STOCK MARKET WATCH, Tuesday May 20

[ozymandius]

Source: du

STOCK MARKET WATCH, Tuesday May 20, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 246
DAYS SINCE DEMOCRACY DIED (12/12/00) 2676 DAYS
WHERE'S OSAMA BIN-LADEN? 2401 DAYS
DAYS SINCE ENRON COLLAPSE = 2692
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 May 19, 2008

Dow... 13,028.16 +41.36 (+0.32%)
Nasdaq... 2,516.09 -12.76 (-0.50%)
S&P 500... 1,426.63 +1.28 (+0.09%)
Gold future... 905.80 +5.90 (+0.65%)
30-Year Bond 4.58% -0.00 (-0.09%)
10-Yr Bond... 3.84% -0.01 (-0.29%)






GOLD,EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

[ozymandius]

1. Market WrapUp: The Next Shoe to Drop

BY ROB KIRBY

In the wake of the recent unprecedented and highly questionable demise of Bear Stearns, I had the opportunity to speak with Catherine Austin Fitts regarding some of the fuzzier elements surrounding Bear’s demise.

Issues discussed included claims by options expert, John Olagues, outlining how massive buying of ‘puts’ and shorting stock led to the demise of Bear Stearns in an article titled, Bear Stearns Buy-Out... 100% Fraud:

“This article is about how Bear Stearns stock was artificially collapsed so that illegal insider traders would make billions and J.P. Morgan would be paid $55 billion of US tax payer money to shore up themselves and buy Bear Stearns at bankruptcy prices.”

By the way, the article referenced above is really great stuff – discussing details as to what happened and the timelines involved - which everyone should take the time to read. One particular issue surrounding the Bear Stearns event we discussed, which I feel must have been related more so due to “timing” than anything else, was the revelation of impropriety and the lightening quick removal from office of New York State Governor, Eliot Spitzer (announced resignation March 12, 2008). Bear Stearns collapsed the very next weekend.

.....

Running the Gauntlet

And who would argue, regardless of any personal indiscretion, that Mr. Spitzer had a penchant for prosecuting cases of blatant fraud? How do you think Spitzer might have reacted under these circumstances had he remained governor?

.....

Conclusion(s): Damage to the financial system is, in all likelihood and despite claims from the likes of Mr. Paulson or Mr. Bernanke, much, much greater than has already been reported. While banks have reported ‘write downs,’ the pension funds have barely, to date, uttered a word.

The public retirement/pension system has likely been “looted.” We just don’t know how bad – yet.

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

[Tansy_Gold]

27. Looting the public retirement/pension system

A friend who is a retired teacher brought this subject up in casual conversation just the other day. She and her husband cashed out a small 401k that had declined in value about 15% since last December and worried that if her state pension fund has similarly declined due to "bad investments," it could have a serious negative impact on her financial picture.

This is definitely an issue to keep an eye on. Thanks for posting!


Tansy Gold, having her own "investment" woes at the present time. . . .

[AnneD]

60. These sites will be useful to your friend...

http://www.pensiontsunami.com/

http://www.freeerisa.com/

[DemReadingDU]

62. pensions are endangered

My spouse received a letter that his pension is 'endangered', because the plan is less than 80% funded. A few months ago, we received a letter that if his pension were to be turned over to the Pension Benefit Guaranty Corporation, the pension amount would be reduced. I see this happening, just don't know when. :(


Edit: There is a lot of discussion in the market wrap-up about pensions
http://www.financialsense.com/Market/kirby/2008/0519.html

[burf]

32. During the discussions of the

special Sunday Night Edition of SMW the day of the BS bailout, I recall a post about how someone had contracted a large put on BS earlier in the week. According to some estimates, they were gonna make a beau coup amount of money. I have never seen anything further on the matter, but have to wonder what the outcome was.

[DemReadingDU]

59. I haven't read anything about the outcome, but here is a timeline of the Bear events

From The Automatic Earth (another blog that I read)

5/14/08 Did Bernanke lie in Congress?

Bloomberg obtained Bernanke’s March schedule under a Freedom of Information Act request. It was "sanitized", mind you, before they received it.

Yesterday, they published -some of- what they found. It provides some interesting background, in particular about a March 11 lunch meeting with all Wall Street powerboys, with the very notable exception of Bear Stearns’ representatives.

First, I’ll post a comment below on the article Bloomberg published about it today, after that the article itself, and finally, a second comment. Bit of an upside down, but I think it reads best that way.

The issue I see here, to get to the point, is what everybody, including the commenters below, apparently dare not speak by name. From what I digest, reading these three pieces, there’s only one possible conclusion: It is very likely that Ben Bernanke has lied to Congress. And if that is true, so has Tim Geithner, the president of the New York Fed.

Which leads me to an issue that we’ve had some earlier conversations about here, and that I talked about with Karl Denninger and others. When the Chairman of the Federal Reserve testifies, makes statements and answers questions in Congress, is he under oath? I don’t think he’s sworn in.

Now, it has been suggested that all testimony before Congress is subject to perjury. But if that were true and/or enforced, there’d be no need ever for people to be sworn in before testifying. And some people really are sworn in. Government officials are stuck, they swear an oath when they start on their jobs. Chairman of the Federal Reserve is not a government job.

Ergo: perhaps Bernanke is free to lie in Congress.


Here’s a timeline of the Bear events:

* Friday March 7 2008: ”..one bank (which has not been identified) refuses to make a short term loan of $2 billion to Bear.”

* Monday March 10: Bear Stearns publicly denies rumors about its alleged liquidity troubles.

* Tuesday March 11: In chronological order:

1. Bernanke announces plans to lend $200 billion of Treasuries in exchange for debt including mortgage-backed securities.

2. Big Wig lunch, Bear Stearns absent. See articles below.

3. “Hours after the meeting every bank on Wall Street reportedly began refusing to issue credit protection on the debt of Bear.”


* Thursday March 13: The day Bernanke said he first heard of Bear’s problems, according to his statement before Congress. Or, alternatively, one might give the interpretation that he testified that Bear first notified the Fed of its problems om this day.

This may be seen as two different things, but I don’t think it’s really important. If Bernanke knew about Bear’s predicament before the company contacted him about it, he should have said so in Congress. Certainly in view of the meeting he organized two days earlier. The meeting, and Bear's absence, very strongly suggests he did know.

* Friday March 14: Bernanke and Geithner set up a $13 billion emergency loan to Bear Stearns.

* Sunday March 16: Fed agrees to take on $30 billion of mortgage-backed securities and other assets from Bear Stearns, facilitating a take-over by JPMorgan and Chase.



It’s of course not even possible to exclude the biggest rumor of the day from the conversation in a meeting like this. Neither is it possible to set up such a meeting in anything less than 12 hours. There were quite a few people present, and they all have to be tracked down and many flown in.

And that means Bernanke must have known about Bear’s problems around lunch time, Tuesday March 11. At the very latest. Because the meeting had to be organized, though, Monday, March 10, looks far more believable as a “latest” time for him to have known.

You decide.

Video and three articles included to read...
http://theautomaticearth.blogspot.com/2008/05/did-bernanke-lie-in-congress.html

[AnneD]

63. I remember that...

and often wondered about that. They were really checking for insider trading....but I think lots of folks made out on that one. We could be shorting any number of financial firms and stand to make money-we know how shaky those firms are now-no matter what is espoused.

[Hugin]

86. Okay... That toon has me laughing!

:rofl:

Today's Market Madness theme...

"Those Magnificent Men In Their Flying Machines"



"Those Magnificent Men In Their Flying Machines.

They Go Up, Tiddly, Up, Up.

They Go Down, Tiddly, Down, Down.

They Enchant All The Ladies And Steal All The Scenes

With their Up, Tiddly, Up, Up

And They're Down, Diddy, Down, Down.



Up! Down! Flying Around.

Looping The Loop And Defying The Ground.

They're All, Rightfully, Kings!

Those Magnificent Men In Their Flying Machines.





They Can Fly Upside Down With Their Feet In The Air.

They Don't Think Of Danger. They Really Don't Care.

Newton Would Think He Had Made A Mistake.

To See Those Young Men And The Chances They Take.







Those Magnificent Men In Their Flying Machines.

They Go Up, Tiddly, Up, Up.

They Go Down, Tiddly, Down, Down.

They Enchant All The Ladies And Steal All The Scenes

With their Up, Tiddly, Up, Up

And Their Down, Tiddly, Down, Down.



Up! Down! Flying Around.

Looping The Loop And Defying The Ground.

They're All, Rightfully, Kings!

Those Magnificent Men In Their Flying Machines.





Those Magnificent Men In Their Flying Machines.

They Go Up, Tiddly, Up, Up.

They Go Down, Tiddly, Down, Down.

They Enchant All The Ladies And Steal All The Scenes

With their Up, Tiddly, Up, Up

And They're Down, Diddy, Down, Down.



Up! Down! Flying Around.

Looping The Loop And Defying The Ground.

They're All, Rightfully, Kings!

Those Magnificent Men, Those Magnificent Men,

Those Magnificent Men In Their…Fly…ing…

Ma-chines…."


Well... Magnificent? Not so much.

http://wiki.answers.com/Q/How_do_you_find_the_words_for_Those_Magnificent_Men_in_their_Flying_Machines

[ozymandius]

2. Today's Reports

08:30 Core PPI Apr
Briefing.com 0.2%
Consensus 0.2%
Prior 0.2%

08:30 PPI Apr
Briefing.com 0.4%
Consensus 0.4%
Prior 1.1%

http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

[UpInArms]

25. U.S. core PPI up 3% in past year, most in 17 years - U.S. PPI up 6.5% in past year

01. U.S. April crude goods PPI up 3.2%
8:30 AM ET, May 20, 2008

02. U.S. Aprilcore intermediate PPI up 1.2%,
8:30 AM ET, May 20, 2008

03. U.S. core PPI up 3% in past year, most in 17 years
8:30 AM ET, May 20, 2008

04. U.S. PPI up 6.5% in past year
8:30 AM ET, May 20, 2008

05. U.S. April PPI energy prices fall 0.2%, food prices flat
8:30 AM ET, May 20, 2008

06. U.S. April core PPI up 0.4% vs. 0.2% expected
8:30 AM ET, May 20, 2008

07. U.S. April PPI up 0.2% vs. 0.4% expected
8:30 AM ET, May 20, 2008

[burf]

31. Someone has to help me out here

Energy prices were DOWN 0.2%, but the price of gasoline was according to the Energy Information Administration was:

2008-Apr 04/07 338.1 04/14 343.8 04/21 355.7 04/28 365.3

How can that be?

[Maeve]

33. Because of seasonal adjustments

It didn't go as high as it MIGHT have, based on how much it usually jumps this time of the year.

So you only THINK you're paying way too much--economists think you should be happy you're not in even bigger trouble! :crazy:

[ozymandius]

35. Hey! Maeve!

Good to see you around these parts!

When one strips away the math and the academic data this is what you get.

[Maeve]

83. Heya, ozy!

Since I put back on my moderating hat, I haven't as much time to post but I do look in on y'all now and again :loveya:

Oh, #2 son graduated from basic training with honors and is learning to be an EMT for the Air National Guard now. And he proposed to The Girlfriend, henceforth known as The Fiancee! It will be a while, but we're all pleased as can be.

