. A measley 2 points away and the DOW fails?

These markets aren't being driven by any investor enthusiasm, the frauds that pump this thing up just stopped pumping.

[UpInArms]

51. closing numbers and blather

Dow 11,689.24 19.85 (0.17%)
Nasdaq 2,263.39 2.05 (0.09%)
S&P 500 1,336.59 0.25 (0.02%)
10-Yr Bond 4.594% 0.009

NYSE Volume 2,776,848,000
Nasdaq Volume 2,107,022,000

The major averages on Wednesday closed higher for a third straight session and kept the September rally intact. However, market gains were modest at best as momentum from an impressive two-day performance and end-of-quarter buying activity by fund managers carried over into today's trading.

Fortunately for the bulls, the market was also focused on whether the Dow could finally break through a key psychological barrier and hit a new all-time high, which will be important (when reached) for investor confidence since it is widely believed that U.S. consumers are underinvested in equities. As a result, investors were just able enough to get some strong leadership from a few key blue-chip names to look past rising oil prices and poor economic data questioning whether the Fed can in fact engineer a so-called soft landing. Falling oil prices and lower interest rates have been among the biggest reasons behind Q3 shaping up to be the best quarterly performances for the Dow and S&P 500 since Q4 of 2004.

Among the notable Dow components also helping the S&P 500 and Dow adhere to the smallest of advances was General Motors (GM 32.28 +0.87), which paced the way on the Dow with a 2.7% gain amid reports it is seeking billions of dollars from Renault and Nissan to make an alliance come to fruition. McDonald's (MCD 39.82 +0.76), another consumer discretionary component, also turned in a notable performance, hitting a 52-week high after boosting its dividend nearly 50%; but the sector posted a loss. Intel (INTC 20.39 +0.43) tacking a 2.2% gain onto yesterday's impressive 2.8% advance following reports that a federal judge has dismissed most of Advanced Micro Devices' (AMD 25.35 -0.64) antitrust claims against Intel provided additional leadership; but the Tech sector still faltered.

Verizon (VZ 36.76 -1.20) was the day's worst performing Dow component after announcing plans to spend $18 bln on a new fiber network a day after shares hit a 52-week high. Even though Telecom represents only 3.3% of the total weighting on the S&P 500, further consolidation in this year's best performing sector to the tune of 2.4% contributed to the absence of leadership from Technology, since telcos like VZ (-3.2%), T (-2.3%) and BLS (-2.3%) are also among some of tech's most influential components.

Energy was the most influential leader to the upside (+1.5%), benefiting from an afternoon turnaround in oil prices that closed the commodity up 3.2% near $63 a barrel. Exacerbating oil's possible inflationary characteristics were comments from Federal Reserve Governor Randall Kroszner. Just after 2:00 ET and around the same time short sellers in crude were running for cover, Kroszner said that "we are still seeing some continued potential for inflationary pressures."

On the economic front, the Commerce Dept. delivered the initial blow to stocks around 8:30 ET, when August durable orders unexpectedly fell 0.5%, showing nothing particularly upbeat anywhere in the data and raising worries that the strongest sector of growth (i.e. business investment) is also moderating.

Sure, August new home sales unexpectedly rose 4.1% to 1.05 mln (consensus 1.04 mln), marking the first increase since March. However, that was only made possible after downward revisions were made to the prior three months. While median prices slipping into the red for the first time since 2003, along with lower mortgage rates, will keep the housing market from experiencing an all-out crash, the data reinforced the possibility that consumers will rein in spending and challenged the soft landing scenario. DJ30 +19.85 NASDAQ +2.05 SP500 +0.25 NASDAQ Dec/Adv/Vol 1329/1670/2.07 bln NYSE Dec/Adv/Vol 1267/2034/1.73 bln

3:30 pm : Major averages continue to trade in split fashion as there still isn't a lot of conviction on either the bullish or bearish side of the aisle. As reflected in market internals, advancers outpace decliners on the NYSE by an 18-to-13 margin but advancing issues enjoy a smaller 15-to-14 edge on the Nasdaq while a split ratio of up to down ratio on both exchanges tells a more accurate story as to where stocks stand going into the close -- mixed. DJ30 +12.24 NASDAQ -2.95 SP500 -0.90 NASDAQ Dec/Adv/Vol 1437/1535/1.71 bln NYSE Dec/Adv/Vol 1383/1897/1.37 bln

3:00 pm : After briefly slipping into the red and 61 points away from historic highs, the Dow is clawing back somewhat despite consolidation in two of its best performers this quarter (e.g. T -2.4%, VZ -3.2%). It is worth noting, though, that even if the index simply closes flat, it is still on pace to close out Q3 with its best quarterly performance (4.8%) since Q4 of 2004. The Nasdaq, which is down 0.2% today, is up 4.0% for the quarter and on track for its best September performance since 1998.DJ30 +7.92 NASDAQ -4.38 SP500 -1.20 NASDAQ Dec/Adv/Vol 1432/1530/1.58 bln NYSE Dec/Adv/Vol 1322/1942/1.26 bln

2:30 pm : Market continues to weaken as oil prices now up 3.3% on the day, after failing for a second straight day to break through $60, leaves the averages trading in split fashion. Crude oil futures breaking through the $63/bbl level, and the inability by Energy to more aggressive take advantage, is taking almost all of the steam out of stocks. After all, oil prices more than 20% below record levels of late and at a six-month low on Monday has been a big reason for the market's two-day rally that has kept investors almost solely focused on the Dow's attempts to break through an important psychological barrier, its all-time high of 11,722.98 reached on January 14, 2000. DJ30 +7.60 NASDAQ -1.08 SP500 -0.31 NASDAQ Dec/Adv/Vol 1247/1690/1.45 bln NYSE Dec/Adv/Vol 1149/2088/1.16 bln

2:00 pm : Indices finally find a reason to break out of their narrow trading range; but to the dismay of the bulls, a reversal in the influential Technology sector has pushed stocks in the opposite direction and contributed to the halving of intraday gains across all three major averages. The PHLX Semiconductor Sector Index briefly slipping into the red has removed much of the sector's leadership, since hardware stocks were already under pressure after the Aug. durable goods report showed a drop in electronics orders. The most noticeable reason for the pullback in chip stocks has been seen in Advanced Micro Devices (AMD 25.55 -0.44), which was up as much as 2.0% earlier but is now down 1.7%. DJ30 +24.13 NASDAQ +3.01 SP500 +0.97 NASDAQ Dec/Adv/Vol 1297/1621/1.32 bln NYSE Dec/Adv/Vol 1282/1924/1.05 bln

:hi: