STOCK MARKET WATCH, Wednesday October 24

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday October 24, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 454 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2475 DAYS
WHERE'S OSAMA BIN-LADEN? 2195 DAYS
DAYS SINCE ENRON COLLAPSE = 2156
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

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

AT THE CLOSING BELL ON October 23, 2007

Dow... 13,676.23 +109.26 (+0.81%)
Nasdaq... 2,799.26 +45.33 (+1.65%)
S&P 500... 1,519.59 +13.26 (+0.88%)
Gold future... 763.10 +3.10 (+0.41%)
30-Year Bond 4.69% +0.02 (+0.43%)
10-Yr Bond... 4.41% +0.01 (+0.27%)






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

---

Read more: du

[ozymandius]

1. http://www.financialsense.com/

DUE TO SAN DIEGO FIRES, OUR OFFICE & HOMES HAVE BEEN EVACUATED.

[TalkingDog]

17. Good God. Be safe, Sir.

I thought the folks on this discussion thread might find this interesting.

It was sent to me by a friend who has a just about everything in the Asian Markets and does currrency trading.

I'll send him stories I find here, he sends me tidbits too. Last night I got this:




I make no claims for the veracity of the site. But upon perusal, realized he's been "playing along at home" as he likes to call it, for some time.

It may be in more concrete terms than many here have been saying, but it follows the general tone of the discussions.

I hope you and yours are safe and remain so.



My Favorite Master Artist: Karen Parker GhostWoman Studios

[DemReadingDU]

22. Aren't there safeguards to prevent no more than a 10% drop

I thought I read somewhere that the Dow could not lose more than 10% a day, or something like that.

So how could the Dow take a 45% steep dive? Or does this graph indicate over a series of days, each day would drop 10%?

[TalkingDog]

25. You are definitely on the right board, but asking the wrong person

I read this thread so I'll have something to discuss with my friends who are in the market and because the people here know a lot more than I.

I'm sure you are right about the...they call them stops or checks or something. All I know is they kick in if there is a one day drop of so many points. So I'm assuming, according to his chart, that means between the time it starts dropping and the end date of just before Christmas.

A total drop rather than a one day loss.

My Favorite Master Artist: Karen Parker GhostWoman Studios

[Hugin]

27. 'curbs'...

I know what they're called and they were instituted in a big way after the events of '87.

I don't know where to go to check and see when they are in force.

[PATRICK]

34. One observation

is that any confidence system put into place allows more risk and encourages abuse until those walls are beached. it might not happen the same way at any time and perhaps the current system might create a bigger cushion or bigger blowout but the principle is not heartening.

Greed and speculation are not only tolerated but entitled. Institutions put saftey caps on only after the last blowout, not to challenge the actual problem which would turn the market into a tepid, stagnant, unexciting exercise in steady growth or sustainability. When those in charge of the safety caps are beholden to the worst elements of risk and politically need the benefits of unreal growth there is another bad sign. Another one is the passing of the torch to foreign markets and letting one of the majors rot like a leper insofar as it doesn't drag everyone done.

Even without a natural global crisis, the intervention of reality itself- of which several are upon us concurrently- modern capitalism is one human construct subject to the gravity of a self made black hole.

[Hugin]

36. Very acute observation, PATRICK.

Yep, there are many band-aids and very few real solutions which are implemented after the fact.

[DemReadingDU]

62. NYSE Eliminates Trading Curbs

Oct. 26 (Bloomberg) -- The New York Stock Exchange said it will no longer impose curbs on computer-program trading that were put in place after the crash of 1987, claiming they're no longer as effective in damping swings in prices.

The exchange will stop prohibiting brokerages from entering some program trades when the NYSE Composite Index rises or falls more than 2 percent, according to a notice sent to member firms today. The so-called collars had been in effect since 1988 and were triggered 17 times this year, according to a filing with the Securities and Exchange Commission.


more...
http://www.bloomberg.com/apps/news?pid=20601087&sid=ahZh1lKYXD8w&refer=home

I just read this article, it sounds very ominous. If the market begins a steep dive, there is nothing in place to stop it from free-falling?

[Mojorabbit]

32. I love that site

and have a sub to it.

[AnneD]

40. Morning Marketeers....

:donut: and lurkers. Interesting graph. After every 'crash' since the Great Depression, the system has been tinkered with in order to prevent such calamities from ever happening-and yet we continue to have crashes.
I maintain that the fixes that FDR put in at the time of the Great Depression were some of the most stabilizing and are what helped us in 1987. However, since 1987, these safety net for the population have been systematically unraveled-and the blame fall squarely on the GOP. Many of the very wealthy have been trying to undo these reforms since the day they were put into place (the whole starve the government philosophy). I find it frightening (and I don't scare easily) that so many of our indicator are at their lowest since the Great Depression (the individual savings rate, etc). We have many other indicators that are close to their lowest and still dropping.

Frankly-I see us as running on economic fumes at the moment. I envision our economy as a car, making it's way up a mountain with a near empty tank of gas and not a station around for miles. How much higher up the mountain we can go-I can't say. Can we make it to the peak and coast down the mountain to a gas station-I pray we can. But the point is-the indicator lights are on, we need to jettison some weight (the Iraq war, unnecessary spending) to preserve our fuel to the peak (Boomer Retirement). If it is done right, we can coast to the next station to refuel (develop new industries, grow jobs, reform tax code back away from wage based). All along the way there will be perils on the road-China, terrorists, trade relations, environmental concerns, and other set backs. If we are careful, we can continue to be thoughtful-we can all continue this journey. The only other alternative is to slide back down. And I don't think anyone wants to be a sad footnote to history.

Happy hunting and watch out for the bears.

[UpInArms]

20. FACTBOX-Some companies impacted by California fires

http://www.reuters.com/article/bondsNews/idUSN2334308220071024?sp=true

(Reuters) - Raging Southern California wildfires have forced many famed firms to scale back or suspend operations.

Here is a list of some companies impacted by the fires some officials say are especially bad even by the state's long history of forest fires, earthquakes, mudslides and other disasters.

JACK IN THE BOX (JBX.N: Quote, Profile, Research): The San Diego corporate headquarters were closed on Monday and Tuesday, though spokesman Brian Luscomb said there were a couple of dozen employees working at the fast food company's building on Tuesday morning.

QUALCOMM (QCOM.O: Quote, Profile, Research): Few showed up at the San Diego headquarters of the wireless technology and semiconductor developer where the bulk of its 11,200 worldwide employees work.

BROADCOM (BRCM.O: Quote, Profile, Research) - The semiconductor firm closed its San Diego office, but was open in Irvine.

GATEWAY (GATE.DE: Quote, Profile, Research): Employees were encouraged to work from home, although the computer company's Irvine headquarters remained open, said spokesman David Hallisey.

