STOCK MARKET WATCH, Friday February 1

[ozymandius]

Source: du

STOCK MARKET WATCH, Friday February 1, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 353
DAYS SINCE DEMOCRACY DIED (12/12/00) 2569 DAYS
WHERE'S OSAMA BIN-LADEN? 2293 DAYS
DAYS SINCE ENRON COLLAPSE = 2254
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 31, 2008

Dow... 12,650.36 +207.53 (+1.67%)
Nasdaq... 2,389.86 +40.86 (+1.74%)
S&P 500... 1,378.55 +22.74 (+1.68%)
Gold future... 928.00 +1.70 (+0.18%)
30-Year Bond 4.35% -0.08 (-1.78%)
10-Yr Bond... 3.64% -0.09 (-2.52%)






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

[Hissyspit]

1. Fortune: The U.S. Can't Dodge A Slowdown

http://money.cnn.com/2008/01/31/news/economy/barr_recession.fortune/index.htm?postversion=2008020104

February 1 2008: 4:17 AM EST
The U.S. can't dodge a slowdown
Plans to stimulate the economy are well-intentioned -- but thanks to pressure on the dollar, they may be doomed.
By Colin Barr, senior writer

NEW YORK (Fortune) -- The government is pulling out the stops to avert a recession this year. But there are signs that a protracted slowdown may be unavoidable - and that efforts to goose the economy may make matters worse.

Since mid-January, public officials have taken extraordinary actions to shore up confidence in the markets and the economy. Fed chief Ben Bernanke cut interest rates twice in the space of just eight days. Treasury Secretary Henry Paulson has thrown his weight behind a bipartisan stimulus plan that would put more than $150 billion in taxpayers' pockets this spring. The creation of that plan, which has yet to be approved by the full Senate, featured the rare spectacle of President Bush and Democrats in Congress actually agreeing on something.

The rate-cutting and stimulus plans aim to keep the U.S. economy from contracting this year. Signs that growth is faltering aren't hard to come by. Just this week, a government report showed that U.S. gross domestic product rose just 0.6% in the fourth quarter, while growth in personal consumption expenditures slowed to 2% from 2.8% a quarter earlier. Meanwhile, the Case-Shiller index of big-city home prices plunged 7.7% from a year ago in December. Companies from shipper UPS (UPS, Fortune 500) to online retailer Amazon.com (AMZN, Fortune 500) and coffee house chain Starbucks (SBUX, Fortune 500) have offered up soft 2008 profit forecasts or set plans to slow their growth as consumers retrench.

It's clear that with food and energy prices rising sharply, many people are having trouble making ends meet - which is why government officials are acting decisively. "I don't think the Senate is going to want to derail that deal," Paulson said of the stimulus plan. "And I don't think the American people are going to have much patience for anything that would slow down the process."

The rush to action suggests time is of the essence. But even with quick action to boost the amount of money floating around the economy, it's far from clear that the government's initiatives can overcome the growth-slowing effects of an overburdened consumer and a capital-impaired banking system. "We're in an unusual situation," says Don Brownstein, chief investment officer at Structured Portfolio Management in Stamford, Conn. He says officials are moving quickly in a bid to limit the damage from the stock and housing bubbles that have distorted the U.S. economy over the last decade. But he cautions that the scale of the stimulus plan, for instance, pales in comparison to the amount of wealth being lost as house prices decline. A 10% decline in house prices, he notes, wipes $1.5 trillion off U.S. household wealth.

MORE

[ozymandius]

2. Market WrapUp: Is the Psychotic Stock Market a Replay of 2000-02?

BY GARY DORSCH

Jesse Livermore, perhaps the greatest trader of all-time, used to say that “the stock market is designed to fool most of the people most of the time.” That certainly seems true today, as the market’s mental state resembles that of a psychotic, subject to radical mood swings, between extreme fear and euphoria. Yet the most important factor that a speculator must control is his emotions.

Livermore, who made $100 million shorting the stock market during the crash of 1929, always considered himself to be a student of the market until his last days. “The market must be studied and learned, not in a casual way, but in a deep knowledgeable way. Like no other entity, the stock market, with all its allure of easy money and fast action, induces people into the foolish mishandling of their money. The reverse of ignorance is knowledge, and knowledge is power,” he said.
.....

The “Plunge Protection Team” wants to prevent a replay of the bear market of 2000-02, when the S&P 500 Index lost half of its value from its peak in March 2000, and ushered in an economic recession in 2002. Recessions in the US economy usually arrive about once every six years. Since the last recession ended in 2002, a downturn in the world’s largest economy is probably due in 2008.

Until now, the biggest threat to US household spending was focused on the slumping housing market, but history suggests consumers can withstand one serious blow to their wealth. But a double-barreled assault can be disastrous, so if the stock market keeps sliding, it would probably tip the economy into recession. The US Treasury won’t start sending out $150 billion of tax rebate checks until June.

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

[Hissyspit]

3. OPEC to Hold Oil Output Amid Cooler Prices

http://news.yahoo.com/s/afp/20080201/bs_afp/opeccommoditiesoilprice_080201095738

OPEC to hold oil output amid cooler prices
by Simon Morgan and Ben Perry
58 minutes ago

VIENNA (AFP) - OPEC was on Friday set to leave unchanged its oil production ceiling, snubbing US demands for a hike, as the cartel looks to support crude prices which have fallen 10 percent since the start of the year.

Saudi Arabia, OPEC's most influential member and the world's biggest producer of crude, said it saw no need to change official output of the Organisation of Petroleum Exporting Countries at its meeting in Vienna.

"Had there been a need to take any measures concerning supply and demand, we would have taken them. But the current situation shows that the market fundamentals are sound," Saudi Oil Minister Ali al-Nuaimi told the pan-Arab daily Al-Hayat in an interview published Friday.

Prices have tumbled since striking a high above 100 dollars at the start of the year owing to fears of a US recession and a global economic slowdown. A US recession would dent demand for crude in the world's biggest energy market and send oil prices sliding further.

Kuwait's acting oil minister, Mohammed Al-Aleem, said Thursday that the 13-member OPEC was "a little worried about the impact of a slowdown or a recession in the United States" on oil prices. "The price, for the time being, has been going a little bit down," he said.

MORE

[Hissyspit]

5. Equities Up on Rio Tinto Deal

http://news.yahoo.com/s/nm/20080201/bs_nm/markets_global_dc

Equities up on Rio deal
By Jeremy Gaunt, European Investment Correspondent
1 hour, 6 minutes ago

LONDON (Reuters) - European shares rose sharply on Friday, driven by news of a U.S.-Chinese stake in mining giant Rio Tinto, while currency and bond markets focused on pending U.S. jobs data as a guide to the state of its world-leading economy.

Chinese aluminum company Chinalco said it had bought a 12 percent stake in Rio Tinto (RIO.L) jointly with U.S. producer Alcoa (AA.N). This lifted the European mining sector and bolstered stock indexes generally. The pan-European FTSEurofirst 300 index was up more than 1.4 percent.

The U.S. jobs data due at 8:30 a.m. EST, however, hovered in the background.

"Later on, top down numbers to be released for the U.S. will be setting the tone ... Obviously the January labor market report will be of most importance," said Heino Ruland, analyst at FrankfurtFinanz.

The non-farm payrolls release is expected to show a median 80,000 new jobs created in the month, compared with 18,000 in December, according to economists polled by Reuters.

Investors will be looking to see whether the data is better or worse than expected in relation to the U.S. economy's slide toward recession. "Anything under 100,000 will fit the macro picture as we know it," said Nomura rate strategist Charles Diebel.

Earlier, Japan's Nikkei index closed down 0.7 percent in part because of position squaring by investors wary of the data.

MORE

[TalkingDog]

32. Damn! should'a bought when I got the buzz.

I had an economics professor who was doing some work at Wake Forest tell me to look into RIO early last year. But I'm just not the gamblin' kind. Trusting random people to work and make money for me is just foreign to my worldview.



My Favorite Master Artist: Karen Parker GhostWoman Studios

[ozymandius]

6. Oil drops further on economic worries

SINGAPORE - Oil prices fell Friday despite expectations that OPEC would decide to maintain its production levels, as worries of a possible U.S. recession weighed on crude futures.

The economic concerns were renewed after the U.S. Commerce Department reported Thursday that consumer spending rose in December by 0.2 percent, the weakest performance since June.

Claims for unemployment benefits in the United States jumped by 69,000 last week, the Labor Department said, more than three times what economists expected.

