STOCK MARKET WATCH, Tuesday October 10

[ozymandius]

Tuesday October 10, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 832 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2113 DAYS
WHERE'S OSAMA BIN-LADEN? 1819 DAYS
DAYS SINCE ENRON COLLAPSE = 1780
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 October 9, 2006

Dow... 11,857.81 +7.60 (+0.06%)
Nasdaq... 2,311.77 +11.78 (+0.51%)
S&P 500... 1,350.66 +1.08 (+0.08%)
Gold future... 582.80 +6.00 (+1.03%)
30-Year Bond 4.84% -0.00 (-0.02%)
10-Yr Bond... 4.70% +0.00 (+0.04%)






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

[Nimrod2005]

1. Good morning folks......nt

[ozymandius]

3. Good morning Nimrod.

:donut: :donut: :donut:

I hope all's well with you today.

[Nimrod2005]

7. All is well here - WSJ article?

Life has been very good to me.

I just heard on the gambling channel (CNBC) that the WSJ has a story about the SEC asking private equity firms for some "information."

Sounds interesting, there has been a fair amount of activity in the space, and very little oversight? If it blows up it can get ugly, deals like GMAC, Hertz, Albertson's...etc. Billions have been spent.

I am going to look for it.

I just found it, front page on WSJ.COM, but it is behind the wall...

THE JUSTICE DEPARTMENT HAS BEGUN an inquiry into potentially anticompetitive behavior among leading private-equity funds. Information and documents related to deals and business practices have been requested. 4:00 a.m.

http://online.wsj.com/public/us

[ozymandius]

9. I hope you find that article.

Another one of Greenscam's legacies is total lack of oversight into the hedge fund market. And, yes, you're correct to assert that if this thing blows up it will get ugly. Hedge funds have been drenched with liquidity.

I paraphrase the old saying - if everybody's doing it because it's a "sure thing" then it's time to get out.

[54anickel]

19. Here's another link

http://money.cnn.com/2006/10/10/news/companies/doj_buyouts.reut/?postversion=2006101007

NEW YORK (Reuters) -- The U.S. Department of Justice has begun an inquiry into potentially anti-competitive behavior by private-equity firms, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.

Justice Department officials have sent letters to private equity firms, including Kohlberg Kravis Roberts & Co. and Silver Lake Partners, the Journal said.

In a probe of anti-competitive behavior, the Justice Department is asking for information on deals and auctions, the paper said.

KKR and Silver Lake officials were not immediately available.

Private equity firms buy companies and typically cut costs, restructure the businesses, and sell them three to five years later. Most firms keep about 20 percent of the profit from the exits and give the rest to their institutional investors -- pension funds, college endowments and wealthy individuals.

Private equity firms are on target to raise more than $300 billion from investors this year, with top-tier firms making huge profits and sparking the heaviest buyout activity in more than five years.

more...

[cosmicdot]

24. I hope the Carlyle and Blackstone Groups aren't involved

:sarcasm:

[ozymandius]

2. WrapUp by Rob Kirby

HEDGING BETS

Hedge Funds have always seemed to garner more than their “fair share” of publicity, be it the spectacular, yet mysterious, Long Term Capital Management (LTCM) - allegedly caught up in a Russian bond default in the late 1990’s; or more recently – Amaranth – whose ill fated (or ill timed, perhaps?) bets on the wholesale price of natural gas led to their undoing.

With Hedge Funds back in the news – front-and-centre - recently, it seemed that a market wrap dealing with some Hedge Fund basics was in order.

-cut-

Hedge Fund vs. Mutual Fund

As mutualfunds.about.com explains,

“When the stock market is doing poorly, talk of using hedge funds tends to increase. Although hedge funds are not mutual funds, people often mistake them as such. The word "hedge" implies defensive management or insurance against bad times, but the truth is hedge funds come in hundreds of varieties and often use leverage.”

-cut-

Leverage: This issue does not arise so much in the Mutual Fund arena because there are very strict limits on these types of funds using any leverage. But Leverage, perhaps more than anything else, is what tends to set returns of different Hedge Funds apart. The reason for this is really quite simple: If you can imagine a fund that has 1 million in proceeds – with zero leverage – and their investments take a 10 % hit or loss, the fund would still have proceeds of 900,000. Now consider the same Fund (1 million in proceeds) but they have now borrowed 4 million in addition to their initial 1 million and they invest the same way (aggregate 5 million). A 10 % drop in value on a 5 million investment – invested the same way - would leave the Fund with “net equity” of only 500,000.

