STOCK MARKET WATCH, Wednesday January 9

[UpInArms]

Source: du

STOCK MARKET WATCH, Wednesday January 9

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 377 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2548 DAYS
WHERE'S OSAMA BIN-LADEN? 2270 DAYS
DAYS SINCE ENRON COLLAPSE =2231
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 January 8, 2008

Dow... 12,589.07 down 238.42 (1.86%)
Nasdaq... 2,440.51 down 58.95 (2.36%)
S&P 500... 1,390.19 down 25.99 (1.84%)
10-Yr Bond...3.84% down 0.001
Gold future... $$880.30





GOLD, EURO, YEN, Dollars and Loonie



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


(UIA - just filling in for Ozy!)

Read more: du

[UpInArms]

1. Today's WrapUp by Frank Barbera, CMT

BREAKDOWN

Definition:

a. The act or process of failing to function or continue.
b. A typically sudden collapse.

Well, today’s action and the action of 2008 so far rates as a Breakdown, and very likely a Breakdown for the Ages. Over the last few months, we have consistently been pointing to the huge topping process taking place on the S&P 500 with the idea of alerting readers to the high risk contained within the stock market. How could it be that the banking system of the United States, and indeed a good chunk of the Western World is literally brought to its knees by a bad debt problem, and the S&P would manage to hold up with no collateral damage? Does this thought process really make sense? Certainly not from our point of view. Instead, we have continued to monitor what has been a steadily building distribution top in the S&P and a host of other global indices, with the results leading into the serious downside breakdown below key support at 1410 on the S&P seen today. Going back to our December 2007 article, “The End of Denial,” we pointed out that there would be plenty of sucker rallies along the way as the market started its inexorable slide. We stated,

“Slippage soon becomes the order of the day and quietly or not so quietly the S&P slips below the November lows. Breaking below 1400, the index violates the 200 day lower band falling toward the low 1300 area. The last gasp of Denial then carries the day with a failing rally back to the underside of the Double Top structure with 1420 to 1425 strong resistance. The feeling on behalf of the crowd is often most intensely hopeful on these short but powerful up thrusts from below the topping structure. They are easy rallies to get suckered back in, yet they evaporate like a mirage in the desert and yield new lows and snowballing downside momentum within almost no time at all. It is the striking contrast of fleeting hope followed by a crushing downward thrust in close succession which is the anatomy of a pre-crash lead in pattern.”

Such a failing rally to the underside of the Double Top was seen over the last few hours, with a peak earlier today at 1430.28. Of course, seeing the stock market advance, many were probably not troubled by the stunning 17% downward open in Countrywide Financial (CFC) or the early 5 to 6% declines in Ambac or MBIA. Yet, as the financial sector continued to decline during the day, wasn’t it only a matter of time before the larger scale sell programs kicked in to bash the S&P? At the end of the day, not only was the news ugly, but the price damage reflected the grim mood with prices accelerating sharply lower into the close, the rally evaporating like a mirage in the desert yielding a nightmare of a major support breakdown on the S&P.



...more...

[RUMMYisFROSTED]

60. "Everything is coming up roses!"

[Roland99]

2. Morning, UIA. Thanks for filling in. Here are some market futures....

7:29am
S&P 500 +1.80 1398.80
NASDAQ -0.50 1928.00
Dow Jones +9.00 12660.00

8:03am
S&P 500 +4.00 1401.00
NASDAQ +3.00 1931.50
Dow Jones +25.00 12676.00

[UpInArms]

7. g'morning Roland!

I (and probably everyone else around here) will be happy when Ozy gets his internet connection working again.

Sometimes I think that city folks really don't have it any better than us rural dwellers - you all just have more of it :)

Glad to have you out there helping keep this thread going!

:hi:

(edited for grammar)

[burf]

8. Read this last night

According Evans-Pritchard Chimpy has a plan:

Bush convenes Plunge Protection Team

By Ambrose Evans-Pritchard, International Business Editor

08/01/08 "The Telegraph" -- - Bears beware. The New Deal of 2008 is in the works. The US Treasury is about to shower households with rebate cheques to head off a full-blown slump, and save the Bush presidency. On Friday, Mr Bush convened the so-called Plunge Protection Team for its first known meeting in the Oval Office. The black arts unit - officially the President's Working Group on Financial Markets - was created after the 1987 crash.

It appears to have powers to support the markets in a crisis with a host of instruments, mostly by through buying futures contracts on the stock indexes (DOW, S&P 500, NASDAQ and Russell) and key credit levers. And it has the means to fry "short" traders in the hottest of oils

Link: http://www.informationclearinghouse.info/article19020.htm

It looks as though I should start looking forward to the pony that is coming! Ponies for EVERYONE! The decider guy has saved the day. //sarcasm off//

[UpInArms]

20. Bush reportedly mulling tax rebates, breaks

http://www.marketwatch.com/news/story/bush-reportedly-mulling-rebates-taxpayers/story.aspx?guid=%7B9C369C64%2D4407%2D4853%2D943D%2D3714C63C9276%7D

WASHINGTON (MarketWatch) -- The Bush administration is considering giving individual taxpayers rebates to encourage spending and and granting tax breaks for businesses to spur investment, The Wall Street Journal reported Wednesday.

Talk of a stimulus package has taken on greater urgency in recent days. It's expected that President Bush would unveil the details of such a package when he delivers the State of the Union speech to Congress on Jan. 28.

Coming to grips with recession fears and a shaky stock market, the White House is assessing such options as a tax rebate of perhaps $500 for individuals, the Journal said, citing people familiar with the matter. This would be similar to the tax-relief measures that the adminstration pursued when the economy was in recession early in Bush's first term.

To date, Bush has limited himself to addressing the wave of home foreclosures and the economic turmoil that has spilled over from last year's collapse of the subprime-mortgage market.

...more...

[jwirr]

24. This will not work any better than the tax cuts if the recipients just go

out and invest in foreign markets. Knowing *ss he will only send rebates to the high income groups. If it were to go to the poor at least they would pay bills and buy necessities.

[Danascot]

42. Since everything Chimpy

has ever touched turns to shit, except for folks of "his base" in the income stratosphere, I'm deeply suspicious of any Chimp proposals for rescuing the economy.

[AnneD]

22. Morning Marketeers....

:donut: and lurkers. Well folks around here are shocked, shocked I say to find out that our District Attorney Chas. Rosenthal (R) had 'disturbing' e-mails displaying 1)a more than passing affection for his secretary, 2)sexist, and 3)racist overtones. There is also a little bit of an impropriety about using city workers to maintain his re-election web site on city time.

Am I being too sarcastic to ask for a show of hand from folks that are surprised by this? Well, he has dropped out of the race and everyone in the GOP is running for cover. This all came to light during a federal investigation of a wrongful arrest lawsuit. Gee, I wonder if this explains the pattern of prosecutions we have......humm. Could it be.....nah. This is America.

Well, I hope the GOP has their ass handed to them on a platter for the the rest of my lifetime and my daughter's too. I am for making the party so small you could drown it in the bathtub. Gee-where have I heard that before.

I think that is why the voter turn out has been so heavy as of late. Maybe folks will start paying attention.

Happy hunting and watch out for the bears.

[UpInArms]

23. hiya AnneD!

my - what a long strange ride it has been, huh?

Personally, I am hoping that this country's collective amnesia is at an end and no one will ever forget the absolute corruption that runs from top to bottom of the GOP and that their party is over forever.

On the day of its death, I shall raise my glass high.

[AnneD]

28. I'm with you girlfriend....

:toast:. We'll take turns holding each other's purses while we bitch slap them.

What is killing me here is that our local Snews is acting so surprised about all of this and are puffing up in righteous indignation. What's that line that Shake spear said-full of sound and fury, signifying nothing.:eyes:

[JNelson6563]

37. haha I love you guys!

We'll take turns holding each other's purses while we bitch slap them.

I'm in. :toast:

Julie

[Roland99]

50. Hey! What do we males get to beat them with???

;)

[TalkingDog]

61. While alive, my mom would've suggested her favorite threaten weapon of choice.....

A shitty stick.

I don't know if they have that expression in your neck of the woods, but here it's a fairly common expression of exasperation: I'd like to beat X with a shitty stick!!

It never occured to me until well into adulthood how utterly disgusting I should find that notion. But since I grew up hearing it.....

But yeah, have fun. Beat him and the whole crew with more shitty sticks than you can shake a stick at.


My Favorite Master Artist: Karen Parker GhostWoman Studios

[AnneD]

68. I love that expression....

need to add that to my repertoire. Instead of ponies for everyone-I could go for a shitty stick...it's the one beside the ugly stick. :rofl:

[Hugin]

33. Morning AnneD...

:hangover:

Long time, no see! :hi:

Sorry I missed the Elvis Birthday SMW Special yesterday... So, I'll celebrate today! :party:

[AnneD]

39. Elvis isn't dead....

He just went home....(MIB):spray::party:

[Hugin]

34. "Katrina victim sues U.S. for $3 quadrillion"

IMHO... The bathtub drowning of the GOP began with this particular tub.

"Federal government hit with 489,000 damage claims after hurricane"

AP

"updated 7:15 a.m. MT, Wed., Jan. 9, 2008
NEW ORLEANS - Hurricane Katrina's victims have put a price tag on their suffering and it is staggering — including one plaintiff seeking the unlikely sum of $3 quadrillion.

The total number — $3,014,170,389,176,410 — is the dollar figure so far sought from some 489,000 claims filed against the federal government over damage from the failure of levees and flood walls following the Aug. 29, 2005, hurricane.

Of the total number of claims, the U.S. Army Corps of Engineers said it has received 247 for at least $1 billion apiece, including the one for $3 quadrillion."

[DemReadingDU]

36. That's a lot. But...

If this government weren't wasting 12 billion in Iraq every month, there might be enough to help these people.

[Hugin]

38. I heartily agree.

:D

[UpInArms]

3. No reports today.

[UpInArms]

4. Oil Prices Rise to Near $97 a Barrel Ahead of US Fuel Supply Data

http://biz.yahoo.com/ap/080109/oil_prices.html

VIENNA, Austria (AP) -- Oil prices rose Wednesday amid expectations a U.S. government report will show crude oil stockpiles fell last week.

Prices were also supported by fears of broadened violence in Nigeria, the world's eighth-largest oil producer.

Analysts surveyed by Dow Jones Newswires predict crude inventories likely fell 800,000 barrels last week, while supplies of distillates, which include heating oil, likely fell 300,000 barrels. The U.S. Energy Department's Energy Information Administration will release the report later Wednesday.

"That would be the eighth consecutive week of crude oil stock draws and U.S. crude oil inventories are already below the five year average for this time of the year," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

Light, sweet crude for February delivery added 70 cents to $97.03 a barrel by noon in Europe in electronic trading on the New York Mercantile Exchange. The contract rose $1.24 to settle at $96.33 a barrel on Tuesday. Oil was also being supported by a surge in the price of gold, analysts said. Gold futures surged above $880 an ounce Tuesday to their highest level ever, not accounting for inflation.

"Part of the recovery of oil yesterday and this morning is due to fresh investor funds coming into oil and commodities," Shum said.

...more...

[Roland99]

26. U.S. crude inventories fall 6.8 mln barrels

U.S. crude inventories fall 6.8 mln barrels
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC550B404%2DAA46%2D4221%2D9CFB%2D3E497F8951AA%7D&siteid=mktw

[UpInArms]

35. Crude reverses losses, gaining 62 cents on inventories drop

11. Crude reverses losses, gaining 62 cents on inventories drop
11:04 AM ET, Jan 09, 2008 - 1 hour ago

12. U.S. gasoline inventories up 5.3 mln barrels in latest week
10:31 AM ET, Jan 09, 2008 - 1 hour ago

13. U.S. distillate stocks up 1.5 mln barrels in latest week
10:31 AM ET, Jan 09, 2008 - 1 hour ago

14. U.S. crude inventories down 6.8 mln barrels in latest week
10:30 AM ET, Jan 09, 2008 - 2 hours ago

[TrogL]

70. CBC drivein show was talking about oil prices

The point they were making was about $100 oil. A few weeks ago one guy bought one small future just to be iconoclastic. The real fun will be when a bunch of people are buying lots of $100 futures.

[UpInArms]

5. Poorer Countries to Offset US Slowdown

http://biz.yahoo.com/ap/080109/world_bank_economic_prospects.html

SINGAPORE (AP) -- Continued robust expansion in developing countries will help offset a slowdown in the United States this year amid concerns of a possible recession in the world's largest economy and oil prices will gradually decline, the World Bank said Wednesday.

The Washington, D.C.-based international bank forecast global growth to moderate to 3.3 percent this year from 3.6 percent in 2007.

"Developing countries, if you add them all up now, are basically the same size as the United States," said Hans Timmer, co-author of the bank's annual "Global Economic Prospects" report.

"But they are growing more than three times as fast, and that means that their contribution to global demand is more than three times as important as the contribution of the United States," he said at the launch of the report in Singapore.

Not only has the resilience of developing economies mitigated the slowdown in the U.S. economy, it has also helped reduce global trade imbalances by sucking up American exports with the help of a cheaper U.S. dollar, he said.

The bank said there were concerns that a faltering U.S. housing market or further financial turmoil could push the U.S. into recession and weaken demand for the products of developing countries.

...more...

[UpInArms]

6. dollar watch

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

Last trade 76.240 Change +0.135 (+0.18%)

Carry Trades: Headed for More Losses?

http://www.dailyfx.com/story/bio1/Carry_Trades__Headed_for_More_1199830251562.html

The Dow plummeted 238 points today, triggering a major turn in carry trades. For carry trades to thrive, central banks need to be raising interest rates, volatility needs to be low, traders need to be optimistic and risk appetite needs to be strong. Unfortunately, this does not describe today’s market environment. Over the past few months, many of the major central banks have lowered interest rates for the first time in years. The world is embarking on a major easing cycle which will contrast sharply with the global tightening cycle that lasted from 2004 to 2006. Volatility has also rebounded from its record lows while risk appetite has plunged. Part of the reason why carry trades continued to weaken is because traders expect global growth to slow even further. As the US flirts with recessionary conditions, the chance that the Federal Reserve will ease interest rates by 100bp is continuing to rise. At best for carry bulls, the Fed will ease by 50bp this year. At worst, they will ease by 125bp. Either way more easing is a necessity and this dynamic will make it difficult for carry trades to rally. The Dow broke a significant support level when it closed near its intraday low. It is realistic to expect at least another 100 point in losses which would take the index to its August lows. If the Dow to continues to sell-off, we will see further weakness in carry trades. Find out whether our DailyFX readers think that the Carry trade is a Buy or Sell and vote for yourself.

<snip>

More Reason to be Worried about the US Dollar
After a brief recovery, dollar weakness continued as incoming economic data gave the market more reason to be cautious about the outlook for the US economy. Pending home sales fell 2.6 percent in the month of November which suggests that difficult times lie ahead for the housing market. With the exception of the South, contracts to buy previously owned homes dropped across the country. Tack on a sharp rise in consumer borrowing to pay for holiday purchases and there is good reason to believe that the US economy will continue to suffer. Retail sales are the key because steady consumer spending will give the Federal Reserve the flexibility to ease rates by only 25bp. If consumer spending buckles, the central bank will have no choice but to bow to market pressures and ease more aggressively by cutting interest rates 50bp. According to the comments by Fed Presidents Plosser and Rosengren, inflation remains a concern but the outlook for the US economy depends on housing. If the downturn escalates, expect widespread ripple effects.

...more...

Pound at 9 Months Lows - What if BoE Does Not Cut?

http://www.dailyfx.com/story/bio2/Pound_at_9_Months_Lows_1199879370489.html

The pound hit 9 month lows in overnight trade on growing fears that a slowdown in UK economy will force the BoE to make preemptive rate cuts at tomorrow’s meeting of the Monetary Policy Committee. At present, the consensus call in the currency market is for rates to remain steady at 5.50%. But, a recent string of weak housing and consumer data including tonight’s 10 month low in UK consumer confidence suggests that UK monetary authorities may choose to take a proactive approach to policy in order to counteract any rapid deceleration in growth.

Certainly, the opinion of the market is that the BOE will cut. As a result cable has been the weakest major against the greenback over the past month and hit a lifetime low against the euro in overnight trade, coming within a point of the 7500 figure. But what if the BoE decided to leave rates unchanged?

Despite the clearly deteriorating housing market and the slowdown in manufacturing, gauges of UK service activity actually surprised to the upside in December printing at 52.4 – comfortably above the 50 boom/bust line. Furthermore money supply continued to expand at an alarming double digit pace recording a gain of 11.7% against forecast of only 11.1%.

Given the generally hawkish posture of BoE Governor Mervyn King, UK central bankers may choose to wait another month for further confirmation of economic weakness before enacting any changes. Yet even if the BoE decides to remain pat the pressure on the pound is likely to persist as the market is now convinced that easing is no longer a matter of if but a question of when. Still, having become so grossly oversold on the crosses, cable is due for a bounce. If BoE chooses to remain neutral tomorrow it may provide the catalyst for a retrace rally.

...more...

[Demeter]

9. "Maybe Longer Than a Week"

I'm just hoping it isn't the rest of my life...

What a perfect commentary on our times in one little sketch!

[TalkingDog]

12. Back when I started catching a whiff of the headwinds, I told the Spousal Unit

Well, it looks like the enconomy might pull out of this by the time we are eligible to retire.

But since the likelyhood of their being any SS, Medicaid or Medicare available then....... we might bucking the trend and taking a "late" retirement.


My Favorite Master Artist: Karen Parker GhostWoman Studios

[UpInArms]

10. Loss Mounts for KB Home, and Builder Warns of More Distress Ahead

http://www.nytimes.com/2008/01/09/business/09home.html?ex=1357534800&en=d264e35e3646d20a&ei=5088&partner=rssnyt&emc=rss

LOS ANGELES (AP) — KB Home, the large home builder, said on Tuesday that its fourth-quarter loss swelled as the housing slowdown led to fewer sales and lower revenue. As a result, the company booked charges related to a write-down of unsold inventory and a tax allowance.

Its shares tumbled $1.70, to close at $16.78.

The chief executive, Jeffrey T. Mezger, warned in a statement that 2008 would be “another tough year for the home building industry.”

The sector has been struggling through a slowdown and a tight credit market prompted by last summer’s jump in defaults and foreclosures on subprime home loans made to people with credit problems.

That has left many would-be buyers reluctant to enter the market until signs of improvement emerge. Many other buyers, meanwhile, have been unable to get financing because lenders stung by rising loans gone bad have tightened qualification criteria.

Mr. Mezger said in a conference call with analysts that there were no indications that housing markets were stabilizing and noted that consumer confidence needed to be restored before things could improve.

...more...

[UpInArms]

11. Lender (Countrywide) Tells Judge It "Recreated" (fabricated) Letters

http://www.nytimes.com/2008/01/08/business/08lend.html?em&ex=1200027600&en=36f2e6f7d9f90b32&ei=5087%0A

The Countrywide Financial Corporation fabricated documents related to the bankruptcy case of a Pennsylvania homeowner, court records show, raising new questions about the business practices of the giant mortgage lender at the center of the subprime mess.

The documents — three letters from Countrywide addressed to the homeowner — claimed that the borrower owed the company $4,700 because of discrepancies in escrow deductions. Countrywide’s local counsel described the letters to the court as “recreated,” raising concern from the federal bankruptcy judge overseeing the case, Thomas P. Agresti.

“These letters are a smoking gun that something is not right in Denmark,” Judge Agresti said in a Dec. 20 hearing in Pittsburgh.

The emergence of the fabricated documents comes as Countrywide confronts a rising tide of complaints from borrowers who claim that the company pushed them into risky loans. The matter in Pittsburgh is one of 300 bankruptcy cases in which Countrywide’s practices have come under scrutiny in western Pennsylvania.

Judge Agresti said that discovery should proceed so that those involved in the case, including the Chapter 13 trustee for the western district of Pennsylvania and the United States trustee, could determine how Countrywide’s systems might generate such documents.

...more...

[Hugin]

30. *tsk*

:nodshead:

And these clowns are still in business and listed on the stock market... Oh, and there's those who advocate
bailing them out.

Now they're just making shit up.

[TalkingDog]

13. Up today or Down?

I'm flipping a coin before I'm outta here.........

And it's......UP!


Hey, looks like a fun time today. Have a blast with those rambunctious ponies. I'll peek in later.


My Favorite Master Artist: Karen Parker GhostWoman Studios

[Roland99]

14. Right now, futures say it's BOTH!

S&P 500 -2.40 1394.60
NASDAQ -8.00 1920.50
Dow Jones +23.00 12674.00

[Roland99]

15. 9:44am - Sucker rally forming off the coast...almost a Cat 1.

Dow 12,663.45 74.38
Nasdaq 2,456.88 16.37
S&P 500 1,396.29 6.10
10 YR 3.81% -0.03
Oil $95.80 $-0.53
Gold $880.00 $-0.30

[UpInArms]

18. Goldman Sachs sees fed funds cut to 2.5% by year end

08. Goldman Sachs sees fed funds cut to 2.5% by year end
9:08 AM ET, Jan 09, 2008 - 42 minutes ago

09. Goldman Sachs sees jobless rate rising to 6.25% by year end
9:08 AM ET, Jan 09, 2008 - 42 minutes ago

10. Goldman Sachs economists forecast U.S. recession this year
9:05 AM ET, Jan 09, 2008 - 45 minutes ago

[UpInArms]

19. Goldman Sachs sees recession this year

http://www.marketwatch.com/news/story/goldman-sachs-sees-recession-year/story.aspx?guid=%7B958F9640%2D9AD3%2D44A1%2DAA2B%2DE0097C111D3F%7D

WASHINGTON (MarketWatch) -- Add Goldman Sachs' economists to the list of forecasters predicting a recession in the U.S. economy this year. Goldman Sachs chief economist Jan Hatzius said he now expects a mild recession lasting two or three quarters this year, with a cumulative drop in gross domestic product of about 0.5%. "The latest data suggest that recession has now arrived, or will very shortly," Hatzius wrote in a note to clients Wednesday. The Goldman economist expects the jobless rate to rise from 5% to 6.25% by the end of the year. The Federal Reserve is likely to cut its overnight lending rate target from 4.25% to 2.5%, Hatzius said. He expects consumer spending to decline for the first time since 1991.

1991 .... mmmm..... :think: Poppy!

[Demeter]

32. Like That's Going to Make Anything Better

Why not a tax increase on those with wealth? That would take care of a bunch of problems.

[DemReadingDU]

43. Recession may already be here

The world knew yesterday, now they tell us :crazy:

1/9/08 at 2:29pm
Economists shift from wondering if there will be a recession to asking if the U.S. economy has already shifted into reverse.

NEW YORK (CNNMoney.com) -- The question for many economists is not if the U.S. economy will fall into a recession. It's whether it already has.

The formal recognition of a start of a recession probably wouldn't come for at least six months if not more than a year, as official judges from the National Bureau of Economic Research (NBER) pour through various economic readings.

But top economists from two of the major Wall Street firms - Merrill Lynch and Goldman Sachs - say recession is already here.

The tipping point for both economists was the report released last Friday that showed a sharp jump in the unemployment rate in December, coupled with little growth.

"Friday's employment report strongly suggests that an official recession has arrived," wrote David Rosenberg, North American economist for Merrill, in a note this week entitled "Recession a reality."

more...
http://money.cnn.com/2008/01/09/news/economy/recession/index.htm?postversion=2008010914

edit to complete a sentence

[Hugin]

48. Ironically enough... It turns out that the head of the NBER and the father of the last tax thingie.....

In 2001 were the SAME PERSON! Imagine that! :eyes:

Will the con incidences never cease!

AND! AND! AND! It's the NBER who decides if we're in a recession or not!

"Father of Bush tax cuts: Recession likely"

NEW YORK (CNNMoney.com) -- Martin Feldstein, the Harvard economist credited with being one of the fathers of the Bush administration tax cuts, says the U.S. economy is now likely to slip into a recession, and that avoiding one will take a new round of tax cuts and interest rate cuts from the Federal Reserve.

Feldstein is president and CEO of the National Bureau of Economic Research (NBER), the organization charged with determining when the economy is in a recession and when it is growing. He told CNNMoney.com that he had thought the chance of a recession was about 50-50 even before last week.