Light, sweet crude for March delivery lost 72 cents to $91.03 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.

The contract fell 58 cents to settle at $91.75 a barrel on Thursday.

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

[happyslug]

48. March and April are low points in yearly oil prices

Remember we are looking at prices for oil to be delivered in MARCH, which is generally at the end of the Winter heating season but before the switch to Summer driving Season (More heating fuel is made in Winter, more gasoline in Summer, but between those two peak period you have lower oil usage periods, March and April in the spring followed by September and October in the fall).

Thus the price will DROP, for we are looking at oil to be delivered in March (Prices are for oil that will be delivered at least 30 days from today). Thus prices will drop till May when the price will start to go back up again for the Summer Driving Season. Please note this has been the "normal" market for oil for decades. The underlaying base price, i.e. year to year as opposed to month to month, is concern. The concern is that when it comes to Year to Year prices the push is upward.

[Wednesdays]

19. So much for * jawboning OPEC to open up the spigots

“What I think ought to do, is he ought to get on the phone with the OPEC cartel and say we expect you to open your spigots...and, the president of the United States must jawbone OPEC members to lower the prices." --Chimpy, during Campaign 2000

:eyes:

http://www.countercurrents.org/po-pringle280406.htm

[wordpix]

33. Bushworld wetdream: OPEC opens the spigot & drops prices, US Big Oil keeps per gal. price high &

reaps billions. It isn't that far from what's happened in the past 7 yrs.

[UpInArms]

47. Exxon Mobil Posts Record Profits of $40.6 BILLION for 2007

http://apnews.myway.com/article/20080201/D8UHHQH81.html

HOUSTON (AP) - Exxon Mobil Corp. (XOM) on Friday posted the largest annual profit by a U.S. company - $40.6 billion - as the world's largest publicly traded oil company benefited from historic crude prices at year's end.

Exxon also set a U.S. record for the biggest quarterly profit, posting net income of $11.7 billion for the final three months of 2007, besting its own mark of $10.71 billion in the fourth quarter of 2005.

The previous record for annual profit was $39.5 billion, which Exxon Mobil reported for 2006.

With a hat-tip to RedEarth and this DU thread

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3165021

[RUMMYisFROSTED]

54. Can't make a buck at $90 a barrel.

:cry:

[ozymandius]

4. Today's Truckload-o-Reports

12:00 AM Auto Sales Jan
Briefing Forecast 5.2M
Market Expects 5.2M
Prior 5.5M

12:00 AM Truck Sales Jan
Briefing Forecast 7.3M
Market Expects 7.2M
Prior 6.9M

8:30 AM Nonfarm Payrolls Jan
Briefing Forecast 80K
Market Expects 70K
Prior 18K

8:30 AM Unemployment Rate Jan
Briefing Forecast 4.9%
Market Expects 5.0%
Prior 5.0%

8:30 AM Hourly Earnings Jan
Briefing Forecast 0.2%
Market Expects 0.3%
Prior 0.4%

8:30 AM Average Workweek Jan
Briefing Forecast 33.8
Market Expects 33.8
Prior 33.8

10:00 AM Construction Spending Dec
Briefing Forecast -0.5%
Market Expects -0.5%
Prior 0.1%

10:00 AM ISM Index Jan
Briefing Forecast 48.5
Market Expects 48.4
Prior 47.7

10:00 AM Mich Sentiment-Rev. Jan
Briefing Forecast 80.5
Market Expects 79.0
Prior 80.5

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

[UpInArms]

21. U.S. Jan. nonfarm payrolls down 17,000 vs up 85,000 expected

09. U.S. Jan. average workweek falls to 33.7 hours vs 33.8 Dec
8:30 AM ET, Feb 01, 2008 - 8 minutes ago

10. U.S. Jan. average hourly earnings up 0.2%, up 3.7 yr-on-yr
8:30 AM ET, Feb 01, 2008 - 8 minutes ago

11. U.S. Jan. private sector jobs up 1,000 govt jobs fall 18,000
8:30 AM ET, Feb 01, 2008 - 9 minutes ago

12. U.S. Jan. construction jobs down 27,000, factory down 28,000
8:30 AM ET, Feb 01, 2008 - 9 minutes ago

13. U.S. Jan. unemployment rate 4.9% vs 5.0% in Dec
8:30 AM ET, Feb 01, 2008 - 9 minutes ago

14. U.S. Jan nonfarm payroll drop first since Aug. 2003
8:30 AM ET, Feb 01, 2008 - 9 minutes ago

15. U.S. Jan. nonfarm payrolls down 17,000 vs up 85,000 expected
8:30 AM ET, Feb 01, 2008 - 9 minutes ago

[UpInArms]

22. Gold futures up $11 after weaker-than-expected payrolls

02. Gold futures up $11 after weaker-than-expected payrolls
8:34 AM ET, Feb 01, 2008 - 4 minutes ago

[Roland99]

23. Typical liberal media. Focus on the *bad*....

Ya see, gov't shrank! That's a good thing! And 1,000 Americans got a new job last month. That's, like, totally awesome!
.
.
.
.
oh, sorry 'bout that. Was channeling Dana Perino somehow.

[burf]

25. Roland

Snap out of it! The Dana Disease will eat your brain. Try and remember aahhh .... the Bay of Pigs. Maybe that will snap you out of it.

Have a great day!

[Roland99]

45. Pigs? mmmmm... bacon

Ah, that did the trick!

[AnneD]

82. Pigs...mmmm...bacon...

Natures candy;) OOPS-I'll get flamed by PETA now...

[NewYorkerfromMass]

43. Fewer jobs, less money to pay for

all those ARM's. Looks like recession is already here based on those labor numbers.

[UpInArms]

55. 10:00 reports: U.S. Dec. construction spending falls 2.3% year over year

01. UMich Jan. consumer sentiment below 79.0 forecast
10:02 AM ET, Feb 01, 2008 - 1 minute ago

02. UMich Jan. consumer sentiment 78.4 vs 75.5 in Dec.
10:02 AM ET, Feb 01, 2008 - 1 minute ago

03. U.S. Jan. ISM manufacturing index above 47% consensus
10:01 AM ET, Feb 01, 2008 - 2 minutes ago

04. U.S. Jan. ISM manufacturing index 50.7% vs 48.4% in Dec.
10:01 AM ET, Feb 01, 2008 - 2 minutes ago

05. U.S. Nov. construction spending falls revised 0.4%
10:00 AM ET, Feb 01, 2008 - 3 minutes ago

06. U.S. Dec. pvt. residential construction spending falls 2.8%
10:00 AM ET, Feb 01, 2008 - 3 minutes ago

07. U.S. Dec. construction spending falls 2.3% year over year
10:00 AM ET, Feb 01, 2008 - 3 minutes ago

08. U.S. Dec. construction spending falls 1.1%
10:00 AM ET, Feb 01, 2008 - 3 minutes ago

[UpInArms]

64. Gauge of US economy falls, recession looms - ECRI -6 year low

http://www.reuters.com/article/bondsNews/idUSNAT00366320080201

NEW YORK, Feb 1 (Reuters) - A weekly gauge of future U.S. economic growth fell hard and its annualized growth rate plunged to a six-year low, a research group said on Friday, indicating the risk of recession is very high.

The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index fell to 131.1 in the week to Jan. 25 from 135.7 in the prior week, revised down from 135.8.

<snip>

The index's annualized growth rate plunged to minus 7.1 percent from minus 6.0 percent.

"WLI growth has dropped back to the six-year low seen in early January," Achuthan said.

"While the economy and employment did continue to grow through the end of 2007, the window of opportunity to avert a U.S. recession is about to slam shut."

...a bit more at link...

[poppysgal]

100. Where is that compass?

:blush: I don't know my directions, do I go north or south or east or west? I have to admit I am a little concerned.

[UpInArms]

113. hiya poppysgal!

it's good to see you here at the SMW - that compass seems to have its poles all messed up - what should be down is up and visa versa!

:hi:

[poppysgal]

114. stumble along somehow

:hi: you know me I never have known my directions. See you my friend

[ozymandius]

7. Google's earnings miss raises worries

SAN FRANCISCO - Google Inc.'s top executives say all is well at the Internet search leader despite a rare earnings disappointment, but investors are worried something is amiss.

Concerns about how the feeble U.S. economy might affect Google contributed to a nearly 20 percent decline in the company's stock during January.

Now, it looks like February will begin on a sour note. Google shares dropped by more than 6 percent from their Thursday closing price of $564.30 after the company released fourth-quarter results that missed analysts' expectations.
.....

Google earned $1.21 billion, or $3.79 per share, during the final three months of 2007. That's a 17 percent improvement over net income of $1.03 billion, or $3.29 per share, in the same period a year earlier.

It's the first time Google's quarterly profit has climbed by less than 25 percent since the Mountain View-based company went public nearly 3 1/2 years ago.

If not for stock awards given to its employees, Google said it would have made $4.43 per share — a penny below the average estimate among analysts polled by Thomson Financial.

http://news.yahoo.com/s/ap/20080201/ap_on_hi_te/earns_google

[ozymandius]

8. FBI director: mortgage fraud substantial

HONOLULU - FBI Director Robert Mueller said Thursday that the agency is committed to investigating and prosecuting companies involved in mortgage fraud and other violations in connection with home loans made to risky borrowers.

Mueller said probes were being conducted across the country, including in Hawaii, where he stopped on his way back from a trip through Asia.

"There is not a state that does not have some investigation," he told reporters at the FBI office in Honolulu. "It is a substantial problem but we've been through problems like this in the past."

The FBI said Tuesday it was working with the Securities and Exchange Commission to investigate 14 companies, from mortgage lenders to investment banks, for possible accounting fraud, insider trading or other issues connected to subprime mortgage lending.

Mueller declined to identify the companies.

http://news.yahoo.com/s/ap/20080201/ap_on_bi_ge/subprime_mortgages_fbi

[AnneD]

85. The local FBI here.....

are looking for more complaints to be filed during the next round of ARM adjustments.

[ozymandius]

9. Motorola mulls breakup, phone unit sale

CHICAGO - Less than two years past the most successful stretch in its 80-year history, Motorola Inc. is considering a sale or spinoff its now free-falling cell phone business.

Even a breakup of the troubled company may not head off another proxy fight with billionaire financier Carl Icahn.

Motorola, which fought off Icahn's bid for board seats and a drastic overhaul just a year ago, said late Thursday it would consider separating the handset unit from its other two businesses. The announcement drove its shares more than 10 percent higher in after-hours trading and touched off a round of speculation about what form a makeover might take — and whether it can reverse the company's steep slide.
.....

The revised strategy comes just one month after Greg Brown succeeded Ed Zander as CEO and a year and a day since Icahn initiated a proxy fight to shake up a company that was already in the throes of a severe decline in sales and profits. After grabbing world market share of 23 percent in 2006 on momentum led by its Razr phone, the company has lost nearly half that as rivals outpaced it with successful new products.

http://news.yahoo.com/s/ap/20080201/ap_on_bi_ge/motorola_phone_unit

[ozymandius]

10. Nissan's quarterly profit soars

TOKYO - Nissan reported a 26.6 percent jump in October-December profit Friday and kept its full year forecasts as strong sales appeared to quell looming worries about a U.S. slowdown and an unfavorably strong yen.

Profit at Nissan Motor Co., which has an alliance with Renault SA of France, rose to 132.22 billion yen ($1.24 billion) for the fiscal third quarter from 104.46 billion yen the same period the previous year.

Quarterly sales climbed 18.2 percent to 2.770 trillion yen ($26.03 billion), helped by brisk sales of the Rogue crossover vehicle in the U.S.

Earnings at Japan's No. 3 automaker, which also makes the Z sportscar, Altima coupe and Infiniti luxury models, were in line with forecasts, but its bottom line could be endangered in coming months amid worries about slower American consumer spending, the company said.

http://news.yahoo.com/s/ap/20080201/ap_on_bi_ge/earns_japan_nissan

[ozymandius]

11. Bond crisis: Sovereign funds hold their bets

NEW YORK (Fortune) -- Deep-pocketed foreign wealth funds have been more than happy to bail out Wall Street by taking large stakes in important financial institutions that the funds believe cannot fail.

But that has not been the case for bond insurers, a class of once-obscure firms whose fortunes are taking a licking because they insured the mortgage-backed securities that collapsed as a result of the current credit crisis.

The so-called monolines - key players in the financial food chain - are in desperate need of capital. As a testament to how bad their outlook is, funds from Dubai to Singapore seem, for now, unwilling to take the plunge.
.....

The likely reason for the dearth of deals: The companies are too close to collapse. The credit markets see a 40% chance that MBIA, for one, will default on its bonds.
.....

In all of the brouhaha, Warburg Pincus emerged as a lone buyer last December. The private equity firm agreed to inject $1 billion into MBIA (MBI), which broke down to about $31 a share. The stock is currently trading at about $15.

http://money.cnn.com/2008/01/31/news/economy/bond_insurers_sovereign_funds.fortune/index.htm?postversion=2008020105

[ozymandius]

12. Wall Street looks to jobs report

LONDON (CNNMoney.com) -- U.S. stock futures were little changed Friday, ahead of a government jobs report which may offer more clues about whether the economy is headed for a recession.

At 4:36 a.m. ET, Nasdaq and S&P futures were indicating a flat start for the broader market and slight declines for tech stocks. Although futures could easily change direction after the release of the Labor Department's report at 8:30 a.m. ET.

For the record, economists surveyed by Briefing.com expect employers added a modest 70,000 jobs last month, versus the 18,000 jobs added in December.

The payrolls report comes after weekly reading on jobless claims released Thursday jumped unexpectedly, rattling investors already worried about the slowing economy.

http://money.cnn.com/2008/01/30/markets/stockswatch/index.htm?postversion=2008020105

[ozymandius]

13. MBIA: The (Rating) Agency is Not Amused

I should never underestimate the relentless optimism of US equity investors (or perhaps the cleverness of MBIA's flacks picking the middle of the night to release a fourth quarter earnings announcement that fell considerably short of already-low expectations).

Thursday we had the remarkable spectacle of MBIA CEO Gary Dunton making statements that can only be characterized as existing at the outer edge of credulity. As Bloomberg reported:

MBIA Inc. Chief Executive Officer Gary Dunton said the world's largest bond insurer has more than enough capital to keep its AAA credit rating and dismissed speculation the company may go bankrupt.

This is breathtaking, and I am staggered that his attorneys would let him represent anything of the kind. Standard & Poor's and Moody's have said in no uncertain terms that both of the big bond insurers, MBIA and Ambac, need to raise more capital, pronto. Duncan's statement, as far as his standing with the rating agencies is concerned, is patently untrue. And as we discuss later, S&P felt compelled to say as much in short order.

Similarly, New York state attorney general Eric Dinallo has been trying to get a $15 billion industry-wide rescue effort off the ground. The rating agencies were in the early meetings. If they though this initiative was unnecessary, they certainly would have spoken up.

Admittedly, Dunton has to put forward as brave a face as possible. He somehow, against all odds, managed to extract $500 million from a supposedly sophisticated private equity firm, Warburg Pincus. The last thing he can do on the heels of closing the deal is intimate that he sold Warburg Picus a bill of goods.

http://www.nakedcapitalism.com/2008/02/mbia-rating-agency-is-not-amused.html

[DemReadingDU]

46. Eight banks seek rescue plan for bond insurers (MBIA, Ambac)

2/1/08
NEW YORK (Reuters) - Eight banks have formed a consortium to seek a rescue plan for MBIA Inc , Ambac Financial Group Inc and other troubled bond insurers, CNBC said on Friday, citing an unnamed source.

The eight banks include Barclays Plc , BNP Paribas , Citigroup Inc , Dresdner, Royal Bank of Scotland Group Plc , Societe Generale , UBS AG and Wachovia Corp , CNBC said.

Wachovia had no immediate comment. Citigroup, Ambac and MBIA did not immediately return requests for comment. The other banks were not immediately available for comment.

Shares of MBIA rose $2.50, or 16.1 percent, to $18 in trading before the market opened. Ambac rose $2, or 17.2 percent, to $13.64.

a bit more...
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&date=20080201&id=8127219


Umm, aren't some of these banks in financial trouble themselves?

[AnneD]

91. The only things done after midnight are....

executions and crimes:think:

My mom always use to say nothing good ever happens after midnight, that's sooo 2000.

[ozymandius]

14. I don't wanna go. It looks like there will be plenty of excitement today.

Just like most other people - I have a hard time averting my gaze from a train wreck. Or a near-train wreck.

I'll check back in if there's any free time between classes. Have fun watching the drama.

Ozy :hi:

[Hissyspit]

15. CNN Breaking: Microsoft Makes Bid for Yahoo

$44.6 Billion in cash, stock.

[Paulie]

16. That adds a bit of excitement

But it looks like Microsoft is just trying to reduce competition by buying/killing a rival. It's FoxPro all over again (as MS had Access which was going nowhere then out of the blue bought Fox Software for it's DB product)

[UpInArms]

63. DoJ interested in reviewing Microsoft-Yahoo deal: report

01. DoJ interested in reviewing Microsoft-Yahoo deal: report
10:40 AM ET, Feb 01, 2008 - 8 minutes ago

[Roland99]

17. 7:47am Futures are Bright

DJIA INDEX 12,777.00 163.00
S&P 500 1,396.40 16.80
NASDAQ 100 1,875.50 27.75

[Robbien]

20. CNBC says jobs report is a negative 17,000 jobs created in January

but somehow mysteriously the unemployment rate decreases from 5 percent to 4.9%.

[UpInArms]

24. that decrease is due to those people that can't find jobs - well - they don't

count

and how did you like that loss of 17,000 when the ADP boondoggle was touting a 130,000 gain just earlier this week?

here's that ADP spew

http://www.reuters.com/article/domesticNews/idUSWEN365620080130

Wed Jan 30, 2008 10:50am EST

NEW YORK (Reuters) - Private employers added 130,000 jobs in January, about three times the number that economists had been expecting, a report by a private employment service said on Wednesday.

ADP Employer Services, whose employment report was jointly developed with Macroeconomic Advisers LLC, also revised the number of jobs created in December down to 37,000 from the 40,000 initially reported.

The median of estimates from 23 economists surveyed by Reuters was for the ADP report to show 45,000 new private-sector jobs in January.

"It suggests that employment rebounded some in January," said Joel Prakken, chairman of Macroeconomic Advisers, adding "declining house prices and declining stock prices are factors that drag on consumption, but if employment and wages continue to grow it is unlikely that you would see an outright decline in consumer spending," Prakken said.

[Robbien]

27. ADP numbers are political players IMO

The market needed a good number on Wednesday, so ADP obliged.

[UpInArms]

29. so, do you think the market will correct it's mistake

from Wednesday, or will it shine it on like always with the help from the PPT?

[Robbien]

34. The market will be its childishly psychotic self today

It jumped wildly over the Microsoft news and slumped wildly over the jobs numbers.

It is psychotically jittery and I'm not calling nuthin'. Just gonna watch the show.

[UpInArms]

36. well, okay - scoot over

and I'll bring the popcorn

[AnneD]

94. Extra Budda for me....

:popcorn: Man, this stuff is fresh!!!!!I guess I need a :toast:

[burf]

28. Thank goodness for the tubes

They can lie like before, but now they are just getting caught more often. Now if the Corporate Media would just pick up on it, people would be informed. But I guess we can't have that. It makes one think of Winston and the rewriting of history in Orwell's 1984.

[UpInArms]

30. somehow I always think of the sheep from Animal Farm

when I think about the MSM talking heads - they just go out there and say whatever Squeeler wants them to.

:hi:

[burf]

39. Good morning UpInArms

I always get those sheep confused with the ones from the movie "Babe". You know the ones that said "Bah Ram Ewe".

[Maeve]

73. great chart from the Sacramento Bee

[UpInArms]

18. dollar watch

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

Last trade 75.133 Change -0.086 (-0.11%)

On charts, dollar risks sinking under 100 yen

http://www.guardian.co.uk/feedarticle?id=7274078

TOKYO, Feb 1 (Reuters) - The dollar has slumped to a near 3-year low against the yen and technically, worse is in store.

Technical charts point to the risk of the U.S. currency sinking below 100 yen for the first time in more than a decade, perhaps by the end of the year.

Such a slide would highlight a sea change from the yen's weakness and hit Japan's big exporters, hurting their stocks, and possibly prompt government anxiety about the impact on the economy.

The dollar fell to 104.95 yen last week, its weakest since May 2005, after the Federal Reserve's 75-basis-point emergency rate cut. A further lowering of U.S. rates by a half-point this week spells more trouble for the beleaguered dollar.

Technical charts are bearish and analysts say the dollar risks falling below 100 yen for the first time since late 1995.

And rising concerns about a potential U.S. recession and the unwinding of risky carry trades will only push the yen higher.

"I expect persistent and maybe chronic U.S. dollar weakness for the whole of this year," said Nicole Elliott, senior analyst for Mizuho Corporate Bank in London.

The dollar is likely to fall towards 101.50 yen at year-end Elliott said, adding: "I do think there's a real chance that we'll actually dip below 100 yen before then."

...more...

[DemReadingDU]

26. dollar going down $74.849 at 8:54 am

52wk Low 74.484 52wk Low Date 2007-11-23


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

[UpInArms]

38. U.S. jobs fall trims stocks' gains, hurts dlr

http://www.reuters.com/article/bondsNews/idUSL0178915920080201

LONDON, Feb 1 (Reuters) - Surprisingly poor U.S. jobs data trimmed equity gains on Friday and weakened the dollar but stock market sentiment remain strong after Microsoft (MSFT.O: Quote, Profile, Research) said it was buying Yahoo <YHOO.O).

The non-farm payrolls release showed the U.S. economy lost 17,000 jobs in January, compared with a median expectation of 80,000 new U.S. jobs predicted by economists polled by Reuters.

Wall Street futures pointed to a modest start, far less bullish than before the data. The pan-European FTSEurofirst 300 index was up 1.6 percent, down from more than 2 percent earlier.

Equities were being supported by major corporate announcements.

...more...

[citizen snips]

108. Dollar Rises Against Euro, Pound

NEW YORK (AP) -- The U.S. dollar rose Friday against the euro and the British pound, helped by rising stock prices and a modest expansion in the U.S. manufacturing sector despite a weak report on jobs.

In late New York trading, the dollar rose to $1.4803 per euro from $1.4877 per euro late Thursday. The dollar jumped to $1.9677 per British pound from $1.9900 per pound.

The dollar also inched up to 106.47 Japanese yen from 106.43 yen.

The dollar rebounded after an industry group reported U.S. manufacturing activity rose in January and helped galvanize Wall Street. The Institute for Supply Management said Friday its index of manufacturing activity rose to 50.7 from 48.4 in December. Wall Street had expected the figure would come in at 47, which would have indicated a contraction of the manufacturing sector.

more...
http://biz.yahoo.com/ap/080201/dollar.html?.v=5

[DemReadingDU]

31. Whitney: The banks are busted.

1/31/08 America's Teetering Banking System: "Where did all our deposits go?" by Mike Whitney

Just look at these graphs and you'll see what Bernanke saw before he decided to cut interest rates.

Really Scary Fed Charts...
http://benbittrolff.blogspot.com/2008/01/really-scary-fed-charts-why-bernanke.html

The banks are busted.

In the first graph (Total borrowings of Depository Institutions from the Federal Reserve) shows that the banks are capital impaired" and borrowing at a rate unprecedented in history.

The second graph (Non borrowed reserves from of Depository Institutions) shows that the capital that the banks do have is quickly being depleted.

The third graph (Net Free or borrowed reserves of Depository Institutions) is best summed up by econo-blogger Mike Shedlock who says: Banks in aggregate have now burnt through all of their capital and are forced to borrow reserves from the Fed in order to keep lending. Total reserves for two weeks ending January 16 are $39.98 billion. Inquiring minds are no doubt wondering where $40 billion came from. The answer is the Fed's Term Auction Facility. (Mish's Global Economic Trend Analysis; http://globaleconomicanalysis.blogspot.com/) So the only reserves they have is capital they borrowed from the Fed.

The forth Fed graph illustrates the steep trajectory of the ever-expanding money supply. (Monetary base)

A careful review of these graphs should convince even the most hardened skeptic that the banking system is basically underwater and insolvent. We are entering uncharted waters. The sudden and shocking depletion of bank reserves is due to the huge losses inflicted by the meltdown in subprime loans and other similar structured investments.

more...
http://www.informationclearinghouse.info/article19249.htm

[MilesColtrane]

65. I always take Whitney with a large helping of salt.

Banks are certainly losing money quickly, but they're far from "underwater", or insolvent.

As long as some foreigners keep cracking their checkbooks they won't go belly up.

[DemReadingDU]

69. It seems ironic that our U.S. banks

dealing in U.S. dollars for its people who buy necessities with those dollars, end up being owned by entities of foreign countries.