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

[ozymandius]

4. Today's reports

10:00 AM Wholesale Inventories Aug
Briefing Forecast 0.8%
Market Expects 0.6%
Prior 0.8%

2:00 PM Treasury Budget Sep
Briefing Forecast NA
Market Expects NA
Prior $48.3B

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

[ozymandius]

5. Oil rises above $60 as OPEC fine-tunes output cut

SINGAPORE (Reuters) - Oil rose further above $60 a barrel on Tuesday as
OPEC worked out the details of an expected 1 million barrels per day (bpd) production cut, with gains checked by a lack of Saudi supply curbs to Asian refiners.

Heightened geopolitical tensions over North Korea, which claimed its first nuclear test on Monday, also lent some support to the market as world powers condemned the communist state.

China's build-up of its strategic crude oil reserves may buoy the market further.

U.S. crude was up 57 cents at $60.53 a barrel by 0711 GMT, adding to Monday's 20-cent gains but still stuck near last week's eight-month low of $57.75 a barrel, about 26 percent below a mid-July record peak. London Brent crude rose 53 cents to $61.07.

more

[ozymandius]

6. Kuwait says no OPEC cut deal reached yet

KUWAIT (Reuters) - Kuwait's oil minister said on Monday that OPEC members were still holding consultations over output cuts to shore up oil prices, explaining that no agreement has been reached yet.

"Right now we are talking about something between 700,000 bpd to 1 million (bpd). This is the amount that the brothers in OPEC feel is the excess production," Sheikh Ali al-Jarrah al-Sabah told reporters.

"The disagreement is over (whether the cuts should come from) the quota or the production level."

more

[ozymandius]

8. European stocks at fresh 5-year highs

European equities hit fresh five-year highs on Tuesday as global stock markets recovered from the geopolitical concerns of the previous session.

In early trade, the FTSE Eurofirst 300 was up 0.2 per cent to 1,417.12, Frankfurt's Xetra Dax added 0.1 per cent to 6,092.44, the CAC 40 in Paris climbed 0.2 per cent to 5,296.61 and London's FTSE 100 gained 0.1 per cent to 6,036.9.

Asian and US stocks put in steady performances overnight, as geopolitical fallout caused by North Korea's nuclear test on Monday settled. On Wall Street the Dow ended 0.1 per cent higher at 11,857.81 and the Nasdaq rose 0.5 per cent to 2,311.77. In Asia, Tokyo's Nikkei Average added 0.3 per cent to 16,477.25 and Seoul's Kospi recovered 0.7 per cent after falling more than 2 per cent on Monday.

Back in Europe, financial stocks led the way higher. Germany's top non-life insurer Allianz joined the likes of Goldman Sachs and American Express in anticipating a doubling of its investment when Industrial and Commercial Bank of China debuts in Hong Kong and Shanghai on October 27.

http://news.yahoo.com/s/ft/20061010/bs_ft/fto101020060426250305

[ozymandius]

10. St Louis Fed chief says bonds can bring stability

The Federal Reserve could "sit back" and let the bond market play the role of automatic stabiliser in the economy, even amid concern over the housing slowdown, Bill Poole, president of the St Louis Fed, has told the Financial Times.

Mr Poole, who is a voting member of the Fed's policymaking open market committee (FOMC), said that the fall in long-term interest rates within the bond market had reduced pressure on the Fed to respond immediately to signs of economic weakness.

"The decline in long rates is working as a built-in stabiliser for the economy," he said, noting that the fall in bond market rates "will tend to bring down mortgage rates" as well.

By the same token, Mr Poole said, "if we get an upside surprise, the long rate clearly has a lot of room to rise without the FOMC doing anything."

more

Mr. Poole is right on one thing. The FOMC has very little to do with establishing mortgage rates. Mortgage rates can be influenced by the Fed's rhetoric - but very little else. Overall, this is an indication that the FOMC intends to sit on its hands while continuing to issue statements.