But he said he now believes a recession is likely, as he pointed to both a report from the Institute of Supply Management showing manufacturing activity in decline for the first time in almost a year, and Friday's December jobs report that showed a jump in the unemployment rate to a two-year high."

http://money.cnn.com/2008/01/07/news/economy/feldstein/?postversion=2008010718

[DemReadingDU]

56. It would be funny

but for the fact so many people are going to be affected in the worse way.

[Hugin]

59. I have a feeling he's the reason for the "Jobless Recovery" we never experienced...

in 2003.

I've been saying all along we've been in a recession since 2001. Maybe not in an official numerical market indicator
sense, but, a real 'grass-roots' recession.

The only difference is that now due to 'Trickle-up' (a term I coined! :D ) the folks at the top of the pyramid are
feeling the pinch... So, now it's a crisis. :eyes:

But, it's been with us all along. Papered over for a time with pretty talk and double speak.

The core reasons for this recession being... Deficit Spending, Energy Costs, and Outsourcing.

Oh, and as I've heard others here on the SMW say, it's the greatest transfer of wealth in the history
of the Universe. Possibly, several Universes. (But, they may have been exaggerating a mite.)

[DemReadingDU]

62. Trickle-up

good one


and spend, spend, spend.

[AnneD]

66. Jobless Recovery.....

Is that analogous to a sexless orgasm? I'm trying to get a handle on this.:snicker:

[Hugin]

67. From what I gather and my walnut sized brain can process... Yes,

a 'Jobless Recovery' = 'Sexless Orgasm'.

Believe me... We've got our best researchers on it! :rofl:

[AnneD]

69. Prag...

is that literally or figuratively?

See, the jokes just write themselves....I heard one of the striking writers from The Daily Show say that it just kills him to read the newspaper these days. That is one picket lines I'd pay to walk.

[AnneD]

29. Instead of giving ponies....

we should getslickers and a sturdy umbrella. Talk about shit storms.x( :hide:

[UpInArms]

16. 9:45 EST and ponies for everyone!!

Dow 12,656.05 66.98 (0.53%)
Nasdaq 2,455.92 15.41 (0.63%)
S&P 500 1,395.29 5.10 (0.37%)
10-Yr Bond 3.808% 0.032

NYSE Volume 360,077,281.25
Nasdaq Volume 157,104,890.625

09:35 am : Despite the S&P 500 dropping 26 points yesterday, and shedding 5.3% in 2008, the stock market was not able to muster much of rebound at the open. The S&P is trading slightly lower, but is basically unchanged.

Stocks were set for a modestly higher open on news that Dow Component DuPont (DD) raised its earnings guidance for 2007 and 2008.

However, economic concerns again weighed on traders, after Goldman Sachs said the U.S. is likely in a recession or will be there shortly. Goldman's economist said the data over the last few weeks pushed them over the edge, noting the increase in the unemployment rate.

In other news, MBIA (MBI) announced it is cutting its dividend to $0.13 from $0.34 and is offering a $1 billion surplus note offering. Fitch Ratings said if the offering is successful, it will retain its credit rating on MBIA.DJ30 +13.41 NASDAQ -2.69 SP500 -1.07

09:14 am : S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: -1.0.

[UpInArms]

17. Mortgage applications soar as rates plunge: MBA (all in the refi's)

http://www.reuters.com/article/bondsNews/idUSNAT00359620080109

NEW YORK (Reuters) - Applications for home mortgages jumped to their highest in a month last week as concerns about economic recession pushed interest rates for fixed rate mortgages to their lowest in more than two years, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity rose 32.2 percent to 706 in the week ended January 4.

It was the highest level of activity since the first week of December 2007, rising as the average 30-year fixed mortgage rate eased by 0.32 percentage point to 5.73 percent, MBA data showed.

<snip>

The MBA's seasonally adjusted index measuring applications to refinance loans fueled the rise, soaring 53.9 percent to 2,494.2. The MBA's index of purchase applications increased 14.7 percent to 414.0.

...more at link...

[UpInArms]

21. MBIA slashes dividend by 62% to preserve capital

http://www.marketwatch.com/news/story/bond-insurer-mbia-slashes-dividend/story.aspx?guid=%7BD1EF156C%2DDF84%2D4219%2D9BE0%2D8C927757E60D%7D

NEW YORK (MarketWatch) -- MBIA Corp. is cutting its quarterly dividend by 62% as part of a plan to preserve capital and maintain it's all-important AAA credit rating, the bond insurer said Wednesday.

The AAA rating's been jeopardized by subprime-related damage to its balance sheet.

The Armonk, N.Y.-based company (MBI: 14.07, +0.08, +0.6%) said that it's aiming to save about $80 million a year and that it expects that it will incur a total of $737 million in loss and loss-adjustment expenses for the fourth quarter.

MBIA's dividend had been paid at a quarterly rate of 34 cents a share, but that's now been reduced to 13 cents a share.

"We are committed to the successful implementation of this comprehensive plan to significantly strengthen our capital position and secure our Triple-A ratings without qualification," said Gary Dunston, the company's chief executive, in a press release.

...more...

[Mojorabbit]

25. Paulson pessimistic over housing

Paulson pessimistic over housing
By Krishna Guha in Washington

Last updated: January 9 2008 01:59

There is “no evidence” the US housing market is bottoming out, Hank Paulson, Treasury secretary, said on Tuesday, offering a sober view of US economic prospects.

snip

Paulson asked Mr Feldstein – who is calling for this approach – whether a triggering mechanism would provide a quick enough boost to the economy if it were needed.

Mr Feldstein said a conditional stimulus plan would “itself be a boost because people would have confidence that if the economy starts to slide there would be that fiscal package there to turn things around”.

The Treasury secretary kept quiet on the administration’s own thinking on a fiscal stimulus, saying only that “we are thinking through options right now”.

Mr Paulson’s comments came as minutes from the Federal Reserve showed that the regional Fed banks had widely differing views on monetary policy at the time of the last discount rate ­discussion. Three of the regional Feds signalled their desire for aggressive easing by requesting a 50 basis point cut in the discount rate, while two – Dallas and Kansas City – asked for no discount rate cut at all.

Charles Plosser, the hawkish president of the Philadelphia Fed, on Tuesday appeared to soften his position, acknowledging that if incoming data suggested that economic weakness was going to be “more prolonged than expected” this could require “further adjustments to policy” – code for further rate cuts.

But he warned: “I am concerned that developments on the inflation front will make the Fed’s policy decisions more difficult in 2008.”