SONY (6758.T: Quote, Profile, Research): Sony Online Entertainment, the firm's online gaming division with a large San Diego operation, has a taped message on its phone line suggesting staff not come to work.

...more...

[Hugin]

23. !

I've been in that situation before and it's not a good place to be. :/

x(

[ozymandius]

2. Today's Reports

10:00 AM Existing Home Sales Sep
Briefing Forecast 5.20M
Market Expects 5.25M
Prior 5.50M

10:30 AM Crude Inventories 10/19
Briefing Forecast NA
Market Expects NA
Prior 1784K

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

[UpInArms]

45. U.S. Sept. existing single-family sales lowest in 10 years

36. U.S. Sept. existing single-family sales lowest in 10 years
10:00 AM ET, Oct 24, 2007 - 3 hours ago

37. U.S. Sept. existing-home median price down 4.2% in past year
10:00 AM ET, Oct 24, 2007 - 3 hours ago

38. U.S. Sept. existing-home inventory rises to 10.5 months
10:00 AM ET, Oct 24, 2007 - 3 hours ago

39. U.S. Sept. existing-home sales 5.04mln vs. 5.22mln expected
10:00 AM ET, Oct 24, 2007 - 3 hours ago

[UpInArms]

46. Petroleum Inventory - supplies are all down in latest week

23. Crude supplies down 5.3 million brls in latest week
10:32 AM ET, Oct 24, 2007 - 2 hours ago

24. Distillate supplies down 1.8 million brls in latest week
10:32 AM ET, Oct 24, 2007 - 2 hours ago

25. Gasoline supplies down 2 million brls in latest week
10:32 AM ET, Oct 24, 2007 - 2 hours ago

[ozymandius]

3. Oil prices fall below $85 a barrel

SINGAPORE - Oil prices dropped further Wednesday ahead of the release of weekly U.S. fuel data expected to show crude stocks rose last week.

Light, sweet crude for December delivery fell 48 cents to $84.79 a barrel in Asian electronic trading on the New York Mercantile Exchange by midmorning in Singapore. The contract fell 75 cents to settle at $85.27 a barrel Tuesday.

The U.S. Energy Department's data section will issue its inventory report later Wednesday.

-cut-

Analysts surveyed by Dow Jones Newswires on average predict crude inventories rose 300,000 barrels during the week ended Oct. 19. However, estimates vary widely, ranging from an increase of 2 million barrels to a decrease of 2 million barrels.

Analysts also predict the EIA report will show refinery utilization rose 0.3 percentage point; gasoline supplies, still near record lows, rose 1.1 million barrels; and distillate stockpiles, which include heating oil and diesel, rose 200,000 barrels.

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

[UpInArms]

54. Dec. crude ends up $1.83 at $87.10 a barrel on Nymex

02. Dec. crude ends up $1.83 at $87.10 a barrel on Nymex
3:04 PM ET, Oct 24, 2007 - 23 minutes ago

[ozymandius]

4. Comcast admits delaying some traffic

NEW YORK - Comcast Corp. on Tuesday acknowledged "delaying" some subscriber Internet traffic, but said any roadblocks it puts up are temporary and intended to improve surfing for other users.

The statement was a response to an Associated Press report last week that detailed how the nation's largest cable company was interfering with file sharing by some of its Internet subscribers. The AP also found that Comcast's computers masqueraded as those of its users to interrupt file-sharing connections.

Internet watchdog groups denounced Comcast's actions, calling it an example of the kind of abuse that could be curbed with so-called "Net Neutrality" legislation. It would require Internet providers to treat all traffic equally — as has largely been the case historically.

Comcast has repeatedly denied blocking any Internet application, including "peer-to-peer" file-sharing programs like BitTorrent, which the AP used in its nationwide tests.

On Tuesday, Mitch Bowling, senior vice president of Comcast Online Services, added a nuance to that statement, saying that while Comcast may block initial connection attempts between two computers, it eventually lets the traffic through if the computers keep trying.

http://news.yahoo.com/s/ap/20071023/ap_on_hi_te/comcast_data_discrimination

[ozymandius]

6. Comcast Impersonates Users To Control P2P Traffic

Comcast interferes with peer-to-peer traffic on its cable network by masquerading as users and resetting connections, the Associated Press reported on Friday. Apparently in an effort to maintain quality of service, Comcast cuts off uploads of files to BitTorrent and other P2P networks.

While observers agree that an Internet service provider needs to be able manage its traffic, the way Comcast is going about this -- by impersonating customers -- is troubling to many.

"Comcast is in an interesting position because the amount of outbound and inbound traffic is constrained in their network," Dane Jasper, CEO of Sonic.net, a California ISP, said in a telephone interview. "In an asynchronous network, as the amount of outbound traffic grows, inbound rates will decrease." Thus in order to maintain service quality for inbound traffic, which is important to all users, Comcast is throttling outbound P2P traffic.

Impersonating Users

But the way Comcast is doing it -- by "injecting TCP resets that are forged as coming from the customer," according to Jasper -- is "pretty weird." The AP story offered an apt metaphor: It's as if an AT&T operator broke into a phone conversation and impersonated one of the speakers, saying, "I have to go now, goodbye" and closed the connection.

http://news.yahoo.com/s/nf/20071022/tc_nf/56178

[radfringe]

16. we're dumping comcast

we just have the cable tv from them

about two weeks ago we had upgraded to their digital starter package. they were raising prices, and for $2 a month more we would get the on-demand movies

picked up the box and stuff at local cable office, plugged it in and it's been nothing but one problem after another

we've had the service tech out here, and he ran new cable lines and splitters - worked fine that day - the next day, phhhhhtttt

we've put in at least 1 call a day to their helpless desk, sometimes 2 or 3 calls

we've been told it could take up to 24 hours for a signal to "reset", and that the signal doesn't come through the cable, but rather through the air -- :wtf: - then why do they call it freaking cable????

This past saturday we were told it could be the box itself (defective equipment) - so we got a new box and for all our troubles they gave us coupons for 2 free movies on their pay-per-view.. BFD

After installing the 2nd box - phhhhhhhhhhhttttttt. three more calls later it was finally working - until Sunday morning

on Sunday we demanded to speak to a supervisor at the helpless desk - we were told they would send out a technical specialist on Monday

Monday came and went - no phone call, no tech specialist showed up. We were going to call again and complain but said 'f**k it' - instead we went to a couple of local satellite dish places, got some info, had questions answered and we signed up for Dish Network

As soon as the dish is installed, up and running we are canceling Comcast

we have a letter drafted to send to comast headquarters, with a copy to the better business bureau - for whatever good it does

[Kip Humphrey]

21. Its COMCASTIC!!!

:sarcasm:

[ozymandius]

5. Google to buy Nielsen data

SAN FRANCISCO - Determined to sell more television ads, Internet search leader Google Inc. is sharpening its focus on the medium with demographic data from the influential Nielsen Co.