[ozymandius]

11. U.S. tech stocks climb on Google's YouTube deal

NEW YORK (Reuters) - U.S. technology stocks gained on Monday ahead of an announcement by Web search company Google Inc. (Nasdaq:GOOG - news) that it will acquire online video service YouTube Inc., offsetting concerns surrounding North Korea's nuclear test.

Google shares rose to their highest in more than five months ahead of the Internet search company's announcement after the closing bell that it would pay $1.65 billion in stock for YouTube.

While shares of the acquiring company usually drop following a takeover announcement, Google stock's rose in extended trading, suggesting investors believe the deal is attractive.

"This is a very good move for Google strategically as it opens to them the possibility to grow in one Internet area where they were not very big -- that is, video," said Steve Neimeth, portfolio manager for AIG SunAmerica Asset Management in Jersey City, New Jersey.

more

[ozymandius]

12. American Economist Wins Nobel for Inflation Theory

A Columbia University economist was awarded the Nobel Memorial Prize in economics Monday for his paradigm-shifting work showing that reducing inflation wouldn't necessarily lead to higher unemployment — a key tenet of Federal Reserve policy since the 1980s.

Edmund S. Phelps, 73, who started his career at Santa Monica-based Rand Corp., was honored for his challenge to a post-World War II notion that low inflation and low unemployment couldn't exist simultaneously. That notion was embodied in the so-called Phillips curve.

Phelps theorized in the 1960s that the drivers of inflation went beyond unemployment and wages. He faulted the strictly statistical Phillips curve for failing to take into consideration how the price and wage inflation expectations of people and companies affected their purchasing and employment decisions.

-cut-

Phelps' theory gradually took hold. But not before monetary policymakers grappled in the early 1970s with an oil crisis, rising unemployment and slipping productivity. They responded by loosening monetary policy — an effort that later was seen through the lens of Phelps' theory as a contributor to the era's troublesome inflation.

more

[AnneD]

20. Morning Marketeers......

:donut: and lurkers. My my my....I am looking forward to reading some of Phelp's theory. From this blurb, it sounds like a truly low unemployment rate is a good thing. I get so mad at WS when they go all ape shit about the unemployment numbers. The market goes up when unemployment goes up, like that really helps the economy. I remember a time (before Reagan) when unemployment numbers weren't fixed. High numbers would result in a drop on WS and the Labour Department, White House, and Congress would convene to see how this unemployment problem could be remedied....and it was a top priority, not the after thought it is today.



Happy hunting and watch out for the bears.

[ozymandius]

13. Northwest offers strikers severance pay packages

The 14-month mechanics strike at Northwest Airlines Inc. could end soon if the mechanics and plane cleaners who walked out last year approve a deal that calls for severance pay but no guaranteed jobs.

On Monday the union and the airline reached a deal that would bring back mechanics only as positions open.

Northwest's 4,400 union mechanics and plane cleaners walked off the job Aug. 20, 2005, protesting layoffs and 26% wage cuts. The airline hired replacement mechanics and contracted out work and flew with little disruption.

In the next 30 days, it will be up to about 3,000 striking mechanics, plane cleaners and custodians to decide whether they'll approve the deal.

http://www.freep.com/apps/pbcs.dll/article?AID=/20061010/BUSINESS05/610100368

[ozymandius]

14. On the decline

Moody's Economy.com looks at the 100 largest markets and predicts their tops, their bottoms - and total price drops.

NEW YORK (CNNMoney.com) -- The housing market will get worse before it gets better - that's the finding of an analysis by Moody's Economy.com.

In the survey of 379 metro areas, the study's authors project that nearly 20 areas eventually could experience a "crash," or a decline of more than 10 percent from peak to trough. The most hard-hit areas will be in California, the Southwest coast of Florida, and in Arizona and Nevada.

-see chart-

http://money.cnn.com/2006/10/05/real_estate/moodys/index.htm?postversion=2006100611

[ozymandius]

16. Real estate downturn hits real estate agents

NEW YORK (CNNMoney.com) -- There wasn't just a boom in real estate over the past decade - there was also a big boom in real estate agents.

Floods of people across the country applied for real estate licenses, attracted by record sales volumes and seemingly non-stop price gains.

During the boom's peak from 2002 to 2004, the National Association of Realtors (NAR) saw memberships soar 26 percent. Today, over 1.2 million Americans call themselves Realtors.