[ozymandius]

85. That's fabulous!

Congratulations to your boy, The Fiancee and to your family. I'm sure you are pleased as punch. :hug:

[burf]

65. Thanks for the replies

I guess I'll have to get that thank you card in the mail right away. Ozy, that what you get after the math and all is something that you may not want to step in! Have a good day everyone!

[ozymandius]

34. It's a statistical lie. Gary Dorsch explains.

Government Inflation Data at Odds With Reality

In an age where governments of every political stripe distort economic data to promote their own self-interests, it’s hardly surprising that they present inflation statistics that are wildly at odds with the reality faced by consumers and businesses, and regarded with utter disbelief. In the latest US government report on inflation for instance, there was a glaring “seasonal adjustment,” for energy prices that cast great doubt as to the accuracy of the findings.

.....

Wall Street cheered the tame inflation rate, reckoning it gives the Federal Reserve more time to peg the fed funds rate at 2% to jig-up the stock market with massive money injections. But the folks who aren’t fooled by the government’s propaganda on inflation are the American people, whose dollars buy less with each passing month. The inflation tax is the great thief of the middle class.

For the 12-months through April, prices for US imports were 15.4% higher. Yet Wall Street economists massaged the data and explained that wholesalers and retailers are absorbing the higher costs out of reluctance to increasing prices and driving away customers. Should we trust the inflation statistics conjured-up by government apparatchiks, or rather place greater faith in the depreciating dollars and cents that flow through the commodity markets each business-day?

.....

On May 14th, upon hearing Labor’s report of a scant 0.2% inflation rate during April, former Fed chief Paul Volcker had doubts about the way the government measures inflation. “It doesn’t feel quite right. I think the bias clearly is more towards higher inflation, offset by the weakness of the domestic economy,” he said. “Seasonal adjustments” are just one of the useful tools that Labor apparatchiks have developed to fudge inflation statistics. The Bernanke Fed has a simpler model; it simply strips out food and energy costs in its inflation calculus.

http://www.financialsense.com/Market/dorsch/2008/0515.html

edited to bold the essential information and to add: The numbers presented as inflation fact represent a lie of omission.

[Dr.Phool]

36. I'm looking at the price of natural gas right now.

Although the trend overall is going up and up, today on the 20th, it's the lowest of the month.

My father owns 2 producing (small) gas wells that produce just enough to supplement his retirement income. We were talking a couple of months ago, and he said that the price of gas is always lowest on the 20th, because that's the price the pipeline companies use to compute the royalties to the well owners.

[Nickster]

76. And the spot market price of a barrel of oil goes down around the 15th because that's when they take

the sample for the CPI calculations.

[UpInArms]

45. Chicago Fed nat'l activity index down in April - The index has been negative since August

http://www.reuters.com/article/bondsNews/idUSCHB00046620080520

CHICAGO, May 20 (Reuters) - U.S. economic activity was
weaker in April across a range of sectors, a report from the
Federal Reserve Bank of Chicago showed on Tuesday.

In addition, a three-month moving average of economic
indicators tumbled to the lowest since November 2001 and showed
the economy could be contracting for a fifth straight month.

The Chicago Fed said its National Activity Index was -1.17
in April versus a downwardly revised -0.98 in March, originally
reported at -0.78.

The index has been negative, suggesting below-trend growth,
since August. All four broad categories of indicators were
negative in April.

The index's three-month moving average, which smooths out
monthly fluctuations, fell to -1.24 in April from -1.05 in
March, originally reported at -0.86.

When the three-month value drops below -0.70 following a
period of economic expansion, there is "an increasing
likelihood that a recession has begun," the Chicago Fed said.

Production-related indicators were knocked lower by the
0.7-percent drop in industrial production in April.

The consumption and housing category continued to make a
large negative impact despite a bounce in housing starts and
building permits, as both measures remained well below their
historical averages.

...more...

[ozymandius]

47. "the economy could be contracting for a fifth straight month"

I wonder if those academic goobers mentioned in post #12 look at this data?

Edit: Or would looking at such data be, in some way, biased?

[UpInArms]

49. I have heard that the truth has a liberal bias, so it would stand to reason

that the goobers would be struck dead by going toward the light. :eyes:

[ozymandius]

3. Oil steady in Asia after record close

BANGKOK, Thailand - Oil prices held steady Tuesday in Asia after closing overnight above $127 for the first time on news that OPEC will not increase its output before its next meeting in September.

.....

Late afternoon in Singapore, light, sweet crude for June delivery was up 10 cents at $127.15 a barrel in electronic trading on the New York Mercantile Exchange.

The contract rose 76 cents on Monday to close at $127.05 after Khelil said OPEC would not increase its output during the U.S. summer driving season. OPEC's next meeting is scheduled for Sept. 9. At one point, oil touched $127.77 on Monday, just shy of the record $127.82 set last week.

Concern about supply has recently become the primary driver of the market, replacing earlier worries about a weakening dollar, and not even Saudi Arabia's promise last week of an additional 300,000 barrels of crude a day could alleviate those new concerns.

Despite that promise from the world's leading oil producer and the U.S. move to temporarily stop filling government stockpiles, prices have shown no indication of stopping their record run.

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

---

BTW - average gasoline costs are now at $1 per liter.

[ozymandius]

4. Pump prices rise to new high as oil extends gains

NEW YORK - More gas and oil records fell Monday as retail fuel prices struck new highs and crude settled above $127 for the first time, tightening the squeeze on drivers planning holiday road trips next weekend.

.....

Meanwhile, Americans are now paying an average of $3.79 for a gallon of regular gas, according to a survey by AAA and the Oil Price Information Service. Diesel, used to transport a wide range of goods, now costs $4.52 a gallon. Those prices, both records, are likely to keep rising, following crude's upward track.

"We're looking at $4 a gallon (for regular nationwide) once we get past Memorial Day and into June, given the oil prices we're seeing today," said Geoff Sundstrom, fuel price analyst at AAA.

In Pittsburgh, some drivers said they had been forced to adjust their spending habits because of higher prices at the pump, which are up about 17 percent from a peak at this time last year.

.....

Drivers in some parts of the country are already paying considerably more than the average. Prices in parts of California have been stuck above $4 a gallon for weeks now, although the statewide average is down to $3.96. Prices in Alaska and Connecticut are averaging just above $4 a gallon.

http://news.yahoo.com/s/ap/20080519/ap_on_bi_ge/oil_prices_54

[ozymandius]

5. Bush freezes nation's emergency oil supply (for six months)

WASHINGTON (CNN) -- President Bush will sign a bill halting U.S. government purchases of oil to replenish the nation's emergency supply, a White House spokesman said Monday.

Congress voted overwhelmingly last week to order the administration to stop new deliveries to the Strategic Petroleum Reserve for six months in order to try to bring the price of gasoline down. The bill passed with veto-proof majorities in both houses of Congress.

The White House does not believe the measure will affect gas prices, but the president will not stand in its way, spokesman Scott Stanzel said.

.....

The Energy Department pre-emptively decided Friday not to purchase oil for the SPR from July to December in case the bill became law, spokeswoman Megan Barnett said.

http://money.cnn.com/2008/05/19/news/economy/bush_spr/index.htm?postversion=2008051911

[ozymandius]

39. Oil price nudges higher to stand above 127 dollars

LONDON (AFP) - The price of oil edged higher Tuesday to stand above 127 dollars a barrel, as fresh supply concerns combined with OPEC's reluctance to increase output kept prices close to record levels.

New York's main oil futures contract, light sweet crude for June delivery, rose eight cents to 127.13 dollars a barrel. On Friday it had reached an all-time high of 127.82 dollars.

London's Brent crude contract for July dipped two cents to 124.65 dollars a barrel on Monday, after spiking to a record summit of 126.34 dollars last Friday.

"Oil prices were little changed Tuesday, still underpinned by persistent supply fears," said Sucden analyst Andrey Kryuchenkov.

http://news.yahoo.com/s/afp/20080520/ts_afp/commoditiesenergyoilprice_080520123001

[UpInArms]

46. Crude-oil futures hit new high of $128.19 a barrel

09. Crude-oil futures hit new high of $128.19 a barrel
9:11 AM ET, May 20, 2008

[ozymandius]

51. Oil crosses $129 for first time, heads for $130

The June contract for light, sweet crude traded as high as $129.31 in pre-opening trading on the New York Mercantile Exchange.

---

Anyone wanna amend their date for $150/bbl?

[UpInArms]

50. Oil surged to a new record of $129.31 a barrel, with bullish calls by investments banks

http://www.marketwatch.com/news/story/stocks-open-lower-oil-129/story.aspx?guid=%7BAF6BB6F0%2D436B%2D40F6%2D84C9%2DF3F82AE5E87F%7D&dist=TQP_Mod_mktwN

<snip>

Oil surged to a new record of $129.31 a barrel, with bullish calls by investments banks, weakness in the dollar and supply concerns fueling the gains. Consumer-related stocks were among the worst decliners early on Tuesday.

[ozymandius]

53. I could be arrested if my thoughts about these banks were

broadcast here.

Piracy.

Maybe I should change my sig line. But the oil and oil derivatives industry needs to be nationalized.

[InkAddict]

70. Pipeline moving forward on financing deals with ?

http://www.state.gov/r/pa/prs/ps/2008/mar/102254.htm

On March 14, the Department of State issued a Presidential Permit authorizing TransCanada Keystone Pipeline LP to construct, operate and maintain facilities related to the Keystone crude oil pipeline project. The Keystone pipeline will extend 1,300 miles from the Canadian border through the U.S. Midwest. When fully operational, the Keystone pipeline is anticipated to increase U.S. oil imports

See the route:
http://www.transcanada.com/keystone/from Canada by an amount equivalent to as much as 4.5 percent of total U.S. daily imports.

Nearby silo areas and old chemical weapon warehouses along the way? Just wondering....

[DemReadingDU]

91. Pipeline contractor target of inquiry

These pipeline articles were in our Sunday paper


5/18/08 Contractor under federal investigation about gas pipeline By Tom Beyerlein


A contractor on the 1,679-mile Rockies Express natural gas pipeline that will run through Ohio is under federal investigation amid allegations by former project inspectors that Latex Construction Co. crews failed to install required equipment designed to prevent breaches that could trigger explosions.

The owners of the Rockies Express, or REX, were negotiating with Atlanta-based Latex to work on the upcoming Ohio leg of the pipeline, but now don't plan to use the company, REX spokesman Allen Fore said. He declined to discuss the reason.

Officials of the Transportation Department's pipeline safety office confirmed allegations that Latex crews in Kansas didn't properly install concrete river weights that fit over the 42-inch pipeline at water crossings to keep it from floating. The officials said they made Latex install missing weights in a couple of areas. Officials still are investigating claims that Latex didn't wrap pipeline in a coating to protect it from rock damage.

Assertions confirmed

The federal investigation confirmed inspectors' assertions that Latex crews dug a trench and buried some river weights that were delivered to the job site, Fore said. Latex owner William Honey said the weights were extras that weren't needed.

"It doesn't affect the integrity of the pipeline," Honey said. We did the wrong thing. Are we responsible? Yes we are, and we'll take our lumps."

Pipeline safety officials said river weights and rock coatings help prevent breaks in the pipe and, in a worst-case scenario, explosions. An explosion on the REX project in Wyoming killed a worker for another contractor with a fireball that reached 3,000 degrees.

"God help the people in Kansas, because you can write this down and quote me: There will be a catastrophic failure," said Matthew Burns of Columbus, one of the former REX inspectors who complained about Latex's work on a 105-mile section.

Inspectors quit

The allegations were raised by former Latex safety coordinator Don Stewart of Green Bay, Wis., who said he resigned in September after three months because of Latex's "careless, wanton, reckless unconcern for human safety."

Stewart, Burns and another former REX inspector said they quit because Latex crews pressured them not to report shoddy work and accidents, even issuing threats and offering bribes. Stewart said REX's owners brushed him off when he reported problems with Latex last fall.

REX's Fore said the owners took the allegations seriously.

http://www.daytondailynews.com/search/content/oh/story/news/local/reds/2008/05/17/ddn051808pipeline.html

map
http://www.daytondailynews.com/search/content/oh/story/news/local/2008/05/17/41038779_pipelinemap.html

more information in this article...
Concerns about pipeline were ignored, inspectors say
Rockies Express contractors accused of disregarding safety measures.
http://www.daytondailynews.com/search/content/oh/story/news/local/2008/05/17/ddn051808pipelineinside.html

[ozymandius]

55. more on the story

VIENNA, Austria - Oil prices spiked a new trading high Tuesday, sweeping past $129 a barrel as supply concerns intensified the momentum buying that has lifted crude deeper into record territory.

The June contract for light, sweet crude traded as high as $129.31 in electronic pre-opening trading on the New York Mercantile Exchange before settling back to $128.75, up $1.70.

.....

The contract reached a new closing high of $127.05 Monday after Algerian Energy Minister Chakib Khelil, the current president of the Organization of Petroleum Exporting Countries, was quoted by a government newspaper as saying OPEC won't increase its output during the U.S. summer driving season, which begins this weekend. OPEC's next meeting is scheduled for Sept. 9.

Concern about supply has recently become the primary driver of the market, replacing earlier worries about a weakening dollar, and not even Saudi Arabia's promise last week of an additional 300,000 barrels of crude a day could alleviate those new concerns.

.....

In other news lifting prices, independent refiner Holly Corp. said a key unit at its New Mexico refinery was shut down for repairs, cutting estimated May gasoline production by as much as 756,000 gallons per day. The shutdown occurred while the fluid catalytic cracking unit was being brought back online from a previous shutdown May 7.

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

[ozymandius]

6. Slumping housing market sinks Home Depot 1Q

ATLANTA - The Home Depot Inc. reported a 66 percent drop in first-quarter profit Tuesday due to a large one-time charge and continued weakness in the housing market.

The results, excluding the charge, beat Wall Street expectations despite a decline in overall sales and sales at stores open at least a year.

The Atlanta-based company said it earned $356 million, or 21 cents a share, in the three months ending May 4, compared with a profit of $1.05 billion, or 53 cents a share, a year earlier.

Excluding a charge related to store closings and the shrinking of future store growth plans, Home Depot said it earned $697 million, or 41 cents a share.

Analysts were expecting earnings of 37 cents a share excluding one-time items.

http://news.yahoo.com/s/ap/20080520/ap_on_bi_ge/earns_home_depot

[ozymandius]

7. Microsoft proposes to buy Yahoo search: source

BOSTON (Reuters) - Microsoft Corp (MSFT.O) has proposed to buy Yahoo Inc's (YHOO.O) search business and take a minority stake in the Web pioneer, stopping short of a full-out merger, a person familiar with the discussions said on Monday.

As part of the deal Yahoo would put its Asian assets, including significant minority stakes in Yahoo Japan (4689.T) and China's Alibaba Group, up for sale, while Microsoft would buy a chunk of what remains of the company, the source said.

The talks were revealed by the two companies on Sunday, but they declined to reveal the terms of the discussions. Earlier this month, Microsoft walked away from a proposal to acquire Yahoo for $47.5 billion, or $33 per share, after Yahoo rebuffed the offer, saying it would only settle for $37 a share.

The new deal, if completed, would forge an alliance between the two companies that would represent an alternative means of competing with rival Google Inc (GOOG.O), whose ubiquitous search engine has made it an online advertising powerhouse.

http://news.yahoo.com/s/nm/20080520/bs_nm/yahoo_microsoft_dc

[ozymandius]

8. Google mulls Microsoft response

Google's chief executive Eric Schmidt and the founders Larry Page and Sergey Brin are at the company's European "Zeitgeist" meeting in Hertfordshire.

They told journalists they had only just heard of Microsoft's latest move and needed to consider their reaction.

.....

Employing Yang

Asked whether Google would ever consider employing Yahoo's Chief Executive Jerry Yang if he lost his job he said: "Jerry is very talented and if he wants to work at Google we'd be very excited to have him, but I don't think that's going to happen."

http://news.bbc.co.uk/2/hi/business/7409294.stm

[ozymandius]

11. Microsoft braces for major customer shift

SEATTLE (Reuters) - Microsoft Corp (MSFT.O) sees tens of millions of corporate e-mail accounts moving to its data centers over the next five years, shifting to a business model that may thin profit margins but generate more revenue.

In an interview ahead of the Reuters Global Technology, Media and Telecoms Summit, Chris Capossela, who manages Microsoft's Office products, said the company will see more and more companies abandon their own in-house computer systems and shift to "cloud computing," a less expensive alternative.

Cloud computing is the trend by Internet powerhouses to array huge numbers of computers in centralized data centers to deliver Web-based applications to far-flung users.

Microsoft built its business selling software to run on local machines, both computer servers and personal computers, but, in recent years, it has invested billions of dollars in massive data centers, which are the basic infrastructure for a wide range of Web services.

.....

The shift to cloud computing will introduce some changes, according to Capossela, in the earnings model at Microsoft's business division, which generated revenue of $16.4 billion and operating profit of $10.8 billion in fiscal 2007.

http://news.yahoo.com/s/nm/20080519/bs_nm/summit_microsoft_dc

[ozymandius]

9. I just read this lead:

Gas prices are high, food's more expensive and the job market's cold, but the U.S. may still avoid a recession.

Who gets paid to write this utter crap?

[ozymandius]

12. Why So Long to Call a Recession?

Editor's note: This is the first in a series of stories that will look at how the economic downturn is affecting individuals throughout the country.

Robert E. Hall doesn't make predictions, at least not about the state of the economy. Hall is the Stanford University economist who chairs the committee charged with identifying when recessions begin and end. Over lunch at a sunny cafe on the school's Mediterranean-style campus in Palo Alto, Calif., he explains it's much too early to determine whether the current slump merits the "R" word. "All the members of the committee agree we're far from a decision point," he says. Until much more evidence comes in, he prefers to call this an "experience."

.....

But the recession won't be official until Hall and his colleagues at the National Bureau of Economic Research say so. The NBER has been the recognized authority on dating downturns since 1961, when the U.S. Commerce Dept. began including the bureau's business cycle data in government publications. Today the NBER's business cycle dating committee has seven members, including Hall and Harvard economics professor and NBER President Martin Feldstein. The NBER is a nonprofit research group that operates independent of the government.

Ivory Tower Pace

Many people think the definition of a recession is two consecutive quarters of decline in the gross domestic product. But that's a misperception. Hall and his colleagues will look beyond such simple metrics, weighing monthly GDP estimates, employment data, income, industrial production, and other factors. To call a recession, they'll look for clear signs of "a significant decline in economic activity spread across the economy, lasting more than a few months."

.....

Waiting for Reliable Data

Hall has heard all of the questions before. He's 64 and has chaired the dating committee since it was formed in 1978. After lunch, as a soft breeze tousles his gray hair and the midday sun glints off his metal-frame glasses, he explains there are good reasons for his group's deliberate pace. First, the committee exists to identify periods of economic expansion and contraction for the historical record, not to comment on them while they're taking place. They're also not involved in policymaking, so whether they call a recession or not has nothing to do with the actions Washington may take to address problems in housing or gas prices.

http://news.yahoo.com/s/bw/20080519/bs_bw/may2008db20080518499756

---

Sounds more like Waiting for Godot.

[fasttense]

15. Why it's the utter crap department of most news organizations.

I understand that Fox news only hires utter crap department writers. ;-)

[AnneD]

64. You can rest assured.....

that they make more writing that utter crap than you or I combined.

[ozymandius]

10. U.S. futures signal lower open on inflation fears

PARIS (Reuters) - U.S. stock futures fell on Tuesday, pointing to a lower open on Wall Street as strong oil prices keep inflation worries high in investors' minds and put a damper on the market's recent rally.

Oil prices steadied above $127 a barrel , within sight of their record high, with a weak dollar and strong demand from China eclipsing slackening U.S. demand.

By 1013 GMT June Dow Jones , Standard & Poor's 500 and Nasdaq 100 futures were all down 0.4 percent.

.....

The market will also take some direction from producer price data for April at 1230 GMT. Economists expect wholesale inflation to have risen 0.4 percent, after a 1.1 percent jump in March, driven by surging food and fuel prices.

.....

The day's earnings calendar also includes quarterly results from Hewlett-Packard Co (HPQ.N), and Target Corp (TGT.N).

http://news.yahoo.com/s/nm/20080520/bs_nm/markets_stocks_dc

[NMDemDist2]

13. Target's numbers will tell the tale. I keep hearing the stores are empty

from all over the country.

Target's numbers will be very enlightening.

[ozymandius]

14. Personally, the Ozymandius household has put 'the ban' on Target.

Just like Wal-mart. The quality of Target's goods did not justify the price. We also do more of our shopping at local and 'no-sweat' stores that could fold in Target's shadow.

An American Apparel store opened near us. The majority of its goods are skewed to a younger age range than we need. But for items that defy age identity, it serves us well.

Otherwise, I agree on your assessment on Target. Wal-mart is lowest common denominator. Target is a step up in quality and selection. That angles at a distinctly separate socio-economic demographic.

[UpInArms]

48. Target profit falls as consumers cut back

http://www.marketwatch.com/news/story/target-profit-drops-shoppers-trim/story.aspx?guid=%7B0866F7B0%2DCA50%2D4304%2DB960%2D67BEBB9C79B0%7D&dist=TQP_Mod_mktwN

NEW YORK (MarketWatch) -- Target Corp.'s first-quarter profit dropped 7.5% as the economic downturn has left consumers with less money to spend on discretionary items, the No. 2 U.S. discount retailer said Tuesday.

Net income in the quarter ended May 3 dropped to $602 million, or 74 cents a share, from $651 million, or 75 cents, a year earlier. Total revenue, including that from its credit card, rose 5.4% to $14.8 billion.

The number of shares outstanding fell 6.2% to 809.6 million.

Analysts, on average, estimated Target (TGT: 54.92, +0.04, +0.1%) would earn 71 cents a share on revenue of $14.9 billion, according to Thomson Reuters.

Target shares were down slightly in pre-market trading.

Minneapolis-based Target has been hurt by budget-conscious shoppers seeking value and lowering their spending on apparel and other discretionary items, the bulk of its business, analysts have said. The retailer also has been hurt by consumers' perception that Target's larger rival Wal-Mart Stores Inc. (WMT: 56.40, -0.64, -1.1%) offers better prices on similar items, analysts said.