Under an agreement to be announced Wednesday, Google will pay Nielsen an undisclosed amount to obtain detailed information about the kinds of people who watch specific TV shows.

The breakdown, drawn from Nielsen's rating service, typically provides viewers' ages, gender, marital status and other personal data that help advertisers choose the audience most likely to be interested in their product or service.

New York-based Nielsen has been selling demographic data to television stations and advertisers for years.

Google's access to the information is significant because it gives the Mountain View-based company more tools to draw upon as it tries to target television ads as effectively as it has done on the Internet.

http://news.yahoo.com/s/ap/20071024/ap_on_hi_te/google_nielsen

[Hugin]

24. I wouldn't waste my time with Nielsen...

Their data has a distinct bias which would interfere with a clear demographic picture.

[ozymandius]

7. Amazon.com 3rd-quarter profit skyrockets

SEATTLE - Amazon.com Inc. made more money in the third quarter than Wall Street had expected, but investors must have been looking for perfection.

After closing at $100.82 in regular trading Tuesday — its highest point since late 1999 — Amazon's shares fell $10.82, or 10.8 percent, to $90 after-hours.

Investors were disappointed the Web retailer didn't sprint past the forecasts and they may have been concerned about margins, analysts said.

"They didn't have the blowout quarter relative to expectations the way they have in the past," said Dan Geiman, an analyst at McAdams Wright Ragen.

http://news.yahoo.com/s/ap/20071024/ap_on_hi_te/earns_amazon

---

Ridiculous. Amazon.com has a blowout quarter. Yet investors are dismayed that the blowout wasn't as large as they'd hoped. So the stock loses value. What's wrong with this picture?

[ozymandius]

8. Greenspan wary of SIV superfund

The ex-Fed chief said it's not clear if a proposed $75 bil fund to ease the current credit crisis will work. The fund, created by Citigroup (NYSE:C) , Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM PRH) (NYSE:JPM PRX) (NYSE:JPM PRK) (NYSE:JPM PRJ) (NYSE:JPT) (NYSE:JPM) , will buy high-quality assets of structured investment vehicles. Alan Greenspan said, "The issue here is how do you stabilize this sort of market ... will an intervention do that? If you go into a market and absorb a chunk of supply by essentially bidding above what fire-sale prices might be, that might persuade others from trying to get out of the market."

SIVs are off-balance sheet entities created by banks. SIVs sold commercial paper to invest in longer-term assets -- often mortgage-related debt. But the asset-backed paper market has dried up. Banks fear absorbing losses and a hit to their capital ratios. Citi's SIV holdings are extensive. Several senior banking officials have questioned how the SIV superfund will work, but the Fed has sent signals that it is not opposed. U.S. says China restricting trade

http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-20445666.htm

[ozymandius]

9. Bigger loss may lie ahead for Merrill

LONDON (CNNMoney.com) -- As Merrill Lynch & Co. prepares to post its third-quarter results Wednesday, fears are growing the investment bank could take a much larger hit from the mortgage mess than previously anticipated.

Merrill (Charts, Fortune 500) said Oct. 5 that it expected to take an estimated $5 billion writedown in the quarter ended in September, due mostly to risky mortgage bets.

But Merrill's writedown could actually come in much higher, at around $7 billion to $7.5 billion, according to reports in the Wall Street Journal and New York Times.

The uncertainty over Merrill's results, which are due before the markets open, sent U.S. stock futures lower and weighed on stocks overseas as concerns about the subprime crisis were renewed.

http://money.cnn.com/2007/10/24/news/companies/merrill/index.htm

[ozymandius]

10. Staring into Countrywide's abyss

NEW YORK (CNNMoney.com) -- Everyone knows the mortgage market has been very bad for the last few months.

On Friday, when Countrywide Financial reports its third quarter earnings, Wall Street and economists will get their best look yet at just how bad.

-cut-

The company has already disclosed some of the bad news. It will take a charge of between $125 million and $150 million in order to cut staff and close offices as it scales back the business. The number of mortgage loans and their value during the quarter are both down by more that 40 percent.

http://money.cnn.com/2007/10/23/news/companies/countrywide_walkup/index.htm

[ozymandius]

12. Countrywide to Refinance Up to $16 Billion of Loans (Update7)

Oct. 23 (Bloomberg) -- Countrywide Financial Corp., the biggest U.S. mortgage lender, will make it easier for customers to keep their homes by changing the terms on $16 billion of adjustable-rate mortgages.

About 52,000 customers with subprime loans can refinance into prime or government-backed mortgages through next year, the Calabasas, California-based company said today in a statement. Such loans usually have lower rates. Another 30,000 who may miss payments, or are already late, will get more affordable terms.

-cut-

Overdue loans, measured as a percentage of unpaid principal, increased to 5.85 percent in September from 4.04 percent a year earlier, the company said Oct. 11. Foreclosures climbed to 1.27 percent from 0.51 percent. The data cover Countrywide's servicing business, which does billing and collections.

-cut-

One percent of U.S. subprime mortgages with interest rates that began to adjust in January, April and July were modified to help homeowners avoid default, according to a study released last month by Moody's Investors Service. The amount isn't enough to make a meaningful cut in impending losses, Moody's said.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aiL9nFMIUwiI&refer=news

[Hugin]

26. These types of things test my Liberalism...

<bitterness>
I find myself on the edge of thinking... "Instead of doing the savvy thing from the start with a fixed
30 year mortgage, I should have rolled the dice on a bailout." I could've been paying interest only for
a few years.
</bitterness>

[RawMaterials]

44. I know its sucks

I was just thinking the same thing or at the very least had a lower interest rate.

[InkAddict]

43. Waterboarding their captives

to save themselves...TAKE A BREATH then dunk again...unemployment rising...inflation eating away budgets...climate changing. Keep just enough of 'em just alive enough to pay taxes to service the global economic mercenaries.

[ozymandius]

11. Wal-Mart's woeful sales tale

NEW YORK (CNNMoney.com) -- With its U.S. sales growth expected to slow further over the next three years, Wal-Mart executives told analysts Tuesday that the retailer will open fewer stores at home and instead boost its expansion overseas.

Wal-Mart's chief financial officer Tom Schoewe said the world's largest retailer expects overall sales to grow about 9 percent this year, slower than last year's increase of 11.7 percent.

More important, Schoewe said Wal-Mart's sales growth will further slow, to between 5 and 8 percent growth over the next two years.

-cut-

Investors weren't happy with the sales guidance, pushing Wal-Mart's (Charts, Fortune 500) stock down almost 3 percent in afternoon trading.

Wal-Mart warned last month that its core low-to-middle-income customers "remain concerned about their finances, especially the cost of living," in light of the housing slowdown and a tighter credit market.

http://money.cnn.com/2007/10/23/news/companies/walmart/index.htm

[ozymandius]

13. Wal-Mart Cuts Capital Spending as U.S. Sales Slow

Oct. 23 (Bloomberg) -- Wal-Mart Stores Inc., the world's largest retailer, reduced its capital spending forecast for the second time this year and raised spending plans for its international operations.

Capital expenses for the year that ends in January 2008 will be about $15 billion, lower than the $15.5 billion Wal-Mart forecast in June and below its original projection of $17 billion, Wal-Mart Chief Financial Officer Thomas Schoewe said today at an analysts' meeting in Rogers, Arkansas. International expenditures may rise to as much as $9.9 billion.

Investors hoping that Wal-Mart would put savings from slowing store openings into share buybacks and higher dividends were dismayed by the increase in international investments, said Rochdale Investment Management's David Abella. Wal-Mart may have expanded its store count at the expense of older locations, where sales are rising at the lowest rate in 27 years.

-cut-

The retailer operates more than 7,000 stores worldwide, with 58 percent in the U.S., including about 2,400 supercenters.

Wal-Mart said today it would scale back the number of new supercenters it opens by about a third, to 195, in the year through January 2008. Two years later, Wal-Mart plans to add 140 new supercenters, half the number it opened last year.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aK8I.bUI0geE&refer=news

[ozymandius]

14. futures numbers

06:19 am : S&P futures vs fair value: -9.9. Nasdaq futures vs fair value: -26.0.

[ozymandius]

15. Good morning everyone.

:donut: :donut: :donut:

Time for me to leave. Thanks to everyone who contributes to the thread. Your efforts certainly make this an enjoyable evening read.

Ozy :hi:

[UpInArms]

18. dollar watch

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

Last trade 77.667 Change +0.129 (+0.17%)

US Fed: Will They Do The Unexpected And Leave Rates Unchanged?

http://www.dailyfx.com/story/topheadline/US_Fed__Will_They_Do_1193154715431.html

Comments by FOMC members ahead of the highly-anticipated October 31st rate decision shows some emerging divisions, as dovish references to softer core inflation have been countered by more neutral notations of healthy output and employment levels. Despite the fact that Fed fund futures are currently pricing in a 88% chance of a rate cut at the end of the month, the markets could see a surprising decision to leave policy unchanged as the FOMC may take a wait-and-see approach until December:

Ben Bernanke, Federal Reserve Chairman (Voting Member)

“Uncertainty -- about the state of the economy, the economy's structure and the inferences that the public will draw from policy actions or economic developments -- is a pervasive feature of monetary policymaking.” – October 19, 2007

Sandra Pianalto, Federal Reserve Bank of Cleveland President (Alternate Voting Member)

“Since the Federal Reserve cut interest rates in September, the housing sector has remained very weak, but output and employment in other sectors appear to be holding up.” – October 19, 2007

Frederic Mishkin, Federal Reserve Board Governor (Voting Member)

“As long as the permanent change in relative energy prices does not lead to a change in the underlying trend rate of inflation - a crucial assumption - then headline inflation will come back down again … this is what we seem to have seen recently in the United States…What central bankers are truly concerned with ... is the underlying rate of inflation going forward, and core inflation can be a useful proxy for that rate … thus, focusing on core inflation can help prevent a central bank from responding too strongly to transitory movements in inflation.” – October 20, 2007

Thomas Hoenig, Federal Reserve Bank of Kansas City President (Voting Member)

“The question that one asks is what are the implications for policy and the answer to that is obvious and is wait and see. Because it depends on how all these factors play out…I'm optimistic, but I am also realistic and I want to stay alert as we move through this tender time.” – October 18, 2007

Randall Kroszner, Federal Reserve Governor (Voting Member)

“In the months ahead, the Federal Reserve will continue to monitor developments in the financial markets and act as needed to support the effective functioning of these markets and to foster sustainable economic growth and price stability.” – October 23, 2007

...more...

Dollar - Will Housing Continue To Collapse?

http://www.dailyfx.com/story/bio2/Dollar___Will_Housing_Continue_1193219450847.html

Another night of seesaw action as the high yielders first rose on buoyant stock action in the US, only to turn lower when Nikkei staged a major reversal to the downside. The Nikkei which at one point was higher by a 120 points, ended the day down -92 points taking many of the FX carry trades down with it.

In economic news Australian CPI numbers printed slightly hotter than expected with the annualized weighed median coming in at 3.1%, against a forecast of 2.8% rise. The strong numbers increased the risk of another 25bp RBA rate hike at the November 7th meeting. However, given the fact that Australian election is scheduled for November 24th we wonder if the RBA will follow suit of many other OECD central banks and stand down ahead of this major political event. Despite the clearly supportive fundamentals Australian monetary authorities may wish postpone any policy decision until the December meeting in which case the Aussie may come under some profit taking pressure.

The euro continued to underperform the pound in overnight trade as the early PMI survey reading flashed the first signs of trouble for the manufacturing sector. The manufacturing PMI dropped to 51.5 against 52.9 expected, it lowest value in 18 months and within striking distance of signaling a contraction as the high euro is beginning to exert a negative influence on the regions industrial sector. Meanwhile, the services component actually performed better than forecast printing at 55.6 versus 54.5 consensus, with the end result being that that composite reading remained comfortably above the 50 boom/bust line at 54.5. Nevertheless, the first unequivocal evidence of slowdown in EZ manufacturing, indicates that the ECB despite its tough talk will do nothing on the rate front for the rest of the year. As we noted last Friday, “If rate expectations for ECB are indeed scaled back… the (EURGBP) cross which hit .7000 once again in overnight trade on further rate hike speculation, may begin to correct towards the 6900 figure as traders adjust to the latest economic news flow.” With the cross now trading at 6940 it appears to be heading in that direction.

Finally, today brings the US Existing Home Sales data and dollar bulls will anxiously look for any signs of stabilization in the bruised and battered US housing sector. Another negative surprise may seal the deal on a Fed rate cut next week and could push the greenback lower, especially if equity markets rally on the news and carry trade flow comes back into the market.

...more...

