STOCK MARKET WATCH, Thursday February 8

[ozymandius]

Thursday February 8, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 711 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2236 DAYS
WHERE'S OSAMA BIN-LADEN? 1940 DAYS
DAYS SINCE ENRON COLLAPSE = 1900
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 7
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 7, 2007

Dow... 12,666.87 +0.56 (+0.00%)
Nasdaq... 2,490.50 +19.01 (+0.77%)
S&P 500... 1,450.02 +2.02 (+0.14%)
Gold future... 657.30 -1.40 (-0.21%)
30-Year Bond 4.85% -0.02 (-0.37%)
10-Yr Bond... 4.75% -0.02 (-0.42%)






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

Housing Update
BY CHRIS PUPLAVA

Housing was the major component that helped fuel the economic expansion after the last recession. As such periodic analysis of housing’s decline will shed light into whether a hard or soft landing is in store along with a look at consumer expenditures. This week I will be looking at housing with a look at the consumer next week.

Housing’s importance towards consumer expenditures

To illustrate housing’s contribution towards consumer expenditures, take a look at cash out refinancing and its correlation with housing appreciation below. Leading into the last two recessions cash out refinancing plummeted as consumers cut back as housing prices cooled. Notice that both have recently peaked and have turned down, a potential warning sign.

-see chart-

To determine where cash out refinancing may be headed, a look at home appreciation sheds some light. There is a typical lag of one year between home price appreciation peaks and cash out refinancing level peaks as illustrated in the chart below where home appreciation has been advanced one year. The year-over-year (YOY) rate of change for homes has turned negative and is below the level of the last housing recession in the early 1990s. The magnitude of decline in housing appreciation does not bode well for cash out refinancing as it indicates a sharp contraction in cash out refinancing which would reduce consumer expenditures and slow GDP even further.

-cut-

Housing Supply

Looking at the months' supply of new and existing homes shows a greater turnaround than does home sales (Figure 4). This indicates that the recent pick up in demand is not the greatest factor in the decline in the months supply of homes, but actually a greater decrease in new and existing homes for sale. As was stated in regard to housing demand in Figure 4, housing cycles typically have multiple tops and bottoms. In terms of months of supply for new and existing homes, there are typically several tops in months of supply instead of a single top. This also makes the recent plunge in months of supply suspect and should not be taken as a definitive signal that housing has bottomed.

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

[54anickel]

34. Toll's Orders Plunge, Forecasts Larger Land Writedown (Update5)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aP9di7Rc9JVY&refer=home

Feb. 8 (Bloomberg) -- Toll Brothers Inc., the largest U.S. luxury home builder, reported a 33 percent plunge in first- quarter orders and said expenses to reduce land holdings may almost triple.

Orders declined to 1,027 units and homebuilding revenue slid 19 percent to $1.09 billion in the three months ended Jan. 31, Horsham, Pennsylvania-based Toll said today in a preliminary earnings statement. The shares fell as much as 5.4 percent, the worst decline since August.

Toll, a seller of houses that cost three times the national median, said land writedowns will be as much as $160 million after an earlier forecast of $60 million. While the charge is less than builders including Pulte Homes Inc., Chief Executive Officer Robert Toll said he's abandoning parcels ``because some deals don't make sense under current market conditions.''

``It still shows that demand is weak, especially at the high end of the market,'' John Tomlinson, an analyst at Majestic Research in New York, said in an interview.

snip>

Toll said 436 customers, or 30 percent, canceled contracts in the first quarter, down from 585, or 37 percent, in the previous three months. A year earlier, there were 151 cancellations. There was a net decline of 33 percent to 1,027.

New Forecast

Writedowns of the company's land holdings will ``significantly'' exceed previous estimates, the company said.

The disclosure surprised some Wall Street analysts. :eyes:

more...

[54anickel]

35. Plummeting commissions thin real estate's ranks

http://www.ocregister.com/ocregister/money/housing/article_1566248.php

Agents and brokers earned a combined $1.16 billion in '06, or 20% less than in '05, research firm estimates. Lost income results in closed brokerages, career changes.
By JEFF COLLINS
The Orange County Register
Orange County real estate agents earned a fifth less in commissions last year, forcing brokerages to close some offices and pushing some agents out of the business.

Brokers and sales agents earned an estimated $1.16 billion in commissions from the sale of existing homes last year compared with $1.46 billion in 2005, according to an analysis by Brea research firm Real Data Strategies.

At the same time, a record number of agents were competing for a share of that shrinking income. Across California, the number of real estate license holders reached 521,000, soaring 69 percent since 2000.

Two percent of all Orange County jobs – at least 31,000 full-time workers – are in real estate, according to state figures. More than 59,000 people in the county have real estate licenses – 44,000 as sales agents and nearly 15,000 as brokers.

"There were payroll reductions. Offices closed. All kinds of things happened to … keep (offices) running with the total loss of commission revenue," said Rich Cosner, president of a chain of nine Prudential California Realty offices in Orange County and the Inland Empire.

more...

[ozymandius]

2. Today's Reports

8:30 AM Initial Claims 02/03
Briefing Forecast 310K
Market Expects 310K
Prior 307K

10:00 AM Wholesale Inventories Dec
Briefing Forecast 0.7%
Market Expects 0.6%
Prior 1.3%

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

[UpInArms]

25. Initial Claims @ 311,000

116. U.S. 4-week avg. continuing jobless claims up to 2.50 mln
8:30 AM ET, Feb 08, 2007 - 2 hours ago

117. U.S. continuing jobless claims fall 54,000 to 2.49 mln
8:30 AM ET, Feb 08, 2007 - 2 hours ago

118. U.S. 4-wk. avg. initial jobless claims up 3,250 to 308,250
8:30 AM ET, Feb 08, 2007 - 2 hours ago

119. U.S. weekly initial jobless claims up 3,000 to 311,000
8:30 AM ET, Feb 08, 2007 - 2 hours ago

[UpInArms]

26. Wholesale Inventories down 0.5%

32. U.S. Dec. wholesale inventory-sales ratio falls to 1.17
10:00 AM ET, Feb 08, 2007 - 43 minutes ago

33. U.S. Dec. wholesale sales up 1.8%
10:00 AM ET, Feb 08, 2007 - 43 minutes ago

34. U.S. Dec. wholesale inventories biggest drop since May '03
10:00 AM ET, Feb 08, 2007 - 43 minutes ago

35. U.S. Dec. wholesale inventories down 0.5% vs up 0.6% expect
10:00 AM ET, Feb 08, 2007 - 43 minutes ago

[54anickel]

32. Seen as:Overall good news for economy, although Q4 will look weaker

http://www.marketwatch.com/news/story/wholesale-inventories-drop-sharply-december/story.aspx?guid=%7BE6319238%2D8B1C%2D4FD9%2DB530%2D652EFB7F68AD%7D&siteid=yhoo&dist=yhoo

December wholesale inventories off sharply
Overall good news for economy, although Q4 will look weaker

WASHINGTON (MarketWatch) -- Inventories at U.S. wholesalers dropped unexpectedly in December, which puts the economy in better position for strong growth in coming months, although the final quarter of 2006 will look weaker.

snip>

The wholesale inventory report rarely affects financial markets, and today's report was no exception. Read Market Snapshot.

Wholesale inventory data is of interest primarily to economists tweaking their estimates for gross domestic product, and in this respect, today's data were something special, economists said.

For starters, it means that the Commerce Department was much too optimistic when it reported that gross domestic product grew at a 3.5% rate in the fourth quarter.

Analysts said that the inventory and other data now point to a downward revision to a 2.5% growth rate when the government releases its revised estimate on Feb. 28.

But economists are quick to point out that this means the inventory adjustment will be contained in the final three months of 2006, good news for the economy in 2007.

"Wholesalers made good progress in December in realigning their inventory levels with demand...and of course, lower inventory levels leave the economy better positioned for future growth," said Michelle Girard, strategist at RBS Greenwich Capital.

more...

So, last year sucked more than you were led to believe, but it's good news since it lowers the bar for this year?

[ozymandius]

3. Oil steady below $58

LONDON (Reuters) - Oil steadied below $58 on Thursday after its repeated failure to breach $60 triggered a two-percent sell-off the previous day.

"For the third day in a row, a timid approach of $60 a barrel led to a rapid and continued correction," analyst Olivier Jakob of Swiss-based Petromatrix said.

"The build in U.S. gasoline stocks fueled the negative sentiment," he added, referring to U.S. data published on Wednesday that showed a drop in heating oil and crude stocks in the world's top consumer but an increase in gasoline reserves.

-cut-

OPEC supply cuts are also underpinning prices. At meetings in October and December the group agreed to remove a total 1.7 million bpd from the market. Figures released by Lloyd's Marine Intelligence United showed OPEC was delivering on its pledge.

more

[ozymandius]

4. El Paso Corp. settles oil-for-food scam case

Houston pipeline giant El Paso Corp. will pay more than $7.7 million to settle claims that it helped the former Iraqi regime receive millions in kickbacks through a U.N.-sponsored humanitarian program.

Under a settlement with the Department of Justice, El Paso will forfeit $5.48 million, the amount of illegal surcharges it said its oil purchases provided to the former government of Saddam Hussein. It will also pay a $2.25 million civil penalty to the Securities and Exchange Commission without admitting or denying guilt.

In return, the company won't be prosecuted for its participation in the illegal payments made through the U.N. Oil-for-Food program, except for possible criminal tax violations, according to Michael Garcia, U.S. Attorney for the Southern District of New York.

The government cited El Paso's cooperation in ongoing investigations, assurances employees involved in the transactions no longer work there and "the significant consequences that a criminal indictment would have upon the legitimate operations and innocent employees and shareholders of El Paso" as reasons for the agreement.

http://www.chron.com/disp/story.mpl/business/energy/4535770.html

[burf]

23. Does anyone know

if El Paso or Coastal Corp gave any money to candidates running for say, pResident or Congress in the 2000 or 2004 election?

I know this is probably not as important as which Speaker Pelosi's getting an aircraft and other more pressing matters of state. But, I thought it might be interesting just finding out.

[cosmicdot]

63. or if any own stock in these companies?

http://www.opensecrets.org
has lots of info ... you can research personal finance statements, donors, PAC money, etc.


for example,

http://www.opensecrets.org/pacs/lookup2.asp?strId=C00093948

http://www.opensecrets.org/pacs/pacgot.asp?strID=C00093948&Cycle=2006

http://www.opensecrets.org/softmoney/softcomp2.asp?txtName=El+Paso+Corp&txtUltOrg=n&txtCycle=2002&txtSort=Amnt

http://www.opensecrets.org/politicians/contrib.asp?CID=N00005892&cycle=2000
#17

http://www.opensecrets.org/softmoney/softcomp2.asp?txtName=Coastal+Corp&txtUltOrg=n&txtSort=name&txtCycle=2002


removing corporate money would be a good start

[ozymandius]

5. Aetna's Profit Increases on Growth in Smaller Markets (Update3)

Feb. 8 (Bloomberg) -- Aetna Inc., the third-largest U.S. health insurer by revenue, said fourth-quarter earnings increased 4.3 percent as the company added services for small employers and individuals.