"Like other discounters, Target continues to struggle on the discretionary side, offset by stronger trends in commodities and consumables," Lazard Capital Markets analyst Todd Slater said in a research note. Discretionary items represent about 60% of Target's revenues, the analyst estimated.

...more...

[lib2DaBone]

90. Target Profit Falls

NEW YORK (MarketWatch) -- Target Corp.'s first-quarter profit dropped 7.5% as the economic downturn has left consumers with less money to spend on discretionary items, the No. 2 U.S. discount retailer said Tuesday. http://www.marketwatch.com/news/story/target-profit-drops-shoppers-trim/story.aspx?guid=%7B0866F7B0%2DCA50%2D4304%2DB960%2D67BEBB9C79B0%7D

Bush's "trickle Down" economy. Where every last penny trickles down to the oil companies.

[Ghost Dog]

18. GLOBAL MARKETS-Stocks fall on price fears, euro at 3-week high

FRANKFURT, May 20 (Reuters) - Equities fell on Tuesday, ending several days of gains, on fears of rising inflation driven mainly by high oil prices and a sentiment survey which pointed to slower growth in Germany.

"Markets are clearly focused on whether inflation pressures are mounting further," said Philipp Vorndran, investment strategist at Credit Suisse Asset Management.

The euro climbed to a three-week high against the dollar at $1.5674 <EUR=> after Wolfgang Franz, the head of Germany's ZEW think-tank, said he thought the European Central Bank (ECB) would tighten monetary policy soon.

Franz was speaking after the ZEW investor sentiment index unexpectedly fell for the second month in a row in May, weighed down by fears that high inflation and the strong euro will dampen growth.

"The May ZEW survey remains extremely weak ... confirming economic slowdown in Germany and in the whole region," JPMorgan economist Maryse Pogodzinski said in a note.

Europe's benchmark FTSEurofirst 300 index extended losses after the ZEW release to trade down 1.2 percent at 1120 GMT, snapping a four-day winning run.

The MSCI Asia ex-Japan index .MIAPJ0000PUS dropped 1.3 percent, having risen for the previous six sessions.

/Continued... http://www.reuters.com/article/marketsNews/idINL2077483920080520?rpc=44&sp=true

[ozymandius]

16. Former AOL execs charged with ad revenue fraud

SAN FRANCISCO (MarketWatch) -- Eight former executives at AOL have been charged with civil fraud related to an alleged scheme that caused the company to overstate its advertising revenue by more than $1 billion, the Securities and Exchange Commission said Monday.

The SEC said in a statement that it charged former executives at what was then called AOL Time Warner with allegedly providing money to advertisers to buy ads from AOL that they didn't want or need between 2000 and 2002.

The SEC filed a complaint in U.S. District Court for the Southern District of New York against former executives John Michael Kelly, Steven Rindner, Joseph Ripp, Mark Wovsaniker, claiming that they "engineered, oversaw, and executed fraudulent round-trip transactions in which AOL Time Warner effectively funded its own advertising revenue."

http://www.marketwatch.com/news/story/former-aol-executives-charged-ad/story.aspx?guid=%7B471BDB0B-40D5-432C-A5A0-B66500223D1A%7D&dist=msr_28

[ozymandius]

17. No end in sight to market woes say Trichet, Buffett

LONDON/FRANKFURT (Reuters) - The end to the credit crunch is still not in sight, European Central Bank President, Jean-Claude Trichet and Warren Buffett, the world's most famous stock market investor, warned on Monday.

"These are demanding times, challenging times... It is an ongoing, very significant market correction," Trichet told BBC radio in Britain.

Buffett, whose years of shrewd investing have earnt him a fortune estimated at $62 billion by Forbes magazine and the nickname "the sage of Omaha," struck a similar tone at a news conference in Frankfurt.

"I'll talk about the United States. I don't think the effects of the credit crunch are far from over at all. I think there will be rippling secondary, tertiary effects."

http://uk.reuters.com/article/bankingfinancial-SP/idUKL192628520080520

[UpInArms]

19. dollar watch

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

Last trade 72.533 Change -0.488 (-0.67%)

Australian Dollar Sets 24-Year High, Eyeing More Upside

http://www.dailyfx.com/story/topheadline/Australian_Dollar_Sets_24_Year_High__1211259102402.html

Speaking last week with regard to Australian Dollar resistance at 0.9500, we noted that “the more often a resistance tested, the likelier it is to break down.” We suggested going long on another retracement above 0.9287, marked by the 61.8% of the 02/28-03/20 decline. This support was made even stronger by the upward-sloping trend line that has held since August of last year, making a bullish reversal here likely. Price action validated our assertions as AUDUSD dipped to trigger entry and then mounted a bullish run to take out resistance at 0.95.



...more...

Will This Be A Dollar Positive Week?

http://www.dailyfx.com/story/bio1/Will_This_Be_A_Dollar_1211232045306.html

The US dollar has started the week strong thanks to the better than expected leading indicators report. For the second month in a row, leading indicators increased, suggesting that the US economy may not be in a recession. Although the numbers are definitely encouraging, we believe that recession or no recession is just a matter of semantics. The bigger question is whether or not the current downturn will be shallow. With the Fed signaling an intention to pause when they meet to discuss monetary policy in June, the market is looking for any data that would confirm that stability is the new course for the US economy. The LEI numbers are certainly encouraging even though we are slightly suspicious of whether the improvements are more than just a rebound. Building permits, stock prices and the interest rate spread were the biggest gainers, but the two former components saw a big decline the prior month. The US economy is still at risk for slower growth, but that should not draw away from the fact that the market perceives the news as dollar bullish. This strength should continue into tomorrow’s producer price report. Not only have food and oil prices increased last month, but the import price report also surprised to the upside. The dollar should remain firm in the beginning week as there is nothing to threaten its rise until Friday when we are expecting the existing home sales report. Traders still need to be cautious of what they buy because even though we believe that the dollar should strengthen against the Euro this week, it could continue to sell off against the Canadian dollar.

...more...

[UpInArms]

52. Dollar keeps sinking as U.S. inflation looks tame

http://www.marketwatch.com/news/story/currencies-dollar-weakens-further-after/story.aspx?guid=%7BEB447C4E%2D85F8%2D4F56%2DA42B%2DCD781BB94E9E%7D&dist=hplatest

NEW YORK (MarketWatch) - The dollar weakened against its major rivals Tuesday after the U.S. Labor Department said wholesale prices rose less than forecast in April, reducing pressure on the Federal Reserve to raise interest rates.

The U.S. dollar index recently traded at 72.433, down from more than 72.70 in overnight trading and 73.059 in late North American trading Monday. One euro bought $1.5646, down from $1.5649 in late London trading and $1.5507 in late North American trading Monday.

The Labor Dept. said its producer price index slowed to 0.2% in April after seasonable adjustments, with food prices flat and energy prices falling. Economists had expected a 0.4% rise. See full story.

The greenback bought 103.65 yen, down from 103.94 yen in London trading and 104.29 yen in late North American trading Monday.

...more...

[ozymandius]

54. It's easy to sort out the liars on this one.

They all work for the Labor Department's statistics desk.

[UpInArms]

20. Survey: Passengers call airline service 'dismal'

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

CHICAGO - Passengers are more dissatisfied with airlines' customer service than they have been in years at a time when carriers are charging more and more for tickets and services.

An annual survey being released Tuesday by the University of Michigan found customers giving airlines the worst grades since 2001, with the industry's overall scores dropping for the third straight year.

United Airlines and US Airways Group Inc., which are in talks to potentially combine into a single carrier, finished next-to-last and last, respectively, in the university's American Customer Satisfaction Index.

Continental Airlines Inc. and US Airways Group Inc. registered the biggest declines from 2007, both experiencing double-digit percentage drops.

A familiar bright spot in the results was Southwest Airlines Co., which led the industry in passenger satisfaction for the 15th consecutive year.

While unhappiness with airlines is nothing new, this year's survey produced "really dismal numbers," said Claes Fornell, a University of Michigan business professor and director of the research center that compiled the data.

"There's no other industry anywhere that has so many basic mishaps in terms of not delivering the basics," he said. "They're supposed to deliver passengers with their luggage to a particular destination within a certain timeframe, and they frequently fail to do that."

Asked why scores have worsened so significantly, he said airlines' management has to be blamed despite some factors beyond their control such as higher jet-fuel costs and congested airports.

...more and I despise one sentence paragraphs...

[InkAddict]

71. Put me down on the "Choose to No-Fly" List.

Too scary - staff w/discharging weapons; maintance foul-ups, improper handling of foodstuffs; corporate encouragement of customer hassling...sick passengers from parts unknown...

[UpInArms]

21. Wachovia, Fifth Third had losses in Citi hedge fund

http://www.reuters.com/article/businessNews/idUSN1919694120080520?feedType=RSS&feedName=businessNews

NEW YORK (Reuters) - Wachovia Corp (WB.N: Quote, Profile, Research) said on Monday it has had significant losses from a Citigroup (C.N: Quote, Profile, Research) hedge fund, joining Fifth Third Bancorp (FITB.O: Quote, Profile, Research), which disclosed its loss in an April lawsuit.

Wachovia spokeswoman Christy Phillips-Brown said a $315 million write-down the bank disclosed earlier in May was related to investments in Citigroup's Falcon Strategies hedge Fund. Wachovia, the fourth-largest U.S. bank, made the investments through its bank-owned life insurance portfolio.

Fifth Third said in a lawsuit filed on April 17 that it had invested $612 million in Falcon. The bank is looking to recover $323 million in damages from the two AEGON NV (AEGN.AS: Quote, Profile, Research) subsidiaries that had been managing its bank-owned life insurance portfolio.

Citigroup, Aegon and Fifth Third could not be immediately reached for comment.

An unidentified third bank also took a large loss in Falcon, the Wall Street Journal reported on Monday, citing sources familiar with the matter.

...more...

[UpInArms]

22. Trial set to start in Parmalat case vs. Citigroup

http://news.yahoo.com/s/nm/20080520/bs_nm/citigroup_parmalat_dc

NEW YORK (Reuters) - More than four years after the meltdown of Italy's Parmalat SpA (PLT.MI), the food company is set to begin presenting its case to a U.S. jury on Thursday accusing Citigroup Inc (C.N) of playing a key role in its collapse.

Citigroup is the first defendant to go to trial in the United States over accusations of helping conceal corrupt activity by former Parmalat insiders. Parmalat, which collapsed in December 2003 and emerged from bankruptcy in 2005, is seeking $2.2 billion in damages from the biggest U.S. bank.

Citigroup is seeking $699 million of damages on its own claims, saying it was a victim of Parmalat's fraud.

Opening statements in the civil trial, being held in Bergen County Superior Court in Hackensack, New Jersey, about 15 miles from Manhattan, are scheduled for Thursday morning, according to a court official. A jury has already been selected.

The trial is expected to take at least two months and involve testimony by about 30 witnesses.

Parmalat is involved in dozens of legal cases in Italy and the United States. Its chief executive, turnaround specialist Enrico Bondi, has accused some 50 defendants of helping prior Parmalat management hide debt and inflate results.

Parmalat originally sought $10 billion from Citigroup, contending the bank turned a blind eye to the activities of former company officials while it earned lucrative financial services fees. Last month, however, the judge overseeing the case narrowed the scope of Parmalat's claims.

...more...