US Dollar Resumes Its Descent Ahead Of NAR Existing Home Sales

http://www.dailyfx.com/story/bio1/US_Dollar_Resumes_Its_Descent_1193177840365.html

The US dollar steadily lost ground today against nearly all of the majors – with the exception of the Japanese yen – as the forex markets remain overwhelmingly bearish on the beleaguered currency. The release of the Richmond Fed manufacturing index did little to help the greenback, as the gauge of overall business activity for factories unexpectedly declined to a five month low of -5 from 14. The drop was led by weakness in shipments and new orders, as domestic demand appears to be waning. Meanwhile, the inventories component fell back as well, suggesting that manufacturers don't expect orders to rebound in the near-term. The release of the National Association of Realtor’s existing home sales index on Wednesday could be particularly perilous for the US dollar, as the figure is anticipated to have fallen back 4.5 percent to a nearly six-year low of 5.25M. While such a weak figure will not come as much of a shock to investors, the NAR release will serve as a broad barometer for the entire housing market, as existing homes make up approximately 87 percent of the sector. With sales plummeting, the numbers of homeowners that are forced to default have gradually increased. Furthermore, the American Bankruptcy Institute, a nonprofit research group, reported on Tuesday that consumer bankruptcy filings have increased almost 23 percent from a year earlier. Clearly, homeowners are becoming increasingly distressed when it comes to repaying their debts, suggesting that withering disposable income will leave consumption likely to take a hit next. While this is certainly bearish for the US dollar, US equities may take the news to heart as well as a reminder that the woes of the credit markets are not quite over yet, and as Federal Reserve Governor Randall Kroszner said recently, "The recovery may be a relatively gradual process and these (credit) markets may not look the same when they re-emerge."

...more...

[UpInArms]

19. Options market maker RV Capital defaults at Liffe

http://www.reuters.com/article/bondsNews/idUSL246668120071024?sp=true

LONDON, Oct 24 (Reuters) - Pan-European financial and commodities derivatives market Liffe said on Wednesday it had declared market maker RV Capital LLP in default and barred members from doing business with it.

It was the first such move in nine years by the London-based exchange. Defaulting at Liffe means a member company is not considered capable of meeting its financial obligations.

The two parties declined to comment further but one source close to the issue said RV Capital had run into liquidity difficulties which surfaced after the recent global credit crunch.

The source said that the problem had come mainly in the short sterling interest rate market where RV Capital held positions in options.

London-based RV Capital was founded by Jerome Roussel and Duncan Valentine in January 2006 to provide liquidity in derivative products to banks and brokers on listed exchanges, according to its website.

It describes itself as "the number one market maker on fixed income options on Eurex and on Liffe". Eurex, the European derivatives exchange, also had no comment.

...more...

[DemReadingDU]

28. Mike Whitney: Paulson’s $100 billion “Bankers Bankruptcy Fund”

10/22/07 Paulson’s $100 billion “Bankers Bankruptcy Fund” and the G-7 Fiasco By Mike Whitney

Friday’s bloodbath on Wall Street proved that the troubles in the credit markets have not been relieved by the Fed’s rate cuts. The Dow Jones slipped 367 points on the 20th anniversary of Black Monday, the stock market’s biggest one-day loss in history. Since Friday, Asian markets have plunged; stocks are down sharply in Japan, Australia, Hong Kong, Indonesia, the Philippines, Taiwan and South Korea. The global sell-off is a reaction to ongoing problems in the subprime market and deeper-rooted systemic issues related to the US’s structured-debt model.

The sudden downturn in the stock market provided a fitting backdrop for Treasury Secretary Paulson’s appearance at the G-7 meetings in Washington DC. Paulson has largely shrugged off the decline in housing and the growing volatility in the equities markets. As the representative for the world’s biggest economy, Paulson instructed the other nations on how best to adjust their currencies and on the dangers of “sovereign wealth funds”. No one was listening. Foreign ministers and central bankers are less receptive to the scolding of US officials. America needs to put its own house in order before it gives advice to anyone else.

<lots more>

Interest rates cuts will do nothing to slow the inexorable deterioration in the housing or stock markets. Cheap credit will not dispose of the toxic debt clogging the system or slow the pace of defaults. Trillions of dollars in market capitalization will be lost.

The system is blinking red. These problems cannot be ignored or swept under the rug any longer.

Leadership is critical in times of economic crisis. This isn’t the time for prevarication, obfuscation or public relations gimmicks. We need leaders who will tell the truth, make remedial policy recommendations, and forestall the growing probability of social disorder.

http://www.informationclearinghouse.info/article18601.htm

[UpInArms]

29. Fed Pumping Action in Progress: Fed doing overnight repo to add temporary reserves

http://www.reuters.com/article/bondsNews/idUSNYG00080020071024

NEW YORK, Oct 24 (Reuters) - The U.S. Federal Reserve said on Wednesday it was adding temporary reserves to the banking system through an overnight repurchase agreement.

Federal funds were trading steady at 4.75 percent in the market, matching the 4.75 percent target rate the Fed sets.

[UpInArms]

33. Fed adds $6.5 bln in reserves via overnight repo

http://www.reuters.com/article/bondsNews/idUSNYG00080120071024

NEW YORK, Oct 24 (Reuters) - The U.S. Federal Reserve said on Wednesday it added $6.5 billion of temporary reserves to the banking system through an overnight repurchase agreement.

Federal funds were trading steady at 4.75 percent in the market after the operation amount was announced, matching the target rate the Fed sets.

The Fed said collateral accepted in the operation was $6.5 billion of Treasuries.

A total of $47.6 billion in bids were submitted for the operation.

[UpInArms]

35. "The Fed said collateral accepted in the operation was $6.5 billion of Treasuries."

Check-kiting at its finest!

from wikipedia:

Circular kiting

Circular kiting describes forms of kiting in which one or more additional banks serve as the location of float, and involve the use of multiple accounts at different banks. In its simplest form, the kiter, who has two or more accounts of his/her own at different banks, writes a check on day one to him/herself from Bank A to Bank B (this check is referred to as the kite), so funds become available that day at Bank B sufficient for all checks due to clear. On the following business day, the kiter writes a check on his/her Bank B account to him/herself and deposits it into his/her account at Bank A to provide artificial funds allowing the check s/he wrote a day earlier to clear. This cycle repeats until the offender is caught, or until the offender deposits genuine funds, thereby eliminating the need to kite, and often going unnoticed.

Complex versions of this scheme have occurred involving two separate people, each with an account at a different bank, constantly writing checks to one another, or a group of individuals writing checks in a circular fashion, thereby making detection more difficult. Some kiting rings involve offenders posing as large businesses, thereby masking their activity as normal business transactions and making banks inclined to waive the limit of funds made available.

[w8liftinglady]

37. ok-I admit I am uneducated in this area.How much money DOES the Fed have?

it seems like every day I read about the Fed pumping money into "something".Is it just temporary,like a payday loan?Or do these entities keep the money?

[DemReadingDU]

38. I was wondering the same thing

Does the Fed ever run out of money? Or does the Fed print whatever it needs every day? Is there a limit to the daily amount the Fed can use to pump?

[InkAddict]

41. More along the line of holding up the mine ceiling

with lots of little toothpicks.