Net income climbed to $434.1 million, or 80 cents a share, from $416.3 million, or 70 cents, a year earlier, the company said in a Business Wire statement today. Revenue for the Hartford, Connecticut-based company rose 8.5 percent to $6.4 billion. The company raised its full-year forecast for operating earnings to $3.30 a share, and said first-quarter operating earnings is expected to be 77 cents a share.

Aetna, which long specialized in national accounts for employers of more than 3,000 people, is branching into a wider range of products and services, such as health coverage for college students. Aetna increased enrollment by 678,000, or 5 percent, in 2006.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJT3ca0_0vJ0&refer=home

[ozymandius]

6. Treasuries edge up after 10-year bond auction

US Treasuries edged up on Wednesday, bolstered by a well-received auction of new 10-year notes and after the only economic releases of the day - fourth quarter productivity and unit labour costs - gave mixed messages on growth.

The market largely brushed off hawkish inflation comments from Charles Plosser, Philadelphia Federal Reserve president, as traders focused on the $13bn auction of 10-year notes, the second sale in the US Treasury's quarterly refunding.

The auction met with demand that outweighed the amount of debt on offer by 2.41 times, above the 2006 average of 2.32. Indirect bidders, which include customers of primary dealers and foreign central banks, bought $3.89bn, or 29.9 per cent, of the sale, not far below last year's average.

more

[ozymandius]

7. HSBC blames $10B charge on bad U.S. loans

LONDON/NEW YORK (Reuters) -- Europe's biggest bank HSBC said on Wednesday its charge for bad debts would be over $10.5 billion for 2006, some 20 percent above analysts' average forecasts, due to problems in its U.S. mortgage book.

HSBC (Charts) said in a trading update late on Wednesday that slowing home price growth was being reflected in accelerated delinquency trends across the U.S. sub-prime mortgage market, particularly in more recent loans.

Analysts had expected HSBC's 2006 loan impairment charge to be $8.8 billion, according to the average of 11 analysts' forecasts, the bank said.

http://money.cnn.com/2007/02/07/news/international/hsbc.reut/index.htm?postversion=2007020719

[ozymandius]

8. Realtors: Real estate has already bottomed

Existing home sales have likely hit bottom and should rise this year, says National Association of Realtors, but new home sales should show further weakness.

WASHINGTON (Reuters) -- U.S. existing-home sales have likely hit bottom and should gradually rise this year, but sales should still fall short of last year's mark, a real estate industry group said on Wednesday.

The National Association of Realtors said it expects sales of previously owned homes in 2007 to reach 6.44 million units, down slightly from last year's 6.48 million units. It forecast sales of 6.64 million in 2008.

-cut-

While NAR said sales of existing homes looked set to rise, it looked for further weakness in new-home sales. It said sales of new homes would come in at 961,000 units this year and 971,000 in 2008, both below the 1.06 million sold last year.

http://money.cnn.com/2007/02/07/real_estate/realtors.reut/index.htm

[burf]

24. Good morning Ozy,

Is this a case of wishing will make it so? I think the phrase "you ain't seen nothing yet" is more apropos.

[54anickel]

33. HSBC Says Bad-Loan Charges to Exceed Analysts' Estimates by 20%

http://www.bloomberg.com/apps/news?pid=20601087&sid=ar.WRLz45vtA&refer=worldwide

Feb. 7 (Bloomberg) -- HSBC Holdings Plc, Europe's biggest bank, said it's increasing loan-loss provisions for 2006 because mortgages to risky borrowers in the U.S. are going bad faster than the company expected only two months ago.

Provisions will be 20 percent higher than the $8.8 billion that analysts now estimate, London-based HSBC said in an e-mailed statement.

``It is clear that the level of loan-impairment provisions to be accounted for as at the end of 2006 in respect of Mortgage Services operations will be higher than is reflected in current market estimates,'' the bank said in the statement.

bit more...

[ozymandius]

9. Stocks look to hold back

NEW YORK (CNNMoney.com) -- Stocks were headed for a flat to lower open Thursday amid caution about earnings and the economy and what retailers would report for their post-holiday sales period.

At 6:11 a.m. ET, Nasdaq and S&P futures were lower, but they projected a somewhat steady open when fair value was considered.

-cut-

Major U.S. retailers were due to report January sakes. Analysts surveyed by Thomson First Call forecast that sales at stores open at least a year, a closely watched retail measure known as same-store sales, rose 3.1 percent, which would be far below the 4.9 percent gain in January 2006.

No. 1 retailer Wal-Mart Stores (Charts) reported over the weekend that its same-store sales gained 2.2 percent, which was better than originally expected.

http://money.cnn.com/2007/02/08/markets/stockswatch/index.htm?postversion=2007020806

[Ghost Dog]

10. Mixed earnings, pre-ECB caution cap European shares

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=allBreakingNews&storyID=2007-02-08T101051Z_01_L08238449_RTRIDST_0_MARKETS-EUROPE-STOCKS-UPDATE-1.XML

PARIS, Feb 8 (Reuters) - European shares flitted just below the unchanged mark on Thursday as HSBC's (HSBA.L: Quote, Profile , Research) profit warning took the shine off an otherwise robust set of earnings, while investors braced for two European interest rate decisions.

Dutch bank ABN AMRO (AAH.AS: Quote, Profile , Research), British fixed-line telecoms operator BT (BT.L: Quote, Profile , Research), British household cleaning goods group Reckitt Benckiser (RB.L: Quote, Profile , Research) and Swiss wealth manager Julius Bear (BAER.VX: Quote, Profile , Research) released upbeat updates, and Renault (RENA.PA: Quote, Profile , Research) pleased investors with a smaller-than-expected dip in operating margin.

The FTSEurofirst 300 <.FTEU3> index of top European shares was 0.06 percent lower at 1,546.08 points by 1000 GMT, retreating from the previous session's six-year closing high as HSBC's warning and disappointing news from consumer goods giant Unilever (ULVR.L: Quote, Profile , Research) kept London's FTSE 100 .FTSE in the red.

HSBC warned its charge for bad debts would be more than $10.5 billion for 2006, 20 percent above analysts' average forecasts, sending its shares 2.4 percent lower. But some traders and analysts expected HSBC's share weakness to be brief.

"We believe the new senior management team is 'clearing the decks' for better performance in 2007," Morgan Stanley analysts said in a note, citing among other factors HSBC's habit to "come in early" and provision aggressively on credit issues.

Unilever was another sore spot, off 3.2 percent despite the Anglo-Dutch group topping forecasts with a 27 percent rise in 2006 earnings. Analysts said its recovery appeared slow as it lagged its major competitors.

/...

[Ghost Dog]

15. ECB keeps interest rates on hold

http://www.ft.com/cms/s/a10703c6-b762-11db-bfb3-0000779e2340.html

The European Central Bank left its main interest rate unchanged at 3.5 per cent on Thursday, focusing attention on whether borrowing costs will rise in March.

The decision of the ECB’s governing council was widely expected following clear signals from Jean-Claude Trichet, the central bank’s president, after January’s interest-rate setting meeting.

Mr Trichet is expected to signal at a press conference later on Thursday that the interest rate will rise to 3.75 per cent next month. Analysts will be listening to see if the ECB president talks of the central bank exercising “strong vigilance” – which in the past has been used to signal an interest rate rise one month ahead. But there is also a chance that Mr Trichet might modify the ECB’s use of such “code words”.

The continuing strength of eurozone growth was highlighted by German trade figures showing exports by Europe’s largest economy rose by almost 14 per cent last year. Imports were also up strongly – rising by 16.5 per cent – which probably at least partly reflected a pick-up in domestic demand.

...

At the same time, eurozone inflation remains within the ECB’s target – a rate “below but close” to 2 per cent - reducing the pressure for further interest rate increases.

/...

[Ghost Dog]

16. UK interest rates stay at 5.25 per cent

http://www.ft.com/cms/s/6d39d674-b756-11db-bfb3-0000779e2340.html

Interest rates were left unchanged at 5.25 per cent on Thursday, but the City remains convinced that further increases in the cost of borrowing are just around the corner.

The Bank of England’s decision to stay its hand suggests that the majority on its monetary policy committee (MPC) were prepared to wait to see what effect the three 0.25 per cent percentage point increases since August will have on demand in coming months.

It also may point to a fall back in the consumer price index measure of inflation for January, on which the official report will have been given to the MPC prior to their vote.

The jump in CPI inflation to 3 per cent in December, a full 1 percentage point above the Bank’s 2 per cent target, is one of the main reasons for the rate increase in January.

/...

[Ghost Dog]

11. PREVIEW-G7 ministers head to Essen meeting at odds over yen

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=allBreakingNews&storyID=2007-02-08T105450Z_01_L0740122_RTRIDST_0_G7-FINANCE-PREVIEW.XML

* What: G7 finance ministers and central bank chiefs meet

* When: Friday Feb. 9 and Saturday Feb. 10

* G7 to address foreign exchange rates, hedge fund transparency, promoting energy efficiency, fiscal policy in Africa, IMF reform and emerging bond markets.

BERLIN, Feb 8 (Reuters) - Finance ministers from the Group of Seven rich nations meet in Germany this weekend divided over whether the club should send markets a message on the weak yen. Euro zone countries have complained loudly about the Japanese currency, fearing its descent to record lows against the euro is damaging their economies by making European goods and services too expensive compared with those from Japan.

But they have won no support from the United States, which says the yen's value is set fairly -- a position echoed by Canada. Britain has remained silent and Japan has played down the issue, saying the yen is unlikely to dominate the talks.

Hosts Germany have tried to avoid inflaming the issue of currencies, which the G7 -- Germany, the United States, Japan, Britain, France, Italy and Canada -- will address on Saturday as part of a discussion on imbalances in the global economy.

/...

[Ghost Dog]

17. US urges Europe to boost Iran sanctions

http://www.ft.com/cms/s/d5337106-b6eb-11db-8bc2-0000779e2340.html

The US on Wednesday night voiced its growing frustration over the failure of European governments to toughen financial sanctions on Iran over its nuclear programme.

Differences over the sanctions between Washington and European governments threaten to open a new transatlantic division over how to deal with Tehran’s nuclear ambitions, which have until now been papered over.

Gregory Schulte, the US ambassador to the International Atomic Energy Agency, the United Nations nuclear watchdog, went public with Washington’s complaints, saying the Europeans should do more. He drew attention to European export credit agencies that provide billions of dollars a year in help to Iran for the finance of imports.

“Faced by the defiance of Iran’s leadership, the European Union and European countries can do more – and should do more – to bolster our common diplomacy. Why, for example, are European governments using export credits to subsidise exports to Iran? Why, for example, are European governments not taking more measures to discourage investment and financial transactions?” he said in a speech drafted for delivery in Munich last night.

/...

Well... Does he really want an honest answer?

(Gotta go. Heading for the Pyrenees for a few days off.)

[AnneD]

42. Have fun in the mountains,

Ghost Dog, wish I were there.