[UpInArms]

23. Today's Charmer: Ranieri's Franklin Bank faces SEC probe, CEO out

http://www.reuters.com/article/bondsNews/idUSBNG20697020080520?sp=true

May 20 (Reuters) - Franklin Bank Corp (FBTX.O: Quote, Profile, Research), a Texas bank overseen by mortgage bond pioneer Lewis Ranieri, said it faces a U.S. Securities and Exchange Commission probe related to its lending practices, and that it has replaced its chief executive.

<snip>

He replaces Anthony Nocella, whom the bank said "will accelerate his personal plans to retire" by year end. Nocella, the chief executive since July 2002, will remain a director and chairman of the company's banking unit, the bank said.

The SEC inquiry comes on the heels of a 10-week internal investigation that the bank said uncovered a variety of accounting errors, largely related to residential mortgage loans.

<snip>

Shares of Franklin closed Monday at $1.01 on the Nasdaq. They have lost more than 90 percent of their value in the last year, after trading as high as $21.88 in October 2006.

Once a Wall Street mail clerk, Ranieri is often credited popularizing mortgage-backed securities in the 1980s while at Salomon. Franklin's 2007 proxy statement said Ranieri "is generally considered to be the 'father' of the securitized mortgage market."

Ranieri was also a key figure in Michael Lewis' 1989 best-seller "Liar's Poker." Since leaving Salomon, he has started several ventures, including Ranieri & Co, a private investment firm.

...more...

[UpInArms]

24. Government's 'numbers racket' is about to blow up in our faces

http://www.marketwatch.com/news/story/governments-numbers-racket-about-blow/story.aspx?guid=%7BF91A0843%2D69B4%2D4C0C%2D92CE%2DB835D9907945%7D&dist=MostReadHome

ARROYO GRANDE, Calif. (MarketWatch) -- Remember that big ah-ha moment in the 1939 classic "The Wizard of Oz?" Dorothy wants to see the Wizard. His voice booms: "Do not arouse the wrath of the Great and Powerful Oz! Come back tomorrow!" Afraid, Lion, Tin Man, Scarecrow shake. Dorothy's dog runs up, tugs on a curtain. She chases Toto, pulls curtain open:

"Who are you?" Dr. Marvel stutters: "Well, I - I - I am the Great and Powerful, Wizard of Oz." Dorothy: "You are? I don't believe you!" He replies: "No, it's true. There's no other Wizard except me." Dorothy's miffed: "Oh, you're a very bad man!" Wizard: "Oh, no, my dear. I'm a very good man. I'm just a very bad Wizard."

2009 Sequel: Script exposes diabolical cover-up conspiracy

Flash forward: Real life, Washington, new leaders, a new Congress, old wizardry. Be forewarned: No matter who's elected president, America will soon see a massive statistical curtain pulled back, exposing a con game of historic proportions. And when that happens, you and I will suffer another ear-splitting global meltdown, bigger than today's housing-credit crisis, dragging us deep into a recession and bear market for years.

Cast: New 'leading man' from old Nixon political machine

Yes, the lead character pulling back the curtain is none other than Kevin Phillips, a former Republican strategist for Nixon, and today America's leading political historian. Phillips just published "Bad Blood: Reckless Finance, Failed Politics & the Crisis of American Capitalism," everything you need to know about today's credit meltdown.

Scene 1: Numbers racket hiding behind Washington curtain

Opening shot: Phillips pulling back the curtain, exposing charlatan Wizards in a brilliant Harper's Magazine article: "Numbers Racket: Why the economy is worse than we know." Far worse. Buy it, read it -- this is essential reading if you really want to understand the depth of today's political as well as economic impending meltdown, and the harsh realities facing Washington, Wall Street, Corporate America, and Main Street in 2009 and beyond ... harsh because we cannot cover up the truth much longer.

Scene 2: Statistics, Washington's new WMDs, a time bomb

"If Washington's harping on weapons of mass destruction was essential to buoy public support for the invasion of Iraq, the use of deceptive statistics has played its own vital role in convincing many Americans that the U.S. economy is stronger, fairer, more productive, more dominant, and richer with opportunity than it really is. The corruption has tainted the very measures that most shape public perception of the economy," especially three key numbers, CPI, GDP and monthly unemployment statistics.

...more...

[Tansy_Gold]

30. Freudian typo??

I checked the original article, and it's there; Farrell @ marketwatch made the mistake, not you, UIA.

Phillips just published "Bad Blood: Reckless Finance, Failed Politics & the Crisis of American Capitalism," everything you need to know about today's credit meltdown.

The title of Phillips' book is Bad Money.

money = blood? Hey, it may come to that before it's over. . . .



Tansy Gold, sometimes :scared: without the :sarcasm:

[54anickel]

58. OK, I'm ordering that one.....

http://www.bad-money.com/



Socialism, we are told, is the naiveté of youth, and a fallacious economics the United States has luckily spurned. The late Seymour Lipset, an well-known academician, penned a book in 2001 entitled It Didn't Happen Here: Why Socialism Failed in the United States.

Alas, nobody ever told the leaders of American finance. Whereas the old style of socialism elected no more than a handful of mayors and congressmen, Washington has now embraced a new variety that could not be more different in its class consciousness and privileged sponsorship.





If America Declines, Don't Expect Anyone to Talk About It
April 8, 2008 - 9:28 am


Rarely in U.S. history has a president, especially a two-term president, been so unpopular at a time when the Congress, captured in the midterm elections by the opposition, is held in no greater regard. In such a case, the norm is for the two to fight, with one side gaining the edge. But that has not been true of George W. Bush and the Democratic Congress elected by running against him in 2006.

The two sides have gone after each other in a fashion, but more often they have simply talked past each other to their separate party constituencies, repeating familiar commitments to keep the true believers on each side somewhat more contented than the unimpressed independents -- those who bulk so large in the 60 to 70 percent of voters convinced that the country is on the wrong track. Most office holders on both sides seem to rest easier if everyone stays away from uncomfortable themes, even ones in the headlines, like costly U.S. overreach in the Middle East; the reckless expansion of private debt, as well as the federal budget deficit variety; the new economic (and political) dominance of the financial sector; and the mounting probability that the nation will have to choose between desirable energy supplies and global warming measures. After all, what you can sidestep today might go away tomorrow.


more...



ETA...I had to add this review from Amazon - this person's review just cinched the deal for me!!!

http://www.amazon.com/review/product/0670019070/ref=cm_cr_dp_synop?%5Fencoding=UTF8&sortBy=bySubmissionDateDescending#R2FPFC29HCXR0F

The thesis statement for Bad Money: In modern America wealth can be increased without creating or manufacturing anything, but just by "moving paper (e.g., debt instruments) around" .

According to Kevin Phillips' bio page on Wikipedia he has reliably cranked out a book every 2-3 years or so since 1969. And while there are exceptions for the most part they have been either the-sky-is-falling screeds about the American economy, faux populist rants about social class and ad hominem attacks against people he doesn't like.

And says Phillips, the American elite's belief in "market triumphalism" leads to a blind arrogance and that this all shows what becomes of an economic superpower that leaves its destiny to the vicissitudes of the marketplace . And leading this charge of the lemmings is an entrenched but dissipated class of elites who clog up Washington, D.C. lobbying after their own interests . Phillips also hates religion, conservatism, unearned wealth, the wealthy in general and the Bush family (or Dynasty) in particular .

The only thing that really gives Phillips any credibility at all is his extensive research and documentation complete with original graphs and charts that purport to prove his points. So far so good. However another look at Mr. Phillips' bio page shows that he went to a fancy East Coast prep school, Colgate University and Harvard Law so who is he to point fingers about entrenched elites in American politics and commerce? Takes one to know one I guess.

Phillips' reformist critique would be very persuasive indeed (or at least more plausible) if he could refrain from expressing his views in such a caustic manner and refrain from the ad hominem attacks and paranoid conspiracy theories which don't seem very believable no matter Phillips' excellent research complete with graphs, charts, footnotes and appendices.

[UpInArms]

26. Curiouser and curiouser - what's "dark pool access"?

http://www.marketwatch.com/quotes/gs

22 minutes ago Goldman, Morgan Stanley and UBS to give dark pool access - MarketWatch

[Tandalayo_Scheisskopf]

40. Here:

The moves come as dark pools -- the secretive electronic trading networks that match buyers and sellers anonymously -- are booming in popularity as big institutional investors look for ways to trade blocks of stock without triggering ripples in the share price, as can happen on traditional stock markets such as the NYSE and Nasdaq Stock Market.

http://online.wsj.com/article/SB121128624096606883.html?mod=googlenews_wsj

This does NOT sound kosher or ethical. That said, what on Wall Street does, these days?

[ozymandius]

42. It gives new meaning to the concept "publicly traded company".

To me, the hidden meaning is money laundering.

[Dr.Phool]

57. In other words,

They're working behind the scenes to put the whole fiasco on the little guy, and maybe pension funds.

It really is time to break out the torches and pitch forks.

[Tandalayo_Scheisskopf]

88. Essentially, yes.

You can also bet that these networks are being used to skirt taxes as well.

[54anickel]

61. Nuttin to worry bout! The invisible hand will magically clear up any problems

http://www.sec.gov/news/speech/2008/spch020108ers.htm

big snip>

Despite the positive results thus far, current trends toward the use of dark liquidity do raise regulatory concerns that bear watching. I will briefly mention a few of these relating to transparency, fragmentation, fair access, and best execution.

First, with respect to transparency, the Commission long has emphasized the importance of displayed liquidity in promoting efficient equity markets. Displayed liquidity provides the price discovery that is the starting point for all types of trading, both on and off the quoting markets. Since the initiation of decimal trading in 2001, however, there have been a lot of reasons for market participants not to display their trading interest. One problem in particular is the ease with which other market participants can step ahead of displayed trading interest by an economically small amount. Over the years, the Commission repeatedly has acted to encourage the display of trading interest. Most recently, of course, it adopted Regulation NMS in 2005 to establish market-wide protection of displayed quotes against trade-throughs at inferior prices.

A common misunderstanding of the Commission's approach to price transparency is that it requires the display of liquidity and thereby drives trading off the public markets. This is not true. Attempting to force market participants to display their trading interest when they do not wish to do so would be both fruitless and counter-productive. Instead, Reg NMS gives market participants a choice of whether and how much trading interest they want to display. Its protection against trade-throughs is designed merely to provide an additional positive incentive for display.

snip>

Another important issue to monitor with respect to dark pools is fragmentation. The currently large number of separately organized dark pools poses challenges for market participants. These include the basic logistical task and cost of establishing connectivity to many different venues. In addition, multiple dark pools pose fragmentation problems more serious than multiple quoting venues precisely because of their darkness. The only way to know whether a dark pool has liquidity is to route an order to the pool. Routing this type of pinging order is a less efficient means to assess liquidity than viewing a consolidated montage of displayed quotes from all quoting venues.

Competitive forces, however, seem particularly apt to address the problem of fragmented dark pools. The ultimate users of dark pools — investors and traders — seem likely to pressure operators of the pools, particularly the less successful ones, either to consolidate with other pools or to cooperate with dark pool aggregators. These aggregators offer services that enable investors to check liquidity more efficiently at multiple dark pools. A key cost of fragmentation for traders is the opportunity cost of being out of the market on one venue when your search for a contraside on other venues. With latency dropping rapidly, such fragmentation costs are falling as well.

more...