-cut-

Real estate is a notoriously difficult industry for newcomers. The NAR reported in 2005 that those who have been in the business for two years or less had an average income of only $12,850 a year. Long-time brokers - those with at least 26 years of experience - had an average of $92,600.

http://money.cnn.com/2006/10/03/real_estate/real_estate_agents/index.htm?postversion=2006100312

[UpInArms]

18. Home Builder: D.R. Horton 4Q sales down 34%

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BDBF68338%2D04F1%2D4DD0%2D9209%2D5442CDB3E7AF%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Home builder D.R. Horton Inc. (DHI : 23.84, +0.25, +1.1% ) said Tuesday its fourth-quarter sales fell 34% to $2.5 billion from $3.8 billion. The Fort Worth, Texas company's rate of homes cancelled divided by gross homes sold rose to 40%, from 29%. "The current selling conditions in the homebuilding industry continue to be challenging, with higher than normal cancellation rates and increased use of sales incentives in many of our markets," the company said.

[OrangeCountyDemocrat]

22. Where Are GreenSPUN's Comments Re: Housing?

I'm surprised nobody has posted them here. I heard a segment briefly on CrapNBC this morning, and they quoted Alan as saying the housing decline has ENDED.

He also said that low interest rates had Very Little to do with the run up in housing prices. One of the biggest factors, according to him, was the fall of the Berlin Wall.

The announcer made a comment that the Wall fell back in 1989. But I'm sure ol' Greenie knows what he's talking about. Fucker!

[ozymandius]

15. Trump: China trade wrecks U.S. jobs

NEW YORK (Reuters) -- Real estate tycoon Donald Trump lashed out at the U.S. government on Monday for allowing China to gain the upper hand in trade, which he said had partly led to a loss of U.S. jobs and shrinking of the middle class.

Trump, promoting his new book, "Why We Want You to be Rich", written with real estate investor Robert Kiyosaki, said Americans were facing life in a two-class society where they could either be rich or poor.

America's middle-class was shrinking as the country lost its manufacturing base and jobs to inexpensive imports, Trump said in an interview at his Manhattan office, pointing especially to China.

"If you want to open a business in China, it is virtually impossible," Trump said. "And yet, if China wants to come here and do something, there is no problem whatsoever."

http://money.cnn.com/2006/10/09/news/newsmakers/trump_china.reut/index.htm?postversion=2006100919

[UpInArms]

17. daily dollar watch

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

Last trade 86.93 Change +0.38 (+0.44%)

Dollar Liquidity Dries Up On Holiday

http://www.dailyfx.com/story/dailyfx_financial_markets_headlines/Dollar_Liquidity_Dries_Up_On_1160412834649.html

Though US equities, futures and, of course, FX were open for the trading Monday, the Columbus day bank holiday was taking its toll on liquidity. After witnessing multiple breakouts in the majors on Friday, this momentum drain could sever a new bullish leg in the US dollar before it can even get off the ground. The lack of volatility was immediately apparent in price action through the three international sessions Monday.

Since mid-day Friday, the EURUSD has floundered in a 30 point range between 1.2617 and 1.2585 with few intra-day moves suggesting a bias to either side. Usually the mirror image of the euro pair, the Swiss franc was also in a 30-point band that is holding below 1.2620, which is in turn just below resistance set in place last month. Despite the lack of dollar interest, the unit has been able to find a bid against the British pound for an 80-point drop to 1.8634. Finally, the Japanese yen has seen some momentum in the Asian session on geo-political concerns, but the interest behind the USDJPY has topped out with a 50-point swing in the dollar’s favor to 119.30.

As traders at the big banks pass the day away from the desks, those international and smaller market participants were left with little from the economic calendar to draw from. However, when liquidity deepens tomorrow, there will likely be a substantial amount of interest in North Korea and oil. Making international headlines in the overnight, North Korean officials announced that it had successfully detonated a nuclear weapon. This detonation comes just a week after the communist state announced its intentions to do so and three months after test launching a number of missiles; including the Taepodong-2, which is said to have a range that could reach Alaska. Another interesting aspect of this test was its expedited nature in regards to the time line in which the international community had set out for its response. Last Wednesday, US Ambassador to the UN John Bolton said the US would draft a resolution that would likely include the threat of military action if North Korea proceeded with its tests. Moreover, just the day before the test, China and Japan had joined the UN Security Council in denouncing the plans. While the event risk associated with this episode has been quick and relatively painless for international markets, the currency markets may be feeling its effect for some time. The new capabilities of this long-isolationist country will heighten tensions in the regions; and some say may lead to an arms race. While global investors wait to see how the issue plays out, there will likely be an increase in the number of people seeking refuge for their capital. In the past year, this safe haven has increasingly turned to the dollar as the high yields on assets and deep liquidity have been increasingly buffered by the new issue of geographical distance from the hot spots in the world. Tomorrow, traders will be able to turn to wholesale inventories and sales numbers for the previous month, often a leading indicator for the retail equivalent posted later; but expect the North Korean issue to still draw attention from greenback bulls.