[Ghost Dog]

12. FACTBOX-Recent comments by BOJ, govt on monetary policy

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-02-08T090228Z_01_T322410_RTRIDST_0_JAPAN-BOJ-COMMENTS-FACTBOX.XML

Feb 8 (Reuters) - Views among traders remain divided on whether the Bank of Japan will raise interest rates at its next policy meeting on Feb. 20-21, as recent economic data on consumer spending and prices has stayed soft.

The central bank left the overnight call rate target at 0.25 percent last month, by a 6-3 vote.

Those who voted against keeping rates steady proposed a rate hike, and BOJ Governor Toshihiko Fukui has said there was only a slight difference in views on the economy between those three and the rest of the board.

Government representatives attend the BOJ's policy meetings and are entitled to ask it to postpone a vote on a policy change, although the central bank can disregard such a suggestion.

Following are summaries of recent comments by the BOJ and government officials on monetary policy.

/continues...

[Ghost Dog]

13. Tokyo stocks flat, early gains erased on weak shipping issues

http://asia.news.yahoo.com/070208/kyodo/d8n5dlog0.html

(Kyodo) Tokyo stocks ended little changed Thursday as late selling of shipping and other issues triggered by poor earnings outlooks for Nippon Yusen erased early gains led by high-tech issues and exporters.

The 225-issue Nikkei Stock Average rose 0.16 point to 17,292.48. There was virtually no change in percentage terms for the Nikkei. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 8.18 points, or 0.47 percent, to 1,720.18.

Tokyo stocks rose in early trading on buying of high-tech shares following a rise in similar shares overnight in New York, brokers said.

Investors also bought exporters after the yen lost ground against the dollar and the euro overnight in New York amid hopes that Group of Seven financial chiefs are unlikely to express concern over the yen's weakness in a statement to be issued after their meeting Friday and Saturday in Germany, brokers added.

But the early gains were erased toward the close with the Nikkei plunging into negative territory temporarily.

The late selling was triggered by shipping company Nippon Yusen's downward revision of its group operating profit for the fiscal year to March 31 to 110 billion yen from an initially anticipated 115 billion yen, brokers said.

Nippon Yusen fell 76 yen, or 7.76 percent, to 904 yen, dragging down the whole shipping sector by 5.11 percent.

/...

[UpInArms]

14. dollar watch

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


Last trade 84.94 Change +0.23 (+0.27%)

Dollar Relegated To Congestion Despite Productivity Boost

http://www.dailyfx.com/story/currency/eur_news/Dollar_Relegated_To_Congestion_Despite_1170880131032.html

Fundamentals hit a modest mid-week peak in the New York session Wednesday; but the combined efforts of policy official’s comments and a jump in worker productivity could not fuel volatility in the underlying greenback.
Despite the lack of action in the dollar, EURUSD managed a 50 point rally to 1.3025 from Asian session lows with the help of German data. The USDCHF was also able to swing 50 points, but the move was trimmed by a range that has formed above 1.2380 support. Arguably the most tangible congestion came on behalf of the British pound which has stalled 20 points below resistance flagged at 1.9750. Finally, the battle between the prominence of the carry and possibility of official intervention has allowed the USDJPY to rebound 85 points from key support around 120.

While action in the currency market was rather dry, position traders had another volley of data to consider in their dollar valuations. The Labor Department reported productivity among US workers rose 3.0 percent in the fourth quarter, following a revised 0.1 percent contraction. At the same time, the labor cost index slowed from a 3.2 percent pace of expansion to 1.7 percent. Together, these numbers confirms the Fed’s neutrality and suggest wages will be less of a threat to overall inflation that original suspected. However, looking at the data from different angles challenges such a conclusion. A particular look at the wages sub-gauge reports a significant 4.8 percent jump, spurred by a jobless rate near a five-year low and the initial exit of Baby Boomers from the work force. Also, the annual numbers are fully contradicting their quarterly equivalents. Through 2006, productivity slowed from 2.3 percent to 2.1 percent growth, the fourth consecutive deceleration. Conversely, labor costs surged 3.2 percent through the same period, the biggest pick up since 2000. When Alan Greenspan was Chairman of the Fed Reserve, he took the firm stance that inflation would be tamed by a boost in productivity. Without this natural domestication in price growth, the Fed may have to step in should round of quarterly data reveal the persistence in the unwanted conditions.

Though the productivity data provided a little pick up for the dollar in the hours after its print, other factors were keeping the unit steady. In the commodities market, crude prices continued their steady march higher. Safe from $60 per barrel crude for another day, prices dropped $1.13 by the Wednesday session close to $57.75 after data showed inventories grew last week. Elsewhere, officials were exacting undue influence on the markets. Treasury Secretary Paulson sat in on his second day of testimony, though his effect on the currency market was centered on the repetition of his comments yesterday that the yen reflects fundamentals. More active at the helm, Philadelphia Federal Reserve President Charles Plosser offered up his outlook for the economy. Plosser reported, “growth prospects of the economy are improving” which could in turn spur inflation. Now traders will turn to Friday’s G-7 meeting on Friday and then Fed Chairman Ben Bernanke’s semi-annual report to Congress next week.

...more...

G7 To Include China In Talks

http://www.dailyfx.com/story/dailyfx_reports/top_fx_market_movers/Hong_Kong_And_China_1170884590479.html

Hong Kong And China
Rising to a record level, the yuan was boosted by news that Chinese officials will be included in this weekend’s G7 meeting. Confirmed by German Deputy Finance Minister Thomas Mirow, the news buoyed the yuan against the dollar in the New York session. Advancing on yesterday’s momentum, the Chinese currency pair broke through yesterday’s low and traded even lower at 7.7520 ahead of the close. Incidentally, the Hong Kong dollar currency pair moved in contrast, rising above technical resistance in the session. Trading above the key psychological 7.8100 figure, the underlying spot is offering suggestions of further upside in the USDHKD pair towards the instituted upper band of the fixed pegged currency. The HKD move was surprising considering the inclusion of Chinese government officials in this weekend’s meeting. Nonetheless, the invite does show the world the vast advancement that the country has achieved in recent years in the global forum. Although currency fluctuations will obviously be covered, China is also expected to chime in on issues regarding global surveillance and imbalances between economies. Separately, economic data was relatively absent for the Hong Kong economy, set aside from a report on the foreign currency reserves for the month of January. For the first month of the new year, Hong Kong officials pared back investment in foreign reserves. For the year-on-year comparison, reserves rose by 4.6 percent compared to a 0.4 percent monthly increase. The decline in building local reserves stemmed from a weaker local currency as the Hong Kong dollar lost considerable ground against the US dollar. The depreciation in the Hong Kong dollar was little incentive for policy officials to keep the pace of investment in US assets steady.

<snip>

Singapore Dollar
A pull back in the pace of investment was additionally witnessed in the Singapore economy. For the month, total reserves actually declined slightly versus the $136.81 billion in December to $136.66 billion. Notably, total reserves in US dollars declined for the first month in four as gold and FX reserves remained relatively unchanged at $208.43 billion. The January report is also the first time since August that the Monetary Authority of Singapore elected to remain relatively flat in the market despite the appreciating Singapore dollar. Usually during periods of appreciation, policy officials will elect to add to reserves as the purchasing power of the local Singapore dollar increases. Including today, the underlying spot has advanced for the last seven sessions and continues to teeter at the nine month high. A level that is seemingly unbreakable, the currency has fully tested the resistance figure at least three times in the last month and a half, with plenty of bidders still willing to take the currency higher. Stock market performance is adding to the notion as benchmark records are being set seemingly every other day. Ultimately, the trend is seemingly ready to continue heading into the G7 meeting this weekend with the dearth of economic data for the week.

...more...

[54anickel]

36. Bank of Korea weighs overseas investments

http://www.ft.com/cms/s/fd93eec2-b741-11db-bfb3-0000779e2340.html

The Bank of Korea said on Thursday that it was considering investing part of South Korea’s huge international reserves in overseas stocks and especially the blue chips of advanced countries in an effort to gain higher returns.

The announcement comes as the central bank faces increasing calls for better management of the country’s $240bn in foreign exchange reserves, the world’s fifth-largest, after nine consecutive years of growth.

snip>

The BoK is trying to improve returns from management of its ballooning reserves by diversifying investments. It said in 2005 that it would increase investments in high-yielding, non-government debt, such as paper issued by financial institutions and asset-backed securities, and diversify its holdings into a variety of currencies to cope with the weakened dollar.

snip>

The BoK has been criticised for the conservative way in which it manages the country’s huge foreign reserves, which are seen excessive by some, given the size of the South Korea’s economy. The country’s international reserves increased sharply in recent years, thanks to robust exports and the BoK’s aggressive intervention in the foreign exchange market to curb the won’s sharp appreciation against the dollar.

more...

[54anickel]

43. Gold Prices Climb on Demand for Alternative to Easing Dollar

http://www.bloomberg.com/apps/news?pid=20602013&sid=aVfhCjfRPFW8&refer=commodity_futures

Feb. 8 (Bloomberg) -- Gold rose in New York as a decline in the value of the dollar against the euro boosted the appeal of the precious metal as an alternative investment.

Gold sometimes moves in the opposite direction of the U.S. currency, which fell against the euro after European Central Bank President Jean-Claude Trichet signaled policy makers may boost interest rates next month. Gold gained 23 percent last year, while the euro climbed 10 percent against the dollar.

``The euro is a big part of gold's support today,'' said Matthew Zeman, a metals trader at LaSalle Futures Group in Chicago.

Gold futures for April delivery rose $6.40, or 1 percent, to $663.70 an ounce at 11:59 a.m. on the Comex division of the New York Mercantile Exchange. Before today, prices had climbed 3 percent this year.

snip>

``Gold is still predominantly tracking oil,'' said Frank McGhee, head metals trader at Integrated Brokerage Services LLC in Chicago. ``If oil falls off from here, you'll see a new wave of selling, and that's going to halt the metals rally.''

Gold's gains may also limited should the U.S. currency strengthen. The dollar is up against a basket of six major currencies for the first time in three sessions.

``The dollar is probably still the best currency to hold because of interest rates,'' said Leonard Kaplan, president of Prospector Asset Management in Evanston, Illinois. ``Gold has struggled at the $660 level. People see gold as being at the top of the range.'' :eyes: You just need to be holding a whole lot more of them these days.

more...

[UpInArms]

18. Weak Demand Hurts Whirlpool's Profit

http://www.nytimes.com/2007/02/08/business/08whirlpool.html?ex=1328590800&en=2043de0da53ad0a4&ei=5088&partner=rssnyt&emc=rss

(free registration or try www.bugmenot.com)

Whirlpool reported a 13 percent decline in quarterly earnings yesterday, hurt by soft demand in the United States, and cut its profit forecast for the year.

Whirlpool said it expected 2007 appliance shipments to fall 2 percent to 3 percent in North America, its biggest market, where sales have been hurt by the slumping housing market and higher borrowing costs.

The company, based in Benton Harbor, Mich., said profit fell to $109 million, or $1.37 a share, from $126 million, or $1.83 a share, a year earlier. The latest results included a loss of 30 cents a share from discontinued operations tied to assets acquired in Whirlpool’s purchase of Maytag last year.