[AnneD]

66. Dark pools of access.....

sounds like a lot of muck and a whole lot of non potable water (not fit for human life or consumption). It needs filtering (regulation) and sunlight to be worthwhile.

[InkAddict]

72. Dark pools of access...

Mayans: http://www.civilization.ca/civil/maya/mmc03eng.html

Incan: http://news.nationalgeographic.com/news/2007/10/071003-inca-sacrifice.html

[UpInArms]

28. A look back at Wall Street's go-go days of 2007

http://www.marketwatch.com/news/story/look-back-wall-streets-go-go/story.aspx?guid=%7B351E8ABC%2DC972%2D4FC2%2DBCA6%2D5955CB2B5D25%7D&dist=TQP_Mod_mktwN

NEW YORK (MarketWatch) -- Believe it or not, there was a time -- another era, really --when negative "exposure" on Wall Street was something that occasionally happened when a banker drank too much at the closing party for another multibillion-dollar merger.

That would be about 12 months ago.

It seems like a long-gone age. The issues facing Wall Street last spring would be petty annoyances today. Just a year ago, mergers and acquisitions were at an all-time record, brokerage profits had rocketed into uncharted territory, the Dow Jones Industrial Average was floating in the rarefied air above the 13,500 level and was soon to move above 14,000. The Nasdaq Composite Index (COMP: 2,516.09, -12.76, -0.5%) was creeping above 2,600.

So much was going right, it seemed we had to make up our problems. Little did we know that soon our creations would be wiped away with chief executives and fallen banks.

For instance, Wall Street was snickering at the stern sick-leave policy put in place by Merrill Lynch & Co. (MER: 47.71, -1.14, -2.3%) . Merrill's nine-days-and-you're-out policy was hailed as "draconian" by its employees. Now that Merrill is seeking to cut up to 7,000 nonbrokerage jobs in the coming months -- on top of thousands of layoffs during the past 10 months -- employees can't be feeling much better, but you can bet they're showing up to work. Read archived column.

Oil was at $65 a barrel. A month later, when the price nearly hit $79, economists openly wondered if the economy could sustain runaway prices. Analysts explained the rise by talking about political tension overseas, greater demand and a lack of refinery capacity. Almost no one mentioned the influx of speculators, mostly from hedge funds, who have since made $80-a-barrel oil seem like a bargain. See full story.

...more...

[UpInArms]

29. Global corporate defaults still rising-S&P report

http://www.reuters.com/article/bondsNews/idUSL2011384320080520?sp=true

LONDON, May 16 (Reuters) - Global defaults are continuing to rise as the global credit squeeze tightens access to debt and capital for companies that struggle to pay their debts, according to a report published on Friday.

The global 12-month corporate speculative-grade bond default rate rose to an annual high of 1.29 percent in April, from 1.14 percent in March, credit rating agency Standard & Poor's said.

This year through May 13, 28 defaults were recorded, affecting $18.9 billion worth of debt. All the defaults were from the United States, except one from Canada, S&P said.

In Europe, where economies have shown more resilience, the 12-month speculative-grade default rate rose to 0.5 percent in April, from 0.49 percent in March.

Tropicana Entertainment LLC, a leisure and media company, has been the biggest default this year, with $2.9 billion of debt affected, the report shows.

The global figure is already above last year's total 22 defaults -- and more than double the amount of debt affected -- and below the 30 defaults in 2006, the credit agency said.

...more...

[ozymandius]

37. futures and blather

08:55 am : S&P futures vs fair value: -9.0. Nasdaq futures vs fair value: -8.2. Futures have a delayed reaction to the PPI data, eventually falling to fresh session lows. Crude continues its record run, gaining 0.3% to $127.45 per barrel.

08:30 am : S&P futures vs fair value: -4.3. Nasdaq futures vs fair value: -4.0. Futures have a muted reaction as mixed inflation data hits the wires. April PPI rose 0.2%, compared to the expected increase of 0.4%. Core-PPI, which excludes food and energy costs, rose 0.4% versus the consensus estimate that called for growth of 0.2% In earnings news, Target reported earnings of $0.74 per share, topping expectations by three cents.

[ozymandius]

38. Stocks head to lower open after inflation data

NEW YORK (AP) -- Wall Street tilted toward a lower open on Tuesday after a government report showed inflation at the wholesale level rose more than forecast after stripping out food and fuel prices.

The Labor Department reported that wholesale inflation edged up by 0.2 percent in April following a 1.1 percent jump in March. Outside of food and energy, prices rose by a faster 0.4 percent -- double what analysts had expected.

.....

Investors will also get a better idea about consumer spending with a number of earnings reports from some of the nation's biggest retailers. Home Depot Inc. reported that first-quarter profit fell 66 percent because of the continued housing slump. Staples Inc. said profit rose 1.5 percent during the quarter, and reaffirmed its outlook.

In addition, chain-store sales fell 0.4 percent during the week of May 17, down from 1 percent the previous week, according to the International Council of Shopping Centers and UBS Securities.

.....

Banking stocks are set to open lower after Oppenheimer & Co. analyst Meredith Whitney said she expects the credit crisis to extend into 2009, and "perhaps beyond." She said firms like JPMorgan Chase & Co. and Citigroup Inc. have set aside $25 billion to cover losses, but might have to set aside about $170 billion by the end of next year.

http://biz.yahoo.com/ap/080520/wall_street.html

[ozymandius]

41. Markets are open for bidness. Caution: floor is slippery.

9:31
Dow 12,953.17 Down 74.99 (0.58%)
Nasdaq 2,503.91 Down 12.18 (0.48%)
S&P 500 1,420.19 Down 6.44 (0.45%)
10-Yr Bond 3.8030% Down 0.0360
NYSE Volume 59,035,210
Nasdaq Volume 40,401,730

[ozymandius]

43. 9:36 (runaway train)

Dow 12,917.59 Down 110.57 (0.85%)
Nasdaq 2,497.07 Down 19.02 (0.76%)
S&P 500 1,418.03 Down 8.60 (0.60%)
10-Yr Bond 3.8050% Down 0.0340
NYSE Volume 138,497,720
Nasdaq Volume 88,786,550

[ozymandius]

44. updating futures and blather (about oil)

09:16 am : S&P futures vs fair value: -8.7. Nasdaq futures vs fair value: -10.5. Crude oil has spiked to an all-time high of $128.40 per barrel. Earlier this morning, oilman Boone Pickens said on CNBC he expects oil will reach $150 per barrel this year.

[ozymandius]

56. Bleeding all around at 10:05

Dow 12,885.51 Down 142.65 (1.09%)
Nasdaq 2,493.16 Down 22.93 (0.91%)
S&P 500 1,415.98 Down 10.65 (0.75%)
10-Yr Bond 3.799% Down 0.04
NYSE Volume 473,982,062.5
Nasdaq Volume 301,011,468.75

10:00 am : The major indices are in negative territory, with Dow underperforming, largely due to weakness in Home Improvement retailer Home Depot (HD 27.96, -0.91). Home Depot reported earnings that topped analyst expectations, but traders are still driving the stock 3.1% lower.

As a result, the S&P 500 Retailer Index (-1.4%) is under some selling pressure, despite better than expected earnings at Target (TGT 55.23, +0.31).

Seven of the ten economic sectors are posting a loss in early trade, with notable declines in materials (-1.3%), tech (-1.1%) and financials (-1.2%). The defensive utilities sector (-0.4%) is outperforming.DJ30 -119.83 NASDAQ -19.72 SP500 -9.46 NASDAQ Dec/Adv/Vol 1488/870/223 mln NYSE Dec/Adv/Vol 1902/824/125 mln

09:40 am : The major indices open on a low note as a mixed inflation reading weighs on sentiment.

The April Producer Price Index rose 0.2%, while core-PPI, which excludes food and energy costs rose 0.4%. Economists expected the opposite, forecasting a 0.4% rise in PPI and a 0.2% rise in core-PPI. The difference in total PPI and core-PPI is largely due to a 0.2% drop in energy costs on a seasonally adjusted basis. On a nonadjusted basis, energy prices are up 2.9%.

Meanwhile, crude oil has rallied to a fresh all-time high of $129.31 per barrel as the dollar falls 0.75%.DJ30 -106.58 NASDAQ -19.56 SP500 -8.52 NASDAQ Dec/Adv/Vol 1445/708/70 mln NYSE Dec/Adv/Vol 1626/585/45 mln

[UpInArms]

67. 11:36 EST appearing arterial in nature

Dow 12,836.09 192.07 (1.47%)
Nasdaq 2,485.90 30.19 (1.20%)
S&P 500 1,413.14 13.49 (0.95%)
10-Yr Bond 3.799% 0.04

NYSE Volume 1,283,665,750
Nasdaq Volume 765,580,687.5

11:30 am : The major indices continue to face selling pressure, with both the Dow and Nasdaq down more than 1%. Meanwhile, the S&P 500 is posting a smaller loss of 0.8%, which follows its four day winning streak.

Standard & Poor's has lowered its credit ratings on 24 of AIG's (AIG 38.11, -0.84) guaranteed investment contract-backed issues to AA- from AA. AIG's ratings were also placed on CreditWatch with negative implications. AIG's stock has already been on the trading radar this session due to earlier reports that the insurance giant is going to raise a total of $20 billion, which is up from its previous plan to raise $12.5 billion.DJ30 -176.84 NASDAQ -27.57 SP500 -11.50 NASDAQ Dec/Adv/Vol 1663/1015/734 mln NYSE Dec/Adv/Vol 1984/984/390 mln

11:00 am : The major indices are languishing near their session lows as investor sentiment remains bearish. Seven of the ten economic sectors are posting a loss, with four of them down more than 1%. Meanwhile, commodities are up 0.7% as crude spikes 1.7% and gold gains 0.9%. The dollar is under some selling pressure, falling 0.7% against a basket of world currencies.

European markets are seeing even more selling pressure, with London's FTSE down 2.4% and Germany's DAX down 1.6%. Mining stocks are showing weakness, with Rio Tinto (RTP 523.37, -23.23) down 4.3%.DJ30 -160.81 NASDAQ -23.12 SP500 -9.32 NASDAQ Dec/Adv/Vol 1637/969/581 mln NYSE Dec/Adv/Vol 1989/940/309 mln

[ozymandius]

68. Blood and eyeballs on the floor.

11:38
Dow 12,839.18 Down 188.98 (1.45%)
Nasdaq 2,487.20 Down 28.89 (1.15%)
S&P 500 1,413.87 Down 12.76 (0.89%)
10-Yr Bond 3.797% Down 0.042
NYSE Volume 1,296,191,000
Nasdaq Volume 775,681,187.5

11:30 am : The major indices continue to face selling pressure, with both the Dow and Nasdaq down more than 1%. Meanwhile, the S&P 500 is posting a smaller loss of 0.8%, which follows its four day winning streak.