[MilesColtrane]

72. Well, after we've sold them the land, and the companies, what's else is really left?

[DemReadingDU]

74. not much, they'll own us

and we'll be just the slaves

[TalkingDog]

107. Some out there think we already are:

Making no claims for the veracity of the citations as this was emailed to me and I can't find any hard evidence of this particular speech.

http://www.halexandria.org/dward283.htm

I don't know anything about Mr. Traficant or his politics other than the Spousal Unit's assertion that he was an outspoken rabble rouser (not a bad thing necessarily) with a "less than sterling" reputation.


My Favorite Master Artist: Karen Parker GhostWoman Studios

[DemReadingDU]

111. If you saw his hair, you would remember him!

Member of the U.S. House of Representatives from Ohio's 17th District

In office
1985 – 2002

Preceded by Lyle Williams
Succeeded by Timothy J. Ryan

http://en.wikipedia.org/wiki/James_Traficant


edit to add from: http://www.halexandria.org/dward283.htm

Representative Traficant Reports On The Bankruptcy Of The United States, United States Congressional Record, March 17, 1993 VOL. 33, page H-1303

last few paragraphs....

Why don’t more people own their properties outright? Why are 90% of Americans mortgaged to the hilt and have little or no assets after all debts and liabilities have been paid? Why does it feel like you are working harder and harder and getting less and less?

We are reaping what has been sown, and the result of our harvest is a painful bankruptcy, and a foreclosure on American property, precious liberties, and a way of life. Few of our elected representatives in Washington, D.C. have dared to tell the truth. The federal United States is bankrupt. Our children will inherit this unpayable debt, and the tyranny to enforce paying it.

America has become completely bankrupt in world leadership, financial credit and its reputation for courage, vision and human rights. This is an undeclared economic war. Bankruptcy, and economic slavery of the most corrupt order! Wake up America! Take back your country.

******************

and Traficant said that in 1993!

[UpInArms]

35. RPT-US RATE FUTURES-Turn higher on Jan payrolls shock

http://www.reuters.com/article/bondsNews/idUSN0116293120080201

CHICAGO, Feb 1 (Reuters) - U.S. short-term interest rate futures turned higher on Friday after the January payrolls report showed an unexpected decline in jobs growth for the first time since August 2003.

Futures FFJ8 now show an 80-percent chance that the Federal Reserve will slash benchmark rates by another 50 basis points in March, up from 68 percent late on Thursday.

[UpInArms]

42. US RATE FUTURES-Boost 50 bps rate cut bets on jobs shock

http://www.reuters.com/article/bondsNews/idUSN0141037620080201

CHICAGO, Feb 1 (Reuters) - U.S. short-term interest rate futures turned sharply higher on Friday after a shock decline in January payrolls suggested the economy was weaker than expected early in the new year.

Futures FFJ8 briefly ran the implied chances for a 50 basis-point rate cut from the Federal Reserve in March as high as 92 percent versus 68 percent chance late on Thursday.

The Labor Department said U.S. nonfarm payrolls fell by 17,000, against the median forecast for an 80,000 increase.

December payrolls were revised up, however, to 82,000 from the initial 18,000, but estimates for October and November were cut, highlighting how hiring was in decline as 2007 ended.

The average workweek also fell in another sign of potential weakening in labor markets.

"It shows the economy is at a virtual standstill ... clearly the Fed is going to have to continue cutting rates," said Boris Schlossberg, senior currency strategist at DailyFX.com in New York.

...more...

[TalkingDog]

37. Oh....Crap.....

http://www.bloomberg.com/apps/news?pid=20601088&sid=aImBVle3OMyo&refer=muse

From Jan 30.


Barton Biggs has some offbeat advice for the rich: Insure yourself against war and disaster by buying a remote farm or ranch and stocking it with ``seed, fertilizer, canned food, wine, medicine, clothes, etc.''

The ``etc.'' must mean guns.

``A few rounds over the approaching brigands' heads would probably be a compelling persuader that there are easier farms to pillage,'' he writes in his new book, ``Wealth, War and Wisdom.''

Biggs is no paranoid survivalist. He was chief global strategist at Morgan Stanley before leaving in 2003 to form hedge fund Traxis Partners. He doesn't lock and load until the last page of this smart look at how World War II warped share prices, gutted wealth and remains a warning to investors. His message: Listen to markets, learn from history and prepare for the worst.


My Favorite Master Artist: Karen Parker GhostWoman Studios

[MilesColtrane]

66. That's OK.

There's more of us than them, and we're going to have guns too.

[kineneb]

79. But ewwwh gag me, like, out there with all that cow poo?

And no shopping? That is like, so not with it. I might get my new Prada shoes dirty, gag me.


ed to add: typical responce to the "back to the country" suggestions...

[burf]

81. Maybe they can

watch old reruns of "Green Acres" and get some tips from the Douglas family!

[kineneb]

93. Bill Gates, the Hiltons, et al. holding shovels...

discussing their sustainable gardens and composition of the compost pile? Bet they don't even know which end of a cow to milk... how many servants will they need to run these compounds, and how trustworthy will they be?

:rofl: :rofl: :rofl:

[AnneD]

96. And our theme today.....

Green Arces.....

Green acres is the place for me.
Farm livin' is the life for me.
Land spreadin' out so far and wide
Keep Manhattan, just give me that countryside.
New York is where I'd rather stay.
I get allergic smelling hay.
I just adore a penthouse view.
Dah-ling I love you but give me Park Avenue.
...The chores.
...The stores.
...Fresh air.
...Times Square
You are my wife.
Good bye, city life.

[burf]

99. I might be showing

my age, but I remember when that was prime time TV. My dad loved that show. He couldn't believe anyone could be as stupid as Mr & Mrs Douglas.

[DemReadingDU]

40. 900 jobs affected as Dell closes Edmonton call centre

1/31/08
Dell Inc. announced Thursday that it is closing its Edmonton call centre, a move that will affect more than 900 employees.

It's the second time in a week that computer company has announced cuts to operations in Canada. On Tuesday, Dell called off plans to create 1,200 new jobs in Ottawa and instead announced dozens of layoffs at a call centre in that city.

It also comes less than three years after the city lured the call centre with economic concessions.

Employees at the Edmonton call centre were told Thursday that all operations will shut down by May

a bit more...
http://www.cbc.ca/money/story/2008/01/31/delledmonton.html

[DemReadingDU]

41. Business Week: Housing Meltdown

Why home prices could drop 25% more on average before the market finally hits bottom by Peter Coy

Brace yourself: Home prices could sink an additional 25% over the next two or three years, returning values to their 2000 levels in inflation-adjusted terms. That's even with the Federal Reserve's half-percentage-point rate cut on Jan. 30

While a 25% decline is unprecedented in modern times, some economists are beginning to talk about it. "We now see potential for another 25% to 30% downside over the next two years," says David A. Rosenberg, North American economist for Merrill Lynch (MER), who until recently had expected a much smaller slide.

Why might housing prices plunge violently from here? Remember the two powerful forces that pushed them up: lax lending standards and the conviction that housing is a fail-safe investment. Now both are working in reverse, depressing demand for housing faster than homebuilders can rein in supply. By reinstituting safeguards such as down payments and proof of income, lenders have disqualified thousands of potential buyers. And many people who do qualify have lost the desire to buy. "A down market is getting baked into expectations," says Chris Flanagan, head of research in JPMorgan Chase's (JPM) asset-backed securities group. "People say: I'm not buying until prices are lower.'" He predicts prices will fall about 25%, bottoming in 2010.

lots more...
http://www.businessweek.com/magazine/content/08_06/b4070040767516.htm?chan=magazine+channel_top+stories

edit: 5 page article for printing
http://www.businessweek.com/print/magazine/content/08_06/b4070040767516.htm

[UpInArms]

44. 9:35 EST and it's all good where there is no bad news that can't be spun

Dow 12,664.18 13.82 (0.11%)
Nasdaq 2,398.39 8.53 (0.36%)
S&P 500 1,381.92 3.37 (0.24%)
10-Yr Bond 3.563% 0.076

NYSE Volume 147,863,859.375
Nasdaq Volume 236,005,734.375

09:15 am : S&P futures vs fair value: -2.4. Nasdaq futures vs fair value: +8.0. S&P 500 futures now suggest a slightly lower start.

09:01 am : S&P futures vs fair value: flat. Nasdaq futures vs fair value: +3.5. After some choppy action, S&P 500 futures are pointing to a flat start, as traders digest the jobs data. Nasdaq futures are holding a slight gain, but are well off their session high. OPEC decided to keep oil production targets unchanged earlier today. The cartel said there is plenty of oil and expressed concerns that an U.S economic slowdown will lead to lower demand. Crude oil is trading down 0.5% to $91.25 per barrel.