Sales rose 25 percent, to $5 billion, helped by the inclusion of Maytag and strong international demand.

In North America, which accounts for about 65 percent of Whirlpool’s sales, revenue rose 29 percent, to $3.2 billion. But shipments of washers, refrigerators and other major appliances fell about 8 percent, the company said.

...more...

must be charging more and selling less - but ... but.... that would mean that prices are inflating!

[UpInArms]

19. Sara Lee Posts a $62 Million Loss

http://www.nytimes.com/2007/02/08/business/08sara.html?ex=1328590800&en=cd9a385aa70c8d84&ei=5088&partner=rssnyt&emc=rss

CHICAGO, Feb. 7 (AP) — The food and household products maker Sara Lee said Wednesday that it lost $62 million in its most recent quarter, largely because of one-time charges.

The company said it lost 8 cents a share, in contrast to a profit of $438 million, or 57 cents a share, in the period a year earlier.

Revenue in the period, which ended Dec. 30 and was the second quarter of Sara Lee’s fiscal year, climbed 7 percent, to $3.18 billion from $2.97 billion a year earlier, as sales in the company’s six segments continued to grow.

Sara Lee, which is based in Downers Grove, Ill., said its earnings were weighed down by 29 cents a share for one-time charges related partly to Brazilian coffee operations and two Mississippi factories that were closed.

...more...

another revenue climbing - losses escalating story - what's going on here?

[AnneD]

27. Morning Marketeers....

:donut: and lurkers...OK, I'll say it. I guess somebody doesn't like Sara Lee.:spray: I'm so easily amused some times....

Well, I will be leaving the comfortable( :rofl: ) confines of my office and go to a Healthcare leadership conferince in Baltimore. Can any of you guys around there give me a heads up on what I might scope out. Frankly, the last few weeks have been a living hell that this is a perfect break for me. The only person chewed out more this week has been the principal. God, I wouldn't want her job. I think we are both starting to think more and more about retirement from the school system.

Today is a busy day-we have an outbreak of headlice. Such job security:eyes:

[54anickel]

28. Didn't they just announce another round of lay-offs?...Does the google....

Why yes, they did!!

http://www.wisconsinagconnection.com/story-national.php?Id=252&yr=2007

Sara Lee Corp. said Monday it will lay off nearly 1,700 employees as part of a reorganization plan to increase business performance.

As part of the reorganization, Sara Lee says it will close its pork processing and FlavoTech spice production plants in West Point, Mississippi, on March 30, resulting in about 1,200 layoffs.

"Unfortunately, after looking at our business, we determined that these facilities will not allow us to meet our efficiency or long-term profitability expectations," Ken Brandenburg, vice president of operations in the company's food and beverage division, said in a news release from the company.

The other layoffs will come from company restructuring worldwide.


Then there was the 2006 layoff....

http://www.chicagoist.com/archives/2006/02/14/layoffs_nobody_does_it_like_sara_lee.php

Anyhoo, Sara Lee- Superior Coffee's parent company- announced Monday that it is closing down Superior's roasting plant at 2278 N. Elston, resulting in a loss of 80 jobs, on April 14th. Sara Lee cited an aging infrastructure in the plant that would have needed significant money to upgrade and excess production in its other coffee roasting plants as the reasons for the decision.

Then in 2005 there was that odd Sara Lee Branded Apparel - what, clothes that smell like cheescake? From what I can tell, it's the same corp :shrug:

http://www.findarticles.com/p/articles/mi_m0EIN/is_2005_July_11/ai_n14734142

WINSTON-SALEM, N.C. -- Sara Lee Branded Apparel today announced that it has completed an organizational review that results in the net reduction of approximately 775 positions - including the elimination of open positions - in the United States, Mexico and Canada. Approximately 285 employees located at Sara Lee Branded Apparel's U.S. headquarters accepted a voluntary transition program, some of whom will be replaced.

Sara Lee Corporation announced earlier this year that it intends to spin off Sara Lee Branded Apparel into an independent, publicly held company in 2006, and Sara Lee Branded Apparel said it anticipates adding positions over the next nine months to staff new functions required after the spin-off. Before the reductions, Sara Lee Branded Apparel employed approximately 45,000 people worldwide, and today's announcement affects less than 2 percent of the organization's total workforce.

[AnneD]

64. What happens...

when a company lays off so many folks that they can't lay off any more to turn a profit for the quarter? Or there are so few workers they can make a product. Is THAT when they finally declare bankruptcy.

[UpInArms]

20. US Productivity slowest in 9 years

http://www.nytimes.com/2007/02/08/business/08econ.html?ex=1328590800&en=54521220ec4b5569&ei=5088&partner=rssnyt&emc=rss

WASHINGTON, Feb. 7 (AP) — Productivity grew at a healthy 3 percent annual rate in the final quarter, although for all of 2006, this crucial measure of economic vitality expanded at the slowest pace in nine years.

Productivity, the amount of output for an hour of work, rose by 2.1 percent for all of 2006, down slightly from a 2.3 percent increase in 2005.

It was the slowest pace since a 1.6 percent gain in 1997, according to figures released Wednesday by the Labor Department. But the 3 percent annual growth rate in the last three months of 2006 was nearly double what economists were expecting.

Labor costs for each unit of output rose 3.2 percent for all of 2006, up from a 2 percent increase in 2005 and the fastest rise in worker wages and benefits since a 4.2 percent increase in 2000.

For the fourth quarter, wage pressures eased a bit, rising by just 1.7 percent, a better outcome than analysts had been expecting after a 3.2 percent rate of increase in the third quarter.

...more...

[54anickel]

31. Come on now, yesterday this was all sunshine and good news.

Feb. 7 (Bloomberg) -- U.S. worker productivity grew at the fastest rate in almost a year last quarter and labor costs rose at a slower pace, suggesting wages may pose less of an inflation threat.

snip>
``This report certainly gives the Fed a sense of relief,'' said Mark Vitner, a senior economist at Wachovia Corp. in Charlotte, North Carolina. ``They'll stay on hold through all of 2007 and a good part of 2008.''

For all of 2006, productivity rose 2.1 percent, after 2.3 percent in 2005, marking the fourth straight year efficiency gains have slowed. Labor costs increased 3.2 percent last year, up from 2 percent in 2005 and the biggest rise since 2000.

Championed by Greenspan

A separate report from the Fed today showed borrowing by U.S. households rose in December as consumers took out more personal loans. Additional figures from the Mortgage Bankers Association showed applications to buy a home or refinance an existing loan fell in the week ended Feb. 2.

Some policy makers say productivity is still strong enough to contain inflation as wages rise. In the 1990s, former Fed Chairman Alan Greenspan championed the idea that higher productivity rates would keep a lid on inflation even as the U.S. economy was gaining strength and unemployment was low. :eyes:


http://www.bloomberg.com/apps/news?pid=20601087&sid=aHJ2jpe93WMg&refer=home

[ozymandius]

21. G'morning Marketeers.

:donut: :donut: :donut:

Good to see you back GhostDog. Work calls. However there's a good chance that I'll be back before the close. Hope to see you then.

Meanwhile, have fun watching the show.

Ozy :hi:

[texpatriot2004]

22. K & R nm

[54anickel]

29. 11:37 numbers and such

Dow 12,592.21 74.66 (0.59%)
Nasdaq 2,482.95 7.55 (0.30%)
S&P 500 1,443.84 6.18 (0.43%)
10-yr Bond 4.7360% 0.0290
30-yr Bond 4.8510% 0.0190
NYSE Volume 1,081,708,000
Nasdaq Volume 784,984,000

11:30 am : The indices are bouncing off their morning lows, but not nearly enough to make a significant change in the standings. The Tech sector paring its losses is contributing to current recovery efforts. While weakness is noticeable in Semiconductors, Software and Hardware, which are consolidating some of yesterday's gains, Computer Storage is today's best performing S&P industry group. EMC Corp (EMC 14.62 +1.02) is surging nearly 8% to multi-year highs after announcing to take its VMWare subsidiary public. DJ30 -67.86 NASDAQ -5.59 SOX -0.7% SP500 -5.44 NASDAQ Dec/Adv/Vol 1727/1106/694 mln NYSE Dec/Adv/Vol 1965/1067/530 mln

11:00 am : Not much has changed as sellers continue to set the tone for this morning's action. The S&P Retail Index, though, has recently turned positive; but that's due in large part to gains of about 4% from Federated Departed Stores (FD 42.99 +1.67) and Gap Inc (GPS 20.00 +0.75) following better than expected Jan. comps.

Nonetheless, retailers as a whole painting a relatively mixed picture from a consumption standpoint are offering investors little to get excited about. While the final tally shows that about two-thirds of retailers topped analysts' expectations, the market was already pricing in a decent month since the holiday season overall was viewed as a disappointment. The Retail Index closed at an all-time high yesterday ahead of today's reports. DJ30 -81.63 NASDAQ -10.14 SP500 -6.04 NASDAQ Dec/Adv/Vol 1663/1104/558 mln NYSE Dec/Adv/Vol 1819/1180/422 mln

10:30 am : A renewed wave of selling interest within the last 30 minutes leaves the Dow extending its reach to session lows. The price-weighted index failing to find support above a key technical level of 12,620 is exacerbating the recent downturn. Of the 25 components now trading lower, JP Morgan (JPM 50.58 -0.63) and Intel (INTC 21.23 -0.28) are pacing the way, as their declines of 1.3% overshadow a 1.2% advance in Disney (DIS 35.92 +0.44) following its blowout Q1 report. Other notable Dow laggards include C (-1.1%), CAT (-1.1%), GM (-1.2%), and MO (-1.1%). DJ30 -57.85 NASDAQ -9.22 SP500 -4.90 NASDAQ Dec/Adv/Vol 1594/1050/376 mln NYSE Dec/Adv/Vol 1771/1099/266 mln

10:00 am : Equities are still on the defensive as eight out of 10 sectors remains negative. The absence of leadership from the S&P 500's most influential sector -- Financials, which is also today's worst performer (-0.8%), is the most noticeable reason behind today's early struggles. HSBC exacerbating worries about the sub-prime lending market is taking a toll on Thrifts & Mortgage (-2.0%). Of the two sectors holding onto small gains, it is also worth noting that they -- Utilities and Telecom -- are two of the smallest weighted sectors on the S&P 500.DJ30 -35.81 NASDAQ -9.81 SP500 -4.15 NASDAQ Dec/Adv/Vol 1583/904/190 mln NYSE Dec/Adv/Vol 1684/961/98 mln

09:40 am : As expected, stocks open lower as uncertainty about decelerating profit growth resurface to keep the market in a period of consolidation. A mixed bag of monthly same-store sales figures provides an added sense of nervousness, especially with quarterly reports from retailers still to come.

With extremely strong earnings growth in the Financials sector so far masking what may still wind up to be an end to 13 straight quarters of double-digit profit growth, the world's third largest bank -- HSBC Holdings (HBC 89.65 -2.57) -- raising provisions for bad debt by 20% is weighing heavily on Financials. DJ30 -27.64 NASDAQ -7.52 SP500 -3.22 NASDAQ Vol 92 mln NYSE Vol 48 mln

09:15 am : S&P futures vs fair value: -2.7. Nasdaq futures vs fair value: -5.0.