...more...

Will North Korea Have a Lasting Effect on the Dollar and Yen?

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Will_North_Korea_Have_a_1160428523364.html

US Dollar

When it comes to trading currencies, things are always changing, which keeps our job interesting. Last year, we were all amateur meteorologists trying to figure out weather patterns and the probability of another major hurricane happening after Katrina and this year, we have all turned into amateur military strategists. North Korea has stirred up the markets with news that they have conducted another nuclear test over the weekend. The dollar has rallied while the Japanese yen has sold off, but the movements in both of currencies been limited because the responses from the major powers around the world are unclear. This is not the first time that North Korea has tested a missile. They have done so on many occasions over the past few years and the responses have only been limited to some harsh words. The question this time around is whether the outcry that we have heard thus far is the extent of the reaction that we will hear from the major powers or whether we will actually see sanctions or military action. If nothing more is done, the markets may soon forget about North Korea’s tests, just like they did back in July after the two long range missiles failed within a minute. North Korea’s underground tests make it difficult to determine whether the test was large or small or whether it failed half way or was completely successful. Either way, for the time being, traders looking to fade the yen weakness should be very careful. Aside from North Korea’s test, the markets have been very quiet with the US, Canadian and Japanese markets closed for holidays. The Canadian dollar is stronger as OPEC members reach an informal agreement to cut oil production but they stopped short of calling an emergency meeting to formalize the agreement. A number of Fed speeches as well as the FOMC minutes from the September 20 meeting and Beige Book report are expected this week. FOMC voting member Janet Yellen was the first to speak. She reiterated the Fed’s overall concern for inflation but was slightly more dovish than the other members when she noted that interest rates “appears appropriate” and are now in a “moderately restrictive” range. She also feels that the decline in oil prices should reduce core prices, which will make a decline in inflation the “most likely outcome.” For the time being, despite all of the dollar bullishness that has come after the US payrolls report, the Federal Reserve is still more likely to reduce rates than raise them over the next six months.

...more...

US Fed - Surprisingly Hawkish

http://www.dailyfx.com/story/special_report/special_reports/US_Fed___Surprisingly_Hawkish_1160476285617.html

Some central bankers have been sounding particularly tough on inflation:

Ben Bernanke, US Federal Reserve Bank Chairman

“I would estimate that slowing housing construction will probably take about a percentage point off growth in the second half of this year and probably something going into next year as well…The inflation rate is still above what we would consider price stability. We do believe inflation is going to be coming down gradually over time, but it's something we have to watch very carefully to make sure that it doesn't rise or even remain where it is.” – October 5, 2006

Donald Kohn, US Federal Reserve Vice Chairman

“Don't sell the Fed's concern about inflation short.” He noted that there are “a lot of uncertainties on both sides," of official growth and inflation forecasts, and highlights that he is “surprised" at how little market participants seemed to share this sense. – October 5, 2006

Charles Plosser, Philadelphia Federal Reserve President

“There remains some risk that policy is not yet firm enough to ensure a return to price stability over a reasonable time horizon. We need to remain vigilant and recognize that maintaining the current stance of policy, or even firming further, may be in the best interests of the economy's long-run performance.” – October 6, 2006

Sandra Pianalto, Cleveland Federal Reserve President

“The bottom line is that you cannot achieve long-run growth without price stability. In many, if not most, cases this is true in the short run as well.”– October 6, 2006

However, we also saw surprisingly dovish comments from a typical hawk:

William Poole, St. Louis Federal Reserve President

“The decline in long rates is working as a built-in stabilizer for the economy.” Mr. Poole also noted that the fall in bond market rates “will tend to bring down mortgage rates” as well. “If we get an upside surprise, the long rate clearly has a lot of room to rise without the FOMC doing anything.” – October 9, 2006

...more...