[UpInArms]

48. Remarks by Governor Ben S. Bernanke (now Fed Chairman)

http://www.federalreserve.gov/boardDocs/speeches/2002/20021121/default.htm

What has this got to do with monetary policy? Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.

Of course, the U.S. government is not going to print money and distribute it willy-nilly (although as we will see later, there are practical policies that approximate this behavior).8 Normally, money is injected into the economy through asset purchases by the Federal Reserve. To stimulate aggregate spending when short-term interest rates have reached zero, the Fed must expand the scale of its asset purchases or, possibly, expand the menu of assets that it buys. Alternatively, the Fed could find other ways of injecting money into the system--for example, by making low-interest-rate loans to banks or cooperating with the fiscal authorities. Each method of adding money to the economy has advantages and drawbacks, both technical and economic. One important concern in practice is that calibrating the economic effects of nonstandard means of injecting money may be difficult, given our relative lack of experience with such policies. Thus, as I have stressed already, prevention of deflation remains preferable to having to cure it. If we do fall into deflation, however, we can take comfort that the logic of the printing press example must assert itself, and sufficient injections of money will ultimately always reverse a deflation.

so long as there is ink.....

[Hugin]

49. I like your description of the 'pumping' as being more like 'check-kiting'...

In layman's terms it fits. The Fed provides huge lumps of money via short term loans (over-night to 14 days) at
a very low interest rate. The big-players line up each day and take out one of these loans when the previous one
expires. It's a way of continuously financing a huge debt with very little collateral. Round and round it goes...

Please, if I'm incorrect, someone set me straight on these 'pumps'.

[DemReadingDU]

52. Kinda like spining the casino wheel

around, and around, and around. Then it stops.

It seems to me that all this Fed pumping, can't go forever.

:shrug:

[Hugin]

56. It's like the game of Musical Chairs too...

Ouch, if you miss an empty chair.

:)

:crazy:

[TrogL]

60. On this I agree with the Gold Bugs

Just like Germany during WW III, the Fed can just keep printing money until presses break.

$2.00 loonie, anyone?

[UpInArms]

30. 9:42 EST and off the lows - into recovery mode

Dow 13,644.36 31.87 (0.23%)
Nasdaq 2,776.69 22.57 (0.81%)
S&P 500 1,513.35 6.24 (0.41%)
10-Yr Bond 4.376% 0.029

NYSE Volume 171,204,703.125
Nasdaq Volume 167,909,984.375

08:31 am : S&P futures vs fair value: -10.3. Nasdaq futures vs fair value: -25.5. Early action continues to have a bearish bias. Prior to the 8:00 ET update, Boeing (BA) and CME Group (CME) reported earnings that beat the consensus estimate.

08:01 am : S&P futures vs fair value: -9.7. Nasdaq futures vs fair value: -24.3. The futures market is pointing to a decidedly lower start. Amazon (AMZN) is acting as a drag after not beating expectations by as much as some had hoped, and due to concerns over the company’s profit margins. Merrill Lynch (MER) reported a larger than expected loss.

06:19 am : S&P futures vs fair value: -9.9. Nasdaq futures vs fair value: -26.0.

06:18 am : FTSE...6539.50...+25.50...+0.4%. DAX...7835.69...-7.10...-0.1%.

06:18 am : Nikkei...16358.39...-92.19...-0.6%. Hang

[UpInArms]

31. National City net sinks 80 pct, 2,500 jobs cut

http://www.reuters.com/article/bondsNews/idUSN2446296520071024?sp=true

NEW YORK, Oct 24 (Reuters) - National City Corp (NCC.N: Quote, Profile, Research), a large U.S. Midwest bank, on Wednesday said third-quarter profit fell 80 percent, as mortgage losses mounted even after the sale of a subprime lending unit to Merrill Lynch & Co (MER.N: Quote, Profile, Research).

The ninth-largest U.S. bank also said it has eliminated 2,500 jobs, or roughly 7 percent of its work force, as it reduces costs companywide, with 1,700 of the cuts related to mortgages. Last month, the bank had said it was eliminating 1,300 mortgage jobs.

National City is based in Cleveland, Ohio. Its home state had the third-highest number of foreclosures nationwide in September, while Michigan, where the bank also has large operations, ranked fourth, according to RealtyTrac Inc.

Net income fell to $106 million, or 18 cents per share, from $526 million, or 86 cents, a year earlier. Results included a $152 million loss, or 25 cents per share, in mortgage banking.

<snip>

Results were hurt by "unprecedented disruption and weakness in the mortgage and housing markets," Chief Executive Peter Raskind said in a statement. "Based on the difficult conditions in the financial markets, which we expect to persist in 2008, we have undertaken an aggressive review of our cost structure."

...more...

[TrogL]

39. Loonie Watch

(speeling, formatting)

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2007-09-24 Monday, September 24 0.998901 USD
2007-09-25 Tuesday, September 25 0.9995 USD
2007-09-26 Wednesday, September 26 0.99552 USD
2007-09-27 Thursday, September 27 0.99691 USD
2007-09-28 Friday, September 28 1.00412 USD
2007-10-01 Monday, October 1 1.00715 USD
2007-10-02 Tuesday, October 2 0.9998 USD
2007-10-03 Wednesday, October 3 1.00392 USD
2007-10-04 Thursday, October 4 1.002 USD
2007-10-05 Friday, October 5 1.01885 USD
2007-10-08 Monday, October 8 1.01885 USD
2007-10-09 Tuesday, October 9 1.01564 USD
2007-10-10 Wednesday, October 10 1.01906 USD
2007-10-11 Thursday, October 11 1.02627 USD
2007-10-12 Friday, October 12 1.02701 USD
2007-10-15 Monday, October 15 1.02501 USD
2007-10-16 Tuesday, October 16 1.0227 USD
2007-10-17 Wednesday, October 17 1.02712 USD
2007-10-18 Thursday, October 18 1.02743 USD
2007-10-19 Friday, October 19 1.03767 USD
2007-10-22 Monday, October 22 1.01926 USD
2007-10-23 Tuesday, October 23 1.03381 USD

Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash        1.0350 1.0350 1.0309 1.0310 -0.0037 -0.36% 
CD.Z07 Dec 2007    1.0308 1.0338 1.0295 1.0295 -0.0053 -0.51% 
CD.H08 Mar 2008    1.0303 1.0303 1.0303 1.0303 -0.0043 -0.41% 
CD.M08 Jun 2008    1.0283 1.0283 1.0247 1.0344 +0.0153 +1.48% 
CD.U08 Sep 2008    1.0322 1.0344 1.0322 1.0340 +0.0153 +1.48% 
CD.Z08 Dec 2008    1.0330 1.0330 1.0330 1.0331 +0.0153 +1.48% 
CD.H09 Mar 2009    1.0055 1.0060 1.0050 1.0322 +0.0153 +1.48%