08:35 am : S&P futures vs fair value: +5.9. Nasdaq futures vs fair value: +11.3. Futures drop on a worse than expected jobs report, but still point to a higher start. The Dept. of labor said Jan. nonfarm payrolls fell by 17K, economists expected payrolls to increase by 70K. December payrolls were revised higher to a gain of 82K from 18K, which is helping to offset some disappointment. The unemployment rate fell to 4.9%, which is less than the 5.0% reading economists expected. A CNBC reported earlier this morning that a source told him that eight banks have formed a consortium to work on a rescue plan for bond insurers. In earnings news, Exxon-Mobil (XOM) beat expectations, reportedly making the largest annual profit it in U.S. company history.

[Roland99]

49. Well,hey, Exxon is rolling in our cash...maybe they'll bail the bondsmen.

ha ha ha!

[DemReadingDU]

52. Nah, it's going to be some troubled banks

see above...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3164900&mesg_id=3165100

[Roland99]

60. I just couldn't resist the pun

:-)

[Zynx]

50. Whether economic news is good or bad depends on what narrative the market is operating under.

If we were in an environment where they were expecting 3.5% growth and we had those numbers, you better believe there would be a drop today. However, as the market has already fallen sharply in anticipation of a recession and now the focus is on rate cuts, anything that would spur on rate cuts is taken positively. There's that and the signs of stability in the financial sector.

[UpInArms]

51. yeppers, you're right - and as I posted upthread to burf - it does remind me of Squealer

Squealer: Squealer is an intriguing character in Orwell's Animal Farm. He's first described as a manipulator and persuader. Orwell narrates, "He could turn black into white." Many critics correlate Squealer with the Pravda, the Russian newspaper of the 1930s. Propaganda was a key to many publications, and since there was no television or radio, the newspaper was the primary source of media information. So the monopoly of the Pravda was seized by Stalin and his new Bolshevik regime. In Animal Farm, Squealer, like the newspaper, is the link between Napoleon and other animals. When Squealer masks the evil intentions of the pigs, the intentions can be carried out with little resistance and without political disarray. Squealer is also thought by some to represent Goebbels, who was the minister of propaganda for Germany. This would seem inconsistent with Orwell's satire, however, which was supposed to metaphor characters in Russia.

(although I misspelled his name as "squeeler" earlier)

[Viva_La_Revolution]

53. Schumer is grilling the Commissioner of Labor Statistics now on the Span...

The numbers they're reciting are very sad. :(

[wordpix]

59. I don't know why our Dem candidates aren't equating the econ. turmoil to

the lack of manufacturing and manufacturing jobs. With all these companies cutting jobs, what kind of economy do they think we'll have, rate cuts or none?

I say, rev up the manufacturing to produce solar panels, wind generators and recycled products; stop the war and put that money into our failed infrastructure and public schools, and you'll see the economy roar back.

[AnneD]

97. Because....

they don't represent the middle class anymore?:shrug:

[UpInArms]

56. 10:04 EST Hip! Hip! Hurrah! Recession Rate Cuts For Everybody!

Dow 12,742.54 92.18 (0.73%)
Nasdaq 2,411.90 22.04 (0.92%)
S&P 500 1,390.00 11.45 (0.83%)
10-Yr Bond 3.582% 0.057

NYSE Volume 595,855,250
Nasdaq Volume 589,270,812.5

09:35 am : It was volatile morning, although one wouldn't know by the flat to slightly higher opening to the trading day.

Futures pointed to a uninspired open and then jumped on news on news that Microsoft (MSFT) has proposed to buy Yahoo! (YHOO) for $44.6 billion in cash and stock, or $31 per share. The offer represents a 62% premium over Yahoo!’s closing price yesterday.

The positive sentiment was short-lived, as trader were disappointed by a lower than expected jobs reading. The Dept. of Labor said January nonfarm payrolls fell by 17,000, lower than 70,000 reading economists expected. The number is not as bad at it seems, as December payrolls were revised higher to a gain of 82K from 18K. Also, the number is still less than recessionary levels, when monthly payrolls decline 150,000 to 200,000. The unemployment rate fell to 4.9%, which is less than the 5.0% reading economists expected. DJ30 +7.64 NASDAQ +6.27 SP500 +2.41

Whee!

[UpInArms]

57. Ericsson to cut jobs as profit falls, outlook weakens

http://www.marketwatch.com/news/story/ericsson-cut-jobs-profit-falls/story.aspx?guid=%7B33386531%2D00A1%2D4125%2DBC9C%2D4F54DCF9B31A%7D

LONDON (MarketWatch) -- Ericsson AB, the world's largest provider of mobile networks, reported a sharp drop in fourth-quarter profit on Friday and said it would cut 4,000 jobs globally -- including 1,000 in Sweden -- to rein in costs ahead of a difficult year.

Ericsson lowered its outlook for telecom-equipment demand in 2008 to "flattish" from an earlier estimate of "mid-single-digit growth," but it reiterated that "unchanged industry fundamentals" support a "positive long-term outlook." Ericsson didn't provide more detailed guidance.

Net income in the fourth quarter fell to 5.64 billion kronor ($879 million) from 9.7 billion kronor a year earlier. Sales rose to 54.5 billion kronor from 54.2 billion kronor. The results were in line with consensus forecasts, which had been revised down following the company's repeated warnings.

<snip>

Alcatel-Lucent (FR:013000: news, chart, profile) (ALU) is currently engaged
in a restructuring that will see it shed up to a third of its 80,000-member work force.

...more at link...

[UpInArms]

58. Home Depot to lower 10% of headquarters staff (500 jobs)

http://www.marketwatch.com/news/story/home-depot-lower-10-headquarters/story.aspx?guid=%7BB2D577A3%2DA185%2D4D73%2D9AAF%2D377BDC78AB6A%7D

NEW YORK (MarketWatch) -- Home Depot Inc., the largest U.S. home improvement retailer, said it's cutting 500 of its headquarters staff, or 10%, to lower costs and weather a slowing housing market that has hurt its sales.

The jobs in the Atlanta office, which has 5,000 employees, won't be replaced, spokesman Ron DeFeo said. The affected staff will be paid through April 4. The Atlanta-based company has 350,000 employees with a total of over 2200 stores.
Home Depot shares rose 5.1% in late trading.

Home Depot and rival Lowe's Cos. (LOW: 26.12, -0.31, -1.2%) and others in the home goods sectors have taken a toll from the declining housing markets that have curtailed consumers' shopping appetite and led to both retailers' quarterly profit declines, analysts said. Home Depot has also slowed the pace of its buyback plan and advertising-spending growth.

The company's cutting headquarters staff as it devotes spending first to projects such as improving customer experience, remodeling stores with cleaner floors and better lighting and better showcasing merchandise after Home Depot (HD: 30.41, -0.23, -0.7%) had lost market share to Lowe's and other rivals.

...more...

[Lasher]

61. Great news, the S&P 500's Monday close was higher than it was on January 22, 2001!

Can't set high expectations for this administration, ya know.

Nasdaq is still lower than it was when Junior first took over.

[MilesColtrane]

67. Good news everyone!

[Roland99]

62. 10:44am - The honeymoon's over...

Dow 12,636.87 -13.49
Nasdaq 2,381.37 -8.49
S&P 500 1,378.76 +0.21
10 YR 3.58% -0.06
Oil $90.58 $-1.17
Gold $918.50 $-9.50

[AnneD]

68. Morning Marketeers....

:donut: and lurkers. I am still not 100% but the traffic to the clinic has slowed up.
I haven't felt much like thinking about the economy, and yet, what I have been thinking on directly effects us. I penned a thread today and I will post a link from here. Maybe I had too much cough syrup but I had a idea that I wanted to run by as many folks as can. I'm a big girl and can take my licks if you think it hare brained.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x4331841


Happy hunting and watch out for the bears.

[Left Brain]

70. Piehole alert --

This is front page, MSNBC. No link yet, sorry...

BREAKING NEWS: Bush says there are 'serious signs' the economy is weakening
Top storiesas of 9:03 a.m. Fri., Feb. 1, 2008New York, NY

[DemReadingDU]

71. I saw that, and nothing on any other websites

:shrug:



oops, gone now


:shrug: :shrug:

[Left Brain]

75. I did a printscreen

and copied/pasted it to a Word doc. I don't know how to post it here, though.