[ozymandius]

21. mixed at 11:02

Dow 11,847.64 Down 10.17 (0.09%)
Nasdaq 2,312.10 Up 0.33 (0.01%)
S&P 500 1,351.77 Up 1.11 (0.08%)
10-Yr Bond 4.7380% Up 0.0400
NYSE Volume 691,687,000
Nasdaq Volume 565,156,000

[NC_Nurse]

23. Gee - the thread sure has been short the last couple of days...

Where is everybody? :hi:

[DemReadingDU]

25. The lull before the storm?

I'm mostly a luker, but the thread has been short the past few days.

[ozymandius]

26. sticking a fork in it - so late in the day

DJIA 11,867.17 +9.36 +0.08%
Nasdaq 2,315.43 +3.66 +0.16%
S&P 500 1,353.42 +2.76 +0.20%
30-Year Bond 4.88% +0.04 +0.89%
10-Year Bond 4.75% +0.05 +1.06%

4:20 pm : Even though the Dow closed at a new all-time high, there was little conviction on the part of buyers Tuesday as the major averages struggled to stay in the green going into the close.

With Dow component Alcoa (AA 28.29 +0.30) slated to officially kick off earnings season after the close, investors waiting to see how corporate profits fared in Q3 amid slowing economic growth did just that -- wait -- as participants weighed some encouraging corporate news and plunging oil prices against rising Treasury yields.

Bond traders coming back from a three-day weekend in profit taking mode, pushing the 10-year note down 13 ticks and lifting the yield to a three-week high of 4.74%, added to the sense of reserve among equity traders who have been pricing in the value of future earnings based on lower interest rates. Still gradually re-calibrating expectations for Fed policy, Treasuries fell for a third straight day amid less evidence of a Fed easing after Dallas Fed President Richard Fisher warned that policy makers may need to raise interest rates further if the inflationary pressures don't ease.

Fortunately for the bulls eventually getting in the last word, a 2.4% sell-off in oil prices below $59/bbl, without sacrificing anything in the way of leadership from an Energy sector that is expected to see Q3 earnings grow 25%, provided a big source of market support. Analyst upgrades on oil explorers Devon Energy (DVN 63.58 +2.03) and Anadarko Petroleum (APC 43.18 +1.55) acted as offsetting factors.

Among the biggest beneficiaries of oil's decline were transportation stocks, as renewed enthusiasm for Trucking and Railroads -- two of today's best performers -- lent some notable support to the Industrials sector. Consumer Discretionary was another influential leader to the upside, as lower energy prices made retail stocks more attractive while homebuilders got a boost following multiple analyst upgrades in the space (e.g. DHI +3.9%, SPF +4.9%, and TOL +5.1%).

Consumer Staples was also in focus, especially after Supervalu (SVU 32.38 +1.37) nearly quadrupled quarterly profits and boosted its full-year guidance, and CVS Corp (CVS 29.72 unch) raised its Q3 profit outlook. However, ethanol producer Archer-Daniels-Midland (ADM 37.12 -1.38), one of this year's best performers, consolidating in sympathy with plunging oil prices, overshadowed the upside guidance. Agricultural Products was the day's worst performing S&P industry group. DJ30 +9.36 NASDAQ +3.66 SP500 +2.76 NASDAQ Dec/Adv/Vol 1495/1519/1.73 bln NYSE Dec/Adv/Vol 1561/1671/1.39 bln

3:30 pm : Indices remain in a holding pattern going into the close of trading. Within the Dow, American Express (AXP 57.48 +0.96) is pacing the way higher after Merrill Lynch raised its price target to $66 from $59. Intel (INTC 20.91 +0.29), AT&T (T 32.67 +0.49) and Exxon Mobil (XOM 67.27 +0.72) are also posting gains of at least 1.0%, but with 17 out of 30 components still losing ground, it remains to be seen if the Dow can revisit the intraday all-time high of 11,877.90 that was reached midday. DJ30 -2.80 NASDAQ -0.79 SP500 +1.30 NASDAQ Dec/Adv/Vol 1541/1452/1.49 bln NYSE Dec/Adv/Vol 1583/1637/1.20 bln