Other combinations:

AU.Z07 AUSTRALIAN $/US$ Dec (NYBOT)          0.89465 +0.01345 
HY.Z07 CANADIAN $/JAPANESE YEN Dec (NYBOT) 117.40    -0.55 
GB.Z07 EURO/BRITISH POUND Dec (NYBOT)        0.6975  +0.0004 
EP.Z07 EURO/CANADIAN $ Dec (NYBOT)           1.37805 -0.01080 
EJ.Z07 EURO/JAPANESE YEN Sep (NYBOT)       162.23    -0.41 

Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The December Canadian Dollar was lower overnight as it consolidates some of Tuesday's rally but remains above the 10-day moving average crossing at 1.0270. Stochastics and the RSI are overbought, diverging and are turning bearish signaling that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1.0184 would confirm that a short-term top has been posted. If December extends this fall's rally, upside targets are hard to project if it extends this fall's rally into uncharted territory. First resistance is last Friday's high crossing at 1.0383. First support is the 10-day moving average crossing at 1.0270. Second support is Monday's low at crossing at 1.0179.

Analysis

Silly bot. After the last few days' wild swings, opening slightly lower by that percentage is barely significant. Have you seen what reports are coming out in the next few days for the US? With Dubya fighting multiple wars and the ghost of Katrina looking over his shoulder, where's the money coming from to rebuild California?

The City of Edmonton (I know - where????), just finished the South-East portion of its ring road financed by Public-Private Partnership (P3).

To date, the Alberta government has contributed $800 million toward the southeast and southwest sections of Anthony Henday Drive. Using the made-in-Alberta P3 highways approach means the road has been built sooner than conventional construction and taxpayers have been protected from rising inflation costs. Anthony Henday Drive Southeast was on budget and on schedule. (http://www.tc.gc.ca/mediaroom/releases/nat/2007/07-h206e.htm ).

(I heard a number in the billions but I think that's the entire project from start to finish, sometime in 2011).

The southeast stretch of Anthony Henday Drive cost $493 million and was built on time and on budget, something the province said could not have happened without a so-called P3 agreement.http://www.cbc.ca/canada/edmonton/story/2007/10/22/southeast-henday.html?ref=rss

A similar project is on the way in Calgary.

Edmonton (with Provincial and Federal financing) is also building a major expansion to its Light Rail Transit network. Part of the construction is on my morning drive-through and the place is a whirlwind. I easily counted 500 people working.

This is classic Keynesian economics. Alberta is reaping the benefit of an oil boom. Rather than spending it on wars or tax cuts for the rich (there was a minor tax cut but most people will benefit) it's being spent on infrastructure projects that will benefit into the next century and provide employment for countless numbers of people. (One of the guys interviewed on the morning drive-in show proclaimed "it's great - it saved 15 minutes off my commute". I'm hoping we see a little more benefit than that, but I'm glad somebody's happy.)

[Roland99]

42. 11:58am - OUCH! Existing home sales drop 8%! Inventory highest in 20 years!

Dow 13,516.49 -159.74
Nasdaq 2,738.18 -61.08
S&P 500 1,496.44 -23.15
Gold $761.70 $-1.40
10 YR 4.33% -0.07
Oil $86.40 $1.13

[UpInArms]

47. 1:11 EST and off its lows

Dow 13,539.01 137.22 (1.00%)
Nasdaq 2,742.68 56.58 (2.02%)
S&P 500 1,499.33 20.26 (1.33%)
10-Yr Bond 4.329% 0.076

NYSE Volume 1,965,066,875
Nasdaq Volume 1,565,710,875

1:00 pm : The major indices have been trading in a relatively tight range for the last hour. The ten major sectors remain in negative territory.

Dow component Boeing (BA 94.08, -0.87 ) reported third quarter earnings of $1.44 per share, with beat the consensus estimate of $1.24. The stock is down, though, after the company issued mixed earnings guidance.

Only three Dow components are currently in the green. Caterpillar (CAT 74.80, +0.38), DuPont (DD 47.11, +0.30) and Coca-Cola (KO 59.86, +0.11) are relative outperformers. IBM (IBM 112.63, -2.05), AIG (AIG 62.74, -1.53) and AT&T (T 40.89, -1.13) are the main laggards. DJ30 155.59 NASDAQ -60.28 SP500 -22.22 NASDAQ Dec/Adv/Vol 2273/617/1.48 bln NYSE Dec/Adv/Vol 2562/611/714 mln

12:35 pm : Since the last update, the major indices have made some gains. The gains are small relative to this session's range.

The financial sector's (-2.3%) industries are in negative territory, with the exception of specialized finance (+1.5%). CME Group (CME 660.64, +25.74), which operates the Chicago Mercantile Exchange, is giving the industry a boost after topping its earnings expectations by $0.19.

Meanwhile, the 10-year note is up 22/32, pushing its yield down to 4.33%DJ30 -138.93 NASDAQ -56.19 SP500 -19.32 NASDAQ Dec/Adv/Vol 2260/596/1.35 bln NYSE Dec/Adv/Vol 2604/569/640 mln

[UpInArms]

50. 2:12 EST from bad to worse

Dow 13,492.19 184.04 (1.35%)
Nasdaq 2,727.62 71.64 (2.56%)
S&P 500 1,492.36 27.23 (1.79%)
10-Yr Bond 4.321% 0.084

NYSE Volume 2,341,116,250
Nasdaq Volume 1,828,986,375

largely unchanged since the last update as there has not been any resolute buying or selling interest. The market has been stuck slightly above its intraday low for about two hours.

This session has not been good to Merrill Lynch (MER 62.36, -4.79). As previously stated, the company reported earnings that were drastically worse than expected, and its rating was downgraded at S&P Ratings Service.

In addition, Moody's Investors Service has now downgraded the long-term ratings of Merrill Lynch to A1 from Aa3 and assigned a negative outlook to the new ratings. Moody's stated, "The jump in the write-down suggests that management did not fully understand their exposures."

Meanwhile, Deutsche Bank cut its price target on Merrill Lynch to $80 from $107. DJ30 -163.15 NASDAQ -69.05 SP500 -24.42 NASDAQ Dec/Adv/Vol 2293/617/1.72 bln NYSE Dec/Adv/Vol 2568/644/852 mln

1:30 pm : The major indices continue to trade in a relatively tight range near their session lows.