Obviously, that little piece of "breaking news" was quickly quashed. "Pay no attention to what's happening behind the curtain..."

[UpInArms]

76. here 'tis - Bush sees 'serious signs' economy is weakening

08. Bush urges Congress to send him economic stimulus package
11:57 AM ET, Feb 01, 2008 - 52 minutes ago

09. Bush says government should help keep people in homes
11:52 AM ET, Feb 01, 2008 - 57 minutes ago

10. Bush sees 'serious signs' economy is weakening
11:51 AM ET, Feb 01, 2008 - 58 minutes ago

[burf]

77. I found this

Bush pressures Senate for economic stimulus deal, calls jobs report "troubling"

http://www.startribune.com/nation/15101676.html

[UpInArms]

78. Reuters Headline: Bush sees serious signs economy is weakening

oh! that's right - the fucktard is in KC raising money for his bagman, Sam Graves - :puke:

http://www.reuters.com/article/bondsNews/idUSWAT00880320080201

KANSAS CITY, Missouri (Reuters) - U.S. President George W. Bush on Friday said there were troubling signs of economic weakening and urged Congress to move on a stimulus package to help prop up the economy, which has been hit by a housing slump and credit crisis.

Bush's comments mirrored his efforts in his State of the Union address on Monday to calm Americans' recession fears and came on the heels of a government report earlier on Friday showing U.S. employers cut payrolls for the first time in 4-1/2 years in January.

"There are certainly some troubling signs, serious signs that the economy is weakening and we've got to do something about it," Bush told employees at Hallmark Cards Inc. in Kansas City, Missouri.

"The sooner this package makes it to my desk... the better off our economy is going to be," he said, referring to a $146 billion stimulus package he hammered out with House leaders but which is now facing slower going in the Senate.

<snip>

"The fundamentals are strong," Bush said. "We're just in a rough patch, witnessed by the unemployment figures today. I'm confident we can get through this rough patch."

...more...

[citizen snips]

90. Bush Sees 'Troubling Signs' for Economy

KANSAS CITY, Mo. (AP) -- President Bush prodded Congress to pass an economic stimulus package Friday, pointing to "troubling signs" in a new report that ended a 52-month streak of national job growth.

Bush was in the nation's heartland pressuring Congress to boost the sagging economy with a plan of tax rebates for millions of people and tax breaks for companies. The White House-backed economic rescue deal in the House has hit roadblocks in the Senate.

"Inflation's low. Productivity's high, but there are certainly some troubling signs, serious signs that the economy is weakening and that we've got to do something about it," said Bush, who spoke just hours after the Labor Department reported that employers cut 17,000 jobs in January.

It was the first such reduction in more than four years and a fresh sign that the economy might be stalling. And it ended Bush's repeated claim -- made most recently in his State of the Union address -- that "America has added jobs for a record 52 straight months."

more...
http://biz.yahoo.com/ap/080201/bush.html?.v=6

[UpInArms]

80. Massachusetts charges Merrill with fraud over CDOs - report

http://www.marketwatch.com/news/story/massachusetts-charges-merrill-fraud-over/story.aspx?guid=%7B142B2588%2DF0F4%2D48D7%2D9997%2D4340EE8C7D29%7D&dist=TQP_Mod_mktwN

SAN FRANCISCO (MarketWatch) - The Massachusetts Secretary of State is bringing fraud and misrepresentation charges against Merrill Lynch & Co. (MER) related to the company's sale of debt securities, The Wall Street Journal reported on its Web site Friday. These CDOs had plunged in value to $1.2 million, according to a recent Merrill account statement for Springfield, the Journal said. Springfield officials claimed that Merrill Lynch, which was the city's financial adviser, didn't properly inform Springfield about the risky nature of the CDOs, the newspaper reported.

[UpInArms]

83. UPDATE 1-Massachusetts sues Merrill on subprime sales

http://www.reuters.com/article/bondsNews/idUSN0160895920080201

<snip>

Merrill invested about $14 million of the city's money in CDOs last year, only to see most of their value erased. CDOs underpinned by subprime mortgages soured amid rising loan defaults and falling home prices.

Separately, the city of Springfield said on Thursday Merrill agreed to pay it $13.9 million after determining the city had not approved the purchase of the CDOs.

...more at link...

[citizen snips]

84. Payrolls Drop for First Time Since 2003

WASHINGTON (AP) -- Nervous employers cut 17,000 jobs in January -- the first such reduction in more than four years and a fresh sign that the economy is in danger of stalling.

The Labor Department's report, released Friday, also showed that the unemployment rate dipped slightly to 4.9 percent, from 5 percent, as the civilian labor force shrank slightly.

Job losses were widespread. Manufacturers, construction firms and a variety of professional and business services eliminated jobs in January -- reflecting the toll of the housing and credit debacles. The government cut jobs, too. All those cuts swamped job gains in education, health care, retailing and elsewhere.

Wage growth also slowed, another indication that employers are tightening their belts amid the economic slowdown.

more...
http://biz.yahoo.com/ap/080201/economy.html

[citizen snips]

86. Exxon Mobil Posts Record Profits

HOUSTON (AP) -- Exxon Mobil Corp. posted the largest annual profit by a U.S. company -- $40.6 billion -- on Friday as the world's biggest publicly traded oil company benefited from historic crude prices at the end of the year.

Exxon also set a U.S. record for the biggest quarterly profit, posting net income of $11.7 billion for the final three months of 2007, beating its own mark of $10.71 billion in the fourth quarter of 2005.

The previous record for annual profit was $39.5 billion, which Exxon Mobil had in 2006.

The eye-popping results weren't a surprise given record prices for a barrel of oil at the end of 2007. For much of the fourth quarter, they hovered around $90 a barrel, more than 50 percent higher than a year ago.

more...
http://biz.yahoo.com/ap/080201/earns_exxon_mobil.html

[citizen snips]

87. Microsoft Offers $44.6B for Yahoo

SAN FRANCISCO (AP) -- Microsoft Corp. has pounced on slumping Internet icon Yahoo Inc. with an unsolicited takeover offer of $44.6 billion in its boldest bid yet to challenge Google Inc.'s dominance of the lucrative online search and advertising markets.

The surprise offer of $31 per share, made late Thursday and announced Friday, seizes on Yahoo's weakness while Microsoft tries to muscle up in a high-stakes battle with Google likely to define the technology landscape for years to come.

In a statement Friday, Yahoo said it will "carefully and promptly" study Microsoft's bid.

With its profits steadily sliding, Yahoo's stock slipped to a four-year low earlier this week and a new management team has been trying to steer a turnaround but sees more turbulence through 2

more...
http://biz.yahoo.com/ap/080201/microsoft_yahoo.html

[citizen snips]

88. Sector Snap: Homebuilders Drop

NEW YORK (AP) -- The housing optimists ran out of steam Friday, as homebuilder stocks gave back recent gains on more bad economic and company data.

Large builders such as Lennar Corp. and D.R. Horton Inc. shed more than 2 percent in midday trading. The sector had been on a run recently, with investors ignoring mounting evidence that the sector continues to worsen.

Lennar shares fell 47 cents, or 2.3 percent, to $20.07 and D.R. Horton lost 50 cents, or 2.9 percent, to $16.76.

On Friday, the Labor Department reported employers cut 17,000 jobs in January giving investors the clearest signal yet that the U.S. economy is slowing. Analysts fear a prolonged slowdown would delay any recovery on the housing market.

more...
http://biz.yahoo.com/ap/080201/apfn_homebuilders_sector_snap.html

[citizen snips]

89. Ford Sales Fell in January

DETROIT (AP) -- Ford Motor Co. reported Friday its U.S. light vehicle sales fell 3.9 percent in January, even when compared with a weak performance a year ago.

The Dearborn-based automaker was the first to report figures for what industry analysts expect to be the beginning of the worst sales year in more than a decade.

Ford said it sold 159,355 light vehicles for the month as it continued a strategy to wean itself from low-profit rental car and other fleet sales. That was down from January 2007 when the company sold 165,877 cars and trucks.

Ford's car sales dropped 10.3 percent, but its truck sales were nearly flat, slipping 0.7 percent.

more...
http://biz.yahoo.com/ap/080201/auto_sales.html

[citizen snips]

92. Bush Cuts Health and Community Services

WASHINGTON (AP) -- President Bush's $3 trillion budget for next year slashes mental health funding and rural health care and freezes spending on medical research, among the cuts outlined in budget documents obtained by The Associated Press.