Mr Paulson said the housing market decline “has ­further to run”. With 1.8m mortgages due to reset over the next two years, he said the administration was thinking about trying to extend its plan to offer mass loan modifications from subprime borrowers – some of whom will have their rates frozen for five years under the existing plan – to regular prime borrowers as well.

“One thing we will consider ... is maybe expanding this beyond the subprime borrowers to other borrowers,” Mr Paulson said.

The mortgage securitisation industry lobby group indicated that it could be open to expanding the standardised approach.
more at link
http://www.ft.com/cms/s/0/cb92d38e-be07-11dc-8bc9-0000779fd2ac,s01=1.html

[Doctor_J]

27. How does Chimp's plan to again cut governmnet revenue from the hyper-rich help this?

Is Bill Gates going to by 5 more mansions and personally end the housing collapse? I am just a mathematician, and don't understand Smirky's high-level economic brilliance.

[AnneD]

31. Must be that...

high powered Harvard MBA math. I am embaressed enough that he pretends to be from Texas. I'd die if I went to a school that "educated" that bozo.

[Roland99]

40. 1:29pm - Post-Lunch doldrums.

Dow 12,567.20 -21.87
Nasdaq 2,427.60 -12.91
S&P 500 1,387.36 -2.83
10 YR 3.78% -0.06
Oil $97.70 $1.37
Gold $882.50 $2.20

[burf]

41. Probably all downhill from here! n/t

[bain_sidhe]

44. Do Over?

Looking at the OP, I can't help noticing that the S&P is within striking distance of its close on the day Bush took office... and the Dow Jones isn't far off, either. Nasdaq is already below its close on that date. So... wouldn't be interesting if, when Bush leaves office, *all* the major indices were at or below where they were when Bush took office.?

It's kinda like a do-over, just erasing the last 8 years... except, of course, due to inflation, we're not *really* in the same place we were when he started.

[specimenfred1984]

45. Amazing late day recovery, intervention, manipulation: you decide.

http://finance.yahoo.com/q/bc?s=%5EGSPC&t=1d


This might have something to do with it although the source is suspect:

--- Bush convenes Plunge Protection Team

Bears beware. The New Deal of 2008 is in the works. The US Treasury is about to shower households with rebate cheques to head off a full-blown slump, and save the Bush presidency. On Friday, Mr Bush convened the so-called Plunge Protection Team for its first known meeting in the Oval Office. The black arts unit - officially the President's Working Group on Financial Markets - was created after the 1987 crash.---

http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=A1YourView&xml=/money/2008/01/07/ccview107.xml

[Roland99]

46. 3:15pm - Shining up a turd.

Dow 12,655.16 66.09
Nasdaq 2,454.34 13.83
S&P 500 1,399.56 9.37
10 YR 3.79% -0.05
Oil $95.65 $-0.68
Gold $881.70 $1.40

Dupont issued a bump up in expected 2008 earnings on *overseas* sales. Gee, wonder why. Wouldn't be because the dollar is in the crapper, would it?

naaaaaaah

[Hugin]

47. Haha!

Thanks for using one of my all time favorite expressions. :D

But, everyone knows you can't polish a turd! :crazy:

Hey! Didja hear! All us 'mercans are gunna get Five Hunnert dollahs frum the gubberment... an' if ya hurry
an get hitched to yer sweetie (as long as yer sweetie ain't the same on the lower side as ewe are) yer up for ONE
THOUSAND DOLLARS!

By gum...

FIRE UP THE CIVILIAN CONSUMPTION CORPS! DO IT FOR AMERICA! DO IT FOR THE CHILDREN! DO IT TO SAVE BUSHES LEGACY!

[Roland99]

49. Well, if'n we all go out spend that thar money on more stuff, we'll save 'murika!

So, some pizzas get ordered, a few movies get rented, maybe a new pair of jeans are bought. But then what?


What a fucking DUMBASS idea that is. It didn't work before years ago, why would it work now? Then again, we are dealing with ideologues that live daily by beating their heads against a wall expecting the next hit to not hurt.


BTW, looks like this "rally" might stick:

Dow 12,685.96 +96.89
Nasdaq 2,461.73 +21.22
S&P 500 1,401.87 +11.68
10 YR 3.79% -0.05
Oil $95.67 $-0.66
Gold $881.70 $1.40

[Hugin]

52. So? It's still a turd.

:rofl:

[AnneD]

64. An ifn that...

turd is a stickn-it kent be polished. These folks don't no shit from Shinola.

[Roland99]

51. How about a little real estate levity for all you SMWers!!

Are You Missing The Real Estate Boom? Why Home Values And Other Real Estate Investments Will Climb Through The End Of The Decade —And How To Profit From Them.
http://consumerist.com/342907/economist-publishes-why-the-real-estate-boom-will-not-bust-shortly-before-real-estate-boom-busts

David Lereah was the chief economist for that National Association of Realtors before he left to become an Executive Vice President of Move, INC. During his tenure as chief economist, he published several books. One of them, released in 2005, was titled Are You Missing The Real Estate Boom? Why Home Values And Other Real Estate Investments Will Climb Through The End Of The Decade—And How To Profit From Them. The cover depicted a nice enough looking family staring up at tiny little house that was hovering in the sky above their heads, out of reach, but still tantalizingly close. If only, if only they'd just read Mr. Lereah's book!

According to Lereah, home owners who pay off their mortgages are bad at managing their money and are "very unsophisticated." He told the LA Times in 2005,

"If you paid your mortgage off, it means you probably did not manage your funds efficiently over the years," said David Lereah, chief economist of the National Association of Realtors and author of "Are You Missing the Real Estate Boom?" "It's as if you had 500,000 dollar bills stuffed in your mattress."

When suspicions began to arise that residential real estate was experiencing unsustainable growth and that a correction was inevitable (and disastrous, considering the amount of mortgages that were financed with the assumption that the home owners could sell the house at a substantial profit in only a few years), Mr. Lereah's book was retitled. The new title read Why The Real Estate Boom Will Not Bust—And How You Can Profit From It . That was February of 2006. We think enough time has passed without a title update.

What should Mr. Lereah's book be called now?

"Well, I really meant 'boom' as in 'ka-boom'!"