The Russell 2000 Index (-2.1%), which is made up of small-cap stocks, is trailing its large-cap counterparts. For the year, the index is underperforming. The Russell 2000 is up 3.9% while the S&P 500 is up 7.1%.DJ30 -146.16 NASDAQ -59.82 SP500 -22.10 NASDAQ Dec/Adv/Vol 2291/617/1.60 bln NYSE Dec/Adv/Vol 2607/584/760 mln

[UpInArms]

51. Wellcare offices raided by federal, state agents

http://online.wsj.com/article/SB119324468280269999.html?mod=MKTW

Agents from the Federal Bureau of Investigation and other federal and state agencies raided the headquarters of WellCare Health Plans Inc. in Tampa, Fla., according to the U.S. Attorney's office there. Spokesman Steve Cole declined to comment further.

The New York Stock Exchange subsequently halted trading of shares in WellCare, which provides managed-care plans for 2.3 million Medicare and Medicaid participants nationwide. In early trading, the stock had fallen $6.77, or nearly 6%, to $115.50.

A company spokesman couldn't immediately be reached for comment.

The Web site of a local television station, Fox-affiliated Channel 13, reported that dozens of armed agents participated in the raid, and that company billing employees were told to go home.

...more without motive for raid...

[AnneD]

55. A heads up....

you are going to be seeing a lot more medicare fraud esp out of Fla. It is replacing the drug trade as it is profitable and one is less likely to be killed. (unless you count ol lady ass whoopins) :spray:

[UpInArms]

53. 2:58 EST don't worry - be happy!

Dow 13,595.02 81.21 (0.59%)
Nasdaq 2,752.27 46.99 (1.68%)
S&P 500 1,505.56 14.03 (0.92%)
10-Yr Bond 4.329% 0.076

NYSE Volume 2,727,201,750
Nasdaq Volume 2,106,214,750

2:30 pm : The stock market has been somewhat choppy since the last update, although its range has been limited. The major indices are now above their midday range due to a broad-based pickup in buying interest, but are still posting good sized losses.

Despite the gains, the ten sectors still remain in negative territory.

In currency trading, the dollar index is up 0.025%.
DJ30 -101.78 NASDAQ -55.59 SP500 -16.82 NASDAQ Dec/Adv/Vol 2369/570/1.86 bln NYSE Dec/Adv/Vol 2572/640/891 mln

[ozymandius]

57. Today's SMW has been brought to you by the letters P-P&T

just before the close...

Dow 13,676.31 Up 0.08 (0.00%)
Nasdaq 2,774.76 Down 24.50 (0.88%)
S&P 500 1,515.92 Down 3.67 (0.24%)
10-Yr Bond 4.331% Down 0.074
NYSE Volume 3,546,857,500
Nasdaq Volume 2,688,739,500

3:30 pm : The major indices have rallied back in impressive fashion after holding on a re-test of this morning's lows. The resilience has spurred additional buying efforts, and most likely short-covering activity that has contributed to the expeditious rebound effort.

The Dow has made it to positive territory, for the first time this session.

The Dow, Nasdaq and S&P are 210, 53 and 27 points off their session lows, respectively.

After the close, 102 companies are set to report their earnings.

DJ30 +4.31 NASDAQ -25.57 SP500 -3.22 NASDAQ Dec/Adv/Vol 2091/859/2.27 bln NYSE Dec/Adv/Vol 2282/963/1.15 bln

[Hugin]

58. Made my ears pop...

You think chewing gum would help?

[ozymandius]

59. ha ha ha

Federal Mint flavor?

[ozymandius]

61. nighty night

Dow 13,675.25 Down 0.98 (0.01%)
Nasdaq 2,774.76 Down 24.50 (0.88%)
S&P 500 1,515.88 Down 3.71 (0.24%)
10-Yr Bond 4.331% Down 0.074
NYSE Volume 4,007,770,000
Nasdaq Volume 2,812,582,750

4:20 pm : Some disappointing earnings developments, a weak existing home sales report, and a spike in oil prices precipitated a sharp decline in the major indices in the early-going. A late-day rally, however, made things look a lot better by the closing bell than they had been.

Once again, there was a host of companies reporting quarterly results. The two reports that drew the most attention, and which were most responsible for the early declines, were the ones from Amazon.com (AMZN 88.73, -12.09) and Merrill Lynch (MER 63.22, -3.90).

In the case of Amazon, it actually beat the consensus EPS estimate by a penny and issued in-line guidance. With shares of AMZN up 49% from their July low, though, momentum accounts wanted more and sold the stock aggressively when they didn't get it. In turn, underlying concerns about Amazon's profit margins also drove the selling interest.

The strikingly negative response to Amazon's report got the better of a lot of high-flying technology stocks, as investors moved to secure profits. Those losses weighed heavily on the broader market and culminated in a 79-point drop for the Nasdaq Composite at its lows for the session.

The Dow and S&P suffered considerably, too, with declines of 205 points and 30 points, respectively, at their worst levels. A dreadful third quarter report from Merrill Lynch, which posted a net loss of $2.85 per share from continuing operations after recording a massive $7.9 billion write-down for collateralized debt obligations and U.S. subprime mortgages, served as a driving catalyst.

Merrill Lynch's stock held up reasonably well initially, but when the news hit that Standard & Poor's cut its debt ratings for the investment bank, and noted a negative outlook, losses in the stock accelerated.

The financial sector (-0.8%) was taken along for the ride on pressing concerns that Merrill's bad news suggests more write-downs will be coming in the fourth quarter. In brief, the realization hit that the third quarter may not have been the bottom for the financial sector as many pundits had claimed.

Compounding the selling activity was the indication from the National Association of Realtors that existing home sales fell 8.0% in September to an annualized rate of 5.04 million units (consensus 5.25 mln) while median prices dropped 4.2%.

Soon after the existing home sales report, the Dept. of Energy's inventory report showed sharp declines in stockpiles versus the market's expectations for a build in inventory levels. The surprising drawdown led to a 2.2% increase in crude prices to $87.10 per barrel.

After suffering the early pounding, the stock market attempted to recover the lost ground in halfhearted fashion. The initial recovery try failed and the indices eventually rolled over again. However, when the indices retested their early morning lows around 2:00 pm ET and held, buyers stampeded back into the market and drove the Dow back to positive territory an hour later.

The successful rebound effort most likely prompted some short-covering activity that contributed to the expeditious recovery.

Separately, there was some speculation that the Fed might be on the verge of cutting the discount rate, but a Fed spokesman declined to comment on that speculation. Even so, the prospect of further rate cuts and the successful retest of the morning lows were motivating factors that spurred the renewed buying interest.

The Treasury market for its part benefited from the stock market's volatility and the weak housing data. The 10-year note gained a half point and saw its yield drop to 4.34%.DJ30 -0.98 NASDAQ -24.50 SP500 -3.71 NASDAQ Dec/Adv/Vol 1997/967/2.78 bln NYSE Dec/Adv/Vol 2048/1220/1.57 bln