The budget for the Department of Health and Human Services would be reduced by almost 3 percent under the Bush budget plan to be released Monday. The $2 billion in HHS cuts are about double the size of the reductions Bush sought last year; the Democrats controlling Congress rejected them.

Congress is ultimately likely to reject the cuts again, but the White House played a tough hand in last year's budget battle and the gulf between the two could mean gridlock that would tie up the agency's budget until Bush's successor takes office. The cuts would hit HHS programs funded by Congress each year.

These reductions would be in addition to almost $200 billion in cuts to Medicare and Medicaid over the next five years that administration officials acknowledge are in Bush's budget.

more...
http://biz.yahoo.com/ap/080201/bush_budget.html?.v=3

[kineneb]

95. so we can create more sick and crazy people by sending them to Iraq.

Great, just great. Support the troops, indeed.

[Ghost Dog]

110. Wall Street Journal: Budge Hits $3 Trillion as Debt Marks Bush Legacy

DU Thread: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3164928

WASHINGTON -- George W. Bush took office in 2001 with budget surpluses projected to stretch years into the future. But it's almost certain that when he returns to Texas next year, the president will leave behind a trail of deficits and debt that will sharply constrain his successor.

On Monday, the president will unveil a $3 trillion-plus budget request for his final year, which is likely to show a deficit of more than $400 billion. New details of the budget emerged yesterday, with officials saying the White House plans to keep a lid on nonsecurity discretionary spending. It wants to cut about $200 billion from the government's medical programs for seniors and the poor. (See related story.)

The longer-term picture is darker. Despite his efforts, Mr. Bush failed to work out a deal with Congress to tackle the spiraling costs of government health and retirement programs. The next president, if he or she serves two terms, could find the U.S. government so deeply in hock that it would face losing its Triple-A credit rating, something that has never happened since Moody's Investors Service began grading U.S. securities in 1917.

As a result, the ambitions of Mr. Bush's successor to cut taxes, institute universal health care or aid troubled homeowners might have to give way to the reality of soaring costs for Social Security, the Medicare program for the elderly and the Medicaid program for the poor.

"We kicked this can down the road about as long as it can be," Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat, said at a hearing this week. "It will absolutely bedevil the next administration."

/... http://online.wsj.com/public/article/SB120183030007834031-tN6HNxjUdJ6JzSLafKsxfC0wHkY_20080302.html?mod=tff_main_tff_top

[DemReadingDU]

98. Bloomberg: Hidden Swap Fees by JPMorgan, Morgan Stanley Hit School Boards

Feb. 1 (Bloomberg) -- James Barker saw no way out. In September 2003, the superintendent of the Erie City School District in Pennsylvania watched helplessly as his buildings began to crumble.

The 81-year-old Roosevelt Middle School was on the verge of being condemned. The district was running out of money to buy new textbooks. And the school board had determined that the 100,000-resident community 125 miles north of Pittsburgh couldn't afford a tax increase. Then JPMorgan Chase & Co., the second-largest bank in the U.S., made Barker an offer that seemed too good to be true.

David DiCarlo, an Erie-based JPMorgan Chase banker, told Barker and the school board on Sept. 4, 2003, that all they had to do was sign papers he said would benefit them if interest rates increased in the future, and the bank would give the district $750,000, a transcript of the board meeting shows.

``You have severe building needs; you have serious academic needs,'' Barker, 58, says. ``It's very hard to ignore the fact that the bank says it will give you cash.'' So Barker and the board members agreed to the deal.

What New York-based JPMorgan Chase didn't tell them, the transcript shows, was that the bank would get more in fees than the school district would get in cash: $1 million. The complex deal, which placed taxpayer money at risk, was linked to four variables involving interest rates. Three years later, as interest rate benchmarks went the wrong way for the school district, the Erie board paid $2.9 million to JPMorgan to get out of the deal, which officials now say they didn't understand.

more...
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ay5LDbjbjy6c

[TalkingDog]

102. Now, now.... you act like they stole candy from a baby and made it cry...

Oh.....wait.....





Man, I wish I believed in Public Flogging.


My Favorite Master Artist: Karen Parker GhostWoman Studios

[citizen snips]

101. GM Sales Up, Ford & Toyota Down

DETROIT (AP) -- Ford Motor Co., Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. all reported sales declines in January to start what industry analysts have predicted will be the worst U.S. auto sales year in more than a decade.

But General Motors Corp., led by strong crossover vehicle sales, reported an increase of 2.6 percent in January compared with the same month last year.

Toyota, which had seen strong growth last year, said Friday its January light vehicle sales dropped 2.3 percent, to 171,849 in January from a strong 175,850 in January 2006. Its performance still was strong enough to beat Ford for the No. 2 U.S. sales spot.

GM said Friday it sold 250,926 light vehicles in January, up from 244,614 during the same month last year. The world's largest automaker by sales said its car sales rose 0.2 percent, while truck sales were up 4.3 percent.

more...
http://biz.yahoo.com/ap/080201/auto_sales.html?.v=9

[citizen snips]

103. Sector Snap: Semiconductors Up

NEW YORK (AP) -- Shares of semiconductor makers rose Friday following a report showing global chip sales rose in December despite U.S. economic concerns.

Worldwide semiconductor sales rose 2.5 percent in December to $22.3 billion from $21.7 billion in the same month of 2006, according to a report from the Semiconductor Industry Association, a U.S. industry group.

For the year, sales rose 3.2 percent to $255.6 billion. Excluding memory chips, which have been under pricing pressure, global chip sales climbed 4.5 percent in 2007, the report said.

In Friday afternoon trading, shares of Intel Corp. rose 64 cents, or 3 percent, to $21.73; Advanced Micro Devices Inc. rose 35 cents, or 4.6 percent, to $7.94, and Nvidia Corp. rose $1.97, or 8 percent, to $26.56.

more...
http://biz.yahoo.com/ap/080201/semiconductors_sector_snap.html?.v=1

[politicallore]

104. Buy SIRI

Dont trust the gov

[citizen snips]

105. Bush Seeks No Increase for Schools

WASHINGTON (AP) -- In a year when many federal programs are in line for hefty budget cuts, President Bush is asking Congress to largely leave education alone, and seeking more money for a controversial reading initiative.

The White House budget proposal being sent to Congress on Monday asks lawmakers to sign off on nearly $60 billion for education programs, according to a copy of the Education Department budget obtained Friday by The Associated Press. The amount equals what is being spent this year, without an increase to keep pace with inflation.

Among Bush's proposals for the upcoming budget year: a push for Congress to restore $600 million lawmakers cut from a reading program that serves low-income children.

The program, called Reading First, recently has received favorable reviews from state officials and others. But it also has been criticized by federal investigators for conflicts of interest and mismanagement.

more...
http://biz.yahoo.com/ap/080201/bush_budget_education.html?.v=1

[citizen snips]

106. Dell Cutting 1,200 Jobs in US, Canada

AUSTIN (AP) -- Dell Inc. is cutting more than 1,200 jobs, about 900 of them at a call center in Canada, as the computer maker reduces its sales and support work force.

Dell said Thursday it would close its call center in Edmonton, Alberta -- one of two such facilities in Canada -- by the end of July. It will make smaller reductions in Oklahoma City and Ottawa, Ontario.

Rumors of the cuts had swirled in Oklahoma City and Ottawa as Dell neared the end of its fiscal year on Thursday.

The layoffs are part of a move to simplify the business and increase efficiency, Dell spokesman David Frink said Friday. He said the Round Rock-based company would provide an update of its plans when it reports the latest financial results Feb. 28.

more...
http://biz.yahoo.com/ap/080201/dell_layoffs.html?.v=1

[Roland99]

109. At the close... HAPPY FRIDAY!

Dow 12,743.19 92.83
Nasdaq 2,413.36 23.50
S&P 500 1,395.42 16.87
10 YR 3.60% -0.04
Oil $88.96 $-2.79
Gold $913.50 $-14.50

[Hugin]

112. What is the PPT Drawing with the Markets Charts Today? -Exciting Daily Quiz Answer-

Today's image is: A Pine Tree!

If you did not guess: A Pine Tree. Your answer was incorrect.

Thanks for playing.

And be sure to tune in Monday for the next installment of... What is the PPT Drawing with the Markets Charts Today?

Will it be a Teepee? a House? A Smilie Face? Well, you won't know until Monday!

(Man, I'm glad I took the day away from this. :eyes: )