Standard & Poor's has lowered its credit ratings on 24 of AIG's (AIG 38.11, -0.84) guaranteed investment contract-backed issues to AA- from AA. AIG's ratings were also placed on CreditWatch with negative implications. AIG's stock has already been on the trading radar this session due to earlier reports that the insurance giant is going to raise a total of $20 billion, which is up from its previous plan to raise $12.5 billion.DJ30 -176.84 NASDAQ -27.57 SP500 -11.50 NASDAQ Dec/Adv/Vol 1663/1015/734 mln NYSE Dec/Adv/Vol 1984/984/390 mln

[TrogL]

69. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



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




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

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

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

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

2008-04-08 Tuesday, April 8 0.985125 USD
2008-04-09 Wednesday, April 9 0.981162 USD
2008-04-10 Thursday, April 10 0.982511 USD
2008-04-11 Friday, April 11 0.978857 USD
2008-04-14 Monday, April 14 0.97972 USD
2008-04-15 Tuesday, April 15 0.982222 USD
2008-04-16 Wednesday, April 16 0.997904 USD
2008-04-17 Thursday, April 17 0.989413 USD
2008-04-18 Friday, April 18 0.99167 USD
2008-04-21 Monday, April 21 0.993443 USD
2008-04-22 Tuesday, April 22 0.996711 USD
2008-04-23 Wednesday, April 23 0.980969 USD
2008-04-24 Thursday, April 24 0.987069 USD
2008-04-25 Friday, April 25 0.983961 USD
2008-04-28 Monday, April 28 0.984446 USD
2008-04-29 Tuesday, April 29 0.987362 USD
2008-04-30 Wednesday, April 30 0.990884 USD
2008-05-01 Thursday, May 1 0.981643 USD
2008-05-02 Friday, May 2 0.982125 USD
2008-05-05 Monday, May 5 0.987654 USD
2008-05-06 Tuesday, May 6 0.996413 USD
2008-05-07 Wednesday, May 7 0.998004 USD
2008-05-08 Thursday, May 8 0.985319 USD
2008-05-09 Friday, May 9 0.993838 USD
2008-05-12 Monday, May 12 0.996314 USD
2008-05-13 Tuesday, May 13 1.0004 USD
2008-05-14 Wednesday, May 14 0.998203 USD
2008-05-15 Thursday, May 15 1.0004 USD
2008-05-16 Friday, May 16 1.00341 USD
2008-05-19 Monday, May 19 1.00867 USD


Current values

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

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     1.0098 1.0098 1.0086 1.0093 +0.0008 +0.08% 
CD.M08 Jun 2008 1.0100 1.0108 1.0050 1.0050 -0.0029 -0.29% 
CD.U08 Sep 2008 1.0081 1.0081 1.0065 1.0075 +0.0089 +0.88% 
CD.Z08 Dec 2008 0.9780 0.9780 0.9780 1.0077 +0.0089 +0.88% 
CD.H09 Mar 2009 0.9757 0.9757        1.0081 +0.0089 +0.88% 
CD.M09 Jun 2009 0.9995 0.9995        1.0084 +0.0089 +0.88% 
CD.U09 Sep 2009 0.9780 0.9780 0.9780 1.0087 +0.0089 +0.88% 

 

Other combinations: (http://quotes.ino.com/exchanges/?c=currencies)

Market          Open    High    Low     Last    Change   Pct 
AUSTRALIAN $/CANADIAN $ (CME:ACD)
ACD.M08 Jun 2008 0.9429 0.9429 0.9429 0.9429 -0.0082 -0.87%  
EURO/BRITISH POUND (NYBOT:GB)
GB.M08.E Jun 2008 (E) 0.7948 0.7971 0.7948 0.7977 +0.0001 +0.01%   
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.M08.E Jun 2008 (E) 161.480 161.480 161.480 161.480 +0.185 +0.11%    
EURO/US$ (SMALL) (NYBOT:EO)
EO.M08.E Jun 2008 (E) 1.56230 1.56540 1.56040 1.56540 +0.01555 +1.00%   

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

The June Canadian Dollar was slightly higher overnight as it extends Monday's breakout above the upper boundary of this spring's trading range. Stochastics and the RSI are becoming overbought but remain bullish signaling that sideways to higher prices are possible near-term. If June extends this week's trading range breakout, March's high crossing at 102.38 is the next upside target. Closes below the 20-day moving average crossing at 99.16 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 101.23. Second resistance is March's high crossing at 102.38. First support is the 10-day moving average crossing at 99.70. Second support is the 20-day moving average crossing at 99.19.


Analysis

Yes, I'm still alive. My job has changed, my workload has quintupled (for the same money, but at least I'm not bored) but I had a few minutes so I thought I'd do a loonie watch.

Frankly, the loonie's been nothing to brag about, primarily because it's still wobbling around par with the greenback. 500 ducks landed on an oilsands tailing pond and died and suddenly people are paying attention to the environmental damage caused by the oilsands project.

http://maps.google.ca/maps?f=q&hl=en&q=Fort+McMurray,+Alberta,+Alberta,+Canada&ie=UTF8&cd=1&geocode=0,56.727180,-111.380300&ll=57.149651,-111.478271&spn=0.49464,1.241455&t=h&z=10&iwloc=addr

If the loonie sucks, or the economy is slowing, you wouldn't know it around here. Every store still has a help wanted sign on it, the construction site down the street has a huge sign begging for construction people, my house is STILL under renos becuase I can't get the guy's attention long enough, the clerks at Home Depot are so stressed out they're ready to kill the customers and the streets are torn up with infrastructure upgrades (yes, we do that here).

Anybody got a line on 200 cases of roofing nails? Apparently we're out.

[ozymandius]

73. Lunchtime check-in. Tourniquet is a no-show.

12:37
Dow 12,854.90 Down 173.26 (1.33%)
Nasdaq 2,494.54 Down 21.55 (0.86%)
S&P 500 1,416.45 Down 10.18 (0.71%)
10-Yr Bond 3.816% Down 0.023
NYSE Volume 1,675,309,750
Nasdaq Volume 997,288,312.5

[ozymandius]

74. updating with blather

12:30 ET
Modest Recovery Effort
Dow -176.19 at 12851.97, Nasdaq -23.26 at 2492.83, S&P -10.74 at 1415.89

The major indices are attempting to recover, with relative strength seen in energy (+0.7%), materials (-0.1%), and tech (-1.4%). However, losses are still substantial, with the S&P down about 0.7%.

Small-cap and mid-cap names are outperforming on a relative basis this session, with the Russell 2000 Index down 0.3% and the S&P 400 down 0.2%. The S&P 400 is getting a boost from oil and gas company Southwestern Energy (SWN 47.84, +1.97), while the Russell is getting a boost from oil company Whitling Petroleum (WLL 94.90, +5.83)

12:00 ET
Dow Down 200 Pts at Midday
Dow -200.70 at 12827.70, Nasdaq -32.24 at 2483.85, S&P -13.62 at 1413.07

Market sentiment has been negative throughout the session on Tuesday. A mixed inflation reading, negative items out of the financial sector and a negative response to a major retailer's earnings report are the underlying factors behind the selling interest. At midday, the stock market is trading at its session low, with a substantial loss of nearly 1%.

The financial sector (-2.1%) -- the most heavily weighted within the S&P 500 -- has been a laggard throughout the session. Several items are contributing to weakness within the sector. Oppenheimer noted it believes the credit crisis will extend well into 2009. Meanwhile, AIG (AIG 38.14, -0.81) said it plans to raise a total of $20 billion in capital, according to reports. Finally, Lehman Brothers cut its earnings estimates on Goldman Sachs (GS 128.15, -2.25) and Morgan Stanley (MS 44.76, -1.44).

The S&P 500 Retailing Index is posting a steep 2.1% decline, which is weighing on the consumer discretionary sector (-1.6%). Home Depot (HD 27.29, -1.58) is acting as the largest drag with a decline of 5.5% -- the largest one-day loss in more than five years. Traders are disappointed with the home improvement retailer's 66% drop in net income -- although the results were good enough to top analysts' low expectations. Meanwhile, AutoZone (AZO 128.32, +0.52) and Target (TGT 54.53, -0.39) reported earnings that beat estimates, while Staples (SPLS 23.66, +0.09) met expectations.

Only three sectors are in positive territory at midday. Energy (+0.4%) is showing relative strength after crude rallied to an all-time high of $129.58 per barrel. Healthcare (+0.1%) is also outperforming, thanks to better-than-expected earnings at medical equipment company Medtronic (MDT 49.27, +1.39).

In economic news, the April Producer Price Index rose 0.2%, while core-PPI, which excludes food and energy costs, rose 0.4%. Economists expected the opposite, forecasting a 0.4% rise in PPI and a 0.2% rise in core-PPI. The difference in total PPI and core-PPI is largely due to a 0.2% drop in energy costs on a seasonally adjusted basis. On a nonadjusted basis, energy prices are up 2.9%. The report had a negative impact on stock prices.

[AnneD]

75. Morning Marketeers....

:donut: and lurkers. My daughter and I have had some really good talks lately. One of the things I have tried to teach her is the value of some things. For example, an education. While Social Work is both good and nobel(worth more than they are paid)-what sense does it make to spend 80K on and education that is only valued at $35-40K in many work places. And then I pulled out a recent ad for Nursing Instructors at a Community College.

Now we have a Nursing Shortage in this country, many colleges and universities are closing their Schools of Nursing (4year degrees)where important research takes place (ie Nursing care and it's effect on mortality). These schools are so few and far between and you can have hundreds of students viewing for one slot. Now community colleges help fill this gap. A concentrated 2 year degree (which is actually 3 years by the time you get the prerequisites out of the way) is the best many of us can do.

Anyway, back to the ad....they wanted someone that was Master's prepared in Nursing. And for all of this knowledge, they were offering the princely sum of......





$29,000 YES, THAT IS NOT A TYPO......$29k

I didn't know wither to shred the paper laughing hysterically or cry and:banghead:

Would you pay a Doctor 29K to teach new Docs....I doubt it. But, you say, I want a Doc that knows what he's doing. That may be true-but when you consider that the Doc spends a short amount of time with you, but the Nurse is there 24/7 and is suppose to catch not only the Dr.'s mistakes, but the Pharmacies too....don't you think you want your Nurse to be as well trained as you Doc? Somehow, I don't think $29 thou will get it. I work 9 months as a School Nurse in a large urban area and with 18 years of experience make 53K a year, which is reasonable for what I do. I would be making up wards of 70-80K if I worked in the medical center as a floor Nurse with my experience. And yet, they expect to get a Master's prepared instructor for 29K. Sweet Jesus on a pogo stick. Our values are so screwed up....but then you knew that anyway.


Happy hunting and watch out for the bears.

[ozymandius]

78. That's an ad for theft.

Only suckers need apply because that salary demands that someone give away their skill too.

[AnneD]

82. I would be ashamed and embarassed to offer that......

but from the copy, you'd have thought it was top dollar. And they wonder why there is such a shortage of instructors and why Nurses' are hanging up their shoes-I'd rather tens a vegtable garden than put up with that....and I'd make more money in the process.

[ozymandius]

77. Dow minus 200+

12:59
Dow 12,826.81 Down 201.35 (1.55%)
Nasdaq 2,490.10 Down 25.99 (1.03%)
S&P 500 1,413.89 Down 12.74 (0.89%)
10-Yr Bond 3.824% Down 0.015
NYSE Volume 1,807,121,500
Nasdaq Volume 1,072,040,625

[ozymandius]

79. blather

1:00 pm : Buying interest fades as the major indices retreat toward their session lows. There has been a bearish bias throughout the session.