09:00 am : S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: -2.5. The market is still slated for a weak open as sluggish January retail sales give investors a reason to keep questioning the sustainability of recent market gains. Nasdaq 100 futures, though, are trading near their best levels of the morning; but, a Jan. comps shortfall from Costco (COST) and some profit taking in Technology following yesterday's Cisco-induced rally are acting as an overhang.

08:33 am : S&P futures vs fair value: -1.6. Nasdaq futures vs fair value: -4.2. Stocks still look like they will limp into this morning's opening bell with an added sense of caution. A mixed bag of monthly retail sales figures so far failing to give investors a clear read on the health of the consumer is contributing to the negative slant. Separately, initial claims just checked in, rising 3,000 to 311,000 (consensus 310,000). However, since the report was not compiled during the same week as the more closely-watched payrolls report and results basically matched consensus, the claims data have had little impact on pre-market trading.

08:00 am : S&P futures vs fair value: -2.4. Nasdaq futures vs fair value: -4.2. Early indications suggest a sluggish start for stocks as uncertainty about the decelerating pace of earnings growth feed concerns the market is ripe for a pullback after last week's rally. Investors are also showing some reserve until all of the same-store sales results are tallied for January, an increasingly watched month due largely to gift card redemptions.

Meanwhile, Disney (DIS) handily topping Wall Street expectations last night and an analyst upgrade on fellow Dow component Alcoa (AA) are noteworthy developments; but it remains to be seen if blue-chip investors can overcome a feeling of vertigo after the Dow eclipsed the 12,700 level yesterday for the first time ever.

06:18 am : S&P futures vs fair value: +0.2. Nasdaq futures vs fair value: -0.8.

[54anickel]

30. Stocks Fall Despite Retail Sales Results

http://biz.yahoo.com/ap/070208/wall_street.html?.v=23

NEW YORK (AP) -- Wall Street pulled back Thursday as investors were largely unimpressed by retail sales reports and by strong profit reports from Walt Disney Co. and Electronic Data Systems Corp. Weakness in housing stocks also weighed on the markets.

Investors appeared to be looking for a major catalyst to send stocks higher after days of largely meandering trading, but they didn't find it in generally decent retail sales reports. Wal-Mart Stores Inc., the world's largest retailer, topped Wall Street's forecast though the month's increase was modest.

"A lot of consumers didn't do what people had hoped for in January," said Ryan Detrick, an analyst at Schaeffer's Investment Research in Cincinnati. "No one really missed a lot. There wasn't anyone that was really blowing up, but overall the market took it negatively," he said of the retailers.

"At the same time, the market has been going up and we're due for a sell."

A weak forecast from Toll Brothers Inc., the nation's largest builder of luxury homes, pressured housing stocks and rekindled concerns about whether the housing market would hurt the economy.

snip>

The market seemed little moved by the Commerce Department's report that wholesale inventories fell 0.5 percent to a seasonally adjusted $393.76 billion. Analysts expected an increase of 0.5 percent.

Similarly, investors appeared unfazed by a slight uptick in the number of newly laid off workers seeking unemployment; the report indicated the job market remains solid. The Labor Department said 311,000 newly laid off workers sought benefits last week, an increase of 3,000 from the prior week.

more...

[54anickel]

37. Developing nations poised to challenge USA as king of the hill

http://www.usatoday.com/money/world/2007-02-07-emerging-markets-usat_x.htm

Globalization long has been regarded as a made-in-America phenomenon, driven by Silicon Valley's technology, Hollywood's movies and Wall Street's cash. But suddenly, countries formerly on the periphery of world events seem poised to challenge American dominance of this age of global integration.
It's not only that developing countries are proving to be white-hot investment opportunities, though they are: the Morgan Stanley Emerging Markets index gained 242% the past four years. It's also that emerging markets, once known dismissively as the Third World, are now central to Americans' lives.

Not long ago, these countries were of interest only to the Peace Corps. Now, everything from the financial lifeline that makes possible the modern American lifestyle to the identity of your next boss, customer, competitor or cultural trendsetter likely can be found in the developing world.

"We're in the middle of the biggest shift in 200 years — since the Industrial Revolution. It's really that big," said Antoine van Agtmael, the investment manager credited with coining the term "emerging markets" in 1981.

snip>

Developing nations have gone from beggar to banker. The U.S. must borrow enormous sums each day to finance the gap between its anemic national savings rate and its consumption. Increasingly, those funds — largely raised by selling Treasury securities — come from poorer nations.

Through November, the most recent data available, more than 29% of the $806 billion in net securities purchases came from developing countries compared with just 5% in 1998, according to Bank of America. The river of capital flowing into the U.S. economy enables Americans to continue consuming beyond their means. But some analysts find it worrisome that the world's wealthiest nation now depends on loans from some of the globe's poorest countries.

more...

[54anickel]

38. Kodak to Cut Up to 5,000 More Jobs in Restructuring (Update3)

http://www.bloomberg.com/apps/news?pid=20601103&sid=a2FK.FVAKknY&refer=us

Feb. 8 (Bloomberg) -- Eastman Kodak Co., the world's biggest photography company, said it will eliminate as many as 5,000 more jobs than originally planned as it accelerates its withdrawal from the consumer film business.

Kodak expects job cuts to total 28,000 to 30,000, almost halving its workforce, compared with an earlier forecast of 25,000 to 27,000. That will boost restructuring costs to as much as $3.8 billion, the Rochester, New York-based company said today in a statement.

Chief Executive Officer Antonio Perez is paring jobs and relying more on digital products for growth amid slumping demand for film. The additional cuts are being driven by Kodak's divestiture of its health-imaging group, the company said. Perez is in the final year of a restructuring push that began in 2004 and has so far sliced 23,400 jobs at a cost of $2.7 billion.

``The metamorphosis they're going through is going to take longer,'' said Rusty Robinson, president of Robinson Investment Group in Brentwood, Tennessee, which has been selling Kodak shares and currently owns more than 27,000. ``I feel better, I don't feel great. It's just like when you have a terminal illness and you've been told you've got longer to live.''

more...

[54anickel]

39. What Keeps Bankers Awake at Night?

http://www.cfo.com/article.cfm/8651541/c_8668196?f=home_todayinfinance&x=1

When the great, the good and the media assembled in Davos for the World Economic Forum in January, one topic dominated the financial agenda — risk. That ought to be a good sign. For it is when those in charge are feeling complacent that disaster is most likely to happen. Investors also seem nervous. A survey of fund managers by Merrill Lynch, an investment bank, found 82% expected volatility to rise this year.

However, as the Bible says, "by their fruits ye shall know them". Banks are still financing leveraged buy-outs, junk bonds are offering their lowest spreads since March 2005, and the cost of insuring against a share-price fall, as measured by the Chicago Board Options Exchange Volatility Index (Vix), is low (see chart at the bottom of the page). Financiers may be worrying about risk, but they do not seem to be doing much about it.

That apparent dichotomy reflects a broader debate. Some argue that the "great moderation" in economic numbers such as inflation and GDP growth has reduced risk for investors. Furthermore, the greater sophistication of financial markets has improved the pricing and the distribution of risk. Recent tests of the system, such as the collapse of Amaranth Advisors, a hedge fund, last year, have proved its resilience.

Sceptics retort that the calm of markets is an illusion caused by benign economic conditions and excess liquidity. The greater dispersion of risk means nobody knows where it is. And as Warren Buffett, the billionaire investor, has remarked, "It's only when the tide goes out that you learn who's been swimming naked."

snip>

Nowadays, the banks have parcelled out the risk to hedge funds, pension funds and insurers. But has risk gone out the front door, only to come in the back, because of the banks' trading and financial relations with those same counterparties?

Information is also constrained by the off-market nature of many of these transactions. Many derivatives are traded "over the counter" rather than on a public exchange; companies are deserting stock exchanges for the arms of private-equity groups; new issues of bonds and equities are increasingly made via private placements rather than public offerings. This makes it hard for regulators to discern how markets would react in a crisis, especially since there has not been a severe global recession since the early 1990s.

more...

[54anickel]

40. The Great Dollar Crash of ‘07

http://www.ichblog.eu/content/view/405/2/

By Mike Whitney

The massive equity bubbles which arose from artificially low interest rates and the deliberate destruction of the dollar by reckless increases in the money supply have shifted trillions of dollars from working class Americans to the predatory aristocrats at the top of the economic food chain. The gulf between rich and poor has grown so wide that it now poses a direct threat to our increasingly fragile democracy.

“Whatever future developments may prove to be, my best guess is that the US will continue to maintain a façade of Constitutional government and drift along until financial bankruptcy overtakes it.” Chalmers Johnson, “Empire V. Democracy: Why Nemesis is at our Door”

snip>

Additionally, credit card debt has skyrocketed, which is an indication that homeowners are no longer able to siphon easy-money from their home-equity. The nose-diving real estate market has slowed refinancing to a dribble; cutting off the additional $825 billion of cash which was extracted from home-equity just last year.

Clearly, the well is running dry; the housing bubble is hang-gliding into the abyss and there’s nothing Fed-master Bernanke can do to save it from its inevitable crash-landing.

The central banks around the world are now watching for any sign that the American consumer is about to give up the ghost. As soon as that happens, bank managers everywhere will swing into action, ditch their U.S.Dollars and head for the exits. When the “global engine” sputters to a halt; it’ll be curtains for the greenback.

The Oil-extortion Racket

The dollar’s link to oil has helped to keep it afloat but, in truth, it’s just another dismal rip-off. More than 70% of the world’s oil is denominated in USD; a virtual monopoly for the USA. Until last year, even Russia was using dollars in its oil transactions with Germany. Imagine a comparable deal, like the US purchasing oil from Canada in rubles?!?

It’s lunacy; and yet this is the system the US hopes to preserve so it can maintain its unique status as the world’s “reserve currency” and keep expanding its debt into perpetuity. It explains why the Federal Reserve has been able to increase the money supply by a whopping 15% for the last 6 years! Trillions of dollars are now circulating in the oil trade keeping the value of the dollar high by creating artificial demand.

more...

[54anickel]

41. Ex-Malaysian Premier Accuses Bush, Blair Of War Crimes

http://www.allheadlinenews.com/articles/7006386239

Kuala Lumpur, Malaysia (AHN)- Former Malaysian prime minister Mahathir Mohammad on Monday charged that U.S. President George W. Bush and British Prime Ministers Tony Blair, were worst than condemned Iraqi leader Saddam Hussein and said the two leaders have more Iraqi blood on their hands.

Mahathir made the scathing remarks as he launched an anti-war conference on Monday in the Malaysian capital of Kuala Lumpur. He said both Mr. Bush and Mr. Blair should be put on trial for the killings in Iraq.

The conference was attended by 17 representatives from Palestine, Lebanon and Iraq who claims they were victims of violence and conflicts in the region.