[Hugin]

53. Great find, Roland99.

:lol:

[AnneD]

65. Sometimes...

the jokes just write themselves.:spray:

[Roland99]

71. And I found this David Lereah Watch blog

http://davidlereahwatch.blogspot.com/


:)

[Hissyspit]

54. Thanks for doing this UpInArms. When does Ozy get back?

[Roland99]

55. As soon as his bits get some byte.

yuk yuk yuk.

[UpInArms]

57. I'm not really certain - was kind of hoping his connection

would heal today ...

If I hear anything, I'll post an update :)

[UpInArms]

58. La La Land loves tax cuts, rate cuts and peppermints

Dow 12,737.01 147.94 (1.18%)
Nasdaq 2,474.55 34.04 (1.39%)
S&P 500 1,409.13 18.94 (1.36%)
10-Yr Bond 3.791% 0.049

NYSE Volume 5,158,580,500
Nasdaq Volume 2,778,118,750

4:15 pm : It was another roller coaster day of trade on Wednesday, with economic concerns once again in focus, but this time stocks ended at their session highs. The major indices closed with significant gains after a late day surge on a sense that the recent selling was overdone. Beaten down sectors financials and tech led the comeback.

Discussion on the economic outlook fueled volatility in Wednesday's trade.

Goldman Sachs said it expects a recession in 2008, citing economic data over the last few weeks led it to this conclusion. On CNBC, the firm's Chief Economist said the U.S. is in a recession or will be there shortly, noting the increase in unemployment. Merrill Lynch and Morgan Stanley have also predicted a recession, according to Bloomberg.com.

St. Louis Fed President Poole painted a more positive picture after he said U.S. economic fundamentals remain strong and 2008 looks to be a year of rising growth. He also noted it is too early to tell if housing problems will push the economy into a recession. He said low inflation expectations give the Fed "breathing room," indicating the Fed may cut interest rates further. He believes it would be a mistake to say that a recession is clearly at hand. Poole was is not a voting FOMC member in 2008, but was in 2007.

In corporate news, MBIA (MBI 13.40, -0.58) announced it is cutting its dividend to $0.13 from $0.34 and is offering a $1 billion surplus note offering. Fitch Ratings said if the offering is successful, it will retain its credit rating on MBIA. It stock finished down 4%, which was well above it lows of the day, when it was down more than 20%.

Dow Component DuPont (DD 44.78, +2.03) lifted its profit forecast for fiscal 2007 and 2008. Investors responded positively to the news, sending shares of the company higher.

All ten sectors finished with a gain. The tech sector provided leadership, which helped the Nasdaq Composite snap an eight day losing streak. Financials (+1.7%) also provided leadership. Telecom (+0.1%) underperformed on a relative basis due to yesterday's consumer weakness warnings from AT&T's (T 39.00, -0.16) CEO.

In commodity trading, crude oil traded in a choppy manner after the government said inventories declined by a larger than expected amount. After several swings, crude finished the day down 78 cents to $95.55 per barrel.DJ30 +146.24 NASDAQ +34.04 NQ100 +2.0% R2K +1.0% SP400 +0.5% SP500 +18.94 NASDAQ Dec/Adv/Vol 1561/1474/2.84 bln NYSE Dec/Adv/Vol 1401/1755/+1.86 bln

3:30 pm : Buyers are coming off the sidelines, sending the major indices to their best levels of the session. Only telecom (-0.3%) remains in negative territory. Tech (+1.8%) is playing a large role in the recent gains as is financials (+1.0%).

There is not a specific headline that accounts for the spike, but there is strength in some of the bigger financial names, including Merrill Lynch (MER 59.73, +1.56) and Morgan Stanley (MS 47.32, +1.19).

Tomorrow, the weekly initial jobless claims and wholesale inventories readings are slated for release. Briefing.com expects jobless claims to tick up to 345K and wholesale inventories to rise 0.4%. Fed Chairman Ben Bernanke is scheduled to talk tomorrow, and investors will be paying close attention to any hints of further rate cuts. DJ30 +84.12 NASDAQ +16.17 SP500 +10.76 NASDAQ Dec/Adv/Vol 1771/1235/2.26 bln NYSE Dec/Adv/Vol 1705/1432/1.47 bln

[TalkingDog]

63. Damn...good coin flip. I think that'll be my new luck penny. n/t

My Favorite Master Artist: Karen Parker GhostWoman Studios

[citizen snips]

72. MGM Mirage Rises After Tender Offer

NEW YORK (AP) -- Shares of MGM Mirage rose Wednesday after the casino operator and the government investment holding company Dubai World announced a cash tender offer to repurchase up to 10 million MGM Mirage shares for $75 to $80 each.

MGM Mirage shares rose $3.81, or 5.4 percent, to $73.79 Wednesday. The stock has traded in a range of $58 to $100.50 over the past year.

MGM Mirage has about 293.8 million shares outstanding.

Calyon Securities Inc. analyst Fritz Owens said in a client note that the tender offer provides proof of a solid partnership between Las Vegas-based MGM and Dubai World, with the relationship giving the casino operator both funding and international ties.

more...
http://biz.yahoo.com/ap/080109/mgm_mirage_mover.html?.v=2

[citizen snips]

73. Sector Roundup: Newspapers, Autos

Among the sector activity stories for Wednesday, Jan. 9, from AP Financial News:

NEW YORK (AP) -- Shares of several newspaper publishers fell to 52-week lows Wednesday as a Goldman Sachs analyst reduced his 2008 ad revenue forecast on economic worries, and named New York Times Co. as one of his least favorite stocks.

NEW YORK (AP) -- At least eight automotive stocks fell to lows of 52 weeks or more Wednesday on worries about a possible recession and lower-than-expected auto sales this year.

http://biz.yahoo.com/ap/080109/sector_roundup_newspapers.html?.v=1

[citizen snips]

74. Outlook Roundup: DuPont, Ruby Tuesday

Among the earnings projection stories for Wednesday, Jan. 9, from AP Financial News:

DOVER, Del. (AP) -- Citing strong fourth-quarter results and prospects for growth in emerging markets, chemical maker DuPont on Wednesday raised its earning outlook for 2007 as well as its profit forecast for 2008.

MARYVILLE, Tenn. (AP) -- Casual dining chain Ruby Tuesday Inc. on Wednesday slashed its earnings guidance for fiscal 2008, saying it expects same-store sales to fall more than it had anticipated.