Within the S&P 500, 73% of stocks are trending lower. AT&T (T 39.50, -1.01) and Microsoft (MSFT 28.76, -0.70) are the worst-performing names. ConocoPhllips (COP 93.84, +1.14) and Occidental Petroleum (OXY 97.11, +1.65) are the best-performing components.DJ30 -201.11 NASDAQ -25.99 SP500 -12.74 NASDAQ Dec/Adv/Vol 1715/1066/1.07 bln NYSE Dec/Adv/Vol 2034/983/566 mln

[AnneD]

80. World Bank predicts surge in poverty as food costs rise

SINGAPORE — A top World Bank official warned today that global poverty levels could surge over the next three years due to rising food costs and predicted no letdown in the price of rice.

Already, rising food and fuel prices over the past two years have pushed some 100 million people back into poverty, living below $2 a day, said World Bank Managing Director Juan Jose Daboub.

Food costs are on average more than 2 1/2 times higher now compared to early 2002, with no signs of relief in sight — especially for rice, Asia's staple food, which recently broke above a record $1,000 per metric ton, he said.

Soaring food prices hit the poor especially hard because they spend a large percentage of their income to feed themselves.

Daboub blamed the spike in rice price on a combination of factors including growing demand, rising fuel prices, cuts in agriculture funding, increasing use of food crops for biofuels, distorting subsidies and trade barriers, financial speculation and bad weather.

more...


http://www.chron.com/disp/story.mpl/business/5791375.html

[AnneD]

81. Tricky signals mean shift to digital TV will be rocky

The government-ordered switch to digital television broadcasting next year promises razor-sharp picture and orchestra-like sound — that is, if the signal actually comes in.

Jennifer Jackson, a 26-year-old medical student who lives in Arlington, Va., is discovering that despite her efforts, it might not. She has a digital converter box, the receiver of choice for those who rely on an antenna and do not have a digital television. But she is finding that the new digital signals are more capricious than old-fashioned analog.

The picture's clarity is impressive, she said, until an airplane flies by on its way to nearby Reagan National Airport — a frequent event in her 20th-floor apartment. Airplane traffic used to cause seconds-long bouts of fuzziness in the analog picture. But digital signals are more sensitive to disruption, so the sound mutes and the screen freezes, sometimes dissolving into a cascade of pixels. Similar glitches happen when her roommate walks through certain parts of the living room.

"The picture's great when I get good reception," said Jackson, who had wrapped her "rabbit-ear" antenna in aluminum foil to boost analog reception, "but it can be annoying when you're trying to pay attention to a show and the picture keeps falling apart."

more.....

http://www.chron.com/disp/story.mpl/business/5791259.html

I experienced that while visiting Mom....I was underwhelmed. I think I'll stick with my dvd and computer.

[ozymandius]

84. -200+ seems to be the going rate today for blue chips.

Dow 12,819.97 Down 208.19 (1.60%)
Nasdaq 2,490.86 Down 25.23 (1.00%)
S&P 500 1,413.47 Down 13.16 (0.92%)
10-Yr Bond 3.809% Down 0.03
NYSE Volume 2,134,669,000
Nasdaq Volume 1,245,770,500

1:30 pm : The stock market remains well into negative territory after some unsuccessful attempts to reclaim session losses. Only energy (+1.0%) and the defensive-oriented utilities sector (+0.5%) are trading with noticeable gains.

The Dow Jones Utility Average (+0.6%) is the only one of the major Dow Jones indices trading with a gain. The Dow Jones Industrials Average is showing a loss near 1.4%, while the Dow Jones Transportation Average is down 0.6% and the Dow Jones Wilshire is down 0.7%.DJ30 -187.67 NASDAQ -22.84 SP500 -11.15 NASDAQ Dec/Adv/Vol 1686/1095/1.17 bln NYSE Dec/Adv/Vol 1980/1066/624 mln

[ozymandius]

87. Equities markets still stuck deeply in the red.

2:41

Dow 12,820.95 Down 207.21 (1.59%)
Nasdaq 2,487.51 Down 28.58 (1.14%)
S&P 500 1,412.19 Down 14.44 (1.01%)
10-Yr Bond 3.788% Down 0.051
NYSE Volume 2,466,486,750
Nasdaq Volume 1,451,803,625

2:30 pm : The major indices continue to drift lower in broad-based weakness. Eight of the ten sectors are posting a loss, with five of them down more than 1%. The Dow is down more than 1.8%, its largest loss since its 2.0% decline on April 11 when the market was stunned by General Electric's (GE 31.82, -0.58) lower than expected earnings.

The Volatility Index is up 7.6% this session. Its current level indicates that traders expect a 5.3% up or down movement in the S&P 500 during the next 30 days.DJ30 -237.58 NASDAQ -34.83 SP500 -17.17 NASDAQ Dec/Adv/Vol 1967/865/1.41 bln NYSE Dec/Adv/Vol 2216/870/755 mln

2:00 pm : A fresh wave of selling pressure sends the major indices to session lows. Energy has taken a notable dip, retreating from a 1.1% gain to its current advance of 0.4%. Meanwhile, financials (-2.3%), consumer staples (-0.8%), healthcare (-0.2%) and telecom (-2.6%) are all trading at their respective session lows.DJ30 -231.23 NASDAQ -29.93 SP500 -15.37 NASDAQ Dec/Adv/Vol 1797/1016/1.29 bln NYSE Dec/Adv/Vol 2109/953/689 mln

[TalkingDog]

89. Howdy All

Not much to report here other than little neighborhoods, scattered through our little town, with 2 or 3 houses for sale on a street. All with some version of :Reduced in Price on the yard sign.

And we're in the one spot in the country that isn't feeling the crunch too badly. We are north of Charlotte and a bedroom community for all the Lowes HQ and NASCAR folks (which is many more people that you would imagine).

I've been trying to corral the garden to maximize the production over the next few years. Whereas before it was survival of the fit in terms of weeding, watering and nutrition. It was enough to enjoy for the summer and can/freeze a bit for winter use. Now, I can comprehend the real meaning of the term "busted my butt". Digging dirt, moving it, hauling mulch and compost, tends to work the glutes. If this keeps up, I'll be able to stick a ten-penny nail between my cheeks and squeeze it into a crazy straw shape.

The Spousal Unit reported back a tidbit from a County Govt. meeting that suggested the number of gardens in Mecklenburg Co. (Charlotte) had increased by about 3-fold this year.

I guess mine won't be the only busted butt in the area.

Because I make herbal tinctures I have been pondering the price of grain/alcohol and am thinking it might be time to pull out the old pressure canner and copper tubing. The genetic memory is there from both sides of my family, though I've never put it into practice. I've got some engineering to do on the canner to make it a workable project. Luckily I know a couple. The rest is a simple as making wine; a little organic matter, smidge of yeast..... mash.

Now, this is merely pondering. Putting it into practice is legally actionable, hence my hesitation.

As soon as my schedule allows, I look forward to a LEISURELY read of the SMW. There is too much good stuff to simply breeze through. As I've had to do lately.

Take care.

TD

[ozymandius]

92. Hi TD.

From one with such unique genetic memory to another - there's always beer. At least that is legal by reasonable standards of consumption since 1978.

We are gardening too. The melons plants are beginning to vine and the tomato plants are doing really well in their upside-down pose. The rosemary, basil and mint are coming along really well too.

My son is only six years old. So I don't think the tangible results of gardening are appreciated yet.

[TalkingDog]

94. Beer Good. But unfortunately not for tincturing.

Now granted, beer is a very good medicinal extraction of hops (tonic, nervine, diuretic, sedative, etc.) barley (nutritive and demulcent drink in febrile conditions and in catarrhal affections of the respiratory and urinary organs i.e soothing for inflammed and painful...parts) and so on.

But those effects can get in the way of other, desired, effects from other plants. So some version of alcohol 70 to 100 proof is necessary to extract both water based and fat based compounds for the desired synergy of chemicals.

Rot gut vodka 100 proof is fine. But I won't be able to afford a huge price increase.

Hence the pondering.

Yes, indeed, Beer Good.

I think I'll go home and have one.

My mother took me to the garden all through my childhood. At 6, you are correct, it's fun then quickly boring. But as time went on, I got the bug. My sister never did.

[ozymandius]

93. Here's the capper on today's bleeding festival.

Dow 12,828.68 Down 199.48 (1.53%)
Nasdaq 2,492.26 Down 23.83 (0.95%)
S&P 500 1,413.40 Down 13.23 (0.93%)
10-Yr Bond 3.776% Down 0.063
NYSE Volume 3,783,753,250
Nasdaq Volume 1,991,016,750

16:15 ET
Financials Weigh on Market
Dow -199.48 at 12828.68, Nasdaq -23.83 at 2492.26, S&P -13.23 at 1413.40

On Tuesday, the stock market posted a substantial loss, with market participants concerned that the stock market's rally from its March lows may have been overdone. The S&P 500 settled the day with a 0.9% loss, with seven of the ten economic sectors in negative territory.

Prompting traders to take some money off the table was bearish news on financial stocks, a major retailer's earnings report, and a higher-than-expected core inflation reading. Crude prices set another record high, which did not help matters either.

The financial sector -- which comprises 16.5% of the S&P 500 -- acted as the biggest drag with a 2.2% loss. Oppenheimer analyst Meredith Whitney believes the credit crisis will extend well into 2009, and may go on even longer. Whitney's calls typically move the market, as she has correctly predicted several aspects of the credit crisis, including the Citigroup (C 22.11, -0.88) dividend cut. Meanwhile, Goldman Sachs (GS 182.43, -1.97) and Morgan Stanley (MS 44.80, -1.40) had their second quarter earnings estimates cut at Lehman Brothers. AIG (AIG 38.12, -0.83) was also under selling pressure after the company said it will raise a total of $20 billion, up from its previous plan to raise $12.5 billion, according to reports.

The S&P 500 Retailing Index had a 2.0% decline, which weighed on the consumer discretionary sector (-1.6%). Home Depot (HD 27.37, -1.50) was the worst performing name with a decline of 5.2%. Traders were disappointed with the home improvement retailer's 66% drop in net income -- although the results were good enough to top Wall Street's low expectations. Meanwhile, AutoZone (AZO 126.99, -0.81) and Target (TGT 54.29, -0.69) reported earnings that beat estimates, while Staples (SPLS 23.61, +0.04) met expectations.

A mixed inflation reading also weighed on the broader market. The April Producer Price Index rose 0.2%, while core-PPI, which excludes food and energy costs, rose 0.4%. Economists expected the opposite, forecasting a 0.4% rise in PPI and a 0.2% rise in core-PPI. The difference in total PPI and core-PPI is largely due to a 0.2% drop in energy costs on a seasonally adjusted basis. On a nonadjusted basis, energy prices are up 2.9%.

There were some pockets of strength. The energy sector (+0.8%) climbed to a lifetime high, as crude oil shattered another intraday high, hitting $129.60 per barrel, before settling with a gain of 1.6% at $129.07 per barrel.

A 0.87% drop in the Dollar Index helped lift crude, and the Commodity Index (+1.0%) as a whole.

Despite the retreat on Monday, the stock market is still up 12.4% from its March 17 low.
..Nasdaq 100 -0.8%. ..S&P Midcap 400 -0.2%. ..Russell 2000 -0.4%.