Mahathir, who was nominated by Bosnian civil society groups for the 2007 Noble Peace Prize for assisting the country after its bloody civil war said, "History should remember Blair and Bush as the killer of children or the lying prime minister and president. What Bush and Blair had done is worse than what (executed former Iraqi president) Saddam (Hussein) had done."

Wasn't Rush supposedly nominated as well? :shrug:

more...

related "stuff" linked at 321.gold:
The Criminalization of US Foreign Policy
From the Truman Doctrine to the Neo-Conservatives
by Michel Chossudovsky
http://www.globalresearch.ca/index.php?context=viewArticle&code=CHO20070201&articleId=4659

snip>

4. The "War on Terrorism": Pretext to Wage War

In 2005, Vice President Dick Cheney is reported to have instructed USSTRATCOM to draw up a contingency plan "to be employed in response to another 9/11-type terrorist attack on the United States". Mass casualty producing events, involving the death of civilians are being used to galvanize public opinion in support of a military agenda. The deaths of civilian are used to justify preemptive actions to defend the American homeland against an alleged outside enemy, who are identified as "Islamic terrorists".


--------------------------------------------------------------------------------

Mass Casualty Producing Events

"A terrorist, massive, casualty-producing event somewhere in the Western world – it may be in the United States of America – that causes our population to question our own Constitution and to begin to militarize our country in order to avoid a repeat of another mass, casualty-producing event." General Tommy Franks,

"We are on the verge of global transformation. All we need is the right major crisis and the nations will accept the New World Order." (David Rockefeller)

"As America becomes an increasingly multicultural society, it may find it more difficult to fashion a consensus on foreign policy issues, except in the circumstances of a truly massive and widely perceived direct external threat." (Zbigniew Brzezinski in the Grand Chessboard)


--------------------------------------------------------------------------------

The presumption was that if such a 9/11 type event involving the deaths of civilians (mass casualty producing event) were to take place, Iran would, according to Cheney, be behind it, thereby providing a pretext for punitive bombings, much in the same way as the US sponsored attacks on Afghanistan in October 2001, allegedly in retribution for the alleged support of the Taliban government to the 9/11 terrorists

More recently, several analysts have focussed on the creation of a "Gulf of Tonkin incident", which would be used by the Bush administration as a pretext to wage war on Iran

5. The Real Objective Of This War Is Oil

more....


This links to a more detailed story on the Perdana Global Peace Organisation conference

http://www.globalresearch.ca/index.php?context=viewArticle&code=20070206&articleId=4704

[54anickel]

44. I.M.F. Past & Future Gold Sales – The Effects Part 1 + Gold in the € & the Yen

http://www.kitco.com/ind/AuthenticMoney/feb072007.html

Proposals have been put forward to sell 400 tonnes of gold from the I.M.F. holdings. The extra money is needed to help plug an estimated shortfall of $400m a year in the I.M.F.' current income and expenses by 2010.

The IMF has 3,217 metric tons of gold and the sale of 400 tonnes could raise $8.4 billion at current market prices.

This is one of several proposals put forward by a committee of carefully selected eminent persons who have now issued a report, attempting to provide solutions to the I.M.F. as to how to solve the cash flow problems that have led this august monetary body to recommend a new ‘income model’ including nominal gold sales by the International Monetary Fund. The Committee comprised the following eminent persons; Andrew Crockett, former director general of the Bank for International Settlements and currently president of J.P. Morgan Chase International; Mohamed A. El-Erian, president and CEO of Harvard Management Co.; Alan Greenspan; Tito Mboweni, governor of the South African Reserve Bank; Guillermo Ortiz, governor of the Bank of Mexico; Hamad Al-Sayari, governor of the Saudi Arabian Monetary Agency; Jean-Claude Trichet, president of the European Central Bank; and Zhou Xiaochuan, governor of the People's Bank of China.

Commentary

In our opinion none of these figures, whilst highly respectable, have the power to influence the diverse national Central Banks who actually own the I.M.F. gold. The Executive Officials of the I.M.F. cannot act independently of the Member states comprising the I.M.F.

snip>

However, Managing Director Rodrigo de Rato, the head of the I.M.F, submitted the report to the I.M.F. executive board. In essence then, we see this as simply a recommendation by consultants to a body whose members have the task of approving it, not the Officials of the I.M.F. ...

more...

[54anickel]

45. 2:18 update and I'm outta here

:hi: Have a great evening!

Dow 12,612.23 54.64 (0.43%)
Nasdaq 2,485.87 4.63 (0.19%)
S&P 500 1,446.00 4.02 (0.28%)
10-yr Bond 4.7300% 0.0350
30-yr Bond 4.8410% 0.0290
NYSE Volume 1,865,593,000
Nasdaq Volume 1,396,108,000

2:00 pm : Range-bound trading persists in stocks as investors grapple with oil prices hitting session highs. Crude for March delivery is now up 1.3% near $58.50/bbl. The commodity has made a run at $60/bbl all week and the market has shown surprising resilience for the most part.

However, the inability of the Energy sector (+0.2%) to more aggressively benefit from oil's uptick is noteworthy since it further underscores the market's apprehension to own equities amid growing uncertainty about a slowdown in earnings growth. After providing the largest contributions to aggregate S&P profit growth for several quarters, Energy profits were expected to fall 3% in Q4 heading into the end of the quarter. DJ30 -47.06 NASDAQ -2.59 SP500 -3.02 XOI +0.3% NASDAQ Dec/Adv/Vol 1582/1390/1.30 bln NYSE Dec/Adv/Vol 1798/1352/976 mln

1:30 pm : After briefly inching into positive territory for the first time today, the Nasdaq has almost as quickly ran into resistance near the flat line and slipped back into the red. Since higher interest rates spark valuation concerns among growth stocks, a recent turnaround in the Treasury market following another strong bond auction is taking some of the pressure off companies dependent on borrowing. The 10-year note is now up 3 ticks to yield 4.71% after $9 bln in new 30-year bonds attracted solid demand, especially among foreign central banks, as indirect bidder participation checked in at a healthy 42.1%.DJ30 -47.31 NASDAQ -2.37 SP500 -3.09 NASDAQ Dec/Adv/Vol 1547/1415/1.19 bln NYSE Dec/Adv/Vol 1743/1390/900 mln

1:00 pm : As evidenced by the Nasdaq more than halving its midday losses within the hour, it's not surprising to see most of the overall market's recent improvements coming from Technology. Albeit not posting an impressive gain by any means, the sector's turnaround is lending some reassurance behind a rally yesterday predicated on improving growth prospects for tech following Cisco Systems' (CSCO 28.25 0.16) upbeat outlook. The AMEX Hardware recently turned positive while The PHLX Semiconductor Sector Index, which was down nearly 1.0% at its lows, is now down just 0.2%. DJ30 -50.07 NASDAQ -2.59 SP500 -3.45 NASDAQ Dec/Adv/Vol 1627/1317/1.09 bln NYSE Dec/Adv/Vol 1813/1281/820 mln

12:30 pm : The major averages are kicking off the afternoon session at improved levels. Turnarounds in Technology and Energy are the most noticeable reasons behind the market's attempts to regain some upward momentum. Health Care paring its losses is also noteworthy. However, as is typically the case around this time of the day, as a smaller number of traders make their way through the New York lunch hour, limited participation offers little conviction behind current recovery efforts.DJ30 -56.70 NASDAQ -3.74 SP500 -4.14 NASDAQ Dec/Adv/Vol 1643/1276/960 mln NYSE Dec/Adv/Vol 1929/1153/720 mln

12:00 pm : Stocks are lower across the board midday as mixed retail sales and discouraging developments tied to housing feed concerns about the decelerating pace of earnings growth and question the sustainability of last week's sizable market gains.

With extremely strong earnings growth in the Financials sector so far masking what may still wind up to be an end to 13 straight quarters of double-digit profit growth, the world's third largest bank -- HSBC Holdings (HBC 89.91 -2.31) -- raising provisions for bad debt by 20% is weighing heavily on sentiment and taking a toll on mortgage lenders. That in turn is offering investors an excuse to lock in gains throughout Financials, removing key leadership from the S&P 500's most influential sector.

Investors are also showing some reserve after January same-store sales results failed to provide what many were anticipating to be a very strong post-holiday shopping period. True, the final tally shows that about two-thirds of retailers topped analysts' expectations, and some companies like Federated Departed Stores (FD 43.00 +1.68) and Gap Inc (GPS 19.81 +0.56) offered some encouraging news about Q4 earnings. However, disappointments from large retailers like Costco (COST 56.65 -0.48), which posted its slowest comps growth since November 2002, have given investors an opportunity to consolidate gains that lifted the Retail Index to an all-time high yesterday ahead of today's reports.

Also weighing on Consumer Discretionary is weakness in Homebuilding. Toll Brothers (TOL 33.13 -1.30) is plunging nearly 4% after following up a 33% drop in Q1 orders by saying full-year write-downs will "significantly exceed" forecasts.

The Industrials sector is another sore spot for the bulls today. Northrop Grumman (NOC 73.75 +0.12) saying it will bid on a $40 bln Air Force contract no longer leaves rival Boeing (BA 89.27 -1.08) as the only bidder. Waste Management (WMI 36.26 -2.15), however, is the sector's worst performer (-5.6%) after posting a 15% drop in Q4 earnings. BTK +0.7% DJ30 -68.66 DJTA -0.5% DJUA +0.2% DOT +0.2% NASDAQ -7.02 NQ100 -0.3% R2K -0.3% SOX -0.6% SP400 -0.2% SP500 -5.59 XOI -0.2% NASDAQ Dec/Adv/Vol 1658/1216/850 mln NYSE Dec/Adv/Vol 1966/1087/640 mln

[citizen snips]

46. Stocks Tumble in Midafternoon Trading

NEW YORK (AP) -- Wall Street pulled back Thursday as investors were largely unimpressed by retail sales figures and by strong profit reports from Walt Disney Co. and Electronic Data Systems Corp. Weakness in housing stocks also weighed on the markets.

Investors appeared to be looking for a major catalyst to send stocks higher after days of largely meandering trading, but they didn't find it in generally decent retail sales reports. Wal-Mart Stores Inc., the world's largest retailer, topped Wall Street's forecast though the month's increase was modest.

"A lot of consumers didn't do what people had hoped for in January," said Ryan Detrick, an analyst at Schaeffer's Investment Research in Cincinnati. "No one really missed a lot. There wasn't anyone that was really blowing up, but overall the market took it negatively," he said of the retailers.

"At the same time, the market has been going up and we're due for a sell."

more...
http://biz.yahoo.com/ap/070208/wall_street.html?.v=32

[citizen snips]

47. PepsiCo 4Q Earnings Up 61 Pct. to $1.78B

NEW YORK (AP) -- PepsiCo Inc., the snack and beverage maker, said Thursday that its fourth-quarter profit climbed 61 percent led by strong performances from its international and Frito-Lay divisions.

But its shares fell nearly 2 percent ny early afternoon. Analysts were concerned about higher costs for raw materials such as orange juice, corn, cooking oil and sugar and over recent declines for its Gatorade and Tropicana products.