HOUSTON (AP) -- Men's apparel retailer Men's Wearhouse Inc. on Wednesday chopped its fourth-quarter earnings guidance due to low traffic at stores in the U.S. and Canada

more...
http://biz.yahoo.com/ap/080109/outlook_roundup_dupont.html?.v=3

[citizen snips]

75. Sector Glance: Apple Rises

NEW YORK (AP) -- While most handset stocks declined Wednesday, Apple Inc.'s shares rose after the iPhone maker and the European Union said Apple will start charging consumers in Britain and the rest of Europe the same for music downloads.

Apple charges consumers in Britain about 9 cents more per song compared with prices in countries that use the euro. The company said it has to pay more to record companies in Britain for distribution rights.

In the next six months, Apple will reduce prices on the British iTunes site so they match prices at online iTunes stores in Europe, the company said, and "reconsider" connections with companies that don't lower wholesale prices in the UK during that time frame.

The European Commission said it closed an antitrust probe into iTunes' record label ties and found no evidence any EU laws were broken. The EU said it still has some copyright issues with Apple.

more...
http://biz.yahoo.com/ap/080109/sector_glance_handsets.html?.v=1

[citizen snips]

76. S&P 500 Leaders & Laggards: APOL UIS

NEW YORK (AP) -- Shares of Apollo Group Inc. helped lift the Standard & Poor's index to a higher close on Wednesday, after the education company posted a rise in its fiscal first-quarter profit on an enrollment boost.

The S&P index rose 18.94 points to end at 1,409.13.

Apollo, which operates the University of Phoenix, added $11.05, or 16.2 percent, to $79.16.

VF Corp. forecast 10 percent earnings-per-share growth in 2008, lifting shares of the apparel manufacturer $5.44, or 8.4 percent, to $69.88.

more...
http://biz.yahoo.com/ap/080109/s_p_500_laggards.html?.v=1

[Hugin]

81. "rise in its fiscal first-quarter profit on an enrollment boost"

Sounds like a bunch of people got suckered with the old "Student Loan Scam" to me.

[citizen snips]

77. Nasdaq 100 Leaders & Laggards: APOL VMED

NEW YORK (AP) -- Shares of education company Apollo Group Inc. helped lift the Nasdaq 100 index to a higher close on Wednesday, after posting a higher fiscal first-quarter profit on an enrollment boost.

Apollo, which operates the University of Phoenix, added $11.05, or 16.2 percent, to $79.16.

The index, which includes 100 of the largest nonfinancial securities listed on the Nasdaq Stock Market, rose 38.87, or 2 percent, to 1,949.20. The broader Nasdaq composite rose 34.04 points to 2,474.55.

UAL Corp., which operates United Airlines, rose $1.64, or 6.7 percent, to $26.03, following an upgrade of the airline sector from UBS.

more...
http://biz.yahoo.com/ap/080109/nasdaq_100_laggards.html?.v=1

[citizen snips]

78. Sector Wrap: Oil Shares Rise on Report

NEW YORK (AP) -- Shares of oil and oil service companies rose Wednesday after the U.S. government reported crude inventories fell for the eighth straight week.

The Amex Oil Index, a basket of integrated oil and refining stocks, rose 0.7 percent to 1,505.96. The Philadelphia Oil Service Sector index, which tracks drilling contractors and other oilfield service providers, rose 1.6 percent to 298.99.

Broader indexes also advanced. The Dow Jones industrial average increased 1.2 percent to 12,735.31.

Crude prices rose after the weekly stockpile report from the Energy Department's Energy Information Administration came out earlier in the day, but fell later in the session. Light, sweet crude for February delivery fell 72 cents to settle at $95.61 a barrel on the New York Mercantile Exchange.

more...
http://biz.yahoo.com/ap/080109/oil_sector_wrap.html?.v=2

[citizen snips]

79. Sector Glance: Chips Mostly Down

NEW YORK (AP) -- Shares of major chip companies fell Wednesday, with Advanced Micro Devices Inc. hitting a their lowest point since March 2003 ahead of its fourth-quarter results.

Analysts polled by Thomson Financial expect the Sunnyvale, Calif., company to post a loss of 36 cents per share, which has been plagued in the last quarter by glitches and delays.

While many large-cap tech stocks mounted a late-day rally, it was also a bad day for some microchip testing companies, as analysts saw a difficult market in the coming months.

Shares in testing company Credence Systems Corp. fell for a second day as investors showed little confidence in its ambitious restructuring plan.

more...
http://biz.yahoo.com/ap/080109/chip_stock_glance.html?.v=1

[citizen snips]

80. Gold Surges Near $900 an Ounce

NEW YORK (AP) -- Gold futures approached $900 an ounce for the first time before retreating Wednesday as high oil prices and nervousness about the U.S. economy pushed the precious metal to a record high for a second straight day.

Other precious metals traded mixed, with oil prices falling slightly and agricultural futures down as well.

Gold prices have climbed sharply in the last year, propelled by dollar weakness versus the euro and record-high oil prices -- inflationary signals that often boost the appeal of precious metals as a safe alternative investment.

An ounce of gold for February delivery rose $1.40 to settle at $881.80 on the New York Mercantile Exchange, just beating Tuesday's record closing price. Earlier Wednesday, gold soared as high as $894.40 an ounce -- the highest ever -- before retreating as investors cashed in profits.

more...
http://biz.yahoo.com/ap/080109/commodities_review.html?.v=3

[citizen snips]

82. Nvidia Rises on Analyst Upgrade

NEW YORK (AP) -- Shares of graphics chip maker Nvidia Corp. rose Wednesday after an analyst upgraded the company, citing a favorable stock price and strong graphics chip sales.

Nvidia stock rose $1.42, or 5.2 percent, to $28.89 Wednesday.

American Technology Research analyst Doug Freedman raised his rating to "Neutral" from "Sell" and said investors have already lowered Nvidia's share price to reflect market risks. The stock has lost nearly one third of its value since hitting a high of $39.67 in late October.

However, Freedman said Nvidia shares could ultimately trade lower, and he is waiting further signs of a price shift before buying or selling the stock.

more...
http://biz.yahoo.com/ap/080109/nvidia_mover.html?.v=2