Profit for the three months ended Dec. 30 grew to $1.78 billion, or $1.06 per share, from $1.1 billion, or 65 cents per share, during the same period last year.

Revenue edged up 2.8 percent to $10.38 billion from $10.1 billion a year ago.

more...
http://biz.yahoo.com/ap/070208/earns_pepsico.html?.v=12

[citizen snips]

48. Circuit City to Close 69 Stores

RICHMOND, Va. (AP) -- Circuit City Stores Inc., the nation's No. 2 consumer electronics retailer, said Thursday it plans to close seven domestic Superstores, a Kentucky distribution center and 62 company-owned stores in Canada to cut costs and improve its financial performance.

The closings will take place over the next six months at an expected total cost of $85 million to $105 million, all to be incurred in the current fourth fiscal quarter, which ends Feb. 28, Circuit City said.

"Because of the intensified gross margin pressures that we saw in the third quarter within the flat panel television category, we launched efforts to accelerate the timing of planned initiatives to improve sales and gross margin, as well as improve the efficiency of our expense structure," chief executive Philip J. Schoonover said in a statement.

Shares of Circuit City rose $1.10, or 5.3 percent, to $21.70 in morning trading on the New York Stock Exchange.

more...
http://biz.yahoo.com/ap/070208/circuit_city_realignment.html?.v=11

[citizen snips]

49. Sector Snap: Discount Retailers

NEW YORK (AP) -- Shares of U.S. discount retailers were mixed in afternoon trading Thursday, following the release of same-store sales reports.

Same-store sales, or sales in stores open at least a year, are considered a key measure of a retailer's health.

Family Dollar Stores Inc. declined $1.09, or 3.3 percent, to $32.16 on the New York Stock Exchange cents after missing Wall Street's same-store sales growth expectations. The company said the metric rose 1.7 percent in January, while analysts were looking for a 2.1 percent rise.

Fred's Inc. rose 14 cents to $14.46 on the Nasdaq, though earlier in the day it beat Wall Street's January same-store sales forecast with a 2.4 percent rise.

more...
http://biz.yahoo.com/ap/070208/discount_retailers_sector_snap.html?.v=1

[citizen snips]

50. Eddie Bauer Shareholders Reject Bid

REDMOND, Wash. (AP) -- Shareholders of the financially troubled clothing retailer Eddie Bauer rejected a $286 million buyout offer from a pair of investment firms Thursday. Its shares tumbled nearly 7 percent.

"The company will continue to operate as a standalone, publicly traded company," said Wendi Kopsick, a spokeswoman for Eddie Bauer Holdings Inc. The vote tally was not immediately released.

Eddie Bauer's board said it was considering its next steps.

A holding company owned by affiliates of Sun Capital Partners Inc. of Boca Raton, Fla., and San Francisco-based Golden Gate Capital planned to pay $286 million in cash, or $9.25 per share, and assume $328 million in debt to take over Redmond-based Eddie Bauer.

more...
http://biz.yahoo.com/ap/070208/eddie_bauer_acquisition.html?.v=1

[citizen snips]

51. Chips Snap: Silicon Labs Falling

NEW YORK (AP) -- Declining Silicon Laboratories Inc. shares Thursday helped pull down the Philadelphia Semiconductor Sector Index fell less than half a percent.

Silicon Laboratories Inc., a maker of integrated circuits used in cell phones, satellite radios and car sensors, got slammed after the company agreed to sell its mobile phone equipment business to NXP Semiconductors BV for roughly $285 million.

The stock dropped despite positive comments made by Merrill Lynch analyst Srini Pajjuri, who upgraded Silicon Labs to "Buy" and set a $40 price target on the stock.

"Wireless has been a drag on Silicon Laboratories' growth and profitability, and we believe exiting wireless removes the biggest overhang on the stock," Pajjuri wrote in a note to investors.

more...
http://biz.yahoo.com/ap/070208/sector_snap_semiconductors.html?.v=1

[citizen snips]

52. Sector Snap: Homebuilders

NEW YORK (AP) -- Shares of homebuilders tumbled Thursday on new indications that the housing slump will persist throughout 2007.

Luxury builder Toll Brothers Inc.'s stock dropped 4 percent after it warned that first-quarter homebuilding revenue would fall sharply and it will have to write down the value of land it does not anticipate developing by as much as $160 million, way more than it previously estimated.

Goldman Sachs cut its earnings target on three other builders and said low backlogs and high order cancellation rates throughout the industry make it unlikely that overall orders will increase in 2007.

"Some builders...appear to be counting on a resumption of order growth in 2007 -- something we find unlikely at this time," Goldman Sachs analyst Chris Hussey said in a note to investors Thursday.

more...
http://biz.yahoo.com/ap/070208/housing_snap.html?.v=1

[citizen snips]

53. U.S. Stocks Fall, Led by Banks, Homebuilders on Toll's Orders

Feb. 8 (Bloomberg) -- U.S. banks and homebuilders pulled the Standard & Poor's 500 Index down from its highest since 2000 on signs of more fallout from last year's housing slump.

Citigroup Inc., the largest bank, and Countrywide Financial Corp., the biggest U.S. mortgage lender, slumped, causing financial shares to tumble from a record. Homebuilders fell for a fourth day on a plunge in orders at Toll Brothers Inc.

The declines signal concern the housing market isn't mending as quickly as investors had expected and may be a drag on bank profits. New Century Financial Corp., the second-largest home lender to the riskiest borrowers, fell the most since 1998 after saying it will probably post a loss for last quarter.

``Any weakness for our financial institutions could create a high degree of concern and risk,'' said James Thorne, who oversees $13 billion as chief capital market strategist at MTB Investment Advisors in Baltimore. ``There's a level of complacency in the market that we have to get out.''

more...
http://www.bloomberg.com/apps/news?pid=20601084&sid=aO7yP9Owa3lE&refer=stocks

[citizen snips]

54. Treasury 30-Year Bonds Advance After Strong Demand in Auction

Feb. 8 (Bloomberg) -- U.S. Treasury 30-year bonds rose after strong demand in an auction of the securities, the last of the government's three quarterly debt sales this week.

The $9 billion of bonds were sold at a yield of 4.812 percent, lower than in pre-auction trading, a sign demand exceeded dealer expectations. A gauge of demand rose to the highest since 2000, and investors bought a larger share than at the previous auction, leaving dealers with less to sell.

``We've taken down the entire refunding 15 basis points lower in yields than a week and a half ago,'' said Richard Volpe, head of U.S. government bond trading in New York at Bear Stearns & Co., referring to the three quarterly debt sales. Bear Stearns is one of the 21 primary U.S. government securities dealers required to participate in Treasury auctions.

The new bonds' yield, moving inversely to its price, declined about 2 basis points, or 0.02 percentage point, to 4.79 percent at 2:15 p.m. in New York. The yield on 30-year bonds sold last year declined almost 2 basis points to 4.84 percent, the lowest since Jan. 17. The price of the 4 1/2 percent security maturing in February 2036 rose 1/4, or $2.50 per $1,000 face amount, to 94 25/32.

more...
http://www.bloomberg.com/apps/news?pid=20601009&sid=a0F6LMPZRLl8&refer=bond

[citizen snips]

55. Gold Rises as Slide in Yen, Dollar Boost Appeal as Alternative

Feb. 8 (Bloomberg) -- Gold rose in New York as a drop in the value of the dollar and yen against the euro helped to boost the appeal of the precious metal as an alternative investment.

Gold generally moves in the same direction as the euro, which rose against the dollar and approached a record versus the yen after European Central Bank President Jean-Claude Trichet signaled policy makers may boost interest rates next month. Gold gained 23 percent last year, while the euro climbed 10 percent against the dollar.

``The euro is a big part of gold's support today,'' said Matthew Zeman, a metals trader at LaSalle Futures Group in Chicago.

Gold futures for April delivery rose $5.50, or 0.8 percent, to $662.80 an ounce on the Comex division of the New York Mercantile Exchange. Prices are up 3.9 percent this year.

more...
http://www.bloomberg.com/apps/news?pid=20601012&sid=aVfhCjfRPFW8&refer=commodities

[citizen snips]

56. Corn, Soybean Prices Climb as Export Sales of U.S. Grains Rise

Feb. 8 (Bloomberg) -- Corn futures rose for the first time this week and soybeans gained on signs of improving overseas demand for U.S. supplies, even after recent price rallies.

Corn exporters sold 917,300 metric tons for the week ended Feb. 1, up 15 percent from the prior week, the government said. Soybean sales rose 19 percent to 803,200 tons. In both cases, the sales were more than expected by Citigroup Global Markets.

``Export sales will be supportive for the markets,'' said Greg Grow, director of agribusiness for Archer Financial Services in Chicago. ``

Corn futures for March delivery rose 5.75 cents, or 1.5 percent, to $3.98 a bushel at 10:51 a.m. on the Chicago Board of Trade. March futures closed at a three-week low yesterday on speculation exports would slow. Prices have surged 80 percent in the past year, reaching a 10-year high on Jan. 17.

more...
http://www.bloomberg.com/apps/news?pid=20601012&sid=a.H1uqVALRUM&refer=commodities

[citizen snips]

57. Euro Approaches Record Against Yen; Trichet Signals Rate Boost

Feb. 8 (Bloomberg) -- The euro approached a record high versus the yen and reached its strongest against the pound in almost a month after European Central Bank President Jean-Claude Trichet suggested policy makers were poised to raise interest rates next month.

Trichet said the bank needs to maintain ``strong vigilance'' against inflation after rate-setters left borrowing costs unchanged. The euro has risen 1.8 percent against the pound since touching a four-year low in January as the fastest growth in the region in six years fuels price increases and demands for higher wages. The Bank of England held borrowing costs unchanged.

``The interest-rate outlook favors the euro,'' said Michael Woolfolk, senior currency strategist at the Bank of New York in New York. ``Trichet seems to send the signal that price pressure remains and they need to continue to be vigilant.''

The euro rose to 157.80 yen at 2:15 p.m. in New York, from 157.03 yesterday, and touched 158.03 while approaching its record high of 158.62 on Jan. 24. It also increased to 66.58 pence from 66.03, and earlier touched 66.62, the strongest since Jan. 11.

more...
http://www.bloomberg.com/apps/news?pid=20601083&sid=aklk48fckrow&refer=currency

[citizen snips]

58. U.K. Pound Drops as Bank of England Keeps Interest Rate on Hold

Feb. 8 (Bloomberg) -- The pound fell to its lowest in nearly four weeks versus the euro after the Bank of England kept interest rates on hold, disappointing some investors who'd speculated on a second surprise increase in as many months.

The nine-member Monetary Policy Committee, led by Governor Mervyn King, kept the rate at 5.25 percent. All but eight of 50 economists surveyed by Bloomberg News had predicted the decision. Volatility on options for the pound rose to a two-year high versus the yen earlier as some investors speculated the BOE would lift rates.

``There was some speculation in the market that the BOE could spring another surprise hike,'' said Ian Stannard, a foreign exchange strategist at BNP Paribas SA in London. ``We've seen sterling come under pressure after the decision.''

Against the euro, the pound traded at 66.56 pence per euro at 4:18 p.m. in London, from 66.03 yesterday. The U.K. currency also traded at $1.9581 from $1.9707 late yesterday.

more...
http://www.bloomberg.com/apps/news?pid=20601083&sid=azGJ7Xsp5DVY&refer=currency

[citizen snips]

59. Exxon Mobil to Face Lawsuit by New York in Spill

Feb. 8 (Bloomberg) -- New York Attorney General Andrew Cuomo will sue Exxon Mobil Corp., the world's largest oil company, and four other firms over a New York City oil spill first discovered in 1978.

Cuomo said in a statement today he will sue Exxon Mobil, BP Plc, Chevron Corp., Keyspan Corp. and Phelps Dodge Corp. for delaying cleanup of Newtown Creek, a 3.5-mile-long waterway that separates the boroughs of Brooklyn and Queens. The creek has been contaminated by several oil spills and illegal discharges, including a 17 million-gallon spill detected in 1978.

The suit would join three others related to the spill that seek clean up of the creek and at least $58 billion in damages. The oil spill is in an area that housed refineries and storage tanks once owned by Standard Oil, an Exxon Mobil predecessor. The spill now extends to 55 acres, according to the state. The 1989 Exxon Valdez spill in Alaska was 11 million gallons.

``This is one of the worst environmental disasters in the nation, larger than the Exxon Valdez and slower in the cleanup,'' Cuomo said in the statement. ``Exxon Mobil has proven itself far less than a model corporate citizen, placing its greed for windfall profits over public safety and the well-being of the environment.''

more...
http://www.bloomberg.com/apps/news?pid=20601072&sid=a3_EVqoYr0Pk&refer=energy

[citizen snips]

60. Oil Prices Hover Below $60 a Barrel

NEW YORK (AP) -- Oil prices surged by $2 a barrel late in the day Thursday, as energy traders rushed back into the market amid frigid temperatures in the U.S. and political tension overseas.

Earlier in the session, the market had been trading hesitantly, coming off a sharp drop a day earlier and struggling to find direction. Oil prices have been rising over the past two weeks on arctic weather in the United States. They have so far been unable to surpass the $60 mark.

Light, sweet crude for March delivery rose $1.95 to $59.66 a barrel in late trading on the New York Mercantile Exchange, after peaking at $59.87.

Factors such as renewed warnings out of Iran, violence in Nigeria, and frigid temperatures in the United States kept prices afloat Thursday -- leading traders to believe that $60 a barrel may not be as insurmountable as they thought.

more...
http://biz.yahoo.com/ap/070208/oil_prices.html?.v=11

[citizen snips]

61. Thursday's biggest stock gainers and decliners

Abercrombie & Fitch (NYSE:ANF - News) said its January sales at stores open at least one year fell 6%. Analysts, on average, had expected it to post a same-store-sales drop of 1.9%, according to Thomson Financial. Net sales for the five weeks ended Feb. 3 rose 37% to $252.3 million. The New Albany, Ohio, clothing retailer said sales in its fiscal 2006 rose 19% to $3.32 billion from $2.79 billion.

Accuray (NasdaqGM:ARAY - News) shares rocketed up in company's initial public offering.

Alcon Inc. (NYSE:ACL - News) reported fourth-quarter net earnings of $354.7 million, or $1.16 a share, compared with $60.7 million, or 19 cents a share, during the same quarter a year ago. Results from the year-ago period included $207.7 million in after-tax charges, or 66 cents a share.

Akamai Technologies Inc. (NasdaqGS:AKAM - News) said fourth-quarter net income fell, as costs and expenses rose, to $20.6 million or 12 cents a share, from $25.8 million, or 16 cents a share, during the same period in the prior year. Before items, quarterly per-share income rose to 27 cents from 16 cents in the prior year.

more...
http://biz.yahoo.com/cbsm/070208/5a038861f7e74e17a12f85284343e851.html?.v=4

[citizen snips]

62. Tech sector lower but EMC, EDS on the rise

SAN FRANCISCO (MarketWatch) -- Technology stocks traded lower Thursday, while shares of EMC Corp. surged on news it will spin off a software unit and Electronic Data Systems Corp. rose after it said profit nearly doubled.

In afternoon trading, the technology-heavy Nasdaq Composite Index was off fractionally at 2,489.7, while the Philadelphia Semiconductor Index (Philadelphia:^SOXX - News) fell 0.5% to 469.8

Shares of EMC (NYSE:EMC - News) rose more than 7% after the maker of data storage and management systems said it will sell a 10% stake in its VMware unit.

EDS (NYSE:EDS - News) rose more than 2%. The tech-services specialist said its fourth-quarter profit nearly doubled, to $217 million from $112 million, while sales rose 11%.

On the losers side of the market, Silicon Laboratories Inc. (NasdaqGS:SLAB - News) shares dropped 6% after the company said it will sell its Aero single-chip phone and power amplifier product lines to NXP for $285 million.

more...
http://biz.yahoo.com/cbsm/070208/a34438be6e9843759d2667e5f74df61b.html?.v=2

[ozymandius]

65. Time to call it a day.

Dow 12,637.63 Down 29.24 (0.23%)
Nasdaq 2,488.67 Down 1.83 (0.07%)
S&P 500 1,448.31 Down 1.71 (0.12%)
10-Yr Bond 4.73% Down 0.035
NYSE Volume 2,797,368,000
Nasdaq Volume 2,036,530,000

4:20 pm : Stocks closed slightly lower Thursday as uncertainty about decelerating profit growth resurfaced to keep the market in a period of consolidation following last week's sizable market gains.

Even though the bulk of earnings season is now in the rearview mirror, the market's foreword thinking mentality couldn't help but weigh the ramifications of renewed concerns within the mortgage lending business, especially the potential impact on earnings for the S&P 500's most influential sector.

As a reminder, Q4 earnings may be up about 11%, but broader weakness is being masked by extremely strong profit growth from Financials. In fact, without its estimated 8% contribution in aggregate earnings growth, Q4 profit growth for the S&P 500 stands at an unimpressive 3%.

Last night, HSBC Holdings (HBC 89.78 -2.44), the world's third largest bank, warned that provisions for bad debt will be some 20% higher than previously thought. That news weighed heavily on mortgage lenders and, in turn, provided a reason to lock in gains throughout Financials, removing key leadership for the broader market.

Exacerbated worries about the sub-prime lending market aside, economic data have suggested that weakness in housing has yet to spill over into the general economy. Be that as it may, the fact that even luxury home builders are now running into trouble took an added toll on sentiment. Toll Brothers (TOL 33.39 -1.04) plunged 3% after following up a 33% drop in Q1 orders by saying full-year write-downs will "significantly exceed" forecasts. That news made matters even worse for last year's second worst performing S&P industry group. Homebuilders plunged 21% in 2006 while today's 2.7% decline provided an extra reason to consolidate gains from this year's second-best performing sector -- Consumer Discretionary.

Discretionary was also in focus today as a plethora of retailers announced same-stores sales results for January. The final tally showed that about two-thirds of retailers topped analysts' expectations, and some companies like Federated Departed Stores (FD 42.86 +1.54) and Gap Inc (GPS 19.75 +0.50) offered some encouraging news about Q4 earnings. However, disappointments from large retailers like Costco (COST 56.62 -0.51), which posted its slowest comps growth since November 2002, and Family Dollar (FDO 32.11 -1.14) left investors less than impressed about what was expected to be a strong month for almost every retailer.

Of the six sectors trading lower, though, Industrials turned in the day's worst performance. General Electric (GE 35.74 -0.36) fell nearly 1.0% amid reports that News Corp. (NWS 25.28 +0.58), a suggested holding in Briefing.com Active Portfolio, plans to launch a long-awaited business news channel in the fall that will compete directly with GE's CNBC.

Aerospace & Defense was also in focus after Northrop Grumman (NOC 74.39 +0.76) saying it will bid on a $40 bln Air Force contract no longer left rival Boeing (BA 89.52 -0.83) as the only bidder. Waste Management (WMI 35.35 -3.06), though, was the sector's worst performer (-8.0%) after posting a 15% drop in Q4 earnings.

While the market overall continues to show surprising resilience in the face of higher energy prices, economically-sensitive areas like transportation were not as fortunate, which also weighed on Industrials.

Crude for March delivery surged late in the day following reports of a fire at California's biggest gas field. The commodity closed up 3.6% near $59.70/bbl -- its highest level of the year, providing a lift to the Energy sector but not enough to act as an offset from a leadership standpoint. BTK +0.7% DJ30 -29.24 DJTA -0.6% DJUA +0.6% NASDAQ -1.83 SOX -0.5% SP500 -1.71 XOI +1.1% NASDAQ Dec/Adv/Vol 1544/1485/2.02 bln NYSE Dec/Adv/Vol 1738/1518/1.55 bln

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66. Sector Snap: Teen Apparel

NEW YORK (AP) -- Teen apparel retailers same-store sales were weak in January, with two main exceptions: American Eagle Outfitters Inc. and Aeropostale Inc.

Same-store sales, or sales in stores open at least one year, are a key gauge of retail industry performance.

After the market closed on Wednesday, American Eagle said same-store sales soared 17 percent, ahead of analyst expectations of a 10.9 percent rise, according to a Thomson Financial poll.

The company said results were helped by holiday clearance and positive reaction to new spring clothes.

more...
http://biz.yahoo.com/ap/070208/sector_snap_teen_apparel.html?.v=2

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67. S&P Leaders & Laggards: WMI EMC

NEW YORK (AP) -- Waste Management Inc. was the biggest decliner on the S&P 500 Thursday after the nation's largest garbage hauler said fourth-quarter profit dropped 15 percent.

The S&P 500 index lost 1.71 to end at 1,448.31.

Shares of Waste Management fell $2.98, or 7.8 percent, to end at $35.43 on the New York Stock Exchange. Profit fell from a year-ago period which benefitted from heavy hurricane cleanup business and one extra work day.

Waste Management rival Allied Waste Industries Inc. also gave up 53 cents, or 4.1 percent, to finish at $12.48 on the NYSE.

more...
http://biz.yahoo.com/ap/070208/apfn_close_s_p_leaders.html?.v=1

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68. DJIA Leaders & Laggards: GE, Alcoa

NEW YORK (AP) -- General Electric Co. suffered the biggest loss Thursday on the Dow Jones Industrial Average.

The index dropped 29.24 to close at 12,637.63.

GE stock dipped 36 cents to end at $35.74 on the NYSE. On Thursday, Rupert Murdoch said News Corp. will roll out a business news channel later this year that will be more "business-friendly" than rival CNBC, which is a unit of General Electric Co.'s NBC Universal.

Tobacco and food company Altria Group Inc. gave up 76 cents to end at $85.22 on the New York Stock Exchange as cigarette industry rival Reynolds American Inc. reported a sharply lower fourth-quarter profit.

Citigroup Inc. also declined 51 cents to end at $54.44 on the Big Board. The banking sector suffered Thursday after HSBC Holdings PLC said it is raising provisions for bad loans by 20 percent

more...
http://biz.yahoo.com/ap/070208/apfn_close_leaders_dow_jones.html?.v=1